Impacts of social networks on consumers' trust and behavior in the Vietnamese retail sector

The goal of the study is to analyze social networking related factors influencing consumers’ trust and intent to purchase online via social networks in the Vietnamese market. The model of social commerce adoption of Hajli is used as the primary research framework to analyze the factors affecting Vietnamese consumers’ trust when purchasing goods through Social Networks
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Impacts of social networks on consumers’ trust and behavior in the Vietnamese retail sector VNU Journal of Science: Economics and Business, Vol. 36, No. 2 (2020) 26-38 Original Article Impacts of Social Networks on Consumers’ Trust and Behavior in the Vietnamese Retail Sector Luu Thi Minh Ngoc1,*, Nguyen Thi Trang Nhung2, Nguyen Phuong Mai3, Dao Phu Quy1 1 VNU University of Economics and Business, Vietnam National University, Hanoi, 144 Xuan Thuy, Cau Giay, Hanoi, Vietnam 2 Faculty of Business Administration, Hanoi University of Industry, 298 Cau Dien, Bac Tu Liem, Hanoi, Vietnam 3 International School, Vietnam National University, Hanoi, 144 Xuan Thuy, Cau Giay, Hanoi, Vietnam Received 5 November 2019 Revised 06 March 2020; Accepted 06 March 2020 Abstract: The goal of the study is to analyze social networking related factors influencing consumers’ trust and intent to purchase online via social networks in the Vietnamese market. The model of social commerce adoption of Hajli (2015) is used as the primary research framework to analyze the factors affecting Vietnamese consumers’ trust when purchasing goods through Social Networks [1]. Research results through a Google Form online questionnaire survey with a sample size of 1037 consumers, identified four elements of social networks affecting consumers’ trust including forums and groups, ratings and reviews, reference groups and information security. In addition, this study also proved that perceived usefulness had both a direct and indirect impact on consumers’ online purchasing intention through trust. Keywords: Perceived usefulness, social network, retail trade, TAM, trust, Vietnam. 1. Introduction * million people) has been involved in online shopping with annual purchases worth $350 per According to the E-commerce Report 2017 head. The total revenue of B2C online sales issued by the Vietnam E-commerce and reached $10 billion in 2016, accounting for 5% Information Technology Agency, 30% of of the country’s total revenues of goods and Vietnam’s population (approximately 27 services. This figure seems quite high but still _______ disproportionate with the country’s potential * Corresponding author. despite significant improvements and E-mail address: ltmngoc@vnu.edu.vn investments L.T. Min telecommunication https://doi.org/10.25073/2588-1108/vnueab.4289 infrastructure, online payments, business 26 L.T.M. Ngoc et al. / VNU Journal of Science: Economics and Business, Vol. 36, No. 2 (2020) 26-38 27 supporting platforms, and online selling. One of and their behavior, [6] while other studies the reasons why consumers are still reluctant to demonstrate that many suppliers can easily do online shopping is they do not have full trust exploit online consumers [8]. in this format: 50% have not yet bought online This research aims to investigate the as it is challenging to check product quality; impacts of social networks on the trust and 48% do not trust sellers while another 48% purchase intentions of consumers and suggest believe that they can shop in stores, solutions to build up and maintain consumers’ supermarkets, and convenience stores more trust in online selling channels in order to quickly and conveniently. promote their purchase intentions. Previous studies indicate that trust The rest of this paper is structured into five represents a vital factor in the decision-making parts. Part 2 summarizes the theoretical process as well as the development of business background and research model. Part 3 presents brands. Research models on purchasing the methodology. Part 4 discusses the findings behavior have confirmed the positive role of of this research. The limitations and trust in purchasing intentions. Typically, the implications of this research are mentioned in research by Gan and Wang (2017) looked into Part 5. Finally, Part 6 concludes this paper. purchasing intentions based on the two elements of trust and perceived value when consumers evaluate a product or service in the 2. Theoretical Background and Research Model context of e-commerce [2]. The research by Kim et al. (2008) constructed a purchasing 2.1. Purchasing on Social Network intention model based on three elements: consumers’ trust, awareness of benefits and Purchasing on the social network has awareness of risks [3]. become a more accessible way of shopping and Given online shopping as a form of has developed more widely in the world in interaction with suppliers, trust is also recent years. Academic research of Singh and considered a property ...