A logit analysis of electronic banking in New Zealand

Abstract

Financial institutions have been adopting internet banking since the mid 90s, predominantly due to lower operating costs associated with internet banking, and pressure from non-banks interested in entering the internet banking market. In addition, customers utilizing internet banking facilities are increasing, as the cost savings on transactions over the internet are substantial (Mols, 1998;Sathye, 1999). Internet banking enables speedy transactions, access, time and money savings through providing free paper, and complete and up-to-date transactions. The competitive landscape of financial institutions is shifting as internet banking is no longer a competitive advantage but a competitive necessity for banksThe literature has featured numerous published research papers, articles and books addressing a wide range of issues relating to electronic banking (see Pyun, Scruggs and Nam, 2002;Li, 2002;Mols, 1999). However, there is little empirical research on the effect of electronic channels on consumer's buying behaviour (Hendrikse and Christiaanse, 2000) or banking channel preferences in New ZealandThe purpose of this research is to examine consumers' decision-making between electronic banking and non-electronic banking in New Zealand. The research uses the consumer decision making process (or paradigm) to identify factors that consumers use when deciding between electronic banking and non-electronic banking. These factors include service quality dimensions, perceived risk factors, user input factors, price factors, service product characteristics, and individual factors. The demographic variables include age, gender, marital status, ethnic background, educational qualification, employment, income, and area of residence.

E-banking Functionality and Outcomes of Customer Satisfaction: An Empirical Investigation

“…The results of the multiple regression analysis signal that there is variation in the effect of e-banking factors on customer satisfaction and empirical evidence in this research suggests that adoption of e-banking factors have a significant degree of influence on customer satisfaction. This empirical evidence has provided significant support for the electronic banking literature, which substantively advocates that e-banking factors have an influence on customer satisfaction (Jayawardhena and Foley, 2000;Robinson, 2000;Pikkarainen et al, 2004;Gan et al, 2006;Hua, 2009;Wise and Ali, 2009). …”

“…With the exception of cash withdrawals, internet banking gives customers access to almost any type of banking transaction at the click of a mouse (De Young, 2001). Indeed the use of the internet as a new alternative channel for the distribution of financial services has become a competitive necessity instead of just a way to achieve competitive advantage with the advent of globalization and fiercer competition (Flavián et al, 2004;Gan and Clemes, 2006). Banks use online banking as it is one of the cheapest delivery channels for banking products (Pikkarainen et al, 2004).…”

Applying Logistic Regression to E-Banking Usage in Kumasi Metropolis, Ghana

“…In consonance to these findings, different studies on adoption of e-banking have also reported employment or occupational status (Gan et al, 2006) and level of income (Adapa et al, 2009) Vol. 6, No.…”

“…Several works (Akinci et al, 2004;Laforet & Li, 2005;Wan et al, 2005, Hernandez & Mazzon, 2007 have attempted to identify factors that possibly influence peoples' adoption of e-banking services. For example, Gan et al (2006) employed a logit model to examine consumers' choices between electronic banking and non-electronic banking in New Zealand. Cairo and Staten (1999) also used a logistic regression model to investigate the preferences of consumers using debit cards, credit cards, and cash for gasoline purchases.…”

Social Media Marketing and Business Success of Automobile Dealers in Rivers State

“…In the view of [20] social media marketing SMM "is a term which describes the actual acts of using social networks for marketing purpose". [21] notes that Social media marketing focus on people not product.…”