1 FACTORS IMPACT ON CUSTOMERS’ INTENTION AND USAGE TOWARDS MOBILE COMMERCE IN VIETNAM Sang-Lin Han T. P. Thao Nguyen a V. Anh Nguyen **a Abstract: Mobile Commerce plays a vital role in business nowadays. In Viet Nam, there is not many researches about M-commerce. Therefore, based on TAM model, this research investigates factors impact on customers’ intention and usage towards M-commerce. The results indicate that Perceived usefulness, Perceived ease of use, Perceived playfulness and Perceived cost impacting on customers’ intention and usage in M-commerce, especially Perceived usefulness is the most important factor. This research also showed the frequency of M-commerce activities and the reasons for using it, the top 5 most frequently activities: News, Instant messaging/chatting, Social network (facebook, Twitter, Cyworld), Ticket purchase and Downloading ringtone; and the top three reasons: For study or work, Availability of internet access anywhere, Immediate access to internet when needed. In addition, we found that moderate roles of gender, hedonic and utilitarian tendencies in M-commerce adoption in Viet Nam. Keywords: Mobile Commerce, Perceived usefulness, playfulness, ease of use, cost, hedonic and utilitarian tendencies. 1. INTRODUCTION In the 1990s the emergence of e-commerce to businesses brought profound changes to the competitiveness and structure of industry and business models especially in travel and music industries. Like E-commerce with the advancement in wireless communication technologies, mobile commerce (m-commerce) is now seen as the new business model and platform that will have a similar impact on the business communities and industries. M-commerce offers extra functionality to existing e-commerce such as location and localization services (Junglas and Watson, 2008). According to ABI Research, the m-commerce will grow into a $119 billion global industry by 2015, up from $18.3 billion in 2008 (M. Khalifa, Cheng, and Shen, 2012). Also, the increase in m-commerce is fueled by a unstop development of new mobile smart devices and the increasing number of people who own mobile phones. Mobile phones have become important personal devices for listening to music, watching videos, playing games, conducting business transactions, and connecting to social networking sites. The interactions between consumers and their mobile phones have presented opportunities for organizations to use m-commerce to personalize services to customers. Realizing these opportunities, companies have been focused in m-commerce infrastructure, services and devices investment. Furthermore, since developing countries present a market which has huge population that make them become the potential markets for many telecommunication and m-commerce service providers such as China and India. Vietnam a country with population is over 90 million and for every 100 Vietnamese people, there are 145 mobile phones is not an exception. Moreover, to date, there is little research which has explicitly addressed the differences on the adoption of m-commerce between developed and developing countries. Many scholars strongly support that the criteria for m-commerce adoption in developing countries are Professor, School of Business, Hanyang University, Seoul 133-791, Republic of Korea PhD student, School of Business, Hanyang University, Seoul 133-791, Republic of Korea a Faculty of Economics and Business Administration, Dalat University, Lam Dong, Viet Nam
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FACTORS IMPACT ON CUSTOMERS’ INTENTION AND USAGE TOWARDS
MOBILE COMMERCE IN VIETNAM Sang-Lin Han
T. P. Thao Nguyena
V. Anh Nguyen**a
Abstract: Mobile Commerce plays a vital role in business nowadays. In Viet Nam, there is not many researches about
M-commerce. Therefore, based on TAM model, this research investigates factors impact on customers’ intention and
usage towards M-commerce. The results indicate that Perceived usefulness, Perceived ease of use, Perceived
playfulness and Perceived cost impacting on customers’ intention and usage in M-commerce, especially Perceived
usefulness is the most important factor. This research also showed the frequency of M-commerce activities and the
reasons for using it, the top 5 most frequently activities: News, Instant messaging/chatting, Social network (facebook,
Twitter, Cyworld), Ticket purchase and Downloading ringtone; and the top three reasons: For study or work,
Availability of internet access anywhere, Immediate access to internet when needed. In addition, we found that
moderate roles of gender, hedonic and utilitarian tendencies in M-commerce adoption in Viet Nam.
Keywords: Mobile Commerce, Perceived usefulness, playfulness, ease of use, cost, hedonic and utilitarian tendencies.
1. INTRODUCTION
In the 1990s the emergence of e-commerce to businesses brought profound changes to the
competitiveness and structure of industry and business models especially in travel and music
industries. Like E-commerce with the advancement in wireless communication technologies,
mobile commerce (m-commerce) is now seen as the new business model and platform that will
have a similar impact on the business communities and industries. M-commerce offers extra
functionality to existing e-commerce such as location and localization services (Junglas and Watson,
2008). According to ABI Research, the m-commerce will grow into a $119 billion global industry
by 2015, up from $18.3 billion in 2008 (M. Khalifa, Cheng, and Shen, 2012). Also, the increase in
m-commerce is fueled by a unstop development of new mobile smart devices and the increasing
number of people who own mobile phones. Mobile phones have become important personal devices
for listening to music, watching videos, playing games, conducting business transactions, and
connecting to social networking sites. The interactions between consumers and their mobile phones
have presented opportunities for organizations to use m-commerce to personalize services to
customers. Realizing these opportunities, companies have been focused in m-commerce
infrastructure, services and devices investment. Furthermore, since developing countries present a
market which has huge population that make them become the potential markets for many
telecommunication and m-commerce service providers such as China and India. Vietnam a country
with population is over 90 million and for every 100 Vietnamese people, there are 145 mobile
phones is not an exception. Moreover, to date, there is little research which has explicitly addressed
the differences on the adoption of m-commerce between developed and developing countries. Many
scholars strongly support that the criteria for m-commerce adoption in developing countries are
Professor, School of Business, Hanyang University, Seoul 133-791, Republic of Korea PhD student, School of Business, Hanyang University, Seoul 133-791, Republic of Korea aFaculty of Economics and Business Administration, Dalat University, Lam Dong, Viet Nam
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different from that of developed countries, due to cultural, security, social, political, economic, and
technological aspects (Crabbe, Standing, Standing, and Karjaluoto, 2009; Saidi, 2010; Yaseen and
Zayed, 2010). In addition, according to Vaghjiani (2012), there is a perception that innovations
adoption appears to be adopted in different ways in developed and developing countries. Therefore,
this empirical research study aims at achieving several objectives. First, this empirical research is
intended to investigating the main drivers influencing Vietnamese consumers’ behavior toward m-
commerce adoption. The work extends the traditional Technology Acceptance Model (TAM) by
integrating the quality dimensions, personal innovativeness, playfulness and cost factors since the
nature of mobile devices such as screen size that limits access to multimedia contents and slower
speed than conventional PCs. Since, the internet infrastructure of Vietnam is not as good as other
developed countries. There is a need to investigate the other quality factors that would influence the
perception of users towards m-commerce. Moreover, the recent researches have revealed that cost
are able to predict Malaysian and Chinese consumer decisions to adopt m-commerce (Cheong and
Park, 2005; Chong et al., 2012; Wei et al., 2009 ; Zhang et al., 2012) and the cost of service
subscriber is rather high, also Vietnamese customers seems to be sensitive to the price and price
plays a vital role in buying decision making process. Furthermore, Cheong and Park, (2005) also
demonstrated that the exploration of playfulness as an extension of TAM significant influenced the
behavioral intention to use M-internet.
Second, this study also examines the reasons for using m commerce, and types of m-commerce
activities engaged into since the results could have develop a better understanding of their
customers in order to develop specific products or application to meet customers’ need.
Third, the impact of gender differences on adoption processes of technologies has played a vital
role in marketing strategy. However to some degree, the importance of it is overlooked in
developing countries. Many studies have reported that gender difference has a significant impact on
consumers’ perception toward adoption of information technology (Venkatesh and Morris, 2000;
Venkatesh et al., 2003; Venkatesh and Bala, 2008; Wang et al., 2009; Deng et al., 2010; Riquelme
and Rios, 2010; Dong and Zhang, 2011). On the other hand, literature has emerged that offers
contradictory findings about the role of gender on the adoption process of various information
technology domains (Bigne et al., 2005; Serenko et al., 2006; Zhou et al., 2007; Lip-Sam and Hock-
Eam, 2011). Therefore, the need for further research to improve the understanding of the impact of
gender on the adoption of m-commerce increases, particularly in Vietnam a developing country.
Consequently, this study contributes toward a greater understanding of how men and women
perceive m-commerce adoption in a developing country context which is fundamental for marketers
to consider for marketing strategies.
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Finally, the study is undertaken to evaluate the moderating role of Utilitarian and Hedonic
Tendencies toward the m-commerce usage for giving the insight for service providers in order to
formulate specific products or applications that match and better satisfy customers’ needs than their
competitors.
2. LITERATURE REVIEW AND HYPOTHESES
2.1 Mobile Commerce
Mobile commerce is any transaction, involving the transfer of ownership or rights to use goods
and services, which is initiated and/or completed by using mobile access to computer-mediated
networks with the help of an electronic device. There has not been an agreed conceptual definition
of the term mobile commerce. Generally, the nature of mobile commerce is that services can be
accessed anywhere, at any time. As viewed by Kannan et al., (2001) and Varshney & Vetter, (2002),
m-commerce is the use of wireless technology, particularly handheld mobile devices and mobile
Internet, to facilitate transaction, information search and user task performance in consumer,
business to business, and intra-enterprise.
Types of Applications
There have been a great number of m-commerce applications since the advent of this new
technology. The most popular of which consist of financial, advertising, and location-based services.
An attempt to identify the several important classes of applications has been made by Varshney &
Vetter, (2002). Their study covered a comprehensive range of m-commerce applications under
different classes as summarized in Table1.
Table 1. M-Commerce Applications by Varshney and Vetter, (2002)
Class of Applications Details Examples
Mobile financial applications (B2C,
B2B)
Applications where mobile
device becomes a powerful
financial medium
Banking, brokerage, and
payments for mobile
users
Mobile advertising (B2C)
Applications turning the wireless
infrastructure and devices into a
powerful marketing medium.
User specific and location
sensitive advertisements.
Mobile inventory management
(B2C, B2B)/
Product locating and shopping
(B2C, B2B)
Applications attempting to
reduce the amount of inventory
needed by managing in-house
and inventory-on-move. /
Applications helping to find the
location of product and services
that are needed.
Location tracking of goods,
boxes, troops, and people. /
Finding the location of a new
used car of certain model, color
and features.
Proactive service management
(B2C, B2B)
Applications attempting to
provide users information on
services they will need in very-
near-future.
Transmission of information
related to aging (automobile)
components to vendors.
Wireless re-engineering (B2C, B2B)
Applications that focus on
improving the quality of business
services using mobile devices
Instant claim-payments by
insurance companies.
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and wireless infrastructure.
Mobile auction or reverse auction
(B2C, B2B)
Applications allowing users to
buy or sell certain items using
multicast support of wireless
infrastructure.
Airlines competing to buy a
landing time slot during runway
congestion (a proposed solution
to air-traffic congestion
problem).
Mobile entertainment services and
games
(B2C)
Applications providing the
entertainment services to users
on per event or subscription
basis.
Video-on-demand, audio-on-
demand, and interactive games.
Mobile office (B2C)
Applications providing the
complete office environment to
mobile users anywhere any time.
Working from traffic jams,
airport, and conferences.
Mobile distance education (B2C)
Applications extending
distance/virtual education
support for mobile users
everywhere.
Taking a class using streaming
audio and video.
Wireless data center (B2C, B2B)
Applications supporting large
amount of stored data to be made
available to mobile users for
making intelligent decisions.
Detailed information on one or
more products can be
downloaded by vendors.
2.2. Technology Acceptance Model
Most m-commerce articles adopted the Technology Acceptance Model (TAM) in establishing a
mobile commerce adoption model (Wu & Wang, 2005; Lu et al., 2003; Yang and Jolly, 2008). In
studying user acceptance and use of technology, the TAM developed by Davis, (1985) to explain
computer-usage behavior, has been one of the cited models. Numerous studies have provided
support to this model in predicting user’s intention to adopt new services and applications ( Davis et
al., 1989); Igbaria and Tan, 1997; Wang et al., 2003; Gefen et al., 2003; and Ikart, 2005). However,
TAM with its original emphasis on the design of system characteristics does not account for social
influence in the adoption and utilization of new information system. And so, an attempt to extend it,
referred to as TAM2, has been undertaken by Viswanath Venkatesh and Davis, 2000 to explain
Perceived Usefulness and usage intentions in terms of social influence and cognitive instrumental
processes. O’Cass and Fenench (2003) argue that TAM is also appropriate for research areas in
electronic commerce applications since electronic commerce is based on computer technology. As
scholars indicate that mobile commerce is an extension of e-commerce, it is thus justifiable to
extend TAM to examine consumer intention to adopt mobile commerce. Thus, the m-commerce
adoption articles extended the TAM with new constructs aside from the original Perceived
Usefulness and Perceived Ease of Use, Attitude, Intention and Actual Use constructs.
2.3 M-commerce adoption models
Many researchers based their models on TAM to explore in different contexts, a few of them is
briefly discussed as follow.
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Wu and Wang (2005) integrated TAM and innovation diffusion theory to investigate what
determines user’s mobile commerce acceptance about online banking, shopping, investing, and
online services. The findings indicated that all variables except Perceived Ease of Use significantly
affected user’s behavioral intent. Among them, the compatibility had the most significant influence.
Cheong and Park (2005) measured how different variables affect mobile internet usage and
acceptance among Koreans. They suggested that Perceived Playfulness and Perceived Price Level
should be added to the TAM.
Faqih and Jaradat (2014) proposed a theoretical framework based on TAM3 theory and
concluded that perceived usefulness and perceived ease of use are important factors I explaining the
individual’s intention to adopt mobile commerce in Jordan. The results of these previous studies
confirm that, in the mobile technology context, traditional adoption models such as TAM could be
applied, but need modification and extension in order to increase their prediction and explanation
power. Thus, this paper conforms to these studies and extended the TAM to analyze the usage of
mobile commerce.
Table 2. Summary of Selected M-Commerce Adoption Studies