Demographic Influences on Technology Adoption Behavior:A Study of E-Banking Services in India

Authors

  •   Vikas Chauhan Research Scholar (JRF), Prestige Institute of Management and Research Indore, 2, Education and Health Sector, Scheme No. 54, Near Bombay Hospital, Indore - 452 010, Madhya Pradesh
  •   Vipin Choudhary Associate Professor and Coordinator - Entrepreneurship Cell, Prestige Institute of Management and Research Indore, 2, Education and Health Sector, Scheme No. 54, Near Bombay Hospital, Indore - 452 010, Madhya Pradesh
  •   Sonam Mathur Assistant Professor, Prestige Institute of Management and Research Indore, 2, Education and Health Sector, Scheme No. 54, Near Bombay Hospital, Indore - 452 010, Madhya Pradesh

DOI:

https://doi.org/10.17010/pijom/2016/v9i5/92571

Keywords:

Internet Banking

, e-Banking, Technology Adoption Behavior, ANOVA

M3

, M30, M31

Paper Submission Date

, November 20, 2015, Paper sent back for Revision, March 24, 2016, Paper Acceptance Date, April 19, 2016.

Abstract

In this era of advanced and innovative technological development, every financial institution is trying to take advantage of the advanced technology and wants to adopt it to improve its services for its clients. Similarly, the banking industry has been focusing upon developing innovative Internet/e- banking delivery channels and services. The purpose of the present study was to examine the impact of demographic characteristics such as age, gender, monthly family income, marital status, educational qualification, and Internet usage experience on the adoption behavior of e-banking in India. The study adopted basic constructs of the technology acceptance model (TAM) such as perceived usefulness, perceived ease of use, intention to use, and attitude and included additional factors such as social norms and perceived risk to measure e-banking adoption behavior. The study also performed a factor wise analysis to provide a more effective conclusion. The results showed that with the exception of marital status, all the demographic variables had a significant effect on adoption of e-banking, and it was also revealed that only age had a significant effect on all the measured factors. The results provide implications for bank managers to adopt appropriate strategies to encourage e-banking adoption among the consumers having different demographic characteristics in India.

Downloads

Download data is not yet available.

Downloads

Published

2016-05-01

How to Cite

Chauhan, V., Choudhary, V., & Mathur, S. (2016). Demographic Influences on Technology Adoption Behavior:A Study of E-Banking Services in India. Prabandhan: Indian Journal of Management, 9(5), 45–59. https://doi.org/10.17010/pijom/2016/v9i5/92571

Issue

Volume 9, Issue 5, May 2016

Section

Technology Management
Crossref
Scopus
Google Scholar
Europe PMC

References

Abbad, M. M. (2013). E banking in Jordan. Behaviour & Information Technology, 32 (7), 681-694.

Amin, H. (2009). An analysis of online banking usage intentions: An extension of the technology acceptance model. International Journal of Business and Society, 10 (1), 27-40.

Babiarz, P., & DeVaney, S. A. (2007). Adopters of Internet banking in 2001 and 2004. Consumer Interests Annual, 53, 176-186.

Bagozzi, R.P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16 (1), 74-94.

Beckett, A., Hewer, P., & Howcroft, B. (2000). An exposition of consumer behaviour in the financial services industry. The International Journal of Bank Marketing, 18 (1), 15-26.

Branca, A. S. (2008). Demographic influences on behavior : An update to the adoption of bank delivery channels. International Journal of Bank Marketing, 26 (4), 237-259.

Burke, R. R. (2002) . Technology and the customer interface : What consumers want in the physical and virtual store. Journal of the Academy of Marketing Science, 30 (4) 411- 432.

Chang, Y. T. (2005). Dynamics of Internet banking adoption. ESRC Centre for Competition Policy, University of East Anglia CCP Working Paper 06-3. Retrieved from http://competitionpolicy.ac.uk/documents/8158338/8256117/CCP+Working+Paper+06-3.pdf

Chauhan, V., & Choudhary, V. (2015). Internet banking: Challenges and opportunities in Indian context. Apeejay - Journal of Management Sciences and Technology, 2 (3), 29-40.

Cheng, T.C., Lam, D.Y., & Yeung, A.C. (2006). Adoption of internet banking: An empirical study in Hong Kong. Decision Support Systems, 42 (3), 1558-1572.

Chung, W., & Paynter, J. (2002). An evaluation banking in New Zealand of Internet. Proceedings of the 35th Hawaii International Conference on System Sciences (HICSS). Retrieved from https://www.computer.org/csdl/proceedings/hicss/2002/1435/07/14350185b.pdf

Davis, F. D. (1986). A technology acceptance model for empirically testing new end-user information systems: Theory and results (Master's Thesis). Sloan School of Management. Retrieved from https://www.researchgate.net/profile/Fred_Davis2/publication/35465050_A_technology_acceptance_model_for_empirically_testing_new_enduser_information_systems__theory_and_results_/links/0c960519fbaddf3ba7000000.pdf

Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13 (3), 319 - 339.

Davis, F.D., Bagozzi, R.P., & Warshaw, P.R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35 (8), 982-1003.

Gan, C., Clemes, M., Limsombunchai, V., & Weng, A. (2006). A logit analysis of electronic banking in New Zealand. International Journal of Bank Marketing, 24 (6), 360-383.

Hair, J.F., Anderson, R.E., Tatham, R.L. & Black, W.C. (1998). Multivariate data analysis (7thed.). New York : Pearson Prentice Hall.

Howcroft, B., Hamilton, R., & Hewer, P. (2002). Consumer attitude and the usage and adoption of home-based banking in the United Kingdom. International Journal of Bank Marketing, 20 (3), 111-121.

Ilett, D. (2005). Online bankers to double by 2010. Silicon.com. Retrieved from http://www.silicon.com/financialservices/0,3800010322,39153014,00.htm

Izogo, E.E., Nnaemeka, O.C., Onuoha, A.O. & Ezema, K.S. (2012). Impact of demographic variables on consumers' adoption of E-banking in Nigeria: An empirical investigation. European Journal of Business and Management, 4 (17), 27-39.

Kai-ming Au, A., & Enderwick, P. (2000). A cognitive model on attitude towards technology adoption. Journal of Managerial Psychology, 15 (4), 266 - 282.

Karjaluoto, H., Mattila, M., & Pento, T. (2002). Factors underlying attitude formation towards online banking in Finland. International Journal of Bank Marketing, 20 (6), 261 - 272.

Kennett, P., Moschis, G., & Bellenger, D. (1995). Marketing financial services to mature customers. Journal of Services Marketing, 9 (2), 62-72.

Kerem, K. (2002). Adoption of electronic banking: Underlying consumer behaviour and critical success factors. Case of Estonia. Tallinn Technical University. Retrieved from http://www.lse.ac.uk/media@lse/research/EMTEL/conference/papers/kerem.pdf

Khan, N. M., & Emmambokus, N. (2011). Customer adoption of Internet banking in Mauritius. International Journal of Business Research and Management, 2 (2), 53 - 58.

Kline, R. B. (2011). Principle and practice of structure equation modeling (3rd ed.). New York : The Guildford Press.

Kolodinsky, J. M., Hogarth, J. M., & Hilgert, M. A. (2004). The adoption of electronic banking technologies by U.S. consumers. International Journal of Bank Marketing, 22 (4), 238-259.

Kuchar, V. (2012). A study on customers' perception towards Internet banking in Ahmedabad city. Indian Journal of Research, 1 (9), 83- 85.

Laforet S., & Li X. (2005). Consumers' attitudes towards online and mobile banking in China. International Journal of Bank Marketing, 23 (5), 362-380.

Lassar, W. M., Manolis, C., & Lassar , S . S . (2005). The relationship between consumer innovativeness, personal characteristics, and online Banking adoption . International Journal of Bank Marketing, 23 (2), 176-199.

Lee, E. & Lee, J. (2000). Haven't adopted electronic financial services yet? The acceptance and diffusion of electronic banking technologies. Financial Counseling and Planning, 11 (1), 49-60.

Lee, E., Lee, J., & Eastwood, D. (2003). A two-step estimation of consumer adoption of technology based service innovations. Journal of Consumer Affairs, 37(2), 256-82.

Lee, E., Lee, J., & Schumann, D. (2002). The influence of communication source and mode on consumer adoption of technological innovations. Journal of Consumer Affairs, 36 (1), 1-28.

Liao, Z., & Cheung, M. (2003). Challenges to Internet E-banking. Communications of the ACM, 46 (12), 248-250.

Lichtenstein, S., & Williamson, K. (2006). Understanding consumer adoption of Internet banking: An interpretive study in the Australian banking context. Journal of Electronic Commerce Research, 7 (2), 50-66.

Mattila, M., Karjaluoto, H., & Pento, T. (2003). Internet banking adoption among mature customers: Early majority or laggards. Journal of Services Marketing, 17 (1), 514-528.

Nasri, W., & Charfeddine, L. (2012). Factors affecting the adoption of internet banking in Tunisia: An integration theory of acceptance model and theory of planned behavior. The Journal of High Technology Management Research, 23 (1), 1-14.

Nysveen, H., Pedersen, P.E., & Thorbjornsen, H. (2005). Intentions to use mobile services: Antecedents and cross service comparisons. Journal of the Academy of Marketing Science, 33 (3), 330-346.

Onyia, O. P., & Tagg, S. K. (2011). Effects of demographic factors on bank customers' attitudes and intention toward Internet banking adoption in a major developing African country. Journal of Financial Services Marketing, 16 (3/4), 294 - 315.

Ozdemir, S., Trott, P., & Hoecht, A. (2008). Segmenting Internet banking adopter and non-adopters in the Turkish retail banking sector. International Journal of Bank Marketing, 26 (4), 212-236.

Padachi, K., Rojid, S., & Seetanah, B. (2008). Investigating into the factors that influence the adoption of Internet banking in Mauritius. Journal of Internet Business, 5 (1), 99-120.

Park, S. Y. (2009). An analysis of the technology acceptance model in understanding university students' behavioral intention to use e-Learning. Educational Technology & Society, 12 (3), 150 - 162.

Pavlou, P.A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7 (3), 101-134.

Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., & Pahnila, S. (2004). Consumer acceptance of online banking: An extension of the technology acceptance model. Internet Research, 14 (1), 224-235.

Premalatha, J. R. (2014). Influence of demographic profile on acceptance of Internet banking in a non metro city in Tamil Nadu, India : An empirical study. Journal of Internet Banking and Commerce, 19 (3), 1-15.

Raida, R. E., & Neji, B. (2013). The adoption of the E-banking: Validation of the technology acceptance model. Technology and Investment, 4 (3), 197-203.

Ramayah, T., & Koay, P. L. (2002). An exploratory study of internet banking in Malaysia. In the Proceedings of the 3rd International Conference on Management of Innovation and Technology (ICMIT '02 & ISMOT '02), Hangzhou City, P. R. China.

Riffai, M., Grant, K., & Edgar, D. (2011). Big TAM in Oman: Exploring the promise of on-line banking, its adoption by customers and the challenges of banking in Oman. International Journal of Information Management, 32 (3), 239 - 250.

Riquelme, H. E., & Rios, R. E. (2010). The moderating effect of gender in the adoption of mobile banking. International Journal of Bank Marketing, 28 (5), 328-341.

Rogers, E. M. (2003). Diffusion of innovations (5th Edition). New York, NY : Free Press.

Roszkowski, M. J., Snelbecker, G. E., & Leimberg, S. R. (1993). Risk tolerance and risk aversion. In S. R. Leimberg, M. J. Satinsky, R. T. LeClair, R.J. Jr. Doyle (eds.), The tools and techniques of financial planning (4th ed., pp. 213 - 226). Cincinnati, OH: National Underwriter.

Safeena, R., Kammani, A., & Date, H. (2014). Assessment of internet banking adoption: An empirical analysis. Arabian Journal for Science and Engineering, 39 (2), 837-849.

Suganthi, R., Balanchander, K. G., & Balanchandran, V. (2001). Internet banking patronage: An empirical investigation of Malaysia. Journal of Internet Banking and Commerce, 6 (1), 41-65.

Suh, B., & Han, I. (2002). Effect of trust on customer acceptance of internet banking. Electronic Commerce Research and Applications, 1 (3), 247-263.

Sung, J., & Hanna, S. (1996). Factors related to risk tolerance. Financial Counseling and Planning, 7 (1), 11-20.

Sylvie, L., & Xiaogan, L.(2005). Consumers' attitudes towards online and mobile banking in China. International Journal of Banking Marketing, 23 (5), 362-380.

Venkatesh, V., & Davis, F.D. (2000). A theoretical extension of the technology acceptance model : Four longitudinal field studies. Management Science, 46 (2), 186 - 204.

Venkatesh, V. (2000). Determinants of perceived ease of use: Integrating perceived behavioral control, computer anxiety and enjoyment into the technology acceptance model. Information System Research, 11(4), 342 - 365.

Venkatesh, V., & Morris, M. G. (2000). Why don't men ever stop to ask for directions? Gender, social influence, and their role in technology acceptance and usage behavior. MIS Quarterly, 24 (1), 115-139.

Venkatesh, V., Morris, M.G., Davis, G.B., & Davis, F.D. (2003). User acceptance of information technology : Towards a unified view. MIS Quarterly, 27 (3), 425-478.

Vijayan, P., Vignesen, P., & Bala, S. (2005). Multimedia banking and technology acceptance theories. Journal of Internet Banking and Commerce, 10 (1), 1-7.

Wang, Y., Wang, Y., Lin, H., & Tang, T. (2003). Determinants of user's acceptance of internet banking : An empirical study. International Journal of Service Industry Management, 14 (5), 501-519.

Xue, M., Hitt, L.M., & Chen, P.Y. (2011). Determinants and outcomes of internet banking adoption. Management Science, 57 (2), 291-307.

Yousafzai, S.Y., Foxall, G.R., & Pallister, J.G. (2010). Explaining internet banking behavior : Theory of reasoned action, theory of planned behavior, or technology acceptance model? Journal of Applied Social Psychology, 40 (5), 1172-1202.

Yuan, X., Lee H.S., & Kim S.Y. (2010). Present and future of Internet banking in China. Journal of Internet Banking and Commerce, 15 (1), 1-16.

Zarafat, H., Sharif, S. P., & Ming, C. W. (2013). Demographic and social differences in the acceptance of Internet banking: An empirical study of Malaysia. International Journal of Marketing Practices, 1 (1), 01-15.

Zheng, L., & Zhong, Y. (2005). The adoption of virtual banking in China: An empirical study. Chinese Business Review, 4 (6), 75-78.