Factors Influencing Technology Acceptance in the Banking Sector: A Binary Recursive Partitioning Approach

Abstract

Public and private sector banks have both given up trying to resist technology-based systems. However, for four years, the conservatism school of thought exhibited by banks, has given rise to this conclusion and conservatism to experimentation by customers. These customers choose to side with resistance and skepticism for the management and their holdings. However, as the banks are implementing more and more technology-based systems, the deadlock is no longer the managerial and marketing acumen required to implement these systems, but the consumer acceptance. The current paper is an attempt to review the paradigms of technology evaluation to drive a working definition of acceptance. The paper tries to make an attempt of understanding customer perception about self-service banking technologies using binary recursive partitioning methodology. The results of this study indicate that the original technology acceptance model holds together for the sample studied at the bottom of the pyramid. Furthermore, based on experimental grouping by native place, whether urban or rural, only four out of nine sub-constructs held up to offer salient subgrouping of participants. Overall, the results indicated that, perceived usefulness was of vector variable to divide the participants. The results of the study will help managers design marketing and managerial acumen which will help them gain higher technology acceptance from the consumers.

Keywords: Binary Recursive Partitioning, Technology Acceptance Model, Bottom of the Pyramid, Urban and Rural Markets in India

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