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FACTORS INFLUENCING THE INTENTION TO USE MOBILE SHOPPING ON SMARTPHONES AMONG MALAY AND NON-MALAYSIAN CHINESE STUDENTS

IN IIUM

BY

CAI YONGFANG

A dissertation submitted in fulfilment of the requirement for the degree of Master of Science (Marketing)

Kulliyyah of Economics and Management Sciences International Islamic University Malaysia

AUGUST 2019

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ABSTRACT

Despite the significant literature on mobile shopping in international settings, much more needs to be explored and investigated in the case of Malaysia. This study investigated the factors influencing the intention to use mobile shopping on smartphones among Malay and Chinese students in IIUM. It adopted a quantitative approach by conducting surveys among consumers in IIUM based on the extended Technology Acceptance Model (TAM). This research shows that perceived usefulness, perceived ease of use, perceived privacy, perceived trust, and perceived enjoyment are key determinants influencing consumers’ attitude towards an intention to use mobile shopping. The questionnaire data are collected from 350 students in IIUM. Partial Least Squares (PLS) is employed to test the research model and hypotheses. The findings reveal that perceived usefulness, perceived ease of use, perceived trust, and perceived enjoyment have a direct and significant positive influence on attitude, while perceived privacy has an insignificant impact on attitude. Also, all independent variables used in this study have an indirect positive impact on the intention mediated by attitude, and only perceived privacy does not have a positive impact on intention mediated by attitude.

Therefore, the findings indicate that perceived usefulness, perceived ease of use, perceived trust, perceived enjoyment and consumer’s attitude are factors affecting the intention to use mobile shopping on smartphones among Malay and Chinese students in IIUM.

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ثحبلا ةصلاخ

نم مغرلا ىلع رفوت

ةلوملمحا ةزهجلأا برع قوستلبا ةصالخا ةيملعلا ثوحبلاو تاساردلا نم يرثكلا في

،لماعلا

يازيلام في اهفاشكتسا نكيم تيلا قوستلا عوضوبم ةقلعتلما ءايشلأا نم ديدعلا كانه لازي لا هنأ لاإ .

فدته

ةعمالجا نم ينينيصلاو ينيزيلالما ةبلطلا ةبغر ىلع رّثؤت تيلا لماوعلا مهأ فاشكتسا لىإ ةساردلا هذه يازيلابم ةيلماعلا ةيملاسلإا في

ةيكذلا فتاولها مادختسا جهنم ىلع ةساردلا دمتعت امك .قوستلا لجأ نم

ةيلماعلا ةيملاسلاا ةعمالجا يكلهتسم ءاصقتسا هللاخ نم فدهتسي يمك جذونم ىلع اًدانتسا IIUM

( ةعسولما ايجولونكتلا لوبق TAM

.) ،ةوجرلما مادختسلاا ةلوهسو ،ةعقوتلما ةدئافلا نأ ةساردلا هذه حضوت

لما ةقثلاو ،ةضترفلما ةيصوصلخاو لماوع دعت عقوتلما عتملما مادختسلااو ،ةرظتن

ةيرهوج فقوم ىلع رثؤت

.ةلوملمحا ةزهجلأا برع قوستلل ينكلهتسلما

نم نايبتسلاا تناايب عجم تم 315

اًبلاط ةيملاسلإا ةعمالجا في

.يازيلابم ةيلماعلا

تم امك ( ةيئزلجا ىرغصلا تاعبرلما مادختسبا تايضرفلاو ةساردلا جذانم رابتخا PLS

.) نمو

يه ةساردلا هذه نم اهيلع لصلمحا جئاتنلا ةرظتنلما ةقثلاو ،ةوجرلما مادختسلاا ةلوهسو ،ةعقوتلما ةدئافلا نأ

ىلع رشابم بيايجإ يرثتأ اله عقوتلما عتملما مادختسلااو ينكلهتسلما فقوم

ةضترفلما ةيصوصلخا نأ ينح في ،

ىلع يربك يرثتأ اله سيل ينكلهتسلما فقوم

. اضلإبا هذه في ةمدختسلما ةلقتسلما تايرغتلما عيجم ،كلذ لىإ ةف

رشابم يرغ بيايجإ يرثتأ اله ةساردلا نوكلهتسلما اهلضفي تيلا ةبغرلا ىلع

سيل ةضترفلما ةيصوصلخا نأ لب ،

.اهيلع بيايجإ يرثتأ يأ اله ،ةوجرلما مادختسلاا ةلوهسو ،ةعقوتلما ةدئافلا نأ لىإ ةساردلا جئاتن يرشت ،كلذل

او بلاطلا ةبغر ىلع رثؤت لماوع اهلك ،كلهتسلما فقوم لىإ ةفاضلإبا ،وجرلما مادختسلااو ،ةرظتنلما ةقثل

يازيلابم ةيلماعلا ةيملاسلإا ةعمالجا في ةيكذلا فتاولها مادختسا في ينينيصلاو ينيزيلالما

. IIUM

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APPROVAL PAGE

Approval Page

I certify that I have supervised and read this study and that in my opinion, it conforms to acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a dissertation for the degree of Master of Science (Marketing).

………..

Wan Jamaliah Wan Jusoh Supervisor

I certify that I have read this study and that in my opinion it conforms to acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a dissertation for the degree of Master of Science (Marketing).

………..

Rozailin Abdul Rahman Internal Examiner

………..

Nur Fariza Mustaffa Internal Examiner

This dissertation was submitted to the Department of Business Administration and is accepted as a fulfilment of the requirement for the degree of Master of Science (Marketing).

………..

Noor Hazilah Abd Manaf Head, Department of Business Administration

This dissertation was submitted to the Kulliyyah of Economics and Management Sciences and is accepted as a fulfilment of the requirement for the degree of Master of Science (Marketing).

………..

Hassanuddeen Abd. Aziz Dean, Kulliyyah of Economics and Management Sciences

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DECLARATION

Declaration

I hereby declare that this dissertation is the result of my own investigations, except where otherwise stated. I also declare that it has not been previously or concurrently submitted as a whole for any other degrees at IIUM or other institutions.

Cai Yongfang

Signature ... Date ...

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INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA Copyright

DECLARATION OF COPYRIGHT AND AFFIRMATION OF FAIR USE OF UNPUBLISHED RESEARCH

FACTORS INFLUENCING THE INTENTION TO USE MOBILE SHOPPING ON SMARTPHONES AMONG MALAY AND CHINESE

STUDENTS IN IIUM

I declare that the copyright holders of this dissertation are jointly owned by the student and IIUM.

Copyright © 2019 Cai Yongfang and International Islamic University Malaysia. All rights reserved.

No part of this unpublished research may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the copyright holder except as provided below 1. Any material contained in or derived from this unpublished research may

be used by others in their writing with due acknowledgement.

2. IIUM or its library will have the right to make and transmit copies (print or electronic) for institutional and academic purposes.

3. The IIUM library will have the right to make, store in a retrieved system and supply copies of this unpublished research if requested by other universities and research libraries.

By signing this form, I acknowledged that I have read and understand the IIUM Intellectual Property Right and Commercialisation policy.

Affirmed by Cai Yongfang

……..……….. ……..………..

Signature Date

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ACKNOWLEDGEMENTS

All praise and thanks are due to Allah SWT, the Lord of the world and peace be upon the Messenger Muhammad, his family and companions.

Firstly, I am most indebted to all lectures especially Associate Professor Dr. Wan Jamaliah Wan Jusoh, and Assistant Professor Dr. Nurita Juhdi for their continuous support. I thank them for their academic advice, insightful remarks, constructive criticism and devotion and care during the course of my thesis journey.

I am grateful to all my beloved friends who provided their time, effort and support for this project, and for their invaluable assistance and support during my study period. I can never thank you enough for your kindness, may Allah SWT reward you and your family.

Finally, it is my utmost pleasure to dedicate this work to my dear parents and beloved family for their continuous love, encouragement and prayers.

May Allah accept all our good deeds.

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TABLE OF CONTENTS

Abstract ... i

Abstract in Aribic ... ii

Approval Page ... iii

Declaration ... iv

Copyright ... v

Acknowledgements ... vi

List of Tables ... x

Lis of Figures ... xii

CHAPTER ONE: INTRODUCTION ... 1

1.1 Introduction... 1

1.2 Research Background ... 1

1.2.1 M-shopping in Malaysia ... 3

1.2.2 M-shopping in China... 6

1.3 Statement of the Problem... 9

1.4 Objectives of the Study ... 11

1.5 Research Questions ... 12

1.6 Significance of the Study ... 13

1.7 Scope of the Study ... 15

1.8 Definition of Key Terms ... 15

1.9 Organisation of Chapters ... 17

1.10 Chapter Summary ... 18

CHAPTER TWO: LITERATURE REVIEW ... 19

2.1 Introduction... 19

2.2 Mobile Shopping Development ... 19

2.2.1 Development of Mobile Shopping in Malaysia ... 20

2.2.2 Development of Mobile Shopping in China ... 23

2.3 Technology Acceptance Model (TAM) ... 25

2.4 Conceptual Model Development ... 29

2.4.1 Perceived Usefulness and Attitude ... 29

2.4.2 Perceived Ease of Use and Attitude ... 31

2.4.3 Perceived Privacy and Attitude ... 32

2.4.4 Perceived Trust and Attitude ... 34

2.4.5 Perceived Enjoyment and Attitude ... 35

2.4.6 Attitude Towards Intention to Use M-shopping ... 37

2.4.7 Intention to use M-shopping ... 38

2.4.8 Attitude as a Mediator ... 39

2.5 Hypothesis Development ... 40

2.5.1 Perceived Usefulness and Attitude ... 40

2.5.2 Perceived Ease of Use and Attitude ... 41

2.5.3 Perceived Privacy and Attitude ... 42

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2.5.4 Perceived Trust and Attitude ... 43

2.5.5 Perceived Enjoyment and Attitude ... 44

2.5.6 Attitude and Intention to Use M-shopping ... 44

2.5.7 Mediation Effect of Attitude ... 45

2.6 Conceptual Framework ... 47

2.7 Chapter Summary ... 48

CHAPTER THREE: METHODOLOGY ... 49

3.1 Introduction... 49

3.2 Research Design ... 49

3.3 Research Method ... 52

3.4 Sampling Design ... 53

3.4.1 Sampling Technique ... 53

3.4.2 Population and Sample Size Determination ... 53

3.5 Questionnaire Development ... 54

3.5.1 Face Validity ... 59

3.5.2 Pre-Testing ... 59

3.5.3 Back to Back Translation ... 60

3.6 Data Collection Method ... 60

3.7 Data Analysis ... 61

3.7.1 Preliminary Data Analysis ... 62

3.7.2 Partial Least Squares (PLS) Analysis ... 62

3.8 Chapter Summary ... 63

CHAPTER FOUR: DATA ANALYSIS AND FINDINGS ... 64

4.1 Introduction... 64

4.2 Demographic Profile of the Respondents ... 64

4.3 Descriptive Analysis Results ... 69

4.4 Reliability Analysis ... 75

4.5 Measurement Model ... 75

4.6 Structural Model ... 81

4.6.1 Collinearity Assessment ... 83

4.6.2 Assessment of The Path Coefficient (β) ... 83

4.6.3 Coefficients of Determination (R²) ... 84

4.6.4 Effect Size (ƒ²) ... 85

4.6.5 Predictive Relevance (Q²) ... 86

4.7 Hypothesis Testing ... 87

4.8 Mediating Analysis ... 92

4.9 Chapter Summary ... 95

CHAPTER FIVE: DISCUSSION AND CONCLUSION ... 97

5.1 Introduction... 97

5.2 Discussion of the Research Questions ... 97

5.3 Research Implications ... 102

5.3.1 Theoretical Implications ... 102

5.3.2 Practical Implications ... 104

5.3.3 Limitations and Future Studies ... 105

5.4 Conclusion ... 106

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REFERENCES ... 107

APPENDIX I:Reliability Analysis ... 118

APPENDIX II: Measurement Model ... 120

APPENDIX III: Structural Model ... 121

APPENDIX IV: Questionnaire ... 122

APPENDIX V: Questionnaire Mandarin ... 128

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LIST OF TABLES

Table 1. 1 Mobile Network Operators in Malaysia 4

Table 1. 2 List of Banks Offering Mobile Banking Services 5

Table 1. 3 Smartphone Usage 6

Table 2. 1 Top 10 shopping apps in Malaysia 22

Table 2. 2 Top 10 shopping apps in China 24

Table 2. 3 Summary of Literature on Mobile Shopping Use 28

Table 3. 1 Questionnaire Items 56

Table 4. 1 Demographic Profile 65

Table 4. 2 Kulliyyah 66

Table 4. 3 Frequency of mobile phone transactions 67

Table 4. 4 The kind of product mostly purchased via mobile phone 68 Table 4. 5 Spending (RM) on mobile shopping in one month 68 Table 4. 6 Mean and Standard Deviation for Items in the Variables 72

Table 4. 7 Reliability Analysis 75

Table 4. 8 Convergent Validity 79

Table 4. 9 Discriminant Validity of Constructs 80

Table 4. 10 Loading and cross-loadings 80

Table 4. 11 Collinearity Assessment (VIF) 83

Table 4. 12 Path Coefficients 84

Table 4. 13 Coefficients of Determination (R²) 85

Table 4. 14 Effect Size ƒ² 86

Table 4. 15 Predictive Relevance (Q²) 86

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Table 4. 16 Hypothesis Testing Result 92

Table 4. 17 Mediating Analysis 93

Table 4. 18 Summary of the Hypothesis Testing 96

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LIST OF FIGURES

Figure 2. 1 Technology Acceptance Model (Davis, 1989) 26

Figure 2. 2 Conceptual Framework 48

Figure 4. 1 Measurement Model—Showing AVE 77

Figure 4. 2 Structural Model—Showing P-value 82

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CHAPTER ONE INTRODUCTION

1.1 INTRODUCTION

This chapter presents the background of the study and describes the current phenomena in mobile commerce usage as a means to increase business transactions, as well as improve the telecommunication industry. It also explains the current position of mobile shopping penetration in the region. This is followed by the statement of the problem, research objectives, research questions, and the significance and scope of the study.

Lastly, the conceptual definitions of the key terms are given to provide clear guidelines for understanding the research topic.

1.2 RESEARCH BACKGROUND

Mobile commerce (m-commerce) is any activity involving the execution of currency transactions directly or indirectly through a wireless telecommunications network (Yang et al., 2015). With the development of wireless communication technologies, mobile commerce or m-commerce is regarded as a business model adopted by emerging markets. M-commerce is an extension of e-commerce, whereby the transactions of businesses are conducted in an Internet environment using mobile devices. M- commerce involves electronic transactions between buyers and sellers using mobile communication devices such as mobile phones, personal digital assistants, or laptop computers (Sari & Bayram, 2015). It is a new stage of e-commerce, with many unique

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advantages and much potential such as time efficiency, universal use, and more personalisation (Zhang et al., 2012).

In the increasingly powerful environment of mobile technology, the maturity of mobile network technology and the Internet of things, as well as the widespread use of mobile devices, such as smartphones, laptops and tablets, provide mobile commerce with strong market potential and justifies its position as a new business model (Hampshire, 2016). Compared with e-commerce, m-commerce refers to transactions through the wireless connection of mobile devices and offers greater ubiquity and accessibility to the users (Mahapatra, 2016). Given that mobile commerce is accessed via the user’s mobile devices, it has higher accessibility and personality than e- commerce (Marinkovic et al., 2017).

Moreover, mobile shopping is the future of shopping, and its primary gateway is mobile devices. Simply put, m-shopping equals m-commerce and is increasingly becoming the leading channel for shopping and changing consumer shopping habits.

The opportunities presented by mobile shopping are reflected in the growth of mobile phones. The number of mobile phone users globally will surpass five billion in 2019, according to a study released by the Global System Mobile Association (GSMA). Mats Granryd, GSMA Director General stated that “Mobile is a global platform that today supports two-thirds of the world’s population, delivering the connectivity and infrastructure that is powering new digital economies and addressing social-economic challenges”.

Technological advancements offer opportunities for consumers to exercise their choice of shopping channel. As a shopping channel, m-shopping is one of the fastest- growing businesses today. It represents approximately 35 percent of all retail e- commerce transactions globally (Criteo, 2016). Consumers can execute transactions on

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a smartphone instantaneously, anytime and anywhere as it is personal and handy (Hsieh, 2014). The new channel of purchase on smartphones refers to retail m-commerce. Lai et al. (2013) note that mobile shopping “empowers shoppers with the ability to gather information on the spot from multiple sources, check on product availability, special offers and alter their selection at any point along the path to purchase”.

1.2.1 M-shopping in Malaysia

In Malaysia, although the development of m-commerce is still in its infancy, it has seen speedy growth in mobile Internet penetration. The Department of Statistic Malaysia in 2017 showed that 69.7 percent of the total population (32.0 million) were aged 15-64 years of whom 97.7 percent are using mobile phones. In December 2017, the number shot up to 3.5 million mobile online transactions. According to current trends to reflect these statistics, the consumer is looking for greater convenience than traditional shopping. Further, advanced information technology is a positive stimulus of purchase decisions which presents a huge opportunity to capitalise on technology as a business medium in this digital era (Wei et al., 2008).

According to the World Bank, Malaysia’s 140 percent mobile penetration rate is leading Indonesia, Thailand and even the United States. Only Singapore and Vietnam in Southeast Asia has higher mobile penetration than Malaysia (Wong, 2014). From three major players, it has grown and increased to 20 mobile network operators (Table 1.1). The four major mobile network providers in Malaysia are Celcom, Digi, Maxis, and U Mobile. Overall, the total active mobile subscribers in Malaysia is 41,324,700.

The majority of customers are using prepaid services compared to post-paid services (Goi, 2016). Hence, there is a significant telecommunications infrastructure to support

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the growing number of Internet users and attract business to join the digital market (Dileep et al., 2015).

Table 1. 1 Mobile Network Operators in Malaysia

No. Mobile Network Operators

1 ALTEL

2 Buzz me

3 Celcom

4 Clixster

5 DiGi

6 FRiENDi Mobile

7 Maxis

8 Merchantrade

9 MY Evolution

10 P1

11 Redone

12 Smart Pinoy

13 SpeakOut Wireless

14 TM

15 Telin Malaysia

16 Tron

17 TuneTalk

18 U Mobile

19 XOX COM

20 Yes 4G

Source: OpenSignal (2016)

From the marketers’ perspective, these trends offer a personal touch, a scheme for commerce to m-commerce. Advanced mobile technologies and services have changed the interaction between retailers and customers for a better shopping experience and increase personal customer engagement. More than these, the rise of affiliate services and marketplaces help marketers to promote their products. Many marketing strategies on m-shopping lure consumers. Overall, consumers see m- shopping as a tool to help them to shop and pay. While marketers see this trend as a new opportunity to capitalise on this emerging trend (Mahapatra, 2017).

The introduction of mobile banking has also boosted the implementation and development of mobile shopping. Maybank is the first financial institution in Malaysia

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to introduce m-banking services in 2002 through SMS services. Maybank moved a step further in 2006 to introduce M2U mobile and M2UMap in 2009 (Maybank, 2009). The introduction of mobile banking effectively improved operations and reduced transaction costs. Eight local financial institutions and five foreign financial institutions offer mobile banking in Malaysia (Table 1.2). Bank Islam Malaysia Berhad (BIMB) is a commercial bank that introduced mobile banking systems to its customers. By spreading mobile banking, BIMB motivates mobile consumption and increases the ubiquity of mobile banking. M-money is on a mission to change both the convenience and infrastructure in Malaysia of mobile payments (Wong, 2014).

Table 1.2 List of Banks Offering Mobile Banking Services

Bank Status

Al Rajhi Banking & Investment Corporation (Malaysia) Berhad

Foreign bank

AmBank (M) Berhad Local bank

Bank Islam Malaysia Berhad Local bank

Bank Simpanan Nasional Local bank

CIMB Bank Berhad Local bank

Citibank Berhad Foreign bank

Hong Leong Bank Berhad Local bank

HSBC Bank Malaysia Berhad Foreign bank

Malayan Banking Berhad (Maybank) Local bank

OCBC Bank (Malaysia) Berhad Foreign bank

Public Bank Berhad Local bank

RHB Bank Berhad Local bank

Standard Chartered Bank Malaysia Berhad Foreign bank Source: Bank Negara Malaysia (2017)

M-commerce market size was RM4.8 billion in 2016 and it is estimated to reach RM5.7 billion by 2020 (Mobile Economy, 2017). In terms of mobile shopping, 78 percent of mobile Internet users will choose online shopping, and more than 85 percent

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of users spend at least RM500 per month (Cheng, 2017). If compared with traditional e-commerce, growth in 2011 only increased by 9 percent (Lee and Wong, 2016).

Customer use of mobile phones focused on three main activities, which are SMS, voice calls and social networks (Table 1.3) (Wong, 2014). Electronic products are the most popular product categories purchased using mobile phones. This is followed by items such as fashion and accessories, food and beverage, health and beauty, and home products (Wong, 2014).

Table 1. 2 Smartphone Usage

No Smartphone usage Percentage (%)

1 ‘ 91%

2 Browse Internet 71%

3 Social network 69%

4 Voice calls 67%

5 Apps usage 54%

6 Emails 53%

7 Instant message 48%

8 Video clips 40%

Source: Wong (2014)

1.2.2 M-shopping in China

According to Jack Ma, founder of Alibaba, “In the US, e-commerce is just online shopping. In China, e-commerce is a lifestyle.” Alibaba went public on the New York Stock Exchange in September 2014 and raised $25 billion to become the largest initial public offering in history. It rises symbolises the breakneck growth of China's Internet and e-commerce sectors. In 2017, China had 731 million Internet users and 695 million mobile Internet users. They use the Internet more for entertainment and consumption - SMS, social network sharing, online gaming, movie, and video streaming and shopping - network (Ma, 2017). According to CHINADAILY (Xinhua, 2017), 64.9 percent of the

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population was between the ages of 16 and 59 in 2017, which has brought tremendous changes to China's consumer market. According to the data released by the China Internet Network Information Centre (CNNIC), China Mobile payment has more than 500 million users. About 400 million users are shopping on smartphones, with revenue of 157.55 trillion yuan in 2016.

Due to major state investment in telecommunication infrastructure and a relatively underdeveloped physical retail sector, China has witnessed a boom in online retail, which offers consumers with a better variety, lower prices, and greater convenience. The convenience of mobile shopping and the maturity of the smartphone market where there are smarter smartphone brands created and with lower prices has stimulated and attracted customers to enjoy mobile shopping anytime and anywhere.

This has made mobile commerce an important part of the Chinese economy. Currently, the huge potential market for m-payment has attracted various service providers in China to provide m-payment services. For example, Alipay, the most popular third-party online payment platform, recently released its Alipay Wallet. Tencent’s WeChat Pay also incorporated m-payment into its system. As of 2017, Alipay had more than 520 million users and the first 10 months of 2017, the volume of mobile payments transactions approximately $12.8 trillion (Cheng, 2017). In addition, China's three major mobile operators, China Mobile, China Telecom and China Unicom have all invested heavily in system upgrades. In July 2014, they jointly announced plans to build a national 4G network capable of providing fast mobile broadband to a billion users.

Mobile shopping and payments come hand in hand. The rising popularity of Chinese mobile payment systems has facilitated m-commerce. Since June 2010, the People's Bank of China has issued over 200 licences to non-financial institutions to provide third-party payment services and declared a national mobile payment standard.

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These two developments have led to explosive growth in the Chinese mobile payments market, which reached $9 trillion in 2016, according to iResearch Consulting Group (Cheng, 2017).

One of the interesting characteristics of the Chinese market, for both academicians and practitioners, is that, although m-payment evolved from the convergence of payment and telecommunication industries (traditionally dominated by state-owned enterprises in China), it was private, third-party payment companies that developed m-payment platforms, which gained a competitive edge over state-owned enterprises (Jahangir & Begum, 2008). Many other third-party e-payment systems have emerged. The past several years witnessed the popularity of mobile commerce applications, such as mobile shopping, mobile travel service, online to offline (O2O) consumption, etc.

China has the world's largest mobile subscriber base: the number of mobile subscribers in China reached 1.44 billion as of February 2018 (Kielty, 2018). 4G is also developing robustly in China, and the number of 4G users reached over 888 million (Roth, 2018). At the same time, 5G has already been rolled out and will further boost the growth of mobile Internet usage. In light of these and other recent developments, for instance, a large number of mobile subscribers and mobile Internet users, by 2019, mobile users in China will spend nearly $1.5 trillion on mobile commerce, which will amount to nearly a quarter of the country’s retail market (eMarketer, 2016). It is evident that there are a huge market and growth potential in China.

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1.3 STATEMENT OF THE PROBLEM

This study examines the smartphone user’s intention to use mobile shopping on smartphones among students in IIUM. According to the latest data from Malaysian Communication and Multimedia Commission (MCMC, 2017), by the end of 2017, 50.3 percent of e-commerce traffic is from mobile phones compared with only 49.7 percent of computers, in which, m-commerce sales in 2014 were $204 billion and it is expected to reach as much as $626 billion in 2018 (Wong, 2016). In China, as reported by Euromonitor International (2016), 66 percent of digital purchases were executed through a mobile device, which equates to $450.3 billion in mobile-based purchases and accounts for 70 percent of goods of digital purchases. Based on the data provided above, Malaysia and China offer huge potential perspectives on the study of M- shopping adoptions. In Malaysia, along with the increased in the number of mobile subscribers, the network penetration rate is high, and the online payment market has great potential for development (Holmes et al., 2013). In comparison, China has a higher adoption of m-commerce than Malaysia. The widespread usage of M-shopping activities in Malaysia remains lower for consumers to conduct transactions for goods or services by using the mobile phone. After review from the resources, the key question faced by telecommunication providers is how to attract the potential customers into m- shopping adoption.

Therefore, this study is undertaken for the following reason:

Previous studies mostly focused on electronic commerce (Chong, Chan & Ooi, 2012; Alduaij & Amari, 2016; Marinkovic & Kalinic, 2017), and mobile commerce (Chang, Chen & Zhou, 2009; Hadadi & Almsafir, 2014; Duane, Oreilly & Andreev, 2014) adoption. Thus, this study focuses on the intention to use mobile shopping on a smartphone.

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Most studies focused on the state and characteristics of mobile commerce (Thakur & Srivastava, 2013; Alduaij & Amari, 2016; Zhang, Zhu, & Liu, 2012). Hence, this study focuses on the influence of mobile shopping attitude and intention to use among smartphone users.

Previous studies have mostly focused on using TAM to analyse consumers, mobile shopping behaviour, using only analytics to perceived usefulness and perceived ease of use to analyse the mobile shopping status. (Holmes et al., 2013; Alduaij & Amari, 2016; Alshurideh, 2016). Therefore, this study focuses on the use of TAM's five expansion factors (perceived usefulness, perceived ease of use, perceived privacy, perceived trust and perceived enjoyment) to investigate the intentions to use mobile shopping on a smartphone.

In previous studies, researchers have focused on the mobile commerce usage in Malaysia only (Wong and Hiew, 2005; Eza & Ten, 2011) or China only (Lu & Yao et al., 2003; Liu, Zhenhua, et al., 2009; Liu & Li, 2010; Chong, 2013). In this study, we investigate the intention to use mobile shopping on smartphones among Malay and Chinese students in one sample.

Even though many studies investigated the different attitudes of consumers in mobile shopping (Holmes et al., 2013; Sari & Bayram, 2015), this study explores the relationship between consumers’ attitude and consumer behavioural intention of using mobile shopping among Malay and Non-Malaysian Chinese smartphone users in IIUM.

Many studies also used TAM (Wu & Wang, 2005; Dai & Palvi, 2009; Rajabion, 2015; Hampshire, 2017) while only a few of them focused on the attitudes through TAM that influence the consumers’ behavioural intention. Our study expands the variables in TAM by focusing on the effect of perceived usefulness, perceived ease of use, perceived privacy, perceived trust and perceived enjoyment on consumers’ intention to use mobile

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shopping on smartphones among Malay and Non- Malaysian Chinese students in IIUM.

This study will also investigate the mediating effect of attitude on perceived usefulness, perceived ease of use, perceived privacy, perceived trust, and perceived enjoyment.

1.4 OBJECTIVES OF THE STUDY

The main objective of this study is to investigate the factors influencing the intention to use mobile shopping on smartphones among Malay and Non-Malaysian Chinese students in IIUM.

The specific objectives of this study are:

1. To determine the relationship between perceived usefulness and customers’

attitude towards the intention to use m-shopping on smartphones among Malay and Non-Malaysian Chinese students in IIUM.

2. To determine the relationship between perceived ease of use and customers’

attitude towards the intention to use m-shopping on smartphones among Malay and Non-Malaysian Chinese students in IIUM.

3. To determine the relationship between perceived privacy and customers’

attitude towards the intention to use M-shopping on smartphones among Malay and Non-Malaysian Chinese students in IIUM.

4. To determine the relationship between perceived trust and customer’s attitude towards the intention to use M-shopping on smartphones among Malay and Non-Malaysian Chinese students in IIUM.

5. To determine the relationship between perceived enjoyment and customers’

attitude towards the intention to use m-shopping on smartphones among Malay and Non-Malaysian Chinese students in IIUM.

Rujukan

DOKUMEN BERKAITAN

This research had successfully achieved the objectives in investigate the relationship between Perceived Ease of Use, Perceived Usefulness, Website Design and Subjective Norm

Findings: It can be concluded that there is a significant relationship between the attitude, subjective norm, perceived ease of use, perceived usefulness,

The findings of the research of Dai, Forsythe and Kwon (2014) also proved that online shopping attitude is negatively related to perceived risks, and attitude will influence

In this study, the behavioural belief factors such as perceived usefulness, perceived ease of use, perceived security, and trust is examined to identify their

Referring to the literature reviews, it understandable that consumers’ trust is influenced by perceived usefulness, perceived ease of use, perceived reputation,

Hypotheses were tested by using SEM, it revealed that perceived convenience, perceived enjoyment and social factors positively influenced consumer’s attitude

Further, the findings reveal that the factors influencing m-commerce use among smartphone users in Malaysia are perceived usefulness, privacy and security, perceived enjoyment,

Therefore, this study aims to identify the influencing factors of perceived ease of use, the driver’s safety, attitude, and perceived usefulness towards intention to use of