THE KEY LOYALTY TO USAGE OF INTERNET BANKING OF INDIVIDUALS IN HOCHIMINH CITY, VIETNAM In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business By Ms: Võ Thị Diệu Hiền ID: MBA03011 International University - Vietnam National University HCMC March 2013 THE KEY ANTECEDENTS TO USAGE OF INTERNET BANKING OF INDIVIDUALS IN HOCHIMINH CITY, VIETNAM In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business by Ms: Võ Thị Diệu Hiền ID: MBA03011 International University - Vietnam National University HCMC March 2013 Under the guidance and approval of the committee, and approved by all its members, this thesis has been accepted in partial fulfillment of the requirements for the degree Approved: -Chairperson Committee member -Committee member Committee member -Committee member Committee member Acknowledge To complete this thesis, I have been benefited much from Doctor Lê Nguyễn Hậu-the advisor So, I would like to express many thanks to him for guiding us months from months of hard working on my thesis From the bottom of my heart, I wish to express sincere appreciation to Doctor Nguyễn Quỳnh Mai-the faculty dean, and Master Nguyễn Văn Tuấn-the SPSS tutor These teachers have lightened up our mind and supported us with their knowledge and enthusiasm Besides, I am very grateful to respondents for their feed-back Thanks to input data they contributed I can complete this thesis today -i- - ii - Plagiarism Statements I would like to declare that, apart from the acknowledged references, this thesis either does not use language, ideas, or other original material from anyone; or has not been previously submitted to any other educational and research programs or institutions I fully understand that any writings in this thesis contradicted to the above statement will automatically lead to the rejection from the MBA program at the International University – Vietnam National University Hochiminh City - ii - Copyright Statement This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author‟s prior consent © Võ Thị Diệu Hiền/ MBA03011/2010-2013 - iii - Table of Contents List of Tables vi List of Figures vii Abstract viii Chapter one: Introduction 1.1.Research background 1.2.Thesis Topic 1.3.Rational 1.4.Problems 1.5.Research question 1.6.Research objective 1.7.Significant of the research 1.8.Research method 1.9.Scope of study Chapter two: Literature review and Frame work 2.1.Literature review .6 2.1.1.Internet banking 2.1.2.TAM, TRA, TPB 2.1.3.Perceived Usefulness (PU) 2.1.4.Perceived Ease of Use (PEOU) .9 2.1.5 Perceived risk (PR) 10 2.1.5.1.Financial risk (FR) 11 2.1.5.2.Privacy risk (PR) 11 2.1.6.Cost of price (COP) 12 2.1.7.Usage Intention (UI) 13 2.2.Theoretical framework 13 Chapter three: Research Methodology 15 3.1.Introduction 15 3.2.Sampling and data collection 16 3.2.1.Sampling approach 16 3.2.2.Data source 16 3.2.3.Data collection 16 3.2.4.Measurement development 17 Chapter four: Data analysis and result 22 4.1.Sample demographics 22 4.2.Result 23 4.2.1.Analysis of measurement model 23 4.2.2.Exploratory Factor Analysis (EFA) 26 4.2.3.Reliabitity for groups of PEOU and PRC 30 4.2.4.Correlation between variables 30 4.2.5.Adjusted model after EFA 31 4.3.Hypothesis restating 31 4.4.Hypothesis testing 32 4.5.Multicollinearity 33 4.6.The equation 33 4.7.Descriptive statistics 34 4.8.ANOVA test 37 - iv - 4.9.Achievement in predictive purpose 40 Chapter five: Discussion and recommendations 41 Chapter six: Conclusion and limitations 44 Refferences 46 Appendix A: Questionnaire (English) 49 Appendix B: Questionnaire (Vietnamese) 52 Appendix C: Reliability Statistics and Item-total statistics 55 Appendix D: Reliability Statistics and Item-total statistics after EFA 57 Appendix E: Measurement Scale and Sources 60 -v- List of Tables Table Dimensions of perceived risk Table Independent variables (indicators) Table Cronbach's Alpha before EFA Table KMO and Bartlett's Test Table KMO and Bartlett's Test after rejecting PEOU1 and PR3 Table Factor loading Table Total variance explained Table Representative variables Table Correlations Table 10 Coefficients Table 11 Descriptive statistics of variables Table 12 Test of Homogeneity of Variances (experience) Table 13 ANOVA (experience) Table 14 Multiple comparisons Table 15 Test of Homogeneity of Variances (Education) Table 16 ANOVA (Education) Table 17 Multiple comparisons Table 18 Test of Homogeneity of Variances (Job) Table 19 ANOVA (Job) Table 20 Multiple comparisons Table 21 Model summary - vi - Karjaluoto, H (2002) Selection criteria for a mode of bill payment: empirical investigation among Finnish bank customers International Journal of Retail & Distribution Management, 30(6), 331-339 Karjaluoto, H., Mattila, M., and Pento, T (2002) Factors underlying attitude information towards online banking in Finland International Journal of Bank Marketing, 20(6), 261-72 Kuisma, T.,Laukkanen T., hiltunen M (2007) Mapping the reasons for resistance to internet banking: a means-end approach International Information Management, 27(2), 75-85 Lee, MC (2008) Predicting behavioral intention to use online banking Proceedings of the 19th international conference on information management Taiwan Lee, M.S.Y., McGoldrick, P.F., Keeling, K.A and Doherty, J (2003) Using ZMET to explore barriers to the adoption of 3G mobile banking services International Journal of Retail and Distribution Management, 3(6), 340-8 Lin, W.B (2008) Investigation on the model of consumers' perceived risk-intergrated viewpoint Expert System Application, 34(1) 977-88 Luarn, P and Lin, H.H (2005) Toward un understanding of the behavioral intention to use mobile banking Computers in Human Behavior 21(6), 873-91 Mathieson, K (1991) Predicting user intentions: comparing the technology acceptance model with the theory of planned behavior Information Systems Research, 2(3), 173-91 Ndubisi, N.O., Jantan, M (2003) Evaluating IS usage in Malaysian small and medium-sized firms using TAM Logistics Information Management, 16 (6), 440-450 Nupur, J M (2010) E-banking and customers' satisfaction in Bangladesh: an analysis International Review of Business Research Papers, 6, 145-156 Pavlou P.A (2003) Consumer acceptance of electronic commerce: intergrating trust and risk with the technology acceptance model International Journal of Electronic Commerce, 7(3), 69-103 Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., and Pahnila, S., (2004) Consumer acceptance of online banking: an extension of the technology acceptance model Internet Research, 14(3), 224-35 Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., and Pahnila, S., (2004) Consumer acceptance of online banking: an extension of the technology acceptance model Internet Research, Vol 14 Iss: pp 224 – 235 - 47 - Rigopoulos, G (2007) A TAM Framework to Evaluate Users‟ Perception towards Online Electronic Payments Journal of Internet Banking and Commerce, vol 12, no.3 Sathye, M (1999) Adoption of internet banking by Australian consumers: an empirical investigation International Journal of Bank Marketing, 17(7), 324-34 Tan, M and Teo, T.S.H (2000) Factors influencing the adoption of internet banking Journal of the AIS, 1(5), available at: http://jais.isworld.org/articles/1-5/ Taylor, S and Todd, P.A (1995) Understanding information technology usage: a test of completing models Information Systems Research, 6(2), 144-76 Venkatesh, V and Morris, M.G (2000) Why don‟t men ever stop to ask for direction? Gender, social influence, and their role in technology acceptance and usage behavior MIS Quarterly, 24(1),115-39 Wang Y., Lin H., and Tang, T (2003) Determinant of user acceptance of internet banking: an empirical study International Journal of Service Industry Management, 5, 501-18 - 48 - Appendix AppendixA.Survey questionnaire Survey: THE KEY LOYALTY TO INTERNET BANKING USAGE OF INDIVIDUALS IN HOCHIMINH CITY, VIETNAM Dear customers! We are IU MBA students We are now performing a thesis research, entitled as: “The key loyalty to usage of internet banking of Individuals in Hồ Chí Minh city” May you please fill in this survey to support us research data We commit this is completely used for research purpose only Thank you! -Internet Banking: the way you surf online and use online banking service, i.e : to make payment for bills, for electricity, mobile phone, assurance company; or To transfer money to other individuals or organization, etc ITEM A GENERAL INFORMATION How long have you been using Internet banking? Never before Less than years More than years Not using any more You are using internet banking serving by which bank(s)? (more than one (01) bank can be chosen) Vietcombank Vietinbank Techcombank ACB B THE SURVEY Please tick „x‟ to express to which degree you agree with the statement below Note: "1" - Totally disagree "2" - Not agree "3" - Neutral "4" - Agree "5" - Totally agree PU1 PU2 PU3 Using internet-banking enhances my effectiveness of utilizing banking services Using internet-banking enables me to utilize banking services more quickly I think that using online banking would make it easier for me to carry out my tasks - 49 - PU4 PU5 PU6 PEOU1 PEOU2 PEOU3 PEOU4 PEOU5 PEOU6 FR1 FR2 PR1 PR2 PR3 COP1 COP2 COP3 UI1 UI2 UI3 UI4 UI5 UI6 UI7 I think that using online banking would enable me to accomplish my tasks more quickly I think online banking is useful Overall, I think that using internet-banking is advantageous I find it easy to what I want to in internet-banking 10 My interaction with an i-banking is clear and understandable 11 I find internet-banking to be flexible to interact with 12 Learning to use internet-banking is easy to me 13 It is easily for me to become skillful at using internetbanking 14 Overall, I find internet-banking is easy for me to use 15 When transaction errors occur, I worry that I cannot get compensation from banks 16 While transferring money in internet, I am afraid that I would lose money due to careless mistakes such as wrong input of account number and wrong input of amount of money 17 I would not feel totally safe providing personal privacy information over the Internet banking 18 I am worried to use internet banking because other people may be able to access to my account 19 I would not feel secure sending sensitive information across the Internet banking 20 The price of i-banking payment services is acceptable to me 21 The price of internet-banking payment services is acceptable for the service quality 22 The price of internet-banking payment services is low in comparison with other banks' price 23 I think that using the internet-banking is a good idea 24 I think that using the internet-banking is beneficial to me 25 I have positive perception about using the new internbanking service 26 I intend to use the internet-banking service frequently 27 I intend to use the internet-banking service more than any other payment service 28 I would use the online banking for my banking needs 29 Using the online banking for handling my banking transactions is something I would - 50 - UI8 30 I would see myself using the online banking for handling my banking transactions C CUSTOMER'S INFORMATION 31 Your age is in this range: Under 25 25 - 35 36 - 45 Above 46 32 You have graduated: (at upmost level) Post-grad Colledge High School Under high school 33 Your current job: Officer Staffs Technician Manager Student, teacher other 34 Sex Male Female Thank you for support us with your information If you are curious about the survey result, please leave your email address here: … - 51 - Appendix B.Survey questionnaire (Vietnamese) BẢNG KHẢO SÁT: CÁC YẾU TỐ QUYẾT ĐỊNH ĐếN Ý ĐịNH SỬ DỤNG DỊCH VỤ INTERNET BANKING CỦA KHÁCH HÀNG CÁ NHÂN TẠI TP.HCM Xin chào quý vị! Chúng sinh viên cao học ngành Quản trị kinh doanh, Trường Đại học Quốc tế Tp.HCM Hiện thực luận văn tốt nghiệp với đề tài nghiên cứu: “Các nhân tố định đến ý định sử dụng dịch vụ Internet banking khách hàng cá nhân thành phố Hồ Chí Minh” Rất mong quý vị dành chút thời gian giúp chúng tơi hồn thành Bảng câu hỏi khảo sát Chỉ cần phút ỏi mà Quý vị đóng góp giúp mang lại nguồn liệu quý báu để đề tài nghiên cứu khoa học nói hồn thành trung thực, nghiêm túc Chúng cam kết sử dụng thông tin mục đích nghiên cứu khoa học, tuyệt đối khơng sử dụng vào mục đích thương mại Xin chân thành cảm ơn cộng tác quý vị! Ghi chú: -Định nghĩa Internet Banking (Ngân hàng trực tuyến qua Internet), có nghĩa là: quý vị truy cập vào trang web ngân hàng tự thực số giao dịch Ví dụ: truy vấn thơng tin (xem số dư tài khoản chi tiết tài khoản, xem thông tin loại thẻ mình, Sao kê tài khoản, vv); Hoặc Thanh tốn tiền điện, bảo hiểm, hay Chuyển khoản tiền từ tài khoản cho người khác,vv ITEM A THÔNG TIN CHUNG Qúy vị đã/đang sử dụng ngân hàng điện tử (internet banking) năm? (Nếu chọn câu này, vui lòng lướt Chưa sử dụng đến Phần C (thông tin cá nhân)) (Nếu chọn câu này, vui lòng tiếp Sử dụng năm câu 2) (Nếu chọn câu này, vui lòng tiếp Sử dụng năm câu 2) (Nếu chọn câu này, vui lòng lướt Đã ngừng sử dụng đến Phần C (thông tin cá nhân)) Ngân hàng mà quý vị sử dụng dịch vụ Internet banking? (có thể chọn nhiều (01) ngân hàng) Ngân hàng Ngoại Thương (Vietcombank) Ngân hàng Công Thương (Vietinbank) Ngân hàng Kỹ Thương (Techcombank) Ngân hàng Á Châu (ACB) - 52 - B NỘI DUNG KHẢO SÁT Xin vui lịng đánh dấu x vào bên với mức độ "đồng ý" tăng dần từ đến Mỗi mức độ mang ý nghĩa sau: "1" - Hồn tồn khơng đồng ý "2" - Khơng đồng ý "3" - Khơng có ý kiến "4" - Đồng ý "5" - Hoàn toàn đồng ý PU1 PU2 PU3 PU4 PU5 PU6 PEOU1 PEOU2 PEOU3 PEOU4 PEOU5 PEOU6 Dùng Internet Banking giúp sử dụng dịch vụ ngân hàng hiệu Dùng Internet Banking giúp sử dụng dịch vụ ngân hàng nhanh Tôi nghĩ sử dụng Internet Banking giúp thực công việc dễ dàng Tôi nghĩ sử dụng Internet Banking giúp tơi hồn thành cơng việc nhanh Tơi nghĩ Internet Banking thật có ích Tóm lại, tơi cho dùng Internet Banking thật hữu ích Tơi thấy dễ dàng thực giao dịch muốn Internet Banking 10 Tôi thấy Sự tương tác Internet Banking Rõ ràng Dễ hiểu 11 Tôi thấy Sự tương tác Internet Banking thật Linh động, Uyển chuyển 12 Tôi thấy Học cách sử dụng Internet Banking Dễ dàng 13 Tôi thấy Biết cách sử dụng nhuần nhuyễn Internet Banking thật dễ 14 Tóm lại, tơi thấy Internet Banking dễ sử dụng FR1 FR2 PR1 PR2 PR3 COP1 COP2 COP3 15 Khi giao dịch bị lỗi, lo ngại ngân hàng khơng bồi hồn 16 Khi chuyển tiền internet, tơi sợ bị tiền lỗi bất cẩn gõ sai số tài khoản sai số tiền 17 Tơi thấy khơng an tồn đưa thông tin cá nhân Internet Banking 18 Tơi ngại dùng Internet Banking sợ người khác xâm nhập vào tài khoản 19 Tôi khơng thấy an tồn gởi thơng tin nhạy cảm qua Internet Banking 20 Tiền phí phải trả cho dịch vụ Internet Banking chấp nhận so với thu nhập 21 Tiền phí "đáng đồng tiền bát gạo" 22 Tiền phí ngân hàng dùng Internet banking rẻ so với ngân hàng khác - 53 - UI1 UI2 UI3 UI4 UI5 UI6 UI7 UI8 23 24 25 26 27 Tôi nghĩ sử dụng Internet Banking ý hay Tơi nghĩ sử dụng Internet Banking có lợi cho tơi Tơi cảm nhận tích cực việc sử dụng Internet Banking Tôi định dùng Internet Banking thường xuyên Tôi định dùng Internet Banking nhiều dịch vụ tốn khác 28 Tơi dùng Internet Banking cho nhu cầu giao dịch qua ngân hàng 29 Tôi dùng Internet Banking để xử lý giao dịch ngân hàng 30 Tơi tự thực giao dịch ngân hàng qua Internet Banking C THÔNG TIN CÁ NHÂN 31 Độ tuổi quý vị là: Dưới 25 tuổi Từ 25 tuổi đến 35 tuổi Từ 36 tuổi đến 45 tuổi Trên 46 tuổi 32 Quý vị hồn thành chương trình: (vui lịng chọn cấp độ cao tại) (Đã tốt nghiệp) Sau Đại Học (Đã tốt nghiệp) Đại Học (Đã tốt nghiệp) Trung học Phổ Thông (cấp 3) (Đã học) Trung học Cơ Sở (cấp 2) cấp 33 Công việc tại: Nhân viên văn phòng Chuyên viên kỹ thuật Quản lý Giáo viên, Học sinh-Sinh viên khác, vui lòng ghi rõ: …… 34 Giới tính Nam Nữ Cám ơn quý vị tham gia nghiên cứu Nếu quý vị quan tâm đến kết khảo sát, xin vui lòng cho biết địa email: … - 54 - Appendix C Reliability Statistics and Item-total statistics 1.Factor (VARIABLES=PU1 PU2 PU3 PU4 PU5 PU6) Reliability Statistics( Cronbach's N of Items Alpha 927 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Alpha Item Deleted if Item Deleted Total Correlation if Item Deleted PU1 20.0722 13.010 747 919 PU2 20.0876 12.951 777 915 PU3 20.2423 12.744 765 917 PU4 20.2577 12.130 798 913 PU5 20.0567 12.624 816 910 PU6 20.0825 12.459 834 908 2.Factor (VARIABLES=PEOU1 PEOU2 PEOU3 PEOU4 PEOU5 PEOU6) Reliability Statistics Cronbach's N of Items Alpha 917 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted PEOU1 18.8608 12.773 726 908 PEOU2 18.9845 11.808 820 894 PEOU3 19.1289 12.403 731 907 PEOU4 18.8402 12.425 762 903 PEOU5 19.0052 11.788 803 897 PEOU6 18.8402 12.850 756 904 3.Factor (VARIABLES=FR1 FR2) Reliability Statistics Cronbach's N of Items Alpha 702 - 55 - Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted FR1 3.3454 1.315 541 FR2 3.0361 1.320 541 4.Factor (VARIABLES=PR1 PR2 PR3) Reliability Statistics Cronbach's N of Items Alpha 835 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted PR1 6.5052 3.816 685 781 PR2 6.3969 3.754 696 770 PR3 6.4588 3.845 705 762 5.Factor (VARIABLES=COP1 COP2 COP3) Reliability Statistics Cronbach's N of Items Alpha 672 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted COP1 6.4588 2.053 456 616 COP2 6.8969 1.896 533 510 COP3 6.8299 2.246 469 599 - 56 - 6.Factor (VARIABLES=UI1 UI2 UI3 UI4 UI5 UI6 UI7 UI8) Reliability Statistics Cronbach's N of Items Alpha 932 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted UI1 26.3402 21.096 700 928 UI2 26.3608 20.377 745 925 UI3 26.4175 20.700 734 926 UI4 26.5258 19.691 783 922 UI5 26.6598 19.531 768 923 UI6 26.5515 19.782 799 921 UI7 26.5670 19.698 808 920 UI8 26.4175 19.581 786 922 Appendix D Reliability Statistics and Item-total statistics after EFA (regardless of PEOU1, PR3 1.Factor (VARIABLES= PEOU2 PEOU3 PEOU4 PEOU5 PEOU6) Reliability Statistics Cronbach's N of Items Alpha 908 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted PEOU2 15.1134 8.039 804 879 PEOU3 15.2577 8.493 722 897 PEOU4 14.9691 8.476 763 888 PEOU5 15.1340 7.909 815 877 PEOU6 14.9691 8.901 739 894 - 57 - 2.Factor (VARIABLES=FR1 FR2 PR1 PR2) Reliability Statistics Cronbach's N of Items Alpha 817 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted FR1 9.8041 7.816 593 791 FR2 9.4948 7.547 648 764 PR1 9.6649 7.675 679 751 PR2 9.5567 7.865 632 772 - 58 - Appendix E Construct measurement scales and Coding PERCEIVED USEFULNESS Using internet-banking enhances my effectiveness of utilizing banking services Using internet-banking enables me to utilize banking services more quickly I think that using online banking would make it easier for me to carry out my tasks I think that using online banking would enable me to accomplish my tasks more quickly I think online banking is useful Overall, I think that using internet-banking is advantageous PERCEIVED EASE OF USE I find it easy to what I want to in internet-banking My interaction with an i-banking is clear and understandable I find internet-banking to be flexible to interact with Learning to use internet-banking is easy to me It is easily for me to become skillful at using internet-banking Overall, I find internet-banking is easy for me to use FINANCIAL RISK When transaction errors occur, I worry that I cannot get compensation from banks While transferring money in internet, I am afraid that I would lose money due to careless mistakes such as wrong input of account number and wrong input of amount of money VARIABLE SOURCES PU1 PU2 PU3 Chang et al (2006) PU4 PU5 PU6 PEOU1 PEOU2 PEOU3 PEOU4 PEOU5 PEOU6 Tero Pikkarainen, Kari Pikkarainen, Heikki Karjaluoto, Seppo Pahnila (2004) FR1 Featherman and Pavlou (2003) FR2 Featherman and Pavlou (2003) - 59 - PRIVACY RISK I would not feel totally safe providing personal privacy information over the Internet banking I am worried to use internet banking because other people may be able to access to my account I would not feel secure sending sensitive information across the Internet banking PR1 PR2 PR3 COST OF PRICE The price of i-banking payment services is acceptable to me COP1 The price of internet-banking payment services is acceptable for the service quality COP2 The price of internet-banking payment services is low in comparison with other banks' price COP3 INTENTION TO USE I think that using the internet-banking is a good idea I think that using the internet-banking is beneficial to me I have positive perception about using the new intern-banking service I intend to use the internet-banking service frequently I intend to use the internet-banking service more than any other payment service I would use the online banking for my banking needs Using the online banking for handling my banking transactions is something I would I would see myself using the online banking for handling my banking transactions Featherman and Pavlou (2003) Heikki Karjaluoto (2002) UI1 UI2 UI3 UI4 Chang et al (2006) UI5 UI6 UI7 UI8 - 60 - - 61 - .. .THE KEY ANTECEDENTS TO USAGE OF INTERNET BANKING OF INDIVIDUALS IN HOCHIMINH CITY, VIETNAM In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International... banks to entice customers to internet- banking services? 1.6 Research Objective The objective of this study is to examine key loyalty of usage of internetbanking in individuals of Hochiminh city banking. .. 1.2 Thesis Topic The key loyalty to usage of Internet- banking of individuals in Hochiminh city, Vietnam 1.3 Rationale Vietnam is a developing country Among the national development targets, information