Marketing Intelligence & Planning

An empirical examination of customers’ adoption of m-banking in India

Madhurima Deb Ewuuk Lomo-David
Article information:
To cite this document:
Madhurima Deb Ewuuk Lomo-David , (2014),"An empirical examination of customers’ adoption of m-
banking in India", Marketing Intelligence & Planning, Vol. 32 Iss 4 pp. 475 - 494
Permanent link to this document:
http://dx.doi.org/10.1108/MIP-07-2013-0119
Downloaded on: 03 March 2015, At: 13:39 (PT)
References: this document contains references to 65 other documents.
To copy this document: permissions@emeraldinsight.com
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

The fulltext of this document has been downloaded 250 times since 2014*
Users who downloaded this article also downloaded:
Ulun Akturan, Nuray Tezcan, (2012),"Mobile banking adoption of the youth market: Perceptions
and intentions", Marketing Intelligence & Planning, Vol. 30 Iss 4 pp. 444-459 http://
dx.doi.org/10.1108/02634501211231928
Lisa Wessels, Judy Drennan, (2010),"An investigation of consumer acceptance of M-banking", International
Journal of Bank Marketing, Vol. 28 Iss 7 pp. 547-568 http://dx.doi.org/10.1108/02652321011085194
Rakhi Thakur, (2014),"What keeps mobile banking customers loyal?", International Journal of Bank
Marketing, Vol. 32 Iss 7 pp. 628-646 http://dx.doi.org/10.1108/IJBM-07-2013-0062

Access to this document was granted through an Emerald subscription provided by 331053 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for
Authors service information about how to choose which publication to write for and submission guidelines
are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as
providing an extensive range of online products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee
on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.

*Related content and download information correct at time of download.

 The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-4503.htm

Adoption of
An empirical examination of m-banking
customers’ adoption of m-banking in India
in India
Madhurima Deb 475
Department of Marketing, Indian Institute of Management,
Received 24 July 2013
Kashipur, India, and Revised 18 October 2013
Ewuuk Lomo-David 22 December 2013
Accepted 7 January 2014
School of Business and Economics, North Carolina A&T State University,
Greensboro, North Carolina, USA
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

Abstract
Purpose – The purpose of this paper is to identify factors impacting the adoption of m-banking.
Design/methodology/approach – To attain the above objective a conceptual model was developed
based on Technology Acceptance Model (TAM) and diffusion of innovation (DOI). Primary data were
collected using questionnaire from 600 customers and the data were analyzed using SPSS and AMOS.
Findings – The study found empirical evidence for positive relationship between perceived usefulness,
perceived ease of use and Social Influence to positive attitude towards m-banking. However, no support
was found for FC, benevolence and privacy and security to attitude towards m-banking. The study found
support for the relationship between attitude towards m-banking and intention to adopt m-banking.
Practical implications – The study has practical implications for managers. The study suggests
that m-banking adoption can be increased by improving the customer’s perception of benevolence and
privacy and security.
Originality/value – This is one of the few empirical studies which have investigated the adoption
of m-banking in India. Earlier build theories like TAM and DOI were adapted for their generalizability
to test the adoption of m-banking technology, which resulted in the development of an advanced
conceptual model. The present model adds to the existing literature of technology adoption.
The findings would help the managers to work on factors that are not perceived adequate by
customers. Such improvements would facilitate the adoption of new technology.
Keywords Consumer behaviour, New product development, New technology, Marketing channels
Paper type Research paper

1. Introduction
According to the Cellular Operators Association of India Indian Global System of
Mobile Communication (GSM) telecom operators added 17.45 million new subscribers
in November 2010, taking the all-India GSM cellular subscriber base to 526.18 million.
According to a report published by Gartner Incorporation, the total mobile services
revenue in India is projected to grow at a compound annual growth rate (CAGR) of 12.5
per cent from 2009 to 2013 to exceed US$30 billion. The India mobile subscriber base
is set to exceed 771 million connections by 2013, growing at a CAGR of 14.3 per cent in
the same period from 452 million in 2009. This growth is poised to continue through
the forecast period, and India is expected to remain the world’s second largest wireless
market after China in terms of mobile connections.
Marketing Intelligence & Planning
Vol. 32 No. 4, 2014
pp. 475-494
r Emerald Group Publishing Limited
The authors would like to acknowledge the Editor and the reviewers for their productive 0263-4503
comments and guidance to help improve the work. DOI 10.1108/MIP-07-2013-0119
 MIP 1.1 Adoption of m-commerce and banking
32,4 Despite the wide popularity of mobile phones in India and several other countries
around the world (70 per cent in Korea, 95 per cent in Finland, and more than 300
million in China) it was found that the usage of m-banking is very low (Gillespie, 2007;
Kwiatkowski, 2010). Mobile phone banking or m-banking, “is an emerging facet of
electronic banking that, unlike traditional phone banking services, which offer very
476 limited functions, is a rich platform for automated banking and other financial
services”. M-banking involves the use of a mobile phone or another mobile device to
undertake financial transactions. Consumer skepticism about m-banking is cited one of
the major reason apart from legal and regulatory framework for such low penetration
(Gillespie, 2007).
In another study conducted by KPMG (KPMG International, 2009) of more than
4,000 people in 19 countries (North America: Canada, USA: Latin America: Brazil,
Mexico; Europe: France, Germany, Italy, Spain, The Netherlands, Russia, Turkey, UK;
Middle East/Africa: Saudi Arabia, South Africa; Asia: China, Hong Kong, India, Korea,
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

Taiwan), Seidel reported that an impressive majority (53 per cent) are at least
somewhat comfortable with using a mobile phone for financial transactions, while 47
per cent are not at all comfortable. It was found that at the regional level respondents
from Asia (64 per cent) are at least somewhat comfortable using their mobile phone to
make financial transactions. The study explored that the youngest mobile phones
users, or those between the ages of 16 and 34, were the most comfortable using their
phones for financial transactions, while the 65 þ age group (75 per cent) were not
at all comfortable. Finally, respondents mentioned two issues that have impact on their
decision to use online or m-banking in the future: security (60 per cent) or privacy
(55 per cent) and ease of use (20 per cent).
From the above it is clear that customers from Asian countries like India are
comfortable using m-banking. Furthermore to facilitate the diffusion of m-banking the
Indian banking regulator, Reserve Bank of India developed and issued directives and
guidelines for m-banking during 2008. However, it was found that making payment
through mobile-banking system is not a common phenomenon not only in India
but also in other countries, a minority (19 per cent) of consumers worldwide use
their mobile device for banking purposes or payments (KPMG International, 2009).
To further protect the m-banking users against fraudulent practices a common
m-banking platform was created by the National Payments Corporation of India under
the guidance of RBI. In a recent study published in the Reserve Bank of India Bulletin
it was found that the registered m-banking user base in India is only 12 million
(Chakrabarty, 2012) as against 300 million in China. Against this backdrop it would
be useful to understand factors impacting diffusion/adoption of m-banking in an
emerging nation like India.

2. Literature review
The Oxford Dictionary meaning of the word telephone means a system for transmitting
voices over a distance using wire. Apart from transmitting voice mobile phones
also support variety of other services like SMS, internet access, business application,
photography, etc. due to its wide utility the worldwide subscription of mobile phones
have reached 4.6 billion and is expected to grow further (CBSNews.com, 2010).
This new technology of using mobile phone for commercial purpose is popularly called
as mobile commerce (m-commerce). Therefore m-commerce can be considered as
a broad term which includes m-banking, mobile ticketing, mobile coupons and
 procurement of products via mobile phones. Tarasewich et al. (2002) have defined Adoption of
m-commerce as “all activities related to a (potential) commercial transaction conducted m-banking
through communication networks that interface with wireless devices”. M-banking can
be treated as a technological innovation as it allows customers to conduct banking in India
transactions without constraints of time and place (Laukkanen, 2007). Mobile
phones are also used to provide m-banking services, which include numerous mobile
applications like money transfer, account checking, getting communications, and 477
promotions from banks in mobile phones, etc.

2.1 Existing models to predict the adoption of new technology: Technology Acceptance
Model (TAM)
New technology, however, lucrative it might be gets hampered if the target
segment is not ready to accept it. One major reason for people to accept new
technology is their perception that the technology would help them to perform better
which is called as the usefulness of the technology (Davis, 1989). People may still
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

decide not to adopt the technology which is perceived useful (PU), if they perceive it
very complex to use or not easy to use/operate (Davis, 1989). These two factors are
found to impact attitude towards adoption which in turn impacts the behavioral
intention to adopt new technology (Davis, 1989). TAM as is popularly called uses these
two factors along with organizational support (internal variable) as determinant of
people’s attitude and their behavioral intention for adoption (Davis, 1989). TAM
was studied in the context of adoption of new technology like PC introduced by an
organization to its employees for increasing efficiency. Support of the organization
to which individual is a part is essential for the successful adoption of technology.
TAM also suggests that external variables like system features, training,
documentation, and user supports may also affect perceived ease of use (PEOU) and
usefulness (Davis, 1989).
It was criticized that TAM may not hold well across cultures. Evers et al. in their
study on Asian and Australian people have found different levels of PU and PEOU
within a technology. However, TAM was replicated successfully in cultures which were
identified as not open to innovation adoption (Hofstede, 1997), i.e. validity of TAM
was successfully replicated in Jordan. TAM was studied in North America, Asia, and
Europe by adding two more constructs to it SPIR (social presence/information
richness) and gender. It was found that though women have higher value for PU and
men have higher value for ease of use but the overall impact of this preference on
technology adoption was not found significant. One of the major criticisms of TAM
was that it is most often used in work-related contexts which do not involve any cost to
the user. Using TAM to study adoption of technologies used for commercial purposes
where the user have to bear cost, needed some modification as the existing constructs
of TAM were too wide and general. For new technology like e-Commerce and
m-commerce, adoption not only depends upon ease of use and PU but also depends
upon the risk involved in online transaction. If the person is not sure or has trust on the
entire process of transaction using these technologies then he may not think of
adopting it at all. Hence to overcome the weakness found in TAM trust was also added
to it (Chircu and Kauffman, 2000).
TAM enhanced with trust and past experience was used to study the adoption of
e-Commerce in China and USA. In their study they found the adoption process varies
across USA and China. While it is fast in USA it is relatively slow in case of China. TAM
is originally developed and successfully tested in USA and its validity across culture still
 MIP remains a research agenda since the model used across cultures in the past is found to
32,4 endow different result.
Wessels and Drennan in their study on adoption of m-commerce in Australia used
TAM by extending it to incorporate four important dimensions namely, need for
interaction, risk, cost, and compatibility. In their study they did not find any support
for the relationship between PEOU and need for interaction with attitude towards
478 m-Banking. Penetration of mobile phones among customers is the reason for such low
preference towards ease of use. Rather they have found strong support for risk. This is
in line with the findings of Luarn and Lin’s (2005), who have found that it is risk rather
than PU that has impact on consumers’ intention to use m-banking in Taiwan.
A similar study conducted by Laforet and Li on Chinese customers have found that
they are mostly concerned with security, hackers, and fraud given the high uncertainty
avoidance characteristics of the Chinese culture. Each of these studies has some similar
finding and some findings are dissimilar pointing to the fact that the significance of
variables used in TAM are culture dependent. Findings of one culture and country
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

cannot be generalized on another.

2.2 Diffusion of innovation (DOI)

DOI like TAM is another framework to depict how new innovation (process
improvement or better product/service attributes, which are not easily replicable) gets
diffused. Though there exist no single DOI model, however, Rogers (1983) has done
some pioneer job in this field. Factor like ease of use and its impact on positive attitude
formation was used in TAM to determine technology adoption and a similar factor was
used in DOI theory called as complexity of the technology (Rogers, 1983) and its impact
on technology adoption. DOI used other factors like relative advantage, compatibility,
observability, and trialability for predicting technology adoption intention of consumers.
Rogers (1995) was also one of the pioneers to depict the process of innovation in stages.
According to Rogers (1995) the diffusion of an innovation is a process by which an
innovation is communicated through different channels over time to the members of a
social system. He proposed five stage processes for DOI starting with awareness, interest,
evaluation, trial, adoption. Innovative products or technology having relative advantage
over existing technology, the potential to evoke trial among people, the impending power
to make prospective consumer perceive that it is compatible to their values and needs
and finally can be observed are adopted in stages. This adoption process is linked to the
user’s personality. Those who are highly innovative would adopt it first and so their
adoption process will be very fast. Then comes the early majority followed by late
majority and finally the laggards who wait to receive the feedback from all the early
users before deciding to adopt a new technology or products.
DOI is also function of communication and the way social interaction like WOM, etc.
takes place. Most studies on DOI modeling are rooted in the work of Bass. The Bass
model formalizes the level of penetration of a new product accentuating two methods
of communication: internally from the firm, i.e. advertising, mass media, and external
to the firm, i.e. word-of-mouth. The decision of a consumer is described as the
probability to adopt the new product during time and it is assumed to depend linearly
on these two forces.
In replicating TAM to test technology adoption across cultures it was found to
provide conflicting results, the same even applies to the DOI theory. In TAM it was
argued that USA compared to China is found to adopt new technology faster since it is
advanced, indicating level of economic development to have impact on technology
 adoption. The same principal should apply while DOI is studied, i.e. in advanced Adoption of
countries innovation should diffuse faster. On the contrary while studying DOI theory m-banking
some researchers found that innovation diffusion is slow in USA compared to Asia and
Europe. A more comprehensive study conducted in 31 countries found similar results in India
as Tong et al., that innovation diffuse fast in developed countries over developing
countries. In another study by Helsen et al. and Kumar et al. no evidence in favour of
the link between culture and DOI was found. 479
Validity of TAM and DOI model across culture is found to endow different results.
Furthermore both TAM and DOI have been modified from time to time to include
variable most appropriate for the context of research. Since both TAM and DOI
have been applied to different contexts like adoption and diffusion of e-Commerce,
m-commerce, etc., therefore the models have been modified to suit the context.
Both TAM and DOI alone cannot predict the adoption/DOI in their original form.
One major drawback of TAM is lack of construct examining the influence of peer
groups or social influence (SI) in adoption of technology. To some extent this construct
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

was incorporated in DOI theory to explain the process and pace of DOI. Later on
Venkatesh and Davis (2000) included the new construct of peer or SI in the TAM model
and renamed it TAM2.
First review of the extant literature brings out the need to validate the model on DOI
across culture. Second TAM and DOI are two models that are suitable in predicting
users’ initial adoption of a new IT. However, given that m-banking has different
characteristics from other technologies that were studied in the past, it is important to
extend the TAM and DOI models to study the prediction of m-banking adoption. The
present study extends the scales of the original TAM and DOI models by incorporating
additional variables like trust, influence of society, facilitating conditions. Issues such as
security and privacy play an important role in influencing consumer’s trust in adopting
m-banking. Although users are assured by several banking laws and anti-virus tools for
using m-banking still m-banking being a relatively new concept in India it would be
interesting to evaluate the risk perception of customers about m-banking in India.
M-banking is also expected to be influenced by the society. Consumers might purchase
and use certain mobile devices following the trend or influence from the media and peer
group. Another important factor that would predict the intention to adopt m-banking
would be facilitating condition. Availability of necessary resources and technology to use
m-banking in all parts of India will determine the intention to adopt m-banking. All the
predicting variables with their outcomes are discussed in detail under the section on
conceptual model. Furthermore to better understand customer’s adoption intention this
study also aims to explore the existence of segments if any.

3. Conceptual model
PU or relative advantage is one of the most studied variables in the new technology
adoption. PU had been found to predict user’s attitude towards m-banking. PU is, “the
degree to which an innovation is perceived as a better alternative to currently available
products or services” (Rogers, 1962). In the context of m-banking would the users
consider m-banking a more useful option over e-banking? There are many relative
advantages of m-banking over e-banking. M-banking offers advantage for users in
terms of mobility (users are not constrained by physical location) and it would be
easier to carry a mobile phone when compared to carrying a laptop or notebook for
m-banking. Past studies have found positive correlation between PU and positive
attitude towards m-commerce (Cheong and Park, 2005). Based on the above it would be
 MIP useful to investigate if positive PU has positive influence over Indian customer’s
32,4 attitude towards m-banking:

H1. PU has a significant and positive relationship with consumer’s attitude towards
m-banking.

480 PEOU is defined as, “the degree to which a person believes that using a particular
technology would be effortless” (Davis, 1989). PEOU in the context of m-banking is the
degree to which m-banking is perceived as easy to understand and operate. For using
m-banking customers do not need to spend significant effort as the m-banking services
are user friendly interfaces. It is likely that customers see the application features of
m-banking as easy to use. Past studies have also proved the relationship between ease
of use and attitude towards m-banking (Bhattacherjee, 2000; Taylor and Todd, 1995;
Davis, 1989). However, physical features of mobile devices such as its small display
screen, difficulty in inputting data can also serve as a constraint to the positive attitude
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

towards m-banking. In a country like India where m-banking is a recent development it

would be therefore important to determine if they perceive m-banking as easy or
difficult to use, and whether this perception will lead to positive/negative attitude
towards m-banking. Based on the above we hypothesize that:

H2. PEOU has a significant and positive relationship with customer’s attitude
towards m-banking.

Since m-banking is relatively new electronic delivery channels being offered by banks,
people may have security or privacy concerns with respect to the new channel.
The lack of trust is one of the most prominent reasons for customer’s negative
attitude towards m-banking. Thus, PEOU and PU may not fully reflect the
users’ attitude towards m-banking (Eriksson et al., 2004; Wang et al., 2003) until user’s
have trust. Trust required in the case of m-banking is more than that of traditional face
to face banking. Banking transactions which are made online are considered more risky
because of lack of the physical presence of a physical branch, as well as face-to-face
interaction between bank and customer (Aladwani, 2001). Trust is defined as, “users
willingness to become vulnerable to the m-banking service providers after considering
their characteristics (e.g. security, brand name)”. Theory of social exchange and principle
of generalized reciprocity explains that lack of trust leads to negative attitude in
customers. In the parlance of m-banking positive attitude towards m-banking is
determined by the following trust factors:
(1) Competence: to meet the needs of the customer appropriately. Positive
perception of the m-banking firm’s competence (i.e. ability, expertise, and
dexterity) in providing appropriate services leads to positive perception
towards m-banking (Lin, 2011).
(2) Benevolence: to care and intention to act in the larger interest of the customers.
Customer’s perception about the m-banking firm’s care and intention to work
towards the larger benefits of their customers leads to positive perception
towards m-banking (Robert et al., 2009; Mukherjee and Nath, 2003).
(3) Communication: to provide accurate and timely information to customers.
Customer’s perception of the bank’s timely, open and accurate information
 sharing with them leads to positive attitude towards m-banking (Mukherjee Adoption of
and Nath, 2003; Lin, 2011). m-banking
(4) Privacy and security: to protect and secure the information of the customer. in India
Security and privacy are found to influence customer’s attitude towards
m-banking (Wang et al., 2003; Luarn and Lin, 2005; Hernandez et al., 2008).
Customer’s major concern towards m-banking security is associated with
monetary risk (Cheng et al., 2006) and privacy is associated with misuse of 481
customer’s information by the banks offering m-banking services (Howcroft
et al., 2002; Kesh et al., 2002; Aladwani, 2001). If customers perceive m-banking
transaction to be secure and private then it leads to positive perception about
m-banking (Bart et al., 2005; Lin, 2011).
Perceived competence, benevolence, communication, and privacy and security of
m-banking firms may play an important role in determining individual attitudes
towards the use of m-banking (Lin, 2011; Hernandez et al., 2008; Polatoglu and
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

Ekin, 2001; Suh and Han, 2002; Howcroft et al., 2002). From the above it can be
hypothesized that:
H3. Perceived competence has significant and positive relationship with consumer’s
positive attitude towards m-banking.

H4. Perceived benevolence has significant and positive relationship with consumer’s
positive attitude towards m-banking.

H5. Perceived communication has significant and positive relationship with

consumer’s positive attitude towards m-banking.

H6. Perceived privacy and security has significant and positive relationship with
consumer’s positive attitude towards m-banking.

SI is the degree to which an individual user feels he or she should use m-banking
technology. New technologies like m-banking always create some kind of uncertainty
and excitement about their expected benefits, in the mind of users. Discomfort level of
the user increases with the perceived uncertainty and the user tends to interact with his
friends or colleagues before arriving at any decision. So attitude towards new-technology
(m-banking) is expected to be influenced by friends and family. Past studies on SI have
proved the link between SI and attitude towards new technology, i.e. internet,
m-commerce, m-banking, etc. (Kleijnen et al., 2004; Nysveen, 2005; Amin, 2008; Venkatesh
et al., 2012). Pressure from peer and family is found to play prominent role in user’s
attitude towards online banking Pikkarainen et al., 2004; Wang et al., 2003; Karjaluoto,
2002). From the above it is evident that SI can determine user’s attitude towards
m-banking. In the light of the above fact it would be interesting to investigate if SI
affects m-banking users in India or not? Therefore the following hypothesis is proposed:

H7. SI has a significant and positive relationship with consumer’s positive attitude
towards m-banking.

Facilitating conditions are defined as the degree to which an individual believes that
a resources and technical infrastructure exists to support the use of the technology
 MIP (Venkatesh et al., 2003). The resources and technology conditions (Ajzen, 1991) when
32,4 applied in the context of m-banking it can be used as the potential user’s perception
about his knowledge and resources to use m-banking. Consumers who have an
internet-enabled mobile phone with fine interface for exploring mobile sites and due
knowledge of using the technology and services then it is likely that the customer
would have positive attitude towards m-banking. Therefore from the above it can by
482 hypothesize that:

H8. Facilitating condition has a significant and positive relationship with

consumer’s positive attitude towards m-banking.

TPB asserts that behavioral intention is a direct function of attitude towards

that behavior (Fishbein and Ajzen, 1975). The more recent definition of attitude
given by Ajzen and Fishbein the degree of an individual’s positive and negative attitude
towards the particular object or towards the intention of performing the particular
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

behavior. Many researchers found attitude as an important determinant of behavioral

intention and behavioral intention as determinant of actual behavior therefore intention
to adopt is used in many studies to capture people’s actual behavior (Lin, 2011; Tan and
Teo, 2000; Black et al., 2001; Howcroft et al., 2002; Flavian and Guinalı́u, 2006). In the
present study attitude towards m-banking is used to evaluate customer’s intention to
adopt m-banking in India. So from the above it can by hypothesize that:

H9. Attitude towards m-banking has a significant and positive relationship with
consumer’s behavioral intention.

4. Research methodology
4.1 Development of measure for the constructs
A list of items tapping each construct’s underlying dimensions was developed
based on a review of the existing literature and on an attribute classification by a
small group of experts in the area of m-commerce and m-banking, to make a final
selection of components. Their recommendations were used to adapt the wording of
items so as to make it suitable in the present context. All the items for measuring
relative advantage/PEOU were adapted from the original work of Moore and
Benbasat (1991). For measuring ease of use items were adapted from the original
work of Davis (1989). For measuring attitude and influence of society items were
adapted from the original work of Taylor and Todd (1995). For measuring facilitating
conditions items were adapted from the work of Cruz. For measuring trust items
were adapted from the work of Mukherjee and Nath (2003) and Lin (2011). Finally for
measuring intention to adopt m-banking items were adapted from the original
work of Taylor and Todd (1995). All the items were measured on a Likert-type scale
ranging from 1 (totally disagree) to 5 (totally agree). The adapted questionnaire
was tested for its face validity among a group of ten experts and based on their
suggestions changes were incorporated and the questionnaire was then used for
pre-test.

4.2 Pre-testing the questionnaire

A total of 95 items were generated and purified in an iterative process using
item-total correlations and explorative factor analysis. The items were tested
in a pilot study conducted on a sample of 50 before starting the data collection
 process, in order to determine the time taken to complete it and any wording/ Adoption of
understanding problem in completing it. Results from this pilot study resulted m-banking
in minor revisions to the wording, of the questionnaire, and reducing the original
95 items to 63 items. The entire purified items Cronbach’s a is above 0.70 in India
which is considered to be adequate for unidimentionality. The factor loadings
are found to be X0.60. With the revised 63 items data was collected from a
sample of 600. 483
4.3 Data collection
The primary data were collected using structured questionnaire (in English) from 600
(150 each from each cities) respondents. In the present study we aimed to analyze
the behavioral intention of non-users about m-banking, so as to explore the potential
barriers to the adoption of m-banking in an emerging market like India.
The respondents drawn in the survey have at least one banking account and were
also sampled by convenience, in order to represent the major economic cities in India
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

namely, Delhi, Mumbai, Kolkata, and Bangalore. The samples were selected based
on their knowledge about m-banking and m-banking in their current bank/s they are
banking with. The questionnaire was administered directly and the samples were
contacted directly.

4.4 Factor analysis

As cited in Hinkin (1995), an ideal sample size should have an item-to-response
ratios ranged from as low as 1:4 to as high as 1:10 for each set of scales to be factor
analyzed. In this research, there were 63 items to be measured; hence sample size from
264 to 660 respondents would be sufficient for factor analysis. Based on the above a
sample size of 600 can well be justified. Review of sample demographic profile (Table I)
reveals that 57 per cent of respondents were male, the majority of which ranged in
age between 25 and 35 (56 per cent), with 49 per cent indicating INR of 360,001-720,000
in annual total household income and 37 per cent have account for more than one
year to three years. In all, 49 per cent of the sample belongs to the wealthier section of
the society.

4.5 Cluster analysis

Cluster analysis is widely used tool for exploring the presence of segments if
any. Cluster analysis has been used for several purposes such as market segmentation,
understanding buyer behavior, the development of potential new product
opportunities, test market selection, etc. To explore the existence of segments the
present study employs clustering analysis. As compared to other statistical methods, it
makes no advance assumptions about differences within a population. Using cluster
analysis on appropriate variables allows consumer-revealed segments to emerge free of
any bias. Clustering analysis using variables from our conceptual model which tests
the intention to adopt m-banking, will help to understand specific segments intention.
Such understanding will reduce overgeneralization and help the service providers to
understand the customers better.

5. Data analysis and results

The two-step procedure proposed by Anderson and Gerbing (1988) were employed in
this study. The first step involves developing an effective measurement model, with
the second step analysing the structural model.
 Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

32,4
MIP

484

Table I.
Demographic profile
% age of Cluster 1 (n ¼ 252.6) Cluster 2 (n ¼ 219) Cluster 3 (n ¼ 128.4)
Variables Category sample (%) (%) (%) w2

Age 25-35 56 59 57 51 19.73*

36-45 38 32 38 43
46-55 6 9 5 6
Gender Male 57 60 47 64 24.32*
Female 43 40 53 36
Income in Indian Rupees (INR)
annually 180,000-360,000 37 41 35 36 37.63**
360,001-720,000 49 50 48 46
720,001-1,440,000 14 9 17 18
Time as banking customer
(years) Less than a year 20 13 12 34 41.01*
One to three years 37 41 40 31
Four to six years 29 31 30 27
More than six years 14 15 18 8
Types of m-banking services
aware of Account balance checking 20 24 18 17 23.26*
Bill payments 18 17 18 18
Transferring amounts 20 23 21 17
Credit card balance checking/
payments 22 21 23 24
General banking requirements 20 15 20 25
Notes: * po0.05; ** po0.01
 5.1 Measurement model Adoption of
Fornell and Larcker (1981) stressed the importance of examining construct reliability m-banking
(CR) and average variance extracted (AVE). As indicated in Table II, the values of AVE
and CR exceed 0.55 and 0.78, respectively, suggesting that the scale used is reliable. in India
Anderson and Gerbing (1988) suggest that convergent validity can be accessed from the
measurement model by determining whether each indicator’s estimated pattern coefficient
on its hypothesized underlying factor is significant. As presented in Table II, all factor 485
loadings were statistically significant, showing that all indicators effectively measure their
corresponding construct. Table II shows that all the values of R 2 are exceeding 0.50
supporting convergent validity. Discriminant validity was tested in a series of nested
confirmatory factor model comparisons in which correlations between latent constructs
were constrained to 1 all the values are below the cut off mark of 0.80. In summary,
the measurement items are clean, with evidence for unidimensionality, convergent validity,
reliability, and discriminant validity we now proceed with the evaluation of structural
model.
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

5.2 Cluster analysis

K-means cluster analysis has been performed to segment the samples into clusters.
The number of segments was determined by the agglomeration coefficients in the
hierarchical cluster analysis which was used for guidance in deciding how many
segments are required to be in the analysis. It is advised to stop agglomeration as soon
as the increase between two close steps becomes large.
There was a large increase in the value of the agglomeration coefficient from a three-
cluster to a two-cluster solution. Therefore, three clusters were considered to be the
appropriate number of clusters to segment the store shoppers. The cluster information
for each case in the K-means cluster analysis was used to specify the number of the
final cluster to which the case was assigned. By implementing this procedure number
of respondents in Cluster1-3 were 252.6 (42.1 per cent), 219 (36.5 per cent), and 128.4
(21.4 per cent), respectively. w2-test shows that the cluster has significant differences
among themselves in terms of their demographic profile (refer to Table I). Details
of cluster-analysis and their perception about factors influencing attitude towards
m-banking is presented below (Appendix). Such analysis would help managers to
focus and improve on factors that are not perceived adequate by customers.
Such improvements would facilitate adoption of m-banking:
. Pragmatic-segment (Cluster1): 59 per cent belong to the age-cohort of 25-35,
60 per cent are male, 50 per cent of them are in the income bracket of
360,001-720,000 and 41 per cent are banking for one to three years. M-banking
services they are aware of are checking account balance (24 per cent), credit card
balance (21 per cent) and transferring amount (23 per cent). They have least
rating for SI and highest rating for PU, competence and communication. Factors
that they perceive to be average are benevolence, privacy and security, PEOU
and FC. They are more individualistic in their approach.
. Communal-segment (Cluster2): 57 per cent belong to the age-cohort of 25-35,
per cent are females, 48 per cent of them are in the income bracket of 360,001-
720,000 and 40 per cent are banking for one to three years. M-banking services
they are aware of are transferring amount (21 per cent), credit card checking
(23 per cent) and general banking requirement (20 per cent). They have least rating
for FC, benevolence and privacy and security. They have highest rating for SI,
 MIP Standardized
32,4 Scale items loading R2 AVE CR

Perceived usefulness
I believe m-banking would help me to accomplish my task
more quickly 0.85 0.72 0.74 0.89
486 I believe m-banking would improve the quality of banking
services 0.86 0.74
I believe m-banking would make it easier to receive banking
services 0.89 0.79
I believe the disadvantages of m-banking would outweigh
the advantages 0.84 0.71
I believe with m-banking i would be able to have better
control over my banking activities 0.85 0.72
Perceived ease of use
I believe use of m-banking is very cumbersome 0.75 0.56 0.71 0.73
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

I believe it is easy to learn the banking operation using

m-banking 0.75 0.56
I believe m-banking is frustrating 0.9 0.81
I believe m-banking will be very flexible 0.94 0.88
I believe that the process m-banking would be easy to
remember 0.94 0.88
I believe the interface with m-banking would be user
friendly 0.78 0.61
I believe that it would be easy for me to become skilful at
using mobile banking 0.8 0.64
Attitude towards m-banking
Using m-banking would be a (good/bad) idea 0.87 0.76 0.72 0.83
Using m-banking would be a (foolish/wise) idea 0.84 0.71
I (dislike/like) the idea of using m-banking 0.84 0.71
Using m-banking would be (pleasant/unpleasant) 0.84 0.71
Society influence
I want to do what my friends think i should do 0.79 0.62 0.62 0.73
I want to do what my family think i should do 0.77 0.59
My friends think i should use m-banking 0.83 0.69
My family think i should use m-banking 0.77 0.59
Intention to Adopt m-banking
I intend to use m-banking 0.91 0.83 0.72 0.84
I intend to use m-banking for all banking purposes 0.88 0.77
I intend to use m-banking frequently 0.75 0.56
Facilitating condition
My mobile device is appropriate for m-banking 0.81 0.66 0.71 0.75
The cost of purchasing a mobile device suitable for
m-banking is high 0.89 0.79
The mobile internet service is expensive 0.89 0.79
The bank’s mobile service has high fees 0.77 0.59
Competence
I think that mobile banking firms have the ability to
understand my needs about managing my finances 0.86 0.74 0.72 0.81
I think that mobile banking firms have the expertise to
understand my needs about managing my finances 0.83 0.69
I think that mobile banking firms have good knowledge
Table II. about managing my finances 0.86 0.74
Summary of confirmatory
factor analysis (continued )
 Standardized
Adoption of
Scale items loading R 2
AVE CR m-banking
in India
Benevolence
I think that mobile banking firms put my interest & wishes
first 0.88 0.77 0.84 0.89
If I required help, I believe that mobile banking firms will do 487
its best to help me 0.97 0.94
I think that mobile banking firms are interested in my
wellbeing, not just its own 0.89 0.79
Privacy and security
I feel safe providing personal privacy information over the
m-banking 0.77 0.59 0.63 0.71
I’m not worried to use m-banking as I know my transactions
will be secured and safe 0.78 0.61
I feel secure sending sensitive information across the
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

m-banking 0.75 0.56

The bank will not divulge any of my information to the
third party 0.88 0.77
Communication
The bank clearly mentions its norms and policies about
m-banking channel to its customers 0.83 0.69 0.74 0.88
The bank keeps its customer’s informed about the latest
developments in the m-banking channel 0.89 0.79
Always high quality information to its customers 0.87 0.76
Never claims anything that is not valid 0.86 0.74 Table II.

PEOU, communication, competence and PU. They are group-oriented in decision

making with majority being females.
. Exigent-segment (Cluster3): 51 per cent belong to the age-cohort of 25-35, 64 per cent
are male, 46 per cent of them are in the income bracket of 360,001-720,000 and
34 per cent are banking for less than a year. M-banking services they are aware
of are checking credit card balance (24 per cent) and general banking
requirement (25 per cent). They have least rating for benevolence, privacy and
security, FC, PEOU, and communication. Factors that they have rated average
are SI, competence, and PU. They are very demanding and tricky in the sense
that none of the factors are rated high by them. This is going to be the
challenging segment for marketers.

5.3 Structural model and hypotheses testing

After achieving a satisfactory fit in the measurement model, the structural model
based on a path analysis was estimated. Table III indicates that all significant
relationships between latent constructs are in the hypothesized direction, which provides
initial evidence for our conceptual model (Figure 1). The structural model provided a good
fit of the data (see Table III).
Table III lists the empirical test results. The chi-square value is significant
(1,327 with 876 df ), a finding not unusual with large sample sizes. The ratio of w2 to
df is 1.08, which can be considered as adequate. A significant w2 (i.e. po0.05)
means the observed and estimated models differ considerably; therefore, it is desired
 MIP to have a non-significant w2. w2 is sensitive to the sample size therefore other goodness
32,4 of fit index is used to test the model (Hair et al., 2006). The CFI represent
comparisons between the estimated model and a null or independence model.
The closer the CFI value to unity, the better the fit, with 0.97 or greater indicating
an acceptable fit.
To identify specification or measurement errors, the root mean squared
488 error of approximation (RMSEA) measure was utilized. This measure is an
estimate of the goodness-of fit if the model was estimated in the entire population.
The closer this RMSEA value is to 0, the better the fit, with a rule of thumb
being that values of 0.05 or less would indicate a close fit, but an RMSEA of
0.08 or less would still be considered within a reasonable error factor of a good
fit. In the present study RMSEA is found to be 0.016 which is within the acceptable
limit. Given the adequacy of these indices no changes were made in the proposed
framework and the model if found to be fitting well.
All the hypotheses were found to be significant and in the hypothesized direction
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

except H4, H6 and H8. The relationship between benevolence and attitude towards
m-banking was found negative but significant. No positive relationship was found
between privacy and security and attitude towards m-banking. The relationship
between FC and attitude towards m-banking were also not found in the hypothesized
direction. H1, H2, H3, H5, H7 and H9 were all well supported and were in the
hypothesized direction.
6. Conclusion and implications
The primary objective of the study was to investigate customer’s intention to adopt
m-banking. The study also aimed at exploring existence of segments if any.
The empirical evidence suggests all the proposed hypothesis excepting H4, H6
and H8, are in the hypothesized direction. The relationship between attitude towards
m-banking and intention to adopt m-banking was found positive. Positive influence of
attitude on behavioral intention is well established in the literature on adoption of new
technology (Dabholkar and Bagozzi, 2002; Luarn and Lin, 2005). The present findings
confirm the same in the context of m-banking.
The relationship between PU and attitude towards m-banking was found positive. This
is in line with the previous studies. The present study found positive relationship between

MLS MLU
Parameter Hypothesis estimate estimate

PU and Attitude towards m-banking H1 (þ) 0.172 0.44**

PEOU and Attitude towards m-banking H2 (þ) 0.071 0.064*
Competence and Attitude towards m-banking H3 (þ) 0.086 0.106*
Benevolence and Attitude towards m-banking H4 () 0.058 0.22*
Communication and attitude towards m-banking H5 (þ) 0.16 0.245**
Privacy and security and attitude towards m-banking H6 () 0.059 0.031*
Social influence and attitude towards m-banking H7 (þ) 0.124 0.127*
FC and attitude towards m-banking H8 () 0.061 0.025*
Attitude towards m-banking and Intention to adopt m-banking H9 (þ) 0.179 0.144*
Table III.
Results of structural Notes: MLS estimate, maximum likelihood standardized estimate; MLU estimate, maximum
model analysis likelihood unstandardized estimate. * po0.05; ** po0.001
 Adoption of
Trust factors m-banking
1. Competence
2. Benevolence
in India
3. Privacy &
Security
4. Communication
489

Influence of Society Perceived Ease of

Condition Use
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

Facilitating
Attitude towards m- Perceived
Condition
banking Usefulness

Behavioral Intention
to adopt m-banking Figure 1.
Conceptual model

PEOU and attitude towards m-banking. Relative advantage of m-banking over the existing
technology, i.e. debit card/credit card transaction and online transaction using computers
or laptops, make it useful to the customers.
The relationship between SI (approval from friends and family) and attitude towards
m-banking is found positive. This is in line with earlier findings which found positive
association between SI and attitude towards m-banking (Ajzen, 1991). Contrary to the
earlier findings (Bhattacherjee, 2000) the present study found negative relationship
between FC and attitude towards m-banking. Device unsuitability, complexity acts as
important barrier in the formation of positive attitude towards m-banking. The finding of
our study corresponds to Cruz et al.
The relationship between competence and communication to attitude towards
m-banking is found positive, while the relationship between benevolence and privacy
and security on attitude towards m-banking was found negative. One possible
explanation could be that perception about security and benevolence are based on
intangible factors and customer’s expectations are higher and currently the banks are not
able to meet the expectations of their customers. Privacy and security of m-banking
transaction is essential and the risk gets accentuated when some of the private and
secured information reaches the hands of the cyber criminal (Gupta and Xu, 2010; Cheng
et al., 2006; Pikkarainen et al., 2004). As pointed by Aladwani (2001) banks providing
m-banking services should educate customers about the security features, updates made
from time to time to improve these features. Security features like firewalls, encryption,
 MIP biometrics, smart cards, digital certification and authentication and strict cyber laws to
32,4 protect the customers should be planned and executed well by the banks (Lin, 2011).
Another important set of findings was the apparent clustering of m-banking
consumers into three distinct segments. Several differences emerged among the
segments. The Exigent-segment for instance is a segment that is found to be very
demanding and is want-it-all kind of customers. They are influenced by the society,
490 perceive m-banking to be useful and believe that the banks have the ability to provide
m-banking services. Rest of other factors influencing attitudes towards m-banking are
not perceived adequate by them. Which includes trust related variables excluding
competence, FC and PEOU. To target this segment the bank can try to improve and
emphasize on PU and competence. Further the managers need to work towards
building trust. One way could be to positively influence their family and friends through
proper positioning strategy. By doing so, the marketers can understand the communal-
segment better, as they too are found to be group-oriented. As the communal-segment
have trust on the competence and communication, the same can be emphasized
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

while targeting them. One positive finding for marketer is that the communal-segment
perceives m-banking to be useful and easy to use. The marketers can further be
benefitted by emphasizing these aspects in their targeting and positioning strategies.
The most easy to crack segment would be the pragmatic-segment. They seem to
emanate positive attitude towards m-banking. Almost all the factors are either rated
high or average except SI. The managers can emphasize on PU, competence and
communication while targeting them. The managers should also try to improve and
emphasize on factors such as benevolence, privacy and security, PEOU, and FC to
position their m-banking services better.
By investigating customer’s intention to adopt m-banking in the Indian context, this
study answers the call for additional research to generalize m-banking acceptance
findings to other groups and countries. It is found in the present study that factors like
FC does not always show positive relationship attitude towards m-banking they vary
across cultures. Furthermore in an emerging like India it is found that m-banking
service provider’s benevolence and privacy and security factors are not perceived
positively by customers indicating need to improve these factors across segments.
Improvements in these factors are expected to increase the adoption of m-banking.

6.1 Limitation and direction for future study

A limitation of this study is that actual usage behavior was not included in the
proposed model. This, however, may not be a very serious limitation considering
substantial empirical evidence for intention and behaviour (Venkatesh and Davis, 2000;
Venkatesh and Morris, 2000). However, future research can validate the model and
enhance the generalizability of the research conclusions.

References
Ajzen, I. (1991), “The theory of planned behavior”, Organizational Behavior and Human Decision
Processes, Vol. 50 No. 2, pp. 179-211.
Aladwani, A.M. (2001), “Online banking: a field study of drivers, development challenges and
expectations”, International Journal of Information Management, Vol. 21 No. 3, pp. 213-225.
Amin, H. (2008), “Factors affecting the intentions of customers in Malaysia to use mobile phone
credit cards”, Management Research News, Vol. 31 No. 7, pp. 493-503.
Anderson, J.C. and Gerbing, D.W. (1988), “Structural equation modeling in practice: a review and
recommended two-step approach”, Psychological Bulletin, Vol. 103 No. 3, pp. 411-423.
 Bart, Y., Shankar, V., Sultan, F. and Urban, G.L. (2005), “Are the drivers and role of online trust the Adoption of
same for all web sites and consumers? A large scale exploratory empirical study”, Journal
of Marketing, Vol. 69 No. 4, pp. 133-152. m-banking
Bhattacherjee, A. (2000), “Acceptance of e-commerce services: the case of electronic brokerages”, in India
IEEE Transactions on Systems, Man and Cybernetics, Part A: Systems and Humans,
Vol. 30 No. 4, pp. 411-420.
Black, N.J., Lockett, A., Winklhofer, H. and Ennew, C. (2001), “The adoption of internet banking: a 491
qualitative analysis”, International Journal of Retail Distribution Management, Vol. 29
No. 8, pp. 390-398.
CBSNews.com (2010), “Number of cell phones worldwide hits 4.6B”, available at: www.
cbsnews.com/news/number-of-cell-phones-worldwide-hits-46b/ (accessed 30 January 2012).
Chakrabarty, K.C. (2012), “M-banking in India – regulations and rationale”, RBI Bulletin, 29
March, available at: www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id ¼ 681
Cheng, T.C.E., Lam, D.Y.C. and Yeung, A.C.L. (2006), “Adoption of internet banking: an empirical
study in Hong Kong”, Decision Support Systems, Vol. 42 No. 3, pp. 1558-1572.
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

Cheong, J.H. and Park, M.-C. (2005), “Mobile internet acceptance in Korea”, Internet Research,
Vol. 15 No. 2, pp. 125-140.
Chircu, A.M. and Kauffman, R.J. (2000), “Limits to value in electronic commerce-related IT
investments”, Journal of Management Information Systems, Vol. 17 No. 2, pp. 59-80.
Dabholkar, P. and Bagozzi, R. (2002), “An attitudinal model of technology-based self-service:
moderating effects of consumer traits and situational factors”, Journal of Academy of
Marketing Science, Vol. 30 No. 3, pp. 184-201.
Davis, F.D. (1989), “Perceived usefulness, perceived ease of use and user acceptance of information
technology”, MIS Quarterly, Vol. 13 No. 3, pp. 319-340.
Eriksson, K., Kaerem, K. and Nilsson, D. (2004), “Customer acceptance of internet banking in
Estonia”, International Journal of Bank Marketing, Vol. 23 No. 2, pp. 200-216.
Fishbein, M. and Ajzen, I. (1975), “Belief, attitude, intention and behavior: an introduction to
theory and research”, Philosophy Rhetoric, Vol. 10 Addison-Wesley, Reading, MA, p. 578.
Flavian, C. and Guinalı́u, M. (2006), “Consumer trust, perceived security and privacy policy: three
basic elements of loyalty to a web site”, Industrial Management & Data Systems, Vol. 106
No. 5, pp. 601-620.
Fornell, C. and Larcker, D.F. (1981), “Evaluating structural equation models with unobservable
variables and measurement error”, Journal of Marketing Research, Vol. 18 No. 1, pp. 39-50.
Gillespie, P. (2007), “Mobile banking: does it have a future?”, available at: www.forrester.com/
Research/LegacyIT/Excerpt/0,7208,25430,00.html (accessed 30 December 2011).
Gupta, S. and Xu, H. (2010), “Examining the relative influence of risk and control on intention to
adopt risky technologies”, Journal of Technology Management & Innovation, Vol. 5 No. 4,
pp. 22-37.
Hair, J.F., Black, W.C., Babin, B.J. and Anderson, R.E. (2006), Multivariate Data Analysis, 6th ed.,
Prentice-Hall, Upper Saddle River, NJ, p. 4.
Hernandez, B., Jimenez, J. and Martin, M. (2008), “Extending the technology acceptance model to
include the IT decision-maker: a study of business management software”, Technovation,
Vol. 28 No. 3, pp. 112-121.
Hinkin, J.T. (1995), “A review of scale development in the study of behavior in organizations”,
Journal of Management, Vol. 21 No. 5, pp. 967-988.
Hofstede, G. (1997), Culture and Organization: Software of the Mind, McGraw-Hill, New York, NY.
Howcroft, B., Hewer, P.A. and Hamilton, R. (2002), “Consumer attitude and the usage and
adoption of home-based banking in the United Kingdom”, International Journal of Bank
Marketing, Vol. 20 No. 3, pp. 111-121.
 MIP Karjaluoto, H. (2002), “Selection criteria for a mode of bill payment: empirical investigation
among Finnish bank customers”, International Journal of Retail Distribution Management,
32,4 Vol. 30 No. 6, pp. 331-339.
Kesh, S., Ramanujan, S. and Nerur, S. (2002), “A framework for analyzing e-commerce security”,
Information Management & Computer Security, Vol. 10 No. 4, pp. 149-158.
Kleijnen, M., Wetzels, M. and De Ruyter, K. (2004), “Consumer acceptance of wireless finance”,
492 Journal of Financial Services Marketing, Vol. 8 No. 3, pp. 206-217.
KPMG International (2009), “Consumer taking charge, consumers and convergence III – survey
report”, 23 April, available at: www.kpmg.com/Global/en/IssuesAndInsights/Articles
Publications/Documents/Consumers-and-Convergence-III.pdf (accessed 15 July 2009).
Kwiatkowski, A. (2010), “Can mobile banking fulfil its potential?”, available at: www.telecoms.
com/14746/can-mobile-banking-fulfil-its-potential (accessed 30 December 2011).
Laukkanen, T. (2007), “Measuring mobile banking customers’ channel attribute preferences
in service consumption”, International Journal of Mobile Communications, Vol. 5 No. 2,
pp. 123-138.
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

Lin, H.-F. (2011), “An empirical investigation of mobile banking adoption: the effect of innovation
attributes and knowledge-based trust”, International Journal of Information Management,
Vol. 31 No. 3, pp. 252-260.
Luarn, P. and Lin, H. (2005), “Toward an understanding of the behavioral intention to use mobile
banking”, Computers in Human Behavior, Vol. 21 No. 6, pp. 873-891.
Moore, G.C. and Benbasat, I. (1991), “‘Development of an instrument to measure the perceptions
of adopting an information technology innovation’, Information Systems Research”,
INFORMS: Institute for Operations Research, Vol. 2 No. 3, pp. 192-222.
Mukherjee, A. and Nath, P. (2003), “A model of trust in online relationship banking”,
International Journal of Bank Marketing, Vol. 21 No. 1, pp. 5-15.
Nysveen, H. (2005), “Intentions to use mobile services: antecedents and cross-service
comparisons”, Journal of the Academy of Marketing Science, Vol. 33 No. 3, pp. 330-346.
Pikkarainen, T., Pikkarainen, K., Karjaluoto, H. and Pahnila, S. (2004), “Consumer acceptance
of online banking: an extension of the technology acceptance model”, Internet Research,
Vol. 14 No. 3, pp. 224-235.
Polatoglu, V.N. and Ekin, S. (2001), “An empirical investigation of the Turkish consumers’
acceptance of internet banking services”, International Journal of Bank Marketing, Vol. 19
No. 4, pp. 156-165.
Robert, Jr, L.P., Dennis, A.R. and Hung, Y.C. (2009), “Individual swift trust and knowledge-based
trust in face-to-face and virtual team members”, Journal of Management Information
Systems, Vol. 26 No. 2, pp. 241-279.
Rogers, E.M. (1962), Diffusion of Innovations, The Free Press of Glencoe, Macmillan Company,
New York, NY.
Rogers, E.M. (1983), Diffusion of Innovations, 3rd ed., The Free Press, New York, NY.
Rogers, E.M. (1995), Diffusion of Innovations, 4th ed., The Free Press, New York, NY.
Suh, B. and Han, I. (2002), “Effect of trust on customer acceptance of internet banking”, Electronic
Commerce Research and Applications, Vol. 1 Nos 3/4, pp. 247-263.
Tan, M. and Teo, T.S.H. (2000), “Factors influencing the adoption of internet banking”, Journal of
the Association for Information Systems, Vol. 1 No. 1, pp. 1-42.
Tarasewich, P., Nickerson, R.C. and Warkentin, M. (2002), “Issues in mobile e-commerce”,
Communications of the Association for Information Systems, Vol. 8 No. 1, pp. 41-65.
Taylor, S. and Todd, P.A. (1995), “Understanding information technology usage: a test of
competing models”, Information Systems Research, Vol. 6 No. 2, pp. 144-176.
 Venkatesh, V. and Davis, F.D. (2000), “A theoretical extension of the technology acceptance Adoption of
model: four longitudinal field studies”, Management Science, Vol. 46 No. 2, pp. 186-204.
m-banking
Venkatesh, V. and Morris, M.G. (2000), “Why don’t men ever stop to ask for directions? Gender,
social influence and their role in technology acceptance and usage behavior”, MIS in India
Quarterly, Vol. 24 No. 1, pp. 115-139.
Venkatesh, V., Morris, M.G., Davis, G.B. and Davis, F.D. (2003), “User acceptance of information
technology: toward a unified view”, MIS Quarterly, Vol. 27 No. 3, pp. 425-478. 493
Venkatesh, V., Thong, J. and Xu, X. (2012), “Consumer acceptance and use of information
technology: extending the unified theory of acceptance and use of technology”, MIS
Quarterly, Vol. 36 No. 1, pp. 157-178.
Wang, Y.-S., Wang, Y.-M., Lin, H.-H. and Tang, T.-I. (2003), “Determinants of user acceptance of
internet banking: an empirical study”, International Journal of Service Industry
Management, Vol. 14 No. 5, pp. 501-519.
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

Further reading
Amin, H. (2007), “Extending TAM to SMS banking: analyzing the gender gap among students”,
International Journal of Business and Society, Vol. 8 No. 1, pp. 24-45.
Barczak, G., Ellen, P.S. and Pilling, B.K. (1997), “Developing typologies of consumer motives for
use of technologically based banking services”, Journal of Business Research, Vol. 38 No. 2,
pp. 131-139.
Burton-Jones, A. and Hubona, G.S. (2006), “The mediation of external variables in the technology
acceptance model”, Information & Management, Vol. 43 No. 6, pp. 706-717.
Davis, F.D. and Venkatesh, V. (1996), “A critical assessment of potential measurement biases in
the technology acceptance model: three experiments”, International Journal of Human-
Computer Studies, Vol. 45 No. 1, pp. 19-45.
Davis, F.D., Bagozzi, R.P. and Warshaw, P.R. (1989), “User acceptance of computer technology:
a comparison of two theoretical models”, Management Science, Vol. 35 No. 8,
pp. 982-1003.
Gerrard, P. and Cunningham, J.B. (2003), “The diffusion of internet banking among Singapore
consumers”, International Journal of Bank Marketing, Vol. 21 No. 1, pp. 16-28.
Koufaris, M. and Hampton-sosa, W. (2002), “Customer trust online: examining the role of the
experience with the website”, CIS working paper series, Zicklin School of Business,
Baruch College, New York, NY.
Lee, E.K., Kwon, K.N. and Schumann, D.W. (2005), “Segmenting the non-adopter category in the
diffusion of internet banking”, International Journal of Bank Marketing, Vol. 23 No. 5,
pp. 414-437.
Lee, Y.K., Park, J.H., Chung, N. and Blakeney, A. (2011), “A unified perspective on the factors
influencing usage intention toward mobile financial services”, Journal of Business
Research, Vol. 65 No. 11, pp. 1590-1599.
Liao, S., Shao, Y.P., Wang, H. and Chen, A. (1999), “The adoption of virtual banking: an empirical
study”, International Journal of Information Management, Vol. 19 No. 1, pp. 63-74.
McKnight, D.H., Choudhury, V. and Kacmar, C. (2002), “Developing and validating trust measures
for e-commerce: an integrative typology”, Information Systems Research, Vol. 13 No. 3,
pp. 334-359.
Nunnally, J. (1978), Psychometric Theory, McGraw-Hill, New York, NY.
Pavlou, P.A. (2003), “Consumer acceptance of electronic commerce: integrating trust and
risk with the technology acceptance model”, International Journal of Electronic Commerce,
Vol. 7 No. 3, pp. 69-103.
 MIP Sinisalo, J., Salo, J., Karlajuoto, H. and Leppaniemi, M. (2007), “Mobile customer relationship
management: underlying issues and challenges”, Business Process Management Journal,
32,4 Vol. 13 No. 6, pp. 771-787.

Appendix

494 Factors influencing intention Pragmatic-segment Communal-segment Exigent-segment

to adopt m-banking (n ¼ 252.6) (n ¼ 219) (n ¼ 128.4)

Perceived usefulness 5 4 3
Perceived ease of use 3 4 2
Society influence 2 4 3
Facilitating condition 3 2 2
Competence 5 4 3
Benevolence 3 2 1
Downloaded by Universite Laval At 13:39 03 March 2015 (PT)

Table AI.
Privacy & security 3 2 1
The cluster-wise mean
Communication 4 4 2
scores of factors
influencing intention to Notes: The mean values were collected on Likert scale of 1-5 (while aggregating the values fractions
adopt m-banking were reduced to their nearest whole numbers)

About the authors

Dr Madhurima Deb is an Assistant Professor at the Indian Institute of Management Kashipur,
India. She obtained her PhD from the Indian Institute of Technology Kharagpur (IIT Kharagpur),
India. Prior to joining academics she was an Assistant Manager at the Jones Lang LaSalle Meghraj
Property Consultant Pvt Ltd in their consulting and land agency division. As an Assistant
Manager she has worked on numerous consulting and research projects. Dr Madhurima Deb is the
corresponding author and can be contacted at: madhurimadeb@yahoo.com
Dr Ewuuk Lomo-David is an Associate Professor in the School of Business and Economics at
the North Carolina A&T State University. He received his Doctorate and Master’s degrees from the
University of Memphis and Baccalaureate from the Minnesota State University. His research
interests include application of analytical hierarchical process (AHP) in critical retail service quality
decision-making, the bane of crude oil exploitation and marketing on the lives of Andonis of Nigeria
and re-evaluation of plagiarism policies in academia. His research has appeared in Journal
of Computer Information Systems, Business Studies Journal, Academy of Information and
Management Sciences Journal, and Industrial Management & Data Systems, to mention a few.

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com

Or visit our web site for further details: www.emeraldinsight.com/reprints