UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
Nguyen Khac Duy FACTORS AFFECTING
BEHAVIORAL INTENTIONS TOWARD
MOBILE BANKING USAGE:
A STUDY OF BANKING CUSTOMERS
IN HO CHI MINH CITY

ID: 60340102

MASTER OF BUSINESS (Honours)
SUPERVISOR: Dr. Nguyen Thi Nguyet Que

Ho Chi Minh City – Year 2012
[ 2 ] ACKNOWLEDGEMENT
At the first of my thesis, I would like to thank all those people who made
this thesis possible and an unforgettable experience for my studying.
Foremost, I would like to express my sincere gratitude to my supervisor,
Dr. Nguyen Thi Nguyet Que, for the continuous support of my MBUS study and

Acceptance Model (TAM) and Theory of Planned Behaviour (TPB) are the base
models in order to investigate the customers‟ intention to use mobile banking
services in Ho Chi Minh City (HCMC). A questionnaire with five-point Likert
scale is survey to 400 target respondents. This research combines the variables
(1) “perceived usefulness”, (2) “perceived ease of use”, (3) “attitude”, (4)
“subjective norm”, and (5) “Perceived behavioral control” in a proposed model
to reflect consumer‟s intention to use mobile banking. Results indicate that
perceived usefulness, perceived ease of use, subjective norm, and perceived
behavioral control are significant with respect to the customer‟s intention to use
mobile banking services. In constrast with previous studies, attitude was not
significant in explaining mobile banking adoption. In summary, perceived
behavioral control contributes the most in explaining the factor of intention to
use mobile banking. The results of the data analysis contributes to the body of
knowledge by demonstrating that the above factors are critical in intention to use
mobile banking in a developing country context. The implications of the results
form a good basis for providing practical recommendations to leaders of
commercial banks, and directions for further work.
[ 4 ] TABLE OF CONTENTS
ACKNOWLEDGEMENT 2
ABSTRACT 3
LIST OF FIGURES 7
LIST OF TABLES 7
CHAPTER 1: INTRODUCTION 8
1.1. Research background 8

3.4. Sample method 31
3.5. Questionnaire administration 32
3.6. Data analysis methods 32
3.6.1. Reliability 32
3.6.2. Exploratory Factor Analysis (EFA) 33
3.6.3. Multiple regression analysis 33
3.7. Summary 34
CHAPTER 4: DATA ANALYSIS AND RESULTS 35
4.1. Descriptive analysis 35
4.2. Measure assessment 36
4.2.1. Reliability analysis 36
4.2.2. Exploratory Factor Analysis (EFA) 38
4.3. Hypotheses testing 41
4.4. Testing the effect of demographic variables 44
4.5. Summary 44
[ 6 ] CHAPTER 5: CONCLUSION 46
5.1. Overview 46
5.2. Main findings 46
5.3. Practical implications 47
5.4. Theoretical implications 47
5.5. Limitations 48
APPENDICES 52
APPENDIX 1: QUESTIONNAIRE 52
APPENDIX 2: DESCRIPTIVE STATISTICS 56
APPENDIX 3: CRONBACH‟S ALPHA RELIABILITY ANALYSIS 58
APPENDIX 4: INTER-ITEM CORRELATION MATRIX 61
APPENDIX 5: THE FIRST-TIME RUNNING FACTOR ANALYSIS –

Table 7: Cronbach‟s alpha reliability coefficient 33
Table 8: Descriptive statistic of respondent‟s characteristics 36
Table 9: Reliability analysis for each factor 38
Table 10: Key dimensions, items 41
Table 11: R Square Value (R2) 43
Table 12: ANOVA 43
Table 13: Beta Coefficient 43
Table 14: Creating and recoding variables 45 [ 8 ] CHAPTER 1: INTRODUCTION
The introduction chapter identifies the research background, present the
problem statement, and introduce the research objectives as well as the scope of
research. Futhermore, the research implications is also outline.
1.1. Research background
Mobile banking is an innovative service, which has been perpetuated by
the development and diffusion of the mobile communication technology. Mobile
banking is defineded as “the financial services delivered via mobile networks and
performed on a mobile phone” (Bangens & Soderberg, 2008, p.26). This service
provides much convenience and promptness to the banks‟ customers along with
cost savings. Many banks are interested in expanding their market through
mobile services.
Traditionally, the most widespread method of conducting banking
transactions has been through offline retail banking. Mobile banking, however, is
the recent trend in banking transition and holds a bright future that is promising
over and above the one brought by electronic banking (e-banking). Mobile
banking provides personalized, anytime - anywhere banking services thus

the State Bank of Viet Nam - Branch Ho Chi Minh City).
E-banking services also vary as (1) Internet banking for businesses and
individual customers (transfers in and out of the system, the inter-bank transfer
through CITAD ); (2) Mobile banking: SMS Banking (account balance
inquiries, automatic SMS when there is a change in account ), Mobile banking
(money transfer, bill payment ); (3) Phone banking (payment of school fees,
telephone payment,etc).
The commercial banks is cooperating with partners in the implementation
of electronic payment services in order to reduce banking transaction costs,
increased competition and improve the quality of services. This also helps reduce
the bank‟s cost in payments via papers, making it convenient for customers.
Customers do not need go to the bank, but can make the payment transaction at
[ 10 ] home. At the same time, the banks are also actively working with technology
partners to provide security services, ensure the safety of customer and bank
assets.
Table 1 – Figure of electronic banking services of 15 commercial banks
in Ho Chi Minh City (Report of the State Bank of Viet Nam - Branch Ho Chi
Minh City on December 31, 2011)
Items
Number of transactions
(items) / Value (million
VND)
The number of enterprise customers using
payment via internet banking services
7.561
The number of individual customers are using
services paid via internet banking

15.203
Value of payment transactions via other e-
banking
31.570
The above data shows that, individual customers using payment services
over the internet are quite popular, much more than the number of users, the
number and value of transactions compared to other electronic banking channels.
Meanwhile, Vietnam has more people using mobile phone (mobile subscribers is
1.5 times of the population), but relatively low transaction through mobile
banking.
1.2.2. Advantages of e-banking services
With payment services through electronic banking, customers can conduct
banking transactions do not need go to the bank, not restricted by geographical
area. They can sit at home to ordering, purchase a variety of goods and services
quickly. Those services help customer saving time and costs. Therefore, in the
short-term launch of electronic banking services, the number of customers using
electronic banking service increased by favorable elements as follows:
- The Government and the State Bank of Viet Nam promoted the
commercial banks to develop electronic banking payment system.
- The commercial banks has implemented core banking system based
on modern technology, centralized data integration implemented
[ 12 ] with partners in the co-payment, provide a convenient e-banking
payment method.
- Electronic banking transaction is quick, convenient and low cost.
The number of individual customers using the internet and online
paymentvia the internet is increasing. In particular, the young
customers can adaptable easily the new information technology.

interrupt of customer transactions.
1.3. Problem statement
Mobile banking is popularly known is the recent trend in banking
transition and holds a bright future that is promising over and above the one
brought by e-banking. E-banking provided personalized, anytime - anywhere
banking services. Nevertheless, with all the laudable benefits of mobile banking,
it is yet to gain larger scale adoption, especially in the emerging economies.
According to Vietnam Bank Card Association, the development of
personal accounts in Vietnam was very high, 124% average growth per year over
the period 2006-2011. At June 30, 2011, the commercial banks have issued 36
million personal accounts, for 17 million people (about 20% of Vietnam's
population). The promotion of mobile banking transaction channel enabled the
banks to enhance their operations with cost cutting effectively and efficiently in
order to handle daily banking affairs via mobile and Internet. Customer is
convenient by reducing their visits to the banks and they can get their
transactions via their mobile instead of personally visiting the branches.
Although, the usage of mobile banking has been strong growth over the last few
years, it is still in its infancy. According to the commercial banks survey of
Nielsen Vietnam in August 2011, there are less than 3% banking customers using
mobile banking services. This rate is very low if compared with the number of
mobile subscribers nationwide at the end of December 2011. As the report of
General Statistics Vietnam, there was estimate at 117.6 million mobile
subscribers, 32.6 million Internet users at the end of 2011. This figure is also
[ 14 ] still very low when compare with developed nations in Asia. It means that
mobile banking service in Viet Nam is a potential market in future.
During the last ten years, there was many studies concerning about the
intention to use mobile banking. However, most of these studies focused on the

account, but have not yet registered to use mobile banking services. Due to
limited time and cost, the research surveyed about 400 customers of two banks in
HCMC (DongA Commercial Bank and Trust Commercial Bank). The result of
research in this city, in some level can represent for Viet Nam in general and can
be use as reference for further purposes.
The research will assess only in the intention to use mobile banking. The
other factors such as the priority in choosing the bank, other services in
banking… are out of the topic of this research. The other limitation relate to the
sample size. The sample size of this study is 300 respondents only, somewhat
limits the generalization of the research results. It would be reasonable to elevate
sample size and testing this model more extensively, hence this future research
would be more generalizable.
1.6. Research implications
This study has important implications for both practical business (leaders
of commercial banks, marketing managers…) and academic (researchers,
students of the business administration department…) as follow:
- The research result has been a finding so that based on it, leaders of
commercial banks will make an effective strategy to enhance customer
satisfaction and improve operational efficiency. Marketing managers
will consider the factors that affect customers‟ intention to use mobile
banking to set up an appropriate communicate strategy.
- The results of this study are a basis for researchers, students for
developing further research to practical applications.
[ 16 ] 1.7. Thesis structure
This thesis organizes in five chapters. The first chapter is the introduction
chapter. Furthermore, this chapter describes the overview of research
backrground, research problem, and objective. Hence, the scope of research,

examined the mobile banking in Ho Chi Minh City. Finally, this chapter
discussed the research implications.
The most important thing to remember is that mobile banking provide vast
amount of opportunities to the commercial banks and customers. This is a fact
acknowledged all over the world, and not the least in Ho Chi Minh City where
mobile usage in general are very popular.
It may seem that there is nothing to study in Ho Chi Minh City related to
customer acceptance of mobile banking services, due to the fact this services is
very useful for everybody. All the more reason, it is interesting and important to
distinguish what are the factors that affect customer‟s intention to use mobile
banking services.
[ 18 ] CHAPTER 2: LITERATURE REVIEW
Before carrying out the survey on the effect factors of intention to use
mobile banking, this chapter provide a theoretical background about Technology
Acceptance Model, Theory of Planned Behaviour. Base on these, the conceptual
research model and hypotheses are constructed.
1.1. Theoretical background
1.1.1. Technology Acceptance Model

behavior. Attitude (A) explains the feeling of a person‟s favorable or unfavorable
assessment regarding the behavior in question. Furthermore, a favorable or
unfavorable attitude is a direct influencing to the strength of behavior all beliefs
about the likely salient consequences. Accordingly, attitude (A) is equated with
attitudinal belief (Bi) linking the behavior to a certain outcome weighted by an
evaluation of the desirability of that outcome (Ei) in question, i.e.A = ∑Bi*Ei.
Subjective norm (SN) expresses the perceived organizational or social pressure
of a person while intending to perform the behavior in question. In other word,
subjective norm is relative to normative beliefs about the expectations of other
persons.
It can be depicted as individual‟s normative belief (NBi) concerning a
particular referent weighted by motivation to comply with that referent (MCi) in
question, i.e.SN = ∑NBi*MCi. Perceived behavioral control (PBC) reflects a
person‟s perception of ease or difficulty toward implementing the behavior in
interest. It concerns the beliefs about presence of control factors that may
facilitate or hinder to perform the behavior. Thus, control beliefs about resources
and opportunities are the underlying determinant of perceived behavioral control
[ 20 ] and it can be depicted as control beliefs (CBi) weighted by perceived power of
the control factor (PFi) in question, i.e. PBC= ∑CBi* PFi. In sum, TPB is
propose to eliminate the limitations of the original model in dealing with the
behavior over which people have incomplete volitional control.

Figure 2: Theory of Planned Behaviour
1.2. Research model and hypotheses
Based on the literature review, such as Technology Acceptance Model
(TAM) and Theory of Planned Behaviour (TPB), this research proposes the
research model indicated in Figure 3, including the five factors that have impact

Previous research findings have shown the positive influence of perceived
usefulness toward the adoption and usage of an information system (Davis, 1989;
Luarn & Lin, 2005).
Perceived ease of use refers to the degree to which one believes that using
an information system is free from effort (Davis, 1989). Previous research works
have found that “Perceived ease of use” has positive influenced on intention to
use of technology (Davis, 1989; Luarn & Lin, 2005). With research on the
customers‟s intention to use mobile banking in China, Luarn & Lin (2005) found
Intention
to use

Subjective
norm
Perceived
behavioral control
Perceived
ease of use

Perceived
usefulness

Attitude

H1
H2
H3
H4
H5
 Gender
 Marital

H3: There are significant positive relationship between attitude and
intention to use mobile banking.
Subjective norm
This construct was promoted by Fishbein & Ajzen (1975), and was
developed by Mathieson (1991). Subjective norm refers to the perceived social
[ 23 ] pressure to perform a behavior; according to what others say or do is important
(Mathieson, 1991, p.34). Accordingly, subjective norm is a social force and
relates to the normative beliefs about the expectation from relevant persons. In
this research, subjective norm is define as customers consider the normative
expectations of others they view as important, such as family, friends, and
colleague, to decide if whether they use mobile banking services. Previous
studies have explored the importance of such construct in social science studies
including in banking studies by Nysveen (2005) who examined mobile banking
usage in Norway, and found the subjective norm is an important driver for
mobile chatting usage among the Norwegians. Thus, the following hypothesis is
proposed:
H4: Subjective norm positively affects intention to use mobile banking.
Perceived behavioral control
Perceived behavioural control refers to the constraints to technology usage
(Taylor & Todd, 1995). It refers to people's perceptions of their ability to
perform a given behavior. Drawing an analogy to the expectancy-value model of
attitude, it is assumed that perceived behavioral control is determined by the total
set of accessible control beliefs, i.e., beliefs about the presence of factors that
may facilitate or impede performance of the behavior. Specifically, the strength
of each control belief (c) is weighted by the perceived power (p) of the control
factor, and the products are aggregated, as shown in the following equation. To
the extent that it is an accurate reflection of actual behavioral control, perceived

- Perceived behavioural control: “refers to the constraints to technology
usage” (Taylor & Todd, 1995).
The reviewed literature works as a good basis in developing a research
model to measure the factors that influence customers‟ intention to use mobile
banking and their decision on whether or not to use the bank‟s mobile banking
services.
[ 25 ] CHAPTER 3: METHODOLOGY
This chapter introduces research methodology and use to test the research
model in previous session. It presents the research design, development of survey
questionnaire, qualitative study, and main survey. This chapter also defines how
to collect data and analyse the data collected to test the research hypotheses
proposed in chapter 2.
3.1. Research design
This study used two research methods. The first phase, qualitative
research identifies the models, factors, suitable measurement variables for
research in HCMC. Through the previous relevant researches, the questionnaire
was built then running the pilot test for checking the efficiency and the meaning
of the questions. The pilot test was purposed to explore and define the relevant
items and building a completed questionnaire. The second phase, quantitative
survey was the main approach of this study. The goal is to identify the factors
affecting customers‟ intention to use mobile banking services.
Research process includes the steps as illustrated in Figure 4: