Heikki Karjaluoto

Consumer acceptance of online banking: an extension of the technology acceptance model

Advances in electronic banking technology have created novel ways of handling daily banking affairs, especially via the online banking channel. The acceptance of online banking services has been rapid in many parts of the world, and in the leading e‐banking countries the number of e‐banking contracts has exceeded 50 percent. Investigates online banking acceptance in the light of the traditional technology acceptance model (TAM), which is leveraged into the online environment. On the basis of a focus group interview with banking professionals, TAM literature and e‐banking studies, we develop a model indicating online‐banking acceptance among private banking customers in Finland. The model was tested with a survey sample (n=268). The findings of the study indicate that perceived usefulness and information on online banking on the Web site were the main factors influencing online‐banking acceptance.

Factors underlying attitude formation towards online banking in Finland

The study explored the effect of different factors affecting attitude formation towards Internet banking (online banking) in Finland. The purpose of this paper is to determine those factors that influence the formation of attitude towards Internet banking on the one hand, and their relation to the use of online banking services, on the other. To attain these, a large survey (1,167 responses) was carried out during the summer of 2000 in Finland. Attitude formation was studied by the use of a structural equation model. The results are expected to provide both theoretical and practical contributions in the area of electronic retail banking and understanding of consumer behaviour in the turbulent financial services industry.

Internet banking adoption among mature customers: early majority or laggards?

Finland is a world leader in electronic banking, and over 39.8 percent of all retail banking transactions were made over the Internet in August 2000. Using the data of a large survey, we analyzed mature customers’ Internet banking behavior. Internet banking was the third popular mode of payment among mature customers. Household income and education were found to have a significant effect on the adoption of the Internet as a banking channel, so that over 30 percent of wealthy and well‐educated mature males make e‐banking their primary mode of making payments. Perceived difficulty in using computers combined with the lack of personal service in e‐banking were found to be the main barriers of Internet banking adoption among mature customers. Internet banking was also found to be more unsecured among mature customers than bank customers in general.

An Empirical Study of the Drivers of Consumer Acceptance of Mobile Advertising

ABSTRACT The ubiquity of text messaging (SMS) based mobile communication creates new opportunities for marketers. However, the factors that induce consumers to accept mobile devices as an advertising medium are not yet fully understood. This paper examines the drivers of consumer acceptance of SMS-based mobile advertising. A conceptual model and hypotheses are tested with a sample of 4,062 Finnish mobile phone users. Structural equation modeling is used to test five drivers of mobile advertising acceptance: (1) utility, (2) context, (3) control, (4) sacrifice, and (5) trust. The results show that utility and context are the strongest positive drivers, while sacrifice is negatively related to the acceptance of mobile advertising. Despite the concerns about privacy, our results indicate that control and trust are not that important to consumers in mobile advertising.

A conceptual model of trust in the online environment

Purpose – The purpose of this paper is to show that trust is an important factor for successful online transactions. Although the importance of trust has been examined from various perspectives, the studies on online trust have been fragmented in nature and are still in their infancy.Design/methodology/approach – This paper explores factors that affect the formation of end‐user trust in online environments. The study proposes a conceptual framework, which categorises the affecting elements under internal and external factors affecting end‐user trust formation.Findings – The results suggest that the actual outcome of trust‐enhancing methods in online environments should be the development of long‐term trusted customer relationships.Research limitations/implications – More empirical research efforts need to be directed to study trust in online environments. This study is conceptual and qualitative in nature, which is its main limitation.Practical implications – Companies operating in the online environment ...

Mobile banking adoption: A literature review

Abstract Electronic commerce (e-commerce) continues to have a profound impact on the global business environment, but technologies and applications also have begun to focus more on mobile computing, the wireless Web, and mobile commerce. Against this backdrop, mobile banking (m-banking) has emerged as an important distribution channel, with considerable research devoted to its adoption. However, this research stream has lacked a clear roadmap or agenda. Therefore, the present article analyzes and synthesizes existing studies of m-banking adoption and maps the major theories that researchers have used to predict consumer intentions to adopt it. The findings indicate that the m-banking adoption literature is fragmented, though it commonly relies on the technology acceptance model and its modifications, revealing that compatibility (with lifestyle and device), perceived usefulness, and attitude are the most significant drivers of intentions to adopt m-banking services in developed and developing countries. Moreover, the extant literature appears limited by its narrow focus on SMS banking in developing countries; virtually no studies address the use of m-banking applications via smartphones or tablets or consider the consequences of such usage. This study makes several recommendations for continued research in the area of mobile banking.

An adoption model for mobile banking in Ghana

The impact of social and cultural factors on the adoption of technology still requires much research. To investigate it more fully, we examine the reasons for the adoption and non-adoption of mobile banking in Ghana. Through a survey of 271 people in Ghana, it has been found that social and cultural factors in the form of perceived credibility, facilitating conditions, perceived elitisation and demographic factors do play a significant role in adoption decisions. It has been found that elitisation of technology and services can be a positive influence for adopters whilst being a negative influence for non-adopters. In addition, perceived credibility and facilitating conditions also influence attitudes towards the technology. When these factors are added to a range of demographic factors, the impact of the social and cultural features of the context of studies can be seen as significant.

Antecedents to Permission Based Mobile Marketing: An Initial Examination

Purpose: A conceptual model is developed to examine the influence of four antecedent factors (personal trust, institutional trust, perceived control and experience) on consumers’ willingness to participate in permission-based mobile marketing. We empirically test our model across three European countries and gender.Methodology/Approach: Data is collected from surveys of consumers in Finland, Germany and the UK. The Partial Least Squares (PLS) approach is utilised to test the model fit.Findings: The main factor affecting the consumers’ decision to participate in mobile marketing is institutional trust, which is a significant factor in all three countries and across gender. The influence of other antecedent factors are less pronounced. On the whole, we find that the more experienced consumers become with mobile marketing, the less influence of perceived control will have on permission. There are notable variations across gender, with perceived control being an important determinant of permission for men, while it is not so for women.Research Implications/Limitations: The results indicate the relative importance of four antecedents in the likelihood of consumers giving their permission to companies to send mobile marketing messages.Practical Implications: As institutional trust is the most important determinant of permission based mobile marketing, mobile marketers should focus on building a strong and positive media presence and image, and thereby influence consumers’ likelihood of giving permission to mobile based marketing.Originality/Value: The first international empirical investigation of the different antecedents of permission based mobile marketing.

Selection criteria for a mode of bill payment: empirical investigation among Finnish bank customers

Banks and other financial institutions have nowadays a keen interest in their customers’ bank and mode of bill payment selection criteria, and in factors underlying this decision making. Recent developments in the financial services industry, for example increasing competition, co‐operation, and convergence mean that new strategies to attract and maintain customers are becoming of key importance for managers. Attempting to reveal the preferences of today’s customers, a survey type of study was undertaken to increase the understanding of consumers’ selection criteria for a mode of payment in Finland. Altogether 1,167 usable responses were used for the data analysis. The results of the study suggest that primary factors affecting the choice of a mode of bill payment are speed, security and trustworthiness, easy‐to‐use, and price of the payment. Some consumers appreciated short distance to a branch. Conversely, examples from friends and relatives, social contacts with the banking personnel, and bank’s name h...

Mobile customer relationship management: underlying issues and challenges

Purpose – The purpose of this study is twofold. First, in order to guarantee a coherent discussion about mobile customer relationship management (mCRM), this paper presents a conceptualization of mCRM delineating its unique characteristics. Second, the authors develop the empirically grounded framework of the underlying issues in the initiation of mCRM.Design/methodology/approach – A single‐case‐study method is used for the empirical component of the study in order to gain a holistic view of the case and access to latent and confidential information of the company under scrutiny. Semi‐structured interviews of the key informants of the company form the main data source through which the issues are identified and the proposed framework is built.Findings – The proposed framework identifies issues that can be divided into three categories (exogenous, endogenous and mCRM‐specific) the company has to take into account when moving towards mCRM.Research limitations/implications – Since, this is a single‐case stud...