Determinants of consumers’ intention to use credit card: a perspective of multifaceted perceived risk

Abstract

Purpose The purpose of this study is to develop a theoretical model for consumer behavioral intention by integrating the technology acceptance model (TAM) and the theory of perceived risk, which is tested on the intended use of credit cards in Vietnam. Design/methodology/approach The data were collected from 485 bank customers through a nationwide online survey. An exploratory and confirmatory factor analyzes were performed to validate the factor structure of the measurement items while structural equation modeling was used to validate the proposed model and testing the hypotheses. Findings The results of structural equation modeling reveal that perceived risk, perceived usefulness, social influence and perceived ease of use were significant determinants of consumer intention to use a credit card. Of them, only perceived risk discouraged the intended use of a credit card, which was synthesized from psychological, financial, performance, privacy, time, social and security risk. Research limitations/implications This study measured the first-order risk dimensions based on the payment function of the credit card only; these measurements missed potential losses relevant to credit function of credit cards. Practical implications This study can be beneficial to banks enacting policies to attract more consumers and to help decide how to allocate resources to retain and expand their customer base. Originality/value The study adds value to the literature on consumer behavior by confirming the impact of second-order perceived risk on the intended use of credit cards, which most previous studies have not demonstrated. The research also provides an empirical evidence to the academic research platform on e-banking services in Vietnam, especially related to the credit card industry.

The Effect of Perceived Ease of Use and Perceived Security Toward Satisfaction and Repurchase Intention

“…In accordance with several literatures and previous studies which had assessed several factors which could positively affect the formation of repurchase intention within consumers' minds, it was found out that perceived ease of use, perceived security and customer satisfaction as several important factors which have a big role in affecting consumers' repurchase intention in the e-commerce environment. Perceived ease of use itself could be understood as consumers or people's perception regarding the technology or system implemented by a company, in which such perception was derived from people's believe and judgement on whether or not it will consume much time, costs or energy to the new technology or system implemented by a company (Trinh et al, 2020). In the other hand, perceived security could be defined as customers or people's perception and judgement regarding whether or not it is secure enough for customer to conduct some transactions with the company (Falk et al, 2016).…”

Penggunaan e-Marketplace sebagai Mediasi antara Keunggulan e-Commerce dan Kinerja Manajemen Rantai Pasokan

“…Previous studies by Ariffin et al (2018) andTrinh et al (2020) had found out the significant and negative impact which was given by Security Risk on Consumers' Intention to Purchase or Adopt certain technology, in which, when consumers thought that there will be low (or even no) possibilities of consumers experiencing or suffering from any kinds of security breaches related with all of the data and personal information that consumers gave to the company, then such beliefs or perception could increase consumers' believe in the system, which eventually could increase or strengthen consumers' intention to use or adapt the system or technologies developed by the company. Furthermore…”

“…Security Risk could be defined as consumers' or people's judgment or perception regarding any kinds of possibilities that all personal judgment given by the customers to the company could be stolen in certain ways (Stocchi et al, 2019). Furthermore, Security Risk could also be understood as consumers' feelings or perceptions regarding whether or not the company could keep and ensure the safety of all personal and important data which the consumers store on the system developed by the company (Trinh et al, 2020).…”

“…Similar to the basic concept of Purchase Intention, Intention to Adopt could be defined as consumers' willingness to learn and use certain technologies and integrate them with how the consumers are doing their job (Ariffin et al, 2018). Moreover, Intention to Adopt could also be understood as consumers' personal decision and desire to adopt new technologies developed by a certain company that hasn't been used or adopted before by the consumers (Trinh et al, 2020).…”

The Adoption of Technology Acceptance Model (TAM) and Trust in Influencing Online Purchase Intention During the Covid-19 Pandemic: Empirical Evidence from Malaysia

“…Hence, perceived usefulness refers to the level of customers' belief in completing their purchase task through virtual stores. Past research has produced evidence that the customer's usefulness perception significantly influence customers' intention to use (Trinh et al, 2020). Further, Prakosa and Sumantika (2020) have elucidated their analysis of online shoppers' acceptance of perceived usefulness which has positively affected their attitude towards online purchase transactions.…”