Determining factors affecting intention to adopt banking recommender system: case of Iran

159 Pages·2008·1.32 MB·English

2008:036
M A S T E R ' S T H E S I S
Determining Factors Affecting
Intention to Adopt Banking
Recommender System
- Case of Iran
Nima Yahyapour
Luleå University of Technology
Master Thesis, Continuation Courses
Marketing and e-commerce
Department of Business Administration and Social Sciences
Division of Industrial marketing and e-commerce
2008:036 - ISSN: 1653-0187 - ISRN: LTU-PB-EX--08/036--SE
Determining Factors Affecting Intention to
Adopt Banking Recommender System; Case
of Iran

Supervisors:
Dr. Asosheh
Dr. Deon Nel

Referees:
Dr. Anne Engstrom
Dr. Bahreininejad

Prepared by:
Nima Yahyapour

Tarbiat Modares University Faculty of Engineering
Department of Industrial Engineering

Lulea University of Technology
Division of Industrial Marketing and E-Commerce

MSc PROGRAM IN MARKETING AND ELECTRONIC COMMERCE Joint

2008
I would like to express my foremost
and sincere gratitude to my dear parents
for their Love and Support throughout my life.
To Them I dedicate this Thesis.

Nima Yahyapour
May - 2008

1
Abstract

By the rapid growth of information technology, banks in many parts of the world are
trying to change their traditional methods and try to adapt in to new technologies. One of
the most fundamental changes of banking industry is the movement from traditional
banking to more electronic banking. But, beside the new facilities, this brings the
problem of information overload. So preparing a proper information filtering and
recommender system that could help customers to find appropriate services and facilities
based on their needs, has become a crucial issue for banks.
The purpose of this master thesis is to explain and analyze the issues that influence
Iranian bank customer’s intentions, toward banking recommender system adoption.
Based on a detailed literature review, a research model on the basis of an extended
Technology Acceptance Model (TAM) with original variables perceived usefulness,
perceived ease of use, attitude, intention to use, and external variables personality,
personal innovativeness and perceived playfulness was employed.
A quantitative research approach was conducted to get a better understanding of the
issues. The empirical data was collected from sixteen Tejarat bank (A famous
governmental bank in Iran) branches in seven different cities (classified in to four zones)
of Iran by the means of questionnaires. Data analyses were done in accordance with the
research questions and research model by SPSS 15 and Lisrel 8.53 softwares, and the
hypotheses were analyzed by Structural Equation Modeling (SEM) technique. The results
show that only personal innovativeness has no significant effect on personal usefulness of
the system. The implications of the findings for theory and practice are discussed further.
Finally the overall findings from respondent’s data show that they have great level of
intention toward using a banking recommender system that could guide them through
better choices among several available financial services.
Keywords: Recommender System, Technology Acceptance Model (TAM), Tejarat Bank,
Customer, Structural Equation Modeling (SEM), Intention
2
ACKNOWLEDGEMENTS

This master thesis has been written during fall 2007 and winter 2008 in the fulfillment of
the joint Master program in Marketing & E-Commerce held by Tarbiat Modares
University and Lulea University of Technology.

I would like to thank my LTU supervisor Dr. Deon Nel for his encouragement and
valuable guidance.

Also I would like to thank Dr. Amir Albadvi for his comments and support.

Many thanks to Mr. Sajadi from Tejarat Bank, and Mr. Yazdani from Tehran University
for their kind help.

Finally, I would like to express my great thanks to all of my friends for their help and
support during the period of my study at TMU and LTU.

Nima Yahyapour
May - 2008

3
Table of contents

Chapter One................................................................................................ 10
Introduction and Research Problem......................................................... 10
1 Introduction and Research Question..........................................................................10
1.1 Introduction.............................................................................................................11
1.2 Background.............................................................................................................12
1.3 Recommender Systems...........................................................................................12
1.4 IT in Banking Sector...............................................................................................13
1.5 Banking Recommender System..............................................................................14
1.6 Iran banking sector..................................................................................................14
1.6.1 Tejarat Bank.....................................................................................................15
1.7 Research Question..................................................................................................15
1.7.1 Research Contribution.....................................................................................15
1.8 Research Objectives................................................................................................16
1.9 Outline of the Thesis...............................................................................................16
Chapter Two................................................................................................ 19
Literature Review....................................................................................... 19
2 Literature Review.......................................................................................................19
2.1 Recommender System............................................................................................20
2.1.1 Recommender System Benefits.......................................................................21
2.1.2 Recommender System Techniques..................................................................22
2.1.2.1 Content Based Recommender Systems........................................................23
2.1.2.2 Collaborative Filtering..................................................................................24
2.1.2.3 Hybrid Systems.............................................................................................25
2.1.2.4 Nearest Neighbor..........................................................................................26
2.1.2.5 Bayesian Networks.......................................................................................27
2.1.2.6 Clustering Techniques..................................................................................27
2.1.2.6 Classifiers......................................................................................................28
2.1.2.7 Association Rules..........................................................................................28
4
2.1.2.8 Horting..........................................................................................................29
2.2 The Behavioral Adoption Theories.........................................................................29
2.2.1 Theory of Reasoned Action (TRA)..................................................................29
2.2.2 Theory of Planned Behavior (TPB).................................................................31
2.2.3 Innovation Diffusion Theory...........................................................................35
2.2.4 Technology Acceptance Model (TAM)...........................................................38
2.2.4.1 TAM Extension.............................................................................................39
2.2.4.2 TAM Antecedents.........................................................................................42
2.2.5 Differences Between Adoption Models...........................................................42
2.2.6 Adopter Categories Based Research................................................................43
2.2.6.1 Adopter Categories.......................................................................................43
2.3 Conceptual Framework and Research Model.........................................................45
2.3.1 Research Model...............................................................................................46
2.3.2 Hypotheses development.................................................................................51
Chapter Three............................................................................................. 52
Methodology................................................................................................ 52
3 Methodology..............................................................................................................52
3.1 Research Purpose....................................................................................................52
3.1.1 Exploratory......................................................................................................53
3.1.2 Explanatory......................................................................................................53
3.1.3 Descriptive.......................................................................................................53
3.2 Research Approach.................................................................................................54
3.3 Research Strategy....................................................................................................55
3.4 Sample Selection.....................................................................................................56
3.4.1 Probability Sampling.......................................................................................57
3.4.2 Non-Probability Sampling...............................................................................57
3.4.2.1 Convenience Sampling.................................................................................58
3.4.2.2 Judgment Sampling.......................................................................................58
3.4.2.3 Quota Sampling............................................................................................58
3.4.2.4 Snowball Sampling.......................................................................................59
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3.5 Questionnaire Design..............................................................................................59
3.5.1 The Questionnaire............................................................................................60
3.6 Pilot Test.................................................................................................................63
3.7 Validity and Reliability...........................................................................................63
3.7.1 Validity............................................................................................................64
3.7.2 Reliability.........................................................................................................64
3.8 Data Collection.......................................................................................................64
3.9 Chapter Summery...................................................................................................67
Chapter Four............................................................................................... 68
Data Analysis and Presentation................................................................. 68
4 Data Analysis and Presentation.................................................................................68
4.1 Descriptive Analysis...............................................................................................68
4.1.1 Reliability of the Questions.............................................................................76
4.1.2 Factor Analysis................................................................................................77
4.1.3 Different Group’s Perception...........................................................................81
4.2 Statistical Analysis..................................................................................................82
4.2.1 One-Sample t-test.............................................................................................82
4.2.2 Comparison of Survey Variables.....................................................................84
4.2.3 Structural Equation Modeling (SEM)..............................................................89
4.3 Variable Effects......................................................................................................93
4.3.1 Direct Effects of Variables and Results of Hypothesis Test............................93
4.3.2 Indirect Effects of Variables............................................................................94
4.3.3 Total Effects of Variables................................................................................95
4.4 Model’s Overall Goodness of Fit............................................................................96
4.5 Suggested Modifications For Model.......................................................................96
4.6 Additional Statistics and Comparisons...................................................................97
Chapter Five..............................................................................................103
Conclusions................................................................................................103
5 Conclusions..............................................................................................................103
5.1 Theoretical Implications.......................................................................................103
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5.2 Managerial Implications.......................................................................................104
5.3 Innovative Part of the Research............................................................................105
5.4 Limitations and Suggestions for Future Research................................................106
5.5 Conclusion............................................................................................................106
References:..................................................................................................................108
Appendix A. Questionnaire (English version)............................................................113
Appendix B. Final Questionnaire (Farsi version).......................................................117
Appendix C. Tukey HSD Analysis.............................................................................124

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List of Tables
Table 2.1 ....................................................................................................... 47
Table 2.2 ....................................................................................................... 48
Table 2.3 ....................................................................................................... 49
Table 2.4 ....................................................................................................... 50
Table 3.1 ....................................................................................................... 55
Table 4.1 ....................................................................................................... 69
Table 4.2 ....................................................................................................... 70
Table 4.3 ....................................................................................................... 72
Table 4.4 ....................................................................................................... 75
Table 4.5 ....................................................................................................... 76
Table 4.6 ....................................................................................................... 77
Table 4.7 ....................................................................................................... 78
Table 4.8 ....................................................................................................... 79
Table 4.9 ....................................................................................................... 80
Table 4.10 ..................................................................................................... 81
Table 4.11 ..................................................................................................... 81
Table 4.12 ..................................................................................................... 82
Table 4.13 ..................................................................................................... 83
Table 4.14 ..................................................................................................... 83
Table 4.15 ..................................................................................................... 84
Table 4.16 ..................................................................................................... 85
Table 4.17 ..................................................................................................... 85
Table 4.18 ..................................................................................................... 86
Table 4.19 ..................................................................................................... 86
Table 4.20 ..................................................................................................... 87
Table 4.21 ..................................................................................................... 87
Table 4.22 ..................................................................................................... 88
Table 4.23 ..................................................................................................... 93
Table 4.24 ..................................................................................................... 94
Table 4.25 ..................................................................................................... 94
Table 4.26 ..................................................................................................... 95
Table 4.27 ..................................................................................................... 95
Table 4.28 ..................................................................................................... 95
Table 4.29 ..................................................................................................... 95
Table 4.30 ..................................................................................................... 98
Table 4.31 ................................................................................................... 100
Table 4.32 ................................................................................................... 101
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