VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY DINH TIEN DUNG FACTORS AFFECTING CUSTOMERS’ USAGE INTENTION OF ONLINE FOOD ORDERING SERVICES IN VIETNAM MASTER’S THESIS BUSINESS ADMINISTRATION Hanoi, 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY DINH TIEN DUNG FACTORS AFFECTING CUSTOMERS’ USAGE INTENTION OF ONLINE FOOD ORDERING SERVICES IN VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 60340102 RESEARCH SUPERVISORS: DR. TRAN BICH HANH PROF. MOTONARI TANABU Hanoi, 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT First and foremost, I would like to express my sincere gratitude towards my thesis advisors Dr. Tran Bich Hanh of the Department of Business Administration at Vietnam Japan University and Prof.
Motonari Tanabu of the Department of Business Administration at Yokohama National University. Every journey start with a single step, without your guidance and support, I would not imagine that I could go that far on academic research. Without their assistance and dedicated involvement throughout the process, this paper would have never been accomplished. Secondly, I want to express my deep gratitude to my family, my company’s colleagues and my fellow classmates for holding me with countless supports and encouragements during my master study.
Two years of studying and working at the same time was not easy for me, but all obstacles and constrains have been left behind thanks to their understandings and supports. Finally, I also would like to send to all the professors and faculty members in Vietnam Japan University, Yokohama National University and all supporting organizations for the past two years and especially the wonderful four-month internship in Japan. This accomplishment would not have been possible without them. Author Dinh Tien Dung LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS CHAPTER 1: INTRODUCTION.
5 CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT. Review of conceptual framework and literature background. Review of relevant theoretical models. Hypotheses development and conceptual model.
14 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Research conceptual model. Variables and Measuring Instruments. 24 CHAPTER 4: ANALYSIS RESULTS.
Scale Measurement of Constructs. 31 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 5: DISCUSSION AND CONCLUSION. Limitations and future research directions. 51 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Page Table 2.
Models and Constructs Summary 9 Table 2. Definition of research constructs 11 Table 4. Frequency of demographic information of participants 25 Table 4. Respondents’ Frequency of Using Online Food Ordering Services 27 Table 4.
Respondents’ post-experience of online food ordering services 27 Table 4. Coding of variables 28 Table 4. Cronbach’s Alpha coefficient value of all variables 29 Table 4. KMO and Bartlett’s Test results 30 Table 4.
Rotated Component Matrix 30 Table 4. Pearson Correlation Coefficient Matrix 32 Table 4. Model Summary 33 Table 4. Linear Regression Results and Extractions 34 Table 4.
Structural relationships and hypotheses testing 35 Table 4. Moderator Testing Results 36 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Page Figure 2. The UTAUT2 Model 7 Figure 2. Conceptual Model 19 Figure 4.
Statistical Moderating Model 36 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBREVIATIONS Df: Degree of freedom DOI: Diffusion of Innovation EE: Effort Expectancy EFA: Exploratory Factor Analysis FC: Facilitating Condition HB: Habit HM: Hedonic Motivation IFI: Incremental fit index PE: Performance Expectancy PV: Price Value SCT: Social Cognitive Theory SI: Social Influence TAM: Technology Acceptance Model TPB: Theory of Planned Behavior TRA: Theory of Reasoned Action UTAUT: Unified Theory of Acceptance and Use of Technology UTAUT2: Extended Unified Theory of Acceptance and Use of Technology LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: INTRODUCTION 1. Research Background The market for online products and services has been increasing rapidly as most daily activities nowadays involve the use of internet and mobile applications. In Internet of Things era, this is not only potential but also essential for organization to work on online mode as it is gradually changing the traditional business model. With more users worldwide, organizations will be able to engage and interact with consumers through online marketplace as promoting their products and services via website and mobile applications.
It has embarked many scholars studying on topic of online products and services for the past decade. Notably, online shopping emerged as one of the most popular topic thanks to its practical implications on marketing and business strategy. According to Internet World Stats (2018), Vietnam has an Internet penetration rate roughly 65.7% which shows that Vietnamese people are actively involved in online activities. Notably, Singh & Matsui, 2017 found that the increasing in Internet penetration rate positively attribute to the growth of online shopping because Internet users perceived many benefits through online shopping.
Even though Vietnam is relatively behind in Internet universalization in comparison with more developing countries in South East Asia like Malaysia (77.5%), Vietnam is emerging as very promising market for e-commerce and online services development. In today fast-paced lifestyle, many people pursuing productive and time saving orientation by reducing the time for personal need activities. Instead of waiting for a meal in restaurant or going out to buy food and drink, a part of our citizen intends to enjoy online services’ advantages. Online food ordering services are gradually showing their efficiency by matching with marketplace need.
In general, food industry is arguably a 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com saturated market and customers tend to notoriously fickle, witnessed by frequently change in taste, fashion, and ease of access. Technology supports this process and with the development of wireless communication technology and high penetration rate of the Internet, food service businesses are now relying on technology as a marketing tool and main information resources (E. Lee, Lee, & Jeon, 2017). Taking to that chance, online food ordering services has been emerging as a vital mechanism for food retailers to keep remaining fresh and mobilized toward customer demand.
Development of online food ordering services means not only virtually flexible choice of taste that the consumers benefit but also cost saving, real time interactive communication and entertaining (Yeo, Goh, & Rezaei, 2017). There are two main categories of retailer that offered online food ordering services. First is the typical fast food restaurants that provides delivery to homes such as Pizza Hut, McDonalds, Kentucky Fried Chicken. For instance, as a pioneer in fast food chain, Kentucky Fried Chicken (KFC) early entered Vietnam market in 1997 and started online delivery services in Vietnam in 2014 and positively enhanced their customer choice and satisfaction.
Gradually, smaller food retailers also quickly response for online services competition. Thanks to the development of food delivery services, they will be able to provide customer the same online food hub experience at low operation cost. This demand created second category which is comprised of multiple restaurant mediums which connecting the customer and a large range of restaurants by providing online delivery services and flexible online ordering mechanism. Today, the local market witnessed fierce competition in this category between many international players such as Grab Food, Go-Food and local services providers like Foody Nows or Vietnammm.
However, market researcher Euromonitor (2018) also gave a report that online food ordering in Vietnam will be projected to top US$33 million by 2020 and expected to show annual growth rate of 23. 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com For an emerging industry like online food ordering services, it is way more essential to understand customer insight and behavior intention. It is well known that online food ordering services has become nature in many countries as well as the benefit it offered to users were highly convincing as convenience and flexibility which highly valued in today lifestyle. On the other hand, food chains and service provider of online delivery services promptly seize this opportunity to increase revenue and expand their business.
However, the problems of online food ordering services in Vietnam that exists was the adoption of online food ordering services remains very low despite the growth in appearance of online food service providers. Thus, assessment of the key factors in usage intention to the adoption online food ordering services is critical. In short, reasons motivating consumers to use a specific service from an online medium are always important for service providers. Because there are new opportunities and rapid increase of internet users, it is essential to identify the factors affecting consumer’s usage intention to online food ordering services.
Since online ordering services is a technology, there have been numerous studies related to technology adoption that have revealed several key determinants as performance expectancy, price value, perceive of ease to use and so on which positively influence behavioral intention (Macedo, 2017; Yoo et al. 2015; Wagner et al. For instance, Yeo et al., 2017 found that the motivations behind consumers’ preference to use online services are convenience, time-saving or post-use experiences. Some scholars (Lee et al.
2017, Alavi et al., 2016; Tsang and Tse, 2005) convinced that shopping motivations associated with price values and enjoyment that consumer derived from shopping. A research conducted in Japan of Singh & Matsui, (2017) found that trust plays important role in shaping customer behavior and use intention of online shopping for both physical and service products. Early research on adoption of internet shopping (Citrin et al., 2006) indicated that consumer innovativeness significantly moderated the effect of internet 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com usage on internet shopping behavior. However, most of previous researches had mainly examined the adoption of online shopping in general and there is lack of papers have explained consumer’s behavior in specific domain activity like online food ordering (E.
Lee et al., 2017; Yeo et al. Research objectives The current research aims to contribute an early empirical research to identify driven factors for using online food ordering services – a domain specific part of online shopping in Vietnam market. The study mainly adapts UTAUT2 framework to understand motivations behind usage intention of online food ordering services. Besides that, there are two noticeable variables were added in original framework.
In particular, author will investigate the direct effect of trust on customer usage intention and the moderating effect of consumer innovativeness moderate the influence of research constructs on its outcome. The research questions investigated by this study are as follows: 1. What are the factors that significantly influence customers’ adoption of online food ordering services in Vietnam? 2. To what degree consumer innovativeness moderates the relationship between those factors and usage intention of online food ordering services in Vietnam? 1.
Research Scope In general, this paper is the study of online consumption behavior of consumer in Vietnam market and from existing online food ordering service providers in Vietnam. The participants of this research mainly included but not limited to Vietnamese consumer. Thanks to online questionnaires and data collections via social network, online channel this study was able to flexibly access participant’s feedback regardless of geographic distance, race, gender difference or time, cost constraints. 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Research Structure Research paper consists of five chapters. The first chapter introduces the research background regarding the foundation of academic research and practical problem which motivated author to conduct this study. The second chapter namely literature review and hypothesis development which literally concern about previous studies that closely associated to research topic as well as to summarize key determinants which incorporate in hypotheses formulation. The third chapter explained about research design, research procedures, following by pilot test and survey adjustment as well as measurement of variables.
Results and findings of this study will be discussed in the chapter 4. The last chapter concluded hypotheses and their implications, so that author suggests some theoretical, practical contributions as well as acknowledgment of several limitations which recommend for improvement in future research. 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.