By
Alwan Raihan Rabbani 21954003
MASTER’S DEGREE in
MASTER OF ARTS
FACULTY OF BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
August 2020
Revision after Thesis Defense on August 11, 2020
Alwan Raihan Rabbani STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Alwan Raihan Rabbani
_____________________________________________
Student Date: 15/08/2020
Approved by:
Dr. Soebowo Musa
_____________________________________________
Thesis Advisor Date: 15/08/2020
Dr. Nila K. Hidayat, SE., MM.
_______________________________
Dean Date: 15/08/2020
Alwan Raihan Rabbani ABSTRACT
THE RELATIONSHIPS OF TRUST, PRODUCT ATTRACTIVENESS, AND TECHNOLOGY FEATURES TOWARDS TECHNOLOGY ACCEPTANCE MODEL IN THE CASE OF
VENDING MACHINE
By
Alwan Raihan Rabbani Dr. Soebowo Musa Advisor SWISS GERMAN UNIVERSITY
Technology has influenced businesses in various ways by providing a tool for business to develop its activities further level. In retail industry, one of the technology developments is business automation through software integration enabling retail stores to become fully automated providing convenience for their customers. The most well-known retail automation is vending machine with the application in retail for selling food and beverages that has been used in many countries. However, in Indonesia, the development of vending machine is still considered low.
Scholars argue that such low development is due to people’s ignorance on how to use the system.
This study makes an attempt to examine this low utilization of vending machine by looking at the external factors such as product attractiveness, technology features, and trust towards Technology Acceptance Model (TAM). The study was conducted based on total of 220 respondents JABODETABEK area. The result of this research confirms that technology features has the most significant relationship with the acceptance of vending machine in Indonesia; while trust has a positive partial relationship with TAM.
Keywords: Vending Machine, Product Attractiveness, Trust, Technology Features, TAM, Perceived Usefulness, Perceived Ease of Use, Intention to Use, Actual Usage
Alwan Raihan Rabbani
© Copyright 2020 by Alwan Raihan Rabbani
All rights reserved
Alwan Raihan Rabbani DEDICATION
I dedicate this works for the future of the country I loved: Indonesia
Alwan Raihan Rabbani ACKNOWLEDGEMENT
I would like to express my deepest gratitude for those who has been supporting me through my thesis work:
First and foremost, I would like to thank god Allah SWT for giving me strength, patience, and guidance for me to finish this thesis project.
To my lovely family, Drs. Agus Rizal and Ir. Hafiza M.Sc., and dr. Haya Farah Khansa. My beloved, Hilya Nabila S.M. for the endless support and assistance guiding me through this thesis project
To Dr. Soebowo Musa as my advisor, for your time, advice, endless support, patience to guide me throughout this thesis project.
To Swiss German University for providing education facilities, and the opportunity to conduct my Master thesis.
To my fellow colleagues in KRAH Coffee and Cuisine for the continuous support to finish my thesis project.
The last gratitude I would like to give, to all my friends whom I cannot state one by one, for their motivation, encouragement, assistance in distributing and responding to questionnaires during their free time, and through their support to keep my self-motivated to finish this thesis project.
Alwan Raihan Rabbani TABLE OF CONTENTS
STATEMENT BY THE AUTHOR ... 2
ABSTRACT... 3
DEDICATION ... 5
ACKNOWLEDGEMEN T ... 6
TABLE OF CONTENTS... 7
LIST OF FIGURES ... 10
LIST OF TABLES ... 11
CHAPTER 1 - INTRODUCTION ... 13
1.1 Research Background ... 13
1.2 Research Problems ... 20
1.3 Research Question... 21
1.4 Research Objective... 22
1.5 Scope and Limitation... 23
1.6 Significance of Study ... 24
1.7 Structure of the Thesis ... 25
CHAPTER 2 - LITERATURE REVIEW ... 26
2.1 Theory Acceptance Model ... 27
2.2 Research Model and Hypotheses Development ... 34
2.2.1 Technology Features, Perceive Usefulness, and Perceived Ease of Use ... 35
2.2.2 Trust, Perceived Usefulness, Perceived Ease of Use... 37
2.2.3 Product Attractiveness, Perceive Usefulness, and Perceive Ease of Use ... 39
2.2.4 Perceived Usefulness, Perceived Ease of Use, and Intention to Use of Technology ... 41
2.2.5 Intention to Use of Technology and Actual Use of Technology ... 43
2.3 Previous Study ... 43
2.4 Study Difference and Similarities ... 48
CHAPTER 3 - RESEARCH METHODOLOGY ... 49
3.1 Research Design ... 50
3.1.2 Research Context ... 51
3.2. Unit Analysis/ Unit Observation... 52
Alwan Raihan Rabbani
3.3 Sampling Design... 52
3.3.1 Population & Sample Target ... 52
3.3.2 Sampling Method ... 52
3.3.3 Sampling Size ... 53
3.4 Location & Time Frame ... 53
3.5 Data Sources & Collection... 54
3.5.1 Type of Data ... 54
3.5.2 Data Collection Method ... 54
3.5.3 Questionnaire Development ... 55
3.6 Variable Operationalization ... 56
3.6.1 Control Variables ... 57
3.7 Data Processing Procedure... 58
3.7.1 Data Preparation... 58
3.8.2 Data Screening ... 58
3.7.3 Validity ... 59
3.7.4 Reliability ... 62
3.8 Data Coding ... 64
3.9 Data Analysis Methods ... 65
CHAPTER 4 – RESULTS AND DISCUSSION ... 66
4.1 Sample and Procedures... 66
4.2 Demographic of survey respondents ... 66
4.3 Data Analysis ... 69
4.3.1 Data Screening and Cleansing ... 69
4.3.1.1 Missing Data ... 69
4.3.2 Descriptive Statistics ... 70
4.3 Preliminary Data Analysis ... 72
4.3.1. Normality Test ... 72
4.3.2 Correlation Test ... 73
4.3.3 Homogeneity Test ... 74
4.3.4 Collinearity Test... 75
4.4 Structural Equation Model Analysis ... 76
4.3.3.1 Measurement Model Analysis ... 77
Alwan Raihan Rabbani
Perceived Usefulness ... 77
Perceived Ease of Usefulness ... 79
Intention to Use Technology ... 80
Actual Use of Technology... 81
Technology Features... 81
Trust... 84
Product Attractiveness ... 86
4.3.3.2 Structural Model Analysis ... 88
Hypotheses Testing Results ... 89
4.4 Discussion ... 91
4.5 Research Contributions ... 93
4.5.1 Theoretical Contributions ... 93
4.5.2 Managerial/Practical Contributions ... 94
CHAPTER 5 – CONCLUSION... 95
5.1 Conclusion ... 95
5.2 Research Limitations ... 97
5.3 Future Research ... 98
REFRENCES ... 99
APPENDIX A ... 109
APPENDIX B ... 120
APPENDIX C ... 121
APPENDIX D ... 124
APPENDIX E` ... 126
Alwan Raihan Rabbani LIST OF FIGURES
Figure 1. 1: Percentage of Indonesian Average Monthly Expenditure ... 15
Figure 1. 2: Beverages Vending Machine (Source; Alibaba.com) ... 16
Figure 2. 1: Research’s Conceptual Framework ... 26
Figure 2. 2: Technology Acceptance Model ... 29
Figure 2. 3: Research Model ... 34
Figure 3. 1: Research Model and Hypothesis Relation... 49
Figure 3. 2: Questionnaire Development Process ... 55
Figure 4. 1: Demographic Aspects of Respondents ... 67
Figure 4. 2: Respondents Characteristics for TF and PA... 72
Figure 4. 3: Left: Model T-Value; Right: Structural Coefficients of the model ... 88
Figure 4. 4: SEM Hypotheses Testing Result ... 89
Figure 5. 1: Overall Research Model and Hypotheses Result ... 95
Alwan Raihan Rabbani LIST OF TABLES
Table 1. 1: Amount of Vending Machine in Other Asian Countries ... 18
Table 2. 1: Purposed external variables affecting cognitive response (PU& PEOU) ... 30
Table 2. 2: Previous Studies... 44
Table 3. 1: Research Design Summary ... 50
Table 3. 2: Research’s Variable Operationalization ... 56
Table 3. 3: Research Controlled Variable ... 57
Table 3. 4: Content Validity Literature ... 60
Table 3. 5: Cronbach’s Alpha from Previous Studies... 63
Table 3. 6: Research Data Coding ... 64
Table 4. 1: Demographic Table of Respondents... 68
Table 4. 2: Descriptive Analysis Test Results ... 70
Table 4. 3: Normality Test Result ... 73
Table 4. 4: Correlation Test ... 73
Table 4. 5: Compared Mean Test Analysis... 74
Table 4. 6: Multicollinearity Test Results... 75
Table 4. 7: Parameters for Model Fit Measurement ... 76
Table 4. 8: Perceived Usefulness Model Measurement Results ... 77
Table 4. 8: Perceived Usefulness Structural Model Results ... 78
Table 4. 9: Validity and Reliability Test... 79
Table 4. 10: Goodness of Fit Indices for Perceived Usefulness ... 79
Table 4. 11: Intention to Use Validity and Reliability Test Result... 80
Table 4. 12: Validity and Reliability Test Result ... 81
Table 4. 13: Technology Features Validity and Reliability Test Result ... 82
Alwan Raihan Rabbani
Table 4. 14: Technology Features Goodness of Fit Indices Result ... 83
Table 4. 15: Trust Validity and Reliability Test Result ... 84
Table 4. 16: Trust Goodness of Fit Result ... 85
Table 4. 17: Product Attractiveness Validity and Reliability Test Result ... 86
Table 4. 18: Product Attractiveness Goodness of Fit Indices Result... 87
Table 4. 20: Hypotheses Testing Results ... 90
Table 4. 21: Non-Parametric Test Result... 120
Table 5. 1: Research’s Gap and Contribution ... 96