Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

A transaction cost explanation of the card-or-cash decision among Vietnamese debit card holders

A transaction cost explanation of the card-or-cash decision among Vietnamese debit card holders This research provides a new perspective in explaining cardholders' willingness to use debit cards instead of cash by applying the transaction costs economic theory. This study also expands the adaptation of transaction cost economics theory in explaining consumer behaviour by investigating the moderating effects of income and education level on the relationship between perceived transaction costs and willingness to use debit cards.Design/methodology/approachThe conceptual framework was developed primarily from the transaction cost economics theory. An in-depth interview method was employed to further support hypothesis development and the development of measurement scales. A structural equation model linking asset specificity, behavioural uncertainty, environmental uncertainty, frequency of payment, perceived monitoring costs, perceived adaptation costs and willingness to use debit cards was tested using data from a sample of 384 Vietnamese debit card holders.FindingsThis study's results support the transaction cost economics theory that asset specificity, uncertainty and frequency of payment all positively contribute to the perceived transaction costs associated with debit card usage. However, only environmental uncertainty and perceived adaptation costs have significant negative impact on willingness to use debit cards, with the relationship between environmental uncertainty and willingness to use debit cards being totally mediated by perceived adaptation costs. Moreover, the relationship between perceived adaptation costs and willingness to use debit cards becomes less negative among richer and better-educated cardholders.Practical implicationsThe research provides insights into the hidden obstacles for developing cashless economies, thereby supporting policy makers in designing more effective and comprehensive strategies to make debit cards more widely used as a true substitute for cash.Originality/valueThis study provides a new lens in explaining customer willingness to use debit cards, while expanding the transaction costs economics theory by incorporating demographic factors as moderators in the relationship between transaction costs and the card-or-cash choice. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Bank Marketing Emerald Publishing

A transaction cost explanation of the card-or-cash decision among Vietnamese debit card holders

Download PDF
30 pages

Loading next page...
 
/lp/emerald-publishing/a-transaction-cost-explanation-of-the-card-or-cash-decision-among-oFD0UoqChQ
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0265-2323
DOI
10.1108/ijbm-05-2019-0191
Publisher site
See Article on Publisher Site

Abstract

This research provides a new perspective in explaining cardholders' willingness to use debit cards instead of cash by applying the transaction costs economic theory. This study also expands the adaptation of transaction cost economics theory in explaining consumer behaviour by investigating the moderating effects of income and education level on the relationship between perceived transaction costs and willingness to use debit cards.Design/methodology/approachThe conceptual framework was developed primarily from the transaction cost economics theory. An in-depth interview method was employed to further support hypothesis development and the development of measurement scales. A structural equation model linking asset specificity, behavioural uncertainty, environmental uncertainty, frequency of payment, perceived monitoring costs, perceived adaptation costs and willingness to use debit cards was tested using data from a sample of 384 Vietnamese debit card holders.FindingsThis study's results support the transaction cost economics theory that asset specificity, uncertainty and frequency of payment all positively contribute to the perceived transaction costs associated with debit card usage. However, only environmental uncertainty and perceived adaptation costs have significant negative impact on willingness to use debit cards, with the relationship between environmental uncertainty and willingness to use debit cards being totally mediated by perceived adaptation costs. Moreover, the relationship between perceived adaptation costs and willingness to use debit cards becomes less negative among richer and better-educated cardholders.Practical implicationsThe research provides insights into the hidden obstacles for developing cashless economies, thereby supporting policy makers in designing more effective and comprehensive strategies to make debit cards more widely used as a true substitute for cash.Originality/valueThis study provides a new lens in explaining customer willingness to use debit cards, while expanding the transaction costs economics theory by incorporating demographic factors as moderators in the relationship between transaction costs and the card-or-cash choice.

Journal

International Journal of Bank Marketing – Emerald Publishing

Published: Oct 26, 2020

Keywords: Cashless economy; Debit card; Plastic card; Transaction cost economics theory; Banking

References

  • Factors affecting adoption of electronic banking: an analysis of the perspectives of banks' customers
    Al-Smadi, M.O.
  • Factors affecting to select Islamic credit cards in Pakistan: the TRA model
    Ali, M.; Raza, S.A.; Puah, C.H.
  • Patronage factors of Malaysian local customers toward Islamic credit cards
    Amin, H.
  • Factors influencing Malaysian bank customers to choose Islamic credit cards
    Amin, H.
  • The salesperson as outside agent or employee: a transaction cost analysis
    Anderson, E.
  • Structural equation modeling in practice: a review and recommended two-step approach
    Anderson, J.C.; Gerbing, D.W.
  • Vietnam mobile app marker report: first half of 2018
    Appota
  • Marketing as exchange
    Bagozzi, R.P.
  • The moderator – mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations
    Baron, R.M.; Kenny, D.A.
  • Measuring the quality of e‐banking portals
    Bauer, H.; Hammerschmidt, M.; Falk, T.
  • Agency relationships in marketing: a review of the implications and applications of agency and related theories
    Bergen, M.; Dutta, S.; Walker, O.C.
  • Inter-firm dependence, environmental uncertainty and vertical co-ordination in industrial buyer–seller relationships
    Buvik, A.; Grønhaug, K.
  • Customer transaction costs and marketing simulations: modeling A new relationship marketing approach
    Cannon, H.M.; Cannon, J.N.; Köksal, A.; Johnson, A.
  • An algorithm for incorporating company reputation into business simulations: variations on the gold standard
    Cannon, H.M.; Schwaiger, M.
  • Demographic and attitudinal differences between active and inactive credit cardholders–the case of Hong Kong
    Chan, R.
  • Consumers' acceptance and use of plastic money in Harare, Zimbabwe
    Charles, M.C.; Simolini, M.
  • Risk perception of the E-payment systems: a young adult perspective
    Cheng, A.Y.; Ab Hamid, N.R.; Cheng, E.H.
  • A paradigm for developing better measures of marketing constructs
    Churchill, G.A.
  • The institutional nature of production
    Coase, R.H.
  • Quality of service and customer satisfaction: a conjoint analysis for the Nigerian bank customers
    Dauda, S.; Lee, J.
  • Retail in Vietnam: navigating the digital retail landscape
    Deloitte
  • Antecedents of B2C channel satisfaction and preference: validating e-commerce metrics
    Devaraj, S.; Fan, M.; Kohli, R.
  • Effective interfirm collaboration: howfirms minimize transaction costs and maximize transaction value
    Dyer, J.H.
  • Shopping motives for mail catalog shopping
    Eastlick, M.A.; Feinberg, R.A.
  • Debit cards in Vietnam
    Euromonitor International
  • Vietnam Bank card Report 2017
    Fiin Group
  • Evaluating structural equation models with unobservable variables and measurement error
    Fornell, C.; Larcker, D.F.
  • Debit and credit card usage and satisfaction: who uses which and why–evidence from Austria
    Foscht, T.; Maloles, C.; Swoboda, B.; Chia, S.L.
  • Red tape holds Vietnam back in digital payments
    FT Confidential Research
  • The move toward a cashless society: calculating the costs and benefits
    Garcia-Swartz, D.D.; Robert, H.; Layne-Farrar, A.
  • Make, buy, or ally: a transaction cost theory meta-analysis
    Geyskens, I.; Steenkamp, J.-B.E.M.; Kumar, N.
  • Bad for practice: a critique of the transaction cost theory
    Ghoshal, S.; Moran, P.
  • Transaction-cost economics: past, present, and future?
    Gibbons, R.
  • A transaction cost approach to consumer dissatisfaction and complaint actions
    Grønhaug, K.; Gilly, M.C.
  • The costs and benefits of ownership: a theory of vertical and lateral integration
    Grossman, S.J.; Oliver, D.H.
  • The history of transaction cost economics and its recent developments
    Hardt, L.
  • Plastic money-the future currency
    Harsha, S.
  • Interorganizational governance in marketing channels
    Heide, J.B.
  • Alliances in industrial purchasing: the determinants of joint action in buyer-supplier relationships
    Heide, J.B.; John, G.
  • Do norms matter in marketing relationships?
    Heide, J.B.; John, G.
  • Consumers' attitude towards usage of debit and credit cards: evidences from the digital economy of Pakistan
    Jawaid, A.Q.; Sana, B.; Muhammad, A.Q.
  • Forward integration into distribution:an empirical test of transaction cost analysis
    John, G.; Weitz, B.A
  • Transaction costs and crony capitalism in east Asia
    Kang, D.C.
  • Consumers' perceived risk and hold and use of payment instruments
    Karoubi, B.; Chenavaz, R.; Paraschiv, C.
  • Cash or plastic money–an investigation into the payment mode post multi-currency period in Zimbabwe
    Kaseke, N.
  • Factors affecting credit card use in India
    Khare, A.; Khare, A.; Singh, S.
  • Factors affecting university students' intentions to use debit card services: an empirical study based on Utaut
    Kissi, P.S.; Oluwatobiloba, M.K.; Berko, A.Y.
  • Paper or plastic? The effect of time on the use of check and debit cards at grocery stores
    Klee, E.
  • A transaction cost explanation of vertical control in international markets
    Klein, S.
  • An empirical study on consumer acceptance of products in electronic markets: a transaction cost model
    Liang, T.P.; Huang, J.S.
  • Interdependency, contracting, and relational behavior in marketing channels
    Lusch, R.F.; Brown, J.R.
  • Consumer intention and credit card adoption in Vietnam
    Oanh, D.Y.N.; Cassidy, J.F.
  • Household sectoral choice and effective demand for rural credit in India
    Pal, S.
  • Impact of plastic money on banking trends in India
    Patil, S.
  • Do formal contracts and relational governance function as substitutes or complements?
    Poppo, L.; Zenger, T.
  • Determinants of financial literacy: analysis of the influence of socioeconomic and demographic variables
    Potrich, A.C.G.; Vieira, K.M.; Kirch, G.
  • The future of ASEAN: Viet Nam perspective
    PwC
  • Evaluating mutual funds in an emerging market: factors that matter to financial advisors
    Ramasamy, B.; Yeung, M.
  • Factors affecting adoption of internet banking in Jordan
    Rawashdeh, A.
  • Transaction cost analysis: past, present, and future applications
    Rindfleisch, A.; Heide, J.B.
  • Specific investments in marketing relationships: expropriation and bonding effects
    Rokkan, A.I.; Heide, J.B.; Wathne, K.H.
  • A progressive transition: plastic money
    Rooplata, P.; Sathya, R.
  • Power plays: regulation, diversification, and backward integration in the electric utility industry
    Russo, M.V.
  • Empirical research in transaction cost economics: a review and assessment
    Shelanski, H.A.; Klein, P.G.
  • Transaction costs in microfinance–study from clients' perspective
    Singh, P.; Kapoor, S.
  • Antecedents to buyer–seller collaboration: an analysis from the buyer's perspective
    Sriram, V.; Krapfel, R.; Spekman, R.
  • Community level socioeconomic impacts of electronic commerce
    Steinfield, C.; Whitten, P.
  • Validating instruments in MIS research
    Straub, D.
  • Controlling supplier opportunism in industrial relationships
    Stump, R.L.; Heide, J.B.
  • Investigating the consumers' perception towards usage of plastic money in Bangladesh: an application of confirmatory factor analysis
    Sultana, N.; Hasan, M.
  • Online buying behavior: a transaction cost economics perspective
    Teo, T.S.H.; Yu, Y.
  • Effective cost of borrowing from microfinance institutions
    Tutlani, A.
  • A transaction cost approach to make or buy decisions
    Walker, G.; Weber, D.
  • Supplier competition, uncertainty, and make-or-buy decisions
    Walker, G.; Weber, D.
  • Governance and global communities
    Watson, R.T.; Boudreau, M.-C.; Greiner, M.; Wynn, D.; York, P.; Gul, R.
  • Comparative economic organization: the analysis of discrete structural alternatives
    Williamson, O.E.
  • Transaction cost economics: how it works; where it is headed
    Williamson, O.E.
  • Vietnam-global financial inclusion (global Findex) Database 2017
    Work Bank
  • The adoption and usage of credit cards by urban‐affluent consumers in China
    Worthington, S.; Stewart, D.; Lu, X.
  • A study of purchasing behavior in Taiwan's online auction websites
    Yeh, J.; Hsiao, K.; Yang, W.
  • Electronic markets and virtual value chains on the Information Superhighway
    Benjamin, R.I.; Wigand, R.T.
  • Consumer's use of debit cards: patterns, preferences and price response
    Borzekowski, R.; Kiser, E.K.; Ahmed, S.
  • The 2018 Viet Nam governance and public administration performance Index (PAPI): measuring citizens' experiences
    CECODES; VFF-CRT; RTA; UNDP
  • Payment card rewards programs and consumer payment choice
    Ching, A.T.; Hayashi, F.
  • Student attitudes to student debt
    Davies, E.; Lea, S.E.
  • The decision between debit and credit: finance charges, float, and fear
    King, A.S.; King, J.T.
  • The significance of plastic money to the hospitality industry: a case study of rainbow towers group of hotels (RTG)
    Munyoro, G.; Matinde, M.
  • Socio economic factors influencing e-payments adoption by the Nigerian deposits money banks (DMBS): perspective of the bankers
    Oladejo, M.O.; Oluwaseun, Y.
  • Customer acceptance of cashless payment systems in the hospitality industry
    Ozturk, A.B.
  • Strategic alliance structuring: a game theoretic and transaction cost examination of interfirm cooperation
    Parkhe, A.
  • A study on future prospects of plastic money in Indian banking system
    Ramola, P.J.; Suresh, P.G.; Arun Kumar, K.C.; Venkatram, S.H.