Philip Gerrard

The diffusion of Internet banking among Singapore consumers

Internet banking is a form of self‐service technology, costing millions of dollars, which leading retail banks have made available in the recent past. An understanding of why users are more accepting of Internet banking services should help bank managers implement this self‐service technology. This study identifies eight characteristics which influenced the rate of adoption. Two of these characteristics, namely accessibility and confidentiality, are new to the literature. The results show that adopters of Internet banking perceive the service to be more convenient, less complex, more compatible to them and more suited to those who are PC proficient. Adopters were also found to be more financially innovative. The perceptions that adopters had about social desirability, confidentiality, accessibility and economic benefits were viewed no differently when adopters were compared with non‐adopters.

Islamic banking: a study in Singapore

Establishes that, in Singapore, which has a minority of Muslims in its population, both Muslims and non‐Muslims are generally unaware of the culture of Islamic banking. Also the two separate groups have different attitudes towards the Islamic banking movement, with the degree of difference depending on the nature of the respective matter put to them. For example, when asked what they would do if an Islamic bank did not make sufficient profits to make a distribution in any one year, 62.1 per cent of Muslims said they would keep their deposits within the Islamic banking movement, while 66.5 per cent of non‐Muslims said they would withdraw their deposits. In relation to bank selection criteria, there was general accord as between Muslims and non‐Muslims on the rating of the various criteria. Five significant differences were noted, the most relating to “being paid higher interest on savings”. The desire to be paid higher interest was far stronger with non‐Muslims.

Why consumers are not using internet banking: a qualitative study

Purpose – This paper illustrates why consumers are resistant to using internet banking.Design/methodology/approach – A survey was used to acquire data from 127 consumers who were not internet bank users.Findings – Using a content analysis procedure, eight factors were identified which explain why consumers are not using internet banking. In order of frequency, the factors are: perceptions about risk; the need; lacking knowledge; inertia; inaccessibility; human touch; pricing and IT fatigue.Research limitations/implications – A list of those consumers who were not internet banking users could not be sourced, meaning that a random sample could not be carried out. The factors which emerged, however, appear to provide a comprehensive understanding of why certain consumers are not internet banking users. The factors provide a useful basis for researchers to conduct studies to better understand what influences a consumer decision not to use the internet as a means of sourcing banking services.Practical implicat...

Consumer switching behavior in the Asian banking market

This study seeks to identify the types of incidents which cause consumers to switch between banks, the weighting of each incident on the switching decision, whether single or multiple incidents influence switching decisions, and the extent to which switchers explain the problems they have faced prior to exiting. The key findings show that bank switching is strongly influenced by three types of incident: service failures, pricing and inconvenience, with pricing being more influential. Seventy‐five percent of bank switching is caused by more than one incident, and some 7 percent of respondents said they had spoken to bank staff in the period before exiting. The implications of these findings are presented.

Singapore’s undergraduates: how they choose which bank to patronise

Undergraduates constitute an attractive segment of customers for retail banks in many countries of the world, including Singapore. This study, using a sample of Singapore’s undergraduates, sets out to establish a ranking of the various dimensions which influence their bank selection decision and seeks to determine how homogeneous undergraduates are in relation to their selection decision. Seven bank selection dimensions were identified, the most important being undergraduates should “feel secure”, while the least important dimension was “third party influences”. Responses between those “attending engineering courses and non‐engineering courses” were compared, as were those between “males and females” and “single and multiple bank users”. More significant differences were found when engineering undergraduates were compared with non‐engineering undergraduates. Irrespective of these differences, the sequencing of the seven selection dimensions was invariably in the same order.

An analysis of main and subsidiary credit card holding and spending

Purpose – This study seeks to examine why most multiple credit cardholders have a “main” card (i.e. a card used more often than others) and “subsidiary” cards (i.e. cards used less often or only in an emergency) and the spending patterns associated with main and subsidiary cards.Design/methodology/approach – The study is qualitative in nature, using a survey which contained open‐ended questions to acquire data. Responses were subject to content analysis to categorise the reasons given for having a main and subsidiary card.Findings – Results show that some 85 per cent of the 141 respondents indicated that they had a main card and the most frequently quoted reason for having such a card was the superior discounts and promotions which were offered by the card issuer. Not surprisingly, main cards were used for the broadest range of transactions, while subsidiary cards were used for a more restricted range of transactions, a majority saying that their subsidiary cards were held for “stand‐by purposes”.Research...

The service quality of e-banks: an exploratory study

This study develops a model for measuring the service quality of e-banks. Our models seven factors are very consistent with the four core factors of the generic e-SERVQUAL model, but less consistent with its three non-core factors. Appearances and staff qualities, being new factors identified in this study, should be useful to e-bank management because they are factors uniquely relevant for e-bank customers. The seven factors emerged from a content analysis of comments made by consumers about their e-banking experiences.

An entrepreneurial logic for the new economy

Managers and entrepreneurs are increasingly being challenged to respond to a world where it is harder to effectively make and implement their decisions. Over half the decisions managers make are never implemented. We have observed entrepreneurs and managers in a wide range of situations in various countries, who illustrate a different set of assumptions for making decisions. They illustrate an entrepreneurial logic, a process of creatively defining and taking action to make sense out of situations which require new frameworks, assumptions and understandings. They assume that many challenges are not predictable and controllable. Certain control‐oriented attitudes and behaviors inhibit people from thinking this way, such as attempts to make decisions without fully understanding the right question, and overly relying on statistics. Certain reframing attitudes and behaviors – diversity in thinking, asking the right questions, and reframing and adapting quickly – illustrate ways to make sense of the paradoxes and uncertainties in the new economy.

Values and Skills of Female Entrepreneurs in Vietnam: an Exploratory Study

Although there is an extensive and growing literature about female entrepreneurship in developed countries, far less is known about the same topic in transitional economies, such as Vietnam. Female entrepreneurship is important in Vietnam because of its impact on the gross national product, in addition to offering employment (OECD, 1993). Since females confront even more obstacles in less developed countries (United Nations, 2001), the United Nations and other international agencies have called for special training programmes. In Vietnam, for example, the Vietnam Women’s Union, has taken on this role. Some Western studies (Crichton, 1996; Buttner and Moore, 1997) and Singapore studies (Teo, 1996; Maysami and Goby, 1999) have identified the various push and pull factors influencing females in their decision to become entrepreneurs. Far less, however, is known about the values and management styles of female entrepreneurs, in both developed and less developed countries. The Western studies of Chaganti (1986), Neider (1987), Brush (1992, 1997), Holmquist and Sundin (1988) and Fagenson and Marcus (1991) provide notable contributions to an underresearched theme. Survey instruments used in Western settings may be culturally bound and, when used in Eastern countries, they may not truly capture what they aim to. A good example was the application of the well-known cultural values instrument of Hofstede (1980b) in the Asian culture. After a number of trial applications, Bond and his co-researchers developed an alternative instrument which defined four fundamental Chinese values: integration, Confucian dynamism, human heartedness, and moral discipline (The Chinese Culture Connection, 1987). The four Chinese values which emerged from this research have been successfully applied in certain Asian countries and have provided useful information about Singapore and the other ‘Eastern Tigers’. Given that Confucian work dynamism has been linked with the economic growth of a number of Asian countries, we chose Bond and Hofstede’s (1989) Confucian values framework in understanding the role of female entrepreneurs in Vietnam. An investigation into the strength of these values in Vietnam alone, may not allow meaningful conclusions to be drawn regarding the economic development of that country.

The multiple banking behaviour of Singaporeans

This study, using a sample of adult Singaporeans, established that 76.8 per cent of its respondents engaged in multiple banking. The Post Office Savings Bank was main bank to 61.3 per cent of the respondents, while the local full licence banks were main bank to 35.1 per cent of the respondents. These same banks held 27.6 per cent and 66.1 per cent respectively of subsidiary bank relationships. Multiple bank customers were typified as being people who were tertiary educated, were Chinese and were paid an income of