MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ------------ TRẦN THANH SƠN CUSTOMER’S ONLINE PURCHASING INTENTION: AN EXPLORATORY STUDY ON AFFECTING FACTORS IN VIETNAM THESIS OF MASTER OF BUSINESS ADMINISTRATION HO CHI MINH CITY – 2013 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ------------ TRẦN THANH SƠN CUSTOMER’S ONLINE PURCHASING INTENTION: AN EXPLORATORY STUDY ON AFFECTING FACTORS IN VIETNAM Subject : Master of Business Administration Code : 60.02 THESIS OF MASTER OF BUSINESS ADMINISTRATION ADVISOR: DR. TRẦN HÀ MINH QUÂN HO CHI MINH CITY – 2013 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com i ACKNOWLEDGEMENT For the successful completion of this thesis, I would like to show my sincere thanks to all those who have supported me during the time I conducted the study. First of all, I would like to express my deepest gratitude to my advisor, Dr. Tran Ha Minh Quan, for his generous and patient guidance to my thesis.
His inspiring advices are essential and valuable for me to finish this thesis. The advisor is very knowledgeable, and nice to me all the time. I feel very lucky appreciate him to give a chance to be his student. Secondly, I would like to extend my sincere thanks to respectful lecturers of University of Economics Ho Chi Minh city, who have empowered me with considerably useful knowledge during the time I studied in University.
Thirdly, I would like to send special thanks to my friends, students of the eMBA course of University of Economics Ho Chi Minh city for kindly helping me collect useful information for the study. Specially, Tran Cong Tan, he always encourages me when I have trouble duration of carrying out thesis. Fourly, I would like to send special thanks to Dang Huu Phuc for his strong support in the completion of the thesis. Lastly, I would like the send the most special thanks to my family, who always help me with so much love, care and encouragement.
Although I have tried my best to complete my thesis, but errors could not be avoided. Therefore, I am looking forward to receiving the comments from respectful lectures and friends, so that my thesis could be more improved. Trần Thanh Sơn Ho Chi Minh, December, 2013 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ii COMMITMENT I hereby would like to commit that the thesis, “Customers’ online purchasing intention: an exploratory study on affecting factors in Vietnam”, was accomplished based on my independent and serious studies and researches. The data was collected in reality and it has clear origins.
In addition to that, the data would be trust-worthily handled and it has never been released in any menu. Trần Thanh Sơn LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com iii ABSTRACT Vietnam has witnessed rapid development of Internet, in terms of infrastructure, users and internet-based services. As for Vietnamese people, Internet gradually becomes a very important channel for shopping, introducing products and services, characterized by the surging numbers of online transactions. It inspired the need to study the issues related to the intention of customers for online purchasing.
The purpose of the thesis is to study the main factors influencing the intention of customers when they carry out the online shopping. The study is based on the data which is collected through google document. Usefulness, Ease of Use and Security are three important factors influencing Vietnamese customer attitude as they purchase online. Attitude, Normative Beliefs and Usefulness were identified as three important factors influencing Vietnamese customer’s online purchasing intention.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com iv Table of Content ACKNOWLEDGEMENT. iii LIST OF FIGURES. vii LIST OF TABLES. INTRODUCTION TO THE STUDY.
Research questions and research objectives. Significances of the research:. Theory of Reasoned Action (TRA). Theory of Planned Behavior (TPB).
Technology Acceptance Model (TAM). Salient Beliefs of Usefulness and Ease of Use. Salient Beliefs of Compatibility, Privacy and Security. Salient Beliefs Normative-Beliefs and Self-Efficacy .23 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Methods of data analysis. Reliability assessment of measurement scales (Cronbach alpha). Explore Factor Analysis (EFA). Multi Linear Regression (MLR).
RESULTS AND DISCUSION. Descriptions of sample. Reliability and validity of the measurement scale. Exploratory Factor Analysis.
EFA implementation for independent variable. EFA implementation for dependent variable. The Modified Theoretical Framework and Hypotheses Restatement. The Modified Theoretical Framework.
Research Hypothesis Testing. The first multiple regression analysis. The second multiple regression analysis. Results of testing the hypotheses.
CONCLUSION AND RECOMMENDATION .46 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Discussion of Study Finding. Limitations and future research .48 LIST OF REFERENCE .80 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com vii LIST OF FIGURES Figure 2. Theory of Reasoned Action from Davis, Bagozzi et Warshaw (1989).
Theory of planned behavior. Technology acceptance model (adopted from Davis, Bagozzi & Warshaw 1989). Modified theoretical framework. The updated research model .44 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com viii LIST OF TABLES Table 3-1.
Measurement scales of research. Statistical summary of socio – demographic variables. Cronbach alpha coefficients .EFA implementation for independent variables .Cronbach Alpha coefficient of 5 group. EFA implementation for dependent variables.
Seven new factor in the research model. Model Summary of first multiple linear regression. ANOVA of first multiple linear regression. Coefficient of independent variables in first multiple linear regression.
Model Summary of first multiple linear regression. ANOVA of first multiple linear regression. Coefficient of independent variables in first multiple linear regression42 Table 4-13. Summary of restatement hypotheses testing result .43 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
INTRODUCTION TO THE STUDY 1. Research background During these last few years, information and communication technology substantially increased the possibilities of playing, communicating and making transactions, etc. Today Internet is not only a networking media, but also as transaction medium for consumers at global market in the world, and becomes dominant retailers in the future (Yulihasri et al. The coming into being of Internet has been changing the traditional ways of purchasing goods of human beings.
The users have no longer been restricted by time and geographical factors. They could actively buy the products and goods regardless of any time and location factors. Internet has brought about news methods of communication and new ways of exchanging everyday information between people. The ever increasing number of Internet users would also coincide with the development of online purchasing (Joines, Schere & Scheufele, 2003).
Electronic commerce, normally known as E-commerce, involves of the buying and selling of product or services over electronic systems such as the Internet and other computer networks. A wide variety of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange, inventory management systems, and automated data collection systems. Modern E-commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can circle a wider range of technologies such as e-mail as well. E-commerce that is conducted between businesses is referred to as business-to-business or B2B.
B2B can be open to all interested parties (e. commodity exchange) or limited to specific, pre- qualified participants (private electronic market). E-commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to- consumer or B2C. This is the type of E-commerce conducted by companies such as Amazon.
The most necessary element of e-retail offers a direct interactive channel as well as no time definition, people and place. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2 Online shopping is the process whereby consumers directly buy goods or services from a seller in real-time, without an intermediary service, over the Internet. Online shopping is a type of E-commerce used for business-to-business (B2B) and business-to-consumer (B2C) transactions. Shopping on Internet becomes an alternative for consumers since it is more comfortable than conventional shopping which usually attributed with anxious, crowded, traffic jam, limited time, parking space and etc… ( Yulihasri et al.
Using Internet for purchasing goods has become a key component of business strategies. In principle, the internet can be used to facilitate purchase transactions among all kinds of actors: among consumers, among businesses, between businesses and consumers. But by far the biggest and most successful area of application has been in the business-to-business domain. In the business-to-consumer area, business development has been more concentrated on certain niche areas (Butler & Peppard 1998).
Many of the sites run with a deficit or have even had to close down. Especially in connection with the sale of food and other products for daily use on the internet, there have been few breakthrough successes. According to the U. Department of Commerce (2004, 2006a, 2006b, 2007) total retail e-commerce sales in 2007 were $136 billion, an increase of 25.6% from the previous year and an amazing 207% increase compared to 2002.
E-commerce sales as a percentage of total retail sales also continued to increase and, for 2007, were at 3.3% of total retail sales. Despite the continued growth in e-commerce and the potential for future growth in E-commerce, companies have reported problems in attracting new customers and retaining existing ones (Devaraj, Fan & Kohli 2002) and face challenges in converting online visitors to real purchasers (Chen 2003). Purchasing intention is a psychological process of decision-making (Engel et al. Consumers are motivated by the fulfillment of demands to search relevant information according to personal experience and the external environment.
They begin to evaluate and consider after accumulating a certain amount of information. Finally, they make the decision on certain products after comparison and judgment. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 3 This is known as the “purchasing decision process” of consumers. Purchasing intention is the probability of customer’s willingness to purchase (Dodds et al.
And the higher perceived value, the more purchasing intention. Because of the rapid growth of the Internet and its use as a channel for shopping, today’s consumers are able to shop from anywhere at any time with just a few clicks of their fingers. In Viet Nam, E-commerce and the IT industry are given our fair share of attention and support. Recent initiatives taken by the Vietnam government toward boosting this sector include the formation of the E-commerce Board, the introduction of a new Internet management decree, entering into the E-ASEAN Framework Agreement, and the lowering of Internet access charges.
According to Vietnam NetCitizens report (Cimigo 2011), the number of Internet users in Vietnam accounted for 31% of the total population in 2010. The percentage is similar to some other countries like China, the Philippines and Thailand. Over the past few years, in comparison with other countries in the region, we have witnessed rapid development of Internet in Vietnam and Vietnam becomes a country whose Internet development ranked top of the world. Over 50% of urban population had their Internet connections in the urban areas (including 12 cities mentioned in Cimigo (2011)).
According to information publicized in the Vietnam E-commerce report 2011 by Ministry of Industry and Commerce, 100% of surveyed enterprises were equipped with computers, 98% were connected with Internet with different ways, in which 89% had their broadband technology connections (ADSL). Over 81% of enterprises used e-mails in their business and manufacturing activities, the number was 96% for big enterprises and 80% for small and medium enterprises. According to the survey, the percentage of enterprises accepted the bookings via e-mails accounted for 52% and the number was 15% for website-based bookings, the percentage of enterprises made the bookings via e-mails accounted for 53% and the number was 21% for website-based bookings.