Determinants of Technology Adoption Propensity of Customers: An Application of Ordered Logit Approach

The behaviour of the customers towards adopting new and improved technologies introduced by the commercial banks has been viewed as one of the central concerns for the banking industry and the policymakers. Considering this, numerous research attempts have been made for analysing the technology adoption (TA) behaviour of the customers. But attempts of such kind lack in exploring the factors that affect TA propensity (TAP) of customers particularly with reference to banking customers in India.

The aim to make dent in the existing literature, the current piece of research work has been structured. The study is empirical in nature, and the sample includes banking customers in India who were selected from 12 different cities of India by applying multi-stage stratified sampling approach. Further, multi-ordered logit regression approach has been employed to analyze the responses.

The study unveil that the TAP of the banking customers in India depends on perceived usefulness, facilitating conditions, customer value dimensions (namely economic, emotional and social values), attitude, behavioural intentions towards TA and socio-economic characteristics of the customers (namely age and family income).

Being novel in nature, the current study enriches the existing literature by revealing the antecedents of TAP of the customers. Based on the said analysis, banks are suggested to adopt different means and methods focused on enhancing usefulness of technology, the ease with which technology can be used and providing requisite support for operating the technology. Further, it has also been recommended that banks should focus on enhancing attitude of the customers towards technology adoption, their intentions towards technology adoption and value perception of the customers towards technology adoption.