Perceived Factors Influencing the Acceptance and Adoption of Self-service Technology Chang Mexen A research project submitted in partial fulfilment of the requirement for the degree of Master of Business Administration Universiti Tunku Abdul Rahman Faculty of Accountancy and Management March 2015 Perceived Factors Influencing the Acceptance and Adoption of Self-service Technology By Chang Mexen This research project is supervised by: Sia Bik Kai Senior Lecturer Department of Economics Faculty of Accountancy and Management ________________________________________________________________________ Copyright @ 2015 ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, graphic, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior consent of the authors. ________________________________________________________________________ iii ________________________________________________________________________ DECLARATION I hereby declare that: (1) This Research Project is the end result of my own work and that due acknowledgement has been given in the references to all sources of information be they printed, electronic, or personal. (2) No portion of this research project has been submitted in support of any application for any other degree or qualification of this or any other university, or other institutes of learning. (3) The word count of this research report is 18,128. Name of Student : Chang Mexen Student ID : 10 UKM 07187 Signature : Date : 27 March 2015 ________________________________________________________________________ iv ________________________________________________________________________ ACKNOWLEDGEMENT I would like to acknowledge gratitude to Mr Sia, my supervisor for his invaluable advice and guidance along the way of my research project. I could not imagine how messy my work will be without his guidance. Without his tremendous support I won‟t be able to complete the research project smoothly, not even dare to imagine that I‟m writing on the acknowledgment page. I appreciate for my family members and friends who help me on my data collection; in way of showing supporting they took further steps to share the questionnaire link to their extended friends and family. Thank you for your helping hands and share my stress during my data collection period. I won‟t know how difficult it is until I realized it in action. My family members always are the biggest supporters in my life. I feel sorry that I am not around and could not help up much during the critical time and I really feel touch as they given me all the supports and loves during my difficult period. ________________________________________________________________________ v ________________________________________________________________________ DEDICATION To my love Eugene Goh, No words can describe how emotional I can be when I drafting this. This honor did not belong to me alone, but for both of us. Your life didn‟t stop where you were, I am so glad that I can help you to achieve one of your goal - completion of MBA. I have been struggle all this while; I believe the determination and strength came from you. I wish you be happy always. Thanks for being my special one. Love, Mexen ________________________________________________________________________ vi ________________________________________________________________________ TABLE OF CONTENTS Copyright Page ……………………………………………………..…..….….... iii Declaration ……………………………………………………………..……….. iv Acknowledgments ……………………………………………………...……….. v Dedication …………………………………………………………………..… vi Table of Contents ………………………………………………………..…… vii List of Tables ………………………………………………………………..…... x List of Figures …………………………………………………………..………. xi Preface ……………………………………………………………..…….……. xii Abstract ………………………………………………………………….…… xiii Chapter 1 Research Overview .............................................................................. 1 1.1 Introduction ........................................................................................... 1 1.2 Research Background ............................................................................ 1 1.3 Problem Statement ................................................................................ 5 1.4 Research Objectives .............................................................................. 6 1.5 Research Question ................................................................................. 7 1.6 Significance of the Study ....................................................................... 8 1.7 Chapter Layout .................................................................................... 10 Chapter 2 Literature Review .............................................................................. 11 2.0 Introduction ......................................................................................... 11 2.1 Review of the Literature ...................................................................... 12 2.1.1 Self-service technologies (SSTs) .................................................. 12 2.1.2 Perceived usefulness ..................................................................... 16 ________________________________________________________________________ vii ________________________________________________________________________ 2.1.3 Individual perceive control ........................................................... 17 2.1.4 Expected outcome quality ............................................................. 19 2.1.5 Technology Anxiety ..................................................................... 21 2.1.6 Need for interaction ...................................................................... 23 2.1.7 Hedonic Value .............................................................................. 25 2.1.8 Attitude ........................................................................................ 27 2.1.9 Attitude – behavior intention ........................................................ 28 2.2 Review of theoretical model ................................................................ 29 2.3 Research Gap ...................................................................................... 33 Chapter 3 Methodology ..................................................................................... 34 3.0 Introduction ......................................................................................... 34 3.1 Research Design .................................................................................. 35 3.2 Development of Research Framework ................................................. 38 3.3 Hypotheses Statements ........................................................................ 40 3.4 Data Collection Methods ..................................................................... 42 3.4.1 Secondary Data ............................................................................ 42 3.4.2 Primary Data ................................................................................ 43 3.5 Sampling Design ................................................................................. 44 3.5.1 Target Population ......................................................................... 44 3.5.2 Sampling Frame and Sampling Location ...................................... 44 3.5.3 Sampling Elements ....................................................................... 44 3.5.4 Sampling Technique and sampling size ........................................ 45 3.6 Research Instrument ............................................................................ 47 3.7 Constructs Measurement...................................................................... 49 3.8 Data Processing ................................................................................... 51 3.9 Data Analysis ...................................................................................... 52 ________________________________________________________________________ viii ________________________________________________________________________ Chapter 4 Data Analysis .................................................................................... 53 4.0 Introduction ......................................................................................... 53 4.1 Descriptive Analyses ........................................................................... 56 4.1.1 Demographics‟ Profile .................................................................. 56 4.1.2 Consumer behavior over SST ....................................................... 60 4.1.3 Independent and Dependent variables ........................................... 62 4.2 Inferential Analyses ............................................................................. 64 4.2.1 Factor Analysis............................................................................. 64 4.2.2 Reliability Analysis ...................................................................... 67 4.2.3 Multiple linear regression ............................................................. 68 4.2.4 Simple linear regression ............................................................... 73 4.2.5 Logistic regression ....................................................................... 76 4.3 Discussion of Results and Hypotheses testing conclusion .................... 78 Chapter 5 Discussion, Conclusion and Implications .......................................... 83 5.0 Introduction ......................................................................................... 83 5.1 Discussions of Major Findings............................................................. 83 5.2 Implications of the study...................................................................... 88 5.3 Managerial implications ...................................................................... 89 5.4 Limitations of the Study ...................................................................... 93 5.5 Conclusion and recommendations for future research .......................... 95 References …………………………………………………………………..…...97 Appendices …………………………………………………………………… 107 ________________________________________________________________________ ix ________________________________________________________________________ LIST OF TABLES Table 2.1 Classification of SSTs on base of interface and purpose ……………. 13 Table 3.1: Summary of past studies on independent variables and dependent variables ……………………………………………………………. 35 Table 4.1: Summary of confirmation factor analysis results for SST questionnaire (N=210) …………………………………………………………….. 65 Table 4.2: Summary table of Cronbach‟s Alpha for each construct …………… 66 Table 4.3: Summary of multiple linear regressions……………………..……… 70 Table 4.4: Summary of multiple linear regressions …………………….……… 74 Table 4.5: Summary of logistic regression……………………………………… 77 Table 4.6: Summary of hypothesis testing results ……………………………….78 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