Research on Online Purchase Intention of Customers in Ho Chi Minh Based on TPB Theory

- Research on Online Purchase Intention of Customers in Ho Chi Minh Based on TPB Theory.
- a Industrial University of Ho Chi Minh City, 12 Nguyen Van Bao Street, Ho Chi Minh City, Vietnam.
- This research was carried out to analyze factors influencing the online purchase intention of customers in Ho Chi Minh City.
- Through the combination of qualitative research and quantitative research, the author conducted a survey of 226 customers who intended to engage in online purchase in Ho Chi Minh City.
- As can be seen from the research results, there were 5 groups of factors influencing the customers' online purchase intention, namely: (1) Perceived usefulness.
- (2) Perceived ease of use.
- (3) Perceived risk.
- (4) Subjective norm;.
- and (5) Price expectation.
- This is an important basis for enterprises in Ho Chi Minh City to develop directions and strategies for the purpose of positively influencing on the customers' online purchase intention by applying the extended theory of planned behavior (abbreviated TPB)..
- Online purchase intention.
- Perceived risk.
- Customers in Ho Chi Minh City..
- Ho Chi Minh City gets the same situations as e- commerce is becoming more and more convenient, making customers' purchase behavior change rapidly, requiring enterprises and retailers to strive to meet this trend.
- With the launch of a series of e-commerce websites such as Thegioididong, Lazada, Tiki, Shopee, Sendo, Adayroi, etc., online purchase is no stranger to Vietnamese consumers, especially young people.
- In Ho Chi Minh City, the e-commerce market continues to expand with a wide range of new models.
- Ho Chi Minh City's enterprises have also quickly caught up with new trends and made investments in e-commerce websites in a professional way with the aims of building a version used on mobile devices such as smartphone, tablet.
- According to Ho Chi Minh City Department of Industry and Trade, there are about 127,100 active websites, including 8,910 e-commerce websites in the city registered with the Ministry of Industry and Trade, namely: 819 e-commerce websites on sales of goods and 391 e-commerce website on provision of services.
- Such large numbers of websites in Ho Chi Minh City do help enterprises maximize their value chain and effectively exploit this resource.
- However, this requires enterprises accurately grasping a core issue which is to understand factors that affect the consumers' online purchase intention because the purchase intention is seen as a factor that have a decisive influence on consumer behavior.
- The research of consumers' online purchase intention was conducted based on various theories such as: Theory of Reasoned Action (TRA) model, Theory of Planned behavior (TPB), Technology Acceptance Model (TAM) Among these theories, the Theory of Planned Behavior (TPB) has been widely used in lots of studies and applied successfully as a theoretical framework for predicting purchase intention and behavior.
- From the above issues, the paper focuses on research and solutions to apply TPB to explore online purchase intention of customers in Ho Chi Minh City..
- Ruyter (2004): Online purchase is defined as the behavior of consumers in purchase through online stores or websites that use online purchases.
- According to Liang and Lai, (2000): Online purchase behavior refers to the process of purchase of any product or service on the Internet, including five steps similar to traditional purchase behavior..
- TPB was accepted and used widely in the studies with the aim guessing the consuming intention and specific behavior of individuals.
- Furthermore, in the research background at Viet Nam, some studies proved TPB more suitable in guessing the online purchase intention of consumers (Thang, 2016.
- Besides 3 factors above, in the online purchase background, the study of Jarvenpaa and et al (2000), Lee and et al (2001), Winch and et al (2006), Pavlou and et al (2003) also concerned with the price expectation and the perceived risk is one of the most influent factor to consumer’s online purchase intention.
- The price expectation is the evaluation of consumers about what they have to exchange with the cost they have to spend out (Pavlou and et al, 2003).
- (4) Subjective norm.
- “Online purchase intention”..
- has a positive correlation with the online purchase intention.
- Perceived usefulness Perceived ease of use.
- Perceived risk Subjective norm Price expectation..
- has a positive correlation with the intention to buy online.
- Perceived usefulness.
- HI1 Online purchase saves you time HI2 Online purchase saves you money.
- HI3 Online purchase helps you find information easily HI4 Online purchase provides lots of products to choose from.
- Perceived ease of use.
- SD1 Online purchase makes it easy to search information about products at the website SD2 Online purchase makes it easy to compare features among products.
- SD3 Online purchase makes it easy to order with a simple process SD5 Online purchase makes it easy to pay when ordering.
- Perceived risk (RR).
- RR3 Safety when making online purchase payment is ensured RR4 Customers always enjoy the warranty policy.
- Subjective norm (CQ).
- CQ1 Consultation from feedback of customers who have engaged in online purchase is available.
- GC1 Online purchase makes it easy to compare prices with the same products GC2 Price of products upon online purchase includes type of fees involved GC3 Online purchase is cheap.
- Online purchase intention (YD).
- YD1 I have an online purchase intention in the near future.
- YD2 I will engage in online purchase more frequently than traditional purchase YD3 I will introduce online purchase to others.
- It was aimed at adjusting and adding factors that influence the online purchase intention to the scale.
- The formal research was conducted by quantitative method, using direct interview technique through questionnaires from 02/2018 to 04/2018 to collect information from customers who intended to make online purchase in Ho Chi Minh City.
- However, to ensure high reliability, the author conducted survey of 250 subjects from customers who intended to engage in online purchase in Ho Chi Minh City.
- 4.1 The characteristics of the research sample.
- The characteristics of the research sample.
- The reliability test showed that the Cronbach's alpha coefficients of scales were greater than 0.7 (the lowest coefficient was Perceived usefulness scale with α = 0.716).
- RR Perceived risk 0,819.
- GC Price expectation.
- YD Online purchase intention 0,828.
- 4.3 Exploratory Factor Analysis – EFA 4.3.1 The independent variables.
- Subjective norm.
- Price expectation..
- As can be seen from the results obtained, the Exploratory Factor Analysis (EFA) model was consistent with the data, compiled into five groups of factors and can be used for multiple regression analysis..
- As can be seen from the results obtained, the Exploratory Factor Analysis (EFA) model was consistent with the data, compiled into one groups of factors and can be used for multiple regression analysis..
- Perceived risk (X .
- Perceived usefulness (X .
- Subjective norm (X .
- Price expectation (X .
- which means that 50.2% variation of the dependent variable "Online purchase intention".
- was explained by five independent factors of the model.
- The value F = 46,410 and the sig value <0.05 showed that the regression model was consistent with the data collected and variables were statistically significant at the significance level of 5%.
- The variables included in the model have a linear relationship with the dependent variable, so the hypotheses H1, H2, H3, H4 and H5 were accepted.
- (In which: Y: Online purchase intention of customers in Ho Chi Minh City.
- X3: Perceived risk.
- X5: Price expectation).
- Thus, after analyzing Pearson's correlation coefficient and multivariate regression analysis, the research model was consistent with five factors influencing consumers' online purchase intention in Ho Chi Minh City ranked according to the normalized beta coefficient as follows:.
- The extent to which factors influence consumers' online purchase intention in Ho Chi Minh City.
- According to the analysis results, the above five factors have made influence and positively correlated with customers' online purchase intention in Ho Chi Minh City, depending on the level of influence: (1) Perceived ease of use.
- (2) Perceived risk.
- (3) Price expectation.
- (5) Perceived usefulness This is an important basis for enterprises in Ho Chi Minh City to develop the right directions and strategies in applying the extended TPB to the online purchase model..
- In term of the perceived ease of use: As the perceived ease of use is considered to be most strongly correlated with the online purchase intention, it is the factor that needs to be improved and developed properly, specifically:.
- In term of the perceived risk: As the perceived risk is considered to be the second strongly correlated factor with the online purchase intention, it is the factor that needs to be improved and developed properly, specifically:.
- In term of the price expectation: As the price expectation is considered to be the third strongly correlated factor with the online purchase intention, it is the factor that needs to be improved and developed properly, specifically: (1) Providers should refer to prices of other websites to find out prices offered to their customers, which helps reduce the price difference among enterprises and improve the fair competition in the market.
- (2) The price offered must be appropriate to the products and acceptable to the customers so that it is possible to adjust the price offered in accordance with the current situation of providers and procurement situation of the market to be able to create profit for the providers and attract potential customers..
- In term of the subjective norm: As the subjective norm is considered to be the fourth strongly correlated factor with the online purchase intention, it is the factor that needs to be improved and developed properly, specifically: (1) Providers should actively advertise their websites on the mass media as well as other media so that customers know the website from a variety of sources, (2) It is crucial to publish many articles about the providers to make customers approach and know the providers from various sources..
- In term of the perceived usefulness: As the perceived usefulness is considered to be the fifth strongly correlated factor with the online purchase intention, it is the factor that needs to be improved and developed properly, specifically: (1) It is necessary to maximize the time by placing favorite items on the front page so that customers can select and buy quickly (2) Product information should be provided in detail to help purchasers save time and money..
- Perceived risk (X1) 0,214.
- Price expectation (X5) 0,207.
- Through this research, the author presents factors of the model influencing the online purchase intention..
- As the research was conducted through the survey of customers in Ho Chi Minh City, research results may not be applicable to other localities.
- This helps policy makers and business managers capture e-commerce development in order to continue to develop strategies in line with the development..
- Secondly, in term of factors influencing the online purchase intention, there were only five factors influencing the online purchase intention provided, namely (1) perceived ease of use.
- (2) perceived risk.
- (3) price expectation.
- (4) subjective norm.
- (5) perceived usefulness based on the extended TPB model, while there are many other factors that may also influence the online purchase intention.
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