Online Banking Market Research

611
-1

Published on

This report focuses on choosing a product, brand, or service and independently running research on the one chosen. We chose online banking to help online banking services gain an understanding of the usage of their consumers. We developed one main research question with five categories/independent variables. To quantify each of these categories, we created an 18 question survey, which was broken into six categories: usage and the five independent variables (Demographics, Convenience, Security, Accessibility, and Financial Commitment). By having a usage block, we used those questions to analyze our data on how the dependent variables affect usage (independent variable). We ran frequency tests and statistical analyses to look at the trends and relationships between the variables. With this information, we created a report, which presents our reasoning for our research objective and the results from our data analysis. The report contains an introduction showing the reasoning for our project and why it is important. The methods look at how we created our research objective and why we chose the dependent variables we did. The results section shows results and interpretations of the data analysis. Lastly, the conclusion points out the key findings discovered throughout the research process. We feel that this project is important in finding which factors affect the usage of online banking backed up by factual, statistical data.

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
611
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Online Banking Market Research

  1. 1. Online BankingCaylene Cosgrove, Leah Gross, Hannah Heller, Erin Kennealy, Kannetha Koy MKTG: 3711 Sandeep Bhowmick
  2. 2. EXECUTIVE SUMMARYThis report focuses on choosing a product, brand, or service and independently running researchon the one chosen. We chose online banking to help online banking services gain anunderstanding of the usage of their consumers. We developed one main research question withfive categories/independent variables. To quantify each of these categories, we created an 18question survey, which was broken into six categories: usage and the five independent variables(Demographics, Convenience, Security, Accessibility, and Financial Commitment). By having ausage block, we used those questions to analyze our data on how the dependent variables affectusage (independent variable). We ran frequency tests and statistical analyses to look at the trendsand relationships between the variables. With this information, we created a report, whichpresents our reasoning for our research objective and the results from our data analysis. Thereport contains an introduction showing the reasoning for our project and why it is important.The methods look at how we created our research objective and why we chose the dependentvariables we did. The results section shows results and interpretations of the data analysis.Lastly, the conclusion points out the key findings discovered throughout the research process.We feel that this project is important in finding which factors affect the usage of online bankingbacked up by factual, statistical data.INTRODUCTIONWe decided to research an aspect of a service for our marketing research project. Our main
  3. 3. objective was to focus on online banking and how different variables affect usage of onlinebanking. Our client (online banking services) needs this project because knowing how each ofthe variables affect usage would assist in how to market to consumers and what changes theycould make in order to increase usage of their service. We developed one main research questionthat would allow us to look at how usage (DV) is affected by demographics (A), convenience(B), security (C), accessibility (D), and financial commitment (E). To figure out how theseaffected usage we developed three questions in our survey. Our first question was Q12 (I useonline banking for...) where respondents could mark all of the different ways that they usedonline banking. Our choices for this were viewing online statements, paying bills, transferringmoney, not using online banking, and other. We wanted a likert scale here so we could get ageneral idea of the most common ways that online banking is used. Our second question Q16was (How frequently do you access your online account per week) where respondents were ableto fill in a blank space which made this question qualitative. We wanted to use a qualitativequestion here because we knew that all of our respondents would have very different answersand we did not want to limit them. Our final question about usage was Q19 (How much time doyou spend when accessing your account online [minutes per visit]) where survey respondentscould move a bar on a scale which had minutes 0-60. We thought that a scale question would begreat here because respondents still have a wide variety of choices but were are able to pullconcrete answers from their responses. The values we are providing for online banking serviceswould be factual data that proves how they can predict usage. By using t-test samples, ANOVAsamples, and regression samples, we are providing them with information that can predict thebehavior between certain variables and usage. Having this information would allow them tochange their business strategies so they could increase the amount of the usage amongst theircustomers. Examples of how they could change their strategies involve marketing to a specificsegment, offering online uses for different devices, promoting the security of the service, andoffering more convenient ways to access accounts. The changes they make must be backed up bydata; that is why our project is so important. Without our information, the service could not makeeducated changes that would be successful.A. Demographics: The first category of our research question states, “How does demographicsaffect online banking usage?” The independent variable (IV1) is demographics and the
  4. 4. dependent variable (DV1) is usage. We decided to use demographics as an independent variablebecause we felt it would allow us to know who our survey respondents are and classify them intogroups. We decided to choose gender, age, and technology orientation as our main variables tomeasure demographics. We felt gender was a simple variable that would tell us if usage wasaffected by males or females (Q17 [Please mark your gender]). We felt age was an appropriateclassification method because we were curious if age affected usage since online banking is anewer technology (Q22 [Please type in your age]). The age question was a ratio question thatallowed participants to just enter in their exact age. Technology orientation was an importantvariable to include since technology orientation could have an effect on whether users use onlinebanking, how much they use it, and how they use it. We initially asked three individual questionsusing a likert scale based on how comfortable consumers feel with technology, curiosity oftechnology, and feelings about having the newest technology (Q20 [Please mark your level ofdisagreement/agreement: “I feel comfortable with technology,” “I am curious about newtechnology,” “I like to have the newest technology.”]). These questions combined would tell ushow oriented the consumers are with technology.B. Convenience: The second research category was “How does convenience affect the usage ofonline banking?” This category was chosen to see if respondent’s convenience to online bankingaffected the usage of online banking in general. Constructs from this research question includeusefulness and the importance of certain aspects of online banking. As mentioned, theindependent variable for usage is (IV2). Our questions from the survey relevant to convenienceare Q5 (Please mark how important these statements are to you when using online banking[direct deposit, transfers, online statements, convenience, viewing transactions]). We wanted touse this question to see how important convenience is to the respondent in terms of each aspect.The other question relating to convenience was Q20 (On a scale of 1-10, how useful is onlinebanking to you? [Scale ranging from 0-10 based on usefulness]). We chose to use a rankingquestion to directly ask the respondent what they thought about the usefulness of online banking.C. Security: Our third research category was “How does online/internet security affect usage ofonline banking?” This is our third independent variable (IV3). The reason that we chose thisquestion was to see if feelings about online security affect a consumers use of online banking.
  5. 5. Our questions from the survey relevant to security are Q9 (I feel secure when using onlinebanking). The question had five answers to choose from on a likert scale from “StronglyDisagree” to “Strongly Agree.” We used this simple question to get a general idea on how ourrespondents feel about internet security when accessing their online banking accounts. The otherquestion relating to security was Q19 (If any, what concerns do you have about security whenusing the internet). We chose to use an open ended question here because survey respondentshave different ideas about what security is and this allows them to share exactly what they see asonline security concerns. We also did not want to use any keywords that would influence theirresponses.D. Accessibility: The fourth part of our research objective was “How do the methods that peopleuse to access their accounts affect online banking usage?” This is our fourth independent variable(IV4). We chose this question to see if the way in which respondents access their accountschanges their online banking usage. The questions relevant to accessibility in the survey were Q8and Q22. Q8 (Which of the following do you use most often to access online banking?[Computer, Mobile Device- Internet, and Mobile Device- Text Messaging]) told us how therespondents access their online banking. We chose to use computer, mobile device- internet, andmobile device- text messaging options because they are some of the most common ways of usingthe internet. Q22 (I access my account… [At the bank, Online, Phone, and ATM]) was used togather information on how often respondents use each option and which one is used themost/least.E. Financial Commitment: The final part of our research question was to investigate “How dodifferent levels of financial commitment affect the usage of online banking?” Financialcommitment is our fifth and final independent variable (IV5), and we chose financialcommitment to understand the level of financial commitment of our respondents and how itaffects consumer’s use of online banking. Q4 (How do you usually pay your bills?) tells uswhether respondents pay bills online, write checks and drop off or send through the mail, payover the phone, or do not pay bills. We also wanted to know what kinds of bills our respondentspay on a regular basis so we asked Q24 (Please check all of the types of bills you pay). This is amultiple choice multiple answer question so respondents can check all of the options that apply
  6. 6. to them (loans, utilities, rent, credit/charge cards, phone/cable, or if they do not pay bills).METHODSIn order to quantify and test our research questions, we created an online questionnaire with 18questions using Qualtrics (Appendix B). Qualtrics is a web based, research surveying softwarethat creates an anonymous online link that sends participants to the direct survey link. Wedistributed the survey via email and Facebook. The survey opened October 31 and closedNovember 22. The questionnaire was focused on usage (DV) and our five main categories (IV)(Demographics, Convenience, Security, Accessibility, and Financial Commitment). We carefullyselected our questions based on themes within our research question and information weobtained through our focus group (Appendix A). We only chose themes that seemed applicableto our main objective. We created blocks for each independent variable and they each haddifferent forms of questions so we would not get the same answers for each question. Forexample, in the security block we chose use a likert scale measuring secureness (Q9) and anopen-ended question (Q19) in order to get more of a variety of answers. Therefore, we could usespecific data to answer our research question and have some broad information that could help usin deciding what information was relevant to analyze.Demographics: To address the category of demographics, “How does demographics affect onlinebanking usage?” we created three questions. First, we felt having gender was an importantvariable to include so we included a simple question asking the responder their gender (Q17)with 1 = male and 2 = female. Next, we asked a simple ratio question asking for the respondent’sage (Q22). We decided to make it a ratio question instead of an interval question so we could useit as a ratio question when analyzing our data in SPSS. We ended up creating groups from theinformation in order to analyze the information in an ANOVA table. Lastly, we felt it wasimportant to know how technologically oriented our respondents were. We used three statementswith likert scales in which the respondents marked their level of disagreement or agreement.Using a likert scale allowed us to have extremes and a neutral point. We felt by having threestatements, we could average their responses to get a better analysis rather than only asking onequestion. When analyzing, it allowed us to state where respondents were placed on the scalefrom low technology orientation to high technology orientation. We used 3.99 as our neutral
  7. 7. point and rated participants as having less orientation if their average of the three questions wasless than 3.99 and having more orientation if their average was greater than 3.99. We chose 3.99because it seemed to divide the data more evenly and not create skewed data.Convenience: To address the category of convenience, “How does convenience affect the usageof online banking?” and its two constructs (usefulness and importance), we developed twoquestions. We decided to use Q5 (Please mark how important these statements are to you whenusing online banking...) would be a good measure of the importance construct. It takes theconceptual definition of convenience and quantifies it with likert scale data. Respondents used afive point scale to rate their importance with the statement provided. This is important toquantifying this construct because it involves respondents to answer truthfully what they felt wasmost convenient for them in terms of convenience to online banking usage. The following is anexample of this scale.As for the other question to measure usefulness, Q20 (On a scale of 1-10, how useful is onlinebanking to you?) we used a likert scale as well. We used a scale from very useless to very usefulto determine the respondent’s convenience of online banking usage. This question helped usunderstand if the respondent is proactively using online banking and what their opinion on it is.The following is an example of this scale.Security: To address the category of security or “How do security concerns affect online bankingusage?” we used two different questions. Our first question for this category was Q9 (I feelsecure when using online banking). Respondents had the choice of marking an answer from“Strongly Disagree” to “Strongly Agree” on a likert scale that had five points. We felt that the
  8. 8. use of a likert scale was appropriate here because we could have specific data that would help usto answer this category. The likert scale we used also gives the respondent a choice of a neutralpoint because we felt the respondents could honestly feel neutral about this question. The otherquestion that we asked in this section was Q19 (If any, what concerns do you have about securitywhen using the internet)? For this question we left the answer option open so survey takers couldtype in whatever answers they felt were security concerns. We knew that our respondents mayhave different ideas about what they consider concerns and we did not want to limit their choicesof what they felt were concerns. This also helped us to know of additional concerns regardingsecurity that we had not previously anticipated.Accessibility: To address the category of accessibility, “How do the methods that people use toaccess their accounts affect online banking usage?” we used two different questions. The firstquestion for this category was Q8 (Which of the following do you use most often to accessonline banking? [Computer, Mobile Device- Internet, Mobile Device- Text Messaging].Respondents had the choice of marking the answer that best suited which method they used themost. We used a nominal scale, in the form of multiple choices, single answer question. We alsowanted to know in what ways respondents accessed their accounts and how often for eachapproach (Q22). This question takes the ways of access and quantifies it with likert scale data.Respondents used a five point scale to rate their usage rate with the statement provided. It isimportant to measure this construct because it allows respondents to answer truthfully on whatways and how often they are accessing their accounts.Financial commitment: In order to understand our fifth category, we asked two questions tocollect information about our respondents financial commitment. First, we asked how therespondent usually pays their bills (Q4) to understand the methods our respondents use, whetherthat is writing checks and sending the bill through the mail, using online bill pay, or paying billsover the phone. This survey question (Q4) used a nominal scale, in the form of a multiple choice,single answer question. We also wanted to know what types of bills people pay, so we askedrespondents to check all the types of bills that they pay (Q24). The scale was nominal, withmultiple choice, multiple answer options of loans (student’s mortgage, automobile loans, etc.),utilities, rent, credit/charge cards, phone or cable, or not paying bills. We asked these questions
  9. 9. to analyze whether respondents who pay certain types of bills or pay bills using differentmethods are more likely to use online banking. We then wanted to see which forms were usedthe most.RESULTSDemographics: For demographics we started out by using frequency descriptives. Our surveyresults showed there were 64 (66.7%) female participants and 32 (33.3%) male participants. Forour age category, we originally asked about age with a ratio question. Once we got the results,we divided the ages into categories. Our categories included: <9, 10-19, 20-29, 30-39, 40-49,>50. The level with the highest frequency was the age group of 20-29 with 76% of respondentsin that category. Our last demographic variable looked at technology orientation. First, weaveraged the answers to the three questions involving technology (Q20). The second step wetook was changing the variables by participants less than 3.99 defined as less technologyoriented and participants greater than three defined as more technology oriented. We chose 3.99as our cutoff since it was just slightly under the average (4.06) and could still include the 20participants that entered 4. Our results showed that 33.3% were less oriented and 66.7% weremore oriented.
  10. 10. Once we did our frequency descriptives, we looked at how these variables affect usage. First, wedid an independent sample t-test that compared gender and usage: frequency per week andminutes per use. Gender did not have an effect on either of them because we accepted the nullthat the averages for the male and female were the same for both (Frequency per week sig =.347, Minutes per use sig = .831). Because both sig values were greater than .05 (alpha) weaccepted the null showing that the averages of the males and females were the same at the 99thpercentile. Because we categorized age into six categories, we had to do an ANOVA test to testthe categories and usage. Along with gender, we found out age categories did not have an effecton usage because we accepted the null that the averages of each age level were equal (Frequencyper week sig = .255, Minutes Per Use = .264). Since both of the sig values were less than .05(alpha) we accepted the null showing that the average all of the age levels were the same at the99th percentile. Next, we did an independent sample t-test that compared technology orientationto access frequency per week and the amount of minutes per use. First, we took out the outliersfrom each group in order to have more distributed data. Our results showed that the two groupsdid not differ when it comes to access frequency (sig = .734) or minutes per use (sig = .211).Based on the fact that we accepted the null for all the demographic variables, online bankingdoes not have a specific demographic segment. This is helpful to know for online bankingservices because it shows that they can advertise more broadly since gender, age, and technologyorientation do not affect the amount of usage of online banking. We feel our sample size was alimitation. In our total survey, we only had five less oriented participants. If we had a largersample size, we believe we would have found that more people would be less oriented and wewould be sure to get different averages between the less oriented and the more oriented.Therefore, we believe we had a sensitive small sample and think there would have been a
  11. 11. difference between the technology orientation groups if we received more responses.Convenience: The second defining category in our research is convenience. We best describedthis category with two independent variables, Q5 and Q20. Question 5 asks respondents “Pleasemark how important these statements are to you when using online banking.” This is a greatmeasure of convenience since it best illustrates the extremes of the important uses of onlinebanking. We started defining the category by beginning with frequency descriptives related toconvenience. Our survey results show that 48% of respondents find online banking extremelyimportant and 46% find it very important. Only 6% of respondents reported that they foundonline banking as either very important or not at all important. Another frequency descriptivewas run in regards to usefulness of online banking, Q20. Question 20 asks respondents, “Howuseful is online banking to you?” This measures convenience by illustrating the respondent’slevel of usefulness regarding online banking. Our survey results show that 72% of respondentsfind online banking very useful, 16% find it useful, 3% find it somewhat useful; while 8% ofrespondents either felt neutral, useless, or very useless toward online banking.After running the descriptives of our construct toward convenience of online banking, we lookedat how the variable of convenience affects usage in online banking. We ran an ANOVA test todetermine the level of convenience when using online banking. Our results show thatrespondents who find online statements useful have a sig of .015. Since the sig is less than .05(alpha), we rejected the null. This means that online statements do have an effect on the
  12. 12. convenience when using online banking. Respondents who find that paying bills online isconvenient have a sig of .026; therefore, we must reject the null since the sig is less than .05(alpha). Respondents who find that paying bills online is convenient do have an effect on theconvenience when using online banking. Respondents who use online banking for transferringmoney has a sig of .012; again, we must reject the null since the sig is less than .05 (alpha). Thismeans that transferring money does have an effect on convenience when using online banking.However, when it comes to respondents using other types for the convenience of online bankingthe sig value was .702. Here, we accept the null since the sig is greater than .05 (alpha). Thismeans that respondents who use other services in online banking do not have an effect on theconvenience of using online banking. The last testing we did with ANOVA for convenience isfor respondents who do not use services for the convenience of online banking. The sig value forthis is .000; here we are rejecting the null since the sig is less than .05 (alpha).Considering there are four out of the five variables that we had to reject the null for, we ran apost hoc to analyze the sig values that are less than .05 (alpha). According to our post hoc datawhen comparing the usefulness of online banking of certain services, we found out those userswho do not use any services in online banking are the most significantly different due to the verylow levels of usefulness frequencies.Security: The third construct of our research is security. First, we ran descriptives on how securerespondents felt when using online banking. We found that 56% of respondents agree that theyfeel secure when using online banking. Next, we found that 28% said they strongly agree thatthey feel secure when using online banking. Only 6% of respondents reported that they eitherdisagree or strongly disagree that they feel secure when using online banking.Next, we ran an ANOVA test to see if the level of which someone feels secure when usingonline banking affects which type of online banking they mostly use. We rejected the null fortwo of these categories because the sig. was less than .05. Those who disagree that they feelsecure when using online banking vary a lot compared to those who feel secure, are neutral, andfeel very secure when asked if they use online banking to transfer money. Also, those who agreeor strongly agree that they feel secure when using online banking varies greatly versus those who
  13. 13. disagree or strongly disagree when asked if they use online banking at all. We also found thatthose who strongly agree that they feel secure when using online banking spend more minutesper visit online. Lastly, we noticed that there is no difference between feelings of security andhow often per week someone accessed their online banking account because the sig. value herewas .393 which is greater than .05 (alpha).Lastly we used excel to find out which type of security concerns respondents reported. We foundthat 41.7% of respondents actually do not have any concerns when using online banking. Next,we found that 31.2% said that hackers were their main concern when using online banking. Thiswas followed by 11.5% saying identity theft, 6.3% reporting location, 4.2% saying passwordsecurity, 3.1% reporting internet connection, and finally 2.1% said their concern was cookies.Accessibility: The fourth construct of our research is accessibility. We first ran frequencydescriptive statistics on how respondents access their banking. We first ran frequency descriptivestatistics on what way is used most often by respondents to access online banking (Q8), whichfound that 77.1% of people use the computer to access their banking account, while 19.8% usethe internet on their mobile device, and 3.1% used text messaging on their mobile device. Wealso ran frequency descriptive statistics for each of the different ways of accessibility and howoften they were used (Q22). We found that 39.6% of respondents rarely accessed their bankaccount at the bank, 49% of respondents accessed their account online often, 40.6% ofrespondents never accessed their account by phone, and 38.5% accessed their account sometimesat the ATM.
  14. 14. For the question of the different ways respondents can access their accounts and how frequentlyit is done (Q22) we also ran an ANOVA test. We were not able to run the test as one questionbecause of the way that SPSS set it up. With all of the information that was gathered andproduced, it made it very difficult to run the test as one question. After running the differenttests, we found that accessing the bank account through the bank, had a sig. of .257 meaning weaccepted the null that averages for the participants who responded yes and no to accessingthrough a bank had the same averages. We found that accessing the bank account via online, hada sig. of .049 meaning that we rejected the null, which means the “yes” and “no” participants haddifferent averages. Next, we found that accessing the bank account via phone had a sig. of .000so we rejected the null, meaning the participants who used and did not use their phone to accesshad different averages. Finally, we found that accessing the bank account via ATM had a sig. of.880 meaning that we accept the null, showing both groups (those who use an ATM and thosewho don’t) have the same averages.After running an ANOVA test for each way of accessing bank accounts and how frequently they
  15. 15. are accessed, we found that we needed to run a post hoc test on both the “access through online”and the “access by phone” groups. After running the test for frequency of “access via online”, wefound that the “never” category was different from the rest of the categories. It was differentbecause it had the lowest level of frequency of accessing their account per week because it hadall negative numbers. The lowest sig. of .045 was for “never” on usage of “all the time access viaonline.” This makes sense because the majority of respondents did access their accounts throughthe internet. For the phone post hoc test, we also found that the “all of the time” category wasdifferent from the rest of the levels because all of the sigs were .000. It differed because it hadthe highest access frequency per week. This was because they are all positive mean differences.Financial Commitment: The fifth construct of our research was financial commitment. We firstran frequency descriptive statistics on how respondents pay their bills (Q4), which found that50% of people pay bills online, while 38.5% write checks and mail or drop off their payments,and 3.1% pay over the phone. We also ran frequency descriptive statistics on the types of billsthat respondents pay (Q24). We found that 8.3% of respondents do not pay bills. Of ourrespondents, 68.8% pay utility bills, 61.5% pay a credit card bill, 58.3% pay rent, and 55.2% paya cable bill. Only 43.8% pay loans payments. Appendix D: Results of Financial Commitmentfurther explain these results.After analyzing frequency statistics, we ran tests to compare financial commitment against usageof online banking to determine if the usage of online banking is affected by levels of financialcommitment. We ran independent sample t-tests on each of the types of bills paid to understandthe relationship between using online banking and the types of bills paid by the respondents.
  16. 16. While an ANOVA would have made more sense to run, this question used a multiple answerscale so they are in essence a different question that should be analyzed separately. We treatedthe question as if we asked “do you pay a cable bill?” with a yes or no scale. In our independentsample T-tests of how often respondents access their account online per week and the types ofbills our respondents pay, we accept the null hypothesis that the means of those who pay rent,utilities and cable/phone bills access their accounts as often as other groups. However, we didnot accept the null hypothesis in the cases of paying loans and paying credit cards. The means ofrespondents who pay loans and pay credit cards and how often they access their accounts weredifferent than other types of bills our respondents pay. In our independent sample t-test testing“paying loans” and “access frequency per week,” we rejected the null hypothesis because sig.was .039 and shows that the means are significantly different. In our independent sample t-test ofcredit card payments, the sig. was .033, which less than .05. Because we asked what types ofbills respondents pay separately, we ran an independent t-test and could not find the meandifferences of those who pay credit cards and those who pay loans. One of the limitations of ourdata is being unable to find the exact differences in each category related to how oftenrespondents access their accounts.We also ran an ANOVA of access frequency per week and the methods that our respondents useto pay bills. We found that the means were not significantly different, as alpha is .608. Weaccepted the null hypothesis and found that the means were not significantly different betweenthe methods that people use to pay bills and how often they access their account.Overall Regression: We decided to do one big regression table that allowed us to look at all therelationships at the same time. We did a linear regression table to look at how usage relates to thevariables and predict what would happen if the variables changed. Our usage dependent variablequestion that we used involved the frequency of using online banking per week (Q16). Based onour table (Appendix D), the use of online statements, using mobile devices, using online bankingfor transferring money, and viewing transactions influence usage. These were chosen becausetheir sigs. were close to/ less than .05 (alpha). This tells us that the more people that view onlinestatements, the higher the frequency per week. For devices, frequency increases as people movefrom using computers to using mobile devices. This offers a recommendation for online banking
  17. 17. services to be more mobile user-friendly. Participants who used online banking to transfer moneyand view transactions had a higher frequency, showing that the more consumers who transfermoney and view transactions, the higher the frequency of using online banking per week. The r-square was .236 which states that .236 of the variance is explained.CONCLUSIONSGender, age, and technology orientation do not have an effect on usage. This allows onlinebanking services to market very broadly since these demographic variables do not make adifference in usage. We recommend their marketing strategy relates to both genders, all agegroups, and all types of technology oriented consumers because anyone will be receptive to themarketing.Convenience does have an effect on usage of online banking. We feel the reason why usingonline banking is so convenient for consumers is because of all of the services the system offersinclude but are not limited to; online transfers, paying bills, and viewing online statements. Wehave also found that many consumers find online banking extremely important and veryimportant. We recommend online banking services market themselves as including multiplebeneficial services than just a select few because one service is not as highly valued byconsumers than another.Security concerns do affect weather people use online banking services to pay their bills andsecurity concerns do stop some people from using online banking all together. We feel that ifconsumers had the option of a more secure online banking site they would utilize it for a widerrange of reasons. We noticed that security concerns do not affect the time per week consumeraccess their accounts and about 41.7% of users said they do not have any security concerns at allregarding online banking.Access does affect the usage of online banking. Through the three methods surveyed, we foundthat the majority of respondents use the computer to access their bank accounts. This is alsofound true by the results we found showing that the majority of respondents use online accessmost frequently throughout the week. Within the groups that used mobile phones to access, the
  18. 18. “all the time” had the biggest difference from the rest of the groups, having the highestfrequency. Within the groups that went online to access, the “never” group had the biggestdifference from the rest of the groups, having the lowest frequency. We would recommendspending most of the time focusing on user friendly services on the computer, but also focus timeon the mobile phone online usages.Of our 96 respondents, 50% said that they pay their bills online, followed by paying bills using acheck through the mail, and only 3.1% responding that they pay their bills via the phone. Wefound that how people pay their bills does not affect usage when testing the variable number oftimes account is accessed per week. However, there were differences in use of online bankingand paying loans and credit cards when we ran our independent sample t-test. This may bebecause loans and credit cards are predominantly paid and managed online. We wouldrecommend creating simple access to paying loans and credit cards through online bill payservices and promoting current services that allow users to pay loan and credit card paymentsonline.The limitations of our research include not having a large enough sample size, have to edit ourdata so that it runs properly in SPSS, and having to group some of our variables for easieranalysis interpretation. We feel that if we had a larger sample size we would have found differentresults in our data, this would have also helped when we ran into some problems regarding dataskewness. We feel we would have had a difference in usage between the less technology orientedgroup and the more technology oriented group if we had a larger sample size. When using SPSSto run ANOVA tests, we had to delete some data entries that did not have enough responsesotherwise we were not able to run post hoc tests. Although this worked out fine, we did have toremove some of the responses from our data essentially leaving out some respondent’s answersthat we would have like to use. Due to the fact that some of our research questions had manypossible answers we were forced to combine some of these groups so that when running data wecould interpret the data easier.
  19. 19. Appendix AWe performed our focus group on Wednesday, September 26 at 7:00 p.m. It was located in alibrary study room and involved four participants. The participants were Tyler Olsen, KelseyCasmore, Emily Schnacky and Joel Genung. It lasted for twenty minutes and was in a discussionformat. We videotaped it for future reference. Leah was the coordinator and the rest of the groupmembers recorded the participants’ answers.50% of the participants found online banking both convenient and user-friendly.75% used fast or easy to describe online bankingConsumers see online banking as fast and convenient. When describing online banking, theparticipants used positive words = positive feelings toward online banking.100% said they use online banking100% manage their balances online25% used online banking as an emergencyConsumers use online banking on a regular basis. It is a common way of doing banking becauseusers usually have access to the Internet and spend a lot of time online.50% pay bills online100% use online banking to transfer money to and from accounts25% use it as a tool to see how they are spending their money75% to pull up images of previous transactions100% use to view their statements onlineConsumers use online banking the most to transfer money and view statements. Stated it waseasier to do online, eliminates use of paper and is timely. → Users can make transactions quickerand can look at online statement whenever have access to the Internet.
  20. 20. 100% they prefer an actual teller versus an automated/online service when dealing with customerconcerns100% believed an actual teller is more efficient than an automated/online service50% said they sometimes get nervous when using online banking in fear of errors and privacy100% said they have some type of fear about security with online banking25% said a disadvantage of online banking is needing to remember username and passwordConsumers would rather interact face-to-face when dealing with bank issues because it assurestheir problem will be fixed and everything will be done efficiently. Consumers have some fearthat online banking is not secure and tend to change their behavior as a result. Ex. Only use toview statement and not for transactions
  21. 21. Appendix BOnline BankingQ1 We are group of market research students researching the factors that affect usage of onlinebanking. This survey is 16 questions and should take 5-10 minutes to complete. Your responsesare completely confidential and anonymous. Your responses will be strictly used for our project.Thank you for your time.Q21 Do you have access to the internet at your home? Yes  (1)   No  (2)  Q7 How often do you have access to the Internet? Never  (1)   Rarely  (2)   Sometimes  (3)   Quite  Often  (4)   Very  Often  (5)  Q18 Do you have access to an ATM? Yes  (1)   No  (2)  Q13 Do you use online banking? Yes  (1)   No  (2)  
  22. 22. Q12 I use online banking for.. (Mark all that apply) Viewing  online  statements  (1)   Pay  bills  (2)   Transfer  money  to  and  from  accounts  (3)   Other  (4)   I  do  not  use  online  banking  (5)  Q16 How frequently do you access your online account per week? (amount of times)Q19 How much time do you spend when accessing your account online? (minutes per visit)______  Minutes  spent  accessing  online  account  per  visit  (1)  Q8 Which of the following do you use most often to access online banking? (Or would you use ifyou used online banking) Computer  (1)   Mobile  Device-­‐  Internet  (2)   Mobile  Device-­‐  Text  Messaging  (3)  Q22 I access my account...            At  the  bank  (1)                  Online  (2)                  Phone  (3)                  ATM  (4)                 
  23. 23. Q5 Please mark how important these statements are to you when using online banking.   Not  at  all   Very   Neither   Very   Extremely   Important  (1)   Unimportant   Important  nor   Important  (4)   Important  (5)   (2)   Unimportant   (3)  Direct  Deposit                  (1)   Transfers  (2)                  Online                 Statements  (3)   Convenience                  (4)   Viewing   Transactions                  (5)  Q20 On a scale of 1-10, how useful is online banking to you?______  Online  Banking  (1)  Q4 How do you usually pay your bills? I  do  not  pay  bills  (1)   Pay  online  (2)   Write  check  -­‐  either  sent  in  mail  or  dropped  off  (3)   Over  the  phone  (4)  Q24 Please check all types of bills that you pay. Loans  (students,  mortgage,  auto,  etc.)  (1)   Utilities  (2)   Rent  (3)   Credit/Charge  cards  (4)   Phone/Cable  (5)   I  do  not  pay  bills  (6)  
  24. 24. Q9 I feel secure using online banking. Strongly  Disagree  (1)   Disagree  (2)   Neither  Agree  nor  Disagree  (3)   Agree  (4)   Strongly  Agree  (5)  Q19 If any, what concerns do you have about security when using the internet?Q17 Please mark your gender. Male  (1)   Female  (2)  Q22 Please type in your age.Q20 Please mark your level of disagreement/agreement.             I  feel   comfortable                  with  technology  (1)   I  am  curious   about  new                 technology  (2)   I  like  to  have   the  newest                 technology  (3)  Q10 Thank you for your participation. This information will be helpful in analyzing andinterpreting the factors that affect online banking usage.
  25. 25. Appendix D - ResultsDemographics: Gender Frequency Percent Valid Percent Cumulative Percent Male 32 33.3 33.3 33.3 Valid Female 64 66.7 66.7 100.0 Total 96 100.0 100.0 Age Categories Frequency Percent Valid Percent Cumulative Percent 10-19 16 16.7 16.7 16.7 20-29 73 76.0 76.0 92.7 Valid 40-49 3 3.1 3.1 95.8 >50 4 4.2 4.2 100.0 Total 96 100.0 100.0 TechnologyOrientation Frequency Percent Valid Percent Cumulative Percent Less Oriented 32 33.3 33.3 33.3 Valid More Oriented 64 66.7 66.7 100.0 Total 96 100.0 100.0

×