Osu 1064325414

FACTORS AFFECTING INTENTION TO USE ONLINE FINANCIAL SERVICES
DISSERTATION
Presented in Partial Fulfillment of the Requirement for

The Degree Doctor of Philosophy in the Graduate
School of The Ohio State University
By
Jihyun Lee, M.S.
*****
The Ohio State University
2003
Dissertation Committee:
Professor Loren V. Geistfeld, Adviser
Professor Jonathan J. Fox
Professor Catherine P. Montalto
Approved by
Adviser
College of Human Ecology
Department of Consumer
and Textile Sciences
Copyright by
Jihyun Lee
2003
ABSTRACT
The primary purpose of this study was to identify determinants affecting

consumers intention to use online financial services. The effects of attitude
toward a behavior, subjective norm, and perceived behavioral control variables
on the intention to use online financial services were examined. Demographic
control variables were included as control variables.
The conceptual framework underlying the study was based on the Theory
of Planned Behavior. This theory suggests that attitude toward a behavior,
subjective norm, and perceived behavioral control affect behavioral intention to
engage in a behavior. Behavioral intention, then, leads to engaging in a behavior.
Data came from the 1998-99 MacroMonitor Survey. The study sample
consists of 3,780 households completing a mail survey between May and August
of 1998. This data set includes information about consumer attitudes, behaviors
and motivations regarding financial products, services, delivery methods, and
institutional use. Factor analysis was used to reduce the number of independent
variables. Logistic regression analysis was used to examine the effect of the
independent variables on the probability of the intention to use online financial
services.
ii
The findings based on five different dependent measures of online

financial service uses revealed that the seven variables consistently affect
intention to use online financial services: satisfaction with finances, positive
attitude toward credit market, professional advice unneeded, personal contact
desired, one-on-one interaction unneeded, education, and prefer less complex
financial strategies. Individuals dissatisfied with their financial situations were
more likely to intend to use online financial services. Consumers who had
positive attitudes toward credit markets had a greater probability of intention to
use online financial services. Individuals with preferences for professional advice
were more likely to use online financial services. Consumers having lower
preferences for personal contact had a higher likelihood of intention to use online
financial services. Individuals lacking a need for one-on-one interaction were
more likely to intend to use online financial services. Consumers preferring
complex financial strategies were more likely to intend to adopt online financial
services.
An important implication of this study is that individuals intending to use
online financial services seek professional information using a non-personal
medium to improve their financial situation. However, this raises an equally
important issue in that the quality of information received through online financial
services needs to be considered since inaccurate and incomplete information
may lead to undesired outcomes.
iii
Dedicated to my parents and my husband
iv
ACKNOWLEDGMENTS
I would like to express my deepest gratitude to my advisor, Dr. Loren V.

Geistfeld, for his encouragement, support and patience through my entire
graduate school in the U.S.A. His guidance and valuable advice enabled me to
finish this dissertation. My gratitude also goes to my committee members, Dr.
Jonathan Fox and Dr. Catherine P. Montalto, for their intuitive suggestions and
invaluable comments through all stages of this dissertation.
I would like to thank the Department of Consumer & Textile Sciences for
providing financial support during my Ph.D. study at The Ohio State University. I
extend my appreciation to Dr. Sherman D. Hanna, Dr. Kathryn Stafford, and
fellow graduate students in my department for their help and support.
Sincere appreciation is extended to my parents, two sisters, and a brother
who shared my joys and sorrows in graduate school life with me. Special thanks
go to my parents who have provided continuous love and encouragement for me.
My appreciation also goes to my parent-in-laws for their support and
understanding. I would like to express appreciation to my grandmother for her
daily early morning prayers for me. I also thank my sister, Jung-Eun Lee, for
taking care of my family for a long time. My special thanks go to dear Susie and
Michael. I am proud to be your mother.
To my husband, Tae-Hoon Kim, I would like to express my heartfelt
gratitude for his love, endless support, and willingness to endure with me.
vi
VITA
November 13, 1968
Born Busan, Korea
1989 1993
B.S., Economics,
Busan National University, Busan, Korea
1993 1995
Research Assistant, Department of Economics,

Busan National University, Busan, Korea
1995 1997
M.S. Student, Department of Economics,

The Ohio State University, Columbus, Ohio
1999
M.S., Family Resource Management,

1997 present
Graduate Teaching and Research Associate,

Consumer and Textile Sciences,
FIELD OF STUDY
Major Field: Human Ecology, Consumer Science
Support Field: Economics
vii
TABLE OF CONTENTS
Page
Abstract...ii
Dedication..iv
Acknowledgements...v
Vita.vii
List of Tables.xi
List of Figures..xiii
Chapters:
1.
Introduction....1
1.1
1.2
1.3
1.4
2.
Background of the Study.1

Importance of the Study..5
Objectives of the Study6
Outline of the Study..6
Theoretical Background & Literature Review...7

2.1
2.2
Technology Acceptance Model (TAM)..7

2.1.1
Overview7
2.1.2
Key Elements of the Technology Acceptance Model...10
Task-Technology Fit Model (TTF)17
Overview..17
2.2.1
2.2.2
Task-technology fit.18
2.2.3
Performance...19
2.2.4
Task Characteristics..20
2.2.5
Individual Characteristics..22
2.2.6
Technology Characteristics..23
viii
2.3
2.4
2.5
2.6
3.
Methods43
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
4.
The Theory of Planned Behavior (TPB)..24

2.3.1
Overview..24
2.3.2
Key Elements of the Theory of Planned Behavior25
Discussion of Theories..28
A Conceptual Model of Intention to Use Online Financial
Services...31
2.5.1
Determinants of the Conceptual Model..31
2.5.2
Hypotheses.31
2.5.2.1
Attitude Toward a Behavior...31
2.5.2.2
Subjective Norm..34
2.5.2.3
Perceived Behavioral Control...35
2.5.3 Control Variables..38
Summary of Hypotheses...42
Data Source.43
Sample.44
Description of Dependent Variables45
Description of Independent Variables.47
3.4.1
Attitude.47
3.4.2
Subjective Norm.50
3.4.3
Perceived Behavioral Control..53
3.4.4
Demographic Control Variables......57
Variable Reduction Procedures: Factor Analysis..64
Missing Data66
Descriptive Analyses..70
3.7.1.
Comparing Mean Values..71
3.7.2.
Comparing Distributions72
Multivariate Analysis..72
3.8.1
Logistic Regression...72
3.8.2
Interpretation of Logistic Regression..77
3.8.3
General Model Testing and Identification of Independent
Variables..78
Results..80
4.1
4.2
4.3
Factor Analysis80
4.1.1
The Procedure80
4.1.2
The Results.82
4.1.3
Linking Factor Analysis Concept Groups to TPB...100
Descriptive Analysis.102
4.2.1
Comparing Intended Users to Intended Non-Users...103
Results of Multivariate Analyses112
ix
4.3.1
4.3.2
4.3.3
4.3.4
4.4
5.
Multicollinearity.112
Missing Values.115
Variables115
Results of Logistic Analyses..119
4.3.4.1
Role of TPB Blocks of Variables119
4.3.4.2
Factors Affecting Intention..125
Discussion of Findings.131
4.4.1
Attitude Toward Behavior...132
4.4.2
Subjective Norm...134
4.4.3
Perceived Behavioral Control136
Summary, Limitations and Implication..140

5.1
5.2
5.3
5.4
Summary140
Implications142
5.3.1
Marketing..143
5.3.2
Consumers144
5.3.3
Financial Planner.145
5.4.4
Conclusion146
Limitations..146
Suggestions for Future Research..148
Bibliography...149
Appendices163
A. SPSS Syntax163
B. Lists of Possible Responses..170
C. Descriptive Statistics for Current Users and Non-Users...173
D. Logistic Regression Before Missing Data Imputation & VIF.179
E. Logistic Regression Results for Four Uses of Online Financial Services..184
F. Peasons Correlation Matrix...193
LIST OF TABLES
Table
Page
3.1
A summary of dependent variables.46
3.2
A summary of independent variables..59
3.3
Summary of number of missing value and imputation.69
4.1
Attitude and knowledge questions: Factor analysis..87
4.2
Personal interaction questions: Factor analysis92
4.3
Financial planning questions: Factor analysis...98
4.4
Frequency of current users and non-users for specific use of online

financial services..103
4.5
Demographic control variables of intended users and intended non-users

of online financial services.....105
4.6
Attitude variables (intended users compared to intended non-users).107
4.7
Subjective norm variables (intended users compared to intended nonusers)..109
4.8
Perceived behavioral control variables (intended users compared to

intended non-users).112
4.9
A summary description of the study variables (sample = 3143)...118
4.10
Independent variable groups and intention for general use of online

xi
4.11
Significance of variable blocks for the four types of online financial

services..125
4.12
Odds ratios for five uses of online financial services..130
4.13
Variables significantly affecting the likelihood of intended use of online

C.1
Demographic control variables (current users compared to nonusers)..174
C.2
Attitude variables (current users compared to non-users).175
C.3
Subjective norm variables (current users compared to non-users).176
C.4
Perceived behavioral control variables (current users compared to nonusers)..178
D.1
Logistic regression: Intended users of online financial services (1 =

intended users, 0 = Intended non-users)..180
D.2
The results of collinearity statistics in linear regression: Tolerance, VIF,

Eigenvalue, condition indice (1 = intended users, 0 = intended nonusers)..182
E.1
Independent variable groups and intention for account management

uses185
E.2
Independent variable groups and intention for loan uses..187
E.3
Independent variable groups and intention for investment uses..189
E.4
Independent variable groups and intention for insurance uses191
xii
LIST OF FIGURES
Figure
Page
2.1
Original Technology Acceptance Model.10
2.2
Task-Technology Fit Model...20
2.3
Theory of Reasoned Action..27
2.4
Theory of Planned Behavior.27
2.5
Conceptual model of technology adoption based on the Theory of Planned

Behavior...32
F.1
Pearsons Correlation Coefficient..194
xiii
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Use of information technology (IT) products1 has grown rapidly throughout

the world. The Internet facilitates linking and accessing many IT products.
However, resistance to IT innovations exists even though people realize that not
using IT innovations can place them at a disadvantage in both their working and
personal lives. This suggests a need to identify factors associated with the
reluctance to adopt IT innovations. Once these factors are known it may be
possible to help people overcome their reluctance to use new information
technologies.
Personal computers, cellular phones, fax machines, pagers, modem, etc.
Electronic banking as an IT is not new. Wire transfers are almost as old

as the telegraph (Garbade & Silber2, 1978). The first commercial use of the
telephone was by two bankers to check balances in the 19th century (Brooks,
1975). FedWire funds transfer3 began shortly after the establishment of the
Federal Reserve system and the Clearing House Interbank Payment System
(CHIPS)4 was started in 1970. In addition, bank credit cards have been in
existence for about 40 years, and automated teller machines (ATMs) have been
in place for over 30 years. Even though the concept of electronic banking is not
new, the emerging electronic banking technologies in the 1990s are different
from previous innovations. New technologies in banking involve banks retail
transactions and contacts with customers so that these innovations have the
potential to increase efficiency and generate cost-saving for banks and
consumers.
Contemporary banking and online financial services have emerged by
combining the Internet with financial management (Bank Marketing, 2000). The
use of electronic banking (or online financial services) has rapidly grown in the
U.S. In 1999, 85 percent of households had at least one Electronic Fund Transfer
(EFT) on their accounts; the number of Automated Teller Machine (ATM)
They described that an early use of the telegraph was to transmit financial price information and thus to
facilitate arbitrage.
3
The Fedwire funds transfer is a real-time gross settlement system that the Federal Reserve Bank uses to
send payments to, or receive payments from, other account holders. Now the Fedwire funds transfer uses
either a mainframe or PC connection and telephone from 12:30 am to 6:30 pm eastern time, Monday
through Friday.
4
CHIPS is a bank-owned, privately operated real-time, final settlement electronic payments system for
business-to-business and inter-bank transactions in U.S. dollars.
transactions was 907 million per month; the number of point of sale transactions
was 202 million a month; and 7 million U.S. households used online financial
services (Business Week, 2000). In addition, transferring funds between
accounts has increased with the use of online financial services. The largest
account-to-account transfer services are Bank Ones eMoneyMail and ePay, and
Well Fargos Billpoint and PayPal (Janik, 2000; Business Week, 2002). Twentytwo percent of American households have given up paper checking for online
financial services (Bank Marketing, 2002). Some banks reported a 20% increase
in online banking enrollment between September and November 2001 (Bank
Marketing, 2002).
Factors encouraging increased use of online financial services are the
greater convenience and reduced cost of online financial services. Individuals
benefit from 24 hours/7days access to their accounts and customer services
from home or anywhere with computers. Banks or financial service providers
realize reduced costs associated with account maintenance and customer
service.
The following innovations are three examples of recent IT based changes
in electronic banking and online financial services. Electronic bill-paying is a
system involving a personal computer (PC) and a modem, or a smart telephone
and a screen, or an interactive TV system, used by individuals to pay bills
electronically. Electronic bill-paying substitutes electronic transfers for check
writing and mailing.
3
Home banking is a system that involves direct online connections as well

as connection through the Internet between an individual and a bank. It
encompasses a wide range of transactions including bill-paying, balance
inquiries, transfers among bank accounts, the purchase and sale of financial
instruments, and applications for a loan or mortgage.
Stored-value cards and smart cards are cards with information encoded
on a magnetic strip or a microchip. This information can be read by specially
designed readers. An institution creates liabilities on itself by issuing cards with
encoded values that can then be used as payments via a card reader in
subsequent transactions. This includes disposable cards that may be used for
limited purposes (e.g., phone calls) as well as reusable forms of stored-value
cards.
About half of all households have used electronic bill payment as an
online financial service (Snel, 2000), and this proportion is not expected to rise
much (Morris, 2000). For other online financial services, demand has not been
large either. A 1998 Forrest Research survey found that only 10% of the 120,000
respondents said they were likely or extremely likely to use online financial
services (Snel, 2000). A possible cause of consumer reluctance is concern with
the safety and security of online banking (Giglio, 2001). The slow adoption of
online financial services results from technophobia, fear of the unfamiliar,
persistence of the paper check and significant costs associated with establishing
an electronic bank system or network (Katz & Shapiro, 1994; Besen & Farrell,
1994; Liebowitz & Margolis, 1994; White, 1999).
1.2 Importance of the Study
Many people hesitate to use online financial services for a variety of

reasons. This reluctance results in inconvenience associated with writing and
mailing checks, spending time to stop at a branch and consulting to get financial
information with bankers. On the other hand, by using online financial services,
people can conduct fast and convenient financial transaction activities and obtain
their account information without the limitation of office hours and a need to visit
an office. It is important to understand what factors affect the adoption of online
financial services in order to facilitate household use of information technological
products (online financial services) through computers or the Internet.
This study will identify variables (demographic control, attitudes, subjective
norm, and perceived behavioral control variables) influencing the adoption of
online financial services by households. It will be meaningful for financial
institutions to understand households acceptance and preferences regarding
online financial services. Moreover, it will help policy makers develop policies to
improve consumers decision-making abilities as they adopt online financial
services.
1.3 Objectives of the Study
The purpose of the study is to examine household adoption of online

financial services. Online financial services refer to all financial activities using
computers such as making transfers between accounts; inquiring about account
balances; opening/closing checking/saving accounts; buying or selling mutual
funds, stocks, and bonds; managing investment accounts and so on.
The primary objective is to identify those factors influencing households
intention to adopt online financial services: demographic control variables,
attitudes variables, subjective norm variables, and perceived behavioral control
variables.
1.4 Outline of the Study
Chapter 2 presents theoretical background related to technology adoption,

factors affecting technology adoption, and the research hypotheses. Chapter 3
examines the data source, the dependent and independent variables, and the
statistical methods used in this study. Chapter 4 focuses on the findings and a
discussion of the findings. Chapter 5 concludes the dissertation with a summary,
a discussion of implications, and limitations of this study.
CHAPTER 2
CONCEPTUAL MODEL, RELATED RESEARCH AND HYPOTHESES
This chapter presents an overview of the Technology Acceptance Model,

the Task-Technology Fit Model, and the Theory of Planned Behavior. A
conceptual model is presented that provides a framework for this study.
Hypotheses are also presented.
2.1 Technology Acceptance Model (TAM)

2.1.1 Overview
The Technology Acceptance Model (TAM), introduced by Davis (1986), is

an adaptation of the Theory of Reasoned Action (TRA) specifically modified for
modeling user acceptance of information technology (IT) (Davis, 1986; Davis,
1989; Davis et al., 1989).
Davis (1986) stated that the main goal of TAM is to explain the
determinants of IT acceptance across a broad range of information technologies
and user populations. Moreover, Davis suggested that acceptance of IT can be
determined by two primary constructs: perceived usefulness and perceived ease
of use of the technology.
TAM (Davis et al., 1989) is summarized in Figure 2.1. As can be seen,
TAM posits that IT use is determined by the behavioral intention to use IT. The
behavioral intention is affected by an individuals attitude toward using IT and
perceived usefulness. An individuals attitudes are a joint function of perceived
usefulness and perceived ease of use. Finally, perceived usefulness is
determined by perceived ease of use as well as external variables, while
perceived ease of use is influenced only by external variables.
When predicting the acceptance of information technologies, TAM
suggests the following factors are important: external variables; beliefs about
information technology (perceived usefulness and perceived ease of use);
attitudes; behavioral intention; and finally, actual IT use.
Since the original work of Davis (1986), numerous studies have validated
TAM in a variety of field settings and across a broad range of IT applications: email or voice mail (Adams et al., 1992; Davis, 1989; Gefen & Straub, 1997; Keil
et al., 1995; Rose & Straub, 1998; Straub et al., 1995; Venkatesh & Davis, 1994),
spreadsheets (Adams et al., 1992; Hendrickson et al., 1993; Mathieson, 1991),
word processing (Adams et al., 1992; Davis et al., 1989), databases
8
(Hendrickson et al., 1993; Szajna, 1994), microcomputer usage (Igbaria et al.,

1996; Igbaria et al., 1997), FAX (Straub, 1994), and expert systems (Keil et al.,
1995). TAM has also been examined across cultures (Straub, 1994; Gefen &
Straub, 1997; Rose & Straub, 1998).
Some studies also focused on TAM related measurement scales. Adams
et al. (1992) examined the psychometric properties of the perceived usefulness
and perceived ease of use scales to insure valid measurement of these scales.
Hendrickson et al. (1993) assessed the reliability of perceived usefulness and
perceived ease of use by investigating user acceptance of two software
packages. The reliability and validity of the measurement scales for TAM were
also examined by Segars & Grover (1993).
Throughout the body of TAM research, perceived usefulness and ease of
use were found to be strong determinants and predictors of behavioral intention
with behavioral intention being linked to IT use. TAM has successfully explained
about 35% of the variance in behavioral intention to use IT.
Perceived
Usefulness
Attitude
toward
Use
External
Variables
Behavioral
Intention
to Use
Actual
Use
Perceived
Ease of
Use
Figure 2.1: Original Technology Acceptance Model (Davis et al., 1989).
2.1.2 Key Elements of the Technology Acceptance Model (TAM)

2.1.2.1 External Variables
External variables directly influence perceived usefulness and perceived

ease of use. Perceived ease of use is affected by external variable relating to
system features that enhance IT usability such as menus, icons, mouse, and
touch screen. In addition, training and user support consultants also affect
perceived ease of use. The more training users receive, the higher the level of
perceived ease of use.
Perceived usefulness is also affected by external variables. For example,
consider two information technologies that are equally easy to use. If one of them
10
causes fewer errors, it would likely be seen as the more useful information
technology. Objective IT system design characteristics have a direct effect on
perceived usefulness in addition to indirect effects via perceived ease of use.
According to Davis et al. (1989), even though external variables do not
have a direct influence on attitudes and behavioral intention to use, TAM
underlies the bridge role of beliefs and attitudes between external variables and
behavioral intention. This occurs through individual differences (e.g., individual
preference or personality) and situational constraints (e.g., physical disability).
Davis et al. (1989) also indicated that such effects would only be exhibited
indirectly through their relationship with the two beliefs (perceived usefulness and
perceived ease of use) (Davis et al., 1989).
2.1.2.2 Perceived Usefulness and Perceived Ease of Use
According to Davis (1986, p.82), perceived usefulness can be defined as

the degree to which an individual believes subjectively that using a particular IT
would enhance his or her job performance. In other words, the individual
believes that the use of the IT would yield positive benefits for task performance
associated with his/her job. Perceived ease of use reflects the degree to which
an individual believes that using a particular IT would be free of effort, both
physical and mental (Davis, 1986, p.82). Davis argued that all others things
11
being equal, an IT perceived to be easier to use than another is more likely to be

accepted by the individual.
The constructs, perceived usefulness and perceived ease of use, have
been extensively investigated by researchers. These studies generally confirmed
that perceived usefulness and perceived ease of use are important factors in
affecting IT use (Adams et al., 1992; Davis, 1989; Davis et al., 1989; Hendrickson
et al., 1993; Keil et al., 1995; Mathieson, 1991; Straub et al., 1995; Szajna, 1994;
Venkatesh & Davis, 1994).
Perceived usefulness suggests a user believes that using a particular IT
will be beneficial. For the user to hold such a belief several conditions must be
met. First, the user must have prior experience with the particular problem
suggesting at least some understanding of the nature of the problem, even if the
problem is not yet understood sufficiently to derive a solution. Generally, the user
must also have experience with information technologies. This experience gives
the user a basis for evaluating the capabilities of information technologies and
how and in what circumstances they may be useful. In the formation of initial
opinions, the user will not have much hands-on experience, but may know of the
capabilities of information technologies through the media (e.g., television,
newspaper) or other communication channels (e.g., friends).
Perceived ease of use has both a direct effect and an indirect effect on
attitude toward using. Perceived ease of use is determined, at least in part, by
prior experience in the use of IT as well as by the amount of training received by
12
the user. Previous experience and training increase an individuals ability to use
IT. For example, if an individual feels self-confident from prior experience with a
particular IT, the individual will have a positive attitude toward the IT. This is the
direct effect of perceived ease of use on attitudes.
Davis (1986) also suggests a relationship between perceived ease of use
and perceived usefulness. An increase in perceived ease of use may contribute
to improved performance. Effort saved due to increased perceived ease of use
may allow an individual to accomplish more work for the same effort (Davis et al.,
1989).
Research shows that the two beliefs (perceived usefulness and perceived
ease of use) are highly correlated but distinct. Perceived usefulness is related to
IT use, while perceived ease of use is less important in predicting IT use (Adams
et al., 1992; Davis, 1989; Davis et al, 1989; Keil et al., 1995; Mathieson, 1991;
Straub et al., 1995; Szajna, 1994). Adams et al. (1992) suggests that perceived
ease of use may be an antecedent to perceived usefulness, rather than a
parallel, direct determinant of behavioral intention to use. Davis et al. (1989)
suggests that perceived usefulness is a major determinant, and perceived ease
of use is a secondary determinant, of behavioral intention to use.
13
2.1.2.3 Attitude toward Using
According to Schiffman and Kanuk (1997, p.235-236), attitude is a

learned predisposition to behave in a consistently favorable or unfavorable way
with respect to a given object. For example, in the case of attitude toward
computers, the given object is a computer. Moreover, attitudes can be learned
through purchasing behavior, direct experience with the product, information
acquired from others, and exposure to mass media advertising. In addition,
attitudes are relatively consistent with the associated consumer behavior.
However, attitudes are not permanent; they do change.
In the context of TAM, Davis (1986, p.25) defined attitude as an
individuals degree of evaluative affect toward the usage behavior. As mentioned
before, attitude toward using is jointly determined by the two beliefs (perceived
usefulness and ease of use) (Adams et al., 1992; Davis, 1986; 1989; Davis et al.,
1989; Hendrickson et al., 1993; Keil et al., 1995; Mathieson, 1991; Straub et al.,
1995; Szajna, 1994; Venkatesh & Davis, 1994). An individuals attitude toward
using is a key determinant of intention to actual use.
2.1.2.4 Behavioral Intention to Use
According to Davis (1986, p.28), behavioral intention reflects the strength

of the prospective users intention to make or to support the usage decision in
14
their mind. Behavioral intention is jointly determined by attitudes and perceived

usefulness. The relationship between attitudes and behavioral intention implies
that, all else being equal, individuals with positive attitudes will intend to perform
the behavior (Adams et al., 1992; Davis, 1986; 1989; Davis et al., 1989; Davis &
Venkatesh, 1996; Mathieson, 1991; Szajna, 1994; Taylor & Todd, 1995). In
addition, perceived usefulness directly influences behavioral intention. For
example, even though an individual may dislike a particular IT, the individual may
still use the IT if it has high level of perceived usefulness, regardless of the
individuals overall attitude toward the IT. Behavioral intention to use determines
IT use (Adams et al., 1992; Davis, 1986; 1989; Davis et al., 1989; Davis &
Venkatesh, 1996; Mathieson, 1991; Szajna, 1994; Taylor & Todd, 1995).
Adams et al. (1992) described two studies that replicate work by Davis.
The first study investigates the relationship between perceived usefulness,
perceived ease of use, and system use for both voice-mail and e-mail. Usage
was measured by asking respondents about the number of messages sent and
received the previous working day and the number sent and received on a typical
day. These two measures were highly correlated. Findings of this study indicate
that perceived usefulness is related to usage, perceived ease of use is less
important in predicting use. In the second study, they investigated usage patterns
for WordPerfect, Lotus 1-2-3, and Harvard Graphics. Usage was assessed by
two self-reported measures. These measures of system use were statistically
correlated for the three packages. Adams et al. (1992) found that both perceived
15
usefulness and perceived ease of use are important determinants of system

usage.
User acceptance of computer systems is driven to a large extent by
perceived usefulness (Adams et al.,1992; Davis et al.,1989; Straub et al.,1995;
Szajna, 1996). Other studies have also reported that perceived usefulness is
positively associated with system usage (Igbaria et al., 1997). Mathieson (1991)
and Szajna(1996) each reported that perceived ease of use explains a significant
amount of the variance in perceived usefulness.
Straub et al. (1995) used TAM to compare self-reported and computer
monitored voice mail use in a field setting; their focus was on finding appropriate
measures of usage rather than a test of TAM. Szajna (1996) found that a revised
TAM, dropping attitudes from the model and making a slight change for preversus post-implementation, predicted use, but that adding a variable to account
for experience with the technology would be a worthwhile extension of the model.
He suggested that measures of actual use may work better than self-reported
measures, at least when studying the use of e-mail.
Venkatesh & Davis (1996) extended TAM to include external variables that
might predict perceived usefulness and perceived ease of use. They found that
an objective measure of system usability had an impact on perceptions only after
direct experience with the system. Jackson et al. (1997) noted that behavioral
intention depends on the nature of the organization to which a user belongs,
extending the model to include constructs such as user involvement. Their results
16
suggest that involvement needs to be broken into psychological and participative

components to understand its impact on systems development.
Igbaria et al. (1997) used an extended version of TAM to study personal
computer use in small businesses in New Zealand. They added external factors
related to support and training from within and outside the organization. Their
results supported TAM and the extensions.
2.2 Task-Technology Fit Model (TTF)

2.2.1 Overview
The Task-Technology Fit Model (TTF) is a theoretical foundation for

studying the fit between task and technology, and individual performance
(Goodhue, 1988, 1995, 1997; Goodhue & Thompson, 1995). The TTF is
summarized in Figure 2.2. Individual performance reflects an individuals ability to
perform tasks using information technologies (ITs).
An underlying assumption of TTF is that an IT to be applied to a problem
is mandated by an organization to which a person belongs. Individuals will use
the IT and then evaluate it. The strongest link between IT and performance
comes from the relationship between task needs and task-technology fit. As task
needs change, the appropriate IT will also change. The goal of TTF is to explain
how well a technology fits the task, and how well a technology fits the abilities of
the individuals engaged in the task. These combine to give task- technology fit.
17
The TTF model suggests that task characteristics, individual

characteristics, and technology characteristics combine to lead to the adoption of
a technology (Goodhue, 1988). Task characteristics and individual characteristics
will moderate the strength of the link between specific IT characteristics and
individuals evaluations of an IT (Goodhue, 1995, p.1830). All other things being
equal, changes to the technology characteristics along the lines needed by the
user for the tasks at hand should improve task-technology fit. Likewise, changes
in tasks that result in the user making greater demands on the technology
characteristics should decrease task-technology fit. Task- technology fit could be
increased by improving the technology characteristics to better meet the task
needs. Finally, the fit between a task and a technology affects individual
performance.
2.2.2 Task-technology fit
The TTF is helpful when trying to understand the impact of technology on

performance (Goodhue, 1988, 1995, 1997; Goodhue & Thompson, 1995). TaskTechnology Fit is the degree to which an information technology or a technology
system environment assists an individual in performing his or her portfolio of
tasks (Goodhue, 1988, p.48). More specifically, it is the fit among task
requirements, individual abilities (or needs), and the functionality and interface of
the technology.
18
Goodhue (1995) identified experience as an important moderating

element in task-technology fit. Experience can affect performance through
technology characteristics and task characteristics. Experience with technology
characteristics provides an understanding of the capabilities of an IT in actual
performance. The greater the level of experience the more likely an IT will be
used for an appropriate task. Experience is actually a proxy for knowledge of IT
capabilities. The assumption (Goodhue, 1995) is made that knowledge is
obtained by prior use in actual performance.
Prior experience with task characteristics reflects experience with the IT.
This type of experience is understood to moderate the relationship between task
demands and fit. The higher the amount of experience with a particular IT, the
lower the expected performance. If an individual has a lot of experience with an
IT, the individual will have lower need to maintain the condition of the IT.
2.2.3 Performance
Performance results from the combination of the three elements (task,

individuals, and technology characteristics) into task-technology fit (Goodhue,
1988, 1995, 1997; Goodhue & Thompson, 1995). Performance in Figure 2.2 is
the accomplishment of a task, or a portfolio of tasks, by an individual. To achieve
higher levels of performance, individuals need to save time or effort or both
(efficiency and effectiveness).
19
Task-technology fit affects individual performance. High task-technology fit

increases the likelihood of improved individual performance due to the IT. This is
because greater task-technology fit means the technology more closely meets
the task needs of the individual.
Task
Characteristics
Individual
Characteristics
TaskTechnology Fit
Performance
Impacts
Technology
Characteristics
Figure 2.2: Task-Technology Fit Model (TTF): Goodhue, D.L. (1988).
2.2.4 Task Characteristics
A task, in the task-technology fit literature, is defined as an activity to be

accomplished by a knowledge worker (Goodhue, 1988, p.44). A task can relate
20
to problem-solving such as auditing or software maintenance (Dishaw & Strong,

1998) or can be associated with decision-making (Goodhue, 1995). Relevant
task characteristics include those that might move a user to rely more heavily on
certain aspects of an information technology.
Goodhue (1988, 1995) characterized tasks using a three dimensional
construct of task characteristics: variety or difficulty, interdependence, and handson. Variety and difficulty is divided into routine and non-routine (Goodhue, 1995).
Individuals who deal with routine will, over time, develop ways to work around
weaknesses in the way an IT supports those tasks. On the other hand,
individuals dealing with many non-routine situations may need to evaluate how a
particular IT fits a task. These individuals may be frustrated by difficulties
encountered by identifying unfamiliar tasks and determining how to apply IT to it.
The concept of interdependence relates to the relationship between an
individual and an organizational unit to which an individual belongs. Individuals
belonging to an organizational unit and having some assigned tasks, need to
identify, access, and integrate tasks for fulfilling their tasks from a variety of ITs
(Goodhue, 1995). Such individuals are more likely to use an IT for their tasks. As
a result, individuals will be frustrated by incompatibilities in some tasks and
access routines for these different ITs. The more interdependent the
organizations tasks and an individuals tasks are, the more likely the individual
will be frustrated by these incompatibilities. Thus, incompatibilities individuals feel
may negatively affect individual performance.
21
Hands-on means that individuals using multiple ITs will have more
flexibility to meet their other needs, but also face confusing access routines
making a task potentially more difficult (Goodhue, 1995). These individuals are
not insulated from the complexity and difficulty of the IT, and all other things
equal, may be more aware of its shortcomings than those who dont deal directly
with the IT.
2.2.5 Individual Characteristics
Individual characteristics are a moderating variable affecting both task and

technology characteristics (Goodhue, 1988). Characteristics of the individual
(e.g., demographic characteristics, attitude toward IT, prior experience, and IT
literacy) affect how easily and well a consumer utilizes the technology. Prior
experience or familiarity with a given IT has a positive association with IT use
(Goodhue, 1995). Familiarity with similar tasks and the capabilities of the
technology are posited to moderate the task-technology fit relationships through
task and technology characteristics.
The difficulty of a given task depends on the abilities of an individual.
Individuals who are more competent, better trained, or more familiar with an IT
will be better able to identify, access, and solve tasks.
22
2.2.6 Technology Characteristics
Technology characteristics are those elements of a technology used by

individuals in carrying out tasks. In the task-technology fit literature, technology
characteristics reflect a wide range of information technologies, such as
hardware, software, and computer programming languages or any combination
of these (Goodhue & Thompson, 1995). For example, hardware technology
characteristics include floppy drive, hard drive, CD ROM drive, color monitor,
mouse control, printer, modem, fax, joystick control, scanner, zip drive/tape
backup, and Internet. Software and programming languages technology
characteristics include MS-DOS, Unix, etc.
Technology characteristics provide the technological environment which
influences task-technology fit (Goodhue, 1988, 1995). When an individual
accomplishes tasks with an IT, technology characteristics provide the individual
with a given technology environment, which affect use of the IT through the
degree of task-technology fit.
23
2.3 The Theory of Planned Behavior (TPB)

2.3.1 Overview
The Theory of planned behavior (TPB) is an extension of the Theory of

Reasoned Action (TRA)(Fishbein & Ajzen, 1975), which is widely used in social
psychology and marketing studies to explain the determinants of intended
behaviors (Ajzen & Fishbein, 1980; Fishbein & Ajzen, 1975). Both the TRA and
TPB suggest that behavior is directly influenced by behavioral intention.
According to the TRA (Figure 2.3), an actual behavior is determined by
behavioral intention to perform the behavior, and the behavioral intention is jointly
determined by the attitude toward the behavior and the subjective norm (i.e.,
perceived social influence of important people to individuals) (Fishbein & Ajzen,
1975).
TPB (Ajzen, 1991, 1992; Taylor & Todd, 1995) is shown in Figure 2.4. The
TPB also postulates that behavioral intention is influenced by attitude toward the
behavior and subjective norm. However, the TPB model adds perceived
behavioral control to the Theory of Reasoned Action (TRA). TPB (Ajzen, 1991)
suggests that three key elements, attitude toward the behavior, subjective norm,
and perceived behavioral control, determine a behavioral intention. The first is
the attitude toward the behavior and refers to the degree to which a person has a
favorable or unfavorable evaluation of the specified behavior (Ajzen, 1991;
Fishbein & Ajzen, 1975). The second relates to the perceived social pressure to
24
perform or not to perform the behavior. The third relates to the perceived ease or
difficulty of performing the behavior.
2.3.2 Key Elements of the Theory of Planned Behavior (TPB)

2.3.2.1 Beliefs and Attitudes
TPB postulates that attitude toward the behavior refers to the degree to
which people have a positive or negative feeling toward the behavior. Fishbein
and Ajzen (1975) suggested that attitudes are determined by the beliefs people
have about the object of the attitude and beliefs are formed by the characteristics
of the attitude object. Ajzen (1991) also stated that individuals positive or
negative attitudes depend on desirable or undesirable expected outcomes or
results that are associated with an object. For example, people have a positive
attitude toward online financial services when they believe that online financial
services are a convenient technology for dealing with financial activities.
2.3.2.2 Normative Beliefs and Subjective Norm
Subjective norms are influenced by the normative beliefs that refer to the
perceived social pressure to perform or not to perform the behavior (Ajzen, 1991;
Fishbein & Ajzen, 1975). Normative belief might be related to the influence of
opinion among social groups such as family and friends. Much research (Ajzen,
25
1991; Fishbein & Ajzen, 1975; Lee & Green, 1991; Mathieson, 1991) reported
that the opinion or interaction with social groups such as family or friends
influences consumer decision making.
2.3.2.3 Control Belief and Perceived Behavioral Control
According to Ajzen (1991), perceived behavioral control reflects beliefs

regarding access to the resources needed to perform a behavior. There are two
components affecting perceived behavioral control. The first element is
facilitating conditions which reflect the availability of resources needed to
perform a behavior. This might include access to the time, money, skills and
other specialized resources required to perform a behavior. The second element
is self-efficacy. It is an individuals self-confidence in his/her ability to perform a
behavior. Taylor and Todd (1995b) suggest that resources (i.e., time, money)
and the individuals self-efficacy are important elements affecting behavioral
intention and actual technology use.
According to Ajzen (1991) and Madden et al. (1992), when individuals
believe that they have more resources, they believe they have fewer obstacles
and perceive greater control over the behavior, while people lacking requisite
resources and confidence perceive little control over the behavior thereby
reducing intentions to perform the behavior.
26
Beliefs and
Evaluations
Normative
Beliefs and
Motivation to
comply
Attitude
toward
Behavior
Behavioral
Intention
Actual
Behavior
Subjective
Norm
Figure 2.3: Theory of Reasoned Action (TRA) -- Ajzen, I. and M. Fishbein (1980).
Beliefs and
Evaluations
Attitude
toward
Behavior
Normative Beliefs
and Motivation to
comply
Subjective
Norm
Control Beliefs
and Perceived
facilitation
Perceived
Behavioral
Control
Behavioral
Intention
Figure 2.4: Theory of Planned Behavior (TPB) Taylor and Todd (1995).
27
Usage
Behavior
2.4 Discussion of Theories
There has been a steady flow of research on the acceptance and use of
information technology (IT). First of all, the Technology Acceptance Model (TAM)
is widely regarded as a good theoretical model for explaining IT use. TAM is
useful for predicting whether users will adopt new information technologies. From
the results of the many studies based on TAM, perceived usefulness and
perceived ease of use have been found to be important determinants of
behavioral intention and behavioral intention has been related to IT use. Thus,
TAM can be easily applied to different situations across a range of technologies;
furthermore, TAM can explain well the determinants of IT acceptance.
It is important to recognize, however, that TAM provides the answer of yes
or no for the acceptance of IT, but not the extent or degree of IT use (e.g.,
performance). That is to say that a weakness of TAM is a lack of task or
performance for IT utilization. Information technology is a tool by which users
accomplish their tasks (e.g., communication using E-mail system and writing a
paper using word processor). Thus, the lack of task or performance in evaluation
of IT and its acceptance lead to mixed results in IT evaluations in many empirical
studies based on TAM. Only one element, the concept of perceived usefulness in
TAM, implicitly includes the task concept, that is to say usefulness means useful
for something. More explicit inclusion of task characteristics may provide a better
model of IT utilization. Moreover, little research has actually focused on
28
determining whether TAM mediates the effect of experience on attitudes and

behavioral intention. A key source of information people use to form the two
beliefs (perceived usefulness and perceived ease of use) is their past
performance in similar situations. However, observed performance of a similar
task by some others may also serve as an anchor point for the two beliefs
(perceived usefulness and perceived ease of use). Davis et al. (1989) pointed out
that external variables have an indirect effect on attitudes and behavioral
intention through two beliefs (perceived usefulness and perceived ease of use) in
TAM. However, internal psychological variables (i.e., social norms) cannot be
easily explained by only a bridge role between external variables and other
variables (i.e., attitudes and behavioral intention) in TAM.
The task-technology fit (TTF) model is an important construct for
understanding the performance of information technology (IT) when individuals
have the freedom to choose a particular IT and determine the extent of
performance. Goodhues development of the TTF model addresses userevaluation of IT in the individuals satisfaction construct. The concept of
satisfaction in the TTF model reflects individuals evaluation after using an IT. In
TTF satisfaction is the determinant of behavior and other beliefs (i.e., social
norms) not based on a rational user assumption are excluded. For example, an
individual may not like or have positive feelings about a piece of software but
may still use the software as it leads to a favorable job or task outcome. The
task-technology fit model construct captures an individuals belief or affection
29
regarding the possible outcomes of task-technology fit that result from

information technology use. Thus, the focus of the TTF model is on performance
rather than IT adoption as in TAM. In addition, the TTF model focuses on users
(e.g., individuals) belonging to an organization.
The TPB model is useful when examining the factors affecting the
adoption of a new information technology. Some researchers (Mathieson, 1991;
Taylor & Todd, 1995a, b; Szajna, 1996) argue that the TPB model has more room
for considering individual attitudes and subjective norms affecting the decision
making process for technology adoption than TAM and TTF. For example, Taylor
and Todd (1995b) compared TAM with TPB in a longitudinal study of a resource
center. They concluded that the TPB provided more insights than TAM, though
TAM received support. They suggested that two factors (attitude toward behavior
and perceived behavioral control) in the TPB are similar with two components
(perceived usefulness and perceived ease of use) and the external elements in
the TAM. Neither TAM nor TTF consider subjective norm as an important factor
for technology adoption. In another study (Taylor & Todd, 1995a), found that TAM
should be modified to include subjective norms and perceived behavioral control
for better prediction of IT use for both experienced and inexperienced users.
30
2.5 A Conceptual Model of Technology Adoption of Online Financial

Services Usage
2.5.1 Determinants of the Conceptual Model
The conceptual model (Figure 2.5) based on TPB shows that attitude
toward behavior, subjective norm, and perceived behavioral control affect
behavioral intention to use a technology, which, in turn, affects actual usage of
the technology.
Attitude toward behavior can be determined by attitude toward risk and
attitude toward technology. Social support and information sources can affect
subjective norm, while experience and education can affect perceived behavioral
control. These points are developed more fully in the remainder of this chapter.
2.5.2 Hypotheses
2.5.2.1 Attitude Toward a Behavior
Attitude is defined as an individuals positive or negative feelings

(evaluative affect) about performing a behavior (Fishbein & Ajzen, 1975). It is
related to behavioral intention as people form intentions to perform behaviors
toward which they are positively oriented. For example, in the case of attitude
toward computers, if people have positive attitude toward computers, they are
more likely to have a greater intention to use computers. Attitudes can be formed
31
through previous purchasing behavior, direct experience with the product, wordof-mouth information acquired from others, exposure to mass media advertising,
the Internet, and so on. In addition, attitudes are relatively consistent with the
associated consumer behavior. However, attitudes are not permanent; they do
change.
Attitude
toward
Behavior
Subjective
Norm
Perceived
Behavioral
Control
Intention to Adopt
Online Financial
Services
Actual
Usage of
Online
Financial
services
Demographic
Control
Variables
Figure 2.5: Conceptual model of Technology Adoption based on The Theory of

Planned Behavior (TPB).
32
Many studies (Au & Enderwick, 2000; Howcroft et al., 2002; Karahanna, et
al., 1999; Liao & Cheung, 2002; Moutinho & Smith, 2000) reported that a
favorable attitude toward a new technology is an important factor affecting the
adoption of online financial services. Herbig and Day (1992) and Gilly and
Zeithaml (1985) reported that when consumers make decision to adopt a
technology, desirability is an important factor that affects attitude toward a
technology. For example, people do not adopt a technology since they dont
need it rather than they dont like it.
Oliver and Shapiro (1993) and Graphic, Visualization and Usability Center
(GVU) (1999) reported that risk aversion is negatively related to the adoption of
technology. Individuals with a high level of risk-averse attitude toward technology
adoption are more likely not to engage in technology adoption. Moreover, Ho and
Victor (1994) stated that attitude toward risk is powerful at explaining consumers
behavior since consumers tend to avoid mistakes to maximize utility in
performing a behavior. Cunningham (1967, p.37) explained the concept of risk in
terms of two components, the amount that would be lost (i.e., that which is at
stake) if the consequences of an act were not favorable, and the individuals
subjective feeling of certainty that the consequences will be unfavorable. Thus,
consumers behavior may be influenced by attitude toward subjective risk and
objective risk.
33
H1-1: Positive attitude toward a technology positively affects the intention

to adopt online financial services.
H1-2: Risk seeking positively affects the intention to adopt online financial
services.
2.5.2.2 Subjective Norm
Subjective norm refers to the persons perception that most people who
are important to him think he should or should not perform the behavior in
question (Fishbein & Ajzen, 1975, p. 302). It is related to intention to do the
behavior because people often behave based on their perception of what others
think they should do. Hartwick and Barki (1994), and Taylor and Todd (1995a)
found that subjective norm is more important prior to, or in the early stages of
technology adoption when adopters have limited direct experience from which to
develop attitudes.
The groups of people around an individual may influence the individuals
intention to adopt a technology. Chua (1980) suggests that the adopters friends,
family, and colleagues/peers are groups that have the potential to influence the
adoption of technology. Gottlieb (1986) and Wellman and Hall (1985) defined
social network as a set of links between two or more persons or groups of
people. Through the social network, social interaction occurs in the forms of
verbal and nonverbal information, advice, tangible aid (e.g., transportation),
34
emotional encouragement, and cognitive and behavioral feedback. Research

(Newman & Staelin, 1972; Westbrook & Fornell, 1979; Mazis et al., 1981; Bayus
et al., 1985) suggested that individuals use social networks to get more
information about technological innovations. Rogers (1995) reported that
individuals are exposed to the information of a technology through the groups of
people they know, and this exposure has a cumulatively increasing influence on
the adoption of the technology.
H2-1: Active social interaction through social network increases the

intention to adopt online financial services.
H2-2: Information acquired through social networks increases the intention
to adopt online financial services.
2.5.2.3 Perceived Behavioral Control
In the TPB model (Figure 2.5), perceived behavioral control reflects having
resources needed to perform a behavior. Ajzen (1991) reported that resources
affect perceived behavioral control and may be formed by time, money, skills,
other specialized resources, and previous experience required to perform a
behavior. These forms of resources play key roles in affecting behavioral
intention and actual technology use.
35
Numerous studies (Rogers & Stanfield, 1968; Plummer, 1971; Rogers &
Shoemaker, 1971; Feldman & Armstrong, 1975; Adcock et al., 1977; Labay &
Kinnear, 1981; Hambrick & Mason, 1984; Amel, 1986; Taube, 1988; Igbaria et
al., 1989; Anderson et al., 1995; Tabak & Barr, 1999; Hoffman et al., 2000)
reported that people with higher levels of education are more likely to adopt a
new technology than less educated people. Hoffman et al. (2000) reported that
the adopters of IT products (e.g., computers and electronic banking) are more
likely to have higher education levels than non-adopters. Several researchers
(Hambrick & Mason, 1984; Anderson & Melchior, 1995; Tabak & Barr, 1999)
concluded insufficient education can be an important barrier to new technology
adoption.
Previous research (Rogers & Stanfield, 1968; Plummer, 1971; Rogers &
Shoemaker, 1971; Feldman & Armstrong, 1975; Adcock et al., 1977; Labay &
Kinnear, 1981; Amel. 1986; Taube, 1988; Kennickell & Kwast; 1997; Katz &
Aspden, 1997; Hoffman & Novak, 1998; Benton Foundation, 1999; NTIA, 1999;
Hoffman et al., 2000) revealed that income is a key determinant of technology
adoption. Hoffman et al. (2000) found that the impact of household income on
home computer ownership explains differences between adopters and nonadopters in the adoption of the Internet. Moreover, Hoffman et al. (2000) reported
that respondents with greater than median income (e.g., $40,000) were more
likely to own and use a home computer than people with below the median
36
household income. Kennickell and Kwast (1997), and Taube (1988) found that
individuals who have computers are from middle- to upper-income households.
Several researchers (Hirshman, 1980; Lee, 1986; Davis, 1989; Igbaria et
al., 1989; Goodhue, 1995; Igbaria et al., 1995; Taylor & Todd, 1995; Venkatesh &
Davis, 1996; Tabak & Barr, 1999; Eastin & LaRose, 2000; Reed et al., 2000)
reported that prior experience is an important determinant of the adoption of
technology. This research suggests that adopters with greater experience are
more likely to use IT products (e.g., computer and electronic banking). Hirshman
(1980) reported that people with prior experience are advantaged when adopting
a modified technology since they can refer to past experience with a similar
technology. Davis (1989) also suggested that prior experience can be used to
facilitate understanding and maintaining a new technology. Goodhue (1995)
identified experience as a key factor affecting the adoption of technology and
reported that prior experience provides a good understanding of the capabilities
of a new technology in actual performance. Taylor and Todd (1995) concluded
that the more experience consumers have, the more likely they will adopt a new
technology. Eastin and LaRose (2000) also found that experience is important
when deciding to adopt a technology since experience makes people feel more
comfortable when using a new technology for the first time.
H3-1: Education level positively affects the intention to adopt online

financial services.
37
H3-2: Income is positively associated with the intention to adopt online

financial services.
H3-3: Previous experience positively affects the intention to adopt online
financial services.
2.5.3 Control Variables

2.5.3.1 Age
Several studies (Harris & Mill, 1971; Adcock et al., 1977; McEwen, 1978;
Pommer et al., 1980; LaBay & Kinnear, 1981; Hoffman et al., 2000) found that
younger individuals are more likely to accept new technologies than older people.
LaBay and Kinnear (1981) reported that at the first contact with new
technologies, younger individuals spent less time and less effort learning how to
use new technologies. Harris and Mill (1971) and Pommer et al. (1980) showed
that scanner technology adopters tend to be recent graduates who have a
knowledge base that is current and are receptive to new ideas. Since adopters
tend to be younger, they have a greater span of time over which to use a new
technology than do older consumers. Hoffman et al. (2000) reported that the
young to middle-aged have an advantage with respect to technology adoption.
Younger people tend to have a positive attitude toward accepting technologies
through learning-by-doing and past experience.
38
Many studies demonstrated that the elderly tend to resist adoption of new
technologies (Kasteler et al., 1968; Uhl et al., 1970; Robertson, 1971; Botwinick,
1973; Pollman & Johnson, 1974; Kerschner & Chelsvig, 1981: Lee, 1986; Igbaria
et al., 1989; Rousseau & Rogers, 1998). Before the adoption of technologies, the
elderly are more likely to be careful and seek greater motivation than do younger
individuals (Kasteler et al., 1968; Pollman & Johnson, 1974). Other studies (Lee,
1986; Igbaria et al., 1989; Rousseau & Rogers, 1998) reported that younger
adopters spent more time using new technologies after adoption.
2.5.3.2 Gender
Much research has been conducted on gender differences regarding

attitude toward technological products (e.g., computers or Internet) and computer
use. Chen (1986) suggested that males generally have more positive attitudes
and greater confidence with computers than females. Other researchers found
that women appear more afraid of computers than men and are more likely to
express concerns about how computers would affect the quality of their work life
(Gattiker, 1988). Teo and Lim (1996) found that gender differences exist with
respect to how individuals perceive computers to be easy to use. Allen (1995)
found that females perceived communication using computers to be easier, more
efficient, and more effective than males. Venkatesh et al. (2000) also found that
perceived ease of use was important to women, while men were strongly
39
influenced by perceived usefulness. Furthermore, Venkatesh and Morris (2000)

studied differences between women and men with respect to decision making
processes related to new technology adoption and use. They reported that
perceived ease of use was more important to women than men throughout the
adoption process, while perceived usefulness was more important to men after
the initial stage of the adoption process.
Kaplan (1994) reported that females are more likely than males to think
computers are fun. His findings contradict the results of Qureshi and Hoppel
(1995) who reported that males were more likely than females to perceive
computer usage as fun.
A number of studies using college students found gender differences in
using technology and in attitude toward technology (Gilroy & Desai, 1986; Gefen
& Straub, 1997). Gilroy and Desai (1986) reported that college men feel more
comfortable and competent using computers and the Internet then women.
Men use new technological products (e.g., computers or Internet) more
frequently than women (Hoffman et al., 2000; Gilroy & Desai, 1986; Gefen &
Straub, 1997). Even though a number of studies indicated that the gender gap in
computers or Internet use has narrowed over the past several years, men still
use computers or the Internet more frequently than women. Women spend less
total time using computers or the Internet in a given period, use them less
frequently, spend less time per session, and use them for fewer purposes.
40
2.5.3.3. Marital Status
Many studies (Dickerson & Gentry, 1983; Gottlieb & Dede, 1984; Tinnell,
1985; Vitalari et al., 1985; Bird et al., 1990; Duxbury et al., 1996) examined the
impact of marital status on IT adoption. There is little agreement among these
studies concerning the relationship between technology adoption and marital
status. Dickerson and Gentry (1983), and Leider (1988) found that married
people were more likely to adopt home computers. Other researchers (Gottlieb &
Dede, 1984; Tinnell, 1985; Vitalari et al., 1985; Bird et al., 1990; Duxbury et al.,
1996) reported that individuals who were married were less likely to accept new
technologies.
2.5.3.4 Dependent Children
Several researchers (Vitalari et al., 1985; Venkatesh & Vitalari, 1987; Katz
& Aspen, 1996) examined what differences exist between households with
children and without children regarding how the technology is utilized at home.
Katz and Aspen (1996) reported that people with dependent children were less
likely to adopt the Internet at home. Vitalari et al. (1985) suggested that
individuals with children have barriers to using home computers since these
people have greater child care responsibilities (e.g., child care and home
chores).
41
2.6 Summary of hypotheses
In summary, the following hypotheses are examined in this study:

H1-1: Positive attitude toward a technology positively affects the intention to
adopt online financial services.
H1-2: Risk seeking positively affects the intention to adopt online financial
services.
H2-1: Active social interaction through social network positively increases the
intention to adopt online financial services.
H2-2: Information acquired through social networks increases the intention to
adopt online financial services.
H3-1: Education level positively affects the intention to adopt online financial
services.
H3-2: Income is positively associated with the intention to adopt online financial
services.
H3-3: Previous experience positively affects the intention to adopt online financial
services.
42
CHAPTER 3
METHODS
This chapter begins with a description of the data source. Details are
provided on the use of factor analysis to reduce the number of independent
variables. The treatment of missing values for each measure and case is
discussed. Finally, the measurement for all variables is identified and described,
and the methods used for descriptive and multivariate analyses are described.
3.1 Data Source
MacroMonitor is a biannual survey first conducted in 1978 by the

Consumer Financial Decisions group of SRI Consulting Business Intelligence
(SRIC-BI). The survey includes information about consumer attitudes, behaviors
and motivations regarding financial products, services, delivery methods, and
institutional use.
43
The MacroMonitor survey process involves several steps. The first step is
disproportionate random sampling. To provide a large sample of affluent
households, MacroMonitor oversampled households whose annual income
exceeded $100,000 a year or whose total assets exceed $500,000, excluding the
primary residence. Following this oversampling, weights were calculated to
obtain representativeness of the population. The second step is a simple random
sampling. Participants of the MacroMonitor survey were recruited using an RDD
(random-digit-dialing) sample frame. Those agreeing to participate were sent a
questionnaire by express mail. As a result of this mixed-mode methodology
(gaining cooperation by telephone and mail-and-return questionnaire), the
response rate of the MacroMonitor 1998-99 was 49%. For the 1998-99
MacroMonitor Survey, a sample of 3,780 households completed the mail survey
from May through August of 1998.
3.2 Sample
For this study, households responding to questions on the use of online

financial services were selected. All 3,780 households responded to the
question, Check any online financial services you or anyone in your household
would like to use with a personal computer in your home. The 21 types of online
financial services are listed in Appendix B. Of the 3,780 respondents, 637 were
current users of online financial services, while 3,143 were non-users of online
44
financial services. The 637 users indicated use of at least one of the 21 types of
online financial services. Of the non-users, 1,689 households were intended
users of online financial services, and 1,454 had no intention of using online
financial services. The 1689 intended user households indicated intention to use
at least one of the 21 types of online financial services. The study sample is
unweighted for both the descriptive and the multivariate analyses.
3.3 Description of Dependent Variables
Five dependent variables are used in this study to examine the factors that
affect household adoption of online financial services. These variables are
related to the use of online computer financial services in the home. The
dependent variables are summarized in Table 3.1.
3.3.1 Intended Use of Online Financial Services
The dependent variables in this study reflect the intended use of at least
one of 21 online financial services. The complete list of online financial services
is given in Appendix B. These variables are coded as binary variables that reflect
intended use of various online financial services.
The MacroMonitor data includes variables reflecting intended use of
specific online financial service in the areas of: (1) account management, (2)
45
loans, (3) investment, and (4) insurance. Account management focuses on

paying bills, stopping/canceling checks/payments, opening/closing accounts,
making transfers between accounts, and inquiring about account balances. The
loan category considers applying for various kinds of loans (i.e., home mortgage,
vehicle loans/leases) and obtaining information about loans. The investment
category addresses the buying/selling/managing of investment accounts (i.e.,
mutual funds, stocks or bonds) and obtaining information about investments. The
insurance category includes intended uses related to buying insurance (i.e., life,
health, and vehicle insurance) and obtaining information about insurance. Each
variable is treated as a binary variable (yes/no) that reflects the intended use of
at least one online financial service in a particular category.
Dependent Variables
Intended use of online financial services
Account management
Loans
Investment
Insurance
Description
=1 if yes to Would like to use at least one of 21
online financial services, 0 otherwise
online financial services for account
management, 0 otherwise
online financial services for loans, 0 otherwise
online financial services for investing,
0 otherwise
online financial services for insurance,
0 otherwise
Table 3.1: A summary of dependent variables.

46
3.4 Description of Independent Variables
As mentioned in the previous chapter, the Theory of Planned Behavior

suggests that behavioral intentions are influenced by attitude, subjective norm,
and perceived behavioral control. In the following paragraphs, the variables used
to measure attitude toward a behavior, subjective norm, and perceived
behavioral control are described. The independent variables are a combination of
continuous, interval, and categorical variables. The independent variables are
listed in Table 3.2.
3.4.1 Attitude
Attitude toward a behavior plays an important role in the adoption of a

technology. Attitude is based on the beliefs that people have about a technology
and the importance of those beliefs. If people believe that a behavior results in
good consequences, they will have positive attitudes toward the behavior.
Therefore, beliefs relating to positive or negative aspects of a new technology
should lead to positive or negative attitudes, respectively, toward the technology.
Twenty-three questions in the MacroMonitor survey related to attitude
toward risk and online financial services. Responses to the questions reflect the
extent to which the respondents agreed or disagreed with the following
47
statements on a 4-point scale ranging from Mostly agree(1), Agree(2),

Disagree(3), to Mostly disagree(4):
I am satisfied with my households current financial situation.
I am afraid my household is not saving enough for its future needs.
My household should make some important changes in our savings and

investments.
I do not need advice on investment options.
I feel qualified to make my own investment decisions.
I feel uncomfortable making judgments about the riskiness of investment.
I enjoy learning about different investment opportunities.
Over the past several years, I have become much more knowledgeable
about savings and investments.
I consider myself a sophisticated investor.
I resent any profits financial institutions make from my doing business with
them.
Dealing with financial institutions is about as much fun as being stuck in a

traffic jam.
I worry about the safety of my deposits in banks or savings institutions.
I am willing to take high risks to realize substantial financial gains from

investments.
It is wise to put some portion of savings in uninsured investments to get a

high yield.
48
I am willing to accept some risk of losing money if an investment is likely

to come out ahead of inflation in the long run.
Over the long run, say 10 or 20 years, stocks will be a very good
investment.
The stock market is too risky for me.
It is very important to me to have both a guaranteed interest rate and

federal insurance on my savings.
I am concerned that our household has more debt than it should.
In the past, I sometimes spent more than I really wanted to because credit
cards made it easy.
I am concerned about problems my debts would cause should I die or

become disabled.
I would never get a personal or auto loan that had an interest rate that
could change.
I would never get a mortgage that had an interest rate that could change.
Another attitude measure is a households financial strategy based on four

responses: Specific financial strategy (1), General financial strategy (2), Partial
but incomplete financial strategy (3), and No financial strategy (4).
The last attitude question related to a households degree of risk tolerance
concerning savings and investment. Responses to this question were on a 5point scale: Very low risk/Very low return (1), Below average risk/Below average
49
return (2), Average risk/Average return (3), Above average risk/Above average
return (4), and Very high risk/Very high return (5).
3.4.2 Subjective Norm
Subjective norm is defined as peoples perceptions of social pressure from

significant others to perform the behavior (Fishbein & Ajzen, 1975). Social
interactions through social networks (e.g., friends and family members) influence
an individuals decision of technology adoption (Gottlieb, 1986; Wellman & Hall,
1985). Moreover, information from social networks affect individuals adoption of
technological innovations (Newman & Staelin, 1972; Westbrook & Fornell, 1979;
Mazis et al., 1981; Bayus et al., 1985; Rogers, 1995).
Household size reflects the potential number of close personal contacts
around an individual. It is a continuous variable that indicates the total number of
household members.
The MacroMonitor Survey respondents were asked how often they receive
advice before making major household investment decisions: Always (1),
Sometimes (2), Rarely (3), Never (4), Dont know (5), and Unspecified (6).
Households seeking more advice are expected to be more likely to adopt online
financial services.
50
Another measure relating to subjective norm is the use of professional

financial advisors5 for the last two years and their anticipated use for the next 12
months. These were measured by the number of 12 types of professional
financial advisors/planners that the respondents used over the last two years or
planned to use within the next 12 months.
The respondents were also asked how their households obtain information
used to make financial decisions. They responded to two questions (not only for
the present, but also for the future) indicating: Mostly on their own (1), Mostly
from a financial professional (2), and Some on their own and some from a
financial professional (3).
Two other survey questions that dealt with subjective norm reflect how
households currently make financial decisions and how they plan to make them
in the future. Responses to these questions were: Mostly on their own (1), Mostly
from a financial professional (2), and Some on their own and some from a
financial professional (3).
Another question related to subjective norm reflects a households
preference for information sources used to make financial decisions over the last
12 months. This variable is the number of 21 types of information sources used.
The complete list of information of sources is listed in Appendix B.
Professional financial advisors can be defined as individuals or representatives of institutions with whom
the respondent has an established relationship while acquiring assistance or advice concerning the
households finances or investments.
51
The following 16 statements reflect preference for social interaction and

for information on a 4-point scale ranging between Mostly agree (1) and Mostly
disagree (4):
It is important that a financial services representative makes

recommendations I should consider.
It is important that a financial services representative keeps me informed

of where I stand financially.
I like to discuss my financial options before making a decision about them.
I would be willing to pay for professional financial advice.
I prefer to consult a specialist when making financial decisions.
Using my financial institution as a sounding board for ideas about my

finances is important to me.
Building long-term relationships with financial institutions is more important

than always getting the best prices or newest products.
I am more concerned with the quality of service than with cost when I deal
with financial institutions.
It is important to me that the people I deal with for financial matters

recognize me and know me by name.
Chatting with the people I know at financial institutions is an important part

of doing financial business for me.
I would rather use automated teller machines, personal computers, the

telephone, or mail than face representatives of financial institutions.
52
The less I talk to financial institution personnel the better.
I would like to go to just one person who can help me with my savings,
investments, and credit needs.
I am unlikely to try a new financial service until someone I know

recommends it.
I prefer to do most of my financial business in person.
3.4.3 Perceived Behavioral Control
Perceived behavioral control reflects perception of access to the

resources needed to successfully engage in a behavior, such as time, money,
other specialized resources, and an individuals experience.
3.4.3.1 Education
In the MacroMonitor survey, educational attainment level was measured

as a categorical variable for each male and female household head. The nine
categories reflecting educational attainment are: 8th grade or less (1), Some high
school (2), High school degree (3), Some college or technology school (4),
College degree (5), Some postgraduate work (6), Masters degree (7),
Professional doctorate (education, law, medicine, etc.)(8), and Ph.D. (9).
53
Previous research (Brines, 1994; Bianchi et al., 2000) suggested that the
more educated person between a husband and a wife is an appropriate indicator
of a households education level, the assumption being that the less educated
spouse tends to rely on the more educated spouses opinions and decisions.
Other studies (Brines, 1994; Bianchi et al., 2000) indicated that a limited number
of education categories are needed to explain the effect of educational
attainment on technology adoption. Therefore, education is coded into 3
categories that reflect the highest education attainment level of husband or wife.
The categories included: High school graduation or less than high school (1),
Some college (2), and College degree or more (3).
3.4.3.2 Income
Income in the survey was measured by 14 categories reflecting

households total gross income in 1997 before taxes or any other deductions:
Less than $10,000 (1), $10,000-$19,999 (2), $20,000-$29,999 (3), $30,000$39,999 (4), $40,000-$49,999 (5), $50,000-$59,999 (6), $60,000-$74,999 (7),
$75,000-$99,999 (8), $100,000-$124,999 (9), $125,000-$149,999 (10),
$150,000-$199,999 (11), $200,000-$299,999 (12), $300,000-$499,999 (13),
More than $500,000 (14).
Previous researchers (Brines, 1994; Bianchi et al., 2000; DeNew et al.,
2000) divided household income into quartiles. In this study, income will also be
54
divided into quartiles reflecting households total gross income in 1997 before
taxes or any other deductions: $29,999 or less (1), $30,000-$59,999 (2),
$60,000-$99,999 (3), and $100,000 or more (4).
3.4.3.3 Previous Experience and Confidence
Households confidence concerning their ability to achieve their most

important financial goals was rated on a 5-point scale: Extremely confident (1),
Very confident (2), Somewhat confident (3), Not very confident (4), and Not at all
confident (5).
Five questions were used to assess past experience with computers. The
respondents were asked how many kinds of financial software programs they
used on their home computer. The list of financial software programs is listed in
Appendix B. The respondents were also asked to report the number of hours
they spent using a home computer. Two other experience questions were related
to ATM and debit card use. These were binary variables (Yes or No). The
respondents were also asked how many times in the last three months they used
each of 10 ways to make financial transactions. The complete list of financial
transactions is presented in Appendix B.
In addition to the above, respondents answered 15 questions related to
financial experience on a 4-point scale from Mostly agree (1) to Mostly disagree
(4):
55
I do a very good job of keeping my financial affairs in order.
I am very organized in my approach to financial matters.
My household knows how to choose financial products and services that

are best for us.
Managing my financial affairs is something like a hobby. I enjoy taking

care of them.
My household is successful in sticking to its budget.
I am very disciplined in savings and spending decisions.
Often I am not sure whether the financial decisions I have made are the
right ones.
Finding tax-exempt or tax-deferred investment is important to me.
I would pay a one-time 5% fee for an investment guaranteed to grow 3%

faster than inflation.
I think the best way to save is to have savings or investments made

automatically from my income.
I prefer investments where the return is in the form of long-term capital

gains to defer taxes.
I would never borrow from my retirement plan.
I am careful not to use credit more than I should.
I am always looking for the lowest cost financial services.
I shop around for financial products/services.
56
3.4.4 Demographic Control Variables

3.4.4.1 Age
Age is a continuous variable reflecting the actual age of each male and
female household head. In this study, where there were two household heads,
the average of their ages was used to give the household age; where there was
only one household head, that persons age was used.
3.4.4.2 Gender
Gender is a categorical variable that reflects who completed the

questionnaire: Male head only (1), Female head only (2), Both male and female
household head (3), and Another person (4). This variable reflects the gender of
the person (s) completing the questionnaire. While responses to questions
related to the dependent variables reflect the household, many questions related
to independent variables reflect respondents agreement or disagreement. For
example, how much you agree or disagree with the following statements by
circling the number that comes closest to describing how you feel. Given the
gender differences noted in Chapter 2, it is important to control for response
differences due to the gender of the respondent.
57
3.4.4.3 Marital Status
Marital status is a categorical variable: Single (1), Divorced (2), Separated

(3), Widowed (4), Married (5), and Living together but not married (6).
3.4.4.4 Number of Dependent Children
This is a continuous variable reflecting the number of dependent children

within a respondents household.
58
Independent Variables
Demographic Control Variables
Age
Description
Actual age of male and female
household head
1. Male household head,
2. Female household head,
3. Both male and female household
head,
4. Another person.
1. Single,
2. Divorced,
3. Separated,
4. Widowed,
5. Married,
6. Living together but not married.
Total number of dependent children
within a respondents household.
Gender of respondents who completed the

questionnaires
Marital status
# of dependent children
Attitude Variables
Household's financial strategy
Attitude toward risk of a households savings and

investments
1. Specific financial strategy,

2. General financial strategy,
3. Partial but incomplete financial
strategy,
4. No financial strategy.
1. Very low risk/very low return,
2. Below average risk/below average
return,
3. Average risk/average return,
4. Above average risk/above average
return,
5. Very high risk/very high return.
Continued
Table 3.2: A summary of independent variables.
59
Table 3.2 continued

Evaluation of 23 financial services or products
1. I am satisfied with my households current financial
situation.
2. I am afraid my household is not saving enough for its
future needs.
3. My household should make some important changes
in our savings and investments.
4. I do not need advice on investment options.
5. I feel qualified to make my own investment decisions.
6. I feel uncomfortable making judgments about the
riskiness of investment.
7. I enjoy learning about different investment
opportunities.
8. Over the past several years, I have become much
more knowledgeable about savings and investments.
9. I consider myself a sophisticated investor.
10. I resent any profits financial institutions make from my
doing business with them.
11. Dealing with financial institutions is about as much
fun as being stuck in a traffic jam.
12. I worry about the safety of my deposits in banks or
savings institutions.
13. I am willing to take high risks to realize substantial
financial gains from investments.
14. It is wise to put some portion of savings in uninsured
investments to get a high yield.
15. I am willing to accept some risk of losing money if an
investment is likely to come out ahead of inflation in the
long run.
16. Over the long run, say 10 or 20 years, stocks will be a
very good investment
17. The stock market is too risky for me.
18. It is very important to me to have both a guaranteed
interest rate and federal insurance on my savings.
19. I am concerned that our household has more debt
than it should.
20. In the past, I sometimes spent more than I really
wanted to because credit cards made it easy.
21. I am concerned about problems my debts would
cause should I die or become disabled.
22. I would never get a personal or auto loan that had an
interest rate that could change.
23. I would never get a mortgage that had an interest rate
that could change.
1. Mostly agree,
2. Agree,
3. Disagree,
4. Mostly disagree.
Continued
60
Table 3.2 continued

Subjective Norm Variables
Total number of household members
Frequency of receiving advice for major household
financial decisions
The number of past and expected use of professional
financial advisors
Preference of information sources a household used
about financial products/services or financial decisions in
the last 12 months
How to obtain information for making financial decisions
for the present and for the future
How they make financial decisions both for the present

and for the future

1. Always, 2. Sometimes, 3. Rarely,
4. Never, 5. Dont know, 6.
Unspecified.
Total number of professional
financial advisor use
Total number of information sources
a household used
1. Mostly on their own,
2. Mostly from a financial
professional,
3. Some on their own and some from
a financial professional.
1. Mostly on their own,
2. Mostly from a financial
professional,
3. Some on their own and some from
a financial professional.
Continued
61
Table 3.2 continued

Evaluation of 15 preferences for social interaction
1. It is important that a financial services representative
makes recommendations I should consider.
2. It is important that a financial services representative
keeps me informed of where I stand financially.
3. I like to discuss my financial options before making a
decision about them.
4. I would be willing to pay for professional financial
advice.
5. I prefer to consult a specialist when making financial
decisions.
6. Using my financial institution as a sounding board for
ideas about my finances is important to me.
7. Building long-term relationships with financial
institutions is more important than always getting the best
prices or newest products.
8. I am more concerned with the quality of service than
with cost when I deal with financial institutions.
9. It is important to me that the people I deal with for
financial matters recognize me and know me by name.
10. Chatting with the people I know at financial
institutions is an important part of doing financial
business for me
11. I would rather use automated teller machines,
personal computers, the telephone, or mail than face
representatives of financial institutions.
12. The less I talk to financial institution personnel the
better,
13. I would like to go to just one person who could help
me with my savings, investments, and credit needs.
14. I am unlikely to try a new financial service until
someone I know recommends it.
15. I prefer to do most of my financial business in person.
Perceived Behavioral Control Variables
Education
Income
Households Confidence of achievement of the most

important financial goals
1. Mostly agree,
2. Agree,
3. Disagree,
4. Mostly disagree.
1. High school or less,

2. Some college,
3. College degree or more.
1. $29,999 or less,
2. $30,000-$59,999,
3. $60,000-$99,999,
4. $100,000 or more.
1. Extremely confident,
2. Very confident,
3. Somewhat confident,
4. Not very confident,
5. Not at all confident.
Continued
62
Table 3.2 continued

Number of financial software programs on home PC
Hours spent using a home PC
Having ATM cards/ debit cards
Frequency of using 10 financial transactions in the last
three months
15 questions about financial planning
1. I do a very good job of keeping my financial affairs in
order,
2. I am very organized in my approach to financial
matters,
3. My household knows how to choose financial products
and services that are best for us,
4. Managing my financial affairs is something like a
hobby. I enjoy taking care of them,
5. My household is successful in sticking to its budget,
6. I am very disciplined in savings and spending
decisions,
7. Often I am not sure whether the financial decisions I
have made are the right ones,
8. Finding tax-exempt or tax-deferred investments is
important to me,
9. I would pay a one-time 5% fee for an investment
guaranteed to grow 3% faster than inflation,
10. I think the best way to save is to have savings or
investments made automatically from my income,
11. I prefer investments where the return is in the form of
long-term capital gains to defer taxes,
12. I would never borrow from my retirement plan,
13. I am careful not to use credit more than I should,
14. I am always looking for lowest cost financial services,
and
15. I shop around for financial products/services
63
Total number of financial software

programs used
Total hours
=1 if have ATM cards/debit cards, 0
otherwise
Total number of use of financial
transactions
1. Mostly agree,
2. Agree,
3. Disagree,
4. Mostly disagree.
3.5 Variable Reduction Procedures: Factor Analysis
Factor analysis is often used to reduce the number of independent

variables by identifying a small number of factors that explain most of the
variance observed in a larger number of variables. It is well known that
multicollinearity can be a serious problem in estimating how groups of variables
influence criterion variables (Green, 1978; Knapp, 1998; Stewart, 1981).
Multicollinearity often occurs when dealing with large numbers of related
questions measured with the same scale. In the MacroMonitor Survey, many
questions related to attitudes, subjective norm and perceived behavioral control
were measured on a 4-point scale from Mostly agree to Mostly disagree. The
consequences of multicollinearity among the variables could lead to biased
estimates and inflated standard errors (Green, 1978; Knapp, 1998; Stewart,
1981).
Principal components factor analyses with varimax orthogonal rotation
was used in this study. Kaiser-Eigenvalue Criterion was used to reduce the
number of the independent variables. Variables with a factor loading of .50 or
more were included in the factors.
The principal components method of extraction begins by finding a linear
combination of variables (a component) that accounts for as much variation in
the original variables as possible. It then finds another component that accounts
for as much of the remaining variation as possible and is uncorrelated with the
64
previous component, continuing in this way until there are as many components
as original variables (Kim & Mueller, 1978a, 1978b).
Varimax, which is most commonly used for orthogonal rotation, was used
to rotate the factors. The purpose of varimax rotation is to maximize the variance
of factor loadings by making high loadings higher and low loadings lower for each
factor. Varimax orthogonal rotation yields factors that are uncorrelated, so as to
minimize the multicollinearity problem (Tucker & MacCallum, 1993).
There are several procedures for estimating factor scores. One of them is
to sum the values of variables that load highly on each factor. The problem with
this approach is that variables with larger standard deviations contribute more
heavily to the factor scores (Comrey & Lee, 1992). This problem can be
alleviated if variable scores are standardized and/or if the variables have roughly
equal standard deviations to begin with. In order to address this problem, the
Anderson-Rubin approach, which is a component of the SPSS 11.5 factor
analysis option, is used in this study. This approach yields standardized factor
scores and estimates them with a mean of zero and a standard deviation of 1. A
further advantage of using the Anderson-Rubin approach is that factor scores are
uncorrelated with each other (Gorsuch, 1983).
An Eigenvalue is the sum of the squared loadings of the indicators on the
factor with which the Eigenvalue is associated (Loehkin, 1992). An examination
of Eigenvalues indicates whether there is significant conceptual overlap among
various subgroups of the indicators. The factors with the largest Eigenvalue
65
contain the most common variance among the observed indicators; those with
small or negative Eigenvalues are then dropped as factors. To determine the
optimal number of factors used in this study, the Kaiser-Eigenvalue Criterion is
used (Tabachnick & Fidell, 1996), which involves retaining factors whose
Eigenvalues of the correlation matrix are greater than one.
For each resulting factor, an internal reliability analysis was conducted.
The reliability analysis for the factor scale was tested with Cronbachs Alpha.
This reliability analysis procedure provided information about the relationships
among individual items in the scale and their internal consistency and examined
the properties of a measurement scale and the questions that make it (SPSS,
2001).
All statistical procedures were performed using the SPSS 11.5 for the
Windows Statistical Package.
3.6 Missing Data
Missing data is common in financial surveys due to refusal or omission

(Little & Schenker, 1995). The treatment of missing data is an important
consideration in this study. There are 3 major problems that could result from
missing data: (1) biased estimates resulting from systematic differences between
respondents who have complete and incomplete information; (2) estimates that
are less efficient due to missing data; and (3) more complicated analysis due to
66
missing information (Little & Schenker, 1995). There are several methods
available for dealing with missing data. Three common methods include: (1)
casewise deletion, which omits any cases with missing data, also known as
listwise deletion; (2) pairwise deletion, which utilizes the greatest number of
cases available; and (3) mean imputation, which replaces the missing data with
the mean value for the variable (Bollen, 1989; Little & Schenker, 1995).
Casewise deletion results in regression coefficient estimates that can be biased
and imprecise. In general, casewise deletion will bias the estimate of the models
intercept parameter, increase standard errors, and widen confidence intervals.
Pairwise deletion can be problematic because this method throws away data and
tends to yield biased and inefficient estimates and inference for the parameters
of interest. Mean imputation is a preferred way to estimate missing values.
Means are calculated from available data which are then used to replace missing
values. One of the benefits of this procedure is that the mean for the distribution
as a whole does not change and the researcher is not required to guess at
missing values. On the other hand, the variance of a variable and standard
deviation are reduced, because the mean is closer to itself than to the missing
value it replaces, and the correlation the variance has with other variables is
reduced because of the reduction in variance. Tabachnick and Fidell (1996)
reported that if only a few data points (5% or less) are imputed, the problems are
less serious, and almost any procedure for handling missing values yields similar
results.
67
In this study, mean imputation was used most often to replace missing
data, while casewise deletion was used in a few situations where a mean could
not be computed (e.g., gender of respondents). For most cases where variables
have a missing value, the mean of the available cases was substituted unless
otherwise noted (Table 3.3). After the missing data imputation, the data is treated
as if it were a complete data set.
As noted earlier, the household age for a couple household was
determined by averaging the age of the male head and the age of the female
head. In this situation for missing values for household age were replaced by
the mean household age. For the gender of respondents, missing values were
dropped in the sample because this variable was categorical; in addition, the
percentage of missing values was small, about 1%. Similarly, the missing values
for marital status and educational attainment of male and female householders
were deleted in this study. The question of hours per month spent on PC use at
home had many missing values; however, a prior question asked whether a
respondent was using a computer at home. If the answer was no, the hours
spent on PC use was set to zero. The missing values in questions used in the
factor analysis were also replaced with mean values.
To ensure that bias was not introduced through mean imputation, all
multivariate models were estimated using complete-case analyses (no missing
values imputed) and imputed value analysis. These results are reported in Table
D.1.
68
Number of Missing
Value
(Total number = 3143)
639
Variable Name
Age of male head of household
Age of female head of household
Imputation of
Missing Value
= mean
379
= mean
1015
= mean
Gender of respondents who completed

questionnaires
Marital status
34
Drop cases
12
Drop cases
Education among male/female householders
25
Drop cases
Household age
Household income
Hours per month PC use at home

Frequency of 10 types of financial transactions in
the last 3 months
1516
=0
50
= mean
Have ATM cards
Have debit cards
Lack of financial discipline
239
= mean
Prefer less complex financial strategies
388
= mean
Credit use
140
= mean
Minimal search for new financial product
103
= mean
Attitude toward risk of HH savings/investment
109
Satisfaction with finances
261
= 3 (Ave.
risk/Ave. return)
= mean
Financial decision confidence
285
= mean
Poor financial knowledge
276
= mean
Positive attitude toward financial institutions
209
= mean
Degree of risk aversion
354
= mean
Concern with debt
145
= mean
Positive attitude toward credit market risk
114
= mean
Total number of HH members
Personal relationship unimportant
269
= mean
139
= mean
Personal contact desired
127
= mean
One-on-one interaction unneeded
166
= mean
Table 3.3: Summary of number of missing value and imputation.

69
3.7 Descriptive Analyses
Means, frequencies, and related statistical tests are used to describe the
difference between intended users and intended non-users of online financial
services. Pearsons correlation coefficient was used to detect multicollinearity
between the independent variables (see Appendix F).
Since weighting a sample results in some issues, the sample will not be
weighted for both descriptive and multivariate analyses in this study. The first
concern is that the weights themselves are endogenous to variables such as
income commonly used in multivariate analyses. If the weights are endogenous,
the results from the weighted multivariate analysis may be biased. In addition,
weighting a sample leads to inflating the degrees of freedom and affects the
significance of statistical tests, even if the weight can make a correction of
oversampling. Thus, the sample will be unweighted in the multivariate analyses
of this study. Moreover, the descriptive analysis also will be unweighted to be
consistent with the multivariate analyses.
To compare subgroups (intended users and intended non-users of online
financial services), T-test and 2 test will be used to compare the means or
distributions in two groups depending on the characteristics of the variables.
70
3.7.1 Comparing Mean Values
Two-sample T-tests were used to test for significant differences between

two subgroups (intended users and intended non-users of online financial
services). The null hypothesis is:
H0 : i - ni = 0
Ha : i - ni 0
where i is the mean for the sample of intended users and ni is the mean for
the sample of intended non-users.
The T-test statistic for comparing mean values is:
t =
- x
- ( i
ni
s
n
s
n
ni
2
ni
ni
If the calculated value of the test statistic exceeds the critical value, the null
hypothesis H0 is rejected.
71
3.7.2 Comparing Distributions
A 2 tests was used to test for differences in the distribution between two
subgroups (intended users and intended non-users of online financial services).
The general formula for calculating 2 is:
2 =
(O i
E)
Where O i is the observed frequency in the ith category and E i is the expected
number in the ith category. If the calculated 2 value exceeds the critical value at
= .05, the distributions of the two groups are considered statistically different.
3.8 Multivariate Analysis

3.8.1 Logistic Regression
Logistic regression is used to predict the presence or absence of a

characteristic or outcome based on the values of a set of variables (Knapp,
1998). This is similar to a linear regression model, but is fitted to models where
the dependent variable is dichotomous (intended users/ intended non-users). In
this study, logistic regression will be used to establish associations between the
dichotomous dependent variables (intended/ non-intended use of online financial
services) and independent variables identified by the Theory of Planned Behavior
72
(TPB). According to Kinsey (1984), logistic regression is designed to estimate the

probability of a choice given the characteristics of the decision maker. Maddala
(1992) suggested that logistic regression assumes the existence of an underlying
latent variable for which we observe a dichotomous realization.
In any regression analysis, the key quantity is the mean value of the
dependent variable, given the values of the independent variable:
E (Y|x) = 0 + 1x
(1)
where Y denotes the dependent variable, x denotes a value of the independent

variables, and the 1 values denote the model parameters. The estimated
quantity is called the conditional mean or the expected value of Y given the value
of x. Many distribution functions have been proposed for use in the analysis of a
dichotomous dependent variable (Hosmer & Lemeshow, 1989). The distribution
function used in the logistic regression model is:
e 0 + 1x
( x) =
1 + e 0 +1x
(2)
where, to simplify the notation, (x) = E (Y|x). The transformation of the (x)
logistic function is known as the logit transformation:
73
(x)
= 0 + 1x
g(x) = ln
1 (x)
(3)
Hosmer and Lemeshow (1989) have summarized the main features of a

regression analysis when the dependent variable is dichotomous: (1) The
conditional mean of the regression equation must be formulated to be bounded
between zero and 1 (Eq. (2) satisfies this constraint), (2) The binomial, not the
normal, distribution describes the distribution of the errors and will be the
statistical distribution upon which the analysis is based, and (3) The principles
that guide an analysis using linear regression will also apply for logistic
regression.
If Y is coded as zero or 1 (binary variable), the expression (x) given in
Eq. (2) provides the conditional probability that Y is equal to 1, given x, denoted
as P(Y= 1|x). It follows that the quantity 1- (x) gives the conditional probability
that Y is equal to zero, given x, P(Y= 0|x). For those pairs (xi, yi ) where yi = 1, the
contribution to the likelihood function is (xi ), and for those pairs (xi, yi ) where yi
= 0, the contribution to the likelihood function is 1 - (xi ), where the quantity (xi )
denotes the values of (x) computed at xi. A convenient way to express the
contribution to the likelihood function for the pair (xi, yi ) is:
( xi ) = ( xi ) yi [1 - ( xi )]1- yi
(4)
74
Since xi values are assumed to be independent, the product for the terms given
in Eq. (4) yields the likelihood function:
l() = ( xi )
(5)
The log of Eq. (5) gives the following log likelihood expression:
L() = ln [l()]
= {yiln[( xi )] + (1- yi )ln[1 - ( xi )]}
(6)
Maximizing Eq. (6) with respect to and setting the resulting expressions equal
to zero will produce the following values of :
[yi - ( xi )] = 0
(7)
xi [yi - ( xi )] = 0
(8)
These expressions are called likelihood equations. An interesting consequence

of Eq. (7) is:
y = (x )
i
That is, the sum of the observed values of y is equal to the sum of the expected
values. This property is especially useful in assessing the fit of the model
(Hosmer & Lemeshow, 1989).
75
After estimating the coefficients, the significance of the variables in the

model is assessed. That is, the observed values of the dependent variable
should be compared with the predicted values obtained from models with and
without the variable in the equation. In logistic regression the comparison is
based on the log likelihood function defined in Eq. (6). The likelihood ratio is:
D = 2 y i ln i
yi
1 i
+ (1 y i ) ln
1 yi
(9)
where i = ( x i ) .
The dependent variable in this study, intended use of online financial services, is
dichotomous. Therefore, the logistic model used is:
e g ( x)
P(non-intended use) = ( x) =
1 + e g ( x)
(10)
and thus
P(intended use) = 1 - (x) =
1
1+ e g ( x)
(11)
76
where g(x) represents the function of the independent variables:
g(x) = 0 + 1x1 + 1x2 + . + nxn
(12)
3.8.2 Interpretation of Logistic Regression
There are two widely used methods of interpreting the results of logistic
regression: the estimated coefficients of logistic regression and odds ratios.
Logistic regression coefficients estimate the effects of the independent variables
on the predicted log odds of an outcome. A logistic coefficient estimates the
additive change in the predicted log odds for a one-unit increase in the
independent variable, controlling for all other independent variables in the model.
In interpreting the logistic coefficient in terms of the effect on the log odds, the
threshold between negative and positive effects is 0.
Logistic regression coefficients can be used to estimate the odds ratios for
each of the independent variables in the model (SPSS, 2001). The exponential
coefficient (expi ) is called the odds ratio. The coefficients, B, are the natural
logs of the odds ratios when the odds ratio is eB. The odds ratio is the change in
odds of being in one outcome category when the value of the variable changes
by one unit. An odds ratio < 1 reflects a negative relationship while a ratio > 1
reflects a positive relationship. Odds ratios can be interpreted as the percentage
change in the dependent variable with a one-unit change in an independent
77
variable. If the odds ratio is greater than 1, the percentage change can be
calculated by the odds ratio minus 1 and then multiplied by 100. If the odds ratio
is less than 1, the percentage change can be obtained by one minus the odds
ratio and then multiplied by 100.
3.8.3 General Model Testing and Identification of Independent Variables
In general, logistic regression determines the coefficients that make the

observed outcome most likely, using the maximum-likelihood technique.
Sequential logistic regression is commonly used in cases where researchers
would like to examine collective and relative contributions of variables that belong
to each block by the order of the entry of variables into the full model. As
described in Chapter 2 of this study, the conceptual model (Figure 2.5) is based
on the Theory of Planned Behavior which suggests that attitude toward behavior,
subjective norm, and perceived behavioral control affect behavioral intention to
use online financial services.
In an attempt to follow the development of TPB, the independent variables
in this study were divided into three blocks (attitude, subjective norm, and
perceived behavioral control). Additionally, another block, demographic control
variables, was tested in the logistic regression. All four blocks (demographic
control, attitude, subjective norm, and perceived behavioral control) were
sequentially entered block-by-block into the logistic regression. Demographic
78
control variables were entered first in the logistic regression, because they are
the control variables. Next were entered attitude and subjective norm, as they are
listed in the Theory of Reasoned Action (TRA), which is based on attitude toward
a behavior and subjective norms effect on behavioral intentions. Finally,
perceived behavioral control was entered last in the logistic regression, because
it was added to the TRA model to create the TPB model. To compare the models
as blocks are entered, the value of the Goodness-of-fit 2 was used to identify the
impact of each block on the overall explanatory power of the model. The greater
the increase in 2 , the more significant the block added to the model controlling
for all other variables previously entered.
79
CHAPTER 4
RESULTS
This chapter provides the procedure and results of factor analysis used to
reduce the number of independent variables. A descriptive analysis comparing
intended users of online financial services with intended non-users of online
financial services is also presented. Following this descriptive analysis, the
results of the multivariate analyses are presented. The chapter concludes with a
discussion of the findings.
4.1 Factor Analysis

4.1.1 The Procedure
Factor analysis can be used to summarize patterns of correlations among

observed variables, and to reduce a large number of observed variables to a
smaller number of factors. Fifty-three statements were listed in Chapter 3 that
80
were measured on a 4-point scale (Mostly agree (1), Somewhat agree (2),
Somewhat disagree (3), and Mostly disagree (4)).
Comrey and Lee (1992) suggested that expected factors believed to
underlie the domain of interest be identified with statements related to each
concept as being identified. The domains of interest identified in chapter 3 were
attitude toward a behavior, subjective norm, and perceived behavioral control.
Specific statements were associated with each domain.
Using the domains noted above, principal component factor analysis with
varimax rotation was performed on each domain to get the value of factor
loadings and communalities, percents of variance, and scree plots of
Eigenvalues. In addition, a correlation matrix was obtained for the 53 items to
check for collinearity.
From the results of factor analysis, each group was arranged in order of
factor loadings, highest to lowest. Through the comparison of factor loadings,
communality, total variance, and scree plot of Eigenvalue between each domain
and all items, and correlation matrix of all 53 statements, it was determined that
all factors in the second and the third domains were internally consistent and well
defined by the statements. However, 11 statements in the first domain (attitude
toward a behavior) were not well-defined by the factor solution and 11 items did
not load on any factor. Failure of some items to load on a factor reflects
heterogeneity of items.
81
Principal component factor analysis with varimax rotation was conducted

again on each of the three domains with and without these 11 items. As a result,
the 11 items were well-fitted on 3 factors in the third domain (perceived
behavioral control). At this point, the 3 domains were labeled to give concept
groups reflecting the fact that statements did not load as expected: attitude and
knowledge, personal interaction, financial planning. The use of the 3 concept
groups leads to grouping different from that proposed in Chapter 3 (attitude,
subjective norm, and perceived behavioral control). The primary difference
related to the financial planning concept group which is broader than the attitude
domain or the perceived behavioral control domain. In section 4.1.3 the
distribution of factors among the TPB elements is discussed.
4.1.2 The Results
As described in Chapter 3, principal component factor analysis with

varimax rotation was used to reduce the number of variables related to attitude
toward a behavior, subjective norm and perceived behavioral control. The
variables were measured on a 4-point scale (Mostly agree (1), Somewhat agree
(2), Somewhat disagree (3), and Mostly disagree (4)) in the MacroMonitor
Survey. The questions were divided into three concept groups, depending on
question similarity: attitude and knowledge, personal interaction, and financial
planning. Through principal component factor analysis 15 factors were identified
82
explaining most of the variance observed in the 53 underlying variables. Factor

scores using the Anderson-Rubin approach in SPSS 11.5 were used in the
subsequent analyses. For the concept group attitude and knowledge, four factors
were identified: satisfaction with finances, poor financial knowledge, financial
decision confidence, and positive attitude toward financial institutions (Table 4.1).
For the concept group, financial planning, seven factors were identified: lack of
financial discipline, degree of risk aversion, concern with debt, positive attitude
toward credit market risk, prefer less complex financial strategies, credit use, and
minimal search for new financial products (Table 4.2). For the concept, personal
interaction, four factors were identified: professional advice unneeded, personal
relationship unimportant, personal contact desired, and one-on-one interaction
unneeded (Table 4.3).
In the following discussion each factor is described. The coding of
variables entering into the factor analysis was 1 = mostly agree to 4 = mostly
disagree. In those instances where coding was reversed the effect was 1 =
mostly disagree to 4 = mostly agree. In sections that follow, the statement
actually evaluated by the respondents is first listed. Then, if the responses were
not reverse coded, the statement is restated as to its meaning when 4 = mostly
disagree.
The four attitude and knowledge factors explained more than half of the
variance observed in the variables (56.9%). The factor, satisfaction with
finances, included the following variables:
83
I am satisfied with my households current financial situation (no change,

scale reversed).
I am afraid my household is not saving enough for its future needs (I am

not afraid my household is not saving enough for its future needs)6.
My household should make some important changes in our savings and

investments (My household should not make some important changes in
our savings and investments).
Higher factor scores indicated more satisfaction with a households current

financial situation. Satisfaction with finances explained 27.5% of the variance
observed in the factor analysis and the internal reliability was high as Cronbachs
alpha was 0.78. If Cronbachs alpha is greater than 0.7, the factor is highly
reliable, if between 0.5 and 0.7 reliability is moderately reliable, and if below 0.5
reliability is a concern (SPSS, 2000; Tabachnick & Fidell, 2001).
The second factor, financial decision confidence, included the following
variables:
I do not need advice on investment options (no change, scale reversed).
I feel qualified to make my own investment decisions (no change, scale

reversed).
While awkward, double negatives are used when restating the question. The reason is that not
enjoying something is not the same as disliking something.
84
I feel uncomfortable making judgments about the riskiness of investment (I

do not feel uncomfortable making judgments about the riskiness of
investment).
Higher factor scores indicated greater confidence with financial decisions-making

ability. The factor, financial decision confidence explained 11% of the variance
with three items and the value of Cronbachs alpha (.55) was acceptable.
The third factor, poor financial knowledge, included the following variables:
I enjoy learning about different investment opportunities (I do not enjoy

learning about different investment opportunities).
Over the past several years, I have become much more knowledgeable
about savings and investments (Over the past several years, I have not
become much more knowledgeable about savings and investments).
I consider myself a sophisticated investor (I do not consider myself a

sophisticated investor).
Higher factor scores indicated less financial knowledge. Poor financial knowledge
explained 10% of the variance with three items. Internal reliability was acceptable
with the value of Cronbachs alpha being 0.67.
The fourth factor was positive attitude toward financial institutions. It
included the following variables:
I resent any profits financial institutions make from my doing business with
them (I do not resent any profits financial institutions make from my doing
business with them).
85
Dealing with financial institutions is about as much fun as being stuck in a

traffic jam (Dealing with financial institutions is not about as much fun as
being stuck in a traffic jam).
I worry about the safety of my deposits in banks or savings institutions (I

do not worry about the safety of my deposits in banks or savings
institutions).
Higher factor scores indicated a more positive attitude toward financial

institutions. The factor, positive attitude toward financial institutions explained 9%
of the variance with three items and the value of Cronbachs alpha was 0.51.
86
Factor
Question (Variable)
Factor
Loading
.804
Satisfaction with
Finances
I am satisfied with my households current financial

situation (Scale Reversed).
(Eigenvalue = 3.58,
variance explained =
27.51%,
Cronbachs alpha =
.78)
I am afraid my household is not saving enough for its

future needs.
.780
My household should make some important changes in

our savings and investments.
.769
Financial decision
confidence
I do not need advice on investment options (Scale

Reversed).
.753
(Eigenvalue = 1.43,
10.97%,
Cronbachs alpha =
.55)
I feel qualified to make my own investment decisions

(Scale Reversed).
.670
I feel uncomfortable making judgments about the

riskiness of investment.
.519
Poor financial
knowledge
I enjoy learning about different investment opportunities.
.800
Over the past several years, I have become much more

knowledgeable about savings and investments.
.759
I consider myself a sophisticated investor.
.578
I resent any profits financial institutions make from my

doing business with them.
.754
Dealing with financial institutions is about as much fun as

being stuck in a traffic jam.
.659
I worry about the safety of my deposits in banks or

savings institutions.
.584
(Eigenvalue = 1.29,
9.88%,
Cronbachs alpha =
.67)
Positive attitude
toward financial
institutions
(Eigenvalue = 1.11,
8.57%,
Cronbachs alpha =
.51).
Table 4.1: Attitude and knowledge questions: Factor analysis.
87
For the personal interaction concept group, four factors were identified:
professional advice unneeded, personal relationship unimportant, personal
contact desired, and one-on-one interaction unneeded (Table 4.2). The four
personal interaction factors explained more than half of the variance observed in
the variables (53.5%).
The factor accounting for the greatest variance, professional advice
unneeded, included the following variables:
It is important that a financial services representative makes

recommendations I should consider (It is not important that a financial
services representative makes recommendations I should consider).
It is important that a financial services representative keeps me informed

of where I stand financially (It is not important that a financial services
representative keeps me informed of where I stand financially).
I like to discuss my financial options before making a decision about them

(I do not like to discuss my financial options before making a decision
about them).
I prefer to consult a specialist when making financial decisions (I do not

prefer to consult a specialist when making financial decisions).
I would be willing to pay for professional financial advice (I would not be

willing to pay for professional financial advice).
88
Using my financial institution as a sounding board for ideas about my

finances is important to me (Using my financial institution as a sounding
board for ideas about my finances is not important to me).
Higher factor scores indicated less desire to get professional advice. The factor
explained 23.6% of the variance with six items. Its internal reliability was high in
terms of Cronbachs alpha ( = .81).
The second factor, personal relationship unimportant, included the
following variables:
Building long-term relationships with financial institutions is more important

than always getting the best prices or newest products (Building long-term
relationships with financial institutions is not more important than always
getting the best prices or newest products).
I am more concerned with the quality of service than with cost when I deal
with financial institutions (I am not more concerned with the quality of
service than with cost when I deal with financial institutions).
It is important to me that the people I deal with for financial matters

recognize me and know me by name (It is not important to me that the
people I deal with for financial matters recognize me and know me by
name).
Chatting with the people I know at financial institutions is an important part

of doing financial business for me (Chatting with the people I know at
89
financial institutions is not an important part of doing financial business for

me).
Higher factor scores indicated that relationships with people at financial
institutions are not important. The factor, personal relationship unimportant,
explained 15.1% of the variance observed with four items and reliability was
satisfactory in terms of Cronbachs alpha ( = .75).
The third factor was personal contact desired. It included the following
variables:
I would rather use automated teller machines, personal computers, the

telephone, or mail than face representatives of financial institutions (I
would not rather use automated teller machines, personal computers, the
telephone, or mail than face representatives of financial institutions).
The less I talk to financial institution personnel the better (The less I talk to
financial institution personnel is not better).
Higher factor scores indicated greater desire for contact with people at financial
institutions. The factor explained 7.6% of the variance with three items and
Cronbachs alpha was acceptable ( = .56).
The fourth factor, one-on-one interaction unneeded, included the following
variables:
I would like to go to just one person who can help me with my savings,
investments, and credit needs (I would not like to go to just one person
who can help me with my savings, investments, and credit needs).
90
I am unlikely to try a new financial service until someone I know

recommends it (I am likely to try a new financial service until someone I
know recommends it).
I prefer to do most of my financial business in person (I do not prefer to do

most of my financial business in person).
Higher factor scores indicated less preference for one-on-one interaction. Oneon-one interaction unneeded explained 7.3% of the variance observed with three
items and reliability measure was low ( = .41).
91
Factor
Question (Variable)
Factor
Loading
.768
Professional advice
unneeded
It is important that a financial services representative

makes recommendations I should consider.
(Eigenvalue = 3.78,
23.63%,
Cronbachs alpha =
.81)
It is important that a financial services representative

keeps me informed of where I stand financially.
.766
I like to discuss my financial options before making a

decision about them.
.703
I would be willing to pay for professional financial advice.
.671
I prefer to consult a specialist when making financial

decisions.
.664
Using my financial institutions as a sounding board for

ideas about my finances is important to me.
.593
Building long-term relationships with financial institutions

is more important than always getting the best prices or
newest products.
.809
I am more concerned with the quality of service than with

cost when I deal with financial institutions.
.775
It is important to me that the people I deal with for

financial matters recognize me and know me by name.
.576
Chatting with the people I know at financial institutions is

an important than always getting the best prices or
newest products.
I would rather use automated teller machines, personal
computers, the telephone, or mail than face
representatives of financial institutions.
.576
The less I talk to financial institutions personnel the

better.
.743
I would like to go to just one person who could help me

with my savings, investments, and credit needs.
.658
I am unlikely to try a new financial service until someone I

know recommends it.
.600
I prefer to do most of my financial business in person.
.579
Personal relationship
unimportant
(Eigenvalue = 2.41,
15.06%,
Cronbachs alpha =
.75)
Personal contact
desired
(Eigenvalue = 1.21,
7.57%,
Cronbachs alpha =
.56)
One-on-one
Interaction unneeded
(Eigenvalue = 1.17,
7.28%,
Cronbachs alpha =
.41)
Table 4.2: Personal interaction questions: Factor analysis.

92
.794
For the financial planning concept group, seven factors were identified:
lack of financial discipline, degree of risk aversion, concern with debt, positive
attitude toward credit market risk, prefer less complex financial strategies, credit
use, and minimal search for new financial products (Table 4.3). The seven
financial planning factors explained more than half the variance observed in the
variables (50.6%)
The factor accounting for the greatest variance was lack of financial
discipline. This factor included the following variables:
I do a very good job of keeping my financial affairs in order (I do not do a

very good job of keeping my financial affairs in order).
I am very organized in my approach to financial matters (I am not very

organized in my approach to financial matters).
My household knows how to choose financial products and services that

are best for us (My household does not know how to choose financial
products and services that are best for us).
Managing my financial affairs is something like a hobby. I enjoy taking

care of them (Managing my financial affairs is not something like a hobby.
I do not enjoy taking care of them).
My household is successful in sticking to its budget (My household is not

successful in sticking to its budget).
I am very disciplined in savings and spending decisions (I am not very

disciplined in savings and spending decisions).
93
Often I am not sure whether the financial decisions I have made are the
right ones (no change, scale reversed).
Higher factor scores indicated less financial discipline with respect to household
financial management. The factor, lack of financial discipline, explained 17.3% of
the variance with seven items, and a Cronbach alpha of 0.82 indicated the
internal reliability was acceptable.
The second factor was degree of risk aversion. It included the following
variables:
I am willing to take high risks to realize substantial financial gains from

investments (I am not willing to take high risks to realize substantial
financial gains from investments).
It is wise to put some portion of savings in uninsured investments to get a

high yield (It is not wise to put some portion of savings in uninsured
investments to get a high yield).
I am willing to accept some risk of losing money if an investment is likely

to come out ahead of inflation in the long run (I am not willing to accept
some risk of losing money if an investment is likely to come out ahead of
inflation in the long run).
Over the long run, say 10 or 20 years, stocks will be a very good
investment (Over the long run, say 10 or 20 years, stocks will not be a
very good investment).
The stock market is too risky for me (no change, scale reversed).
94
It is very important to me to have both a guaranteed interest rate and

federal insurance on my savings (no change, scale reversed).
Higher factor scores indicated a consumer is risk-averse in stock market. The

factor, degree of risk aversion, explained 10.2% of the variance with six items
and internal reliability was acceptable with a Cronbachs alpha of 0.76.
Concern with debt was the third factor. It included the following variables:
I am concerned that our household has more debt than it should (no
change, scale reversed).
In the past, I sometimes spent more than I really wanted to because credit
cards made it easy (no change, scale reversed).
I am concerned about problems my debts would cause should I die or

become disabled (no change, scale reversed).
Higher factor scores indicated more worry about household debt. The factor,
concern with debt, explained 6.9% of the variance in the factor analysis.
Reliability was high as reflected through Cronbachs alpha (= .66).
The fourth factor was labeled, positive attitude toward credit market risk. It
included the following variables:
I would never get a personal or auto loan that had an interest rate that
could change (I would get a personal or auto loan that had an interest rate
that could change).
I would never get a mortgage that had an interest rate that could change (I
would get a mortgage that had an interest rate that could change).
95
Higher factor scores indicated risk seeking in the credit market. The factor,
positive attitude toward credit market risk, explained 5.3% of the variance with
two items and the factor also exhibited strong internal reliability as Cronbachs
alpha was 0.82.
Prefer less complex financial strategies was the fifth factor that was
extracted. It included the following variables:
Finding tax-exempt or tax-deferred investment is important to me (Finding

tax-exempt or tax-deferred investment is not important to me).
I would pay a one-time 5% fee for an investment guaranteed to grow 3%

faster than inflation (I would not pay a one-time 5% fee for an investment
guaranteed to grow 3% faster than inflation).
I think the best way to save is to have savings or investments made

automatically from my income (I do not think the best way to save is to
have savings or investments made automatically from my income).
I prefer investments where the return is in the form of long-term capital

gains to defer taxes (I do not prefer investments where the return is in the
form of long-term capital gains to defer taxes).
Higher factor scores indicated less preference for complex financial strategies.
Prefer less complex financial strategies explained 4.3% of the variance with four
items. Reliability was a concern ( = 0.41).
The sixth factor, credit use, included the following variables,
96
I would never borrow from my retirement plan (I would borrow from my

retirement plan).
I am careful not to use credit more than I should (I am not careful not to
use credit more than I should).
Higher factor scores indicated less caution when using credit. This factor
explained 3.5% of the variance observed in two items and its internal reliability
was low ( = 0.38).
Finally, the last factor, minimal search for new financial products,
consisted of the following variables:
I am always looking for the lowest cost financial services (I am not looking
for the lowest cost financial services).
I shop around for financial products/services (I do not shop around for

financial products/services).
Higher factor scores indicated less preference for searching for new financial
products. This factor explained a total of 3.2% of the variance among this set of
factors and the value of Cronbachs alpha was 0.66; its internal reliability was
acceptable.
97
Factor
Lack of financial
discipline
(Eigenvalue = 5.53,
17.29%,
Cronbachs alpha =
.82)
Degree of risk
aversion
(Eigenvalue = 3.26,
10.19%,
Cronbachs alpha =
.76)
Concern with debt

(Eigenvalue = 2.2,
6.87%,
Cronbachs alpha =
.66)
Question (Variable)
I do a very good job of keeping my financial affairs in
order.
Factor
Loading
.790
I am very organized in my approach to financial matters.
.763
My household knows how to choose financial products

and services that are best for us.
.711
Managing my financial affairs is something like a hobby. I

enjoy taking care of them.
.681
My household is successful in sticking to its budget.
.574
I am very disciplined in savings and spending decisions.
.566
Often I am not sure whether the financial decisions I have

made are the right ones (Scale Reversed).
.503
I am willing to take high risks to realize substantial

financial gains from investments.
It is wise to put some portion of savings in uninsured
investments to get a high yield.
.702
I am willing to accept some risk of losing money if an

investment is likely to come out ahead of inflation in the
long run.
.693
Over the long run, say 10 or 20 years, stocks will be a

very good investment.
.639
The stock market is too risky for me (Scale Reversed).
.616
It is very important to me to have both a guaranteed

interest rate and federal insurance on my savings (Scale
Reversed).
.559
I am concerned that our household has more debt than it

should (Scale Reversed).
.727
In the past, I sometimes spent more than I really wanted

to because credit cards made it so easy (Scale
Reversed).
.686
.697
Continued
Table 4.3: Financial planning questions: Factor analysis.
98
Table 4.3 Continued

I am concerned about problems my debts would cause
should I die or become disabled (Scale Reversed).
.608
I would never get a personal or auto loan that had an

interest rate that could change.
.840
I would never get a mortgage that had an interest rate

that could change (J2_4).
.827
Prefer less complex

financial strategies
Finding tax-exempt or tax-deferred investments is

important to me.
.594
(Eigenvalue = 1.38,
4.32%,
Cronbachs alpha =
.41)
I would pay a one-time 5% fee for an investment

guaranteed to grow 3% faster than inflation.
.570
I think the best way to save is to have savings or

investments made automatically from my income.
.524
I prefer investments where the return is in the form of

long-term capital gains to defer taxes.
.520
I would never borrow from my retirement plan.
.626
I am careful not to use credit more than I should.
.548
I am always looking for lowest cost financial services.

I shop around for financial products/services.
.830
.798
Positive attitude
toward credit market
risk
(Eigenvalue = 1.68,
5.26%,
Cronbachs alpha =
.82)
Credit use
(Eigenvalue = 1.11,
3.47%,
Cronbachs alpha =
.38)
Minimal search for
new financial
products
(Eigenvalue = 1.02,
3.19%,
Cronbachs alpha =
.66)
99
4.1.3 Linking factor analysis concept groups to TPB
The factor analysis led to three concept groups (attitude and knowledge,
personal interaction, financial planning) of related factors. The three concept
groups were not a direct match with the three elements (attitude, subjective
norm, and perceived behavioral control) in TPB. For the descriptive and the
multivariate analyses, the 15 factors identified through factor analysis were
assigned to the TPB elements based on the definition of attitude, subjective
norm, and perceived behavioral control.
Attitude is defined as an individuals positive or negative feelings
(evaluative affect) about performing a behavior (Fishbein & Ajzen, 1975). Seven
factors, satisfaction with finances, financial decision confidence, poor financial
knowledge, positive attitude toward financial institutions, degree of risk aversion,
concern with debt, and positive attitude toward credit market risk, were identified
as factors relating to attitude toward a behavior when intending to adopt online
financial services.
Individuals dissatisfied with the state of their finances may tend to have
negative attitude toward their financial situation leading them to seek new ways
to learn of financial products and services. People who are confident or
knowledgeable of financial matters may have positive feelings toward financial
decisions seeking ways to improve financial decisions. Individuals who have
positive attitude toward financial institutions may be willing to try new financial
100
products/services. Individuals who are risk seeking in stock and credit market
may also have positive feeling toward stock and credit market so that they are
more likely to use new financial products/sevices. Concern with debt may make
people want to reduce their debt. Thus, all factors listed above are related to
attitude toward a behavior for the intention to use online financial services.
Subjective norm refers to the persons perception that most people who
are important to him think he should or should not perform the behavior in
question (Fishbein & Ajzen, 1975, p. 302). Four factors (professional advice
unneeded, personal relationship unimportant, personal contact desired, one-onone interaction unneeded) were consistent with the definition of subjective norm.
Perceived need for professional advice relates to an individual need to
seek information and the approval of others. Social interaction such as personal
relationships, personal contact, and one-on-one interaction with people also
reflects a need to involve others in a decision making process. Thus, all four
factors are fitted with the definition of subjective norm.
Perceived behavioral control reflect beliefs regarding access to the
resources needed to perform a behavior (Ajzen, 1991). Resources affect
perceived behavioral control and may be formed by time, money, skills, other
specialized resources, and previous experience required to perform a behavior
(Ajzen, 1991). Four factors (lack of financial discipline, prefer less complex
financial strategies, credit use, and minimal search for new financial products) fit
with the definition of perceived behavioral control.
101
Perceived financial discipline reflects how well an individual manages

financial resources and whether they have the skills needed for financial
management. People who were not disciplined in financial matters may seek new
ways of making their financial decisions. The factor, prefer less complex financial
strategies, reflects individuals willingness to engage in activities requiring greater
levels of sophistication. Individuals with preferences for complex financial
strategies are more likely to have the knowledge and understanding needed for
successful financial management. The factor, credit use, also relates to
willingness to engage in activities requiring greater levels of knowledge and
understanding. People who search for new financial products are likely to have
more experience and knowledge. Thus, all four factors reflect the nature of
perceived behavioral control.
4.2 Descriptive Analysis
The sample for this study consists of 3,780 households who responded to
the question about current or future use of online financial services. Of these
3,780 respondents, 637 (17%) households were classified as current users of
online financial services, while 3,143 (83%) households were classified as nonusers of online financial services. Table 4.4 shows the frequency of current users
and non-users for specific online financial services. Two aspects of the table
stand out. First within the group of users, account management and investment
102
online financial service uses clearly dominate other uses. Second, while relatively
more non-users indicate account management as a possible use, the distribution
across the groups is relatively even. Appendix C provides descriptive statistics
comparing current users and non-users.
Types of Online
Financial Services
Account Management
Loans
Investment
Insurance
All (N = 3780)
362 (9.6%)
133 (3.5%)
395 (10.4%)
89 (2.4%)
Current Users
(N = 637)
362 (56.8%)
133 (20.9%)
395 (62.0%)
89 (14.0%)
Non-Users
(N = 3143)
1482 (47.2%)
1121 (35.7%)
1240 (39.5%)
1065 (33.9%)
Table 4.4: Frequency of current users and non-users for specific use of online
financial services.
4.2.1 Comparing Intended Users to Intended Non-Users
Two statistical tests (T-test and 2 test) were conducted to identify

significant differences between intended users and intended non-users of online
financial services. The results, summarized in Tables 4.5 through 4.8, show
103
significant statistical differences for most of the variables between intended users
and intended non-users of online financial services.
Table 4.5 presents the descriptive statistics and test statistics for the
control variables. With significance set at the p 0.05, the results show statistical
differences between intended users and intended non-users with respect to age,
gender, marital status, and the number of dependent children.
Intended users tend to be older (males, 52 years; females, 54 years) than
intended non-users (males, 45 years; female, 46 years). Seventeen percent of
the intended users had a female head only complete the questionnaire, while
21% of the intended non-users had a female head only complete the
questionnaire. A higher percent of both male and female intended user heads
(73%) completed the survey than non-user heads (68%). Seventy-three percent
of intended users were married or living together, compared to 67% of the
intended non-users. Intended users had more dependent children (.99) on
average compared to intended non-users (.70).
104
51.70 (1395) a
44.82 (1151)a
Pvalues
for Ttest or
2 test
.000
53.77 (1530)
45.55 (1288)
.000
n = 1689
n = 1454
.000
9.4%
17.4%
73.2%
11.4%
20.8%
67.7%
n = 1685
n = 1447
Single
Divorced
Separated
Widowed
Married
Living together but not married
12.7%
9.7%
1.7%
2.7%
68.1%
5.0%
9.7%
11.1%
1.6%
9.7%
63.4%
4.0%
Number of dependent children
0.99 (1672)
0.70 (1415)
Intended
Users
(N = 1689)
Variables
Mean age of Male Head of Household

Mean age of Female Head of Household
questionnaires
Male head only
Female head only
Both M and F heads
Marital Status
Intended nonusers
(N = 1454)
.000
.000
T-test for means and 2 test for distribution

a
mean value (number of cases)
Table 4.5: Demographic control variables of intended users and intended nonusers of online financial services.
Table 4.6 shows the results of the T-test or 2 test related to financial
behaviors and attitudes. At p .05, the T-test or 2 test identify significant
differences between intended users and intended non-users for household
105
financial strategy, attitude toward risk, satisfaction with finances, poor financial
knowledge, positive attitude toward financial institutions, degree of risk aversion
in the stock market, positive attitude toward credit market risk, and concern with
debt.
Eighty-one percent of intended users of online financial services had some
level of a financial strategy, compared to 74% of intended non-users. Intended
users were also more likely to be risk-seekers. Thirty-four percent of intended
users tended to prefer above average risk/return in the households savings and
investments, compared to 16% of intended non-users.
Intended users of online financial services were more dissatisfied with
their financial situation as measured by the Anderson-Rubin factor score than
intended non-users. Moreover, intended users of online financial services had a
more positive attitude toward financial institutions and credit market risk than
intended non-users, while intended users were more risk averse than intended
non-users. In addition, intended users had more financial knowledge than
intended non-users. Intended users were also more concerned about debt than
intended non-users.
106
Intended
Users
(N = 1689)
Variables
Intended nonusers
(N = 1454)

1 Have specific financial strategy
2 Have general financial strategy
3 Have a partial, but incomplete financial
strategy
4 Have no financial strategy
n = 1669
10.2%
45.8%
24.6%
n = 1391
14.0%
42.4%
17.2%
19.4%
26.4%
Attitude toward risk of households savings and

investments
1 Very low risk/very low return
2 Below average risk/below average return
3 Average risk/average return
4 Above average risk/above average return
5 Very high risk/very high return
n = 1689
n = 1454
4.1%
7.9%
50.3%
33.6%
4.1%
10.2%
8.3%
63.6%
14.8%
3.0%
-.1953 (1689) a
-.0923 (1689)
-.0340 (1689)
.0843 (1689)
-.1077 (1689)
.0756 (1689)
.0372 (1689)
.1598 (1454) a
-.0487 (1454)
.2249 (1454)
-.1580 (1454)
.3958 (1454)
-.0464 (1454)
-.1247 (1454)

Positive attitude toward financial institutions
Concern with debt
Positive attitude toward credit market risk
a
Pvalues
for Ttest or
2 test
.000
.000
.000
.213
.000
.000
.000
.001
.000
Table 4.6: Attitude variables (intended users compared to intended non-users).
Table 4.7 presents the results of the T-test or 2 test of variables

associated with subjective norms. With p .05, significant statistical differences
between intended users and intended non-users were found for total number of
household members, frequency of receiving advice for financial decisions, use of
107
professional financial advisors in the last 2 years and next 12 months, number of
information sources for financial service or decisions made in the last 12 months,
professional advice unneeded, personal relationship unimportant, personal
contact desired, one-on-one interaction unneeded, how to obtain financial
information both now and in the future, and how to make financial decisions in
the future.
Household size of intended users of online financial services was greater
(2.8) than non-users (2.49). Intended users received advice more frequently,
used more professional financial services, and used a larger number of
information sources for their financial decisions than intended non-users.
Intended users of online financial services perceived a greater need for
professional advice than intended non-users. Moreover, intended non-users had
a greater preference for personal contact and a greater need for one-on-one
interaction than did intended users. Intended users were more likely to obtain
financial information from professionals both now and in the near future than
intended non-users. In addition, more intended non-users (66%) than intended
users (56%) would like to make financial decisions by themselves.
108
2.80 (1689) a
2.49 (1454) a
Pvalues
for Ttest or
2 test
.000
n = 1689
n = 1454
.000
13.1%
35.4%
29.0%
22.6%
12.4%
26.4%
31.5%
29.6%
1.05 (1689)
0.79 (1454)
.000
1.40 (1689)
1.00 (1454)
.000
4.05 (1689)
2.44 (1454)
.000
-.1539 (1689)
.0455 (1689)
-.0717 (1689)
.0669 (1689)
.1554 (1454)
-.0448 (1454)
.2662 (1454)
-.2759 (1454)
.000
.012
.000
.000
How household now obtains financial

information
1 Mostly own
2 Mostly professional
3 Joint
n = 1673
n = 1420
.003
58.3%
8.7%
32.9%
63.9%
8.7%
27.4%
How household would like to obtain financial

information
1 Mostly own
3 Joint
n = 1670
n = 1416
32.3%
13.7%
54.0%
45.7%
11.4%
42.9%
How household now makes financial decisions

1 Mostly own
3 Joint
n = 1674
80.9%
1.6%
17.5%
n = 1414
80.1%
2.2%
17.7%
Intended
Users
(N = 1689)
Variables

Frequency of receiving advice for major
household financial decisions
1 Always
2 Sometimes
3 Rarely
4 Never
Use of professional financial advisors last 2
years
Use of professional financial advisors next 12
months
Number of information sources for financial
service or decisions used in the last 12 months
Professional advice unneeded
Intended nonusers
(N = 1454)
.000
.487
Continued
Table 4.7: Subjective norm variables (intended users compared to intended nonusers).
109
Table 4.7 continued

How household would like to make financial
decision
1 Mostly own
3 Joint
a
n = 1671
n = 1408
55.9%
3.5%
40.65
65.6%
3.5%
31.0%
.000
Table 4.8 presents the results of the T-test and 2 test for the perceived
behavioral control variables. Based on the T-test and 2 test at p 0.05 levels,
significant statistical differences between intended users and intended non-users
were found with respect to education level, household gross income, use of
financial computer software programs, frequency of past financial transactions,
having ATM/Debit card, lack of financial discipline, prefer less complex financial
strategies, and credit use.
Intended users of online financial services were more likely to be college
graduates (60%) than intended non-users (38%). Household gross income for
intended users of online financial services was higher than intended non-users.
Fifty percent of intended users had incomes of $60,000 or more, compared to
35% of intended non-users. Intended users of online financial services used
financial computer software more frequently (2.10) than intended non-users
(1.07). In addition, intended users more frequently used financial services in the
last 3 months (32) than intended non-users (23). More intended users (61%) had
110
ATM Cards than intended non-users (47%). Forty-four percent of intended users
had Debit cards while 32% of intended non-users had them.
Intended users of online financial services lacked financial discipline
based on the mean of the Anderson-Rubin factor score compared to intended
non-users. In addition, intended users of online financial services preferred
complex financial strategies more than intended non-users, while intended nonusers were more cautious of using credit than intended users.
111
Intended
Users
(N = 1689)
Variables
Intended nonusers
(N = 1454)
Pvalues
for Ttest or
2 test
.000
Highest level of Education Attainment among

Male/Female Householder
1 High school or less
2 Some college
3 College degree or more
n = 1682
n = 1437
10.9%
29.1%
59.9%
25.4%
36.5%
38.1%
Households 1997 gross income

1 $29,999 or less
2 $30,000-$59,999
3 $60,000-$99,999
4 $100,000 or more
n = 1689
21.0%
28.8%
27.9%
22.3%
n = 1454
32.6%
32.9%
21.4%
13.1%
.000
Confidence level in reaching financial goals

1 Extremely confident
2 Very confident
3 Somewhat confident
4 Not very confident
5 Not at all confident
n = 1673
9.3%
30.6%
42.0%
12.7%
5.3%
n = 1406
11.4%
30.2%
39.3%
12.7%
6.5%
.174
2.10 (1689) a
1.07 (1454) a
.000
39.87 (1063)
32.48 (1679)
36.73 (580)
23.39 (1418)
.198
.000
0.61 (1689)
0.44 (1689)
.1468 (1689)
-.0960 (1689)
.0614 (1689)
.0420 (1689)
0.47 (1454)
0.32 (1454)
-.1094 (1454)
.0518 (1454)
-.1581 (1454)
-.0152 (1454)
.000
.000
.000
.000
.000
.113
Number of financial computer software

programs used with home PC
Number of hours per month of PC use at home
Frequency of financial transactions in the last 3
months
Have ATM cards
Have Debit cards
Credit use
Minimal search for new financial products
a
Table 4.8: Perceived behavioral control variables (intended users compared to

intended non-users).
112
4.3 Result of Multivariate Analyses

4.3.1 Multicollinearity
Logistic regression was used in this study to examine the determinants of

a households intention to adopt online financial services. In estimating logistic
regressions, many independent variables, which may be correlated, were
regressed on the households intended use of online financial services.
Multicollinearity among the independent variables can lead to biased estimates
and inflated standard errors of the regression coefficient estimates (Knapp,
1998).
In order to limit the problem related to multicollinearity in this study, a
correlation test that could detect high intercorrelations between independent
variables was conducted (Appendix F). The test did not find independent
variables intercorrelated to a degree that would produce a multicollinearity
concern.
In factor analysis, the varimax method was used to rotate the factors,
which usually loads variables highly on factors, while maintaining orthogonal
(uncorrelated) factors (SPSS, 1998). Moreover, factor scores were obtained in
this study by the Anderson-Rubin approach that provides scores that are
uncorrelated with each other.
Collinearity diagnostics were also examined to check for multicollinearity
(Table D.2). In Appendix D, statistics such as Eigenvalues, variance inflation
113
factors (VIF), condition indices, and tolerances for individual variables are
reported.
Tolerance refers to the percentage of the variance in a given variable that
cannot be explained by the other variables. When the tolerance values are close
to 0, there is high multicollinearity and the standard error of the regression
coefficients will be inflated. In Table D.2, the tolerance values ranged from 0.40
to 0.945. One way to quantify collinearity is with variance inflation factors (VIF). A
variance inflation factor (VIF) greater than 3 is considered to indicate a serious
problem of multicollinearity. There were no VIF values over 3 in the model.
Eigenvalues close to 0 indicate that the variable was highly intercorrelated and
that small changes in the data values may lead to large changes in the estimates
of the coefficients. Only one eigenvalue (minimal search for new financial
products: 0.061) was close to 0. Moreover, this variable was not significant in the
subsequent multivariate analyses.
The condition index is a measure of the tightness or dependency of one
variable upon the others. The condition indices are computed as the square roots
of the ratios of the largest eigenvalue to each successive eigenvalue. A high
condition index is associated with variance inflation in the standard error of the
parameter estimates. Values greater than 15 indicate a possible problem with
collinearity. In this study, there was nothing over 15, and the greatest value was
11.110 (Table D.2).
114
4.3.2 Missing Values
Missing data is one of the most pervasive problems in data analysis based
on financial characteristics. As noted earlier, mean substitution was used for
most cases of missing data. The disadvantage of mean imputation is reduced
variance, because the estimate is close to the mean. To check for any bias
introduced through imputation, two logistic regressions to compare results before
and after missing data imputation were run (Table D.1). Independent variables
had the same direction and magnitude of effect on the intention to use online
financial services in both models. The logistic regression model after mean
imputation, as expected, yielded more significant coefficients, given the larger
sample size.
4.3.3 Variables
In this study, independent variables used in the descriptive analysis were

slightly different from those used in the multivariate analysis. Independent
variables used in the multivariate analysis were continuous, interval, and
categorical (Table 4.9). Age, gender of respondents, and marital status were
included as control variables in the multivariate analysis. Household age was
used for male / female headed households and individual ages for single head
115
households. The number of dependent children was not included in the

multivariate analysis as household size already captured most of this element.
The attitude variables included attitude toward risk, satisfaction with
finances, financial decision confidence, poor financial knowledge, positive
attitude toward financial institutions, degree of risk aversion in the stock market,
positive attitude toward credit market risk, and concern with debt. Since a
households financial strategy was highly correlated with other attitude variables,
it was excluded from the multivariate model.
The subjective norm variables included household size, professional
advice unneeded, personal relationship unimportant, personal contact desired,
and one-on-one interaction unneeded as its elements. The questions, frequency
of receiving advice, use of professional financial advisors in the last two years,
number of information sources used in the last 12 months, how household
now/would like to obtain financial information, and how household now/would like
to make financial decisions were highly correlated with other subjective norm
variables and excluded from the multivariate analysis.
The perceived behavioral control block of variables included education,
income, hours per month of PC use at home, frequency of financial transactions
in the past, having ATM/Debit cards, lack of financial discipline, prefer less
complex financial strategies, credit use, and minimal search for new financial
products. The confidence level in reaching financial goals was highly correlated
with perceived behavioral control variables and was excluded from the
116
multivariate analysis. Use of financial computer software with a home PC was

correlated with hours per month of PC use at home, and excluded from the
multivariate analysis.
117
Variables
Household age
Gender
Male
Female (Reference)
Male/Female
Marital status
Single
Married (Reference)
Others
Attitude Variables
Attitude toward risk
Low risk/return
Average risk/return
(Reference)
High risk/return
Positive attitude toward financial
institutions
Degree of risk aversion in the stock
market
Concern with debt
Positive attitude toward credit market
risk
Description
Actual mean age of male and female household
heads or actual age of single head
Male household head = 1, else = 0
Female household head = 1, else = 0
Both Male and Female household head = 1, else =0
single = 1, else = 0
married or living together but not married =1, else =0
divorced, separated, and widowed =1, else =0
prefers very low or below average risk/return =1,

else=0
prefers average risk/return =1, else=0
prefers above average or very high risk/return =1,
else=0
Factor scores
Factor scores
Factor scores
Factor scores
Factor scores
Factor scores
Factor scores
Household size
Number of household members
Factor scores
Factor scores
Factor scores
Factor scores
Education
High school or less
Some college(Reference)
College more
less than high school or high school graduate =1,

else=0
some college =1, else=0
college degree or more =1, else=0
Continued
Table 4.9: A summary description of the study variables (sample = 3143).
118
Table 4.9 continued

Income
$29,999 or below (Reference)
$30,000-$59,999
$60,000-$99,999
$100,000 or more
Hours per month of PC use
Frequency of 10 types of financial
transactions in the last 3 months
Have ATM cards
Have Debit cards
Credit use
Minimal search for new financial
products
=1, else=0
=1, else=0
=1, else=0
=1, else=0
Number of hours
Number of transactions
=1, else=0
=1, else=0
Factor scores
Factor scores
Factor scores
Factor scores
4.3.4 Results of Logistic Analyses
Logistic regression was used in this study to predict the dichotomous

dependent variable (intended user or intended non-user of online financial
services). Logistic regression coefficients were also used to estimate odd ratios
for the independent variables.
4.3.4.1 Role of TPB Blocks of Variables
According to the Theory of Planned Behavior (TPB) (Figure 2.3), a

behavior is determined by behavioral intention, and behavioral intention is
determined by attitude toward the behavior, subjective norm, and perceived
119
behavioral control. In the TPB model perceived behavioral control is added to the
two factors in the Theory of Reasoned Action (TRA) (attitude toward the behavior
and the subjective norm). Based on the development of these theoretical
approaches, the independent variables were divided into three blocks (attitude
toward the behavior, subjective norm, and perceived behavioral control) with
demographic control variables making up a fourth block used as controls. The
demographic control variable block was entered first. The remaining three blocks
were entered in the following order attitude toward the behavior, subjective norm,
and perceived behavioral control (Table 4.10). The value of the Goodness-of-Fit
2 was used to compare the relative contribution of each added block.
In the demographic control model, the results reported in Table 4.10 show
the fitted probabilities as a function of the intended general uses of online
financial services. The Pearson Goodness-of-Fit Chi Square was 241.577, (df =
5, p < .0001). Therefore, the model was statistically significant and intended
general uses of online financial services could be predicted correctly with this
model 10% of the time over a random assignment (Nagelkerke R2 = .099).
When adding attitude variables to the model and controlling for
demographic control variables, the impact of attitude variables was significant
(the value of block model 2 is 294.906), the Pearson Goodness-of-Fit Chi
Square was 536.483 (df = 14, p < .0001). Thus, the attitude model was
statistically significant and the intended use of online financial services could be
120
predicted correctly 21% of the time over a random assignment with the combined
demographic control and attitude model (Nagelkerke R2 = .210).
When subjective norm variables were added to the model, the impact of
subjective norm variables was significant (2 increase of 91.205), the Pearson
Goodness-of-Fit Chi Square was 627.688 (df = 19, p < .0001). The intended
general use of online financial services could be predicted correctly 24% of the
time over a random assignment with the combined demographic control,
attitudes, and subjective norm model (Nagelkerke R2 = .242).
Finally, when perceived behavioral control variables were added to the
model, the estimated model was significant (2 increase of 111.537), the Pearson
Goodness-of-Fit Chi Square was 739.226 (df = 32, p < .0001). The intended
general use of online financial services could be predicted correctly 28% of the
time over a random assignment when combined with the demographic control,
attitudes, subjective norm, and perceived behavioral control model (Nagelkerke
R2 = .280).
In Table 4.10, the model with all four blocks (demographic control,
attitude, subjective norm, and perceived behavioral control) produced a log
likelihood ratio of 3600.310 and the value of 2 of 739.226. The likelihood ratio
statistic was highly significant when compared to the 2 distribution, indicating a
good fit of the model. Adding each block into the model, the impact of attitude
variables (the value of block 2 was 294.906) was the most significant among
121
the other blocks. Thus, we can say that attitude variables had greater impact on
intention to use online financial services than the other groups.
122
Variables
Demographic
Control
Constant
-2.032***
Household age
.043***
Gender of respondents:
.262**
male head
.096
both M/F heads or another
person
Marital status: single
.003
Marital status: divorced,
-.352**
separated, widowed
Attitude Variables
Attitude toward risk of HH
savings/investments: low
risk/low return
savings/investments: high
risk/high return
Financial decision
confidence
Attitude toward financial
institutions
Concern with debt
Positive attitude toward
credit market risk
Total number of HH
members
Professional advice
unneeded
unimportant
One-on-one interaction
unneeded
Education among
male/female householder:
HS or less
Attitude
toward
Behavior
-1.659***
-1.399***
Perceived
Behavioral
Control
-1.907***
.036***
.004
.030***
-.027
.029***
-.039
.102
.086
.132
.072
-.199
.074
-.151
.183
.012
.077
.052
.000
.422***
.387***
.298**
-.298***
-.129**
-.269***
-.098*
-.202**
-.052
-.055
.178***
-.062
.170***
-.074
.149**
-.466***
-.110*
.165***
-.360***
-.073
.132**
-.262***
.030
.103*
.025
.003
-.155**
-.113*
.053
.049
-.329***
.232***
-.251***
.180***
Subjective
Norm
-.125
Continued
Table 4.10: Independent variable groups and intention for general use of online
financial services.
123
Table 4.10 continued

Education among
college degree or more
Household income
$30,000-$59,999
Household income
$60,000-$99,999
Household income
$100,000 or more
Hours per month of PC
use at home
Frequency of 10 types of
financial transactions in
the last 3 months
Have ATM cards
Have Debit cards
Prefer less complex
Credit use
Minimal search for new
financial products
2 Increase for added
variables
Pearson 2
Nagelkerke R2
***p<.001, **p<.01, *p<.05
.490***
-.021
.079
.247
.003*
.003*
.169*
.246**
.137*
-.106*
.113**
.027
241.577***
.099
294.906***
91.205***
111.537***
536.483***
.210
627.688***
.242
739.226***
.280
The results for each of the four specific types of online financial services
were similar to the results for general intended uses. The complete tables are
provided in Appendix E with the findings summarized in Table 4.11. The model
for each group of variables was significant with the percent of intended users
being predicted correctly over a random assignment model increasing with the
124
addition of another block. In addition, the 2for the fully specified model was
significant in each of the cases.
Group Variable
Demographic
Control
Variables
Attitude
Variables
2 increase
Nagelkerke R2
Pearson 2
2 increase
Nagelkerke R2
Pearson 2
2 increase
Nagelkerke R2
Pearson 2
2 increase
Nagelkerke R2
Pearson 2
Subjective
Norm
Variables
Perceived
Behavioral
Control
variables
***p<.001, **p<.01, *p<.05
Account
Management
Loans
Investment
Insurance
-.093
271.806***
283.384***
.182
556.191***
116.202***
.217
672.393***
102.094***
.247
774.486***
-.119
344.854***
227.061***
.192
571.915***
91.407***
.220
663.322***
80.279***
.244
743.601***
-.074
214.693***
386.184***
.198
600.877***
82.856***
.223
683.734***
91.586***
.250
775.319***
-.085
240.269***
162.992***
.140
403.261***
61.908***
.160
465.169***
36.335**
.171
501.504***
Table 4.11: Significance of variable blocks for the four types of online financial
services.
4.3.4.2 Factors Affecting Intention
Table 4.12 shows the odds ratios for all of the types of intended uses of
online financial services. The exponential coefficient of logistic regression (expi )
is odds ratio. The odds ratio is the increase (or decrease if the ratio is less than
one) in the odds of being in one outcome category when the value of the
125
independent variable increases by one unit. Odds ratios can be interpreted as

the percentage change in the dependent variable with a one-unit change in an
independent variable. Overall, there were no large differences in odds ratios
among the five types of intended uses of online financial services (general use,
account management, loans, investment, and insurance).
Among the demographic control variables, age was significant across all
five equations (Table 4.12). The probability of intended uses across the various
online financial services was increased by about 3% for each year increase in
age. The only other control variable found to be significant was male and female
headed households where both heads responded to the questionnaire. This was
a significant determinant for only the investment model. In this model,
households with both a male and female head completing the questionnaire were
about 35% more likely to be willing to use online financial services for investment
than households with only a female head completing the questionnaire (the
reference group).
Among the attitude variables, a preference for high risk/return savings and
investments increased the probability of using online financial services between
26% and 36% for general intended uses, loan uses and investment uses, relative
to the reference group (average risk/return). Satisfaction with finances was a
significant factor in all five types of uses. The probability of intention decreased
between 18% and 21% across the five models for each unit increase in
satisfaction with finances. Poor financial knowledge was found significant for
126
investment and insurance. As poor financial knowledge increased by one unit,

the probability of intention to use online financial services decreased by 19% for
investment use and by 9% for loan uses of online financial services. Positive
attitude toward financial institutions was a significant variable for general uses,
account management uses, and investment uses. The probability of intention to
use increased by 16% for general uses and account management uses, and by
17% for investment uses for each unit increase in positive attitude toward
financial institutions. Risk aversion was also found to be a significant determinant
of the likelihood of intention to use for general uses, account management uses,
and investment uses of online financial services. For each unit increase in
degree of risk aversion, the probability of intention to use declined by 23% for
general uses, 21% for account management uses and 20% for investment uses
of online financial services. Concern with debt increased the likelihood of
intention to use by 17% for loan uses of online financial services for each unit
increase in concern with debt. Positive attitude toward credit market risk
significantly affected intention to use across all five types of online financial
service uses. The likelihood of intention to use increased by 11-12% for each unit
increase in positive attitude toward credit market risk across the five equations.
Moving to the subjective norm variables, professional advice unneeded
was a significant determinant of the probability to use in all five equations. As
professional advice unneeded increased by one unit, the likelihood of intended
use decreased between 11% to 16%. Personal contact desired was also
127
significant across the five models. This variable, for each unit increase, leads to a
decline of 15% to 24% in the likelihood of intention to use with the largest effect
for account management uses and the smallest for loan uses of online financial
services. One-on-one interaction unneeded had a significant positive effect on
the intention probability for all five equations. A one unit increases in one-on-one
interaction unneeded reduced the likelihood of intended use by 20% for general
uses, 12% for account management uses, 14% for loan uses, 16% for
investment uses, and 19% for insurance uses of online financial services.
With respect to perceived behavioral control variables, having at least a
college degree by at least one head relative to those with some college
increased the likelihood of intended use by 63% for general uses, 46% for
account management uses, 27% for loan uses, 51% for investment uses, and
34% for insurance uses. Households with an annual income of $100,000 or more
had a likelihood of intention to use online investment uses that was 43% greater
than those in the reference group (income $29,999 or less).
Hours per month spent in PC use at home was significantly associated
with general uses and investment uses. For each additional hour of PC use per
month the likelihood of intention to use increased by 0.3% for general uses and
by 0.2% for investment uses. Each additional financial transaction increased the
likelihood of intending a general use by 0.3%. Having an ATM card increased the
probability of intended use by 18% for general uses and by 20% for account
management uses. Possession of a debit card increased intention probabilities
128
by 28% for general uses, 30% for account management uses, 18% for loan uses,
and 17% for investment uses.
Lack of financial discipline was also a significant determinant of intention
probability, except for insurance uses. A unit increase in lack of financial
discipline led to increased probability of intention to use: 15% for general uses,
18% account management uses, 15% for loan uses, and 15% for investment
uses.
Preference for less complex financial strategies was negatively associated
with the probability of intention for all five types of online financial service uses.
For each unit increase in preference for less complex financial strategies, the
probability of intending to use decreased between 10% and 16% across the five
equations.
Credit use was a significant determinant for general uses, account
management uses, and loan uses. The respondents were 12% more likely to
intend to use online financial services for general uses and account management
uses with a one-unit increase in credit use, and 18% more likely to intend to use
online financial services for loan uses.
129
General
uses
Constant
.148***
Household age
1.029***
.962
male head
1.141
person
1.201
1.013
separated, widowed
Attitude Variables
1.000
risk/low return
1.347**
risk/high return
.817**
Financial decision
.950
confidence
.929
1.160**
financial institutions
.770***
Concern with debt
1.031
1.108*
credit market risk
Total number of HH
1.003
members
Professional advice
.893*
unneeded
1.050
unimportant
.778***
1.197***
unneeded
Variables
Account
Mgt. Uses
.137***
Odds Ratio
Loan
Investmt.
Uses
Uses
.046***
.115***
Insurance
Uses
.085***
1.026***
1.069
1.038***
1.101
1.021***
1.155
1.028***
1.008
1.158
1.235
1.355**
1.103
1.218
1.047
.997
1.117
1.278
.909
1.294
1.004
.993
.840
.857
1.005
1.188
1.357**
1.255*
1.179
.818**
.985
.772***
.970
.792***
.996
.789***
.938
.957
1.159**
.976
1.079
.811***
1.174***
.906*
1.038
.787***
1.066
1.105**
.923
1.173**
1.116**
.799***
.965
1.119**
.912
1.040
1.106**
1.019
.994
.975
1.046
.865**
.837***
.887**
.860**
1.002
1.013
.984
1.048
.757***
1.124**
.786***
1.139**
.807***
1.160**
.850***
1.186***
Continued
Table 4.12: Odds ratios for five uses of online financial services.
130
Table 4.12 continued

Education among
.882
HS or less
Education among
1.632***
Household income $30,000- .979
$59,999
Household income $60,000- 1.082
$99,999
Household income
1.280
$100,000 or more
1.003*
at home
1.003*
financial transactions in the
last 3 months
Have ATM cards
1.184*
Have Debit cards
1.279**
1.147*
Prefer less complex
.899*
Credit use
1.119**
1.027
financial products
variables
Pearson 2
Nagelkerke R2
.866
.937
.837
.858
1.455***
1.274*
1.512***
1.339**
.901
1.017
1.223
.816
.988
1.167
1.209
.775
1.108
1.204
1.429*
.831
1.001
1.002
1.002*
1.001
1.001
1.001
1.000
1.001
1.196*
1.304***
1.180**
.869**
1.114
1.178*
1.148**
.845***
1.124
1.174*
1.147*
.842***
1.105
1.019
1.098
.877**
1.116**
1.072
1.183***
.956
1.045
.997
1.059
.973
111.537***
102.094***
80.279***
91.586***
36.335***
739.226***
.280
774.486***
.247
743.601***
.244
775.319***
.250
501.504***
.171
***p<.001, **p<.01, *p<.05
4.4 Discussion of Findings
In the previous section, the log-odds for the logistic regression for the five
uses of online financial services were presented (Table 4.12). The discussion of
131
these findings is focused on variables which were significant in all five equations.
Since the seven variables were significant for all five uses of online financial
services, the findings provide strong evidence that seven variables are significant
determinants affecting intention to use online financial services regardless of the
specific type of online financial service. The seven significant variables are:
satisfaction with finances, positive attitude toward credit market risk, professional
advice unneeded, personal contact desired, one-on-one interaction unneeded,
education (college degree or more), prefer less for complex financial strategies.
These variables are discussed as related to the hypotheses presented in Chapter
2.
4.4.1 Attitude toward Behavior
H1-1: Positive attitude toward a technology positively affects the adoption

of online financial services.
H1-2: Risk seeking positively affects the adoption of online financial
services.
The findings of the multivariate analyses identified two attitude variables,

satisfaction with finances and positive attitude toward credit market risk, that
were significant determinants of intention to use all types of online financial
services.
132
Higher factor scores of satisfaction with finances indicate greater

satisfaction with the households current financial situation. This factor was
negatively associated with the probability for intention to use online financial
services. This suggests that individuals who are satisfied with their financial
situation are less likely to use online financial services. The converse is that
people who are not satisfied with their current financial situation are more likely to
intend to use online financial services. Satisfaction with finances indirectly
reflects attitude toward a technology. People who are dissatisfied with their
financial situation may want to make changes to improve their financial situation
suggesting a positive attitude toward change. This is consistent with the results
of previous studies (Mols, 1998; Polatoglu & Ekin, 2001; Sathye,1999) where it
was reported that consumers who are dissatisfied with their finances are more
likely to switch or seek new ways of managing their financial matters. Using
online financial services gives the dissatisfied an opportunity for change that
could lead to improving their current financial situation leading to a favorable
attitude toward online financial services and a greater inclination to adopt online
financial services. This result supports Hypothesis 1-1. Other studies (Robey &
Farrow, 1982; Goodhue & Thompson, 1995; Goodhue, 1995; Rogers, 1995)
reported that when people perceive a new technology as being important,
personally relevant, and a good way to fulfill their needs and desires, they were
more likely to adopt the technology.
133
Positive attitude toward credit market risk was positively associated with
the probability of intention to use online financial services. Higher factor scores
reflect risk seeking in the credit market. The statements7 associated with this
factor reflect a consumers orientation toward credit market risk as reflected in
variable interest rates. Accepting the risk associated with variable rates suggests
consumers are willing to take risk to get potential advantages associated with
lower interest rates for loan uses. This suggests that such risk seekers are willing
to find and use new ways of managing their finances despite possible risks;
therefore they are more likely to adopt online financial services. Thus, this result
supports Hypothesis 1-2. Several studies (Cunningham, 1967; Oliver & Shapiro,
1993; Ho & Victor, 1994; GVU, 1999) reported that attitude toward risk was an
important factor affecting technology adoption indicating that risk seeking
attitudes were positively related to the adoption of technology. Cunningham
(1967), and Ho and Victor (1994) indicated that risk seeking is useful for
understanding consumers technology adoption.
4.4.2 Subjective Norm
H2-1: Active social interaction through social network positively affects the
adoption of online financial services.
Two statements are I would get a personal or auto loan that had an interest rate that could
change and I would get a mortgage that had an interest rate that could change.
134
H2-2: Information through social network positively affects the adoption of

online financial services.
From the results of multivariate analyses, three independent variables,

professional advice unneeded, personal contact desired, one-on-one interaction
unneeded, were significant determinants of intention to use online financial
services.
Professional advice unneeded was negatively associated with the
probability for intention to use online financial services use. Higher factor scores
indicate less desire to get professional advice. This suggests that individuals who
do not need professional advice are less likely to use online financial services, or
that people who seek professional advice related to financial matters tend to
have higher likelihood of intention to use online financial services. The
statements underlying this factor reflect a need to seek information rather than
interpersonal contact, suggesting that people who want to obtain professional
advice or information perceive online financial services as a source for financial
information leading to the adoption of online financial services. Thus, this result
supports Hypothesis 2-2. Rogers (1995) reported that the more exposure to
information about a technology, the greater probability of technology adoption.
Personal contact desired was negatively associated with the probability for
intention to use online financial services. Higher factor scores indicate greater
desire for contact with people at financial institutions. This suggests that
135
individuals who have preference for interacting with people at financial

institutions are less likely to use online financial services. One-on-one interaction
unneeded increased the probability for intention to use online financial services
use. Higher factor scores indicate less preference for one-on-one interaction.
This suggests that individuals who do not perceive one-on-one interaction as
important are more likely to use online financial services. These two findings are
not consistent with Hypothesis 2-1. A possible explanation for these unexpected
findings is that online financial services were in the early stages of adoption when
data were collected. This could result in respondents not perceiving reference
groups as being knowledgeable about online financial services leading to a
situation where social interaction did not affect intention to adopt online financial
services. Another possible reason is that people intending to adopt online
financial services were loners who did not like to interact with others. These
findings are consistent with other research (Gerrard & Cunningham, 2003;
Howcroft et al., 2002) reporting that reference groups did not affect the adoption
of technology.
4.4.3 Perceived Behavioral Control
H3-1: Education level positively affects the adoption of online financial

services.
136
H3-2: Income is positively associated with the adoption of online financial

services8.
H3-3: Previous experience positively affects the adoption of online
financial services.
From the results of the multivariate analyses, two factors, education and
prefer less complex financial strategies were significant determinants of intention
to use online financial services. The respondents who had a college degree or
more were more likely to use online financial services than the reference group
(some college). This suggests that college graduates are more likely than others
to use online financial services. Education provides people with greater
resources related to doing a behavior. Education can improve the ability to learn
and understand something new. These aspects encourage consumers to use a
new technology such as online financial services. Thus, this result supports
Hypothesis 3-1. Many studies (Rogers & Stanfield, 1968; Plummer, 1971; Rogers
& Shoemaker, 1971; Feldman & Armstrong, 1975; Adcock et al., 1977; Labay &
Kinnear, 1981; Hambrick & Mason, 1984; Amel, 1986; Taube, 1988; Igbaria et
al., 1989; Anderson et al., 1995; Tabak & Barr, 1999; Hoffman et al., 2000)
suggested that higher education levels lead to a greater likelihood of adoption of
technology. This agrees with the findings of Hoffman et al. (2000) who reported
No variable in the group of 7 significant independent variables related to income. The only time
income was significant was for investment uses.
137
that computer adopters are more likely to have higher education levels than nonadopters.
Prefer less complex financial strategies decreased the probability for
intention to use online financial services. Higher factor scores indicate less
preference for complex financial strategies. This suggests that individuals who do
not perceive complex financial strategies as important are less likely to use
online financial services. In other words, people who prefer more complex
financial strategies have a higher probability of intention to use online financial
services. This factor reflects individuals understanding and knowledge of
managing their financial matters. These individuals are more sophisticated with
respect to financial management and are more likely to be confident of their
financial management abilities. This leads to perceiving online financial services
as useful, relevant, and easy to use, and greater intention to using online
financial services. This is consistent with the findings of previous studies
(Rogers, 1995; Sathye, 1999), which found that people who are confident tend to
adopt new innovations. Thus, this result supports Hypothesis 3-3.
138
Independent Variables
Effect of Intended Use of Online Financial Services Uses

Account
Loan
Investment
Insurance
General
Mgt
Attitude Variables
+
savings/investment: high
risk/high return

+
Concern with debt

+
credit market risk
Professional advice
unneeded
+
unneeded
Education: college degree
+
or more
Income over $100,000
Hours of PC use at home
+
Frequency of financial
+
transactions in the last 3
months
Have ATM cards
+
Have Debit cards
+
+
Prefer less complex
Credit use
+
+
+
+
+
+
+
+
+
+
+
+
Table 4.13: Variables significantly affecting the likelihood of intended use of

139
CHAPTER 5
SUMMARY, IMPLICATIONS AND LIMITATIONS
This chapter presents a brief summary of the study and addresses several
limitations and implications.
5.1 Summary
The purpose of this study was to identify factors affecting the intention to
use online financial services. The effect of attitudes, subjective norm, and
perceived behavioral control variables on the intended use of online financial
services was examined controlling for differences in demographic control
variables. The study considered general intention to use online financial services
as well as intention with respect to four specific uses (account management
uses, loan uses, investment uses, and insurance uses) of online financial
services.
140
The Theory of Planned Behavior (TPB) provided the conceptual

framework for this study. TPB suggests that attitude toward behavior, subjective
norm, and perceived behavioral control affect behavioral intention to use a
technology, which, in turn, effects actual usage of the technology. The
hypotheses tested in this study were based on the TPB.
Data came from the 1998-99 MacroMonitor Survey. This data set includes
information about consumer attitudes, behaviors and motivations regarding
financial products, services, delivery methods, and institutional use. Three
thousand seven hundred eighty households completed the mail survey between
May and August of 1998.
Factor analysis was used to reduce the number of independent variables
related to attitude toward a behavior, subjective norm, and perceived behavioral
control by identifying a small number of factors that explained most of the
variance observed in a large number of independent variables. Logistic
regression was used to examine the probability of the intention to use online
financial services. The independent variables were of 4 types: demographic
control variables, attitude variables, subjective norm variables, and perceived
behavioral control variables.
This study identified seven variables significantly associated with the
probability of intention to adopt all types of online financial services (general,
account management, loans, investment, and insurance): satisfaction with
finances, positive attitude toward credit market risk, professional advice
141
unneeded, personal contact desired, one-on-one interaction unneeded, prefer

less complex financial strategies and a college degree or more.
Consumers who were satisfied with financial situations in savings and
investments had a lower probability of intention to use online financial services.
People with a positive attitude toward credit market risk were more likely to use
online financial services. Consumers who did not need professional advice were
less likely to use online financial services. Consumers who desire personal
contact were less likely to use online financial services. Consumers who did not
need one-on-one interaction had greater likelihood of intention to use online
financial services. Consumers who did not prefer complex financial strategies
were less likely to use online financial services. Consumers who had a college
degree or more were more likely to use online financial services, compared to the
reference group (some college).
5.2 Implications and Conclusion
The seven significant variables can be stated in a way that they lead to a
higher probability of using online financial services, regardless the type of use:
dissatisfaction with financial situations, risk seeking in the credit market, greater
preference for professional advice, less preference for personal contact and oneon-one interaction, a college degree or more, and greater preferences for
complex financial strategies. This suggests the following profile for consumers
142
with higher probabilities of intention to use online financial services. Consumers

who were not pleased with their households current financial situation were more
likely to have intention to use online financial services. These consumers were
ready for a change in their financial situation. People who seek greater risk in the
credit market had a greater probability of intention to use online financial
services. These individuals were willing to accept risk associated with possible
gain. Consumers who seek professional advice were more likely to use online
financial services suggesting they were information seekers. People who do not
want personal contact and one-on-one interaction were more likely to intend to
use online financial services. These people do not seek interpersonal contact as
related to their finances. Consumers who preferred complex financial strategies
were more likely to use online financial services. These consumers had greater
degree of understanding/knowledge of financial issues (i.e., somewhat
sophisticated financial managers). Consumers with a college degree or more
were more likely to use online financial services.
5.2.1 Marketing
Individuals intending to use online financial services seek professional

information related to financial matters, want to change their financial situation
and are willing to take risks. This suggests that marketers should focus on
providing financial information through online financial services since those
143
intending to adopt are willing to take risk associated with change to improve
financial situation for which they need information. Marketers should take
account of the fact that consumers with high intention to use online financial
services preferred a non-personal medium when managing their finances.
5.2.2 Consumers
The findings that people wanting professional advice to change their

financial situation and lacking a desire for personal interaction were more likely to
use online financial services has implications concerning information quality.
These individuals need accurate and complete financial information to make
decisions that will lead to the desired changes; however, as Mayer et al. (2003)
reported while these [insurance] product comparison web sites may save
consumers time and money, consumers still face the challenge of distinguishing
among these comparison sites in terms of their credibility the results suggest
that many sites fail to provide cues of credibility, and when present, only a few
cues distinguish between better and worse sitesin sum, there are few shortcuts
for consumers who want to quickly choose among life insurance comparison
sites. Consumers still have to spend time and relinquish personal information to
compare the comparison sites. This suggests caution for consumers who seek
professional information to improve their financial situations though the use of
144
online financial services. While this may be a convenient information source, the
quality of the information needs to be taken into consideration.
From the above discussion, the importance of unbiased and complete
information related to financial matters for consumers is apparent. This suggests
a possible need for indicators reflecting the quality of information provided by
online financial services. A quality scale could be used to indicate the level of
accuracy and completeness of information provided by specific sites. This could
be done by either a private organization or a governmental agency.
In addition, the quality of information issue suggests the importance of
consumer education. Through education, consumers can acquire the tools
needed to analyze the accuracy and completeness of information obtained from
5.2.3 Financial Planners
The finding that individuals having intention to use online financial services
had no desire for personal interaction reduces chances to work with financial
planners. However, financial planners should notice that people with greater
probability of intention to use online financial services also wanted to obtain
professional information to change their financial situation.
The findings of the study hold important practical implications for financial
planners. Since intended users of online financial services were found to prefer a
145
non-personal medium and have a desire for professional information related to

their financial situation, financial planners should consider the use of Internet
websites as a source of professional information for consumers. Fee-for-service
financial planners could stress the professional, unbiased nature of their
information relative to other sources.
5.2.4 Conclusion
Information on the Internet is important since the findings of this study

revealed that consumers who had higher intention to use online financial services
rely on non-personal medium and seek information to change their financial
situation and to get chances of potential gain with risk. Moreover, the quality of
information is also crucial for consumers who want to obtain accurate and
complete information when managing their finances.
5.3 Limitations
A limitation of this study relates to the nature of the sample. Data used for
this study reflected an oversample of high-income households. Therefore, the
findings of the study should not be generalized to the population as a whole. A
future study investigating the determinants of the adoption of online financial
services should use a nationally representative sample.
146
The creation of the dependent variables could also be a limitation. The

questions used to create the dependent variables are Check any online financial
services among 21 kinds you or anyone in your household would like to use with
a personal computer in your home. The created dependent variables were
binary variables (yes/no) to reflect intended use of at least one of 21 online
financial services. The reason for using binary dependent variables was to
identify factors affecting the intention to use online financial services comparing
intended users with intended non-users, rather than a study of the intensity of
intended use of online financial services among intended users. Future research
may examine the determinants that affect the intensity of intended use of online
financial services.
Rogers (1995) noted the diffusion research should consider data from
multiple points in the diffusion process. The cross-section data used in this study
does not indicate change and cannot examine what actually happens based on
intentions. Data from more than one points in time allows examination of the
determinants of actual use of online financial services and not just intention to
adopt online financial services. Also, data from multiple time periods would help
identify differences between earlier adopters and later adopters of online financial
services.
The major focus of this study was to examine the effects of attitude,
subjective norm, and perceived behavioral control on consumers intention to
adopt online financial services. However, other factors related to the Internet
147
infrastructure9 were not considered in this study. If environmental factors such as

computer ownership were included, there could be some differences in the effect
of attitude and perceived behavioral control on intention to use online financial
services.
5.4 Suggestions for Future Research
This study was conducted to explore the factors influencing intention to

use online financial services. Following are some suggestions for future studies
investigating adoption of online financial services.
First, future studies could be examined the intensity of intended use of
online financial services among intended users. Second, since online financial
services were relatively new when the data for this study were collected, this
study examined the intended use of online financial services. Future studies
could expand this study to actual usage of online financial services over time.
Finally, future studies could examine factors related to the Internet infrastructure
which affect on the use of online financial services.
For example, Internet infrastructure includes computer ownership, higher-speed access services
(cable modems, DSL, and dial-up phone service), and assess to a computer.
148
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APPENDIX A
SPSS Syntax
163
FACTOR
/VARIABLES b7_4f b7_6 c4_1 c4_2 n3_4 n3_2f n3_11f
e4_3 e4_6 e4_10 e4_11 e4_13 e4_20
/MISSING MEANSUB /ANALYSIS b7_4f b7_6 c4_1 c4_2 n3_4 n3_2f n3_11f
e4_3 e4_6 e4_10 e4_11 e4_13 e4_20
/PRINT EXTRACTION ROTATION FSCORE
/CRITERIA MINEIGEN(1) ITERATE(25)
/EXTRACTION PC
/CRITERIA ITERATE(25)
/ROTATION VARIMAX
/SAVE AR(ALL)
/METHOD=CORRELATION .
FACTOR
/VARIABLES b7_2 b7_3 b7_5 b7_11 b7_13 b7_14 b7_16 b7_17 b7_10f n3_9
j2_2 j2_3 j2_4 j2_5 j2_6 j2_8 j2_10 e4_1f e4_2 e4_4 e4_5 e4_7 e4_8 e4_19
e4_12f e4_14 e4_15 e4_16 b7_15f j2_1f j2_7f j2_9f
/MISSING MEANSUB /ANALYSIS b7_2 b7_3 b7_5 b7_11 b7_13 b7_14 b7_16
b7_17 b7_10f n3_9 j2_2 j2_3 j2_4 j2_5 j2_6 j2_8 j2_10 e4_1f e4_2 e4_4 e4_5
e4_7 e4_8 e4_19 e4_12f e4_14 e4_15 e4_16 b7_15f j2_1f j2_7f j2_9f
/EXTRACTION PC
/ROTATION VARIMAX
/SAVE AR(ALL)
FACTOR
/VARIABLES B7_1 b7_9 C4_3 C4_4 C4_5 C4_6 C4_7 C4_8 C4_9
N3_1 n3_3 n3_6 n3_7 n3_10 n3_13 n3_14
/MISSING MEANSUB /ANALYSIS B7_1 b7_9 C4_3 C4_4 C4_5 C4_6
C4_7 C4_8 C4_9 N3_1 n3_3 n3_6 n3_7 n3_10 n3_13 n3_14
/EXTRACTION PC
/ROTATION VARIMAX
/SAVE AR(ALL)
RELIABILITY
/VARIABLES=b7_4f e4_13 e4_10
/FORMAT=NOLABELS
164
/SCALE(ALPHA)=ALL/MODEL=ALPHA.
CORRELATIONS
/VARIABLES=o4_m o4_f o18 a4b a4a n1 e3 fac1_1 fac2_1 fac3_1
fac4_1 fac2_2 fac3_2 fac4_2 fac2_3 fac3_3 fac4_3 fac1_2 fac5_2
fac6_2 fac7_2 a1a n4 n5 n9 n10 n7a n7b n7c n7d o5_edu o14_rr n2
b8a_a_r b10 b11 c3 d4a_a d4a_b
/PRINT=TWOTAIL NOSIG
/MISSING=PAIRWISE .
RECODE
o18
(1=1) (ELSE=0) INTO Sex_m .
VARIABLE LABELS sex_m 'Respondents Male head'.
RECODE
o18
(2=1) (ELSE=0) INTO Sex_f .
VARIABLE LABELS sex_f 'Respondents female head'.
RECODE
o18
(3 thru 4=1) (ELSE=0) INTO sex_mf .
EXECUTE .
RECODE
a4b
(1=1) (ELSE=0) INTO single.
VARIABLE LABELS single 'Marital status single'.
RECODE
a4b
(2 thru 4=1) (ELSE=0) INTO others.
VARIABLE LABELS others 'Divorced/Separated/Widowed'.
RECODE
a4b
(5 thru 6=1) (ELSE=0) INTO marrliv.
VARIABLE LABELS marrliv 'married or living together'.
RECODE
e3
(1 thru 2=1) (ELSE=0) INTO lowrisk.
VARIABLE LABELS lowrisk 'Low risk/return'.
165
RECODE
e3
(3=1) (ELSE=0) INTO averisk.
VARIABLE LABELS averisk 'average risk/return'.
RECODE
e3
(4 thru 5=1) (ELSE=0) INTO highrisk.
VARIABLE LABELS highrisk 'high risk/return'.
RECODE
o5_edu
(3=1) (ELSE=0) INTO college .
VARIABLE LABELS college 'some college Educated'.
RECODE
o5_edu
(4=1) (ELSE=0) INTO morecol .
VARIABLE LABELS morecol 'college degree or more'.
RECODE
o5_edu
(1 thru 2=1) (ELSE=0) INTO hsorless .
EXECUTE .
RECODE
o14_rr
(1=1) (ELSE=0) INTO incom_1 .
VARIABLE LABELS incom_1 'Less than $29,999'.
RECODE
o14_rr
VARIABLE LABELS incom_2 '$30,000-$59,999'.
RECODE
o14_rr
VARIABLE LABELS incom_3 '$60,000-$99,999'.
RECODE
o14_rr
VARIABLE LABELS incom_4 'over $100,000'.
T-TEST
166
GROUPS=b17users(0 1)
/MISSING=ANALYSIS
/VARIABLES=o4_m o4_f a2a fac1_1 fac2_1 fac3_1 fac4_1 fac2_2 fac3_2
fac4_2
a1a n5 n9 n10 fac2_3 fac3_3 fac4_3 b10 b11 c3 fac1_2 fac5_2 fac6_2 fac7_2
/CRITERIA=CIN(.95) .
CROSSTABS
/TABLES=b17users BY o18 a4b n1 e3 n4 n7a n7b n7c n7d
o5_edu o14_rr n2 d4a_a d4a_b o5_edu o14_rr n2
/FORMAT= AVALUE TABLES
/STATISTIC=CHISQ
/CELLS= COUNT .
T-TEST
GROUPS=b17inten(0 1)
/MISSING=ANALYSIS
/VARIABLES=o4_m o4_f a2a fac1_1 fac2_1 fac3_1 fac4_1 fac2_2 fac3_2
fac4_2
a1a n5 n9 n10 fac2_3 fac3_3 fac4_3 b10 b11 c3 fac1_2 fac5_2 fac6_2 fac7_2
/CRITERIA=CIN(.95) .
CROSSTABS
/TABLES=b17inten BY o18 a4b n1 e3 n4 n7a n7b n7c n7d
o5_edu o14_rr n2 d4a_a d4a_b o5_edu o14_rr n2
/FORMAT= AVALUE TABLES
/STATISTIC=CHISQ
/CELLS= COUNT .
LOGISTIC REGRESSION VAR=b17inten
/METHOD=ENTER mage sex_m sex_mf single others
/METHOD=ENTER hrisk lrisk att1 att2 att3 att4 fp2 fp3 fp4
/METHOD=ENTER a1a p1 p2 p3 p4
/METHOD=ENTER hsorless morecol incom_2 incom_3 incom_4 b11 c3
d4a_a d4a_b fp1 fp5 fp6 fp7
/PRINT=GOODFIT CORR CI(95)
/CRITERIA PIN(.05) POUT(.10) ITERATE(20) CUT(.5) .
LOGISTIC REGRESSION VAR=b17inten
/METHOD=ENTER age sex_m sex_mf single others
/METHOD=ENTER lowrisk highrisk fac1_1 fac2_1 fac3_1 fac4_1 fac2_2
fac3_2 fac4_2
/METHOD=ENTER a1a fac1_3 fac2_3 fac3_3 fac4_3
/METHOD=ENTER hsorless morecol incom_2 incom_3 incom_4 b11_r
167
c3_r d4a_a d4a_b fac1_2 fac5_2 fac6_2 fac7_2

REGRESSION
/MISSING LISTWISE
/STATISTICS COEFF OUTS BCOV R ANOVA COLLIN TOL ZPP
/CRITERIA=PIN(.05) POUT(.10)
/NOORIGIN
/DEPENDENT b17inten
/METHOD=ENTER age sex_m sex_mf single others lowrisk highrisk
fac1_1 fac2_1 fac3_1 fac4_1 fac2_2 fac3_2 fac4_2 a1a fac1_3 fac2_3
fac3_3 fac4_3 hsorless morecol incom_2 incom_3 incom_4
b11_r c3_r d4a_a d4a_b fac1_2 fac5_2 fac6_2 fac7_2
/SAVE COOK LEVER .
LOGISTIC REGRESSION VAR=b17b_ac2
fac3_2 fac4_2
/METHOD=ENTER hsorless morecol incom_2 incom_3 incom_4 b11_r c3_r
d4a_a d4a_b fac1_2 fac5_2 fac6_2 fac7_2
LOGISTIC REGRESSION VAR=b17b_lo2
/METHOD=ENTER lowrisk highrisk fac1_1 fac2_1 fac3_1 fac4_1
fac2_2 fac3_2 fac4_2
/METHOD=ENTER hsorless morecol incom_2 incom_3 incom_4
b11_r c3_r d4a_a d4a_b fac1_2 fac5_2 fac6_2 fac7_2
LOGISTIC REGRESSION VAR=b17b_in2
/METHOD=ENTER lowrisk highrisk fac1_1 fac2_1 fac3_1 fac4_1
fac2_2 fac3_2 fac4_2
168

LOGISTIC REGRESSION VAR=b17b_is2
fac3_2 fac4_2
169
APPENDIX B
Lists of Possible Responses
170
1. Kinds of online financial services

In the MacroMonitor survey, the twenty-one online financial services are
paying bill, stopping/canceling checks/payments, making transfers between
accounts, inquiring about account balances, opening/closing checking/saving
accounts, applying for vehicle loans/leases, applying for a first mortgage,
applying for home equity credit lines or second mortgage, applying for other
loans/credit lines, obtaining information about loans/credit lines, buying or rolling
over CDs, buying or selling mutual funds, buying or selling stocks or bonds,
managing investment accounts, obtaining information/research reports about
investments, buying life insurance, buying health insurance, buying
homeowners/renters insurance, buying vehicle insurance, obtaining information
about insurance.
2. Financial products
The 15 financial products are provided in the MacroMonitor survey are
motor vehicle insurance, homeowners renters insurance, life insurance, stock or
bond mutual fund, annuity, certificate of deposit, disability income insurance,
retirement savings plan, loan, credit card, mortgage, home equity loan/line of
credit, Christmas/vacation club, asset management/investment management
account, and packaged/relationship banking account.
3. Past and expected use of professional financial advisors
Professional financial advisors can be defined as individuals or
representatives of institutions with whom you have established a relationship
while acquiring assistance or advice concerning households finances or
investments.
171
4. Kinds of information sources

In the MacroMonitor survey, the 21 information sources include books,
consumer magazines, other magazines, newspaper articles, financial
newsletters, financial institution brochures/written materials, radio programs,
broadcast TV programs, educational TV programs, cable TV programs, radio
advertisements, television advertisements, daily newspaper or magazine
advertisements, financial newspaper or magazine advertisements,
friends/relatives/associates, persons at workplace, financial institution personnel,
toll-free numbers, seminars, internet/online service, and other.
5. Software used on home computers.
Kinds of computer software included Intuit Quicken, Microsoft Money,
Word Processing, Electronic mail, Income tax preparation, Spreadsheets,
Database management, other financial management.
6. Ways financial transactions were conducted in the last three months
The 10 ways include talk with a representative inside a financial institution,
talk with a teller for a routine transaction, use a drive-though facility, use a walkup window, make a phone call using a touch-tone menu, make a phone call to
financial institution representative, use an ATM belonging to your financial
institution, use an ATM belonging to another financial institution, use a personal
computer connection to financial institution, and other.
172
APPENDIX C
Descriptive Statistics
For Current Users and Non-Users
173
Mean age of male head of household
Current
Users
(N = 637)
50.91(595) a
48.59 (2546) a
P-values
for T-test or
2 test
.000
Mean age of female head of household
52.31 (586)
50.01 (2818)
.000

questionnaires
1 Male head only
2 Female head only
3 Both M and F heads
4 Another person
n = 635
n = 3111
.000
53.7%
27.3%
17.7%
0.9%
37.9%
44.7%
15.5%
1.0%
Marital Status
1 Single
2 Divorced
3 Separated
4 Widowed
5 Married
6 Living together but not married
n = 636
8.3%
3.6%
0.6%
2.0%
81.9%
3.3%
n = 3132
11.3%
10.3%
1.6%
5.9%
65.9%
4.5%
.000
1.02 (629)
0.86 (3087)
.001
Variables
# of dependent children
Non-Users
(N = 3143)

a
Table C.1: Demographic control variables (current users compared to nonusers).
174
Current
Users
(N = 637)
n = 626
16.3%
60.2%
14.5%
Variables
1 Have specific financial strategy
2 Have general financial strategy
3 Have a partial, but incomplete financial
strategy
4 Have no financial strategy
Attitude toward risk of households savings and
investments
1 Very low risk/very low return
2 Below average risk/below average return
3 Average risk/average return
4 Above average risk/above average return
5 Very high risk/very high return
9 Dont know
Attitude toward financial institutions
Concern with debt
Attitude toward credit market risk
a
Non-Users
(N = 3143)
n = 3060
12.0%
44.2%
21.2%
8.9%
22.6%
n = 620
n = 3034
1.0%
6.0%
36.8%
43.9%
10.0%
2.4%
7.2%
8.4%
42.7%
25.8%
3.8%
12.2%
.1532 (637) a
.3558 (637)
-.4234 (637)
.1370 (637)
-.6187 (637)
-.0947 (637)
.1860 (637)
-.0311 (3143) a
-.0721 (3143)
.0858 (3143)
-.0278 (3143)
.1254 (3143)
.0192 (3143)
-.0377 (3143)
Table C.2: Attitude variables (current users compared to non-users).
175
P-values
for T-test
or 2 test
.000
.000
.000
.000
.000
.000
.000
.009
.000
2.66 (3143) a
P-values
for T-test
or 2 test
.000
n = 629
n = 3096
.000
10.0%
39.6%
29.3%
17.0%
2.2%
1.9%
13.0%
31.7%
19.2%
26.2%
7.4%
2.5%
Use of professional financial advisors last 2

years
1.24 (637)
0.93 (3143)
.000
Use of professional financial advisors next 12

months
1.51 (637)
1.22 (3143)
.000
# of info source for financial service or decisions

used in the last 12 months
5.34 (637)
3.31 (3143)
.000
.0534 (637)
-.0184 (637)
-.4175 (637)
.4523 (637)
n = 626
-.0108 (3143)
.0037 (3143)
.0846 (3143)
-.0917 (3143)
n = 3093
.000
.610
.000
.000
.005
65.2%
5.0%
29.9%
60.9%
8.7%
30.4%
n = 623
n = 3086
45.4%
7.9%
46.7%
38.4%
12.6%
48.9%
Current
Users
(N = 637)
2.96 (637) a
Variables
Frequency of receiving advice for major
household financial decisions
1 Always
2 Sometimes
3 Rarely
4 Never
5 Don't know
6 Unspecified

How household now obtains financial
information
1 Mostly own
3 Joint
How household would like to obtain financial
information
1 Mostly own
3 Joint
Non-users (N
= 3143)
.000
Continued
Table C.3: Subjective norm variables (current users compared to non-users).
176
Table C.3 continued

How household now makes financial decisions
1 Mostly own
3 Joint
n = 621
83.4%
0.6%
15.9%
n = 3088
80.5%
1.9%
17.6%
.049
How household would like to make financial

decision
1 Mostly own
3 Joint
a
n = 621
n = 3079
.000
68.6%
1.1%
30.3%
60.3%
3.5%
36.2%
177
Current
Users
(N = 637)
n = 636
Variables
Highest level of Education Attainment among
Male/Female Householder
1 High school or less
2 Some college
3 College degree or more
Non-users
(N = 3143)
n = 3119
P-values
for T-test
or 2 test
.000
4.4%
17.6%
78.0%
17.6%
32.5%
49.9%
Households 1997 gross income

1 $29,999 or less
2 $30,000-$59,999
3 $60,000-$99,999
4 $100,000 or more
n = 637
8.0%
15.9%
31.4%
44.7%
n = 3143
26.3%
30.7%
24.9%
18.1%
.000
Confidence level in reaching financial goals

1 Extremely confident
2 Very confident
3 Somewhat confident
4 Not very confident
5 Not at all confident
n = 630
17.1%
39.4%
35.2%
6.3%
1.9%
n = 3079
10.3%
30.4%
40.8%
12.7%
5.8%
.000
4.57 (637) a
1.62 (3143) a
.000
55.59 (621)
44.93 (633)
38.76 (1643)
28.32 (3097)
.000
.000
0.67 (637)
0.57 (637)
-.1395 (637)
.1364 (637)
.1980 (637)
-.0767 (637)
0.55 (3143)
0.38 (3143)
.0283 (3143)
-.0276 (3143)
-.0401 (3143)
.0155 (3143)
.000
.000
.000
.000
.000
.034
# Use of financial computer software programs

with home PC
# Hours per month of PC use at home
Frequency of 10 financial transactions in the last
3 months
Have ATM cards
Have Debit cards
Credit use
Minimal search for new financial products
a
Table C.4: Perceived behavioral control variables (current users compared to

non-users).
178
APPENDIX D
Logistic Regression Before Missing Data Imputation
&
Variance Inflation Factors (VIF)
179
Model
Demographic
Control
Variables
Constant
-.916**
Household age
.028***
.244
male head
.404*
person
.156
-.003
separated, widowed
Attitude Variables
risk/low return
risk/high return
Financial decision
confidence
Concern with debt
credit market risk
Total number of HH
members
Professional advice
unneeded
unimportant
unneeded
Variables
Attitude
toward
Behavior
1.776*
2.807**
Perceived
Behavioral
Control
1.165
.019**
.059
.013*
.027
.018*
.024
.419*
.337
.380
.158
-.029
.123
-.120
.178
.036
.396
.376
.303
.048*
.029*
-.023
-.100**
-.100*
-.083*
-.093*
-.082
-.078
-.030
.039
-.034
.070
-.045
.062
-.101***
-.008
.125**
-.079**
.004
.106**
-.056*
.005
.086*
-.006
-.024
-.045*
-.030
-.004
-.002
-.235***
.100*
-.189**
.108*
Subjective
Norm
Continued
Table D.1: Logistic regression: Intended users of online financial services (1 =
intended users, 0= intended non-users).
180
Table D.1 continued

Education among
HS or less
Education among
Household income
$30,000-$59,999
Household income
$60,000-$99,999
Household income
$100,000 or more
at home
last 3 months
Have ATM cards
Have Debit cards
Prefer less complex
Credit use
financial products
variables
Pearson 2
Nagelkerke R2
***p<.001, **p<.01, *p<.05
34.965***
.039
.088
.541**
-.021
.234
.153
.003
.001
.089
.199
.015
-.056
-.001
.061
81.038***
31.560***
29.690**
116.003***
.124
147.563***
.156
177.252***
.186
181
Variables
VIF
Tolerance

Household age
.640
.763
male head
.787
person
.647
.662
separated, widowed
Attitude Variables
Attitudes toward risk of HH .857
savings/investment: low
risk/low return
Attitudes toward risk of HH .702
savings/investment: high
risk/high return
.400
Financial decision
.612
confidence
.568
Positive attitudes toward
.682
Degree of risk aversion in
.468
the stock market
Concern with debt
.591
Positive attitudes toward
.945
credit market
Total number of HH
.595
members
Professional advice
.694
unneeded
.925
unimportant
.860
One-to-one interaction
.746
unneeded
Eigenvalue
Condition
Index
1.562
1.310
7.519
2.660
1.000
1.681
1.271
1.984
1.947
1.545
1.510
1.669
1.491
2.122
2.245
1.167
1.236
2.466
1.425
1.185
2.519
2.503
1.633
1.151
1.068
2.556
2.653
1.761
1.467
1.003
.997
2.738
2.746
2.137
.965
2.792
1.693
1.058
.851
.846
2.973
2.981
1.680
.758
3.149
1.442
.737
3.194
1.081
.704
3.268
1.163
1.340
.658
.653
3.379
3.393
Continued
Table D.2: The results of collinearity statistics in linear regression: Tolerance,
VIF, Eigenvalue, condition indice (1 = intended users, 0= intended non-users).
182
Table D.2 Continued

Education among
.727
HS or less
Education among
.632
Household income
.555
$30,000-$59,999
Household income
.440
$60,000-$99,999
Household income
.408
$100,000 or more
Hours per month use PC at .908
home
.885
last 3 months
Have ATM cards
.923
Have Debit cards
.938
.487
Prefer less complex
.729
Credit use
.918
.883
financial products
1.376
.612
3.506
1.583
.569
3.635
1.802
.526
3.783
2.274
.513
3.827
2.451
.479
3.962
1.101
.439
4.139
1.129
.384
4.422
1.084
1.066
2.054
1.372
.375
.341
.228
.179
4.477
4.694
5.745
6.486
1.089
1.133
.139
.061
7.353
11.110
183
APPENDIX E
Logistic Regression Results
for Four Uses of Online Financial Services
184
Variables
Demographic
Control
Constant
-2.244***
Household age
.042***
.347***
male head
.108
person
.046
-.294**
separated, widowed
Attitude Variables
risk/low return
risk/high return
Financial decision
confidence
Concern with debt
credit market risk
Total number of HH
members
Professional advice
unneeded
unimportant
unneeded
Education among
HS or less
Attitude
toward
Behavior
-1.840***
-1.639***
Perceived
Behavioral
Control
-1.990***
.033***
.124
.028***
.083
.026***
.067
.136
.129
.146
.132
-.132
.134
-.063
.198
.046
.045
.023
-.007
.261**
.232*
.172
-.316***
-.116**
-.294***
-.075
-.201**
-.016
-.010
.135***
-.006
.153***
-.044
.147**
-.448***
-.067
.161***
-.336***
-.032
.131***
-.239***
.063
.099**
.029
.019
-.190***
-.145**
-.005
.002
-.346***
.150***
-.279***
.117**
Subjective
Norm
-.143
Continued
Table E.1: Independent variable groups and intention for account management
uses.
185
Table E.1 continued

Education among
Household income $30,000$59,999
Household income
$100,000 or more
at home
last 3 months
Have ATM cards
Have Debit cards
Prefer less complex
Credit use
financial products
variables
Pearson 2
Nagelkerke R2
***p<.001, **p<.01, *p<.05
.375***
-.104
-.013
.103
.001
.001
.179*
.265***
.165**
-.141**
.110**
.070
271.806***
.093
284.384***
116.202***
102.094***
556.191***
.182
672.393***
.217
774.486***
.247
186
Variables
Demographic
Control
Constant
-3.378***
Household age
.054***
.267**
male head
.139
person
-.076
-.146
separated, widowed
Attitude Variables
risk/low return
risk/high return
Financial decision
confidence
Concern with debt
credit market risk
Total number of HH
members
Professional advice
unneeded
unimportant
unneeded
Education among
HS or less
Attitude
toward
Behavior
-2.894***
-2.700***
Perceived
Behavioral
Control
-3.087***
.042***
.143
.037***
.108
.037***
.096
.206
.210
.211
-.055
-.048
-.094
-.006
-.003
.110
-.126
-.152
-.175
.389***
.363***
.305**
-.378***
-.123**
-.360***
-.077
-.259***
-.030
-.032
.062
-.020
.064
-.025
.076
-.258***
.030
.161***
-.147**
.070
.131**
-.080
.159**
.109**
.011
-.006
-.207***
-.178***
.018
.013
-.295***
.151***
-.240***
.130**
Subjective
Norm
-.065
Continued
Table E.2: Independent variable groups and intention for loan uses.
187
Table E.2 continued

Education among
Household income
$100,000 or more
at home
last 3 months
Have ATM cards
Have Debit cards
Prefer less complex
Credit use
financial products
variables
Pearson 2
Nagelkerke R2
***p<.001, **p<.01, *p<.05
.242*
.017
.155
.186
.002
.001
.108
.164*
.138**
-.168***
.168***
-.045
344.854***
.119
227.061***
91.407***
80.279***
571.915***
.192
663.322***
.220
743.601***
.244
188
Variables
Demographic
Control
Constant
-2.135***
Household age
.032***
.495***
male head
.282**
person
.060
-.459***
separated, widowed
Attitude Variables
risk/low return
risk/high return
Financial decision
confidence
Concern with debt
credit market risk
Total number of HH
members
Professional advice
unneeded
unimportant
unneeded
Education among
HS or less
Attitude
toward
Behavior
-1.852***
-1.628***
Perceived
Behavioral
Control
-2.164***
.025***
.199*
.021***
.161
.021***
.144
.289**
.283**
.304**
.168
-.253*
.111
-.239*
.245
-.096
-.087
-.109
-.154
.319***
.290**
.227*
-.323***
-.090*
-.311***
-.058
-.233***
-.004
-.196***
.153***
-.192***
.152***
-.210***
.161***
-.438***
-.169***
.176***
-.333***
-.141**
.145***
-.224***
-.036
.113**
-.006
-.026
-.171***
-.120**
-.011
-.016
-.277***
.170***
-.215***
.149**
Subjective
Norm
-.178
Continued
Table E.3: Independent variable groups and intention for investment uses.
189
Table E.3 continued

Education among
Household income
$100,000 or more
at home
last 3 months
Have ATM cards
Have Debit cards
Prefer less complex
Credit use
financial products
variables
Pearson 2
Nagelkerke R2
***p<.001, **p<.01, *p<.05
.413***
.201
.190
.357*
.002*
.000
.117
.161*
.137*
-.172***
.044
-.003
214.693***
.074
386.184***
82.856***
91.586***
600.877***
.198
683.734***
.223
775.319***
.250
190
Variables
Demographic
Control
Constant
-2.926***
Household age
.044***
.150
male head
.066
person
.223*
-.161
separated, widowed
Attitude Variables
risk/low return
risk/high return
Financial con
Concern with debt
credit market risk
Total number of HH
members
Professional advice
unneeded
unimportant
unneeded
Education among
HS or less
Attitude
toward
Behavior
-2.546***
-2.444***
Perceived
Behavioral
Control
-2.466***
.034***
.036
.029***
.012
.028***
.008
.103
.106
.098
.251*
-.073
.305*
.009
.258
.004
.039
.018
.005
.214*
.187*
.165
-.340***
-.131**
-.106*
.041
-.320***
-.097*
-.094*
.019
-.238***
-.064
-.099*
.037
-.235***
-.061
.144***
-.144**
-.025
.120**
-.092
.040
.101**
.049
.045
-.179***
-.151**
.046
.047
-.192***
.173***
-.163***
.170***
Subjective
Norm
-.153
Continued
Table E.4: Independent variable groups and intention for insurance uses.
191
Table E.4 continued

Education among
Household income
$100,000 or more
at home
last 3 months
Have ATM cards
Have Debit cards
Prefer less complex
Credit use
financial products
variables
Pearson 2
Nagelkerke R2
***p<.001, **p<.01, *p<.05
.292**
-.203
-.255
-.185
.001
.001
.100
.019
.094
-.131**
.058
-.027
240.269***
.085
162.992
61.908***
36.335***
403.261***
.140
465.169***
.160
501.504***
.171
192
APPENDIX F
Pearsons Correlation Coefficient
193
Age/
M
Age/M
Age/F
Gender
Marital status
Fin strategy
Pos. att toward risk
Satisfac with fin
Poor fin knowled
Fin confidence
Pos att tow fin. instit
Degree of risk
aversion
Concern with debt
Pos att toward credit
mkt risk
HH size
Advice bef maj inv
decision
Use of prof advisor
last 2 yrs
Use of prof advisor
next 12 mon
Use of info last 12
mons
Prof advice
Personal relation
unneeded
Personal contact
desired
One-on-one interact
unimpor
How obtain fncl info
now
How like to obtn fncl
info
How make fin decis
now
How like to mak fin
decis
Highest edu among
M/F
Income
Confi of fin goals
Use of computer
software
Age/
F
Gender
Marital
status
Fin
strat
1
.938
.052
-.087
.128
.076
-.369
.089
-.118
-.185
-.044
.938
1
.065
-.011
.125
.045
-.366
.080
-.098
-.148
-.056
.052
.065
1
.121
.058
.043
-.093
.106
-.110
-.131
.192
-.087
-.011
.121
1
-.150
-.033
.094
-.129
.104
.073
-.096
.128
.125
.058
-.150
1
.109
-.486
.444
-.337
-.219
.328
Pos att.
toward
risk
.076
.045
.043
-.033
.109
1
-.106
.073
-.025
-.104
-.005
Satisfac
with
finances
-.369
-.366
-.093
.094
-486
-.106
1
-.362
.377
.305
-261
Poor fin
konwled
.279
.058
.265
.081
.093
-.096
-.035
.025
.346
-.089
.089
-.030
-622
.107
.241
-.131
.284
.056
.363
.049
.104
.059
.460
-.087
.013
.274
.010
.127
-.161
-.165
.005
.243
-.092
-082
-.063
.093
-.244
-.102
.175
-.283
-.042
-.015
-.065
.075
-.182
-.113
.071
-.227
.027
.042
-.102
.062
-.239
-.090
.133
-.396
-.058
.180
-.038
.178
-.004
-.023
.028
-.041
.020
.001
.086
-.023
.127
.017
.100
.035
-.229
-.218
.034
.025
-.046
-.024
.062
.003
.074
.106
-.099
.023
-.128
-.002
.124
-.191
-.123
-.121
.017
.049
-.169
-.089
.131
-.143
.044
.060
.005
.006
.030
-.047
-.137
-.014
-.158
-.152
-.002
.028
-.160
-.046
.157
-.129
.004
.012
.000
-.044
.055
-.019
-.129
-.006
.042
.074
-.133
.100
-.279
-.204
.197
-.265
-.103
.105
.144
-.029
.095
.152
-.135
.027
-.084
.367
-.116
.157
-.342
.597
-.192
-.152
.063
-.094
.322
-.544
.114
-.328
.413
-.264
.089
.080
.106
-.129
.444
.073
-.362
1
-.397
-.195
.525
Continued
Figure F.1: Pearsons Correlation Coefficient.
194
Figure F.1 Continued

Age/
M
# hrs/mo of PC
Freq of fin trans last
3mons
Have ATM cards
Have Debit cards
Lack of Fin discipline
Prefer less complex
fin strategy
Credit use
Min search for new
fin prods
Age/
F
Gender
Marital
status
Fin
strat
.024
.192
.006
.202
.030
.008
.051
.058
.122
.133
.202
-.098
.120
.134
.207
-.096
-.029
.002
.028
-.037
.152
-.062
.157
-.058
-.003
-.048
195
Satisfac
with
finances
-.072
-.047
Poor fin
konwled
.002
-.051
Pos att.
toward
risk
-.011
-.017
.021
.015
-.064
-.028
-.044
-.047
.483
.035
-.022
-.041
.057
.050
-.021
-.018
-.615
.170
-.077
-.030
.438
.139
-.015
-.004
.159
.097
.047
-.021
-.214
.028
.074
.180
.009
-.106

Fin
confi
Age/M
Age/F
Gender
Marital status
Fin strategy
Pos. att toward risk
Satisfac with fin
Poor fin knowled
Fin confidence
Degree of risk
aversion
Concern with debt
mkt risk
HH size
Advice bef maj inv
decision
Use of prof advisor
last 2 yrs
Use of prof advisor
next 12 mon
Use of info last 12
mons
Prof advice
Personal relation
unneeded
Personal contact
desired
One-on-one interact
unimpor
now
info
How make fin decis
now
How like to mak fin
decis
Highest edu among
M/F
Income
Confi of fin goals
Use of computer
software
# hrs/mo of PC
3mons
-.118
-.098
-.110
.104
-.337
-.025
.377
-.397
1
.179
-.291
Pos
att fin
instit
-.185
-.148
-.131
.073
-.219
-.104
.305
-.195
.179
1
-.294
Degree
of risk
aversion
-.044
-.056
.192
-.096
.328
-.005
-.261
.525
-.291
-.294
1
Concern
with
debt
.279
.265
.093
-.035
.346
.089
-.622
.241
-.274
-.265
.238
Pos att.
credit
mkt risk
.058
.081
-.096
.025
-.089
-.030
.107
-.131
.122
.148
-.250
-.274
.122
-.265
.148
.238
-.250
1
-.130
-.005
.025
-.041
-.167
-.028
.243
.025
.155
-.020
.284
.363
.104
.460
.013
.010
-.161
.005
-.005
-.041
-.028
Advice
for inv
decis
.056
.049
.059
-.087
.274
.127
-.165
.243
.025
-.167
.243
-.130
1
.133
.021
.162
-.057
.133
.162
.021
-.057
1
-.023
-.023
1
-.240
-.145
.097
-.003
-.508
.114
-.203
-.076
.106
.012
-.323
.184
.156
-.352
-.115
.147
.032
-.267
.388
.087
-.005
.064
.043
-.105
-.097
-.075
.033
.074
-.013
.048
.343
.016
-.047
.189
.139
-.041
-.090
-.078
-.057
.285
.218
-330
-.129
.196
.049
-.007
-.114
.094
-.101
-.092
.049
-.011
-.378
-.281
.011
-.032
.077
-.023
.022
-.233
-.112
.068
-.111
-.120
.010
-.042
-.333
-.308
-.018
-.025
.094
-.001
-.002
-.195
.131
.238
-.388
-.196
.204
.061
-.266
.218
-.362
.159
.265
-.208
.152
-.429
.299
-.377
-.258
.405
-.094
.212
-.069
.173
.208
.034
.169
-.285
.214
-.176
.009
.046
-.028
.047
.027
-.146
.055
.061
-.027
.095
.139
.109
.016
-.059
196
HH size

Fin
confi
Have ATM cards
Have Debit cards
Prefer less complex
fin strategy
Credit use
Min search for new
fin prods
.036
-.029
-.420
.197
Pos
att fin
instit
-.002
.014
-.201
.096
Degree
of risk
aversion
-.106
-.084
.188
.136
Concern
with
debt
.018
.037
.480
-.140
Pos att.
credit
mkt risk
.085
.069
-.009
.043
-.059
-.129
-.071
.117
-.036
-.023
.179
-.045
.214
.084
197
HH size
.076
.029
.112
-.043
Advice
for inv
decis
-.101
-.067
.102
.153
.080
-.031
.054
-.051
Age/M
Age/F
Gender
Marital Statu
Fin strategy
Att toward risk
Satisfac with fin
Poor fin knowled
Fin confidence
Pos att toward fin.
instit
Degree of risk
aversion
Concern with debt
mkt risk
HH size
Advice bef maj inv
decision
Use of prof advisor
last 2 yrs
Use of prof advisor
next 12 mon
Use of info last 12
mons
Prof advice
Personal relation
unneeded
Personal contact
desired
One-on-one interact
unimpor
now
info
How make fin decis
now
How like to mak fin
decis
Highest edu among
M/F
Income
Confi of fin goals
Use of computer
software
# hrs/mo of PC
3mons
Use of
prof fin
advisor
-.092
-.082
-.063
.093
-.244
-.102
.175
-.283
.025
.155
How
make fin
decs now
-.158
-.152
-.002
.028
-.160
-.046
.157
-.129
-.112
.068
How like
to mak
fin decis
.004
.012
.000
-.044
.055
-.019
-.129
-.006
-.308
-.018
Highe
st edu
M/F
.042
.074
-.133
.100
-.279
-.204
.197
-.265
.131
.238
Income
-.103
-.029
-.135
.367
-.342
-.152
.322
-.328
.218
.265
Confi of
fin
goals
.105
.095
.027
-.116
.597
.063
-.544
.413
-.362
-.208
Use of
computer
software
.144
.152
-.084
.157
-.192
-.094
.114
-.264
.159
.152
-.240
-.111
-.025
-.388
-.429
.299
-.377
-.145
.097
-.120
.010
.094
-.001
-.196
.204
-.258
.212
.405
-.069
-.094
.173
-.003
-.508
-.042
-.333
-.002
-.195
.061
-.266
.208
-.285
.034
.214
.169
-.176
.269
.164
.229
.291
-.191
.173
.566
.193
.180
.217
.246
-.135
.193
.368
.071
.049
.307
.299
-.179
.319
-.260
-.088
-.324
-.118
-.410
-.077
-.077
.116
-.030
.069
-.033
-.003
-.010
.136
.083
.097
.025
-.128
-.097
-.031
-.199
.041
-.116
-.148
.219
.248
-.122
.273
.392
.464
.299
.136
.165
-.127
.062
.234
.281
.493
.067
.063
.052
.023
.269
.561
.097
.118
-.113
.013
.164
.561
.048
.021
.081
-.022
.229
.097
.048
.505
-.229
.391
.291
-.191
.173
.118
-.113
.013
.021
.081
-.022
.505
-.229
.391
1
-.311
.437
-.311
1
-.172
.437
-.172
1
-.019
.075
-.007
-.020
-.039
.005
-.022
.152
.003
.154
.003
-.070
.246
.244
198
Have ATM cards

Have Debit cards
Prefer less complex
fin strategy
Credit use
Min search for new
fin prods
Use of
prof fin
advisor
.068
.064
-.119
-.094
How
make fin
decs now
.022
.017
-.057
-.108
How like
to mak
fin decis
.045
.053
.170
-.199
Highe
st edu
M/F
.150
.120
-.106
-.053
Income
-.027
.011
-.039
.107
.027
.105
-.007
.070
199
.149
.099
-.152
-.072
Confi of
fin
goals
-.042
-.040
.493
-.014
Use of
computer
software
.145
.168
-.054
-.049
-.009
.078
.128
.074
.033
-.020

hrs/m
of PC
use
Age/M
Age/F
Gender
Marital Statu
Fin strategy
Att toward risk
Satisfac fin.
Poor fin knowled
Fin confi
Degree of risk
aversion
Concern with debt
Pos att toward
credit mkt risk
HH size
Advice bef maj inv
decision
Use of prof advisor
last 2 yrs
Use of prof advisor
next 12 mon
Use of info last 12
mons
Prof advice
Personal relation
unneeded
Personal contact
desired
One-on-one interact
unimpor
now
info
How make fin decis
now
How like to mak fin
decis
Highest edu among
M/F
Income
Confi of fin goals
Use of computer
software
# hrs/mo of PC
3mons
.024
.006
.030
.051
.002
-.011
-.072
.009
.009
-.028
.027
Freq fn
trans
last
3mon
.192
.202
.008
.058
-.051
-.017
-.047
-.106
.046
.047
-.146
.055
-.027
Have
ATM
cards
Have
Debit
cards
Lack
of fin
discip
.122
.120
-.029
.021
-.044
-.022
-.021
-.077
.036
-.002
-.106
.133
.134
.002
.015
-.047
-.041
-.018
-.030
-.029
.014
-.084
.202
.207
.028
-.064
.483
.057
-.615
.438
-.420
-.201
.188
Pref.
Less
complex
fin strat
-.098
-.096
-.037
-.028
.035
.050
.170
.139
.197
.096
.136
.061
.095
.018
.085
.037
.069
.480
-.009
.139
.016
.109
-.059
.076
-.101
.029
-.067
-.019
.075
.068
.015
.091
.050
Credit
use
Min sear
new fin
prod
.152
.157
-.003
-.015
.159
.047
-.214
.074
-.059
-.071
-.036
-.062
-.058
-.048
-.004
.097
-.021
.028
.180
-.129
.117
-.023
-.140
.043
.179
.214
-.045
.084
.112
.102
-.043
.153
.080
.054
-.031
-.051
.064
-.119
-.094
-.027
.011
.077
.062
-.041
-.091
.002
.022
.153
.113
.054
-.137
-.079
.008
-.105
.045
.004
-.007
-.004
-.030
.060
-.041
.053
-.111
.043
.335
.060
.058
.049
-.044
-.063
-.033
-.081
-.145
-.124
-.083
027
-.089
.034
.045
.111
.106
.050
-.044
.133
.088
.000
.014
-.009
.035
.029
-.034
-.122
-.048
.077
.005
.007
.043
.054
.165
-.193
.004
.085
-.007
-.020
.022
.017
-.057
-.108
-.039
.107
-.039
.005
.045
.053
.170
-.199
.027
.105
-.022
.152
.150
.120
-.106
-.053
-.007
.070
.003
.003
.246
.154
-.070
.244
.149
-.042
.145
.099
-.040
.168
-.152
.493
-.054
-.072
-.014
-.049
-.009
.128
.033
.078
.074
-.020
1
.107
.107
1
.027
.139
-.003
.151
.029
.018
.026
-.049
.038
.065
-.035
-.004
200

hrs/m
of PC
use
Have ATM cards
Have Debit cards
Lack of Fin
discipline
Prefer less complex
fin strategy
Credit use
Min search for new
fin prods
Freq fn
trans
last
3mon
Have
ATM
cards
Have
Debit
cards
.027
-.003
.029
.139
.151
.018
1
.055
.008
.055
1
.003
.008
.003
1
-.059
-.077
-.070
.061
.037
.275
Min
sear
new
fin
prod
.017
.023
.222
.026
-.049
-.059
-.077
-.070
-.006
.088
.038
-.035
.065
-.004
.061
.017
.037
.023
.275
.222
-.006
.088
1
.072
.072
1
201
Lack
of fin
discip
Pref.
Less
complex
fin strat
Credit
use

Osu 1064325414

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Osu 1064325414

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FACTORS AFFECTING INTENTION TO USE ONLINE FINANCIAL SERVICES

Presented in Partial Fulfillment of the Requirement for

The primary purpose of this study was to identify determinants affecting

The findings based on five different dependent measures of online

Dedicated to my parents and my husband

I would like to express my deepest gratitude to my advisor, Dr. Loren V.

November 13, 1968

Born Busan, Korea

Research Assistant, Department of Economics,

M.S. Student, Department of Economics,

M.S., Family Resource Management,

Graduate Teaching and Research Associate,

Background of the Study.1

Theoretical Background & Literature Review...7

Technology Acceptance Model (TAM)..7

The Theory of Planned Behavior (TPB)..24

Summary, Limitations and Implication..140

A summary of dependent variables.46

A summary of independent variables..59

Summary of number of missing value and imputation.69

Attitude and knowledge questions: Factor analysis..87

Personal interaction questions: Factor analysis92

Financial planning questions: Factor analysis...98

Frequency of current users and non-users for specific use of online

Demographic control variables of intended users and intended non-users

Attitude variables (intended users compared to intended non-users).107

Subjective norm variables (intended users compared to intended nonusers)..109

Perceived behavioral control variables (intended users compared to

A summary description of the study variables (sample = 3143)...118

Independent variable groups and intention for general use of online

Significance of variable blocks for the four types of online financial

Odds ratios for five uses of online financial services..130

Variables significantly affecting the likelihood of intended use of online

Demographic control variables (current users compared to nonusers)..174

Attitude variables (current users compared to non-users).175

Subjective norm variables (current users compared to non-users).176

Perceived behavioral control variables (current users compared to nonusers)..178

Logistic regression: Intended users of online financial services (1 =

The results of collinearity statistics in linear regression: Tolerance, VIF,

Independent variable groups and intention for account management

Independent variable groups and intention for loan uses..187

Independent variable groups and intention for investment uses..189

Independent variable groups and intention for insurance uses191

Original Technology Acceptance Model.10

Task-Technology Fit Model...20

Theory of Reasoned Action..27

Theory of Planned Behavior.27

Conceptual model of technology adoption based on the Theory of Planned

Pearsons Correlation Coefficient..194

1.1 Background of the Study

Use of information technology (IT) products1 has grown rapidly throughout

Personal computers, cellular phones, fax machines, pagers, modem, etc.

Electronic banking as an IT is not new. Wire transfers are almost as old

Home banking is a system that involves direct online connections as well

1.2 Importance of the Study

Many people hesitate to use online financial services for a variety of

1.3 Objectives of the Study

The purpose of the study is to examine household adoption of online

1.4 Outline of the Study

Chapter 2 presents theoretical background related to technology adoption,

CONCEPTUAL MODEL, RELATED RESEARCH AND HYPOTHESES

This chapter presents an overview of the Technology Acceptance Model,

2.1 Technology Acceptance Model (TAM)