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Adoption and Usage of Online Services in the Presence of Complementary Offline Services: Retail Banking

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Abstract

The availability and variety of online services has increased dramatically in recent years. Many questions remain, however, regarding patterns of online service use, consumer preferences when using online services, and how consumers substitute between equivalent online and offline services. Using an extensive data set of consumer adoption and usage of the online banking service of a major German bank, this paper analyzes consumers’ adoption and usage of online banking over the period August 2001 to July 2003, including the effect of demographics and branch banking on usage of online banking. We also examine the relationship between Internet availability and channel choice as well as usage. Finally, we analyze the effect of channel usage on customer level and product-specific revenues earned by the bank and derive revenue implications of online banking.

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  • Anja Lambrecht & Katja Seim, 2006. "Adoption and Usage of Online Services in the Presence of Complementary Offline Services: Retail Banking," Working Papers 06-27, NET Institute, revised Oct 2006.
    • Handle: RePEc:net:wpaper:0627
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    Cited by:

    1. Alexander Conrad & Alexander Hoffmann & Doris Neuberger, 2018. "Physische und digitale Erreichbarkeit von Finanzdienstleistungen der Sparkassen und Genossenschaftsbanken [Physical and digital accessibility of financial services at savings and cooperative banks]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 38(2), pages 255-284, October.
    2. Matteo Grazzi & Sebastián Vergara, 2014. "Internet in Latin America: who uses it? ... and for what?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 23(4), pages 327-352, June.
    3. Girish Punj, 2013. "Do consumers who conduct online research also post online reviews? A model of the relationship between online research and review posting behavior," Marketing Letters, Springer, vol. 24(1), pages 97-108, March.
    4. Joeffrey DROUARD, 2010. "Computer Literacy, Online Experience or Socioeconomic Characteristics – What are the Main Determinants of Internet Adoption and Internet Usage?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(80), pages 83-104, 4th quart.
    5. Conrad, Alexander & Neuberger, Doris & Peters, Florian & Rösch, Fabian, 2018. "Der Einfluss sozioökonomischer Faktoren auf die Nutzung des digitalen Zugangs zu Finanzdienstleistungen: Risikopotenzial für eine informationelle Kluft in den Geschäftsgebieten der Sparkassen," Thuenen-Series of Applied Economic Theory 157, University of Rostock, Institute of Economics.
    6. Punj, Girish, 2011. "Effect of Consumer Beliefs on Online Purchase Behavior: The Influence of Demographic Characteristics and Consumption Values," Journal of Interactive Marketing, Elsevier, vol. 25(3), pages 134-144.
    7. Goldfarb, Avi & Prince, Jeff, 2008. "Internet adoption and usage patterns are different: Implications for the digital divide," Information Economics and Policy, Elsevier, vol. 20(1), pages 2-15, March.

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