Shu - Te University College of Informatics Graduate School of Information Management Master Exploring Factors That Influence Customers‟ Use of E-Banking in Vietnam Student: Le Anh Thuan Advisor: Dr. To Chang Dr. Nguyen Thi My Loc February, 2011 Exploring Factors That Influence Customers‟ Use of EBanking in Vietnam Student：Le Anh Thuan Advisor：Dr. To Chang Dr. Nguyen Thi My Loc A Thesis Submitted to the Graduate School of Information Management College of Informatics Shu-Te University In Partial Fulfillment of the Requirements For the Degree of Master of Science In Information Management February 2011 Department of Information Management, Shu-Te University Exploring Factors That Influence Customers‟ Use of E-Banking in Vietnam Student：Le Anh Thuan Advisor：To Chang Co-advisor：Dr. Nguyen Thi My Loc ABSTRACT With the development of Internet technology continues, the number of people who use Internet has increased rapidly in the world. E-banking grows faster than other ecommerce sectors and it has emerged as an evolution of application technology on banking industry. The purpose of this study is to investigate the factors that influence Vietnamese consumer individuals‟ intention use and reuse e-banking services. Specifically, this study is interested in exploring what are the most success factors between system quality, information quality and service quality in e-banking. The study utilized the elements of Information System (IS) Success Model (DeLone & McLean, 1992, 2003) and Expectancy Disconfirmation Theory (EDT, 1980) as theoretical framework to accomplish this research. Intention to use e-banking service depends on the fact that customer can be satisfy with elements such as system quality, information quality and i service quality. We use convenience sampling questionnaire to execute the samples and Regression Analysis apply to confirm the relationships of hypothesis. This study randomly surveyed 270 Vietnamese participants who have experience in consuming cosmetic products in Vietnam market and received a total of 242 valid questionnaires. The research indicated the components (Information quality, System quality and Service quality) may lead to acceptable ability of intention to reuse e-banking services of Vietnamese. In details, the strongest influence on intention of consuming cosmetic is Service Quality. The results of this study are hoped to be the efficient constructive sources for the all Vietnamese banks to understand the critical factors that influence Vietnamese consumer‟s e-banking intention and contribute the competitive promotion campaigns in Vietnam. Keywords: E-banking, Intention to Reuse, Information System (IS) Success Model ii ACKNOWLEDGMENTS I am delighted to have chance to express my gratitude and thankfulness to those who supported and encourage me to complete this research study. First of all, my sincerely thanks and appreciate to my advisor Professor To Chang from Department of Information Management, Institute of Informatics of Shu-Te University and Professor Nguyen Thi My Loc from University education Viet Nam, provided guidance and encourage throughout my study and during my research process. This research study can be completed with supported and guided of him. I would like to express my deeply thanks to Dr. Chen Pi-Yun for providing valuable guidance and suggestion. Without their assistants, this study would not be completed. I would also like to express my thankfulness to class MIS for their supporting and encouragement during two years study. Finally, I would like to expresses my heartfelt gratitude to my family who provide me mentally support with encouragement and useful advises. iii Table of Contents ABSTRACT i ACKNOWLEDGMENTS . iii Table of Contents iv List of Tables . vi List of Figures . vii Chapter Introduction 1.1 Research Background . 1.2 Research Purpose 1.3 Research Questions 1.4 Significance of the Study 1.5 Research Procedure Chapter Literature Review . 2.1 E-banking and Benefits 2.2 E-banking in Vietnam . 11 2.3 Information System (IS) Success Models 13 2.3.1 The DeLone and McLean (1992) Model . 13 2.3.2 DeLone and McLean: The 10 year Update (2003) 15 2.4 Expectancy disconfirmation theory (EDT) . 18 Chapter Methodology 21 3.1 Research Framework 21 3.2 Hypotheses Development . 22 3.2.1 The relationship between Information Quality and Use 22 3.2.2 The relationship between Information Quality and User satisfaction . 23 3.2.3 The relationship between System Quality and Use . 24 3.2.4 The relationship between System Quality and User Satisfaction 24 3.2.5 The relationship between Service Quality and Use . 25 3.2.6 The relationship between Service Quality and User Satisfaction 25 3.2.7. The relationship between Use and User Satisfaction . 25 3.2.8. The relationship between User satisfaction and Intention to Reuse . 26 3.3 Variable Measurement and Questionnaire Design . 26 3.4 Sampling . 29 3.5 Data Analysis 30 iv 3.5.1 Descriptive and Demographic Analysis 30 3.5.2 Bivariate Correlation . 30 3.5.3 Regression Analysis 31 Chapter Data analysis and Results 32 4.1. Demographic Characteristics . 32 4.2 Descriptive Statistic 33 4.3 Correlation Coefficient and Reliability Testing . 34 4.3.1 Reliability Analysis of variables 35 4.3.2 Correlation Analysis 36 4.4 Regression Analysis . 37 4.4.1 Regression of Use (U) on INQ (Information Quality), SYQ (System Quality) and SEQ (Service Quality) . 38 4.4.2 Regression of User Satisfaction (US) on INQ (Information Quality), SYQ (System Quality) and SEQ (Service Quality) . 40 4.4.3 Regression of IRU (Intention to Reuse) on US (User Satisfaction) 41 4.5 Summarize of Results . 42 Chapter Conclusion and Recommendations 44 5.1 Research Conclusions . 44 5.2 Managerial Recommendations . 46 5.3 Limitation . 46 REFERENCES . 48 APPENDIX: QUESTIONAIRE IN ENGLISH 53 v 4.4.2 Regression of User Satisfaction (US) on INQ (Information Quality), SYQ (System Quality) and SEQ (Service Quality) The result of regression analysis between INQ (Information Quality), SYQ (System Quality), SEQ (Service Quality) and US (User‟s Satisfaction) is shown in the Table 8. From the results of this table, it indicated that two dimensions of quality which are INQ and SEQ involved in show a positive significant relationship with US because p-value is .000[...]... role and Vietnam has ready to make e- banking more necessary and popular especially in services industry because of retaining and satisfying Vietnamese customers 1.2 Research Purpose The purpose of this study is to investigate the factors that influence Vietnamese consumer individuals‟ intention use and reuse e- banking services Specifically, this study is interested in exploring what are the most success... model applied in Vietnam banking system 5 1.3 Research Questions Based on the above descriptions, this study intended to examine factors that affect Vietnamese consumer intention of using and re-using e- banking This study aims to answer these following questions: 1 What are the key factors that influence Vietnamese consumer intention on using and re-using e- banking? 2 What is the intention model that. .. point of view, this study examines the successful capabilities of e- banking in this time and sees future opportunity for Vietnam e- banking In fact, understanding customer‟s intention in 6 using e- banking is extremely necessary for succeed or failure of a bank to improve banking services in order to provide better services for Vietnamese customer 1.5 Research Procedure Figure 1.1 indicates the progress... precision, relevance, meaningfulness, accessibility, reliability, completeness and adaptability Use reported by the users or the actual use as reported by the system in terms of frequency of use User satisfaction measures of how the information affects the user and responses to the use of the output of IS It related to the degree 14 of user‟s satisfaction Individual impact refers to the effect of information... positive 16 experience with the use of the system will increase the satisfaction of the user Furthermore, an increased user satisfaction will increase the intention to use which ultimately will increase use (DeLone & McLean 2003) As DeLone and McLean (2003) proposed that customers and suppliers use the systems to make buying or selling decisions and execute business transactions, making the internet a... processing system itself such as convenience of access, reliability of the computer system, realization of user expectations, online response time, ease of use, ease of learning, response time, and system accuracy Information quality targets the meaning level of the IS output or the quality of the information that the system produces in the form of reports and it includes accuracy, timeliness, precision,... Moreover, this research adapted to investigate the framework with these factors whether or not can be applied to find out customer‟s intention better in Vietnam banking system In business perspective, this research will assist managers to understand the important of those factors affect on e- banking intention by recording the factors of consumers use and re -use and what are the results caused by them... networks, the Internet, televisions, mobile devices and telephones Among these technologies, the increasing penetration of personal computers, relatively easier access to the Internet and particularly the wider diffusion of mobile phones has drawn the attention of most banks to e- banking E- banking has opened up new windows of challenges and opportunities for all of Vietnamese banks and Vietnamese customers... environment The content offered should be personalized, complete, relevant, easy to understand, and secure Service quality should cover the support that the service provider offers to the customer regardless of what business unit provides it before, during, and after the E- commerce exchange This dimension is more important in an e- commerce environment than ever before, because the users are now customers... refers to the content that the organization provides to the public in order to 22 increase their knowledge of the product and influence them into the purchase In the E- commerce environment, this dimension of IS success measures the accuracy, understandability, relevance, and completeness of the information provided as seen from the individual perspective of the user In terms of organizational level . factors that influence Vietnamese consumer individuals‟ intention use and reuse e- banking services. Specifically, this study is interested in exploring what are the most success factors between. the development of Internet technology continues, the number of people who use Internet has increased rapidly in the world. E- banking grows faster than other e- commerce sectors and it has emerged. and Service quality) may lead to acceptable ability of intention to reuse e- banking services of Vietnamese. In details, the strongest influence on intention of consuming cosmetic is Service Quality.