Showing papers in "International Journal of Bank Marketing in 2019"

Consumer attitude and intention to adopt mobile wallet in India – An empirical study

Abstract: The purpose of this paper is to empirically examine the factors that influence a consumer’s attitude and intention to use mobile wallets using a sample representative of Indian users.,A multidisciplinary model is proposed, building on the technology acceptance model (TAM) and unified theory of acceptance and use of technology (UTAUT) and other relevant research on factors, which influence technology adoption. A synthesis of review of literature on factors influencing technology adoption besides two focus group discussions (FGD) was used as a design a pilot instrument. A nationwide primary survey was conducted using the questionnaire. Convenience sampling was used to select the respondents. In total, 744 respondents participated in the survey, and 17 hypotheses were formulated and PLS-SEM was used to estimate and test the hypothesized model.,The results show that factors like perceived ease of use (PEOU), perceived usefulness (PU), trust, security, facilitating conditions and lifestyle compatibility have a significant impact on the consumer attitude and intention to use mobile wallets. Of the proposed 17 hypotheses, 15 were accepted. Ease of use significantly influenced usefulness and trust, whereas PU significantly influenced trust, attitude and intention. Security and trust were found to be play an important role in determining trust.,This study examines the perception of students and working professional from large Indian cities. A larger representative sample encompassing balanced representation from urban and rural India could enhance the scope and widen the application of the results across larger target groups. This study analyzes data at a specific point in time. Considering the rapidly changing rate of adoption of mobile wallets, a longitudinal study could, therefore, be conducted. Furthermore, the possibility of including other antecedents like relative advantage, perceived benefits, personal innovativeness among other factors, which have not been addressed here can be explored. Also, additional research can help examine the role of demographics in adoption of mobile wallets including its moderating effect.,As security and trust emerged as important constructs for acceptance of mobile wallets, there is a need for developing an integrated robust, reliable and secure infrastructure. A joint think tank involving key stakeholders (financial institutions, mobile wallet providers, government, security experts, etc.) should propose guidelines to ensure safe and secure transactions. The findings have managerial implications, which can guide companies offering mobile wallets to enhance usage and adoption of such services.,Mobile wallets have provided newer digital payment avenues to consumers while offering companies and marketers greater opportunities to market their products and services, online. However, not much is reported about the adoption of mobile wallets in India. The study is perhaps the first in India to examine the adoption of mobile wallets using a larger sample in comparison to earlier studies. The study proposes and validates additional constructs, which were not present in the original model.

An integrated framework for the adoption and continuance intention to use mobile payment apps

Abstract: The purpose of this paper is to develop and test an integrated model of the modified technology readiness index (TRI) with the extended expectation-confirmation model, in the context of information technology (E-ECM-IT) to explain the adoption and the intention to continue to use mobile payment applications (apps).,Data were collected from 426 users of mobile payment apps across South Africa. A confirmatory factor analysis was performed to validate the factor structure of the measurement items while structural equation modelling was employed to validate the proposed model and testing the hypotheses.,The overall model explained 81 per cent of variance in adoption and 78.5 per cent in the intention to continue to use mobile payment services. “Drivers” were better predictors of adoption than “inhibitors” while satisfaction emerged as the strongest predictor of continuance intentions.,To the best knowledge of the authors, this study is the first to empirically test an integrated modified TRI and E-ECM-IT model to supplement the paucity of research on the topic. The results show that the integrated model provides an enhanced way to understand the factors that influence adoption and continuance intention towards mobile payment apps. The results also add to existing knowledge of mobile technology literature.

The influence of e-banking service quality on customer loyalty

Abstract: Providing high-quality e-banking services is considered a basic strategy for attracting and retaining customers with electronic-banking platforms. The purpose of this paper is to empirically investigate a comprehensive moderated mediated mechanism for enhancing customer loyalty toward e-banking platforms via e-banking service quality (EBSQ) practices. Reliability, website design, privacy and security and customer service and support are the dimensions of EBSQ.,Data were collected through structured questionnaires from a sample of 1,028 e-banking users in India. To test the hypotheses, a structural equation modeling approach was used.,The findings showed that of the EBSQ dimensions, reliability along with privacy and security enhanced customer loyalty to e-banking. The initial trust in e-banking mediates the effects of EBSQ dimensions on customer loyalty except for website design. The mediation effects of initial trust varied between high and low-involved consumers.,This study was conducted with e-banking users in one country using cross-sectional data. Hence, the model should be replicated among e-banking users in other countries and with the longitudinal data.,Establishing a loyal customer base is an important goal for banks. This study demonstrates which specific EBSQ dimensions banks should emphasize to enhance consumers’ initial trust and loyalty toward e-banking services.,This study suggests a moderated mediated mechanism for enhancing customer loyalty to e-banking, which incorporates initial trust as a mediator and consumer involvement as a moderator. It applies cognitive-motivation-relational theory to link EBSQ dimensions with customer loyalty. Thus, this study enables a better understanding of this theory in the e-banking context.

Service quality, satisfaction, trust, and loyalty: the moderating role of main-bank and wealth status

Abstract: The purpose of this paper is to develop a comprehensive model representing the relationships among service quality, customer satisfaction, trust and loyalty in a retail banking service. Because many banks now emphasize acquiring more high-wealth and main-bank customers, this study also focuses on investigating the moderating roles of main-bank and wealth status on such relationships.,This study applies a hierarchical model to measure service quality in line with recent advances in the general-marketing and consumer-behavior literature. A total of 400 valid samples were obtained from customers of a large commercial bank in Thailand. Data were analyzed using partial least squares structural equation modeling and multigroup analysis.,Customer-perceived service quality directly and indirectly affects, via satisfaction and trust, attitudinal and behavioral loyalty. Service quality affects customer loyalty less if the customer holds main-bank status. It affects behavioral loyalty less for high-wealth customers than regular customers; however, its impacts on attitudinal loyalty are identical. Main-bank and wealth status have a co-moderating impact on the relationship between service quality and customer loyalty.,This study was conducted on a cross-sectional basis; further, longitudinal analysis could help to assess causality and time-dependent effects among variables.,The present study reconceptualizes the loyalty model, forging a deeper understanding of the moderating effects of main-bank and wealth status and thus helping banks to formulate better strategies to win customer loyalty.,This study aims to contribute to further discussions regarding the direct and indirect effects of service quality on loyalty to help banks formulate effective strategies for acquiring main-bank and high-wealth customers.

Analyzing the impact of consumer innovativeness and perceived risk in internet banking adoption: A study of Indian consumers

Abstract: The purpose of this paper is to understand consumers’ intention to adopt internet banking. The study adopted the technology acceptance model with additional constructs (i.e. consumer innate innovativeness (II), domain-specific innovativeness (DSI) and perceived security risk (PR)).,The data were collected through a questionnaire-based survey (487 usable responses) from Indian consumers. A two-step SEM approach (i.e. measurement model and structural model) was used to analyze the data.,The findings show the significant positive influence of perceived usefulness, ease of use, attitude, II and DSI on consumer’s intention to adopt internet banking. The PR was found to have a significant negative influence on consumers’ intention to adopt internet banking, and DSI was found to negatively influence PR.,The study is limited to users of a particular region of India. Furthermore, the study limits itself in determining consumers’ intention only, not actual usage.,The study is a preliminary attempt to examine consumer’s intention to adopt internet banking in India by analyzing innovativeness and perceived risk.

Service innovation, service delivery and customer satisfaction and loyalty in the banking sector of Ghana

Abstract: The concept of innovation is gaining ground steadily in the context of an increasingly competitive and highly volatile banking sector. The purpose of this paper is to find out the role of service innovation (SI) in the relationship between service delivery (SERVD), customer satisfaction (CSAT) and loyalty in the banking sector of Ghana.,Drawing from banking and marketing literature, a conceptual framework was developed and tested using data from 450 sampled customers of commercial banks in Ghana. The data were analyzed using partial least squares structural equation modeling.,The findings indicate that SI has direct influence on SERVD and CSAT. Again the findings revealed a positive relationship between SERVD, CSAT and bank customer loyalty.,This study offers theoretical support for the adoption of innovative techniques in service provision and delivery.,This paper provides an initial study into innovation management in financial services context in an emerging economy.

The effect of service quality and customer satisfaction on customer loyalty: The mediation of perceived value of services, corporate image, and corporate reputation

Abstract: The purpose of this paper is to investigate the impact of customer satisfaction, service quality, the perceived value of services, corporate image and corporate reputation on customer loyalty and their relationship in the Turkish banking industry. Mediation effects of the perceived value and corporate image and reputation are also studied. Understanding the relationships between the determinants of customer loyalty toward the bank helps management to use corporate image and reputation more effectively in its strategy, thus enhancing the institution’s position in the minds of consumers.,A model is proposed to explore the relationships of service quality and customer satisfaction with a perceived value and their effect on transforming the corporate image and corporate reputation into the form of customer loyalty toward the bank. A survey is designed within this framework and SEM analysis is conducted in order to study the nature of relationships between variables of interest hypothesized to affect customer behavior and customer loyalty. Mediation tests for perceived value and corporate image and reputation are also conducted.,The findings of the survey indicate that corporate image and corporate reputation can be used as a common marketing benchmark to measure a bank’s performance. The results demonstrated that customers perceive quality and satisfaction effects loyalty through perceived value, image and reputation.,The study was conducted in Izmir, the third biggest city of Turkey. The sample is composed of regular customers, and the sample size is enough for the study but more studies are needed to generalize the results.,The results provide information to bank managers to effectively assist them to offer appropriate customer service levels sustaining satisfaction, quality and value to the customers within the transactions.,The paper studies the determinants of customer loyalty in the Turkish banking industry and considers the effects of corporate image and corporate reputation as measured by customer satisfaction, service quality and perceived value, on customer loyalty toward banks in Turkey. This model is not studied in bank marketing in Turkey and also in the banking literature.

Factors affecting intention to use e-banking in Jordan

Abstract: Despite the wide availability of internet banking, levels of intention to use such facilities remain variable between countries. The purpose of this paper is to focus on e-banking in a country with low intention to use e-banking – Jordan – and to explain the slow uptake.,A quantitative method employing a cross-sectional survey was used as an appropriate way of meeting the research objectives. The survey was distributed to bank customers in Amman, Jordan, collecting a total of 328 completed questionnaires. SPSS and AMOS software were used, and multiple regression and artificial neural networks were applied to determine the relative impact and importance of e-banking predictors.,The statistical techniques revealed that several major factors, including perceived ease of use, perceived usefulness, security and reasonable price, stand out as the barriers to intention to use e-banking services in Jordan.,This study theorizes a series of implications on intention to use e-banking. It draws the attention of Jordanian banks to the full functionality of their e-banking systems, emphasizing positive safety features, which could contribute to changing negative customer perceptions. It also contributes to eliciting the theory of customer value among banks by focusing on how they should properly enhance their use of shared value. Moreover, it will present to managers how e-banking predictors can send meaningful and timely information to customers.

Subjective financial knowledge, prudent behaviour and income: The predictors of financial well-being in Estonia

Abstract: The purpose of this paper is to study how subjective and objective knowledge of finance, behaviour in managing personal finances and socio-economic status affect financial well-being.,The financial well-being score is constructed in quantitative financial literacy survey data from Estonia as the arithmetic mean of four statements on a five-point scale. Four hypotheses are tested in multiple regression analysis.,Subjective knowledge has a stronger relation with financial well-being than objective knowledge. Financial behaviour score and income level correlate with financial well-being.,The paper contributes to literature on financial literacy, subjective financial knowledge and financial well-being. In future research, psychological factors and future orientated financial well-being should be included, and their relationship to subjective well-being could be analysed further.,The results highlight the importance of subjective knowledge and sound behaviour for improving financial well-being. Providers of financial services should address these more in the design of their services and communication.,Policymakers developing national strategies for financial education need to address subjective financial knowledge for increasing financial well-being in society.,Knowledge, behaviour and subjective knowledge have not been used simultaneously in the analysis of financial well-being in Europe before.

Predictors of investment intention in Indian stock markets: Extending the theory of planned behaviour

Abstract: The purpose of this paper is to understand investment intention of prospective individual investors in a developing country (i.e. India) by using the “Theory of Planned Behaviour” (TPB) (where perceived behavioural control has been replaced with financial self-efficacy, FSE) and two additional constructs, i.e. financial knowledge and personality traits (i.e. risk-taking propensity and preference for innovation) have been introduced.,The study uses quantitative and cross-sectional approach wherein questionnaire based survey was done to collect responses from prospective individual investors (920 usable responses). AMOS and SPSS have been used to establish the hypothesised relationship between the constructs.,The results of the study suggested that attitude was responsible for partial mediation between the relationship of financial knowledge and investment intention, whereas financial self-efficacy was exerting a dual role on the relationship between personality traits and investment intention. Subjective norms, on the other hand, exerted a weak positive effect on investment intention.,This study is limited to measure the investment intention in financial markets in case of prospective individual investors; it does not incorporate the actual investment behaviour, the study also fails to include demographic factors which play a vital role in investment decision making. Furthermore, the study has only considered objective dimension of financial knowledge.,The findings will be useful for financial service providers who need to enhance the FSE and financial knowledge and design a “behavioural portfolio” according the personality traits of their clients.,The up-liftment of financial confidence among individuals in order to motivate them to participate in financial markets and enjoy “short-cuts” towards financial success.,This study is one of the initial attempts in the context of the Indian Stock Market to introduce FSE as a dual (both mediating and moderating) construct between personality traits and investment intention using TPB, moreover, this study also provides the necessary impetus to analyse the relationship between financial knowledge and investment intention with attitude as the mediating variable.

Adoption of mobile banking services: A comparative analysis of four competing theoretical models

Abstract: The purpose of this paper is to investigate which of four well-established theoretical models (i.e. technology acceptance model, theory of planned behavior, unified theory of acceptance and use of technology, decomposed theory of planned behavior (DTPB)) best explains potential users’ behavioral intentions to adopt mobile banking (MB) services.,Drawing on data from 931 potential users in Greece, the structural equation modeling method was used to examine and compare the four models in goodness-of-fit, explanatory power and statistical significance of path coefficients.,Results indicate that the best model is an extension of the DTPB with perceived risk (PR). Customers’ attitude, determined by three rationally-evaluated MB attributes (usefulness, easiness and compatibility), is the main driver of consumers’ intentions to adopt MB services. Additionally, consumers’ perceptions of availability of knowledge, resources and opportunities necessary for using the service, and the pressure of interpersonal and external social contexts toward the use of MB are the other two, less important, adoption drivers. Finally, PR negatively affects attitude formation and inhibits willingness to use MB services.,Findings can help marketers of financial institutions to select the more parsimonious model to develop appropriate marketing strategies to increase adoption rates of MB services.,This is the first study that compares the performance of four well-known innovation adoption models to explain consumers’ behavior in the MB context.

An integrated model for m-banking adoption in Saudi Arabia

Abstract: Purpose The purpose of this paper is to identify and examine the most important factors that could predict the Saudi customer’s continued intention towards adoption of mobile banking. Design/methodology/approach The proposed conceptual model was based on the technology acceptance model (TAM) and task-technology fit (TTF) model. This is also expanded by considering two additional factors: perceived privacy and perceived security. By using a self-administered questionnaire, the data were collected from a convenience sample of Saudi banking customers from different parts of Saudi Arabia. Findings The main results based on structural equation modelling analyses supported the impact of perceived privacy, perceived security, perceived usefulness and TTF on the customers’ continued intention to use mobile banking. Research limitations/implications The moderation influence of the demographic factors (i.e. age, gender, income level, educational level) was not tested. The data were also collected using a self-report questionnaire; however, it would be more accurate to utilise more statistics from the bank database about the users of m-banking. Originality/value This study represents a worthy attempt to test such novel technology (m-banking) in the KSA where there is a scarcity of literature. A considerable theoretical contribution was also made by integrating the TTF model with the TAM in addition to consider privacy and security in one single model. Moreover, considering both perceived privacy and security in the current model creates an accurate picture about the adoption of m-banking especially as there are a limited number of m-banking studies that have considered privacy and security alongside the TTF model and TAM in the same model.

Online relationship marketing and customer loyalty: a signaling theory perspective

Abstract: Online technologies have, in recent times, revolutionized the process of relationship building between firms and their customers. Nonetheless, there is a limited focus and theorization when it comes to explaining the link between online relationship marketing (ORM) activities and their impact on firm relationship marketing (RM) objectives. Thus, the purpose of this paper is to examine the signaling role of ORM activities in generating online trust and customer loyalty, through the lens of the signaling theory.,Data for the study were gathered through a survey of 429 Ghanaian retail bank customers. Results were analyzed using structural equation modeling techniques.,The paper highlights the signaling role of engagement and interactivity online in influencing banks’ RM outcomes per the signaling theory. It concludes that bank’s online relationship activities, over and above the online tools utilized, need to communicate appropriate and useful signals in order to positively influence online trust and loyalty among customers.,The study, in its uniqueness, utilizes the signaling theory to explain the role and impact of online RM activities in the banking industry.

M-payment adoption for bottom of pyramid segment: an empirical investigation

Abstract: The purpose of this paper is to examine m-payment adoption for the bottom of pyramid (BoP) segment in a developing country context.,A questionnaire was distributed to 247 BoP customers in Bangladesh. Data were analysed by employing confirmatory factor analysis and Structural Equations Modelling.,The results show that performance expectancy (PE), effort expectancy (EE), facilitating conditions (FC), habit and social influence (SI) significantly influence the BoP segment’s behavioural intention (BI). It is revealed that PE, lifestyle compatibility (LC), SI and habit have relatively stronger effects being higher predictor of intentions. Again EE and FC have relatively lower effects on m-payment BI. On the other hand, hedonic motivation (HM) and price value (PV) are two non-significant predictors of m-payment adoption.,The study recommends that financial institutions, such as banks and other non-banking service firms, need to know the antecedents affecting BI suggested by the unified theory of acceptance and use of technology (UTAUT2) theory along with “LC”. This will increase m-payment adoption for the BoP segment in developing countries.,To the extent of researcher’s knowledge, none of the previous studies using the UTAUT2 theory to examine m-payment adoption for BoP segment. This study contributes empirical data to the predominantly theoretical literature by offering a deeper understanding of the inclusion of LC, which is one of the significant antecedents in explaining BoP segment’s m-payment adoption.

Factors Influencing Consumer Loyalty: Evidence from the Ghanaian Retail Banking Industry

Abstract: The increasing number of banks in the Ghanaian banking industry has brought about intense competition in the industry. The purpose of this paper is, therefore, to examine the factors that influence retail banking customers’ loyalty intentions.,In order to validate the proposed research model, the study adopts a survey design. Data were collected from 565 customers of the top performing banks in terms of customer deposits. Data analysis employed the partial least squares structural equation modeling (PLS–SEM) using SmartPLS version 3.,Results from the PLS–SEM analysis indicated that satisfaction, service quality and trust had significant effect on loyalty, with satisfaction having the most significant effect. Interestingly corporate image was found to have a significant effect on both satisfaction and trust but not on loyalty. In all, the proposed model accounted for 63.3 percent of the variation in loyalty.,The current study samples customers from only the top performing banks in Ghana. The use of cross-sectional data makes it impossible to study how customers’ perceptions change over time. Results from this study could, however, help managers of banks in designing strategies aimed at improving customer loyalty in order to consolidate their market share.,This paper adds to existing works that focus on loyalty in the retail banking sector, especially from the context of a developing economy. The study draws attention to the interrelationship among service quality, perceived value, satisfaction, image, trust and loyalty.

The moderating impact of gender on the acceptance of peer-to-peer mobile payment systems

Abstract: The purpose of this paper is to determine the significant antecedents of peer-to-peer (P2P) m-payment acceptance and explore the moderating effects of gender on the influence of these predictors with regards to intention of using the system.,The research was conducted on a sample comprised of 701 Spanish smartphone users. A multi-group structural equation modeling analysis was used to test the moderating effect of gender with a particular focus on the relationships between the latent variables of the research model.,The study identified significant differences between the two observed groups – the results show that men are more likely to use mobile payments than women and are therefore less influenced by the potential risks involved. In addition, men are more easily influenced by their social environment, whereas women are more influenced by their personal innovativeness.,The study proposes a three-level model, based on an extended TAM model. It is a pioneering study, exploring the effects of gender on P2P m-payment acceptance. Due to its novel value and the potential involved, the results of the study may be of great importance for m-payment providers, particularly in marketing strategy planning and customer segmentation.

Personal factors as antecedents of perceived financial well-being: evidence from Brazil

Abstract: The purpose of this paper is to explore the impact of consumer spending self-control (CSSC), personal saving orientation (PSO), materialism, financial knowledge (FK) and time perspective (TP) on Brazilian consumers’ perceived financial well-being.,A conceptual framework is provided to support the research hypotheses. A survey with 1,027 respondents allowed the research hypotheses to be tested by means of regression-based models.,The findings show that the two dimensions of financial well-being – current money management stress and future financial security – are predicted by CSSC, materialism and TP; PSO also predicts future financial security. TP moderates the effect of materialism on current money management stress, and CSSC mediates this relationship.,The role of FK in predicting financial well-being is weakened in the presence of the psychological variables investigated, which has important implications for financial education efforts. The use of survey data alone limits the research findings, as the advocated causal relationships are based solely on theory; gathering experimental data to further support the findings is a possibility for future research.,Banks and other financial institutions can create tools to stimulate control of their customers’ day-to-day spending and try to show assertive projections to evidence the impact of their present actions on their financial future, enhancing personal awareness and promoting overall well-being.,The authors advance knowledge on the antecedents of financial well-being and offer two explanations involving moderating and mediating relationships that enhance the understanding of the individual differences that shape current money management stress.

Mobile payments in India: the privacy factor

Abstract: The purpose of this paper is to understand Indian consumers’ intention to use mobile payments by examining their adoption readiness (AR) in the larger context of their technology readiness (TR) and their privacy concerns (PCs),A four-city, three language, paper and pencil survey yielded a sample of 600 respondents from India Data were analyzed using structural equations modeling,This study finds that AR positively mediates the relationship between TR and intention to adopt (IA) mobile payments More importantly, PCs negatively moderate the relationship between AR and IA,Results will vary depending on country and other variables outside the scope of this study such as perceived risk, trust, etc The sample was large but mainly comprised males, between 18 and 35 years of age,The cash shortage due to a recent demonetization move in India had spurred mobile payment adoption but usage and retention remained low Many other banking self-service technologies had not been successful and digitization was critical for easing payments and potentially paving the way for mobile banking However, using mobile phones for financial transactions raises PCs that attenuate the positive impact of AR Also, understanding overall attitudes with TR is important in a rapidly digitizing country with relatively novice users,Adoption of mobile payment technology can help address social and economic challenges in India, such as financial inclusion, corruption and tax evasion Given the increasing awareness of privacy issues in India, mobile payment adoption, which already faces acquisition and retention challenges, will likely to face greater resistance in the future,The findings add to the literature on emerging markets and marketing of technology products by identifying the critical role of privacy in the adoption of financial technology services Moreover, the authors demonstrate that given the rapid introduction of technology in India, consumers’ overarching TR has to be considered along with AR for mobile payments Thus, the authors offer a tripartite, customer–technology–transaction view of the mobile payment adoption process in India

Enhancing performance and commitment through leadership and empowerment: An emerging economy perspective

Abstract: The purpose of this paper is to explore the impact of transformational leadership and employee empowerment on employee performance and organizational commitment through the mediational role of behavioral integrity (BI).,Data were collected through a self-administered questionnaire based on measurement of variables adopted from earlier studies. A total of 532 usable responses were collected through officer grade and executive level employees of selected banks from the Multan district, Pakistan. Confirmatory factor analysis was run using AMOS 23.0 whereas PROCESS macro in SPSS 23.0 was used for path analysis.,The study results revealed that transformational leadership and employee empowerment positively affect employee performance and organizational commitment through the mediational effect of BI.,The role of BI in enhancing employees’ performance and organizational commitment has been overlooked in the extant literature. Especially, in the emerging economies, where there is growing employer–employee trust deficit, this investigation brings in useful contribution.

Examining Consumers’ Usage Intention of Contactless Payment Systems

Abstract: The purpose of this paper is to develop and test a conceptual model that combines the modified Unified Theory of Acceptance and Use of Technology (UTAUT2) with a consumer brand engagement (CBE) model to predict consumers’ usage intentions toward contactless payment systems in a developed country.,The authors cooperated with a contactless payment service provider in Finland and reached out to 22,000 customers, resulting in 1,165 usable responses. The collected data were analyzed using structural equation modeling.,The study shows that the UTAUT2 and the CBE model together explain approximately 70 percent of the variance in usage intention. Of the predictors, habit and consumers’ overall satisfaction have the strongest influence on usage intentions. The model also confirms the positive relationship between intention and use.,Understanding the reasons for both the intention to use and the continued use of contactless payments is important for merchants, banks and other service providers. This study shows which technology adoption factors drive both the intention and the use of contactless payments. The finding that intention is mainly driven by habit and overall satisfaction and not by hedonic reasons indicates that such behaviors are difficult to change.,This study is among the first to examine contactless payment usage in a developed market, where over half of all point-of-sale transactions are executed using contactless payment cards and/or cell phones.

An investigation of financial literacy, money ethics and time preferences among college students: A structural equation model

Abstract: Financial literacy has a strong influence on financial well-being, and it is a concept especially important for college students who start to develop their financial habits. The purpose of this paper is to examine the relationship between financial literacy, money attitudes and time preferences among Turkish university students.,Data were collected from 1,443 university students from 14 campuses in Turkey. Structural equation modeling methodology is employed to test the hypotheses.,The results suggest that students with higher financial knowledge scores have more favorable financial attitudes and exhibit more desirable financial behaviors. It is also demonstrated that financial attitude is positively related to financial behavior. Furthermore, a significant and negative relationship between the affective dimension of the money ethic construct and financial behavior is found. In contrast, the relationship between the behavioral dimension of money ethic and financial behavior is positive. It is further demonstrated that a present orientation leads to more negative financial attitudes.,This study will reveal the interrelationships among dimensions of financial literacy, money ethics and time preferences in an emerging economy with a relatively little experience with formal financial systems and unstable macroeconomic conditions.

Customer centricity in mobile banking : a customer experience perspective

Abstract: Purpose The purpose of this paper is to increase understanding about how to improve customer value and to make mobile banking services a profitable business for banks and other financial actors. The study explores the user experiences and related value of a new mobile banking service. Design/methodology/approach The study is implemented as a case study that is phenomenological in nature and linked to an interpretive consumer study. Empirical data were collected through 14 semi-structured theme interviews and a diary method. The data were analysed by using a content analysis method. Findings The findings illustrate the importance of customer centricity in the mobile banking context by identifying customer experience and related value in a new mobile banking service. The study extends current understanding of customer experience as a complex and multifaceted phenomenon by including value related to process, the use situation and the outcome, and it identifies temporality as influencing and connecting all these aspects. The study identifies several aspects that help us to understand what creates value for the customer while using mobile banking services. Research limitations/implications As one limitation, this study was conducted in a developed country and the findings could be different in an emerging market context. Another limitation relates to the data, as the interviewees’ age range is quite limited, ranging between 20 and 40 years. However, they represent the consumers who normally use mobile services well and thus provide reliable data about their use experiences. Practical implications As the banking industry is currently experiencing rapid and widespread changes and customers become more demanding, it is crucial for banks and other mobile service providers to understand the everyday lives of their customers and to integrate their future services into the customers’ value creation processes as smoothly and inseparably as possible. The findings of this study will help banks and other financial institutions to develop their strategies and operations in regard to customer-oriented thinking, which will further help them to create long-term, profitable customer relationships and improve future viability. Originality/value The study contributes to bank marketing research and extends previous research on customer-centred service marketing by providing a framework that identifies the value related to customer experience in a new mobile banking service. It explores the experiences of actual mobile banking service customers’ and the related value, and thus provides original implications for both theory and practice.

Drivers of continuance intention with mobile banking apps

Abstract: The purpose of this paper is to examine the drivers of continuance intention with mobile banking apps, in a Thai context. The secondary objective is to examine if there are underlying segments that differ meaningfully in this regard.,A structural equation model based on the European Customer Satisfaction Index is estimated. The data were obtained by conducting an online survey of mobile banking users in Thailand (n=399).,The top 3 factors directly affecting continuance intention toward mobile banking are satisfaction, trust and expectancy confirmation. Image and perceived risk also have an impact, although studies have reported that the latter is less impactful than the prior. One latent segment is more influenced by observable performance characteristics like confirmation and perceived quality, the other more by credence factors like trust and image.,The study confirms the important role of satisfaction and expectancy confirmation in driving continuance. Somewhat unexpected is the high relative prominence of trust as a driver, at least in the Thai context. This is a “soft” variable managers should not dismiss. The identification of segments also points to potentially different treatment and actionable advice for managers.,This paper adds to the scant body of empirical work on continuance intention with mobile banking. In light of the large investments in mobile banking capabilities being made, this is an under-researched area. This paper to the authors’ knowledge is the first to study consumer heterogeneity in this context.

Women’s financial planning for retirement: Systematic literature review and future research agenda

Abstract: The purpose of this paper is to examine the status of the research on women’s financial planning for retirement. This paper provides a brief review of the work carried out so far along with a conceptual framework of factors influencing women’s retirement financial planning. In addition, it lists significant gaps and recommends avenues for future research.,The review is based on 151 articles appearing in various peer-reviewed journals published during 1980–2017. The study establishes its prominence by studying the publication activities based on the year of publication and region, citation analysis, research designs, data analysis techniques and findings from the selected articles.,Most of the literature on women’s financial planning for retirement indicates a lack of financial management amongst women and their susceptibility to poverty in postretirement years. The majority of the research works in this field have taken place in developed economies. Empirical research with regression-based models for analysis is the most popular research design. This review also highlights the significant determinants of women’s retirement financial planning as identified through literature. These include socio-demographic factors, psychological constructs, financial literacy, economic and circumstantial forces.,This paper covers the research works done in this area in the past 38 years. To the best of authors’ knowledge, this is the first attempt to provide a systematic and comprehensive compilation of the knowledge in this subject. It further synthesizes the findings of various studies on factors influencing women’s retirement financial planning and gives recommendations for future studies.

Perceived price and service quality as mediators between price fairness and perceived value in business banking relationships: A micro-enterprise perspective

Abstract: Purpose The purpose of this paper is to test perceived price and service quality as mediators between price fairness and perceived value in service encounters between micro-enterprises and their banks. Design/methodology/approach The study is based on a self-administered and internet-based questionnaire conducted in the banking industry. The sample consists of 381 micro-enterprises in South Africa that employ one or two staff members. Findings The findings of this paper provide evidence for both theory and practice that perceived price and service quality influence the relationship between business banking customers’ perception of price fairness and the value of the service offered. Research limitations/implications The measurement and structural properties reported are satisfactory. This paper confirms the hypothesized relationships in the tested research model, and rejects a tested rival model. Limitations are reported, and suggestions for further research are provided. Practical implications This paper offers banking executives guidance in managing the pricing structure of their services, and highlights the value of offering greater transparency with regards to service charges and interest rates. Originality/value This paper contributes to insights into the mediating effects of perceived price and service quality between price fairness and perceived value in business relationships between micro-enterprises and their banks.

An analysis of factors affecting mobile banking adoption

Abstract: The purpose of this paper is to develop a conceptual model that explains the most important factors affecting mobile banking adoption for Lebanese banking customers.,Based on the data collected through a survey, structural equations modeling and path analysis were utilized to test the hypotheses. In total, 320 questionnaires were collected from Lebanese customers.,The results show that digital literacy, resistance to change, perceived risk, perceived ease of use, and perceived usefulness were found to be the main variables affecting users’ attitudes toward adoption of mobile banking, whereas awareness and compatibility showed no significant impact on adoption. In addition, both subjective norms and personal innovativeness influenced users’ adoption moderated the relationships between usefulness attitude and ease of use attitude.,The study fills a gap in the literature by exploring e-readiness influence on adoption through testing the variable “digital literacy” and by examining the effect of the frequency of branch visits on the intention to adopt mobile banking. Social and individual variables, such as social influence and personal innovativeness, which were rarely examined in past studies, are employed in this research. All of our respondents were actual bank account holders.

What drives experiential loyalty towards the banks? The case of Islamic banks in Indonesia

Abstract: The purpose of this paper is to explore the structural relationship between experiential loyalty and its seven drivers – interaction quality, physical environment quality, outcome quality, affective quality, experiential quality, experiential trust and experiential satisfaction in the context of Islamic banks.,The data used in this study were based on a convenience sample of 474 respondents from Jakarta, Bogor and Depok in Indonesia.,Interaction quality, physical environment quality and outcome quality positively influence experiential quality, which in turn, leads to experiential trust. Also, experiential trust has a positive influence on experiential satisfaction. Both experiential trust and experiential satisfaction are determinants of experiential loyalty.,The results will assist Islamic bank management in developing and implementing market-orientated service strategies to increase interaction quality, physical environment quality, outcome quality, affective quality experiential quality, experiential trust and experiential satisfaction in order to increase experiential loyalty.,This paper provides data that result in a better understanding of the relationships among interaction quality, physical environment quality, outcome quality, affective quality, experiential quality, experiential trust, experiential satisfaction and experiential loyalty in the context of Islamic banks.

Understanding the impact of financial incentives on NFC mobile payment adoption: An experimental analysis

Abstract: The purpose of this paper is to investigate the effects of financial incentives on consumers’ intention to adopt near field communication (NFC) mobile payment.,An online experiment was conducted crossing two levels of incentive types (cash back and discount), two levels of incentive amounts (5 and 10 percent), and two levels of incentive promotion periods (one and three months). A total of eight treatment conditions plus one control group comprised the 2×2×2 factorial design. A sample of 463 subjects with no prior experience with NFC mobile payment was recruited using a Qualtrics panel.,This study found that: the availability of financial incentives had a positive effect on intention to adopt NFC mobile payment; financial incentives indirectly affected intention through perceived risk; and while different types, amounts or promotion periods did not seem to matter for those in the low perceived risk group, the main effect of promotion period and the interaction effect between amount and promotion period were significant for those in the high perceived risk group.,The study sample was limited from 18 to 35 age group, which could have affected the varied effect of the different attributes of incentives that were examined.,This study is the first to give some empirical evidence about the impact of financial incentives on NFC mobile payment adoption. The results provide insight to providers as well as retailers offering the incentive payment option.

Credit card literacy and financial well-being of college students: A moderated mediation model of self-efficacy and credit card number

Abstract: By testing a moderated mediation model, the purpose of this paper is to examine the mediating role of credit card self-efficacy in the relationship between credit card literacy and financial well-being. The authors further examine if credit card number moderates this effect.,Data for the study were collected from 427 college students. The PROCESS macros in IBM SPSS Statistics 23 was used to assess the hypothesized relationships.,Credit card literacy positively influences financial well-being through self-efficacy. However, this effect is stronger when college students own fewer credit cards.,Banks and credit card issuers, policymakers and colleges and universities should place a greater emphasis on credit card literacy programs that enhance students’ general understanding of credit card terms and conditions and confidence in their ability to effectively use and manage their credit cards.,To our knowledge, this is the first study to examine the relationship between credit card literacy, self-efficacy and financial well-being.

The antecedents and consequences of financial literacy: a meta-analysis

Abstract: The purpose of this paper is to determine the antecedents and consequences of financial literacy by using meta-analytic techniques.,The authors conducted a meta-analysis of 44 valid studies, which generated a total of 690 observations (effect sizes).,The findings showed that the factors influencing financial literacy were as follows: educational level, financial attitude, financial knowledge, financial behaviour, gender, household income and investments. The consequences of financial literacy were the behaviour of incurring avoidable credit and checking fees, credit score, and the willingness to take investment risks. The authors also find some methodological, cultural, economic and theoretical moderations effects between financial literacy and antecedent/consequent constructs.,This meta-analysis reviewed the relationships found worldwide in the literature on financial literacy. The authors also identified new avenues for future research. Some specific limitations, such as the non-use of qualitative studies, are registered.,This research tested the impact of the antecedents, consequences and moderators of financial literacy via a meta-analytical review. This meta-analysis contributes to the marketing and financial literature by offering a set of empirical generalisations about the direct and moderation effects investigated.