An Exploratory Study of Length and Frequency of Internet Banking Usage

By Kam, Booi Hon; Riquelme, Hernan | Journal of Theoretical and Applied Electronic Commerce Research, April 2007 | Go to article overview

An Exploratory Study of Length and Frequency of Internet Banking Usage


Kam, Booi Hon, Riquelme, Hernan, Journal of Theoretical and Applied Electronic Commerce Research


Abstract

The advent of Internet has provided banks an opportunity to reduce costs, increase customer base, and mass customize by delivering their products and services through this medium. A flurry of studies on Internet banking (IB) has since emerged. The majority of these studies, however, have been directed to either IB adoption or IB service quality delivery. With few exceptions, the impact that customer satisfaction with e-banking service qualities has on IB usage remains unexplored. This study examines a sample of Australian IB users based on their frequency and length of usage. The results show that as customers become more acclimatized to IB, they use these services more often. Further, daily and frequent IB users are more pleased with "ease of use" and "aesthetics" and tend to use IB more for electronic fund transfer and foreign exchange transactions than the less frequent users. The findings suggest that banks need to develop more customized services since there are distinct market segments with different banking requirements.

Key words: Internet banking, e-business, online banking.

1 Introduction

Although the dot.com debacle has held back electronic commerce in general, financial institutions continue to press hard to move offline users online [3]. This is no surprise since nearly three times as many online households in the United States cite financial transactions as one of the most important reasons for using the Internet than those who mention purchasing products [17]. Another reason is that by using the Internet as a communication and delivery medium, banks can integrate their services to reach far more clients without the limitations of physically located delivery systems, like branches or ATMs, making it easier to cross-sell products as well as achieving scale economies. In turn, this has enabled many banks to offer competitive rates in bill payment, brokerage services, and stock market transactions [12]. Claessens et al. [9], for instance, estimated banks could lower their transaction costs from about US$1.00 for a branch transaction to US$0.20 for an Internet transaction. De Young [12] reports a broader difference still: US$1.07 per transaction in a branch compared with US$0.01 on the Internet.

Notwithstanding the "push" efforts made by banks, less than 56% of Internet users in the United States conduct online banking compared with more than 63% who carry out online purchasing [17]. The need to understand the behavioral underpinnings of internet banking (IB) adoption has resulted in attempts being made to apply some of the seminal technology adoption theories, such as (TPB) Theory of Planned Behaviour [1], (TRA) Theory of Reasoned Action [13], (TAM) Technology Acceptance Model [11]; (TAM2) [29], Social Cognitive Theory [2], and Theory of Diffusion of Innovations [27], to examine the determinants of IB adoption among consumers in different cultures (see for example [4], [6], [15], [28]).

Apart from IB adoption, research on IB has been directed toward IB service quality delivery. Some of these works include Jun and Cai [18], Joseph et al.[19], Joseph and Stone [20], and Patricio et al.[25]. With few exceptions (such as [7], [14], [26]), little is known about the impact customer satisfaction with e-banking service quality has on IB usage. This study aims to empirically assess the effects, including the manner in which, as well as the extent to which, satisfaction toward different e-banking service quality dimensions have on IB usage, both in terms of length of adoption as well as frequency of use. Specifically, this study will explore five key issues relating to IB usage:

1. Is there any correlation between length and frequency of IB use?

2. Does satisfaction with any particular e-banking service quality dimensions lead to higher IB usage?

3. Does length of IB usage necessarily imply a higher level of satisfaction with any particular e-banking service quality dimensions? …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

An Exploratory Study of Length and Frequency of Internet Banking Usage
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.