Research Article Open Access

CONSUMERS’ PERCEIVED RISK AND ITS EFFECT ON ADOPTION OF ONLINE BANKING SERVICES

Fereshteh Farzianpour1, Mahsa Pishdar2, Masoumeh Danesh Shakib3 and Mohammad Reza Seyyed Hashemi Toloun4
  • 1 Department of Health Management and Economics, School of Public Health, Tehran University of Medical Sciences, Tehran, Iran
  • 2 Department of Production and Operation Management, Allameh Tabatabaii University, Tehran, Iran
  • 3 Department of Management, Sciences and Research Branch of Islamic Azad University, Tehran, Iran
  • 4 Department of Management, Sohrevardi Institution, Qazvin, Iran

Abstract

Although online banking services have gained a lot of attention, many consumers are still not willing to use them. Since online banking services can be a competitive advantage for banks, it is useful to know the core factors affecting the use of online banking services. This study sheds light on different aspects of consumers’ perceived risk to analyses the influence of total perceived risk and consumers’ willingness to embrace innovation on online banking services adoption. Results of the study show that the consumer’s total perceived risk and willingness to accept innovation both have a direct effect on online banking services adoption, while willingness to adopt innovation has no significant influence on the consumer’s total perceived risk. Meanwhile, it seems that social perceived risk cannot increase the consumer’s total perceived risk. Beside these, the extent of other consumers’ perceived risks is forecasted by the execution of a neural network. This forecasting helps to understand whether other consumers that have same feeling as members of study society are willing to adopt online banking services or not.

American Journal of Applied Sciences
Volume 11 No. 1, 2014, 47-56

DOI: https://doi.org/10.3844/ajassp.2014.47.56

Submitted On: 8 November 2013 Published On: 23 November 2013

How to Cite: Farzianpour, F., Pishdar, M., Shakib, M. D. & Toloun, M. R. S. H. (2014). CONSUMERS’ PERCEIVED RISK AND ITS EFFECT ON ADOPTION OF ONLINE BANKING SERVICES. American Journal of Applied Sciences, 11(1), 47-56. https://doi.org/10.3844/ajassp.2014.47.56

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Keywords

  • Perceived Risk
  • Innovation Adoption
  • Online Banking Services
  • Neural Network