Investigating the drivers of internet banking adoption decision

Abstract

PurposeThe paper seeks to compare, through empirical evidence, two widely adopted models (the Technology Acceptance Model (TAM) and the Diffusion of Innovations (DoI) model) to an underutilized one (Perceived Characteristics of the Innovation) in order to examine which is better in predicting consumer adoption of internet banking (IB), while investigating innovation attributes vis‐à‐vis other important predictors of adoption of innovations, such as consumer personal characteristics.Design/methodology/approachThe data derive from both users and non‐users of IB through a web survey. The paper assesses the psychometric properties of the measures through confirmatory factor analysis and then employs logistic regression analysis in order to assess and compare the ability of the models to accurately predict consumer adoption of IB.FindingsThe paper finds that PCI performed significantly better than TAM and DoI in predicting consumer adoption of IB, whereas the addition of consumer demographics and psychographics further improved the predictive ability of the overall logit model.Research limitations/implicationsLimitations of the study include the non‐random nature of the IB non‐users sample, and the fact that this was a study of a single shopping context (i.e. banking). Non‐usability innovation characteristics are important predictors of consumer adoption of technologically based innovations. Bank managers should reconsider their segmentation and targeting strategies in the light of more refined as well as new segmentation criteria.Originality/valueThe PCI model has never been examined within online contexts. The paper also incorporates other non‐usability types of characteristics (i.e. social, psychological) into TAM and DoI, and identifies the moderating role of shopping context, between innovation characteristics and decision to adopt.

Role of Innovation Attributes in Explaining the Adoption Intention for the Interbank Mobile Payment Service in an Indian Context

“…These two values were found to be comparatively lower than the values from the earlier studies measuring influences of different independent variables on the adoption of a given innovation (Ungan, 2004;Gounaris and Koritos, 2008;Li. 2008).…”

Determinants of Internet Banking Adoption in Jordan

“…This idea is supported by Chong, et al, (2010, p. 272), "Given that users do not have face to-face interaction in an internet environment, user friendliness and the ease of use of the web sites will lessen the threat to use internet banking by the customers." Many of the researches supported that there is a positive and upward relationship between the perceived ease of use and the probability of adoption of internet banking (Wang, et al, 2003;Hernandez & Mazzon, 2007;Gounaris & Koritos, 2008). On the other hand, other researches (Pikkarainen et al, 2004;Eriksson et al, 2005) contradicted this result and concluded that the ease of use has no influence on the internet adoption.…”

The Level of Factors Influences on Customer’s Adoption of Internet Banking: The Case of Vietnam

“…By that way, this research also elicits each person aware which advantages they can get more than the traditional bank and how efficiency this service brings about. These findings are consisted with the previous researches of Rao et al [29], Pikkarainen et al [30] and Gounaris and Koritos [31].…”