GM(1,N) Analysis of Effect of Consumer Confidence and Transaction Security on Vietnamese Online Shopping Intention

Abstract

The purpose of this research is to investigate the effect of consumer confidence and transaction security on online shopping intention in Vietnam. Consumer confidence, transaction security, and online shopping intention, with questions of four, four and one respectively, were employed to design a questionnaire. All the questions were measured with five-point Likert scale with 1 denoting strongly disagreement, 2 for disagreement, 3 for neutral 4 for agreement and 5 for strongly agreement. An online survey by convenience sampling was employed. As a result, 206 of 220 respondents were obtained. The respondent data were analyzed by GM(1,N) model to explore the weight of each factor of consumer confidence and transaction security on online shopping intention. As the results of GM(1, N) analysis suggested, trust of the quality of goods rank, online prestige, and quality of service as the first to third most significant factors in terms of their highly-flavored weighting towards online shopping intention while trust of the security system, the transact system, the payment system and the information as fifth to eighth place. That means consumers would like to believe online commodities even they do not see the actual goods. However, on the contrary, no matter how many efforts have been made to improve the policy and function of security system, transact system, payment system and the information consumers' trust on these function still remain in the low confidence, especially for information correctness. It is suggested that online shopping should pay more attention to the promotion of information provided to increase customers' confidence.