How do customers respond to digital banking products and services in New Zealand?

Fast development in the technology and the intense competition have driven banks to spend considerable money on transforming from traditional banking business to digital banking business to sustain competitive advantage. Since the changing habits, customers are demanding new approaches to access financial services through both secured and unsecured digital channels. This study develops and tests a modified theoretical model based on the Unified Theory of Acceptance and Use of Technology (UTAUT) to analyse how customers respond to digital banking products or services in New Zealand from behaviour intention perspective. This study finds that the individuals’ behaviour intention towards digital banking products or services can be predicted from performance expectancy, effort expectancy, and service quality conditions. Besides, this study discovers that customer gender, age and experience are having moderating influence when determining the intention of using digital banking products or services. Study contributes to knowledge in the field of individual technology acceptance research. It demonstrates that customer satisfaction also plays a major role in the digital banking context.

Keywords:

Digital banking products, User acceptance, UTAUT Technology Acceptance, PLS,

PDF

___

Ahire, S. L., & Devaraj, S. (2001). An empirical comparison of statistical construct validation approaches. IEEE Transactions on Engineering Management, 48(3), 319-329.
Alshaikh, F., Ramzan, F., Rawaf, S., & Majeed, A. (2014). Social network sites as a mode to collect health data: a systematic review. Journal of medical Internet research, 16(7), e171.
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological bulletin, 103(3), 411.
Arnold, V., & Sutton, S. G. (1998). The theory of technology dominance: Understanding the impact of intelligent decision aids on decision maker’s judgments. Advances in accounting behavioral research, 1(3), 175-194.
Baker, D. A., & Crompton, J. L. (2000). Quality, satisfaction and behavioral intentions. Annals of tourism research, 27(3), 785-804.
Berry, L. L., & Berry, L. L. (2016). Revisiting “big ideas in services marketing” 30 years later. Journal of Services Marketing, 30(1), 3-6.
Boulding, W., Kalra, A., Staelin, R., & Zeithaml, V. A. (1993). A dynamic process model of service quality: from expectations to behavioral intentions. Journal of marketing research, 30(1), 7.
CANSTAR. (2016). Online Banking Award 2016 - Canstar. Retrieved from CANSTAR: http://www.canstar.co.nz/star-ratings-reports/online-banking/
Caruana, A. (2002). Service loyalty: The effects of service quality and the mediating role of customer satisfaction. European journal of marketing, 36(7/8), 811-828.
Churchill Jr, G. A., & Surprenant, C. (1982). An investigation into the determinants of customer satisfaction. Journal of marketing research, 491-504.
Compeau, D. R., & Higgins, C. A. (1995). Application of social cognitive theory to training for computer skills. Information systems research, 6(2), 118-143.
Couper, M. P. (2011). The future of modes of data collection. Public Opinion Quarterly, 75(5), 889-908.
Crabbe, M., Standing, C., Standing, S., & Karjaluoto, H. (2009). An adoption model for mobile banking in Ghana. International Journal of Mobile Communications, 7(5), 515-543.
Cuesta, C., Ruesta, M., Tuesta, D., & Urbiola, P. (2015). The digital transformation of the banking industry. BBVA Research.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340.
Ghobadian, A., Speller, S., & Jones, M. (1994). Service quality: concepts and models. International journal of quality & reliability management, 11(9), 43-66.
Giese, J. L., & Cote, J. A. (2000). Defining consumer satisfaction. Academy of marketing science review 2000, 1.
Haenlein, M., & Kaplan, A. M. (2004). A beginner's guide to partial least squares analysis. Understanding statistics, 3(4), 283-297.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: indeed a silver bullet. Journal of Marketing Theory and Practice, Vol. 19 No. 2, pp. 139-152.
Hair, J., Blake, W., Babin, B., & Tatham, R. (2006). Multivariate Data Analysis. New Jersey: Prentice Hall.
Howcroft, B., Hamilton, R., & Hewer, P. (2002). Consumer attitude and the usage and adoption of home-based banking in the United Kingdom. national journal of bank marketing, 20(3), 111-121.
Jaradat, M., & Al Rababaa, M. (2013). Assessing key factor that influence on the acceptance of mobile commerce based on modified UTAUT. International Journal of Business and Management, 8(23), 102.
Kock, N. (2015). WarpPLS 5.0 User Manual. Laredo, TX: ScriptWarp Systems.
Levesque, T., & McDougall, G. H. (1996). Determinants of customer satisfaction in retail banking. International Journal of Bank Marketing, 14(7), 12-20.
Liébana-Cabanillas, F., Muñoz-Leiva, F., Sánchez-Fernández, J., & Viedma-del Jesús, M. I. (2016). The moderating effect of user experience on satisfaction with electronic banking: empirical evidence from the Spanish case. Information Systems and e-Business Management, 14(1), 141-165.
McMillan, J. (2015). The end of banking: money, credit, and the digital revolution. BookBaby.
Mihelis, G., Grigoroudis, E., Siskos, Y., Politis, Y., & Malandrakis, Y. (2001). Customer satisfaction measurement in the private bank sector. European Journal of Operational Research, 130(2), 347-360.
Morris, M. G., Venkatesh, V., Davis, G. B., & Davis, F. D. (2003). User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, 27(3), 425-478.
Nulty, D. D. (2008). The adequacy of response rates to online and paper surveys: what can be done? Assessment & evaluation in higher education, 33(3), 301-314.
Oliveira, P., & von Hippel, E. (2011). Users as service innovators: The case of banking services. Research Policy, 40(6), 806-818.
Olsen, S. O. (2002). Comparative evaluation and the relationship between quality, satisfaction, and repurchase loyalty. Journal of the academy of marketing science, 30(3), 240-249.
Palanisamy, R., Verville, J., Bernadas, C., & Taskin, N. (2010). An empirical study on the influences on the acquisition of enterprise software decisions: A practitioner's perspective. Journal of Enterprise Information Management, 23(5), 610-639.
Pallant, J. (2013). SPSS Survival Manual. McGraw-Hill Education (UK).
Parise, S., Guinan, P. J., & Kafka, R. (2016). Solving the crisis of immediacy: How digital technology can transform the customer experience. Business Horizons, 59(4), 411-420.
Ranjan, K. R., & Read, S. (2016). Value co-creation: concept and measurement. Journal of the Academy of Marketing Science, 44(3), 290-315.
Rife, S. C., Cate, K. L., Kosinski, M., & Stillwell, D. (2016). Participant recruitment and data collection through Facebook: The role of personality factors. International Journal of Social Research Methodology, 19(1), 69-83.
Şanlı, B., & Hobikoğlu, E. (2015). Development of Internet Banking as the Innovative Distribution Channel and Turkey Example. Journal Of Internet Banking & Commerce, 20(3), 1-5.
Santos, J. (2003). E-service quality: a model of virtual service quality dimensions. Managing Service Quality: An International Journal, 13(3), 233-246.
Schmitt, M. G., & Gautam, T. (2017). Transformation of Banking Institutions: Comparing Germany and India. In The Palgrave Handbook of Managing Continuous Business Transformation (pp. pp. 151-171). Palgrave Macmillan UK.
Sharma, S. K., Govindaluri, S. M., & Al Balushi, S. M. (2015). Predicting determinants of Internet banking adoption: A two-staged regression-neural network approach. Management Research Review, 38(7), 750-766.
Singh, A., & Hess, T. (2017). How Chief Digital Officers Promote the Digital Transformation of their Companies. MIS Quarterly Executive, 16(1).
Slade, E. L., Dwivedi, Y. K., Piercy, N. C., & Williams, M. D. (2015). Modeling consumers’ adoption intentions of remote mobile payments in the United Kingdom: extending UTAUT with innovativeness, risk, and trust. Psychology & Marketing, 32(8), 860-873.
Su, L., Swanson, S. R., & Chen, X. (2016). The effects of perceived service quality on repurchase intentions and subjective well-being of Chinese tourists: The mediating role of relationship quality. Tourism Management, 52, 82-95.
Tam, J. L. (2004). Customer satisfaction, service quality and perceived value: an integrative model. Journal of marketing management, 20(7-8), 897-917.
Tapscott, D. (2008). Grown Up Digital: How the Net Generation is Changing Your World HC. McGraw-Hill.
Ukpabi, D., & Karjaluoto, H. (2016). Consumers’ acceptance of information and communications technology in tourism: A review. Telemat. Informat.
Venkatesh, V., & Davis, F. D. (2000). A theoretical extension of the technology acceptance model: Four longitudinal field studies. Management science, 186-204.
Westbrook, R. A. (1981). Sources of consumer satisfaction with retail outlets. Journal of retailing, 57(3), 68-85.
Yang, T., Mok, Q., Au, W. K., Lai, I. K., & Ng, K. K. (2016, October). The Acceptance of WeChat Questionnaire Function for Data Collection: A Study in Postgraduate Students in Macau. Educational Technology (ISET), 2016 International Symposium, pp. 13-17.
Yu, C. S. (2012). Factors affecting individuals to adopt mobile banking: Empirical evidence from the UTAUT model. Journal of Electronic Commerce Research, 13(2), 104.
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1988). Communication and control processes in the delivery of service quality. The Journal of Marketing, 35-48.
Zhou, T., Lu, Y., & Wang, B. (2010). Integrating TTF and UTAUT to explain mobile banking user adoption. Computers in human behavior, 26(4), 760-767.
Zhu, F. X., Wymer, W., & Chen, I. (2002). IT-based services and service quality in consumer banking. International Journal of Service Industry Management, 13(1), 69-90.