Understanding the Determinants of Service Channel Preference in the Early Stages of Adoption: A Social Cognitive Perspective on Online Brokerage Services*

Abstract

In today's increasingly technology-mediated world, individuals are often confronted with a decision of whether to obtain services through online, self-service technologies or traditional, nontechnological alternatives. Understanding the mechanisms by which consumers choose among these competing service channels represents an important concern for organizations, consumers, and Web site designers. This study develops a research model based on Social Cognitive Theory to explain and predict service channel preferences that arise in the early stages of adoption, before a consumer conducts business using a particular channel. The model is subsequently tested in the brokerage services context, using observations obtained via survey. Given the growing popularity of online investing combined with the challenging prospect of making optimal decisions in an inherently risky environment, the context offers insights of practical and theoretical importance. The results suggest that task-specific self-efficacy beliefs serve as the activating mechanism kicking off a chain of psychological events that entice consumers to favor a particular service channel. Higher levels of self-efficacy induce individuals to prefer the online approach. In addition to its direct effect on preference for the online service channel, higher levels of self-efficacy influence one's propensity to take risks and expectations of performance-oriented rewards, which, in turn, sway consumers to favor the online service channel. Furthermore, self-efficacy and perceptions concerning the credibility of online information interact to affect service * This article is dedicated in memory of the corresponding author's mother, Margaret A. Looney, who recently lost a courageous battle with cancer. The corresponding author would like to thank Ron and Judy Paige, who provided resources and funding for this research through a faculty fellowship. The authors sincerely appreciate the insightful comments of the editors and reviewers on earlier versions of this manuscript. † Corresponding author. 822Service Channel Preference in the Early Stages of Adoption channel preference. Consumers are more likely to prefer the online service channel when they view themselves as capable and perceive online sources to be credible. Implications for theory and practice are discussed in light of the findings.

The Evolution of the Field of Human Resource Information Systems: Co-Evolution of Technology and HR Processes

“…Researchers have begun to investigate the role of technology and investing experience in online investing (Looney, Akbulut, & Poston, 2008), but more research is needed to help organizations better develop tools to assist employees in managing their 401K.…”

The effects of hedonic/utilitarian expectations and social influence on continuance intention to play online games

“…SCT has been widely accepted and applied in the IS literature (Chang et al, 2011;Chiu et al, 2006;Compeau and Higgins, 1995a, b;Hsu et al, 2007;Johnson and Marakas, 2000;Lam and Lee, 2006;Huang, 2008, 2010;Looney et al, 2006Looney et al, , 2008Lu and Hsiao, 2007). Recent studies applied SCT to study knowledge sharing Huang, 2008, 2010;Lu and Hsiao, 2007), virtual community (Chiu et al, 2006;Hsu et al, 2007), continuance intention to share information in blogs (Lu and Hsiao, 2007) and internet use among senior populations (Lam and Lee, 2006).…”

The death of personal service: Will financial services customers who serve themselves do better than if they are served?

“…However, it also confi rms the risk that the more effective they believe they are, the greater the risks they will take. 16 Research shows that information quality and system quality infl uence customer satisfaction, whereas information presentation has little effect on customer satisfaction. 17 Getting the right information reliably to the consumer is more important than how it looks.…”