Academy of Indian Marketing International Conference - 2010

“Internet Banking and Consumer Behavior: Revisiting the Technology Acceptance

Model”

By

Ankit Kesharwani, IBS Hyderabad

Shailendra S. Bisht, IBS Hyderabad

Internet Banking

Transition from ‘Brick and Mortar Bank’ to ‘Mouse and Click Bank’

Virtual banking: Four forms ATM, Phone banking, Internet banking, Mobile banking

Opportunities Financial benefits Non-financial benefits

Challenges Resistance to change Increasing fraudulent activities

Source: IAMAI Report (i-cube 2009)

Technology Acceptance Model (TAM)

TechnologyCharacteristics

Perceivedease of use

Perceived usefulness

Attitude towardsuse of system

Behavioral Intention

Source: Davis (1986, 1989)

Literature Review

Models of Innovation Adoption theory of reasoned action (TRA), technology acceptance model (TAM),

motivational model (MM), theory of planned behavior (TPB), combined TAM and TPB (C-TAM-TPB), model of PC utilization (MPCU), innovation diffusion theory (IDT), and social cognitive theory (SCT).

Throughout its development, TAM has received extensive empirical support through………..

Applications (Karjaluoto et al. 2002; Chau and Li 2003; Lu et al. 2003; Chan and Lu 2004, Fusilier and Durlabhji 2005; Chiemeke et al. 2006, Guriting and Ndubisi 2006; Lee et al. 2007; Amin et al. 2008; etc)

Comparisons (Davis et al. 1989; Mathieson 1991; Taylor and Todd 1995; Venkatesh et al. 2003; etc.)

Extensions (Venkatesh and Davis 2000; Gafen et al. 2003; Pikakarainen et al. 2004; Venkatesh and Bala 2008; etc.)

Why Need to Revisit?

Literature Review

Concept of perceived risk (Tan 1999; Littler and Melanthiou 2006; Gerrard et al. 2006;

Manzano et al. 2009; etc.)Trust

(Suh and Han 2003; Mukherjee and Nath 2003; Dash and Saji 2007; etc.)

Importance of website design (Venkatesha and Agarwal 2006; Cyr 2008; Alhudaithy and

Kitchen 2009; Ganguly et al. 2009; Jiang et al. 2010; etc.)

Research Model

Research Methodology

Instrument development (35 items) Perceived ease of use, perceived usefulness, perceived behavioral

control, social influence, and behavioral intention (Venkatesh and Bala 2008); Trust and Perceived risk (Dash and Saji 2007); Website design (Cyr et al. 2008)

Sample size: 619 MBA students 78.6 % respondents fall under category of active users (i-cube 2009) 85.8 % respondents were using internet banking more than one year

Data analysis: Two-step Structural Equation Modeling (Anderson and Gerbing 1988) Measurement model: 328 responses Structural model: 291 respondents

Measurement ModelModel fit Indices: chi-square=257.62, CMIN/df=1.600, GFI=0.931,

AGFI=0.901, NFI=0.922, CFI=0.969, RMSR=0.070, RMSEA=0.047

Structural Model

Discussion

The indirect effect of PEOU on BI was 0.453 (= 0.761*0.595).

The total effect of SI on BI was 0.276 (= 0.169 + 0.128*0.595 + 0.173*181).

WB has total effect of 0.333 (= 0.125*0.181 + 0.685*0.761*595) on BI.

Result shows that WB has a greater influence on PEOU (H10: β=0.685, p<0.001) as compared to PR (H9: β=0.125, p<0.05).

Conclusion

Integrate the fragmented theories and research on perceived risk, trust, website design and individual acceptance of technology acceptance and usage;

Faced by skepticism and uncertainty, bank institutions need to reduce the trust gap to minimum possible in order to position e-banking as a viable medium of delivering banking service;

The inclusion of website design would make contributions by enriching the extant literature and future research can provide a detailed investigation of the effects of specific feature of a website on internet banking adoption.

Thank You……

16

Beliefs about behavior

AttitudeToward

The Behavior

BehavioralIntention

ActualBehavior

Subjective Norms

Evaluations ofBehavioralOutcomes

NormativeBeliefs

Motivation to comply

Ei

Bi

NBi

MTCi

Ai α Bi*Ei

SNi α Bi*MTCi

BIi α Ai*SNi

ABi ≈ BIi

Source: Theory of Reasoned Action (Fishbein and Ajzen, 1975)