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Ozturk 2016
Ozturk 2016
Ozturk 2016
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Introduction
Over the past decade, radio frequency identification (RFID) technology has received
great deal of attention due to its potential to improve organizational performance and enable new
business models (Smith et al., 2014). In general, RFID technology can be defined as an
automated data collection technology that transmits different types of data wirelessly between a
RFID tag and a reader device using radio waves (Want, 2004). A basic RFID system is made up
of three components including RFID transponder (or tag), RFID reader and back office data
processing equipment. Each tag contains unique identification number and electronically sorted
information about the product (e.g., product attributes, physical dimensions, price) to which it is
embedded and transmits that data to the reader through radio waves. The RFID reader receives
radio waves to read the identification number of the tag and the information stored in the tag.
Finally, the reader transfers the readings to one or more back office data processing equipment
which in turn process the collected data (Wu et al., 2006; Zhu et al., 2012).
Even though RFID technology falls under the category of automatic identification
technologies such as bar codes and optical character readers, there are important differences
among these technologies. For instance, unlike barcode technology, RFID does not require line
of sight since RFID tags can be read as long as they are within the range of the RFID reader. In
1
addition, since each tag has a unique identification number, the readers can differentiate among
numerous tags that are within the range of the RFID reader and communicate with multiple tags
The commercial use RFID technology has been initially started by retail companies (e.g.,
Wal-Mart) to improve efficiency in the supply chain. However, various types of RFID
technologies have been employed in different contexts in recent years. Some of the applications
of RFID technology include inventory tracking, building access control, toll collection and
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tracking library books (Ozturk et al., 2012). On the other hand, with the decreased cost of
equipment and tags, more customer–facing applications have emerged especially in the
hospitality industry. One such technology, namely RFID based cashless payment system, has
become popular in the hospitality industry in recent years. Thanks to its great cost-saving and
revenue generating benefits for operators and its convenience and ease of use for customers, a
growing number of hospitality firms have already adopted or planning to adopt this technology
to improve their service effectiveness to the customers (Ozturk and Hancer, 2014).
However, RFID technology in general and RFID cashless payment systems in particular
are progressing at a very fast pace, which creates uncertainties about both the benefits and the
risks associated with it (Ferrer et al., 2010). Therefore, consumers may be hesitant to use RFID
cashless payment systems as the risk they perceive may be overwhelming compared other
traditional ways of payments (i.e., cash, credit/debit card, checks) due to uncertainties and
potential undesirable outcomes. On the other hand, RFID cashless payment systems may be
perceived as a complicated technology where users’ judgments about their capabilities (i.e.,
required knowledge, skills and self-efficacy) to use the technology may influence their
acceptance. For these reasons, there is a need for a better understanding of the factors affecting
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consumers’ acceptance of RFID cashless payment systems. However, although numerous types
of RFID applications have been extensively investigated in retail, healthcare and logistic, there
has been little or no research that examined the acceptance of RFID cashless payment systems in
Based on the preceding discussion, the purpose of this study was to develop and test a
payment systems in the hospitality industry. To this end, an extended version of Technology
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Acceptance Model (TAM) (Davis, 1989) was used to test the proposed model. In addition to
perceived ease of use and perceived usefulness, TAM is extended by adding two constructs to it;
(1) perceived self-efficacy, and (2) percieved risk. Particulary, this reseach analyzed the
influence of self efficacy on perceived usefulness and percevied ease of use and the impact of
percevied risk on perceived usefulness and intention to use. This study further investigated the
realtionships between perceived usefulness and percevied ease of use and behavioral intention to
use.
Review of Literature
A RFID cashless payment system can be defined as a system that allows consumers to set
up an account linked to an RFID device (e.g., wristband, card, key chain or hotel room key) that
can be used to make purchases by simply waving it over a RFID enabled POS workstations at
any location that supports RFID cashless payment (Muta, 2006). Currently, different types of
RFID cashless payment systems available in the market which differ in their technical
characteristics and application areas. However, one of the main and common ways to categorize
RFID cashless payment systems is based on the volume of acceptance points offered to an end
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user. From this perspective, RFID cashless payment systems can be grouped under two broad
An open-loop RFID system link a payment device (e.g., a card embedded with RFID
chip) directly to consumers’ credit or debit card (alternatively, consumers can set up a prepaid
account which they refill by mail, online or at select merchant locations.) To make purchases,
consumers simply wave their RFID cards over a scanner at any retailer that supports RFID
cashless payment (BTD International Consulting, 2012). Octopus card which was launched back
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in 1997 in Hong Kong is a good example of an open loop RFID system. Especially after the
scope of its transactions widened in 2000, consumers can now use Octopus card not only for
local transportation such as to pay a trip on a ferry, train or bus, but also for purchases at
cashless payments exclusively at the respective property (e.g., hotels, theme parks) or venue.
which is linked to a payment device (e.g., wristband or room key with RFID chip on it) that can
be used to make purchases by waving it over a RFID enabled POS workstations anywhere within
the property (Ozturk et al., 2012). In hotels for instance, guests are provided with a RFID
enabled room key or a wristband at registration and have the choice of using these devices to
make the charges go directly to their rooms (Rock, 2007). A good example of closed-loop RFID
cashless payment systems is the MyMagic+ program by The Walt Disney Company. Worn on
the wrist, a MagicBand, is a RFID enabled wristband that can be read by short-range readers
located throughout the Walt Disney World Resort. MagicBands are linked to guests’ “My Disney
Experience” account and contains all vacation related information including hotel and restaurant
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reservations and Fastpass+ experiences and more. Guest can also use their MagicBands as their
Disney resort room key (Swedberg, 2014). However, maybe the biggest convenience of
MagicBands is coming from its ability to be used for purchases throughout the Walt Disney
World theme parks. Since guests are wearing these wristbands they do not need to carry cash or
their credit cards with them all the time reducing the risk of losing them significantly. By simply
waving the MagicBands over a reader near the cash register, and entering their personal
identification number, guests can complete their purchases in a few seconds (Swedberg, 2014).
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Technology Acceptance Model (TAM) (Davis, 1989) was adopted to identify factors
affecting customers’ acceptance of RFID cashless payment systems in the hospitality industry.
Davis (1989) stated that there are numerous variables, which impact users to accept or reject a
technology. Among those variables, previous studies suggested that two determinants are
especailly important. First, “people tend to use or not use an application to the extent they
believe it will help them perform their job better” (Davis, 1989, p. 320). Davis (1989) refers to
this first variable as “perceived usefulness”. Second, people percieve that if the technology is too
hard to use, they tend not to adopt and not to use it even though they believe that the technology
is useful. Davis (1989) refers to this second variable as “perceived ease of use”.
There is an extensive research in the information technology literature that validated the
effectiveness of TAM in predicting individuals’ intention to use an innovation (Kim and Qu,
2014; Morosan, 2014). In addtion to the many studies that have adopted TAM as a research
model, there are also several studies which extended the model with other constructs such as
compatibility (Kim and Qu, 2014), self- efficacy (Hernandez et al., 2009), trust and percieved
risk (Kesharwani and Bisht, 2012), and percieved security (Hossain and Prybutok, 2008).
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TAM is originally developed for employees’ technology acceptance in organizations.
Even though many TAM studies have investigated IT acceptance in the context of work-related
However, for the RFID cashless payment technology, some of the individual difference and
usage-context factors may be more critical compared to other types of technologies. This may
change the original TAM model for using it in explaining the users’ acceptance of RFID cashless
payment systems. Therefore, TAM requires extension to account for additional constructs that
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are suggested in the RFID literature (Hossain and Prybutok, 2008). Therfore, to identify
customers ‘acceptance of RFID cashless payment systems, an extended version of TAM was
used in this study. In addition to perceived ease of use and perceived usefulness, TAM is
extended by adding two constructs to it; (1) self-efficacy and (2) percieved risk (Figure 1).
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FIGURE 1
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“people’s judgments about their capabilities to organize and execute courses of action necessary
to perform a given task and it is concerned not with the skills one has but with judgments of what
one can do with whatever skills one possesses” (Bandura, 1986, p. 391). Self-efficacy affects
what behaviors people choose to perform, the amount of effort they are ready to use, and the
amount of time they will persist to overcome obstacles (Bandura, 1986). Based on Luarn and
Lin’s (2005) mobile banking study, this study has focused on whether individuals believed that
they had the necessary knowledge, skill or ability to use RFID cashless payment systems.
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Therefore, perceived self-efficacy was defined as the judgment of one’s ability to use RFID
Self-efficacy affects an individual’s system anxiety which in turn affects the perceived
ease of use and perceived usefulness of the system (Igbaria and Iivari, 1995). Prior research in
the context of information systems, suggests a direct relationship between self-efficacy and
perceived usefulness and perceived ease of use (Hasan, 2007; Wang et al., 2003). For instance,
by integrating self-efficacy as an external variable to the TAM, Hasan (2007) assessed the direct
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effect of self-efficacy on perceived eased of use and perceived usefulness. Data collected from
and perceived ease of use. Another study conducted by Jashapara and Tai (2011) found a
significant positive relationship between self-efficacy and perceived ease of use. In the context of
RFID technology, Chong and Chan (2012) stated that “if a person has high confidence on his or
her ability to use RFID, it can serve as a basis for the person’s perceptions of how easy RFID
will be to use” (p. 111). Given the strong empirical support for the relationship between self-
efficacy and perceived ease of use and perceived usefulness, the following hypotheses were
proposed:
H1: There is a positive relationship between self-efficacy and perceived ease of use.
H2: There is a positive relationship between self-efficacy and perceived usefulness.
In the context of IS, perceived risk has been defined in different ways. According to the
“theory of perceived risk” consumers perceive risk because they face uncertainty and potentially
“consumers behavior involves risk in the sense that any action of a consumer will produce
consequences which he/she cannot anticipate with anything approximating certainty, and some
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of which at least are likely to be unpleasant” (p. 24). Prior research suggested that perceived risk
the relationship between perceived risk and behavioral intention to use in various contexts
including electronic commerce (Pavlou, 2003; Lim, 2003), self-service technologies (Kim and
Qu, 2014), mobile commerce (Zhang et al., 2012) and mobile banking (Chen, 2013).
As in all other technologies, there are certain risks involve in using RFID cashless
transmission between the tags and the readers which creates a risk of interference between RFID
and other technologies in the work place (RFID and Interference, 2009). In addition, the
performance of RFID tags deteriorates over time. This problem reduces the read range and
consequently the tag stops working completely causing the whole system fail.
In this context, such risks associated with RFID cashless payment system may influence
users’ perceived usefulness and behavioral intention. Even though there have been a limited
number of studies specifically focusing on RFID cashless payment systems, a few studies
investigated the risks associated with similar RFID systems. For example a recent study
conducted by Zhu et al. (2014) examined the role of perceived risk in the adoption of RFID
credit cards. By integrating perceived risk to the TAM, their study results indicated that
perceived risk was directly and negatively associated with both perceived usefulness and
intention to use. Based on the theoretical and empirical support from the literature, the following
H3: There is a negative relationship between perceived risk and perceived usefulness.
H4: There is negative relationship between perceived risk and intention to use.
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Perceived usefulness was considered as a motivation to engage with use of information
system, whereas perceived ease of use was regarded as an antecedent of perceived usefulness.
More specifically, perceived usefulness is defined as "the degree to which a person believes that
using a particular system would enhance his/her task performance. Perceived ease of use, on the
other hand, refers to "the degree to which a person believes that using a particular system would
be free of effort (Davis, 1989, p. 320). Prior research validated the impact of percevied ease of
use and perceived usefulness on intention to use in various IT contexts including online booking
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(Kucukusata et al., 2015), mobile wireless technology (Kim and Garrioson, 2009), e-commerce
(Hernandez et al., 2009), mobile banking (Gu et al., 2009), and mobile commerce (Chong et al.,
2012)
In the current study, perceived usefulness was defined as the extent to which users
believes that using RFID cashless payment systems saves them time and enhances the
effectiveness of the payment process. On the other hand, perceived ease of use was defined as
the extent to which users believe that RFID cashless payment systems do not make the users
more confused and they are easy to understand and ease to use. Prior research in the context of
RFID technology also confirmed the positive influence of perceived usefulness and perceived
ease of use on behavioral intention. For instance, Hossain and Prybutok, (2008) contextualized
TAM to RFID technology by substituting perceived convenience for perceived usefulness and
perceived ease of use. The findings of their study indicated that higher perceived convenience
(perceived usefulness and perceived ease of use) leaded to greater acceptance of RFID
technology. Another study conducted by Cheng (2013), investigated consumer attitudes and
behavioral intention to use an RFID door security system based on TAM. Data collected from
250 consumers of Taipei Arena Ice Land, Taiwan, demonstrated that perceived ease of use had a
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significant positive impact on perceived usefulness, perceived usefulness and perceived ease of
use both positively influenced attitudes toward use and perceived usefulness had a significant
H5: There is a significant relationship between perceived usefulness and intention to use.
H6: There is positive relationship between perceived ease of use intention to use.
H7: There is significant relationship between perceived ease of use and perceived
usefulness.
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Methodology
A web based questionnaire was developed based on the literature on TAM and RFID
technology acceptance. All research constructs were adapted from prior research and minor
modifications were applied to the constructs in the context of RFID domain. All items were
measured by five-point Likert scale ranging from “strongly disagree” to “strongly agree.”
Perceived ease of use and perceived usefulness was measured by four items each, adapted from
Davis (1989). Self-efficacy was measured via six items developed by Compeau and Higgins
(1995). Perceived risk was measured using four items adapted from Im et al. (2008). Finally,
behavioral intention was measured using a 3-item scale adapted from the work of Davis et al.
(1992). A brief description of RFID cashless payment system was provided at the beginning of
the survey to make sure that all participants had a good understanding of the technology.
The data of the study was collected through a 1.5 million frequent traveler database
purchased by Oklahoma State University the Center for Hospitality and Tourism Research
(CHTR). The frequent travelers who stayed at a commercial hotel at least once during the
previous six months were the target population of the study. A screening question was utilized
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and participants were excluded from the sample if they had not stayed at a commercial hotel at
Simple random sampling technique was used and every 25th traveler was selected and
included to the sample. A web survey was used to collect the data. Respondents were invited to
the survey through email. An email reminder was sent out after 2 week to complete the survey.
Sixty thousand emails were sent out and forty five thousand emails were delivered successfully.
Only 462 surveys were returned creating a response rate of 1%. 157 questionnaires were
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eliminated due to incomplete and invalid responses. A total of 305 questionnaires were used for
the data analysis. Two step approach suggested by Fornell and Larcker (1981) was utilized to test
the proposed model. Measurement model was analyzed by a confirmatory factor analysis (CFA)
Results
Respondents’ Profile
Table 1 shows the demographic characteristics of the respondents. About 54% of the respondents
were male and 44% of the respondents were female. The majority of the respondents were
between 51 and 60 (25%), and 41 and 50 (24%) years old. Forty percent of the respondents
stated that they had a bachelor’s degree and 28% of the participants had an associate’s degree.
As for the question related to income, 25% of the respondents reported that they had a household
income of $41,000 and $80,000 per year. Finally, about 70% of the participants stated that they
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TABLE 1
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Confirmatory Factor Analysis
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The measurement model was analyzed by a confirmatory factor analysis (CFA). To
assess the overall model, goodness-of-fit measures were used. The literature suggests that chi
square to degrees of freedom ratio should be less than 3 for an acceptable model fit (Hair et al.,
2009). The ratio of chi-square to degree of freedom was 2.49 (χ² = 446.93, df = 179) which
demonstrated an acceptable model fit with other fit indexes including RMSEA = 0.07, NFI =
0.93, CFI = 0.96, IFI = 0.96, RFI = 0.92. Overall, the results were considered appropriate for
further analyses. To assess the reliability of the measurement scales, the composite reliability
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(CR) estimates and Cronbach’s alpha values were calculated. The results indicated that the alpha
coefficients values for the scales ranged from 0.71 to 0.91, and the CR values for the scales were
above 0.7 indicating a strong reliability (Hair et al., 2009) (Table 2). In addition, the average
variance extracted (AVE) scores were used to assess convergent validity. The AVE values
ranged from 0.72 to 0.88 which exceeded the 0.50 cutoff recommended by Fornell and Larcker
(1981) (Table 2). Finally, discriminant validity was assessed by comparing the square root of
AVE of each latent construct with the inter-construct correlations (Fornell and Larcker, 1981).
All diagonal values exceeded the inter-construct correlations indicating an acceptable level of
--------------
TABLE 2
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TABLE 3
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The structural equation modeling was analyzed to test the hypothesized relationships
among the constructs. The goodness-of-fit measures were used to evaluate the structural model
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fit. Overall the results demonstrated that the fit measures for the study model were reasonable
with χ² = 580.308 - df = 182, RMSEA = 0.08, CFI = 0.94, PNFI = 0.80, IFI = 0.94, and RFI =
0.90. Furthermore, the variance explained for perceived usefulness was 40%, for perceived ease
of use was 29% and for intention to use was 53%. Overall the results demonstrated that except
hypothesis 2, all of the study hypotheses were supported. More specifically, the results indicated
that self-efficacy had a significant positive impact on perceived ease of use and perceived risk
was negatively associated with both perceived usefulness and intention to use. In addition,
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perceived usefulness and perceived ease of use had the strongest positive direct impact on
intention to use. Finally, perceived ease of use has positively influenced perceived usefulness.
The purpose of this study was to propose and test a theoretical model that analyzes the
antecedents of consumers’ behavioral intention to use RFID cashless payment systems in the
hospitality industry. By adopting an extended version of TAM, the study empirically assessed
the relationships among two exogenous variables (self-efficacy and perceived risk) and three
endogenous variables (perceived usefulness, perceived ease of use and behavioral intention).
Table 4 and Figure 2 present the results of hypothesis testing for the research model including
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TABLE 4
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FIGURE 2
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The results of the study indicated that self-efficacy had a significant impact on perceived
ease of use (H1- path coefficient = 0.13). This finding was consistent with prior studies (Hasan,
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2007; Jashapara and Tai, 2011) confirming that users with high level of self-efficacy are more
likely to find RFID cashless payment systems easy to use. However, study results related to H2
(path coefficient = 0.02), which states that self-efficacy is positively associated with perceived
usefulness was not significant. With respect to H3 and H4, the study findings indicated that
perceived risk was negatively associated with both perceived usefulness (path coefficient= -0.47)
and intention to use (path coefficient = -0.27). Consistent with the previous studies (Zhu et al.
(2014) the results suggested that high risks associated with RFID cashless payment system
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influence users’ perceived usefulness negatively which in turn prevent them using it.
The findings of the study further indicated that perceived usefulness (H5 - path
coefficient = 0.43) and perceived ease of use (H6 – path coefficient = 0.35) had the strongest
positive direct impact on intention to use. In accordance with previous TAM studies (Kucukusata
et al., 2015; Kim and Garrioson, 2009), the results confirmed that perceived ease of use and
perceived usefulness were the predominant factors in assessing behavioral intentions towards
technology adoption. Finally, the study results supported H7 (path coefficient = 0.41) which
states that perceived ease of use positively related to perceived usefulness. Consistent with the
prior studies (Smith et al., 2014) this result suggested that users find RFID cashless payment
systems useful if they perceive that using them is easy and not complicated.
Theoretical Implications
The results of the study contribute to the general body of knowledge in the context of
technology acceptance in general and RFID technology acceptance in the hospitality industry in
particular in several ways. RFID technology has been extensively investigated in different
inventory management. On the other hand, as previously mentioned, with the decreased cost of
14
RFID tags, more customer-oriented RFID applications have emerged in recent years. Even
though there has been a few studies examined RFID technology applications in the hospitality
industry, to the author’s best knowledge, this is the first study that investigated the acceptance of
closed-loop RFID cashless payment systems specifically in the hospitality industry. Therefore,
the first important theoretical implication of the study is that the study contributes to extant
affecting consumers’ acceptance of RFID cashless payment systems in the hospitality industry.
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The second theoretical contribution of this study is coming from its validation of TAM in
the context of RFID technology acceptance. Consistent with original and prior TAM studies, the
results confirmed that perceived ease of use and perceived usefulness had the strongest impact on
intention to use. Also, perceived ease of use was found to significantly influence perceived
acceptance in the context of work related activities of employees. This study analyzed the
(organizational) where management may influence the adoption process (Morosan, 2014).
Third and the final theoretical contribution of the study is the extension of TAM. Based
on the literature regarding the TAM and RFID technology, this study successfully extended
TAM’s applicability within the RFID domain by adding two constructs to it. As previously
mentioned, some of the consumer-specific and usage-context factors may be crucial for the
difference variable, self-efficacy was found to positively influence perceived ease of use. Also,
as a usage-context variable, perceived risk was negatively associated with perceived usefulness
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and intention to use. This theoretical effort benefits researchers by helping them to understand
how to incorporate different constructs to TAM that are necessary in the development of user
Practical Implications
The results of the study provide significant practical implications for hospitality operators
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that had not yet adopted and have an intention to adopt or had already adopted and are looking
for more benefits from RFID cashless payment systems. The study results also provide valuable
information for technology companies and hospitality consultants for identifying factors
The findings suggested that perceived usefulness and perceived ease of use are
systems in the hospitality industry. In addition, the results indicated that RFID cashless payment
systems should be ease to use in order to increase their usefulness. Users, especially those who
do not have any previous experience with contactless payment systems may find RFID cashless
payment systems difficult or confusing to complete their transactions. Therefore, to increase the
usability of RFID cashless payment systems, hospitality operators should design them in a way
that does not confuse users. In addition, the systems should be free of effort and easy to operate.
Purchasing process with a RFID wristband or a room key in hotels for example, should
be easy and fast enough to allow gusts to complete their transactions in a few steps. In addition,
user friendliness of the system will make it perceive more beneficial to the potential users thus
making them more attracted toward the system. In this regard, in order to understand users’
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comfort level, developers should encourage actual users to actively involve in the design phase
of the system (Kapoor, 2014). On the other hand, dedicated technical support in various format
(e.g., built-in help features, 24/7 telephone support, designated toll-free number, online live chat
feature) will help service providers to meet a wide range of user needs and to increase their
confidence level in using RFID based cashless payment systems. Furthermore, to increase users’
level of perceived usefulness, hospitality operators and marketers should highlight the potential
Particularly, the major benefits such as significant time savings through faster transactions and
needless to carry cash or credit cards within the property should be emphasized through ads,
Regarding self-efficacy, the study results demonstrated that users with high level of self-
efficacy are likely to have more ease of use beliefs toward RFID cashless payment systems.
Therefore, hospitality operators and technology vendors can jointly organize training sessions on
contactless payment systems in general and RFID cashless payment systems in particular. These
sessions will increase the familiarity of users with RFID cashless payment systems, especially
the ones with no or limited previous cashless payment experience. In addition, explaining and
demonstrating the steps necessary to utilize RFID based cashless payment system will eliminate
or minimize users’ anxiety and the feelings of discomfort toward the system which will also help
them to form positive self-efficacy and ease of use beliefs about the system in general.
The study results further indicated that perceived risk was negatively associated with
perceived usefulness and intention to use RFID cashless payment systems. These findings
suggested that users’ perception of risk about the RFID cashless payment systems will be high
when they face uncertainties and undesirable consequences because of the usage of these
17
technologies. Therefore making RFID cashless payment systems easy to use will not be enough
to increase the usage of these systems in the hospitality industry as the usage decision is
voluntary basis. Therefore, in order to eliminate uncertainties as much as possible and facilitate
favorable outcomes, it is essential for hospitality operators and technology vendors to pay special
attention to users’ perception of risks associated with the use of RFID cashless payment systems.
In this regard, it is suggested that hospitality organizations and technology vendors should reduce
users’ perception of risk by offering system performance guarantees while information their
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users about the benefits and usefulness of the system on a regular basis (Chiu et al., 2014).
systems in particular developing rapidly creating concerns and uncertainties about their future.
Therefore, it is extremely important that hospitality technology decision makers understand how
potential users’ perceptions and intentions forms toward RFID cashless payment systems. In this
sense, the findings of this study provide useful information about how customers perceive RFID
cashless payment systems and what are the factors affecting their behavioral intentions.
Compared to original TAM model, the model developed in this study suggested that in addition
to perceived ease of use and perceived usefulness, other factors such as perceived risk and self-
efficacy contribute to the users’ intention to adopt RFID cashless payment systems. Equipped
with this information, hospitality operators will be able to best utilize RFID cashless payment
systems in their organizations and will be able to come up with effective marketing strategies to
Like in most technology acceptance studies, this study is also subject to a number of
limitations. First of all, in this study, users’ intentions were measured instead of their actual
18
behavior. In other words, this study was a perception-based study and actual RFID cashless
payment systems usage was not considered. Brief explanation about RFID technology in general
and RFID cashless payment systems in particular were provided in the beginning of the survey
and presumed to be enough for participants to form some basic perceptions toward RFID
cashless payment systems. Therefore, future research which will use actual behavior measures
may deliver more precise and valid findings for hospitality operators and hospitality technology
consultants.
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Secondly, even though TAM model used in this study was extended by adding two
different constructs (self-efficacy and perceived risk) to it, there may some other attitudinal and
behavioral factors responsible of explaining users’ behavioral intentions to use RFID cashless
payment systems. Therefore, future research which examines additional constructs (e.g.,
perceived privacy and security, trust, compatibility and satisfaction) will provide valuable
information for predicting users’ RFID classless payment system usage behavior. In addition,
even though RFID technologies have been utilized by hospitality operators in different concepts
for a while, RFID cashless payment systems can be still considered as a relatively new
phenomenon. Therefore, future research should perform a longitudinal study by considering the
impact of time on users’ perceptions and behavioral intentions. Finally, this research was limited
to US consumers making the data collected in this study not generalizable to all groups of users
with diverse cultural backgrounds. Therefore, future research which would be conducted in
different countries should offer valuable findings in comparison of cultural differences in RFID
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23
Tables
Demographic Characteristics N %
Gender 166 54.4
Male 135 44.3
Female 4 1.3
Missing 305 100
Total
Age
18-30 48 15.7
31-40 48 15.7
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41-50 73 23.9
51-60 76 24.9
61 and older 58 19.0
Missing 2 0.7
Total 305 100
Income
$20,000 or less 33 10.8
$21,000-$40,000 48 15.7
$41,000-$60,000 76 24.9
$61,000-$80,000 77 25.2
$81,000 or more 69 22.6
Missing 2 0.7
Total 305 100
Education
Below High School 2 0.7
High School 38 12.5
Associate’s Degree 85 27.9
Bachelor’s Degree 123 40.3
Master’s Degree 43 14.1
Doctorate Degree 13 4.3
Missing 1 0.3
Total 305 100
Past Experience
Yes 214 70.2
No 91 29.8
Total 305 100
Table 2: Measurement Model Results
I could use RFID payment systems if I had only software manuals for
reference. 0.77
Perceived Usefulness (PU) 0.96 0.88
I believe payment transactions would be difficult to perform without
RFID payment systems. 0.95
I believe using RFID payment systems saves me time. 0.92
Overall, I find RFID payment systems useful. 0.92
I believe using RFID payment systems enhances the effectiveness of the
payment process. 0.90
Perceived Ease of Use (PEOU) 0.91 0.73
I believe using RFID payment systems will not make me more
confused. 0.72
I believe my interaction with RFID payment systems will be easy to
understand. 0.82
Overall, I believe RFID payment systems are easy to use. 0.94
I find it cumbersome to use RFID payment systems. 0.94
Perceived Risk (PR) 0.93 0.79
RFID payment systems would not frustrate because of its poor
performance. 0.83
RFID payment systems would be effective as I think. 0.89
RFID payment systems would be worth its cost. 0.90
Comparing with other technologies, RFID payment systems do not have
more uncertainties. 0.93
Intention to Use 0.93 0.83
Given the chance I intend to use RFID payment systems. 0.87
Given the chance I predict that I should use RFID payment systems 0.89
Given the chance I plan to use RFID payment systems 0.93
Table 3: Discriminant Validity Matrix
1 2 3 4 5
1. PEOU 0.85
2. SE 0.13 0.85
3. PU 0.62 0.10 0.93
4. PR -0.62 0.16 -0.64 0.89
5. IU 0.64 0.12 0.62 0.66 0.91
Off-diagonal elements: Squared inter-construct correlations.
Diagonal elements (bold): AVEs
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Perceived
H2
Usefulness
H5
Self-
Efficacy
H7
H3 Intention
to Use
H4
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Perceived
Risk H1 H6
Perceived
Ease of Use
Figure 2: Hypothesis Testing Results
Perceived
0.02n.s
Usefulness
0.43***
Self-
Efficacy 0.41***
-0.47***
Intention
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to Use
-0.27***
Perceived
Risk 0.13** 0.35***
Perceived
Ease of Use