The relationship between consumer innovativeness, personal characteristics, and online banking adoption

Abstract

Purpose

This paper explores the relationships between consumer innovativeness, self‐efficacy on the internet, internet attitudes and online banking adoption, while controlling for personal characteristics.

Design/methodology/approach

The study integrates the technology acceptance model (TAM) and adoption of innovation framework to develop predictions of online banking acceptance. It distinguishes between innate consumer innovativeness, a generalized personality trait, and internet‐domain‐specific or actualized innovativeness in order to explore consumer characteristics' impact on adoption. Data are analyzed using logistic regression.

Findings

While results confirm the positive relationship between internet related innovativeness and online banking they also surprisingly show that general innovativeness is negatively related to online banking.

Research limitations/implications

Results may or may not differ according to whether consumers are using online, telephone banking, electronic funds transfer (EFT) or direct bill payment. Our results may generalize to telephone banking and EFT as these products, like online banking, require an active consumer role in using the product. With direct bill payment, consumers need only set up the process initially and then monitor it on a semi‐regular basis.

Practical implications

Findings suggest that the type of consumer innovation matters in understanding the adoption of e‐banking processes. This supports the notion that online shoppers are distinct from traditional non‐online shoppers or highlight the unique nature of purchasing financial versus non‐financial products. Banks offering e‐banking need to recognize the importance of internet‐specific consumer innovation characteristics.

Originality/value

This paper closes a research gap as the model tested provides insights toward understanding the consumer‐based phenomenon of e‐banking, and serves to evaluate the TAM in this context. In contrast to previous research the study utilized an actual measure of e‐banking adoption versus a measure of intention to use the technology.

Citation

Lassar, W.M., Manolis, C. and Lassar, S.S. (2005), "The relationship between consumer innovativeness, personal characteristics, and online banking adoption", International Journal of Bank Marketing, Vol. 23 No. 2, pp. 176-199. https://doi.org/10.1108/02652320510584403