The impact of perceived risks on the attention to use credit card of universities’ students in Ho Chi Minh City, 2021

STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

BANKING UNIVERSITY OF HO CHI MINH CITY

NGUYEN TUAN

THE IMPACT OF PERCEIVED RISKS

ON INTENTION TO USE CREDIT

CARD OF UNIVERSITIES’ STUDENTS

IN HO CHI MINH CITY

GRADUATION THESIS

BUSINESS ADMINISTRATION

CODE: 7340101

ADVISOR by DANG TRUONG THANH NHAN, MBA

HO CHI MINH CITY, 2021

STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

BANKING UNIVERSITY OF HO CHI MINH CITY

NGUYEN TUAN

THE IMPACT OF PERCEIVED

RISKS ON INTENTION TO USE

CREDIT CARD OF UNIVERSITIES’

STUDENTS IN HO CHI MINH CITY

GRADUATION THESIS

BUSINESS ADMINISTRATION

CODE: 7340101

ADVISOR by DANG TRUONG THANH NHAN, MBA

HO CHI MINH CITY, 2021

THE IMPACT OF PERCEIVED RISKS ON THE INTENTION TO USE

CREDIT CARD OF UNIVERSITIES’ STUDENTS IN HO CHI MINH

CITY

APPROVED BY: Advisor APPROVED BY: Committee

Dang Truong Thanh Nhan, M.S.

THESIS COMMITEE

DECLARATION

I declare that the thesis “The impact of perceived risk on the intention to use credit

card of Universities’s students in Ho Chi Minh city” is the result of my own research

process. Except for references from other research works as stated in the thesis, the

survey data and the results of the thesis are honest and not yet published in any

research work before.

ACKNOWLEDGE

This thesis is the author’s own work, the research results are honest, in which

no previously published content or content done by others except for cited quotes in

the thesis.

During my thesis time, I got loads of backings and supportive gestures from

numerous people. This thesis would not have been accomplished without those

valuable input, support, counsel, and advice.

First and foremost, I would like to express my deepest acknowledge to my

advisor – MBA. Dang Truong Thanh Nhan – lecturer at Banking University of Ho

Chi Minh City – for her unbelievable and unreserved help, valuable advices and

recommendation. Thank for his effort and wide knowledge to make my topic

possible, his suggestions, direction and advices are always highly appreciated and

greatly contributing to the success of this thesis.

I would also like to express my sincere appreciation to the professors and

lecturers for their guidance during my academic years at the University of Banking.

The knowledge and skills that I have learned, have assisted me in the completing of

this thesis.

Last but not least, honestly the most supported ones are my family and my

friends. Words fail me to express my thankfulness for my parents for their endless

love. To all the above, and so many more, I just simply want to say again “Thank you

for all your encouragement, support, and love”.

ABSTRACT

The development of non-cash payment has created opportunities for Financial

instruments, specificly credit card. However, the huge difference between intention

to use credit card and customers is perceived risk . Aims of this are to examine the

effective perceived risk's factors for the intention to use credit card. Data analysis is

investigated by Universities' students who are studying and from sophomore to senior

in Ho Chi Minh City. The results indicate that all of perceived risk's factors to affect

the intention to use credit card. The research sampled an online survey by

questionnaire with the total number of respondents 206; valid 200. The method that

the research uses is quantitative and qualitative and then will clean the data to use.

Analysis carried out by testing the reliability coefficient of Cronbach's Alpha; EFA

discovery factor analysis, linear regression and ANOVA testing.

Commercial banks are trying to offer the best solutions to reinforce consumer

confidence. This study aims to determine the extent to which factors influence the

intention to use credit card. The research will provide administrative implications that

help commercial banks minimize unnecessary problems and maximize quality for

credit card.

Keywords: perceived risks, credit cards, intention to use

CONTENTS

CHAPTER 1: OVERVIEW OF THE THESIS..................................................... 1

1.1. Research background .................................................................................... 1

1.2. Study’s objectives research questions........................................................... 2

1.2.1 Main Objective:...................................................................................... 2

1.2.2 Sub-Objectives: ...................................................................................... 2

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

1.4 Object and scope of study............................................................................. 3

1.5 Research method........................................................................................... 3

1.6 Contribution of research ............................................................................... 4

1.7 Proposed thesis structure............................................................................... 5

CHAPTER 2: LITERATURE REVIEW AND REVIEW RESEARCH

MODELS................................................................................................................... 7

2.1. The concept of customers ............................................................................. 7

2.2. Consumer credit ............................................................................................ 8

2.3. The concept of perceived risk ..................................................................... 10

2.4. The theoretical models of intention and behaviour .................................... 12

CHAPTER 3: RESEARCH MODEL AND RESEARCH METHOD............... 24

3.1. Overview of the research process............................................................... 24

3.2. Research process......................................................................................... 24

3.3. Scale buidling.............................................................................................. 25

3.3.1. Perceived Security Risk (signed: PSR)............................................. 26

3.3.2. Perceived Operational Risk (signed: POR) ...................................... 26

3.3.3. Perceived Financial Risk (signed: PFR)........................................... 27

3.3.4. Perceived Fraud Risk (signed: PFrR) ............................................... 27

3.3.5. Intention To Use Credit card (signed: ITUC)................................... 28

3.4. Methods of collecting information.............................................................. 28

3.4.1. Collecting secondary information..................................................... 28

3.4.2. Collecting primary information ........................................................ 28

3.5. Methods of information processing ............................................................ 31

3.5.1. Descriptive statistical methods......................................................... 31

3.5.2. Method of testing Cronbach's Alpha scale ....................................... 31

3.5.3. Method of factor analysis EFA......................................................... 32

3.5.4. Methods of regression analysis......................................................... 32

3.5.5. Method of testing variance ANOVA................................................ 33

CHAPTER 4: RESULTS AND DISCUSSIONS.................................................. 34

4.1. Overview of the research samples .............................................................. 34

4.2. Descriptive statistical analysis.................................................................... 34

4.2.1. Descriptive statistic for norminal varibles........................................ 34

4.2.2. Descriptive statistic for ordinal variables......................................... 38

4.3. Cronbach’s alpha analysis........................................................................... 41

4.3.1. Evaluate Independent Variable Scale ............................................... 42

4.3.2. Evaluate Dependent Variable Scale.................................................. 45

4.4. Exploratory factor analysis (EFA).............................................................. 45

4.4.1. EFA analysis for Independent Variable Scale .................................. 45

4.4.2. EFA analysis for Dependent Variable Scale .................................... 49

4.5. ANOVA analysis and linear regression...................................................... 50

4.5.1. Pearson coefficient analysis.............................................................. 50

4.5.2. Linear regression............................................................................... 51

4.5.3. One way ANOVA analysis............................................................... 53

4.6. Testing the hypotheses of the research model ............................................ 54

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS ...................... 58

5.1. Conclusions................................................................................................. 58

5.2. Implications................................................................................................. 59

5.2.1. Security Risk..................................................................................... 60

5.2.2. Operational Risk ............................................................................... 60

5.2.3. Financial Risk ................................................................................... 61

5.2.4. Fraud Risk......................................................................................... 61

5.3. Limitations and recommendation for future researches ............................. 61

REFERENCES ....................................................................................................... 64

APPENDIX 1: FOCUS GROUP DISCUSSION (English version) ................... 68

APPENDIX 2: FOCUS GROUP DISCUSSION (Vietnamese version)............. 69

APPENDIX 3: QUESTIONAIRE (English version)........................................... 70

APPENDIX 4: QUESTIONAIRE (Vietnamese version).................................... 76