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

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 were employed to design a questionnaire measured with five-point Likert scale. The respondent data from online survey by convenience sampling were analyzed by GM(1, N) model to explore the effect of confidence and security on online shopping intention. The results show that trust of goods quality, online prestige, and service quality rank as the first to third most significant factors while trust of security system, transact system, payment system and information as fifth to eighth place. That means consumers always believe online commodities even they do not touch the goods. In contrast, no matter how many efforts have been made to improve security, transact, payment and information, consumers’ trust on these functions still have less influence on purchase intention. It is suggested that online shopping vendors should try to upgrade product/service quality to preserve reputation rather than focus on the promotion of information to increase customers’ confidence. 

Key words: GM(1, N); consumer confidence; transaction security; online shopping; trust

JEL codes: M31