Moreover, credit institutions should also focus on diversifying consumer credit products to satisfy the needs of consumers. Currently, the product package for consumers is minimal. In addition, credit institutions should coordinate with schools to implement consumer finance education activities for consumers.
These activities can be carried out in the form of workshops, extra-curricular activities to provide consumers with complete and accurate information about the credit market. Informed and knowledgeable consumers will be better for both consumer financial services providers as well as service users. Consequently, the consumer finance market in Vietnam will become more transparent and increasingly prosperous.
From the theoretical perspective, this research contributed to the existing literature in several ways. First, this study provided insights on the factors that seem to determine the intention to borrow consumer credit by using an integrative approach. Research results hint that subjective norms play a critical role in an embryonic consumer finance market. Second, this article extended TAM with anxiety, perceived trust, and perceived financial cost.
However, these factors seem to have no effect on the intention to borrow consumer credit in Vietnam from the database of this study. Consequently, it is argued that there should be more investigation about the collective impact of these factors on the behavioral intention of consumer credit borrowers. In terms of practical perspective, the results of this research provided managers of financial institutions some information about the behavior of borrowers, focusing on factors that affecting their intention.
Thus, formal financial institutions might consider their marketing and PR activities to bring transparent information and educate customers to use their products and services. Developing consumer credit in the formal sector will support pushing back black credit — a type of credit that causes significant damage and risks to Vietnamese people. The sampling method is a weakness of this study due to the difficulty in approaching financial services customers.
Moreover, the study has not addressed the impact of other demographic factors such as income, household size, past experience with consumer credit on the intention of borrowers. Therefore, future studies might add variables in the research model, expand the sample size to increase the representativeness of the research, and use a new approach to study the topic.
Click here to choose a searching target image or drag and drop a searching target image. Article Info. Abstract The purpose of this study is to examine the determinants of intention to borrow consumer credit of Vietnamese people by applying the Technology Acceptance Model TAM and extending it with several variables, including anxiety, perceived trust, and perceived financial costs extracted and adapted from the existing literature.
Introduction Over the years, the world consumer finance market has experienced inevitable ups and downs, but maintained relatively positive growth. Literature Review and Hypothesis Development 2. Consumer Credit Consumer credit has existed for years, but just has become widespread for these recent 50 years with the advent of credit cards and the growth in homeownership and mortgage loan Thomas, Intention to Borrow Consumer Credit Behavioral purpose is a presupposition that explicitly results in a particular behavior.
Determinants of Intention to Borrow Consumer Credit 2. Consequently, we formulate the following hypothesis: H1: Perceived trust PT positively influences intention to borrow consumer credit INT. Anxiety Anxiety AN determines the degree to which a person becomes anxious when it comes to action. Thus, the following hypothesis was formed.
Research Methodology 3. Research Model The research model in this study was adapted and extended from the Technology Acceptance Model TAM to examine the factors that influence intention to borrow consumer credit in Vietnam. Figure 1: Research Model 3. Sampling Method The population of this study includes Vietnamese citizens who are over 18 years old.
Results and Discussions 4. SEM Analysis Structural equation modeling SEM analysis was run to examine the effect of determinants on the intention to borrow consumer credit of Vietnamese people. Discussion and Implications This study shed light on the effect of independent variables on the intention to borrow consumer credit in the Vietnamese consumer finance market.
Conclusion and Limitations From the theoretical perspective, this research contributed to the existing literature in several ways. References Abramson, J. An examination of the prior use of e-learning within an extended technology acceptance model and the factors that influence the behavioral intention of users to use m-learning.
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Revolving credit is available at a relatively high interest rate because it is not secured by collateral. Consumer credit use reflects the portion of a family or individual's spending that goes to goods and services that depreciate quickly.
It includes necessities such as food and discretionary purchases such as cosmetics or dry cleaning services. Consumer credit use from month to month is closely measured by economists because it is considered an indicator of economic growth or contraction. If consumers overall are willing to borrow and confident they can repay their debts on time, the economy gets a boost. If consumers cut back on their spending, they are indicating concerns about their own financial stability in the near future.
The economy will contract. Consumer credit allows consumers to get an advance on income to buy products and services. In an emergency, such as a car breakdown, that can be a lifesaver. Because credit cards are relatively safe to carry, America is increasingly becoming a cashless society in which people routinely rely on credit for purchases large and small. Revolving consumer credit is a highly lucrative industry. Banks and financial institutions, department stores, and many other businesses offer consumer credit.
The main disadvantage of using revolving consumer credit is the cost to consumers who fail to pay off their entire balances every month and continue to accrue additional interest charges from month to month. The average annual percentage rate on all credit cards was A single late payment can boost the cardholder's interest rate even higher. Building Credit. Balance Transfer Cards. Actively scan device characteristics for identification. Use precise geolocation data.
Select personalised content. Create a personalised content profile. Most commonly associated with credit cards, consumer credit also includes other lines of credit, including some loans. There are two types of consumer credit: revolving credit and installment credit. With revolving credit, the person is approved for a specified amount of credit and can use it whenever he or she needs it, as with a credit card. With installment credit, the person pays a specified number of payments of a fixed amount until the loan is paid off.
Consumer credit typically covers to material goods, usually items that depreciate quickly, such as vehicles or electronics such as televisions. It excludes investment purchases such as stocks, bonds, or real estate and similar property. Percent except as noted. Consumer Credit Outstanding Levels 1 Not seasonally adjusted. Billions of dollars. Nonprofit and educational institutions Nonfinancial business Consumer Credit Outstanding Flows 1 Not seasonally adjusted.
Billions of dollars, annual rate. Nonfinancial business 0. Footnotes Covers most credit extended to individuals, excluding loans secured by real estate.
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