Segmenting Mobile Banking Users Based on the Usage of Mobile Banking Services

Abstract

Mobile banking is transforming the way the banking industry creates and delivers value to its customers. This channel of banking has not only reduced the cost of access to banking services but has also created opportunities for service differentiation. Thus, for banks, their understanding of customer segments in terms of the degree of various mobile banking services availed by consumers is critical to the sustainability of the banking industry. This study integrates trust and lifestyle compatibility in the technology acceptance model (TAM) to develop a conceptual framework for discussing consumer attitude and intention towards mobile banking services. A sample of 367 respondents was asked to complete a survey. This article attempts to segment the consumers into distinct groups based on whether users avail mobile banking services or not. The hierarchical clustering technique was used for segmentation. Three clusters were obtained which were labelled as Active User, Traditional Follower and Laggard. A profile of each cluster was developed in terms of their demographics (age, gender, income, etc.). Further, analysis of variance was conducted to determine whether antecedents to mobile banking, namely ease of use, convenience, efficiency, trust and lifestyle compatibility significantly differ between the clusters. For antecedents where the difference was found to be significant, a post-hoc analysis was conducted to determine the difference between various cluster pairs. A similar analysis was conducted for Attitude and Intention variables to find out whether it varies between the cluster pairs. The results showed that a statistically significant difference exists between clusters with respect to the various antecedents to mobile banking, attitude and intention. Managerial implications and social implications of the study are also discussed.