Customer Value Perception toward Use of Mobile Banking Applications

Abstract

Mobile banking (m-banking) is one of the most widely used applications and innovative banking services in the past decade. However, the adoption rate of m-banking in developing countries is low and still has potential for growth. We explored factors and value perceptions of clients toward the use of m-banking applications. A conceptual model is presented using the Technology Acceptance Model (TAM) and Uses and Gratification Theory (UGT). The tested variables are Perceived Usefulness, Perceived Ease of Use, Social Integrative, Personal Integrative and Hedonic Benefits. 278 valid survey responses were collected from Iranian and Turkish clients. Multiple regression analysis indicated that Perceived Usefulness and Social Integrative Benefit are the key drivers in both Iran and Turkey, but Hedonic Benefit is only significant in Iran. The results contribute to literature by integrating UGT and TAM and to participate as it enables banks to better design services and to improve customer experience.

Why do customers value m-banking apps? A stimulus-organism-response perspective

“…Although the hedonic dimension proved not to be a significant predictor of overall perceived value, it is significantly determined by gamification features of m-banking, which positively influence perceived entertainment (H2). These results could be explained by the notion that gamification elements can cause users' entertainment (hedonic value) (Bidar, 2018), which is not a must-have benefit in m-banking services. Therefore, its contribution to the overall perceived value is surpassed by the more relevant value attributes, i.e.…”

“…Namely, ubiquity proved to be significantly related to the perceived usefulness of m-banking service, which contributes to understanding the utilitarian aspects of perceived value (Pihlström, 2008). Gamification is related to entertainment and hedonic aspects of perceived value (Bidar, 2018), although the hedonic value is not conducive to the overall perceived value. This outcome might be because m-banking operations are often considered high-involvement services, requiring greater reflection and evaluation.…”

“…Integrating game attributes into a mobile app creates an entertaining and fun-filled setting, leading to excitement about new features and ongoing usage of m-banking (Çera et al, 2020). Perceived gamification enhances the clients' perceived SJME value (Tan and Hsueh, 2017), mainly through experienced entertainment and hedonic benefits (Bidar, 2018). Therefore: H2.…”

“…In addition, gamification, emerging as a new phenomenon, refers to game elements in non-game contexts (Rodrigues et al, 2014). As Baptista and Oliveira (2017) recommended, banks should balance both utilitarian and hedonic features in their service offer, using gamification as an effective tool for enhancing the hedonic value (Bidar, 2018).…”