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Internet Banking Service

to branch or telephone services, the collection of consumer information, and stronger customer relationships for the bank (Sayawadhera & Foky, 2000). This might imply that this new technology should gain wide acceptance, as did the use of ATMs.

Internet Banking in Thailand

In Thailand, internet banking is still in its early stages. Only a few banks are developing such services while others merely use the web to provide information about products and services. An inhibiting factor is concern whether there is demand for such services, based on concerns about levels of computer ownership, Internet usage, and consumer acceptance (Booz, Allen & Hamilton, 1996).

Thailand still has a relatively low rate of internet usage due to the relatively high price of personal computers and accessories and the hourly fees charged by Internet Service Providers (Arnat, 2000). Even among those who have the technological capacity for using the service there remains the question of acceptance of the new tool. Unfamiliarity and perceived complexity led to low adoption rates for telephone banking (Arnat, 2000). Similarly, only a small number of customers use ATMs for services other than cash withdrawal (McKinsey and Co’s, 2000). Thus, it can be concluded that bank customers are still not accustomed to using

electronic channels to manage their financial affairs. This resistence to adoption is an indication of the hazards of introducing new products and services into the marketplace; the vast majority of product and service innovations fail, at considerable cost to the companies introducing them (Foxall, 1984). If banks are to reap the benefits of internet banking they must identify how the service is perceived by potential adopters and the characteristics of consumers who will tend to adopt it. Moreover, those services perceived as necessary by such adopters must also be identified.

The identification of personal characteristics related to the adoption of internet banking is critical for market targeting and the identification of innovative features can help banks in product design and in formulating campaigns that will encourage the adoption of the service. In this study these are related to adoption intention, which is defined as an individual decision to try Internet banking service within a specified period of time.

Theoretical Background

Diffusion and adoption models of perceived characteristics of innovation and personal characteristics of innovators dominate the literature(Rogers, 1995; Lockett and Litter, 1997) but since this study focuses on intention behavior, the theory of reasoned-action with belief

ABAC Journal Vol. 22, No.3 (September  - December, 2002), pp. 63 - 80

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