Consumption values and mobile banking services: understanding the urban–rural dichotomy in a developing economy

Abstract

PurposeThis study develops a theoretical model of consumption values regarding the technology adoption of mobile banking (m-banking) services, with the financial service sector as the empirical context. This study aims to evaluate whether consumption values influence trust and intention. Furthermore, the authors explore how the consumer type (i.e. urban vs rural) differs in consumption values regarding adopting m-banking services.Design/methodology/approachThe data for this study were gathered from 246 responses collected from individuals living in a country with a developing market, using a survey instrument. The six study hypotheses were tested using partial least squares structural equation modeling.FindingsThe authors found support for effects from functional, epistemic and emotional value on intention. Functional and emotional value significantly influenced trust, while social and epistemic value did not. Social value was a significant moderator between functional value and intention. Consumers who were relatively unconcerned with social value were more motivated by functional value, while consumers who placed great emphasis on social value were motivated by epistemic value. Multigroup analysis showed that the effect from functional value on trust was stronger for urban than rural customers, while the effect from emotional value on trust was stronger for rural than urban customers.Practical implicationsOverall, functional value is the strongest predictor of trust and intention; therefore, bank managers are encouraged to promote m-banking services' functional value to increase trust and attract more users by promoting their companies' m-banking application. M-banking customers can also be classified based on the benefits in which they are most interested.Originality/valueThe study is one of the first attempts to demonstrate empirically how consumption values' dimensions drive m-banking use among different types of customers in a developing market context with a high m-banking penetration rate.

Financial Inclusion of the Elderly: Exploring the Role of Mobile Banking Adoption

“…Mobile banking can be perceived as the response of banking institutions to customers' needs as the habits of these customers change due to the adoption and use of mobile technologies (Albashrawi & Motiwalla, 2017). Mobile banking offers both the clients and banks a variety of benefits including portability, accessibility, inexpensive service, readily available service, convenience as well as a broader reach of consumers, high level of security and enhanced revenues (Eckhardt et al, 2009;Laukkanen, 2016;Karjaluoto et al, 2021).…”

Developing Universally Applicable Service Quality Assessment Model Based on the Theory of Consumption Values, and Using Fuzzy Linguistic Preference Relations to Empirically Test Three Industries

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Guest editorial

“…The first is authored by Raman and Aashish (2021) and investigates the antecedents of mobile payment systems in India. The second is authored by Karjaluoto et al (2021) and examines Mauritian consumers' consumption values within the context of m-banking services. Then, the special issue presents three studies that investigate new research trends in mobile and digital banking services.…”

“…In the second paper, using the theory of consumption values as the research framework, Karjaluoto et al (2021) study the effect of values on trust in service providers and on intentions of using m-banking services. The authors further explore how m-banking adoption may vary according to urban vs rural consumers' consumption values.…”

“…The study by Karjaluoto et al (2021) sheds light on the differences that may exist between urban and rural consumers' consumption values and how these values drive them to adopt m-banking. For instance, the effect of the functional value on trust is found to be stronger for urban than rural customers, while the effect of the emotional value on trust is found to be stronger for rural than urban customers.…”