Academic journal article South Asian Journal of Management

Perceived Risk and Technology Acceptance Model in Self-Service Banking: A Study on the Nature of Mediation

Academic journal article South Asian Journal of Management

Perceived Risk and Technology Acceptance Model in Self-Service Banking: A Study on the Nature of Mediation

Article excerpt


Risk as a concept was introduced to field of economics by F H Knight in 1920, who distinguished between risk, uncertainty and profit (Knight, 2012). The concept of risk was linked to consumer behavior and marketing by Bauer (1960). Bauer defined risk as bein g any ac tion that produces consequences which a consumer cannot anticipate with approximating certainty, and these outcomes might be pleasant or unpleasant (Bauer, 1960). Since then researchers have focused on conceptualizing Perceived Risk (PR) as a construct in order to facilitate quantification of its perception (Bettman, 1973; Kaplan, Szybillo, and Jacoby, 1974; Dowling and Staelin, 1994; and Mitchell, 1999). Owing to these efforts PR over the years has been conceptualized both as a one-dimensional and as a multi-dimension construct. An ode to the researcher effort is 677,000 articles in only 0.04 seconds on Google scholar when searched for PR and consumer behavior.

One of the most popular constructs for PR from across varied literature was one proposed by Kaplan. Kaplan and his associates proposed an overall construct to measure PR (Kaplan, Szybillo and Jacoby, 1974). This construct has successfully explained consumer behavior across innovative e-technology oriented sales and distributions channels like online purchase behavior (Miyazaki and Fernandez, 2001; Doolin, Dillon, Thompson, and Corner, 2005; and Kansal, 2014) and self-service banking (Nui Polatoglu and Ekin, 2001; and Lee, 2009). In terms of self-service banking these researchers have associated PR with intention to adopt self-service banking. In India too research has been done to try and associate PR with low adoption rate of self-service banking (Datta, 2010; and Roy, Kesharwani, and Singh Bisht, 2012). These researches have used the established models of PR to test its association with adoption of self service banking. On basis of negative relationship established by these studies it is suggested that PR could be one of the reasons why 65% of the customers registered for online banking remain inactive (public as well as private banks) and the number of registered users itself ranges between only 2% and 8% of overall number of banking transactions across all channels (EY, 2014).


Past research in area of self-service banking and PR has two major limitations. First being application of very model of PR in self-service banking research. These models/ constructs have been developed, researched and tested in developed economies. While PR is an individual's estimation and approximation of certainty of an outcome; implies that PR is a psychological construct of perception. Being a psychological construct it is influenced by conditioning of an individual's mind as illustrated by Pavlov in his experiments (Maier and Seligman, 1976). This conditioning of an individual's mind, among other things, is influenced by sociocultural variables as well (Appadurai, 1988; Archer, 1996; and Lewis and Gates, 2006). Therefore, above arguments help conclude that PR and its dimensions would have specific cultural based nuances. To develop better understanding of PR in consumer behavior the concept needs to be studied across dimensions and across cultures. Understanding this nature of PR many researchers have started working on consumer behavior and PR with respect to their cultures.

Second major limitation of self-service banking research is in context of PR in most of these studies either PR has been taken as a one dimensional construct or one of th e dimensions of the constru ct has been researched. When treated as one dimensional construct; research does not truly reflect characteristics of PR (Lee, 2009) and nuances of its effect on consumer behavior. Therefore, it is important for practitioners to develop an understanding of the sub-dimensions of perceived risk. However, not much work could be found which treated PR as a multi item construct especially with respect to self-service banking in India. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.