Factors affecting customer intention to use online food delivery (OFD) services in Ho Chi Minh city, 2022

Ho Chi Minh City, 2022

STATE BANK OF VIETNAM THE MINISTRY OF EDUCATION AND TRAINING

HOCHIMINH UNIVERSITY OF BANKING

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VO THI KIM NGAN

STUDENT CODE: 030805170155

FACTORS AFFECTING CUSTOMER INTENTION TO USE

ONLINE FOOD DELIVERY (OFD) SERVICES IN HO CHI MINH CITY

GRADUATION THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 7340101

SUPERVISOR: TRAN VAN DAT, Ph.D

Ho Chi Minh City, 2022

STATE BANK OF VIETNAM THE MINISTRY OF EDUCATION AND TRAINING

HOCHIMINH UNIVERSITY OF BANKING

--------

VO THI KIM NGAN

STUDENT CODE: 030805170155

FACTORS AFFECTING CUSTOMER INTENTION TO USE

ONLINE FOOD DELIVERY (OFD) SERVICES IN HO CHI MINH CITY

GRADUATION THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 7340101

SUPERVISOR: TRAN VAN DAT, Ph.D

COMMENTS OF THESIS SUPERVISOR

Comment content:

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Ho Chi Minh City, 4th June, 2022

CONFIRMATION OF SUPERVISOR

Dr. TRAN VAN DAT

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ABSTRACT

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With the cutting-edge internet technology, there have been remarkable changes in

customer behavior related to online shopping. This research aims to examine factors

affecting Customer Intention to use OFD services in HCMC during the COVID-19

outbreak period. Along with theoretical basis and references to previous studies, a

proposed research model comprising of 5 variables is built based on Technology

Acceptance Model (TAM). By conducting qualitative research and quantitative

research with 200 observed samples, the results of Cronbach's Alpha analysis and

Exploratory Factor Analysis (EFA) reveal that the scale used in this study is

appropriate. The outcome showed that all 5 factors affect OFD usage intention with

the level of influence ranked in order, including: (1) Perceived Ease of Use; (2)

Perceived Price; (3) Subjective Norm; (4) Perceived Usefulness; (5) Perceived

Safety. Theoretical and practical implications are provided to help OFD enterprises

to expand customer base and improve app experience.

Keywords: Online Food Delivery (OFD) services; Customer intention; Technology

Acceptance Model (TAM).

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DECLARATION OF AUTHENTICITY

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The author hereby declares that the thesis with the title: “Factors Affecting

Customer Intention To Use Online Food Delivery (OFD) Services In Ho Chi Minh

City” is the author's own research work. The thesis is conducted based on the

application of specialized knowledge achieved from BUH University and the

guidance of Doctor Tran Van Dat. The research results are genuine, in which there

are no previously published contents or material from other studies except for the

fully cited citations presented in the appendix. The author assumes all responsibility

for any issues related to this thesis.

Ho Chi Minh City, 4th June, 2022

Student,

Vo Thi Kim Ngan

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ACKNOWLEDGEMENT

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First and foremost, I would like to express my sincere gratitude to my instructor,

Doctor Tran Van Dat. During the research progress, I have received his enthusiastic

guidance and passionate assistance. In spite of encountering various difficulties, his

conducive instructions and encouragement supported me immensely in order to

successfully complete this graduation thesis.

Along with that, I also implemented a wide range of knowledge which was acquired

from different subjects during 4 years of studying at the Banking University. For

that reason, I would like to convey my deepest appreciation to the school

administrators and faculty teachers for creating favorable conditions for me to

perform my research.

Considering that my thesis still has many limitations in expertise, I would be

grateful to receive precious and valuable assessments from teachers at the Faculty

of Business Administration for further improvements. Eventually, I would like to

send best wishes to all BUH teachers, my family and friends, good health and

success in life.

My sincere appreciation,

Student,

Vo Thi Kim Ngan

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TABLE OF CONTENTS

ABSTRACT .........................................................................................................................i

DECLARATION OF AUTHENTICITY .........................................................................ii

ACKNOWLEDGEMENT ............................................................................................... iii

TABLE OF CONTENTS ..................................................................................................iv

LIST OF ACRONYMS....................................................................................................vii

LIST OF TABLES.......................................................................................................... viii

LIST OF FIGURES............................................................................................................x

CHAPTER 1: INTRODUCTION AND THESIS SUMMARY......................................1

1.1. The necessity of the topic..........................................................................................1

1.2. Research objectives...................................................................................................3

1.2.1. General Objective...............................................................................................3

1.2.2. Specific Objectives.............................................................................................3

1.3. Research questions....................................................................................................3

1.4. Subject and scope of the research .............................................................................3

1.5. Research method and data ........................................................................................4

1.6. Practical significance of the research........................................................................4

1.7. Thesis structure .........................................................................................................5

CONCLUSION OF CHAPTER 1 ....................................................................................6

CHAPTER 2: LITERATURE REVIEW.........................................................................7

2.1. Concepts....................................................................................................................7

2.1.1. Definition of Customer Buying Behavior ..........................................................7

2.1.2. Definition of Purchase Intention ........................................................................8

2.1.3. Definition of App Purchase Intention ................................................................8

2.1.4. Online Food Delivery (OFD) Services...............................................................9

2.2. Theoretical perspectives..........................................................................................10

2.2.1. Consumer Decision-Making Process ...............................................................10

2.2.2. Theory of Planned Behavior – TPB .................................................................11

2.2.3. Theory of Perceived Risk – TPR......................................................................12

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2.2.4. Technology Acceptance Model – TAM...........................................................13

2.2.5. Consumer Behavior In E-Commerce Environment .........................................14

2.3. Empirical studies.....................................................................................................15

2.3.1. International studies..........................................................................................15

2.3.2. Studies in Vietnam ...........................................................................................17

2.4. Research gap ...........................................................................................................22

2.5. Research model and hypotheses development........................................................23

2.5.1. Research model ................................................................................................23

2.5.2. Hypotheses development..................................................................................24

CONCLUSION OF CHAPTER 2 ...................................................................................27

CHAPTER 3: RESEARCH METHODOLOGY...........................................................28

3.1. Research process.....................................................................................................28

3.2. Scale development ..................................................................................................29

3.3. Qualitative research.................................................................................................32

3.3.1. Qualitative research implementation................................................................32

3.3.2. Qualitative research results ..............................................................................33

3.4. Quantitative research...............................................................................................37

3.4.1. Sample Size Calculation...................................................................................37

3.4.2. Data collection..................................................................................................38

3.4.3. Data analysis.....................................................................................................38

CONCLUSION OF CHAPTER 3 ...................................................................................42

CHAPTER 4: RESEARCH RESULTS..........................................................................43

4.1. Characteristics of the survey sample.......................................................................43

4.2. Testing the scale reliability .....................................................................................46

4.3. Exploratory Factor Analysis (EFA)........................................................................49

4.3.1. EFA analysis of independent variables............................................................49

4.3.2. EFA analysis of dependent variables ...............................................................52

4.4. Pearson's correlation analysis and Multivariate regression analysis ......................53

4.4.1. Pearson's correlation analysis...........................................................................53

4.4.2. Multivariate regression analysis.......................................................................56

4.5. Hypothesis testing...................................................................................................60

4.6. Normal Distribution ................................................................................................62

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4.7. Testing for differences among demographic groups ..............................................64

4.7.1. Customer Intention to Use OFD between Gender groups................................64

4.7.2. Customer Intention to Use OFD among different Age groups ........................65

4.7.3. Customer Intention to Use OFD among different Occupation groups ............66

4.7.4. Customer Intention to Use OFD among different Income groups...................67

CONCLUSION OF CHAPTER 4 ...................................................................................68

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS ..................................69

5.1. Summary and conclusion........................................................................................69

5.2. Result comparison with previous studies................................................................70

5.3. Research contributions............................................................................................71

5.4. Implications and recommendations ........................................................................71

5.4.1. Perceived Usefulness........................................................................................71

5.4.2. Perceived Ease of Use ......................................................................................72

5.4.3. Subjective Norm...............................................................................................72

5.4.4. Perceived Safety ...............................................................................................72

5.4.5. Perceived Price .................................................................................................73

5.5. Limitations and directions for further researches ...................................................73

REFERENCES .................................................................................................................74

APPENDIX........................................................................................................................77

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LIST OF ACRONYMS

No. Acronyms Meaning

1 OFD Online Food Delivery

2 HCMC Ho Chi Minh City

3 TPB Theory of Planned Behavior

4 TPR Theory of Perceived Risk

5 TAM

Technology Acceptance

Model

6 SPSS

Statistical Package for the

Social Sciences

7 EFA Exploratory Factor Analysis