Factors Affecting Consumers' Continued Use of Internet Banking: Empirical Evidence from Australia

Abstract

The goal of this study was to investigate the factors that influence consumer's continued use of internet banking in Australia. Patterns of continued use of internet banking have been neglected as most of the existing studies focus on either consumer adoption or acceptance of internet banking. However, in comparison to new customer acquisition, measures of continued use of internet banking are important as it is related to a cost-effective marketing strategy aimed at retaining customers. The present study is a response to a gap in existing literature which requires the application of more integrated theory testing and the identification of factors that influence the continued use of internet banking in order of importance to consumers. The study sets out to develop a conceptual framework based on theoretical models related to the acceptance of technology and diffusion of innovations theory. The conceptual model developed encompasses technology, channel, social and value for money factors as predictors in the identification of influential factors for consumers and their continued use of internet banking. Data were collected using a cross-sectional mall intercept survey in the Western Sydney region, comprising a sample of 372 internet banking users. After testing the data for accuracy, exploratory factor analysis was performed for factor clarification on five key scales related to the use of internet banking service delivery based on technology, channel, social, value for money and continued use factors. The final components that emerged were employed in hierarchical multiple regression analyses to test the proposed framework. Value for money, channel and technology factors was found, in that order, to be influential in predicting consumers' continued use of internet banking.