Consumers Frequent Use of Internet Banking: Empirical Evidence from Australia

Abstract

This study sets out to explore the factors that influence consumer's frequent use of internet banking in Australia. Consumers' frequent use of internet banking as a post-purchase behavioural pattern that has been neglected as most of the existing studies focus on either consumer adoption or pre-adoption behavioural patterns. More and more service businesses are finding that the acquisition of new customers is difficult and started to realise that understanding consumers' frequent use of internet banking as an effective strategy for retaining the existing customer base. This 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 frequent use of internet banking in hierarchical order of importance to consumers. A conceptual framework is developed based on theoretical models related to the technology acceptance and diffusion of innovations theories. Data were collected from 372 internet banking users using a cross-sectional mall intercept survey in the Western Sydney region. 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 frequent use factors. The final components that emerged were employed in hierarchical logistic regression analysis to test the proposed framework. Value for money, channel and technology factors were found, in that order, to be influential in predicting consumers' frequent use of internet banking.