Research Proposal in Partial Fulfilment of the Requirements of the Degree of International Master of Business Administration 2019 CHAPTER 1 4 INTRODUCTION

An Empirical Research On The Factors
That Affecting The Consumers’ Intention
To Use Online Financial Services.
FONG JIA JUNN
Research Proposal in Partial Fulfilment of the
Requirements of the
Degree of International Master of Business Administration
2019
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Table of Contents
CHAPTER 1........................................................................................................................................4
INTRODUCTION...............................................................................................................................4
1.1 Background of the Research Study..............................................................................................4
1.2 Research Problem........................................................................................................................5
1.3 Research Aim..............................................................................................................................7
1.4 Research Objectives.....................................................................................................................8
1.5 Research Questions......................................................................................................................9
1.6 Significance of the Study...........................................................................................................10
CHAPTER 2......................................................................................................................................11
LITERATURE REVIEW.................................................................................................................11
2.1 Dependent Variable (DV) – Consumers’ intention to use online financial services...................11
2.2 Independent Variable 1 (IV1) – Security...................................................................................12
2.3 Independent Variable 2 (IV2) – Advertising..............................................................................13
2.4 Independent Variable 3 (IV3) – Marketing Promotion..............................................................14
2.5 Independent Variable 4 (IV4) – Technology Acceptance Model (TAM)...................................15
2.6 Literature Review Summary......................................................................................................15
2.7 Research Model.........................................................................................................................16
CHAPTER 3......................................................................................................................................17
RESEARCH METHODOLOGY.....................................................................................................17
3.1 Research Methodology Overview..............................................................................................17
3.2 Research Design........................................................................................................................17
3.3 Data Collection Method.............................................................................................................18
3.4 Sampling Process.......................................................................................................................18
3.5 Data Analysis.............................................................................................................................19
3.6 Research Methodology Summary..............................................................................................20
CHAPTER 4......................................................................................................................................21
RESULTS...........................................................................................................................................21
4.1 Expected Outcome.....................................................................................................................21
4.2 Demographic Data Analysis................................................................................................23
4.3 Validity and Reliability Analysis.........................................................................................29
4.4 Research Question 1 Analysis..............................................................................................30
4.5 Research Question 2 Analysis..............................................................................................31
4.6 Research Question 3 Analysis..............................................................................................32
4.7 Research Question 4 Analysis..............................................................................................33
4.8 Research Question 5 Analysis..............................................................................................34
4.9 Results Summary.................................................................................................................36
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Chapter 5............................................................................................................................................37
Discussion...........................................................................................................................................37
5.1 Conclusion...........................................................................................................................37
5.2 Research Findings Relationship with Previous Literature Reviews.....................................37
Chapter 6............................................................................................................................................39
Recommendation...............................................................................................................................39
6.1 Practical Implications..........................................................................................................39
6.2 Theoretical Implications......................................................................................................39
References..........................................................................................................................................41
Appendix.............................................................................................................................................54
Appendix 1 - Literature Review Summary......................................................................................54
Appendix 2 - Cover Letter for Survey Questionnaires.....................................................................58
Appendix 3 – Survey Overview Table.............................................................................................59
Appendix 4 - Survey Questionnaires...............................................................................................60
Table of Figure
Figure 1 DV Consequences Diagram....................................................................................................6
Figure 2 Impact of the research DV in solving the research problem diagram......................................7
Figure 3 Research Questions.................................................................................................................9
Figure 4 Significance of Study............................................................................................................10
Figure 5 Research Model.....................................................................................................................16
Figure 6 Sample Size Calculation........................................................................................................19
Figure 7 Expected Outcomes of Research Study.................................................................................23
Figure 8 pie chart showing the male and female proportion in the sample..........................................24
Figure 9 pie chart showing the distribution of the age group in the sample.........................................25
Figure 10 pie chart showing the distribution of the income level group in the sample........................26
Figure 11 pie chart showing the distribution of the educational level group in the sample..................27
Figure 12 pie chart showing the usage of online financial transaction in the sample...........................28
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CHAPTER 1
INTRODUCTION
1.1 Background of the Research Study
As the continually growth of international economy, the institutional and market
completeness advanced, the commercial banking is forced to undergo rapid change.
Technology is the major key driver for these developments, which is breaching the regulatory
barriers in order to create new products, services and market opportunities. These products
and services includes delivering financial services in electronic and remote distribution
channel via mobile application or website at any time, everywhere with faster speed and
lower cost compared to the traditional retail banking systems (Faullant, 2008 ; Daniel, 1999 ;
Reiser, 1997). Thus, it helps to embrace the advance system-oriented business practices and
management process for all industries (Brodie et al, 2007; David et al, 2008).
Based on Hutchinson (2000), there are statistics indicate that Internet Banking shows
up more than 50% of all banking transaction with 15% expanding rate per year. Yet, data
information security and privacy being the primary concerns for both business and consumers
(Ernst & Young, 1999). Hence, the security and privacy of the Internet Banking transactions
as well as the processing of personal data information could be the issue for online financial
services adoption (Hutchinson & Warren, 2001).
The underlying models employed in this research given a better understanding of the
personal perception on security and privacy and attitudes factors that will potentially help to
consummate the intention to use the online financial services by giving supported data
information to increase the intention to use the services. In addition, this paper reports the
results of quantitative study of the on security, privacy and marketing strategy as well as their
attitudes towards online financial services. The findings will be useful for both banking
sectors and researchers who seek to further understand the factors relevant to online financial
services
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1.2 Research Problem
Based on Gartner Group’s 1999 report, online banking has been rapidly growth from
10 million adults in 1999 to 35 million adults by year 2003 (Barto, 1999). Besides that,
China Merchants Bank has launch the first internet banking system in 1997 and spread
rapidly within mainland China (Li, 2002). Furthermore, Maybank was the first bank to
provide online financial services in Malaysia on June 15, 2000. However, this online
financial services have not been rapidly growth, implemented by the other banks and
substituted for traditional banking system. Moreover, there were about 60% of people
who used cheques or physical cash as primary source. According to Ndubisi & Shinti
(2006), Internet Banking in Malaysia is still in an infancy stage, which given difficulty for
banking industry to develop and use the online financial services and system.
There is research that shows evidence to support a positive relationship between personal
perceptions and the intention to use the online financial services. The personal
perceptions were found to be the consumers’ intention of using the online financial
services (Black et al, 2001). However, Ndubisi (2006) stated that there is an additional
dimension were found to influence people’s intention of use and the decisions making,
highlighting the personal attitudes of the intention and decision for using the online
financial services.
Hence, this research focus in the intention to use online financial services by users in
evidence among people in Malaysia. It will help in further understanding on the factors
that decreasing the intention to use the online financial services among people in
Malaysia.
The research problem aim to focus on the decreasing of the intention to use the online
financial services which lead the transaction volumes of all banking industries reduced.
Besides that, it will also rise in the Public Relation efforts. As a result, it will impact the
business performance and revenue of the bank. Hence, the bank will lose their brand
reputation, meanwhile increase the brand switching behavior.
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The following shows the DV consequences diagram.
Figure 1 DV Consequences Diagram
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1.3 Research Aim
This research aims to increase the intention to use the online financial services among
people in Malaysia in order to increase the transaction volumes and brand reputation,
meanwhile minimize the Public Relation efforts and brand switching behavior of all
banking industries. Hence, the business performance and revenue of the bank will
increase.
The following shows diagram of the impact of the research DV in solving the research
problem.
Figure 2 Impact of the research DV in solving the research problem diagram
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1.4 Research Objectives
Based on the research aim, there are several research objectives been developed in this
research study develops as shows in the following:
RO1 – To examine the relationship between security and consumers’ intentions to use
online financial services.
RO2 – To analyze the relationship between advertising and consumers’ intentions to
use online financial services.
RO3 – To investigate the relationship between marketing promotions and consumers’
intentions to use online financial services.
RO4 – To assess the relationship between Technology Acceptance Model (TAM) and
consumers’ intentions to use online financial services.
RO5 – To evaluate the most important factor, such as security, advertising,
Technology Acceptance Model (TAM) and marketing promotions that impacting the
consumers’ intentions to use online financial services.
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