DETERMINANTS OF CONSUMER ADOPTION TOWARD DIGITAL BANKING SERVICE: EXTENDING TAM-TPB INTEGRATION MODEL

• Main Author: Caisar Wiraputra, Rabialdy
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62443
• Institution: Institut Teknologi Bandung

The pandemic COVID-19 worsening the stagnant performance and the low efficiency of Indonesia banking industry. Digitization in banking industry is considered as the way to improve the level of performance and also efficiency, even in the uncertainty condition such as the pandemic. This study aims to first, determine factors that influence consumer to use digital banking service; and second, propose digital marketing strategy based on the significant determinant factors, that could help banking industry to increase consumer adoption toward digital banking service. Based on literature review, this study proposed the integration of Technology Acceptance Model (TAM) and Theory Planned Behavior (TPB) and extended the integration model by adding three variables i.e., perceived severity of COVID-19, trust and perceived security. Then this study conducted mixed methodology of quantitative and qualitative research. In the first stage of research, quantitative survey was conducted to 200 respondents, which represent potential customers of digital banking service. Partial Least Square-Structural Equation Model (PLS-SEM) analysis was conducted to assess the relationship among variables in the proposed TAM and TPB integration model. The result shows that perceived severity of COVID-19 indirectly influences attitude toward digital banking service with perceived of security, trust, perceived of usefulness and perceived ease of use as the mediating factors. Perceived severity of COVID-19 also directly influences subjective norm and perceived behavioral control. Then, attitude directly influences intention to use; and intention to use directly influences the actual use of digital banking service. In addition, this study reveals new finding perceived behavioral control as the mediating factor of subjective norm and intention to use. In the second stage of research, qualitative in-depth interview was conducted to ten respondents. The interview result provided support evidence to the quantitative analysis result. Based on the research findings, the researcher proposed digital marketing strategy, which consists of first, customer persona, the representation of ideal digital banking customer; and second, digital banking service customer journey experience design in the awareness, consideration, purchase, and post-purchase stages. As the theoretical contribution, this study has successfully developed the extending TAM and TPB integration model with perceived severity of COVID-19, trust and perceived of security as the additional variables to the original model. Then, as the practical contribution, this study recommends customer-based digital marketing strategy to help improve banking industry performance.