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

Factors Affecting Consumers’ Continued Use of Internet Banking: Empirical Evidence from Australia Name Institution Table of Content Page Abstract……………………………………………………………………..3 Introduction………………………………………………………………….3 The paradigm assumptions evident in the article…………………………….4 Summary of research approach (es) taken in the article………………………8 Critiques ……………………………………………………………………..11 References……………………………………………………………………12 Abstract Marketing strategies that are adopted by any company determines the level of that company’s dynamic capabilities since marketing the organizational products and services has competitive links to the company’s success. Internet banking has been on the rise within the recent marketing activities of the commercial organizations, where banking processes is made easy for customers at any time. In this case, internet banking experience has continuously been embraced by many customers globally (Black, p.390-9). However, the pattern of the use of internet banking in Australia has prompt8d some research. In a study to investigate the factors affecting the customers’ continued use of internet banking in Australia, it was found out that more focus has been put on the consumers’ reception or adoption of the internet banking system, while forgetting to evaluate some of these determining issues to their continued use of the system itself. This research analyses the journal article by Adapa & Cooksey (2013) that looked into the factors Affecting consumers’ continued use of internet banking, with empirical data from Australia. Introduction According to Adapa & Cooksey (p. 2-5), in order to exert a competitive advantage over other financial institutions, an organization need render their competitive environment so strategic in terms of better distribution strategies as well as communicative strategies in deliver effective products and services. This assertion is strategically logical since the best marketing policies depend on how constant the customers are kept in contact with and how the product and services of a financial institution use technology for efficiency purposes. With the rising advancement, customers can be reached everywhere with the shortest opportunity available to marketers. Adapa & Cooksey article is a very concerned consumer review study that logically explains the background reason why the decision to perform internet banking is at the consumers’ discretion and indicates criticality of electronic interactions to consumer demand. This report seeks to examine the Factors Affecting consumers’ continued use of Internet Banking: Empirical data from Australia article by Adapa & Cooksey (2013) in accordance to the research issues that are addressed on the study/ most importantly, the report revolves around different the assumptions made, research question, methodology, the study of the results section of the study. Through critical analysis of the qualitative and the quantitative research paradigms of the study, clear analysis of the factors influencing consumers’ continued use of internet banking in Australia are clearly examined. There has been an overlap in the use of mixed methodology in research due to the emergence of cross boarder studies as well mixed styles of evaluating difficult situations, large data, and generalized information from single method analysis of research. This report, therefore, seeks to explore the assumptions, strengths, and weaknesses of all three research paradigms; qualitative, quantitative, and mixed methods as they are considered in a research study. The paradigm assumptions evident in the article According to Khun’s (1970), paradigm assumptions are the underlying assumptions that researchers use to illustrate procedures, methods, as well as theoretical points in research articles. The distinctiveness of the paradigms reduces the prospects of mixing the qualitative and quantities assumptions in trying to explain certain issues in research. In line with the intellectual structures upon which the article is based, this report looks into the philosophical paradigm that have been used in social science inquiries, the positivism and post-positivism in order to analyze the research approach of the Adapa & Cooksey (2013)article on the factors affecting consumers’ continued use of Internet Banking in Australia. Quantitative Research Assumptions: The assumptions involving the quantitative analysis of the article tend to generalize on the facts and causes of the factors affecting the consumer internet banking in Australia. The quantitative assumptions in research tend to prove that fact, experience, and situations should be quantifiable and measurable so as to have a clear report on the phenomenon. Arguably, it is logical to validate, generalize and deduce what is measurable since statistical realities are backed by variables that are independent and also dependent on measurable data and experience. According to the article (Adapa & Cooksey, p.6), there is no regard to the subjective states of a situation or of individuals. For instance, when it states that from the bank’s perspective, maintaining and retaining their existing customer base is always more profitable than trying to acquire new customers. This assertion is very subjective to facts regarding banking internet marketing strategies, not the customers. However, it has no rooted background on the individualistic or situational background why banking industries tend towards technological orientations, especially in Australia (Black, et. al, 2002). Through the hypothetical analysis of the influence of the money factor as one of the factors affecting the trend of internet banking among consumers, the article becomes more discrete when the asserts that the emerged components ‘perceived safety’ and ‘perceived specialty’ of the channel factors would enhance consumers’ usage of internet banking on a continued basis. Through the aspects of quantitative research and paradigms, Burns, (2000) argues that positivism and beliefs in the benefit of hypothetical-deductive procedures are defended. For instance, the author of the article summarizes the fact that out of the model used in analyzing the component of consumer use of the internet banking, some facts comes out. One of them being, consumers clearly weigh up the benefits and costs associated with various banking service delivery channels and tend to use the most profitable one. The text shows the positivism and optimism of the hypothetical results of quantitative paradigm as used in the article. Analysis of the perceived safety, money value issues, social factors, and perceived specialty in the article analysis section tend to that the quantitative inquiry as used in the article assumes that there is a superior way of knowing, understanding and predicting human experiences and that the positivistic scientific method rules must be adhered to or the researchers and their findings are disregarded. Qualitative paradigm: Qualitative assumptions are based on subjective realities and that social environments are created from personal analysis and interpretation. In trying to get the content of the qualitative analysis, some assumptions are made in the article. For instance, by deducing that, understanding value perceptions from the customer perspective is relevant for managing and supporting both the bank’s and the customer’s value creation processes, the author tries to gain more qualitative ground in order to make the article relevant. The text is based on the rooted on constructivism rather than positivism, a clear component of qualitative paradigm. According to the article (Adapa & Cooksey, p.22), perception, value for money, technological advancements, and marketing strategies come out as the key proponents of the consumers’ continued use of internet banking in Australia. There is a qualitative assumption however, when it is asserted in the article that, consumers rely on safety, specialty, and usability among other factors without considering the loyalty aspect that a consumer may have on a specific banking institution. It is therefore true that the qualitative assumptions used in this article ignores generalization of the reality but tend to rely on the description as well as understanding of the methodology adopted in extracting the data pertaining to the factors, such as perception, technology, and marketing, that influences the consumers’ continued use of the internet banking in Australia. Mixed research paradigm: when the article analyses the content of the information regarding the factors affecting consumers’ continued use of the internet banking in Australia, the central focus in this case is the qualitative analysis. However, the analysis that needs numerical analysis of information in order to make viable and reliable numerical deductions rely on the quantitative analysis. In this article, Adapa & Cooksey (2013) employs both the qualitative and quantitative assumptions in order to make the analysis of the factors affecting consumers’ continued use of internet banking in Australia more understandable and relevant to the given theories behind internet banking. In the methodology section, the author of the article employs statistical strategic designs in order to analyze the data, especially pertaining to the perception, safety, technological factors, social factors, demographic factors, channel, and the value for money factors in order to make statistical analysis of their impacts to consumers. By using statistical influence of one or more variables so as to create a correlation relationship between two or more variables, the article uses a mixed assumption approach. In this case, some qualitative assumptions are used to explain the quantitative assumptions I the texts. For instance, when Adapa & Cooksey (p. 23) asserts that consumers in an online environment tend to use the trialability feature to test whether transactions can be conducted safely and securely, the observable paradigm in perception ignites the qualitative and quantitative component of the reality backing up this assertion. The quantitative paradigm is a better method of relating issues, especially pertaining to consumer demand since it does not give the author any chance to divert from what is being studied. Notably, quantitative assumptions bear their strength from this proponent because this article is kept in focus to the direct and indirect factors, such as perception, technology, and other socio-economic factors that influence the consumers in order to continue using internet banking approach in their banking activities in Australia. Through the methodology, the procedures, research rules, and principled analysis, the authors, Adapa & Cooksey are kept in strict focus to come up with reliable and expressible data that can help one to understand why there is an increase in the use of internet banking and it’s continual in Australia. Through this article, the quantitative paradigm gives solid and direct answers to the research questions, unlike qualitative paradigm that relies heavily on opinions and common sense answers as argued by Ratnesar &  Mackenzie (2006). Summary of research approach (es) taken in the article Consumer demand is a special factor to analyze in this dynamically product-demand oriented business world. Analyzing the factors that influences the consumers to continuously use the internet banking strategy in their banking demands is the sole stakeholder in the research to be the consumers. Through the analysis of consumer behavior, the components of these factors come into light and help solve the research problem in the article. Adapa & Cooksey (2013) makes it clear from the introduction that the focus is one the development of the conceptual framework based on theoretical models related to the acceptance of technology and diffusion of innovations theory as well as how they affect consumer demand. Based on the research methodology adopted in the article, it is clear that the article purposed to pursue a purposive approach by using both the qualitative and quantitative analysis of the factors affecting the consumers’ continual use of internet banking in Australia. From the empirical aspects, the authors of the article, Adapa & Cooksey (2013), employs the research approach in order to make the hypothetical theories pertaining to factors of consumer demand of the banking services and product more relevant to the society. In response to the literature gap that exist in the integration of theory testing and identification factors that influence the continued use of internet banking in order of importance to consumers, the article’s main objective was based on development of the conceptual framework based on theoretical models related to the acceptance of technology and diffusion of innovations theory. Notably, drawing all the relevant variables and factors that can possibility amount to the consumer behaviors in the banking sector of the Australian economy, Adapa & Cooksey (2013) brings up their research design to suit the theoretical and practical models of the study. Research methodology: the methodology adopted focused more on the research design strategy that emphasized on the use of empirical data in extracting relevant information pertaining to consumer demand in the banking sector. The article has a well utilized explorative study design that explains deeply the topic of study. Basically, the sole purpose of research is to actuate theory practically rather than overreliance on opinion, thus making it more scientific. By using both the primary and secondary data, the authors of this article embraces research strategies that is deemed adequately appropriate in presenting proper information on the factors affecting the consumers’ continued use of the internet banking in Australia. The response rate of the research seemed comprehensive, and considering the sampling technique used, comprising a sample of 372 internet banking users, the research provided a large sampled data that reduces the effects of data bias. The ethical dimension of the article centralized on the key factors affecting consumer internet banking, and thus an opinionated analysis that could not invade the ethical dimensions of people. In this case, and by getting the help of secondary data as well from other studies, the article was well researched within the ethical spectrum of research In addition, the result of the analysis of the extracted information after testing the data for accuracy proved that the 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 article is concluded that the knowing the relative importance of the various components of value creation and value perception of the customers are key to developing marketing strategies, especially in the Australian banking sector. In bid to control and minimize losses, the marketing segments of the banking institution should invest heavily on enhancing their customer loyalties and satisfaction by offering comprehensive services. Adapa & Cooksey (2013) conclude the article by arguing that the relevant importance and hierarchical impact of the various predictor variables on consumers’ continued use of internet banking would help bank marketers to effectively segment customers based on the motivations that drive their online banking behavior, rather than on traditional methods. Critiques The article is an example of a good research paper that singles out the socio-economic factors that affect consumer demand in relation to the banking sector, in Australia. However, the article was marred with some limitations that tended to reduce its real objectives. One of these instances is when the article has little inferences on the applications of the survey type of research. The data that was used for testing the conceptual models were only obtained from cross-sectional manner from a single source. This would not yield comprehensive analysis on the subject matter of the topic. In this case therefore, the data collection method employed in this article had the potential for single source bias. In addition, there were instances of the use of self-report measures associated with consumers’ perceptions of internet banking. Such measures have the potential to confound findings due to common method variance. The other limiting issue is one making generalization on the consumer behavior with respect to the banking sector analysis. Considering that the study has been conducted in Australia and specifically targeted the retail banking consumers who were internet banking users and non-users, resultant findings may vary with the application of the study to other banking contexts and other countries. References Adapa,S. & Cooksey, R.(2013). Factors Affecting consumers’ continued use of Internet Banking: Empirical evidence from Australia; Australasian Journal of Information Systems, Ratnesar, N. & Mackenzie, J. (2006). 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