CONSUMERS’ PERCEIVED RISK AND ITS EFFECT ON ADOPTION OF ONLINE BANKING SERVICES

Abstract

Although online banking services have gained a lot of attention, many consumers are still not willing to use them. Since online banking services can be a competitive advantage for banks, it is useful to know the core factors affecting the use of online banking services. This study sheds light on different aspects of consumers' perceived risk to analyses the influence of total perceived risk and consumers' willingness to embrace innovation on online banking services adoption. Results of the study show that the consumer's total perceived risk and willingness to accept innovation both have a direct effect on online banking services adoption, while willingness to adopt innovation has no significant influence on the consumer's total perceived risk. Meanwhile, it seems that social perceived risk cannot increase the consumer's total perceived risk. Beside these, the extent of other consumers' perceived risks is forecasted by the execution of a neural network. This forecasting helps to understand whether other consumers that have same feeling as members of study society are willing to adopt online banking services or not.

An Exploratory Investigation of Consumers’ Perceptions of the Risks of Online Shopping in Jordan

“…This may at least partially be ascribed to the fact that much of the previous IS research has treated risk perception as a one-dimensional construct (e.g., Gefen et al, 2002;Bélanger & Carter, 2005;Curran & Meuter, 2005;Kesharwani & Bisht, 2012). However, some IS researchers, recognizing the role that perceived risk plays in the adoption and acceptance of new technologies, have begun to explore different approaches to perceived risk, which is increasingly viewed as a multidimensional concept by technology adoption scholars (e.g., Zheng et al, 2012;Farzianpour et al, 2014;Farzianpour, Dargahi, Hosseini, & Hosseini, 2011;Zhang et al, 2012;Almousa, 2014;Dai et al, 2014). Cox (1967) was the first to introduce a multidimensional measurement of perceived risk.…”

“…However, with the appearance of new channels such as catalogue, telephone and, most importantly, online shopping, there arose an urgent need to include other types of risks reflecting the uncertainty associated with these channels (Zheng et al, 2012;Noort, Kerkhof, & Fennis, 2007). Consequently, IS researchers began to explore and propose new dimensions of perceived risk, including delivery risk, privacy risk, security risk and after-sale risk, using different approaches, such as integrating perceived risks with existing adoption and acceptance theories and models used in IS studies, including TAM and DOI (e.g., Almousa, 2014, Dai et al, 2014Lu et al, 2005;Zhang et al, 2012;Farzianpour et al, 2014). Other researchers have also studied directly the role of perceived risk in technology acceptance (e.g., Zheng et al, 2012).…”

“…Following this proposition, researchers within the consumer behavior field began to acknowledge the role that perceived risk plays in consumers' decision making (Jacoby & Kaplan, 1972;Peter & Tarpey, 1975). This view was extended to researchers in the field of information systems (IS), in their attempts to understand factors affecting intention to use new technologies (e.g., Jarvenpaa et al, 1999;Van Den Poel & Leunis, 1999;Bhatnagar & Ghose, 2004;Doolin, Dillons, Thompson, & Corner, 2005;Drennan, Mort, & Previte, 2006;Kuhlmeier & Knight, 2005;Slyke, Belanger, & Comunale, 2004;Farzianpour, Pishdar, Shakib, & Toloun, 2014). Accordingly, most of the current literature recognizes a significant relation between users' willingness to adopt new technologies and risk perception, in areas such as online shopping, e-services, and e-banking.…”

Development of Factors Effective in the Success of Green Supply Chain Management

“…International fluctuating environment and intense competition have brought about the organizations to consider more carefully about the approach for managing their resources and maintain the consequent competitive advantages (Farzianpour et al, 2014). Nowadays, environmental activities play a strategic role in product design planning and working process, senior managers' support for the organization and manufacturing activities and also, influence the organization's manufacturing performance (Tseng, 2011a;2011b;Tzeng and Opricoric, 2003;Farzianpour et al, 2013a).…”

A Survey of the Effect of Social Media Marketing on Online Shopping of Customers by Mediating Variables

“…According to the findings of the studies, more than half of pioneer companies' income is via electronic selling of their products [1] [2]. The benefits of usage of customers of e-shopping are based on developing the business, increasing sale and income, reduction of costs, indirect relationship between buyer and seller, increasing speed of affairs, reduction of costs of advertisement, relationship with customer or other tradesmen and it is provided at any time or place [3] [4]. Despite the researches in identification of effective factors on deciding to use e-shopping of cognitive, attitude and value variables, the questions increasing the decisions of customers to e-shopping are not answered completely [5] [6].…”