On E-Banking Adoption: From Banker Perception To Customer Reality

Mark Durkin, Aodheen O'Donnell, Gwyneth Mulholland

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

It has been established that increasing the role of technology in a service organisation can serve to reduce costs and often improve service reliability. For this reason and as the Internet becomes yet more pervasive in retail banking the importance of understanding influences on customer adoption behaviour for e-banking is increasingly important. This study adopts a quantitative methodology and examines customer communication preferences when interacting with their bank, with a particular focus on Internet banking registration. The customer satisfaction questionnaire was issued to over 2,000 retail customers. Through regression analysis the key predictors that indicate whether or not customers will register as Internet banking users were identified. Twenty-five senior branch bank managers were then asked to rank the same set of issues to ascertain what they felt to be the key influencers to customer registration for Internet banking. The similarities and differences between the two sets of findings are identified and the managerial implications for the case bank’s marketing strategy discussed.
LanguageEnglish
Pages237-252
JournalThe Journal of Strategic Marketing
Volume15
Issue number2
DOIs
Publication statusPublished - 2007

Fingerprint

Bankers
Electronic banking
Internet banking
Registration
Regression analysis
Bank branches
Costs
Retail banking
Communication
Methodology
Customer satisfaction
Predictors
Questionnaire
Marketing strategy
World Wide Web
Service organization
Managers
Retail

Keywords

  • retail banking
  • marketing strategy
  • Internet
  • customer adoption
  • e-banking

Cite this

Durkin, Mark ; O'Donnell, Aodheen ; Mulholland, Gwyneth. / On E-Banking Adoption: From Banker Perception To Customer Reality. In: The Journal of Strategic Marketing. 2007 ; Vol. 15, No. 2. pp. 237-252.
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abstract = "It has been established that increasing the role of technology in a service organisation can serve to reduce costs and often improve service reliability. For this reason and as the Internet becomes yet more pervasive in retail banking the importance of understanding influences on customer adoption behaviour for e-banking is increasingly important. This study adopts a quantitative methodology and examines customer communication preferences when interacting with their bank, with a particular focus on Internet banking registration. The customer satisfaction questionnaire was issued to over 2,000 retail customers. Through regression analysis the key predictors that indicate whether or not customers will register as Internet banking users were identified. Twenty-five senior branch bank managers were then asked to rank the same set of issues to ascertain what they felt to be the key influencers to customer registration for Internet banking. The similarities and differences between the two sets of findings are identified and the managerial implications for the case bank’s marketing strategy discussed.",
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note = "Reference text: Axson, D. (1992) ‘A return to managing customer relationships’ International Journal of Bank Marketing, 10(1): 30-35. Bank Marketing (1998) “Alternative delivery = less need for front-line competence”, Bank Marketing, June 1998, 30(6):42-43 Bednar, D.A., Reeves, C.A. and Lawrence, C. (1995), {"}The Role of Technology in Banking: Listen to the Customer{"}, Journal of Retail Banking, 17(3), pp. 35-41. Berry, L.D. (1997), {"}Ten Building Blocks for Developing a Customer-Focused Culture{"}, Bank Marketing, 29(7), pp.106. Bitner, M.J., Brown, S.W. and Meuter, M.L. (2000), {"}Technology Infusion in Service Encounters{"}, Journal of the Academy of Marketing Science, 28(1): 138-149 Bowen, D.E. and Lawler, E.E. (1992), {"}The Empowerment of Service Workers: What, Why, How and When{"}, Sloan Management Review, 33(3), pp.31-39. Chase, R.B. (1978), “Where does the Customer Fit in a Service Operation,” Harvard Business Review Nov/Dec: 137-142. Czepiel, J.A. (1990), “Service Encounters and Service Relationships: Implications for Research,” Journal of Business Research 20: 13-21. Daniel, E. (1999), {"}Provision of electronic banking in the UK and Republic of Ireland{"}, International Journal of Bank Marketing, 17(2): 72-82. Dibb, S. and Meadows, M. (2001), ‘The application of a relationship marketing perspective in retail banking'’ The Service Industries Journal, January 2001, pp169-194 Durkin, M.G. and Howcroft, J.B. (2003), “Relationship Marketing in the banking sector: the impact of new technologies”, Marketing Intelligence and Planning, 21(1), pp 61-71 Durkin, M., Howcroft, B., O'Donnell, A. and McCartan-Quinn, D. (2003), {"}Retail bank customer preferences: personal and remote interactions{"}, International Journal of Retail and Distribution Management. 31(4), pp.177-189. Gwinner, K.P, Grender, D.D. and Bitner, M.J. (1998), {"}Relational Benefits in Service Industries: The Customer's Perspective{"}, Journal of the Academy of Marketing Science, 26(2), pp101-114 Holland, J.B. (1992), {"}Relationship banking: choice and control by the multinational firm{"}, International Journal of Bank Marketing, 10(2), pp.29-40. Hollander, S. (1985), A Historical Perspective on the Service Encounter. The Service Encounter: Managing Employee/Customer Interaction in Service Businesses. J. A. Czepiel, M. R. Solomon and C. F. Suprenant. MA, Lexington Books. Howcroft, J.B. (1998), ‘The New Retail Banking Revolution’, Journal of the Association of Professional Bankers, v8(4), pp45 - 55 Howcroft, J. B and Durkin, M (2000) ‘Reflections on bank-customer interactions in the new millennium’, Journal of Financial Services Marketing, v5, 1, pp9-20 Howcroft, J.B.; Hewer, P. and Durkin, M. (2003), “Banker-Customer Interactions in Financial Services”, Journal of Marketing Management, v19, pp1001-1020 Jayawardhena, C. and Foley, P. (2000), ‘Changes in the banking sector-the case of Internet Banking in the UK’, Internet Research:Electronic Networking Applications and Policy, v10(1), pp19-30 Kelly, S.W. (1989), {"}Efficiency in service delivery: technological or humanistic approaches{"}, Journal of Services Marketing, 3(3): 43-50 Lang, B. and Colgate, M. (2003), {"}Relationship Quality, on-line banking and the information technology gap{"}, International Journal of Bank Marketing, 21(1):29-37 Leblanc, G. (1990), “Customer motivations: use and non-use of automated banking”, International Journal of Bank Marketing, V18 (4), pp36-40 Lee, J. (2002), {"}A key to marketing financial services: the right mix of products, services, channels and customers{"}, Journal of Services Marketing, 16(3): 238-258 Lee, J. and Allaway, A. (2002), {"}Effects of personal control on adoption of self-service technology innovations{"}, Journal of Services Marketing, 16(6):553-572 Marr, N.E. and Prendergast, G.P. (1991), “Strategies for Retailing Technologies at Maturity: A Retail Banking Case Study,” Journal of International Consumer Marketing 3(3): 99-125. Marr, N.E. and Prendergast, G.P. (1993), “Consumer Adoption of Self-Service Technologies in Retail Banking,” International Journal of Bank Marketing 11(1): 3-10. Moutinho, L. and Meidan, A. (1989), “Bank Customers' Perceptions, Innovations and New Technology,” International Journal of Bank Marketing 7(2). Nielsen, J.F. (2002), {"}Internet technology and customer linking in Nordic banking{"}, International Journal of Service Industry Management, 13(5): 475-495 O'Donnell, A.; Durkin, M.G. and McCartan-Quinn, D. (2002) “Corporate Banking In the UK : Personal Vs Remote Interaction”, International Journal of Bank Marketing, 20(6):273-285 Pine, B.J. II, Peppers, D. and Rogers, M. (1995), {"}Do you want to keep your customers forever?{"}, Harvard Business Review, 73(2): 103-114 Rexha, N., Kingshott, R.P.J. and Aw, A.S.S. (2003), {"}The impact of the relationsl plan on the adoption of electronic banking{"}, Journal of Services Marketing, 17(1):53-67 Ricard, L., Prefontaine, L. and Sioufi, M. (2001), {"}New technologies and their impact on French consumer behaviour: an investigation in the banking sector{"}, International Journal of Bank Marketing, 19(7):299-311 Selnes, F. and Hansen, H. (2001), {"}The potential hazard of self-service in developing customer loyalty{"}, Journal of Service Research, 4(2):79-90 Yaklef, A. (2001), “Does the Internet Compete with or Complement Bricks-and-Mortar Branches?,” International Journal of Retail and Distribution Management, Vol. 29, No. 6, 272-281. Zeithaml, V.A. and Gilly, M.C. (1987), “Characteristics Affecting the Acceptance of Retailing Technologies: A Comparison of Elderly and Non-Elderly Consumers,” Journal of Retail Banking 63(1): 49-68.",
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language = "English",
volume = "15",
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journal = "Journal of Strategic Marketing",
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On E-Banking Adoption: From Banker Perception To Customer Reality. / Durkin, Mark; O'Donnell, Aodheen; Mulholland, Gwyneth.

In: The Journal of Strategic Marketing, Vol. 15, No. 2, 2007, p. 237-252.

Research output: Contribution to journalArticle

TY - JOUR

T1 - On E-Banking Adoption: From Banker Perception To Customer Reality

AU - Durkin, Mark

AU - O'Donnell, Aodheen

AU - Mulholland, Gwyneth

N1 - Reference text: Axson, D. (1992) ‘A return to managing customer relationships’ International Journal of Bank Marketing, 10(1): 30-35. Bank Marketing (1998) “Alternative delivery = less need for front-line competence”, Bank Marketing, June 1998, 30(6):42-43 Bednar, D.A., Reeves, C.A. and Lawrence, C. (1995), "The Role of Technology in Banking: Listen to the Customer", Journal of Retail Banking, 17(3), pp. 35-41. Berry, L.D. (1997), "Ten Building Blocks for Developing a Customer-Focused Culture", Bank Marketing, 29(7), pp.106. Bitner, M.J., Brown, S.W. and Meuter, M.L. (2000), "Technology Infusion in Service Encounters", Journal of the Academy of Marketing Science, 28(1): 138-149 Bowen, D.E. and Lawler, E.E. (1992), "The Empowerment of Service Workers: What, Why, How and When", Sloan Management Review, 33(3), pp.31-39. Chase, R.B. (1978), “Where does the Customer Fit in a Service Operation,” Harvard Business Review Nov/Dec: 137-142. Czepiel, J.A. (1990), “Service Encounters and Service Relationships: Implications for Research,” Journal of Business Research 20: 13-21. Daniel, E. (1999), "Provision of electronic banking in the UK and Republic of Ireland", International Journal of Bank Marketing, 17(2): 72-82. Dibb, S. and Meadows, M. (2001), ‘The application of a relationship marketing perspective in retail banking'’ The Service Industries Journal, January 2001, pp169-194 Durkin, M.G. and Howcroft, J.B. (2003), “Relationship Marketing in the banking sector: the impact of new technologies”, Marketing Intelligence and Planning, 21(1), pp 61-71 Durkin, M., Howcroft, B., O'Donnell, A. and McCartan-Quinn, D. (2003), "Retail bank customer preferences: personal and remote interactions", International Journal of Retail and Distribution Management. 31(4), pp.177-189. Gwinner, K.P, Grender, D.D. and Bitner, M.J. (1998), "Relational Benefits in Service Industries: The Customer's Perspective", Journal of the Academy of Marketing Science, 26(2), pp101-114 Holland, J.B. (1992), "Relationship banking: choice and control by the multinational firm", International Journal of Bank Marketing, 10(2), pp.29-40. Hollander, S. (1985), A Historical Perspective on the Service Encounter. The Service Encounter: Managing Employee/Customer Interaction in Service Businesses. J. A. Czepiel, M. R. Solomon and C. F. Suprenant. MA, Lexington Books. Howcroft, J.B. (1998), ‘The New Retail Banking Revolution’, Journal of the Association of Professional Bankers, v8(4), pp45 - 55 Howcroft, J. B and Durkin, M (2000) ‘Reflections on bank-customer interactions in the new millennium’, Journal of Financial Services Marketing, v5, 1, pp9-20 Howcroft, J.B.; Hewer, P. and Durkin, M. (2003), “Banker-Customer Interactions in Financial Services”, Journal of Marketing Management, v19, pp1001-1020 Jayawardhena, C. and Foley, P. (2000), ‘Changes in the banking sector-the case of Internet Banking in the UK’, Internet Research:Electronic Networking Applications and Policy, v10(1), pp19-30 Kelly, S.W. (1989), "Efficiency in service delivery: technological or humanistic approaches", Journal of Services Marketing, 3(3): 43-50 Lang, B. and Colgate, M. (2003), "Relationship Quality, on-line banking and the information technology gap", International Journal of Bank Marketing, 21(1):29-37 Leblanc, G. (1990), “Customer motivations: use and non-use of automated banking”, International Journal of Bank Marketing, V18 (4), pp36-40 Lee, J. (2002), "A key to marketing financial services: the right mix of products, services, channels and customers", Journal of Services Marketing, 16(3): 238-258 Lee, J. and Allaway, A. (2002), "Effects of personal control on adoption of self-service technology innovations", Journal of Services Marketing, 16(6):553-572 Marr, N.E. and Prendergast, G.P. (1991), “Strategies for Retailing Technologies at Maturity: A Retail Banking Case Study,” Journal of International Consumer Marketing 3(3): 99-125. Marr, N.E. and Prendergast, G.P. (1993), “Consumer Adoption of Self-Service Technologies in Retail Banking,” International Journal of Bank Marketing 11(1): 3-10. Moutinho, L. and Meidan, A. (1989), “Bank Customers' Perceptions, Innovations and New Technology,” International Journal of Bank Marketing 7(2). Nielsen, J.F. (2002), "Internet technology and customer linking in Nordic banking", International Journal of Service Industry Management, 13(5): 475-495 O'Donnell, A.; Durkin, M.G. and McCartan-Quinn, D. (2002) “Corporate Banking In the UK : Personal Vs Remote Interaction”, International Journal of Bank Marketing, 20(6):273-285 Pine, B.J. II, Peppers, D. and Rogers, M. (1995), "Do you want to keep your customers forever?", Harvard Business Review, 73(2): 103-114 Rexha, N., Kingshott, R.P.J. and Aw, A.S.S. (2003), "The impact of the relationsl plan on the adoption of electronic banking", Journal of Services Marketing, 17(1):53-67 Ricard, L., Prefontaine, L. and Sioufi, M. (2001), "New technologies and their impact on French consumer behaviour: an investigation in the banking sector", International Journal of Bank Marketing, 19(7):299-311 Selnes, F. and Hansen, H. (2001), "The potential hazard of self-service in developing customer loyalty", Journal of Service Research, 4(2):79-90 Yaklef, A. (2001), “Does the Internet Compete with or Complement Bricks-and-Mortar Branches?,” International Journal of Retail and Distribution Management, Vol. 29, No. 6, 272-281. Zeithaml, V.A. and Gilly, M.C. (1987), “Characteristics Affecting the Acceptance of Retailing Technologies: A Comparison of Elderly and Non-Elderly Consumers,” Journal of Retail Banking 63(1): 49-68.

PY - 2007

Y1 - 2007

N2 - It has been established that increasing the role of technology in a service organisation can serve to reduce costs and often improve service reliability. For this reason and as the Internet becomes yet more pervasive in retail banking the importance of understanding influences on customer adoption behaviour for e-banking is increasingly important. This study adopts a quantitative methodology and examines customer communication preferences when interacting with their bank, with a particular focus on Internet banking registration. The customer satisfaction questionnaire was issued to over 2,000 retail customers. Through regression analysis the key predictors that indicate whether or not customers will register as Internet banking users were identified. Twenty-five senior branch bank managers were then asked to rank the same set of issues to ascertain what they felt to be the key influencers to customer registration for Internet banking. The similarities and differences between the two sets of findings are identified and the managerial implications for the case bank’s marketing strategy discussed.

AB - It has been established that increasing the role of technology in a service organisation can serve to reduce costs and often improve service reliability. For this reason and as the Internet becomes yet more pervasive in retail banking the importance of understanding influences on customer adoption behaviour for e-banking is increasingly important. This study adopts a quantitative methodology and examines customer communication preferences when interacting with their bank, with a particular focus on Internet banking registration. The customer satisfaction questionnaire was issued to over 2,000 retail customers. Through regression analysis the key predictors that indicate whether or not customers will register as Internet banking users were identified. Twenty-five senior branch bank managers were then asked to rank the same set of issues to ascertain what they felt to be the key influencers to customer registration for Internet banking. The similarities and differences between the two sets of findings are identified and the managerial implications for the case bank’s marketing strategy discussed.

KW - retail banking

KW - marketing strategy

KW - Internet

KW - customer adoption

KW - e-banking

U2 - 10.1080/09652540701318815

DO - 10.1080/09652540701318815

M3 - Article

VL - 15

SP - 237

EP - 252

JO - Journal of Strategic Marketing

T2 - Journal of Strategic Marketing

JF - Journal of Strategic Marketing

SN - 0965-254X

IS - 2

ER -