Factors Affectding Customer Trust in Online Shopping in Vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business

------------------------------
Tran Minh
FACTORS AFFECTING CUSTOMER

TRUST IN ONLINE SHOPPING
IN VIETNAM
MASTER OF BUSINESS (Honours)
Ho Chi Minh City Year 2012

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------
Tran Minh
FACTORS AFFECTING CUSTOMER

TRUST IN ONLINE SHOPPING
IN VIETNAM
ID: 60340102
MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. NGUYEN HUU LAM
Acknowledgement
Apart from the efforts of me, the success of this thesis is depended largely on
the encouragement and guidelines of many others. Especially, Dr. Nguyen Huu Lam
and Associate Prof Dr. Nguyen Dinh Tho have been instrumental in the successful
completion of this study. I would like to take this opportunity to express my gratitude
to them and I really appreciate with their tremendous support and help. I feel motivated
and encouraged every time I attend his meeting. Without his encouragement and
guidance, this project would not have materialized.
Besides, I would like to thank my close classmates and staffs working at
International School of Business UEH including Nguyen Thanh Huong, Huynh Ngoc
Duy, Thai Thi Thu Giang, and Nguyen Thi Ngoc Lien for their guidance and support.
Ho Chi Minh City, Jan 1 st 2013
Tran Minh
Table of Contents
Abbreviations............................................................................................................................. iii
List of Tables ............................................................................................................................. iv
List of Figures............................................................................................................................. v
List of Appendix ........................................................................................................................ vi
Chapter One: Introduction .......................................................................................................... 1
1.
Background..................................................................................................................... 1
1.1.
The Internet in Vietnam.......................................................................................... 1
1.2.
Online shopping in Vietnam ................................................................................... 1
2.
Statement of purpose ...................................................................................................... 2
3.
Research question ........................................................................................................... 3
4.
Significance of the study................................................................................................. 3
5.
Scope of the study........................................................................................................... 3
6.
Structure of the study...................................................................................................... 3
Chapter Two: Literature Review ................................................................................................ 5

1.
2.
Trust in online shopping ................................................................................................. 5

1.1.
Definition of trust in e-commerce........................................................................... 5
1.2.
The importance of trust in e-commerce................................................................ 15
Trust antecedents identified in the literature................................................................. 16

2.1.
Perceived privacy and security protection ............................................................ 16
2.2.
Perceived risks and benefits.................................................................................. 18
Chapter Three: Methodology.................................................................................................... 20

1.
Participants.................................................................................................................... 20
2.
Instruments.................................................................................................................... 20
3.
Samples and data collection procedures ....................................................................... 24
4.
Data analysis ................................................................................................................. 24
Chapter Four: Results ............................................................................................................... 26
1.
Characteristics of the sample population ...................................................................... 26
2.
Reliability of measurement instruments ....................................................................... 28
ii
3.
2.1.
Validating measures.............................................................................................. 28
2.2.
Exploratory factor analysis ................................................................................... 32
Tests of regression assumptions ................................................................................... 37

3.1.
Test of multicollinearity........................................................................................ 37
3.2.
Test of normality of residual & heteroscedasticity............................................... 38
4.
Evaluating demographic variables impacts on customers trust ................................. 38
5.
Hypotheses testing ........................................................................................................ 39
6.
Summary of the results ................................................................................................. 41
Chapter Five: Discussion .......................................................................................................... 43

1.
Findings ........................................................................................................................ 43
2.
Implications .................................................................................................................. 44
3.
Conclusion .................................................................................................................... 45
4.
Limitations and directions for future research.............................................................. 45
References................................................................................................................................. 46
iii
Abbreviations
WTO
World Trade Organization
APEC
Asia-Pacific Economic Cooperation
ASEM
Asia-Europe Meeting
SPSS
Statistical Package for the Social Sciences
PP
Privacy Protection
SP
Security Protection
PR
Perceived Risk
PB
Perceived Benefit
CTIS
Customer Trust in Internet Shopping
EFA
Exploratory Factor Analysis
TVE
Total Variance Extracted
VIF
Variance Inflation Factor
iii
List of Tables
Table 2.1. Summary of prior conceptualizations of trust ........................................................... 6
Table 3.1. Privacy protection and security protection scales.................................................... 21
Table 3.2. Perceived risk and perceived benefits scales ........................................................... 22
Table 3.3. Customer trust scale................................................................................................. 23
Table 4.1. Distribution of respondents based on demographic characteristics......................... 27
Table 4.2. Item-Total Statistics................................................................................................. 29
Table 4.3. Total Variance Explained ........................................................................................ 34
Table 4.4. Pattern Matrixa ......................................................................................................... 35
Table 4.5. Item-Total Statistics................................................................................................. 36
Table 4.6. Model Summary ...................................................................................................... 39
Table 4.7. ANOVAb.................................................................................................................. 39
Table 4.8. Coefficients a............................................................................................................ 40
iv
List of Figures
Figure 1. Conceptual Model ..................................................................................................... 19
Figure 2. Results of testing the conceptual model .................................................................... 42
List of Appendix
Appendix A. Customer Survey Form ............................................................................51
Appendix B. Graphs.......................................................................................................57
Graph 1. Regression Standadized Residual ...................................................................57
Graph 2. Normal P-P plot of regression standardized residual......................................57
Graph 3. Scatterplot .......................................................................................................58
vi
Chapter One: Introduction
1.
Background
1.1.
The Internet in Vietnam

It has been more than one decade since the Internet started to have been used in
Vietnam. Vietnam connected the world in 2000, the Internet users was a small figures,
just 0.3% of the population in 2000. However, the Internet is growing fast, much faster
than in any other Asian countries in 2011. Over the last ten years 2000-2010, Internet
usage has grown by 12.4 times in Vietnam. This is the highest level of penetration in
the Asian countries. After five years from 2000, this number was up to 12.8%; and
17.9% in 2007; 24.0% in 2008; and 25.7% of Vietnam population in 2009.
Impressively, este et al. (2012) suggest that a large number of Vietnamese Internet
users accounted for 30.8 million at the end of Feb 2012, equivalent to 34% of Vietnam
population. More and more people are online and in Vietnam, they spend a massive
amount of time on the Internet. There is a huge, targetable population of consumers
online. As to Feb 2012, 30.8 million Vietnamese people can be reached on the Internet,
with a strong growth every year. In addition, these are not just the teenagers, but also
more and more also their parents and in general, the household decision makers, an
interesting target audience for marketing activities. They are also increasingly
comfortable with making purchases online.
1.2.
Online shopping in Vietnam

The internet is changing the way consumers shop and buy goods and services,
and has rapidly evolved into a global phenomenon and even in Vietnam. Many
companies have started using the Internet with the aim of cutting marketing costs,
thereby reducing the price of their products and services in order to stay ahead in
highly competitive markets. Customers use the Internet not only to compare prices,
product features, after sale service facilities they will receive, but they can save time
and cost for buying products from a particular store. In 2010, every second Internet
user in Vietnam has already visited sites that offer online shopping, buy and sell
activities or auctions. Este et al. (2012) suggest that the most of customers purchasing
online is just a small piece of big potential e-commerce market and online shopping
activities are mainly common in the north and in big cities, whilst in smaller cities it is
not yet frequent. Hanoi is the undisputed leader in e-commerce with 60 per cent of
Hanoi net citizens using these sites.
To advance its e-commerce to improve businesses competitiveness thus
boosting the countrys industrialization and modernization, Vietnam government
approved a plan on e-commerce for the next 5 years 2011 2015 last year. This
decision helps concretize Vietnams commitments for international integration with
WTO, APEC and ASEM. Although e-commerce purchases in early stage market in
Vietnam, the high young generation population and great coming opportunities closer
promises the strongest growth in online shopping area. However, the major problem in
the area of online shopping is the low confidence in online payment systems. Este et al.
(2012) suggest that one of the key factor to explain for this is that people does not trust
in Internet shopping. Therefore, studying trust is considered as a vital key for
individuals or organizations to maintain and build customers trust so in Internet
shopping that the growth of e-commerce can be speeded up for the coming years in
Vietnam.
2.
Statement of purpose
This study aims to identify which ones of the four antecedents of trust (privacy
protection, security protection, perceived risk, and perceived benefits) have impacts on
customer trust in online in shopping in Vietnam.
3.
Research question
Is customers trust affected by perceptions about privacy, security protection,
perceptions about the risks and benefits during the transaction on the Internet.
4.
Significance of the study

In terms of theory, this study provides an empirical understanding role of factor
trust towards online shopping; And in terms of practice, this study presents strategic
implications and directions for the development of online shopping in Vietnam.
5.
Scope of the study

The study focuses on collecting people having experience in the online shopping
Ho Chi Minh City. The city is selected due to the highest Internet penetration rate. Este
et al. (2012) suggest that the Internet penetration rate is more than 50% the population
have used the Internet already in urban Vietnam. The city is higher than the average
rate of 50% of the population with the rate 62% in 2011.
6.
Structure of the study

The thesis consists of five chapters. Chapter 1 introduces an overview of the
background, statement of purpose, research question, the significance of the study, and
scope of the study. Chapter 2 reviews existing literature on trust, online customer trust,
and the four antecedents of trust. These literatures summarize briefly the knowledge of
recent studies, describes the conceptual model, and hypotheses. Chapter 3 presents who
participate in this study, instruments used to measure the research constructs, the
description of the samples, data collection procedures and data analysis. Chapter 4
describes characteristics of the sample. In addition, validity and reliability of measures
will be checked by coefficients of Cronbachs Alpha and EFA (Principle Axis
Factoring with Promax). Then testing the assumption of regression, evaluating
demographic variables impacts on customers trust, and testing hypotheses are

presented. Chapter 5 presents discussions on the research findings. Theoretical
contributions, practical implications, and limitations of the current research are also
discussed. Suggestions for future research will conclude this dissertation.
Chapter Two: Literature Review
1.
Trust in online shopping
1.1.
Definition of trust in e-commerce

Trust definition in Internet shopping is a quite complicated concept in e-
commerce field. Depending on different contexts, researchers offer different meanings.

As Table 2.1 shows below, trust is viewed as 1). A set of specific beliefs (Doney &
Cannon 1997; Ganesan 1994). 2). A general belief that another party can be trusted
(Gefen 2000; Hosmer 1995; Moorman et al. 1992) 3). Affect reflected in feelings of
confidence and security. 4). A combination of three elements mentioned above. Based
on trust objects, trust has been conceptualized as a specific and general belief. Some of
them describe the specific beliefs as antecedents to the general beliefs (Jarvenpaa and
Tractinsky, 1999; Mayer and Davis, 1999; Mayer et al., 1995; Jarvenpaa and
Tractinsky, 1999) or sometimes conceptualize the specific beliefs as antecedents to
trusting intentions (McKnight et al., 1998). The others conceptualize trust as general
beliefs in e-commerce contexts that leads to behavorial intentions (Gefen, 2000); as a
combination of intergrity and caring that leads to an increase in behavioral intentions to
vulnerability (Javenpaa and Tractinsky, 1999); as a specific belief dealing with
benevolence, competence, and intergrity that results in trusting intentions (McKnight et
al., 2002).
However, the distinction between trust as a set of specific and general belief is
primarly happened dealing with interpersonal trust in organizational settings
(McAllister, 1995; McKnight et al., 1998). However, this distinction is seldom occured
in economic transaction settings because the definition of trust is used in these contexts
is an extension of trust definition rather than the original definition of interpersional
trust (Hosmer, 1995; Williamson, 1985). Consequently, some researchers stated that
actual behavior in ongoing economics alliances is a proxy for trust, defined in that
context as confidence or an overall belief (Gulati, 1995). This study has adopted the
conceptualization of trust as a set of specific beliefs because it deals with going
economic relationships (Crosby et al., 1990; Doney and Cannon, 1997; Ganesan, 1994;
Schurr and Ozanne, 1985) and this set of specific beliefs is most widely used in the
literature. Therefore, Trust as a feeling (Rempel et al., 1985) has been previously
studied in the context of interpersonal relationships. It is arguably irrelevant to business
transaction. (see Table 2.1)
Table 2.1. Summary of prior conceptualizations of trust

Study
Trust Conceptualization
Trust Object
Anderson
Expectations about the
Business
and Narus
behavior of the other
relationships
(1990)
company.
Bustler
Two sub-constructs:
(1991)
1. Attitude affective trust
Organizational
Measures
Overall trust
Measure of overall
trust
2. Cognitive specific trust

Crosby et
Confidence that the trusted
Buyer-seller
Empirical: overall
al. (1990)
party will behave in the
relationships
trust, caring, integrity
interest of the customer.

Doney and
Perceived credibility
Buyer-seller
Honesty, caring,
Cannon
(integrity) and benevolence.
relationships
trustworthy
(1997)
Source: Gefen, David; Karahanna, Elena; Straub, Detmar W. (2003, p. 56-59)
Table 2.1. Summary of prior conceptualizations of trust (Cont.)

Study
Doney et
Willingness to rely and be
at. (1998)
dependable upon another.
Trust Object
Measures
Culture
Conceptual
Conceptual
This encompasses trust as a

set of beliefs (Fukuyama
1995; Larzelere and Huston
1980; Rotter 1971) and
willingness to behave
(Luhmann 1979; McAllister
1995)
Fukuyama
Expectation of regular,
Business
(1995)
honest, cooperative
relationships
behavior.
Gambetta
The subjective probability
(1988)
that the trusted party will
Conceptual
Conceptual
behave in a way that

warrants cooperation with
them.
Ganesan
Willingness to rely on a
Buyer-seller
Empirical:
(1994)
partner in whom one has
relationships
1. Credibility (ability
confidence based on belief
and
in that party's credibility
reliability/honesty)
(integrity and ability) and
2. Benevolence
benevolence.

Study
Gefen
Trust Object
Willingness to depend.
E-commerce
Empirical: overall
trust
E-commerce
Empirical: overall
(2000)
Gefen
Measures
(2000a)
trust
Gefen
Willingness to depend based Business
Empirical: a single
(2000b)
on beliefs in ability,
scale with items
relationships
benevolence, and integrity.
dealing with ability,

integrity, and
benevolence.
Gefen and
Willingness to depend based Business
Empirical: a single
Silver
on beliefs in ability,
scale with items
(1999)
benevolence, and integrity.
relationships
dealing with ability,

integrity, and
benevolence.
Giffin
Reliance on the
Literature
Conceptual: integrity,
(1967)
characteristics of another in
review
benevolence, and
a risky situation.
ability
Gulati
Expectations that alleviate
Business
(1995)
fears that the other party will relationships
Empirical: indirect
measurement
be opportunistic.
Hart and
Confidence about the
Business
Saunders
behavior and goodwill of
relationships
(1997)
another.
Conceptual

Study
Hosmer
(1995)
Trust Object
The expectation of ethical
Literature
behavior, related to the
review
Measures
Conceptual
willingness to rely on the

trusted party based on
optimistic expectations that
the trusted party will behave
in a morally correct manner.
Jarvenpaa
Willingness to be vulnerable Online student
Empirical: overall
et at.
based on expectations that
trust that is built
(1998)
the other party will behave
through beliefs in
appropriately even without
ability, benevolence,
monitoring.
and integrity
Jarvenpaa
Willingness to rely when
and
there is a vulnerability.
teams
E-commerce
Empirical: overall
trust combined with
Tractinsky
integrity, and caring.
(1999)
Jarvenpaa
A governance mechanism in
et at.
buyer-seller relationships.
E-commerce
Empirical: overall
trust combined with
(2000)
integrity, and caring.

Study
Trust Object
Korsgaard
Confidence in the goodwill
Interpersonal
et al.
of the leader, meaning
trust in
(1995)
honesty, sincerity, and being organizational
Measures
Single item
unbiased.
settings
Kumar
Belief in dependability and
Business
(1996)
honesty.
relationships
Kumar et
Honesty and benevolence.
Business
Empirical:
relationships
1. Trust in honesty
al. (1995a)
Conceptual
2. Trust in
benevolence
Separate from a
willingness to invest
construct.
Kumar et
Honesty and benevolence.
al. (1995b)
Business
Empirical:
relationships
1. Trust in honesty
2. Trust in
benevolence
Separate from a
willingness to invest
construct.
10

Study
Larzelere
Benevolence and honesty.
Trust Object
Measures
Interpersonal
Integrity and
and Huston
trust in close
benevolence
(1980)
relationships
Luhmann
Willingness to behave based
(1988)
on expectation about the
Social life
Conceptual
behavior of others when

considering the risk
involved.
Mayer and
Willingness to be
Interpersonal
Empirical: overall
Davis
vulnerable.
trust in
trust, which is
organizational
separate from
settings
trustworthiness that is
(1999)
defined as ability,
benevolence, and
integrity.
McAllister
Willingness to depend upon
Interpersonal
Empirical:
(1995)
another.
trust in
1. Cognitive-based
organizational
trust (ability, trust,
settings
monitor)
2. Affect-based trust
(share ideas and
feelings, emotional
investment)
11

Study
Trust Object
McKnight
Trusting beliefs dealing with Interpersonal
et al.
benevolence, competence,
trust in
(1998)
honesty, and predictability
organizational
that leads to a trusting
settings
Measures
Conceptual
intention.
McKnight
Based on McKnight et al.
et al.
(1998)
E-commerce
Empirical:
1. Trust beliefs
(2002)
dealing with
benevolence,
competence, and
integrity.
2. Resulting in
trusting intentions
measuring
willingness aspects to
interact with an evendor.
Mishra
Willingness to be vulnerable Interpersonal
(1996)
based on belief that the other trust in

party is competent, open,
organizational
concerned, and reliable.
settings
Conceptual
12

Study
Mishra and
Two definitions:
Trust Object
Measures
Interpersonal
Empirical:
Morrissedy 1. Integrity, character,
trust in
1. Integrity, character,
(1990)
ability of others.
organizational
ability of others.
2. Confidence and support
settings
2. Confidence and
support.
Moorman
Willingness to depend. It is
Business
Empirical: overall
et al.
both a belief about the other
relationships
trust
(1992)
party and a behavioral

intention.
Morgan
Willingness to depend on a
Business
Empirical: overall
and Hunt
party in whom one has
relationships
trust and integrity.
(1994)
confidence. Sam as
Online auctions
Empirical: one factor
Moorman et at. (192)

Pavlou and
Gefen
of being reliable,
(2002)
honest, and
trustworthy.
Ramaswam Faith that the trusted party
Interpersonal
Empirical: overall
i et al.
will continue to be
trust in
trust
(1997)
responsive.
organizational
settings
13

Study
Trust Object
Measures
Rempel et
Willingness to depend based Interpersonal
Empirical: overall
al. (1985)
on a generalized
trust in close
trust, benevolence,
expectation/confidence
relationships
predictability, and
about what others will do.

Rotter
The expectation that one's
(1971)
word or promise can be
honesty.
Social life
Conceptual
relied upon.
Rousseau
Willingness to be vulnerable Buyer-seller
Trust was
et al.
based on confidence in
manipulated in an
(1998)
positive expectations about
experiment. The
the intentions and behavior
manipulation check
will be fulfilled.
dealt with
relationships
trustworthiness
combined with
fairness,
dependability, and
openness.
Zaheer et
The expectation that an actor Buyer-seller
Empirical: fairness,
al. (1998)
will
non-opportunistic,
relationships
1. Fulfill its obligations
keep promises, and is
2. Be predictable
trustworthy.
3. Be fair and not

opportunistic
14

Study
Trust Object
Measures
Zaheer et
The expectation that an actor Buyer-seller
Empirical: fairness,
al. (1998)
will
non-opportunistic,
relationships
1. Fulfill its obligations
keep promises, and is
2. Be predictable
trustworthy.
3. Be fair and not

opportunistic
Zand
Trusting behavior is actions
Experiment
Trust was
(1972)
that increase one's
with business
manipulated in an
vulnerability.
executives
experiment.
Zucker
Set of expectations, an
Business
Conceptual
(1986)
implicit contract.
relationships

1.2.
The importance of trust in e-commerce

Trust plays such an important role between sell site and buy site, especially these
containing the element risk including interacting with an e-vendor (Reichheld and
Schefter 2000). It is ones belief that the other party will behave in a dependable (Kumar
et al., 1995a), ethical (Hosmer, 1995), and socially appropriate manner (Zucker, 1986).
Trust is also deal with fulfillment (Luhmann, 1979; Rotter, 1971). Lack of trust is one of
the most frequently cited reasons for consumers not shopping on the Internet (Lee and
Turban, 2001). Trust becomes a serious issue in Internet shopping because there is an
absence of proven guarantees. Jarvenpaa and Tractinsky (1999) and Reichheld and
Schefter (2000) suggested that online customers generally stay away from e-vendors who
they do not trust on.
15
2.
Trust antecedents identified in the literature

This study builds upon previous research by combining several trust antecedents in
order to provide insights to online firms conducting business in different parts of the
world. The model suggests that trust in Internet shopping is directly affected. The model
assumes that their cultural backgrounds influence consumers perceptions (see Table 1).
The results of this study will identify which factors having significant effects and having
an important role in the generation of customer trust in an online environment (e.g.,
McKnight et al., 2002; Lee and Turban, 2001). The literature provides considerable
evidence that a number of factors have strong predictive importance and are therefore
deserving of consideration in any examination of the construct. These factors include the
influence of perceived privacy, security protection, perceived risks and benefits (Lee and
Turban, 2001; Gefen, 2000).
2.1.
Perceived privacy and security protection

Lallmahamood (2007) define perceived security and privacy as users perception
of protection against security threats and control of their personal data information in an
online environment. On the whole, perceived security and privacy is about the self-belief
that a user has in the system to conclude a transaction securely and to maintain the
privacy of personal information (2007, p. 7).
Privacy protection is widely considered as one of the most important factors in
building e-trust (Hoffman et al. (1999); Jorgensen (2000); Shankar et al. (2002)). The
privacy issue is considered as the major concerns of the online shoppers (Egelman, Tsai,
Cranor and Acquisti, 2004). Customers cannot avoid being leaked out their private
information over the Internet due to risk in the transaction (Monsuwe et al., 2004).
Because of using web to carry out transactions, customers face security, encryption, and
transactional privacy issues (Grewal et al., 2004).
16
Security protection is a great concern to online customers when they make

transactions over the Internet. They concern whether the information they required to
enter on would be intercepted or stolen or not during the transmission on the Internet
(Koufaris, 2004). Riegelsberger and Sasse (2001) find that concerning about whether
information of credit cards gets intercepted and information of the transaction is correctly
transmitted.
Bierhoff and Vornefeld (2004) states that:
Although the Internet is a technical system with strict, built-in security measures, it
is managed, maintained, and used by humans and therefore will never be able as a
system to guarantee perfect security (p. 48).
Customers would be easier to trust if security is guaranteed. Web vendors have an
ability to provide a secure website; this would play such an important part in
implementation and success of shopping on Internet (Ruppel, Underwood-Queen and
Harrington, 2006). Furthermore, if a virtual store is not able to effectively demonstrate
its commitment to superior data security technologies, few consumers will feel
comfortable entrusting the virtual store with their sensitive information (Chen & Tan,
2004, p. 78).
However, consumers do not have enough ability and resources to make sure their
sensitive and personal information sent to the suppliers servers over the Internet would
be safe and secure during transactions (Monsuwe et al., 2004). Fowell (2000) finds that
consumers raising privacy as a concern invariably mentioned security as well. Therefore,
issues of network security, transactional privacy, and security become a paramount
concern (Grewal et al., 2004, p. 707). Lee and Turban (2001) points out that security and
privacy protection impacts trust in Internet shopping.
Security and privacy in online shopping have a positive association with trust in
Internet shopping (Monsuwe et al., 2004). A high level of security and privacy in online
shopping experience has a positive effect on consumer trust (Ilagan, Sheila de Villa,
2009).
17
H1. Privacy protection of a web has a positive effect on consumers trust in

Internet shopping.
H2. Security protection of a web has a positive effect on consumers trust in
Internet shopping.
2.2.
Perceived risks and benefits

Ko, Jung, Kim, and Shim (2004) defines perceived risk as the potential for loss in
pursuing a desired outcome when engaged in online shopping (section 1, para. 3). The
concept of risk involves both uncertainty (Lewis and Weigert, 1985) and vulnerability
(Barney and Hansen, 1994). The consumers perception of risk associated with the
transaction will tend to predominate in his/her decision to engage in a transaction
(Salam, Rao, & Pegels, 2003, p. 328).
Some researchers have the same finding the less perceived risks associated with
online buying, the more willingly consumers disclose personal information, and the more
trust a person has in the online store (Corritore et al., 2003; Jarvenpaa et al., 2000; Kim et
al., 2008; Olivero & Lunt, 2004; Salam et al., 2003; Teo & Liu, 2007; Van der Heijden et
al., 2003). Perceived risk has a negative effect on building e-trust (Chen and Tan, 2004).
Ilagan, Sheila de Villa (2009) shows that perceived risk is a significant predictor of trust
in Internet shopping.
H3. Perceived risks have a significant negative effect on consumers trust in
Internet shopping.
Kim, Ferrin, and Rao (2008) define perceived benefits as a consumers belief
about the extent to which he or she will become better off from the online transaction with
a certain Web site (p. 547). These benefits include convenience, time saving because of
finding information about a product within a short time frame and less time spent on
shopping, or having more products to choose. Chen and Tan (2004) note that consumer
trust can only be inspired if the risks associated with online purchases are reduced to a
level that is tolerable to consumers (p. 78). If there are people who stay away from
18
Internet shopping because of the risks, there are also people who engage in it because of
the benefits obtained.
H4. Perceived benefits have a positive effect on consumers trust in Internet
shopping.
Lee and Turbans (2001) propose the conceptual model for customers trust in
Internets shopping but it is modified to accommodate four antecedents of trust and fit the
purpose of the study. On the other hand, this study also examines whether demographic
variables make additional contributions to the prediction produced by the four antecedent
variables of trust.
The model suggests that trust in Internet shopping is directly affected general
perceptions about privacy protection, security protection of the web, and perceived risks
and benefits.
Privacy
Perceptions (PP)
Security
Protection (SP)
H1 (+)
H2 (+)
Customer Trust in
Internet Shopping
(CTIS)
H3 (-)
Perceived
Risks (PR)
Perceived
Benefits (PB)
H4 (+)
Demographics
(gender/age/ecudcation/income)
Figure 1. Conceptual model
19
Chapter Three: Methodology
1.
Participants
This study used convenience sampling and purposive sampling to recruit
Vietnamese students, white collar workers who had ever bought goods, services online
and used electronic system payments to pay for them in different districts in Ho Chi Minh
City. They had been choosen randomly to answer the questionnaires. The data was
collected from October to mid November 2012.
2.
Instruments
In order to gather the necessary information, survey questions were adopted from
previous researches and modified for this study. The self administered questionnaires
were divided into two sections including 36 questions that consist of 4 socio-demographic
questions and 32 questions using a 5-point Likert scale measuring the research constructs.
Part I includes 32 questions in term of the independent variables and the dependent
variable. The respondents were required to provide their rating on their perception using
a five-point Likert scale measurement that ranged from 1 = strongly disagree, 2 =
disagree, 3 = neutral, 4 = agree, and 5 = strongly agree . Part II is proposed to collect the
respondents demographic information such as gender, age, highest academic
qualification, average monthly income level.
General perceptions about privacy and security protection
General perceptions about privacy and security protection have the same of six
items used to measure these two scales adopted by Kim et al. (2008) (see Table 3.1). Kim
et al. (2008) states that these scales reached the high level of internal consistency with
coefficient alpha .90 for general perceptions about privacy and .86 for security protection.
20
Table 3.1. Privacy protection and security protection scales

Items Privacy protection (Cronbach's Alpha = 0.900; N of Items = 4)
PP1
PP2
PP3
PP4
PP5
PP6
I am concerned that unauthorized persons (e.g., hackers) have access to my

personal information.
I am concerned that Web vendors will share my personal information with
other entities without my authorization.
I am concerned about the privacy of my personal information during a
transaction.
I am concerned that Web sites are collecting too much personal information.
I am concerned that Web vendors will use my personal information for other
purposes without my authorization.
I am concerned that Web vendors will sell my personal information to others
without my permission.
Items Security protection (Cronbach's Alpha = 0.860; N of Items = 6)

SP1
In general, providing credit card information online is riskier than providing it

over the phone to an offline vendor.
Internet merchants usually ensure that transactional information is protected
SP2
from accidentally being altered or destroyed during a transmission on the

Internet.
SP3
I feel secure about the electronic payment system of Internet merchants.
SP4
Internet merchants implement security measures to protect Internet shoppers.
SP5
I am willing to use a credit card to make purchases online.
SP6
I feel safe making transactions online.

Perceived risks and benefits
Teo and Liu (2007) suggest using four items to measure perceived risks while six
items are used for perceived benefits adopted by Chen et al. (2002). However, the six
items are modified to fit Vietnam context. For instance, the statement: I find the virtual
21
store very useful in my shopping or information seeking was transformed to I find the
virtual store very useful in my shopping. and I find the virtual store very useful in
information seeking. (see Table 3.2). This transformation makes the number of items
increased by twelve items from six items (see Table 3.2). Teo and Liu (2007) state that
four items used to measure perceived risks have a composite reliability .92 and Chen et al.
(2002) support the construct using to measure the perceived benefits scale by giving out
the composite reliability .84.
Table 3.2. Perceived risk and perceived benefits scales

Items Perceived risks (Cronbach's Alpha = 0.920 ; N of Items = 4)
PR1
PR2
PR3
PR4
I believe that the risk of purchasing online is very high.

There is a high probability of losing a great deal by purchasing from Internet
merchants.
There is a great uncertainty associated with purchasing from Internet
merchants.
Overall, I would label the option of purchasing from Internet merchants as
something negative.
Items Perceived benefits (Cronbach's Alpha = 0.840; N of Items = 12)

PB1
PB2
PB3
PB4
PB5
Using the virtual store enables me to accomplish shopping more quickly than
traditional stores.
Using the virtual store enables me to accomplish information seeking more
quickly than traditional stores.
Using the virtual store improves my performance in shopping (e.g., save
money)
Using the virtual store improves my performance in information seeking (e.g.,
save time)
Using the virtual store increases my productivity in shopping (e.g., make
purchase decisions)
22
Table 3.2. Perceived risk and perceived benefits scales (Cont.)

Items Perceived benefits (Cronbach's Alpha = 0.840; N of Items = 12)
PB6
PB7
PB8
PB9
Using the virtual store increases my productivity in information seeking (e.g.,

find product information within the shortest time frame)
Using the virtual store enhances my effectiveness in shopping (e.g., get the best
deal)
Using the virtual store enhances my effectiveness information seeking (e.g.,
find the most important information about a product.).
Using the virtual store makes it easier for me to shop.
PB10 Using the virtual store makes it easier for me to find information.
PB11 I find the virtual store very useful in my shopping.
PB12 I find the virtual store very useful in information seeking.
Customer trust in Internet shopping
Four items adopted by Lee and Turban (2001) are used to measure customer trust
in Internet shopping based on high coefficient alpha .70 (see Table 3.3).
Table 3.3. Customer trust scale

Customer trust in internet shopping (Cronbach's Alpha = 0.700; N of
Items = 4)
In
general, I cannot rely on Internet vendors to keep the promises that they
CTIS1
make.
CTIS2 Internet shopping cannot be trusted, there are just too many uncertainties.
CTIS3 Anyone trusting Internet shopping is asking for trouble.
Items
CTIS4 Internet shopping is unreliable.
23
3.
Samples and data collection procedures

The research comprised two phases, a pilot study and a main survey, was
conducted in Ho Chi Minh City. The pilot survey was undertaken in two stages,
qualitative and quantitative stage. Four respondents were recruitted to participate in indepth interviews to modified and refine the scale items. And then a quantitative pilot
survey was undertaken with a convenience sample. Characteristics of respondents were
gender, age, education level, and monthly average income. This study targeted
respondents age from 17 to 45. Data collectors distributed the questionnaire to customers
directly and via their e-mail addresses with instruction of how to complete the
questionnaire. In order to know who have ever bought good or services online and paid
for them by ATM, credit card, or a digital wallet, data collectors used filter question. In
the other hand, to prevent respondent to choose the number that indicates the level of their
agreement or disagreement, the collector also emphasized that online shoppers could
withdraw from this questionnaire at any time. After completing the questionnaire, the
collector check whether there was a response bias and the questions were answered
without reading. The purpose of this study was to validate measures and to test the
relationship between the four antecedents and customer trust in online shopping.
Statistical package for the social sciences version 19 was used to analyze the data. The
number of questions used to get respondents ideas was 32 not including 4 ones for
demographic variables. Based on this, the minimum size of the sample the study needed
was 160. However, to improve validity and reliability of this study, collectors made
decision to increase the sample size to 250. However, 34 questionnaires were unable to
use for due the high response rates of bias. Hence, the final sample size was 216. See
Table 4.1 for the sample characteristics.
4.
Data analysis
In terms of data analysis, a descriptive analysis was innitially performed to provide
information pertaining to the demographics of the respondents. Testing for reliability was
24
checked first using reliability coefficients Cronbachs Alpha. Next, the factor analysis
was run to show an association between a number of items and constructs. After that, an
associative analysis in the form of a correlation analysis was conducted to test for
existence of multi-co linearity. The study continued to test regression assumptions before
using OLS method to run a regression. Hierarchical multiple linear regression was used to
check whether demographic variables (gender, age, education, and income) contribute
anything to the prediction produced by the block of trust antecedent variables in the next
step. Subsequently, multiple regression analyses were performed to test the relationship
between the whole set of predictors and the dependent variables under the current study.
Lastly, hypothesis testing continued to conduct in order to determine whether hypotheses
proposed based upon a review from existing literature were supported or not.
25
Chapter Four: Results
1.
Characteristics of the sample population

The data set used for this study includes 216 (N = 216) completed questionnaires,
accounted for 86.40%, in total 250 ones delivered to respondents who agreed to reply the
questionnaires to data collectors. The respondents required to answer 36 questions divided
into two sections. Section 1 consisted of 32 questions measuring respondents perception
on Internet shopping. Four questions were used for collecting personal information of the
respondents (see Appendix A).
Gender. Of the 216 respondents, there were 138 females, equivalent to 63.9%. The
rest were 78 male respondents, equivalent to 36.1% (see Table 1).
Age. Most respondents reported ages belonged to the range 17 25 years,
accounted for 48.6% and 46.8% for the range 26 35 years while the fewest number of
respondents were 36 45 years old (4.6 %) (see Table 4.1).
Education. More than nine tenth of the respondents (91.2%, n = 197) had
bachelor degrees. In contrast, the percent of the rest who had master degree, high school
and associate degree is 5.1% (n = 11), 2.3% (n = 5), and 0.9% (n = 2) prospectively. No
response was just 0.5% (n = 1) (see Table 4.1).
Income. Out of two respondents (0.9%) who did not report their income, 44.9% (n
= 97) earned between 4 8 million Dong monthly average income, 23.1 % (n = 50)
belonged the range 9 13 million Dong per month, 12.5% (n = 27) of those who had
earned less than or equal four million Dong per month. It was followed by 10.6 % (n =
23) who earned between 14 21 million Dong. The total percent of the others was 7.9 %
(n = 17) belonged to the two ranges 22 35 and 36 more million Dong per month (see
Table 4.1).
Based on the general characteristics of respondents, they were found that
Vietnamese respondents were mostly female who already got bachelor degree. They
26
distributed in two both groups 17 25 and 26 35 years olds with monthly average
income 4 8 million Dong (see Table 4.1).
Table 4.1. Distribution of respondents based on demographic characteristics

Male or Female
Frequency
Valid
Female
Percent
Valid
Cumulative
Percent
Percent
138
63.9
63.9
63.9
Male
78
36.1
36.1
100
Total
216
100
100
From 17 to 25
105
48.6
48.6
48.6
From 26 to 35
101
46.8
46.8
95.4
From 36 to 45
10
4.6
4.6
100
216
100
100
2.3
2.3
2.3
197
91.2
91.6
94
11
5.1
5.1
99.1
0.9
0.9
100
215
99.5
100
0.5
216
100
A range of age
Valid
Total
Highest academic qualification
Valid
High school
Bachelor
Master degree
Associate degree
Total
No
answer
Total
27
Table 4.1. Distribution of respondents based on demographic characteristics

(Cont.)
Highest academic qualification
Monthly average income
Valid
4 million VND
27
12.5
12.6
12.6
4 8 million VND
97
44.9
45.3
57.9
9 13 million VND
50
23.1
23.4
81.3
14 21 million VND
23
10.6
10.7
92.1
22 35 million VND
4.2
4.2
96.3
36 million VND
3.7
3.7
100
214
99.1
100
0.9
216
100
Total
No
answer
Total
2.
Reliability of measurement instruments
2.1.
Validating measures
For the perceptions about privacy protection, the six items (items one through six,
see Table 4.2) used to measure for the perceptions about privacy protection had a
Cronbachs Alpha of .885, .642 for security protection (items 1 through 6, see Table 4.2),
.584 for perceived risk (items 1 through 4, see Table 4.2), .856 for perceived benefits
(items 1 through 12, see Table 4.2), and 0.743 for customer trust in Internet shopping
(items 1 through 4, see Table 4.2),
The Cronbachs Alpha of privacy protection, security protection, perceived
benefits, and customer trust in Internet shopping were greater than .600. The only
coefficient of Cronbachs alpha of perceived risk was lower than .600. Their items all
were kept for four constructs accepting item one of the construct security protection (item
one, see Table 4.2) having a low corrected item-total correlation. As it was deleted, the
28
Cronbachs Alpha of the construct security protection would increase and reached 0.704.
Meanwhile, the Cronbachs Alpha of perceived risks was quite low. As one of four items
(see Table 4.2) was delleted, the Alpha could not increase higher. However, these items
were kept for further analysis.
Table 4.2. Item-Total Statistics
Scale
Items
Code
Mean if
Item
Deleted
Scale
Variance
Corrected
Cronbach's
if
Item-
Alpha if
Item
Total
Item
Deleted
Correlation
Deleted
Privacy Protection (Cronbach's Alpha = .885; N of Items = 6)

1. I am concerned that unauthorized persons (e.g.,
hackers) have access to my personal information.
PP1
19.206
27.826
0.563
0.887
PP2
19.318
26.603
0.637
0.876
PP3
19.444
23.234
0.834
0.843
PP4
19.621
25.044
0.728
0.862
PP5
19.519
25.105
0.732
0.861
PP6
19.435
24.951
0.707
0.866
2. I am concerned that Web vendors will share my

personal information with other entities without my
authorization.
3. I am concerned about the privacy of my personal
information during a transaction.
4. I am concerned that Web sites are collecting too
much personal information.
5. I am concerned that Web vendors will use my
personal information for other purposes without my
authorization.
6. I am concerned that Web vendors will sell my
personal
information
to
others
without
my
permission.
29
Table 4.2. Item-Total Statistics (Cont.)

Scale
Items
Code
Mean if
Item
Deleted
Scale
Variance
if
Item
Deleted
Corrected
Cronbach's
Item-
Alpha if
Total
Item
Correlation
Deleted
Security Protection (Cronbach's Alpha = .642; N of Items = 6)

1. In general, providing credit card information
online is riskier than providing it over the phone to
SP1
14.773
12.815
0.128
0.704
SP2
14.351
11.534
0.343
0.612
SP3
14.749
11.227
0.528
0.546
SP4
14.431
11.923
0.359
0.604
SP5
14.474
11.422
0.438
0.575
SP6
14.829
11.295
0.554
0.541
PR1
9.754
5.348
0.285
0.583
PR2
9.403
5.727
0.286
0.572
PR3
8.972
4.923
0.513
0.397
PR4
8.91
5.301
0.402
0.485
an offline vendor.
2.
Internet
transactional
merchants
information
usually
is
ensure
protected
that
from
accidentally being altered or destroyed during a

transmission on the Internet.
3. I feel secure about the electronic payment system
of Internet merchants.
4. Internet merchants implement security measures
to protect Internet shoppers.
5. I am willing to use a credit card to make
purchases online.
6. I feel safe making transactions online.
Perceived Risks (Cronbach's Alpha = .584; N of Items = 4)

1. I believe that the risk of purchasing online is very
high.
2. There is a high probability of losing a great deal
by purchasing from Internet merchants.
3. There is a great uncertainty associated with
purchasing from Internet merchants.
4. Overall, I would label the option of purchasing
from Internet merchants as something negative.
30

Scale
Items
Code
Mean if
Item
Deleted
Scale
Variance
if
Item
Deleted
Corrected
Cronbach's
Item-
Alpha if
Total
Item
Correlation
Deleted
Perceived benefits (Cronbach's Alpha = .856; N of Items = 12)

1. Using the virtual store enables me to accomplish
shopping more quickly than traditional stores.
PB01
22.374
44.827
0.3
0.865
PB02
22.864
43.62
0.624
0.84
PB03
21.949
42.875
0.487
0.848
PB04
22.64
43.668
0.536
0.844
PB05
22.126
43.688
0.442
0.852
PB06
22.519
43.594
0.587
0.842
PB07
21.621
44.603
0.398
0.854
PB08
22.407
41.566
0.64
0.837
PB09
22.416
41.446
0.731
0.831
PB10
22.673
42.550
0.676
0.836
PB11
22.21
44.007
0.499
0.847
PB12
22.673
43.902
0.605
0.841

information seeking more quickly than traditional
stores.
3. Using the virtual store improves my performance
in shopping (e.g., save money).
Perceived benefits (Cronbach's Alpha = .856; N of Items = 12)

4. Using the virtual store improves my performance
in information seeking (e.g., save time).
5. Using the virtual store increases my productivity
in shopping (e.g., make purchase decisions).
6. Using the virtual store increases my productivity
in
information
seeking
(e.g.,
find
product
information within the shortest time frame).

7. Using the virtual store enhances my effectiveness
in shopping (e.g., get the best deal).
information seeking (e.g., find the most important
information about a product.)
9. Using the virtual store makes it easier for me to
shop.
find information.
11. I find the virtual store very useful in my
shopping.
12. I find the virtual store very useful in information
seeking.
31

Scale
Items
Code
Mean if
Scale
Variance
Item
Deleted
if
Item
Deleted
Corrected
Cronbach's
Item-
Alpha if
Total
Item
Correlation
Deleted
Customer trust in internet shopping (Cronbach's Alpha = .743; N of Items = 4)

1. In general, I cannot rely on Internet vendors to
keep the promises that they make.
2. Internet shopping cannot be trusted, there are just
too many uncertainties.
3. Anyone trusting Internet shopping is asking for
trouble.
4. Internet shopping is unreliable.
2.2.
CTIS1
8.755
5.181
0.579
0.66
CTIS2
8.736
5.191
0.549
0.677
CTIS3
8.301
5.402
0.483
0.714
CTIS4
8.222
5.271
0.535
0.685
Exploratory factor analysis

Constructs all were analysed at the same time using Exploratory Factor Analysis
(EFA) to make sure all of them were suitable for applying in Vietnam context. EFA
explored research concept, omitted disqualified observations, and created homogeneous
measures. During the process of running EFA, this study met the following requirements:
Factor loading () .707 (Nguyen, 2011) and iA iB .30. However, in
practice research, is greater than or equal .50 is acceptable. An item with the highest
factor loading would be belonged to the factor containing it. Whatever an item does not
meet, the requirement would be omitted out of the construct. An item with the highest
factor loading would be belonged to the factor containing it.
TVE (Total Variance Extracted) .50 and Eigenvalue must be greater than 1, the
measure is accepted.
This study used EFA with Principal Axis Factoring and Promax was conducted to
assess the underlying structure for the 32 items on the questionnaire. Six factors were
requested, because the items were designed to index six constructs: privacy protection,
security protection, perceived risks, perceived benefits, and customer trust. After rotation,
32
the first factor accounted for 19.55% of the variance, the second factor accounted for
15.73%, the third factor accounted for 10.1%, the fourth factor accounted for 6.47%, and
the fifth factor accounted for 3.65% (see Table 4.3). Table 4.4 displays the items and
factor loadings for the rotated factors, with loadings less than .50 omitted to improve
clarity.
After checking, the requirement mentioned above, twelve items were taken out of
three constructs. There were five factors explored, all items with corrected item-total
correlation were higher than .5, coefficient of Cronbachs alpha were greater than .7 (see
Table 4.5). The first factor privacy protection loads most strongly on the first six items,
with loadings in the first column. The second factor, named perceived benefits, was
composed of the five items with loadings in column 2 of the table. The third factor,
named customer trust, comprises the four items with loadings in the third column. The
fourth factor, named security protection, was composed of the three items with loadings
in column 4 of the table. The last one, named perceived risk, loads most strongly on the
two items in column 5.
These twenty items of five factors with loading were greater than .5 and TVE
explained 55.51% (> 50%) of variance at Eigenvalue 1.13. The number of factors
extracted was very suitable with the initial literatures.
The EFA results showed that the dependent variable customer trust was still
influenced by four independent variables (see Figure 1). There was no change in items of
the construct. Therefore, research concept achieved particular values, the measures
qualified convergent validity, and EFA model was completely suitable.
However, the number of items of each construct was already changed. Seven items
of PB variable were taken out of its scale. It remained five items for PB including PB02,
PB08, PB09, PB10, and PB12. The items of SP scale were reduced from 6 to 3 remaining
SP3, SP5, and SP6), 2 items in total 4 ones were kept for PR scale (PR3 and PR4).
Meanwhile, there was no change in the number of items of CTIS (CTIS1 through CTIS4)
33
and PP (PP1 through PP6). After deleting these twelve items, the final model had a quite
good fit to the data.
Table 4.3. Total Variance Explained
Rotation
Initial Eigenvalues
Extraction Sums of Squared
Sums of
Loadings
Squared
Factor
Loadingsa
Total
% of
Cumulative
Variance
Total
% of
Cumulative
Variance
Total
4.343
21.717
21.717
3.910
19.550
19.550
3.644
3.515
17.576
39.293
3.147
15.734
35.284
3.123
2.472
12.358
51.650
2.020
10.101
45.384
2.496
1.771
8.853
60.503
1.295
6.473
51.857
1.637
1.131
5.654
66.157
.730
3.650
55.507
1.750
.891
4.455
70.612
20
.180
.898
100.000
Extraction Method: Principal Axis Factoring.

a. When factors are correlated, sums of squared loadings cannot be added to obtain a
total variance.
34
Table 4.4. Pattern Matrixa

Factor
1
PP3
.909
PP5
.810
PP4
.790
PP6
.757
PP2
.632
PP1
.575
PB10
.886
PB12
.819
PB08
.783
PB09
.763
PB02
.611
CTIS4
.712
CTIS3
.693
CTIS1
.646
CTIS2
.573
SP5
.757
SP6
.722
SP3
.564
PR3
.930
PR4
.519
Extraction Method: Principal Axis Factoring.

Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
35
Table 4.5. Item-Total Statistics

Scale
Items
Code
Mean if
Item
Deleted
Scale
Variance
if
Item
Deleted
Corrected
Cronbach's
Item-
Alpha if
Total
Item
Correlation
Deleted
Privacy Protection (Cronbach's Alpha = 0.885; N of Items = 6)

1. I am concerned that unauthorized persons (e.g.,
hackers) have access to my personal information.
PP1
14.773
12.815
0.128
0.704
PP2
14.351
11.534
0.343
0.612
PP3
14.749
11.227
0.528
0.546
PP4
14.431
11.923
0.359
0.604
PP5
14.474
11.422
0.438
0.575
PP6
14.829
11.295
0.554
0.541
2. I am concerned that Web vendors will share my

personal information with other entities without my
authorization.
3. I am concerned about the privacy of my personal
information during a transaction.
4. I am concerned that Web sites are collecting too
much personal information.
5. I am concerned that Web vendors will use my
personal information for other purposes without my
authorization.
6. I am concerned that Web vendors will sell my
personal
information
to
others
without
my
permission.
Security Protection (Cronbach's Alpha = 0.731; N of Items = 3)
3. I feel secure about the electronic payment system
of Internet merchants.
5. I am willing to use a credit card to make
purchases online.
6. I feel safe making transactions online.
SP3
5.737
3.148
0.502
0.704
SP5
5.451
2.758
0.571
0.624
SP6
5.817
3.037
0.594
0.600
PR3
3.427
1.085
0.543
3.427
PR4
3.376
1.047
0.543
3.376
Perceived Risks (Cronbach's Alpha = 0.704; N of Items = 2)

3. There is a great uncertainty associated with
purchasing from Internet merchants.
4. Overall, I would label the option of purchasing
from Internet merchants as something negative.
36

Scale
Items
Code
Mean if
Item
Deleted
Scale
Variance
if
Item
Deleted
Corrected
Cronbach's
Item-
Alpha if
Total
Item
Correlation
Deleted
Perceived Benefits (Cronbach's Alpha = 0.872; N of Items = 5)

information seeking more quickly than traditional
PB02
7.486
9.33
0.598
0.868
PB08
7.032
7.929
0.712
0.844
PB09
7.046
8.407
0.706
0.843
PB10
7.301
8.323
0.787
0.824
PB12
7.301
8.965
0.711
0.844
stores.
information seeking (e.g.,find the most important
information about a product.).
shop.
find information.
12. I find the virtual store very useful in information
seeking.
Customer Trust in Internet Shopping (Cronbach's Alpha = 0.743; N of Items = 4)

1. In general, I cannot rely on Internet vendors to
keep the promises that they make.
2. Internet shopping cannot be trusted, there are just
too many uncertainties.
3. Anyone trusting Internet shopping is asking for
trouble.
4. Internet shopping is unreliable.
3.
Tests of regression assumptions
3.1.
Test of multicollinearity
CTIS1
8.755
5.181
0.579
0.66
CTIS2
8.736
5.191
0.549
0.677
CTIS3
8.301
5.402
0.483
0.714
CTIS4
8.222
5.271
0.535
0.685
In order to check the correlations among the predictor variables prior to running
the multiple linear regression, Variance Inflation Factor (VIF) of an independent variable
is greater than 10; the variable does not have statistical significance to explain variance of
Y in the model Multiple Linear Regression (Hair & ctg 2006). However, VIFs of four
37
independent variables were lower than 10 (see Table 4.8), it meant that the
multicollinearity did not happen among the predictor variables or there were no
multicollinearity between the independent variables.
3.2.
Test of normality of residual & heteroscedasticity

Before running multiple linear regressions, the normality of residual and
heteroscedasticity need to be tested in advance.

Based on the result of Graph 1 and Graph 2 graphs (see Appendix B), the
regression standardized residual (Graph 1) and Normal P-P plot of regression
standardized residual (Graph 2) indicate the residuals are normally distributed, the
residual is relatively uncorrelated with the linear combination of predictors, and the
variances of the residuals are constant. Regression standardized predicted values (Graph
3) are distributed randomly. Therefore, the data meet the assumptions for running
multiple liear regressions.
4.
Evaluating demographic variables impacts on customers trust

Hierarchical multiple regression was used to check whether demographic variables
(gender, age, education, and income) contribute anything to the prediction produced by
the block of trust antecedent variables. The block of four antecedents of trust was entered
first and then one of demographic variables was added to the model to see if it made an
additional contribution to the outcome of prediction
The results showed that there was no significantly additional contribution to the
predicted outcome to CTIS in term of gender (R2 change = .001, p = .617); in terms of
age (R2 change = .001, p = .588); in terms of education (R2 change = .003, p = .406); in
terms of income (R2 change = .000, p = .726)
In general, demographic variables (gender, age, education, and income) didnt
make any significantly additional contribution to the outcome of prediction to CTIS.
38
5.
Hypotheses testing
The research question asked whether customers trust affected by perceptions
about privacy, security protection, perceptions about the benefits, and significantly
affected by perceptions about the risks during the transaction on the Internet.
The model summary table showed that the multiple correlation coefficient (R),
using all the predictors simultaneously, was equal to 21.7 percent (R2 = .217) and the
adjusted R2 was equal to 20.2 percent (see Table 4.6) reflecting 20.2 percent of variability
in CTIS that could be predicted from PP, SP, PB, PP combined.
Table 4.6. Model Summary
Change Statistics
Std. Error
of the
R Square
F
df1 df2
Estimate
Change
Change
1 .466a
0.217
0.202
2.60159
0.217
14.505
4 209
a. Predictors: (Constant), PerceivedRisks , SecurityProtection , PrivacyProtection ,
PerceivedBenefits
Model
R
Square
Adjusted
R Square
Sig. F
Change
0.000
The ANOVA table (see Table 4.7) shows that F = 14.505 and is significant. This
indicates that the combination of the predictors significantly predicts CTIS. Furthermore,
P value (see Table 4.7) was lower than .001; this study could conclude that the model was
significantly good at building the outcome of customers trust in Internet shopping.
Table 4.7. ANOVAb
Model
1
Sum of Squares
Regression
df
Mean Square
392.684
98.171
Residual
1414.573
209
6.768
Total
1807.257
213
F
14.505
Sig.
.000a
a. Predictors: (Constant), PerceivedRisks , SecurityProtection , PrivacyProtection , PerceivedBenefits

b. Dependent Variable: CustomerTrust
H1. Privacy protection of a web has a positive effect on consumers trust in

Internet shopping.
Looking at Table 4.8, the p-value on the row marked privacy protection is .004,
which means the p-values less than 0.05. Therefore, the relationship between privacy
39
protection and CTIS was statistically significant. The coefficient of privacy protection (
= .180) also indicated that privacy protection appeared to have a positive relationship with
CTIS. That meant the hypothesis one supported.
H2. Security protection of a web has a positive effect on consumers trust in
Internet shopping.
The Table 4.8 showed that security protection of a web ( = .108, p > 0.05) didnt
has a positive effect on consumers trust in Internet shopping. Therefore, hypothesis two
was not supported.
H3. Perceived risks have a significantly negative one with consumers trust in
Internet shopping.
The result of running regression (see Table 4.8) showed that perceived risks ( = .379, p < 0.05) had a significantly negative effect on consumers trust in Internet
shopping. So, hypothesis three was supported.
H4. Perceived benefits have a positive effect on consumers trust in Internet
shopping.
Based on the result of Table 4.8, perceived benefits ( = .057, p > 0.05) (see Table
4.8) didnt have a significantly positive effect on consumers trust in Internet shopping.
Consequently, hypothesis four was not supported.
Table 4.8. Coefficients a
Unstandardized Standardized
Model
Coefficients
B
1 (Constant)
Std.
Error
12.822
1.175
PrivacyProtection
.106
.037
PerceivedBenefits
.047
SecurityProtection
PerceivedRisks
Coefficients
Sig.
Beta
Zeroorder
Partial
Statistics
Part
Tolerance
VIF
10.916
.000
.180
2.895
.004
.243
.196
.177
.972
1.028
.051
.057
.923
.357
.091
.064
.056
.970
1.031
.127
.073
.108
1.747
.082
.121
.120
.107
.974
1.027
-.606
.099
-.379
-6.093
.000
-.410
-.388 -.373
.970
1.031
a. Dependent Variable: CustomerTrust
Collinearity
Correlations
40
6.
Summary of the results

An Enter regression analysis showed that for both privacy protection and perceived
risks contributes significantly to customer trust in Internet shopping. In contrast,

perceived benefits and security protection didnt have significant impacts on customer
trust in Internet shopping from the whole set of predictors.
The beta weights showed that CTIS has the strongest negative relation to perceived
risks ( = -.379, p = .000 < .050), a strong positive relation to privacy protection ( =
.180, p = .004 < .050), and no statistically positive relations to security protection ( =
.108, p = .082 > .050) and perceived benefits ( = .057, p = .357 > .050). In general,
perceived risks and privacy protection were the two significant predictors of CTIS. Of
which, perceived risk is the strongest factor affecting decisions to shop online, but risks
are partially ameliorated by security protection and perceived benefits.
Results
Table 4.9. Results of the testing hypotheses
Research question: The question asked whether customers trust affected by
perceptions about privacy, security protection, perceptions about the risks and benefits
during the transaction on the Internet.
Hypothesis 1: Privacy protection of a web has a positive effect on
consumers trust in Internet shopping.
Hypothesis 2: Security protection of a web has a positive effect on
Hypothesis 3: Perceived risks have a significant negative one with
Hypothesis 4: Perceived benefits have a positive effect on
41
Supported
Not supported
Supported
Not supported
Privacy
Perceptions (PP)
Security
Protection (SP)
Perceived
Risks (PR)
.180***
.108
Customer Trust in
Internet Shopping
(CTIS) (R2 = .217)
-.379***
.057
Perceived
Benefits (PB)
Demographics
(gender/age/education/income)
Siginificant Path (***: p < .01)
Non-significant Path (p > .05)
Figure 2. Results of testing the conceptual model
42
Chapter Five: Discussion
1.
Findings
There has been little doubt that what factors have significant effects on customer
trust in online shopping at the beginning of e-commerce development in Vietnam. The

present study addresses which factors have contributed significantly to the formation of
customer trust. Comparisons among different demographic groups of consumers are also
investigated. The analysis is based on a sample of 216 online shoppers in the university of
Economics Ho Chi Minh and private companies in Ho Chi Minh City. The results show
that the independent variables explain 20.2 % of variance (see Table 4.8) in CTIS. Two of
the four factors influencing customer trust in online shopping are perceived risk and
privacy protection. Not only do they play such main predictors to CTIS, but they also
have significantly negative and positive impacts, respectively. Of which, the strongest
predictor to CTIS is perceived risk ( = -.379, p = .000 < .050). Furthermore, it (zero
order coefficient = -.410 < 0) covers relationship between CTIS and security protection,
perceived benefits, and privacy protection. It means that whenever researchers examine
which factors have impact on the formation of CTIS in Vietnam, they cannot but add the
predictor to conceptual model. In contrast, security protection and perceived benefits have
weak correlations with CTIS and they also have impacts on CTIS, but a lesser degree. It is
argued that, in a developing country like Vietnam, people tend to concern risk issues
rather than benefits in the context customers are not familiar with purchasing goods and
serverces online.
Consitent with results found in previous reasearches (Hoffman et al., 1999;
Jorgensen, 2000; Shankar et al., 2002), online shoppers are afraid of being leaked out
their privacy information (Monsuwe et al., 2004; Grewal et al., 2004). It plays such the
second strongest strongest predictor ( = .180, p = .004 < .050) affecting CTIS in
conceptual model. However, it is quite supprised that customers concerns privacy
protection rather than security protection. Online shoppers dont concern too much about
43
the information they required to enter such as information of credit cards, and information
of the transaction which might be intercepted or stolen (Koufaris, 2004; Riegelsberger
and Sasse, 2001).
The findings in the multi-group analysis also indicate that what gender customers
are, how old customers are, whatever academic qualifications customers have acquired,
and how much customers earn per month none of them make significantly additional
contribution to the outcome of prediction to CTIS. The findings of this study disagree
with those found in Monsuwe et al. (2004) where gender, age, education, and income are
correlated with customer trust.
2.
Implications
These findings suggest important practical implications for planning marketing
strategies. Traditional marketing tools such as price promotions, brand advertisements

will not be efficient for converting Internet browsers into real buyers. Instead, perceived
risk should be reduced and privacy protection enhanced. Online shoppers are willing to
purchase a product or service for online merchants that are perceived low risk and high
privacy protection. (e.g., online vendors try to convey customers that their personal
information sent to suppliers over the internet will be safe and secure during
transactions.). Online vendors try to convey customers that their personal information sent
to suppliers over the internet will be safe and secure during transactions.
The findings also indicate that benefits and security protection of online shopping
(e.g., convenience, time saving, more options, secure of transaction information and credit
information) dont ameliorate perceived risk and privacy protection. So, avoiding
advertising them to online shoppers helps businesses save costs and allocate scarce
resources efficiently.
In sum, marketing strategies focusing on reducing perceived risk and enhancing
privacy protection may be more appropriate in persuading online customers.
44
3.
Conclusion
In this study, Principle Axis Factoring with Promax methods are used to validate
measures help the study refine the supposed research model and increase knowledge of
the four antecedents of trust predicting customers trust response. The model of trust has
both practical and theoretical value in Vietnam context. It not only provides an increased
insight into the nature of trust and provides a refined understanding of the predictors, but
it also provides efficient marketing tools to push up online businesses.
4.
Limitations and directions for future research

This study has a number of limitations metioned as follows.
Firstly, the conceptual model just considers four antecedents of trust in Lee and
Turbans (2001) proposed model for CTIS and four demographic variables without
adding other controller variables such as online experience, average years of working
experience, etc.
Secondly, demographic variables (gender, age, education, and income) were
investigated, and no significantly additional contribution to the outcome of prediction to
CTIS. However, these variables are necessary for Vietnamese online shoppers. Therefore,
they should be examined in future research.
Thirdly, this study was implemented in Ho Chi Minh City, the highest internet
penetration zone in Vietnam; Consumers in other provinces may exhibit different
concerns toward trust in online shopping. Expanding areas to collect data will be possible
to conduct in future research to generalize findings.
Fourthly, the measurement of perceived risk has Cronbachs alpha lower than .600
(see Table 4.2). Whenever researchers do on the same object, they need to notice this
point to improve the validity and reliability.
Finally, this study has not found out suitable reasons to explain why security
protection and perceived benefits were not supported. Therefore, to find reasons to
explain it will be able to conduct in future researches.
45
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Appendix A
CLIENT SURVEY FORM
(PHIU THM D KIN KHCH HNG)
Participation in this study is anonymous and voluntary. You can choose to withdraw from
this study at any time. This study is primarily concern with your perceptions about online
shopping. It is used for the masters thesis proposal Factors affecting customers' trust in
online shopping in Vietnam. This study not only provides an empirical understanding
role of factor Trust towards online shopping, but it also presents strategic implications and
directions for the development of online shopping in Vietnam. Please select the
appropriate answers and thank you for your cooperation. (Cc Anh/Ch ng gp kin
cho Phiu kho st ny l hon ton t nguyn v n danh. Cc Anh/Ch c th dng cho
kin vo bt k thi im no Anh/Ch mun. Phiu kho st ny cp n nhn thc
ca Anh/Ch v mua sm HH & DV trn Internet. V Phiu c phc v cho ti
nghin cu nh gi tc ng ca cc nhn t ri ro, li ch, vn an ninh v quyn
ring t i vi s hnh thnh s tin tng ca khch hng khi mua sm HH & DV trn
Internet. ti ny khng ch nhm cung cp s hiu bit v vai tr thc tin ca s tin
tng m cn gi cc chin lc pht trin kinh doanh cho cc c nhn/doanh nghip
ang hot ng trong lnh vc thng mi in t. Xin Anh/Ch vui long dnh cht thi
gian chn cu tr li thch hp v chn thnh cm n s gip ca cc Anh/Ch !!!)
Filter questions (Cu hi bt buc)
Have you ever bought goods, services online and paid for them by PayPal, Visa,
MasterCard, American Express, JCB OnePay, or Visa Debit Cards issued by
Vietcombank, Sacombank, Vietinbank, etc or a digital wallet? (Anh/Ch c bao gi
mua bt k mt hng ha, dch v no trn Internet bng Paypal, Visa, Master Card,
Visa, MasterCard, American Express, JCB OnePay, v.v.. bng th tn dng hay v in
trn Internet cha?)
51
Yes (C):
=> Continue (Tip tc tr li)
No (Khng): ===> Stop (Dng ti y)

A. Instructions: Below are statements to assess your perceptions about online shopping.
For each of the following statements, choose the number that indicates the level of your
agreement or disagreement using the following scale: (A. Hng dn: Sau y l cc pht
biu lin quan n nhn thc mua hng ha, dch v trc tuyn. i vi mi pht biu
sau, xin Anh/Ch vui lng khoanh trn mt la chn cho mi pht biu sau theo cc mc:)
1 Strongly Disagree (Rt khng ng )
4 Agree (ng )
2 Disagree (Khng ng )
5 Strongly Agree (Rt ng )
3 Neutral (Phn vn)

Strongly
Strongly
Disagree
Agree
Privacy Protection (Bo v quyn ring t)

1. I am concerned that unauthorized persons (e.g., hackers) have access to
my personal information. (Ti lo ngi nhng ngi khng c php
(hackers) s nh cp thng tin c nhn ca ti.) ............................................. 1 2 3 4 5

2. I am concerned that Web vendors will share my personal information with
other entities without my authorization. (Ti lo ngi cc websites s chia
thng tin c nhn ca ti cho cc t chc khc.)............................................... 1 2 3 4 5
3. I am concerned about the privacy of my personal information during a
transaction. (Ti lo ngi b xm phm v quyn ring t v thng tin c
nhn ca ti.)...................................................................................................... 1 2 3 4 5
4. I am concerned that Web sites are collecting too much personal
information. (Ti lo ngi cc websites ang thu thp qu nhiu thng tin
c nhn ca ti.)................................................................................................. 1 2 3 4 5
52
Strongly
Strongly
Disagree
Agree

5. I am concerned that Web vendors will use my personal information for
other purposes without my authorization. (Ti lo ngi cc websites s s
dng sai mc ch thng tin c nhn ca ti.) ................................................... 1 2 3 4 5

6. I am concerned that Web vendors will sell my personal information to
others without my permission. (Ti lo ngi cc websites s bn thng tin
c nhn ca ti.)................................................................................................. 1 2 3 4 5
Security Protection (S bo v an ninh)
1. In general, providing credit card information online is riskier than
providing it over the phone to an offline vendor. (Ni chung, vic cung cp
thng tin th tn dng trn Internet th ri ro hn so vi vic cung cp n
qua in thoi n ngi bn hng khng thng qua mng Internet.) ............. 1 2 3 4 5
2. Internet merchants usually ensure that transactional information is
protected from accidentally being altered or destroyed during a
transmission on the Internet. (Cc website thng m bo thng tin giao
dch s khng b thay i hay mt mt trong sut qu trnh truyn d liu.)
............................................................................................................................ 1 2 3 4 5
3. I feel secure about the electronic payment system of Internet merchants.
(Ti cm thy yn tm v h thng thanh ton trc tuyn ca cc website.) .... 1 2 3 4 5
4. Internet merchants implement security measures to protect Internet
shoppers. (Cc website thc hin nhiu bin php an ninh bo v khch
hng.).................................................................................................................. 1 2 3 4 5
5. I am willing to use a credit card to make purchases online. (Ti sn sng
s dng th tn dng mua hng trn Internet.).............................................. 1 2 3 4 5
6. I feel safe making transactions online. (Ti cm thy an ton khi mua hng
trn Internet.) .................................................................................................... 1 2 3 4 5
53
Strongly
Strongly
Disagree
Agree

Perceived Risks (Ri ro)
1. I believe that the risk of purchasing online is very high. (Ti tin ri ro mua
hng trc tuyn l rt cao.)................................................................................ 1 2 3 4 5

2. There is a high probability of losing a great deal by purchasing from
Internet merchants. (Xc sut nh mt c hi mua c mn hng ng
bi vic mua hng trc tuyn l kh cao.)......................................................... 1 2 3 4 5
3. There is a great uncertainty associated with purchasing from Internet
merchants. (C mt s khng chc chn rt ln lin quan n vic mua
hng trc tuyn.) ................................................................................................ 1 2 3 4 5
4. Overall, I would label the option of purchasing from Internet merchants as
something negative. (Ni chung, ti gn s la chn mua hng trc tuyn
nh mt iu mang tnh tiu cc.) ..................................................................... 1 2 3 4 5
Perceived Benefits (Li ch)
1. Using the virtual store enables me to accomplish shopping more quickly
than traditional stores. (Hon tt vic mua hng nhanh hn so vi ca
hng truyn thng.) ............................................................................................ 1 2 3 4 5
2. Using the virtual store enables me to accomplish information seeking more
quickly than traditional stores. (Tm thy thng tin nhanh hn so vi ca
hng truyn thng.) ............................................................................................ 1 2 3 4 5
3. Using the virtual store improves my performance in shopping (e.g., save
money). (Cung cp cho ti kh nng tit kim tin khi mua hng). .................. 1 2 3 4 5
4. Using the virtual store improves my performance in information seeking
(e.g., save time). (Cung cp cho ti kh nng tit kim thi gian khi tm
kim thng tin).................................................................................................... 1 2 3 4 5
5. Using the virtual store increases my productivity in shopping (e.g., make
purchase decisions). (Lm tng s ln quyt nh mua hng ch trong mt
khon thi gian ngn.) ....................................................................................... 1 2 3 4 5
54
Strongly
Strongly
Disagree
Agree

6. Using the virtual store increases my productivity in information seeking
(e.g., find product information within the shortest time frame). (Lm tng
s ln tm thy thng tin ch trong mt khon thi gian ngn.)......................... 1 2 3 4 5

7. Using the virtual store enhances my effectiveness in shopping (e.g., get the
best deal). (Nng cao hiu qu mua hng (v d: mua c mn hng ng
)). ...................................................................................................................... 1 2 3 4 5
8. Using the virtual store enhances my effectiveness information seeking
(e.g., find the most important information about a product.) (Nng cao
hiu qu tm kim thng tin (v d: tm thy thng tin quan trng sn
phm).) ............................................................................................................... 1 2 3 4 5
9. Using the virtual store makes it easier for me to shop. (Gip cho vic mua
sm tr nn d dng hn.).................................................................................. 1 2 3 4 5
10. Using the virtual store makes it easier for me to find information. (Gip
cho vic tm thy thng tin tr nn d dng hn.) ............................................ 1 2 3 4 5
11. I find the virtual store very useful in my shopping. (Rt hu ch cho vic
mua sm) ............................................................................................................ 1 2 3 4 5
12. I find the virtual store very useful in information seeking. (Rt hu ch cho
vic tm kim thng tin.) ..................................................................................... 1 2 3 4 5
Customer Trust in Internet Shopping (S tin tng ca khch hng)
1. In general, I cannot rely on Internet vendors to keep the promises that they
make. (Ni chung, ti khng th trng cy vo cc cam kt trn cc
website.).............................................................................................................. 1 2 3 4 5
2. Internet shopping cannot be trusted, there are just too many uncertainties.
(Mua hng trc tuyn th khng th tin c bi c qu nhiu iu khng
chc chn.) ......................................................................................................... 1 2 3 4 5
3. Anyone trusting Internet shopping is asking for trouble. (Bt k ai tin vo
mua sm trn Internet s gp phi nhiu rc ri.)............................................. 1 2 3 4 5
4. Internet shopping is unreliable. (Mua hng trc tuyn th khng ng tin
cy.) ................................................................................................................... 1 2 3 4 5
55
B. Before getting the survey finished, please give some information about your self. (B. Trc
khi kt thc, xin Anh/Ch vui lng chn.)
1. Gender (Gii tnh)
Male (Nam)
Female (N)
2. Age (Tui)
17 - 25
26 35
36 45
3. The highest academic school you have acquired (Bng cp cao nht m Anh/Ch c)
High school diploma or equivalent (PTTH)
Master Degree (Thc s)
Bachelor Degree (i hc)
Doctor Degree (Tin s)
Associate Degree (Cao ng)
Other (Khc)
4. Average monthly income (mln VND) (Thu nhp bnh qun triu ng/thng)
4
9 13
22 35
48
14 21
36
Thank You for Your Cooperation !!!

Chn thnh cm n s gip ca anh/ch !!!
56
Appendix B
Graph 1. Regression Standadized Residual
Graph 2. Normal P-P plot of regression standardized residual
57
Graph 3. Scatterplot
58

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

FACTORS AFFECTING CUSTOMER

MASTER OF BUSINESS (Honours)

Ho Chi Minh City Year 2012

Ho Chi Minh City Year 2012

FACTORS AFFECTING CUSTOMER

MASTER OF BUSINESS (Honours)

Ho Chi Minh City Year 2012

Ho Chi Minh City, Jan 1 st 2013

The Internet in Vietnam.......................................................................................... 1

Online shopping in Vietnam ................................................................................... 1

Statement of purpose ...................................................................................................... 2

Research question ........................................................................................................... 3

Significance of the study................................................................................................. 3

Scope of the study........................................................................................................... 3

Structure of the study...................................................................................................... 3

Chapter Two: Literature Review ................................................................................................ 5

Trust in online shopping ................................................................................................. 5

Definition of trust in e-commerce........................................................................... 5

The importance of trust in e-commerce................................................................ 15

Trust antecedents identified in the literature................................................................. 16

Perceived privacy and security protection ............................................................ 16

Perceived risks and benefits.................................................................................. 18

Chapter Three: Methodology.................................................................................................... 20

Samples and data collection procedures ....................................................................... 24

Data analysis ................................................................................................................. 24

Chapter Four: Results ............................................................................................................... 26

Characteristics of the sample population ...................................................................... 26

Reliability of measurement instruments ....................................................................... 28

Exploratory factor analysis ................................................................................... 32

Tests of regression assumptions ................................................................................... 37

Test of normality of residual & heteroscedasticity............................................... 38

Evaluating demographic variables impacts on customers trust ................................. 38

Hypotheses testing ........................................................................................................ 39

Summary of the results ................................................................................................. 41

Chapter Five: Discussion .......................................................................................................... 43

Limitations and directions for future research.............................................................. 45

World Trade Organization

Asia-Pacific Economic Cooperation

Statistical Package for the Social Sciences

Customer Trust in Internet Shopping

Exploratory Factor Analysis

Total Variance Extracted

Variance Inflation Factor

Chapter One: Introduction

The Internet in Vietnam

Online shopping in Vietnam

Significance of the study

Scope of the study

Structure of the study

demographic variables impacts on customers trust, and testing hypotheses are

Chapter Two: Literature Review

Trust in online shopping

Definition of trust in e-commerce

commerce field. Depending on different contexts, researchers offer different meanings.

Table 2.1. Summary of prior conceptualizations of trust

Expectations about the

behavior of the other

1. Attitude affective trust

2. Cognitive specific trust

Confidence that the trusted

party will behave in the

trust, caring, integrity