Takrim Complete Report

Consumers’ Attitude and Consumers’ Engagement toward Online / Mobile Banking in Bangladesh
Consumers’ Attitude and Consumers’ Engagement toward Online /

Mobile Banking in Bangladesh
Submitted To:
Mr. Mohammad Rokibul Hossain
Lecturer
Department of Marketing
Faculty of Business Studies
Premier University, Chittagong.
Submitted By:
S. M. Takrim Fahad
ID: 14-028-1-01-06754
Department: Marketing
Batch: 28th
Faculty of Business Studies,
Premier University, Chittagong
Date of Submission: 22.04.2018
I
Consumers’ Attitude and Consumers’ Engagement toward Online /

Mobile Banking in Bangladesh
Submitted To:
Lecturer
Department of Marketing
Submitted By:
S. M. Takrim Fahad
ID: 14-028-1-01-06754
Department: Marketing
Batch: 28th
Faculty of Business Studies,

Date of Submission: 22.04.2018
II
Letter of Transmittal:
April 20, 2018

Lecturer
Faculty of Business Studies.
Dear Sir,
As per given schedule, I am submitting the attached report entitled “The Customer
Attitude and Customer Engagement towards Online / Mobile Banking in
Bangladesh”.
This report contains an entire discussion about Customer attitude and engagement
towards online / mobile banking in Bangladesh. I have collected as much information as
possible from several sources. I have tried my best to prepare this in consistence with the
optimal standard under direction. It is a great pleasure for me to present you with the
research report as a requirement of BBA.
We hope you find this report satisfactory.
Sincerely yours,
-----------------
S. M. Takrim Fahad
ID:14-028-1-01-06754
Department: Marketing.
Batch: 28th
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Acknowledgement
The Research Report on “The Customer Attitude and Customer Engagement towards
Online / Mobile Banking in Bangladesh” is hoped to be one of the good research in terms
of the concepts used. It required a lot of studies & practical knowledge on the terms part
carried out at the university. A research of this proportion could not be completed without
the assistance of some benevolent people whom i must thank.
I would like to particularly thank my instructor Mr. Mohammad Rokibul Hossain,

Lecturer, Department of Marketing, who gave me lots of inspiration guidance support
and encouragement. He points out the mistakes and also helps me to clarify my research.
His broad and profound knowledge gave me great inspiration as well as great help.
Finally, I would like thanks to Almighty God for enabling me to the successful
completion of my research & also I offer my regards to all of those who supported me in
every respect during this research.
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Executive Summary:
This report work is
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Table of Contents
Chapter 1....................................................................................................................... 1
Introduction ................................................................................................................... 1
1.1 Introduction: ........................................................................................................ 2
1.2 Objectives: ........................................................................................................... 3
1.3 Methodology: ....................................................................................................... 3
1.3.1 Research Design:.................................................................................................. 3
1.3.2 Population and Sampling:...................................................................................... 4
1.3.3 Data Gathering and Analysis: ................................................................................ 4
Chapter 2....................................................................................................................... 6
Literature Review ........................................................................................................... 6
2.1 Consumer Attitudes: ................................................................................................ 6
2.1.1 Consumer Attitudes; Behavior, Cultural Influence and Adoption of Online Banking: .... 6
2.2 Consumer Engagement: ........................................................................................... 7
2.3 Online Banking: ...................................................................................................... 9
2.4 Aesthetic Appeal: .................................................................................................. 10
2.4.1 Visual Appeal: ................................................................................................... 12
2.4.2 Originality of Design: ......................................................................................... 13
2.4.3 Entertainment Value: .......................................................................................... 16
2.5 Layout and Functionality: ...................................................................................... 16
2.5.1 Usability:........................................................................................................... 17
2.5.2 Relevance of Information: ................................................................................... 18
2.5.3 Customization: ................................................................................................. 19
2.5.4 Interactivity: ...................................................................................................... 20
2.6 Financial Security: ................................................................................................ 21
2.6.1 Ease of Payment: ................................................................................................ 23
2.6.2 Perceived Security: ............................................................................................. 24
2.7 Research Design: .................................................................................................. 25
2.8 Hypothesis: .......................................................................................................... 26
Chapter 3..................................................................................................................... 28
Findings ...................................................................................................................... 28
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3.1 Reliability: ........................................................................................................... 28

Analysis: ..................................................................................................................... 29
Chapter 4..................................................................................................................... 31
Limitation and Recommendation ................................................................................... 31
4.1 Limitations: .......................................................................................................... 31
4.2 Recommendation: ................................................................................................. 31
Chapter 5..................................................................................................................... 34
Conclusion .................................................................................................................. 34
Conclusion: ................................................................................................................. 34
Reference: ................................................................................................................... 36
VII
Chapter 1
Introduction
Chapter 1
Introduction
1.1 Introduction:
Marketing landscapes are changing in last couple of decades whereby customers are not mere
passive receivers of company messages but are actively involved in interactive relationships.
Customer interactions with companies are shifting from traditional one way mass media like
print, radio and television to interactive online, social and mobile platforms. Practicing managers
are therefore increasingly looking for ways to engage customers with their products through
multiple online and mobile media. The research too in this domain is now shifting from
customary construct of satisfaction to more active constructs of ‘involvement’, ‘experience’ and
more recently ‘engagement’ in customer choice models to predict loyalty. However, existing
research on customer engagement is largely conceptual (Brodie et al., 2011; Jaakkola and
Alexander, 2014; Verhoef et al., 2010) with limited literature on operationalization,
measurement and empirical validation of the construct. Also, engagement through mobile device,
which is the first screen for a large customer base, remains to be unexplored.
The consumer ‘engagement’ concept has been conceptualized to explain consumers’ interactive
relationship with media channels or brands (Brodie et al., 2013; Calder, Malthouse and Schaedel,
2009; van Doorn et al., 2010; Hollebeek, Glynn and Brodie, 2014). Brodie et al. (2011) define
‘customer engagement’ as “a psychological state that occurs by virtue of interactive, co-creative
customer experiences with a focal agent/object (e.g. a media).” In the era where online and
mobile media are gaining more and more importance in the lives of customers, it is important to
understand how experiences on these media lead to high customer engagement and in turn better
business results for companies. The customer engagement in this study is conceptualized as arising
out of customer experiences (Calder et al., 2013; Malthouse and Schaedel, 2009) while browsing
through the shopping applications on mobile device. With mobile devices being first and most
intimate screens for customers, engagement on this media has high potential for retailers to
get desirable business outcomes from customers in the form of purchases and advocacy.
Further, they are likely to get favorable view from merchants and advertisers by virtue of better
customer engagement. This study is aimed at exploring the role of customer engagement
in building customer loyalty. Towards this aim, this study has two objectives – a) to develop and
validate a measurement model for customer engagement with specific focus on mobile devices for
shopping, and b) to explore the role of customer engagement in building customer loyalty. This
paper achieves these objectives by a research program involving series of studies employing mixed
method research.
The contribution of this paper is threefold. First, consumer engagement construct is defined with
reference to usage of mobile devices especially for shopping and its relationship to customer
experiences. While researchers have explored distinct customer experiences in-store and on-line
settings, this study builds on engagement as a second-order construct that is manifested with
various first-order “experience” constructs similar to (Calder et al., 2013; Malthouse and
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Schaedel, 2009) with reference to usage of mobile shopping applications. Second, this study
identifies new experience dimensions for mobile devices and generates measures of engagement
along with empirical validation of the measures. This provides novel insights as consumer
behavior in using mobile devices has several dimensions that have not been observed in online
media using traditional PC devices. Thirdly, role of customer engagement in customer
predisposition to shop more thereby demonstrating loyalty towards retailer is examined. The
discussion on role of customer engagement is closed with how engagement can help companies
in getting commitment from customers and in attracting as well as retaining merchants and
advertisers.
1.2 Objectives:
The main objective of the study was to find out Consumers’ Attitude and Consumers’ Engagement toward
Online / Mobile Banking in Bangladesh
There are many sub objectives are as follows:
To find out Visual Appeal.

To find out Originality of Design.
To find out Entertainment Value.
To find out Usability.
To find out Relevance of Information.
To find out Customization / Personalization.
To find out Interactivity.
To find out Ease of Payment.
To find out Perceived Security.
To find out Customer Active Engagement.
To find out Attitude towards Online Banking.
1.3 Methodology:
1.3.1 Research Design:
Here I conduct Conclusive Research, where I follow survey pre coded, close ended and
structured questionnaire. I also use 7 points required scale research.
1. Strongly Disagree
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2. Somewhat Disagree
3. Disagree
4. Neutral
5. Agree
6. Somewhat Agree
7. Strongly Agree
1.3.2 Population and Sampling:
I collect my data from sample. The data has been collected from Customer of various Banks. I
collected 100 responses from the respondent Perspective.
1.3.3 Data Gathering and Analysis:

I collect all the data from the field & the purpose behind such collection to gather quantitative
information for having experience & for practical knowledge. All the data are collected through
direct personal interview method. I use standard edition and use Pre coded procedure &
categorize the data in gender, age, marital status, education occupation and income .After
collection of primary data; I input the data to SPSS software and analyzing the d ata by
Reliability.
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Chapter 2
Literature Review
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Chapter 2
Literature Review
This section contains an overview of literature on Consumers’ Attitude and Consumers’ Engagement
toward Online / Mobile Banking.
2.1 Consumer Attitudes:

It is said that consumer attitudes can be a hindrance or an advantage. From the perspective of
marketing Attitude can defined as a broad assessment of a product or service fashioned over a
period (Solomon, 2008). Dr. Lars Perner (2010) is of the opinion that consumer attitude is as a
result of consumer’s feelings, beliefs, and behavioral intentions, that a consumer can have a
negative or positive beliefs or feelings about a product. The purpose of the thesis seeks to
understand online and mobile banking attitudes in Nigeria. Just as any other product being
offered, the attitudes of the customers is imperative to understanding the level of success of the
product wishes to attain of have attained. Attitudes are formed out of negative or personal
experience either by the individual experiencing it or some other individual or other factors.
Oskamp and Schultz (2005) believe that attitudes are somewhat long-term.
2.1.1 Consumer Attitudes; Behavior, Cultural Influence and Adoption of

Online Banking:
Previous research carried out on attitude of consumers and the adoption of electronic banking
opened quite a few aspects that determine a consumer’s attitude, these aspects include
motivation, demographic and general behaviour to diverse the technologies and a person’s
recognition of fresh technology. Nonetheless, studies have shown that the attitudes to these
services and some definite behaviour were as a result of subsequent familiarity of computers and
ever growing technology and other additional factors as enumerated below. With a look at
demographics feature, Howcroft et al. (2002) displayed younger aged ones, which are the
consumers; tend to attach importance to the ease, convenience banking service as compared to
the older aged consumers.
Machauer and Morgner (2001) went further to focus their study on dividing the market into
benefits and attitudes. With the aid of the cluster analysis they divided the market into four
different segment the “transaction oriented” set, comprises of those with a solid technology but
with feeble attitude of information;, “generally interested”, comprising of those with a positive
technology and a good information attitude; and the “service oriented” comprising of those with
both a feeble information and feeble technological attitude; and the “technology opposed” set,
that comprises of those with a solid information but have a feeble technology attitudes.
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However their studies was opposed by a recent study which was carried out by Sarel and
Marmorstein (2003), which brought to light that the household income and level of education is
highly important when it came to the adoption of electronic banking.
Technological acceptance as shown by the literature goes to reveal that unless the personal
desires or needs of a consumer is met, it might not necessarily foster the increased adoptio n of
innovation and they may not be willing to change, they would rather stick to that which they are
already familiar with (Sathye, 1999).
Past studies shows that previous banking service encounters have an influence on the adoption
on new technology. Just as in the research of Lewis (1991) where the reason for transition from a
different platform of service to the other was as a result off the previous problems encountered,
especially from the traditional form of banking like the branch banking to the automated form of
banking services. This could be as a result of some many factors such as the stagnant being services
rendered in branches, ill-timed branch closing hours, the service scape, and the limited number of
personnel’s at hand to serve the customers, etc.
Lastly, Bhattacherjee, Mukherjee and Nath, (2002, 2003) tend to be believed and establish trust
and perceived risks to be of substantial positive significance to commitment. (Bhattacherjee.
2002) he ideologically hypothesized and empirically authenticated a scale that would measure
individual trust when it came to online firms. He revealed that a person’s inclination to handle
business with an online company or bank might be anticipated by other factors other than trust,
like for instance perceived PEOU and PU. Similarly, a person’s conviction in an online firm
most likely is not as a result of past knowledge of the bank, but other factors come into play such
as the institutional, identification calculative and bank belief. In paripassu with Howcro ft et al.’s
(2002) own research, which claims the imperative aspect in boosting the use of banking online is
to decrease the amount or fee charged and a provision of a strong and reliable service. Other
issues inhibit the adoption of these services such as insecurity, unawareness.
Mukherjee and Nath (2003) in their research of trust, the issues of common value, opportunistic
behaviour and communication seemed to make up the bedrock of trust. These as well led to the
highlighting of these roles in trust and adoption of an innovation.
2.2 Consumer Engagement:

Customer engagement has been attracting considerable attention among practitioners as well as
academicians in recent years. Customer engagement is a concept that is being explored as a tool
to facilitate predictive power of customer behaviour including loyalty and referrals (Roderick
and Brodie, 2011; Brodie et al., 2011; Calder et al., 2009; Pham and Avnet, 2009). This study
begins with an overview of different conceptualizations of customer engagement from marketing
literature. Scholars have conceptualized engagement in varied forms including consumer and
customer engagement (Bolton, 2011; Verhoef et al., 2010), customer-brand engagement
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(Roderick J. Brodie et al., 2013; Hollebeek et al., 2014), community engagement (Brodie et al.,
2013), customer-medium engagement (Calder, Malthouse and Schaedel, 2009; Kim et al., 2013),
engagement for co-creation (Jaakkola and Alexander, 2014; Sawhney et al., 2005) etc. Such varied
conceptualizations reflect evolving state of the construct. It also reflects on the growing interest
among scholars from different viewpoints.
Along with varied conceptualizations, there are diverse definitions of customer engagement
proposed by marketing scholars. Definitions of customer engagement vary from “a psychological
process” driving customer loyalty (Bowden, 2008) to “a consumer's state of being occupied,
fully-absorbed or engrossed,” (Pham and Avnet, 2009). Hollebeek, 2011 defined “customer
brand engagement” as “the level of a customer's motivational, brand-related, and context-
dependent state of mind characterized by specific levels of cognitive, emotional, and behavioral
activity in brand interactions”. Further, “online brand engagement” has been conceptualized to
comprise the dimensions of “sustained cognitive processing,” “instrumental value” (i.e., utility and
relevance), and “experiential value” (i.e., emotional congruence with the narrative schema
encountered in computer-mediated entities) (Mollen and Wilson, 2010). Calder, Malthouse and
Schaedel (2009) focused on the experiential aspects while defining “media engagement” as “the
sum of the motivational experiences consumers have with a media product.”
Marketing scholars have essentially conceptualized engagement as a multidimensional construct

(Bowden, 2008; Calder, Malthouse and Schaedel, 2009; Hollebeek, 2011; Mollen and Wilson,
2010) covering cognitive, emotional and behavioral dimensions. With the exception of van
Doorn et al. (2010) who have proposed customer engagement behaviour as a uni-dimensional
construct focusing on behavioral aspect, existing literature has strong inclination towards
multidimensional form for customer engagement construct. Calder et al. (2009) proposed that
engagement comes from experiencing a medium in a certain way.
They defined an experience as a consumer’s beliefs about how a medium fits into his/her life.
Customer experiences could be driven by customer motivations for interactions with the focal
object (medium, service/ brand). In the language of measurement models, experiences are first-
order constructs while engagement is a second-order construct. Following Calder et al. (2009), this
study focuses on customer-media engagement building on the relevant customer
experiences. This approach is appropriate as this study focuses on mobile phones as a medium
for online retailers for building engagement with the customers.
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2.3 Online Banking:

Online banking is a relatively new phenomenon; it has gained prominence in recent years as a
result of the rapid and massive adoption of new media technologies, particularly the Internet.
Online banking can be defined as “A system allowing individuals to perform banking activities
at home, via the Internet” (Investor words, 2005), as “Services that provide banking transactions
electronically” (Bitpipe, 2005). Online banking was first adopted on October 6, 1995 in the
United States of America, when the Presidential Savings Bank offered its customers an online
alternative to traditional banking, (Presidential Savings Bank, 2005). Online banking usage has
grown very rapidly, according to current estimates by Pew research; more than 50 million adults
in the United States do their banking online. (Sullivan, 2005)
Rapid adoption of online banking has been as a result of certain unique benefits which it confers.
It is convenient, as it enables year round 24hour access.

It is ubiquitous as you can access your account anywhere there is an
Internet connection.
It is fast; as transactions can be completed and confirmed within seconds.
It is efficient; as you can manage all your accounts and transactions from
one site.
It is effective; as many banking sites can offer sophisticated tools,
information and integration with local software packages.
Online banking however has few drawbacks which are gradually being addressed such as
complicated and time consuming setup procedure, users may be forced into a steep learning
curve to enable them navigate the site effectively. Users also need to have basic computer skills
and Internet knowledge as well as be connected to an Internet Service Provider (ISP).
Trust is also reason why some individuals have refused to set up online accounts. Trust ere is at
three levels: Firstly trust in the provider, trust in the ability of the technology platform to deliver
without errors or failure, and trust in one’s capacity to operate the system properly. Putting one’s
confidence in software and a faceless network of computers takes a while to develop, (Bruce,
2003). In spite of these challenges Internet banking has been a huge success, it has even been
described as “one of the most important changes within the retail financial industry in the last
hundred years…” (Hiltunen, Heng, Helgesen, 2004, 119)
Most of the major banks in the world, particularly those in the developed nations offer Internet
banking services. For instance all banks operating in the Netherlands offer Internet banking
services. The Internet has thus become the frontline in the battle to acquire new as well as retain
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the old customers. The consequence of this is that opening and closing an account is just a click
away.
Attracting customers and maintaining traditional loyalties which were cultivated and maintained
by personal contact with specialized staff, strategically lo cated offices and awe/confidence
inspiring structures are becoming increasingly irrelevant. The challenge facing most banks is
how to create in the online environment a differentiating experience that would give them a
competitive advantage. Personalization is one of the major strategies being used to enhance the
online interaction between the customers and the banks.
2.4 Aesthetic Appeal:

Aesthetics is variously defined as beauty in appearance (Lavie & Tractinsky, 2004), visual
appeal (Lindgaard & Dudek, 2003), an experience (Ramachandran & Blakeslee, 1998), an
attitude (Cupchik, 1993), a property of objects (Porteous, 1996), a response or a judgment
(Hassenzahl, 2004a; 2004b), and a process (Langer, 1967). Common to all of these terms is that
aesthetics is seen to have something to do with pleasure and harmony that human beings are
capable of experiencing. This wide variety of definitions testifies to the complexity of the
concept, which has not deterred researchers from working in this still rather nebulous and
evasive area.
Early studies in experimental aesthetics led to several theories, the most comprehensive of which
was formulated by Berlyne (1971;1972). Berlyne’s research showed consistently that moderate
complexity was preferred over simple or extremely complex stimuli. Theoretically, this was
interpreted to mean that, beyond a certain level of complexity, the subject’s arousal level would
be located on the downwards slope of the inverted-U curve that characterizes the arousal
function, at a point at which the experience increased in unpleasantness hand in hand with
increasing complexity.
From this work, Berlyne proposed the so-called ‘collative-motivation’ model according to which
aesthetic behaviour was conceived as an elaborate form of explorative behaviour driven by
pleasure-inducing arousal fluctuations. Key determinants of arousal fluctuation were termed
‘collative variables’, which entailed either a comparison of stimulus elements (for example,
complexity) or aspects of experience (for example, novelty). One prediction of the model was
that intermediate levels of arousal would be preferred, leading to the classic inverted U-shaped
complexity-preference function. This prediction was confirmed in numerous studies using
abstract visual patterns such as dots and random polygons as stimuli. However, when more
concrete, real-world stimuli were introduced such as paintings, buildings, and furniture, the
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model’s predictive performance was markedly attenuated (Whitfield 2000). In these studies,
preferences were characterized by the categories to which the stimulus belonged. That is, they
were based on the degree to which the stimulus represented the category. A ‘categorical’ model
was proposed to account for these results (Whitfield & Slatter 1979; Whitfield 1983). This model
conceived of aesthetics in terms of information processing demands, whereby stimuli were not
processed per se, but rather judged in the context of the category to which they were assigned.
This same phenomenon is well known in studies of human decision making in which the
‘representativeness bias’ (for example, Kahneman, Slovic & Tversky 1982) features prominently
among an entire family of judgmental biases. Representativeness proved an effective predictor of
preference in studies of aesthetics using real-world stimuli.
An attempt to reconcile the two opposing theories resulted in the bi-polar ‘categorical-
motivational’ model (Whitfield 2000) that incorporates both categorical and motivational
drivers. The human-centred goal is the modulation of categories leading to greater fitness of
purpose. In the categorical-motivational model, categories are assumed to be well formed and
closed to further articulation at one end of the continuum, and ill formed, open to further
articulation, at the other. Affect would be strongest for stimuli representing the well-formed
categories that would maximally conform to expectations. Such stimuli would require minimal
processing. At the other extreme, novel stimuli would result in the strongest affect provided these
would contain sufficient redundancies to permit assignment to a category. Maximum novelty
would thus be assumed to be non categorical and therefore incapable of assimilation. The
underlying assumption is that the value of assailable stimuli is to elaborate the category structure
thereby providing ‘knowledge’. Novel stimuli would thus have positive value to the extent that
they contribute to internal category elaboration and differentiation. A thorough discussion of
these models may be found in Whitfield (2000) and in Lindgaard & Whitfield (2004).
Despite this progression in predictive and speculative human response models, considerable
confusion surrounds the concept of aesthetics as alluded to earlier. As indicated earlier, some
researchers regard aesthetics as properties of an object associated with its “beauty” (Tractinsky,
Katz & Ikar 2000), a concept that has been further refined into what Tractinsky and his
colleagues have recently termed “classical aesthetics” (Lavie & Tractinsky 2004), which is
similar to Hassenzahl’s notion of “goodness” (Hassenzahl 2004), and “expressive” aesthetics,
that Hassenzahl calls “beauty”.
Aesthetics, like beauty, is thus as elusive as it is confusing. The similarity or overlap between
beauty and aesthetics remains undefined; we are unsure about what is being judged (Frohlich
2004), whether they are properties of objects in the world, subjective experiences, emotional
reactions residing “in the eye of the beholder”, or cognitive judgments (Hassenzahl 2004a ;
2004b; Norman 2004; Frohlich 2004). Aesthetics therefore lacks an affinity with the main
paradigms of psychological and HCI research, and has no secure theoretical attachment point: it
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lacks a home. Yet, even if aesthetics is a property of objects, when confronted with an object of
beauty, it does evoke a positive emotional experience in the viewer.
2.4.1 Visual Appeal:
The mere exposure effect begins to wane once the stimulus exposure time exceeds 50msec, when
the organism begins to take more detailed information into consideration. Therefore, if visual
appeal is appraised within that window of 50 msec, as indeed a series of experiments in our lab
showed clearly to be the case (Fernandes, Lindgaard & Dillon 2003; Lindgaard, Dudek,
Fernandes & Brown, 2006), the judgment involves the amygdale over which the neocortex has
no control. The organism’s response can thus truly be said to be visceral (Norman 2004). This
has important implications for web design and budget resource allocation, because the value of
textual information is likely to be assessed in terms of the site’s immediate visual appeal. So, an
e-commerce web site representing a business that is in competition with numerous others on the
Internet and that fails to meet users’ expectations both in terms of aesthetics and in terms of its
informative content is unlikely to be successful at converting browsers to customers even if its
quality of products or services is superior to its competitors. Either people will instantly click on
to the next site, or they will interpret even the slightest usability flaw negatively to confirm their
initial emotional impression. By contrast, a visually appealing site will be forgiven for its minor
or even major usability blemishes because the first impression was positive.
Color is a very salient stimulus, which is known to affect the visual appeal of web sites (Knutson
1998); when opening a site the background colors are usually displayed well before the content
appears. The literature on human memory, from social psychology, and from attribution theory,
accords with the research on first impressions discussed earlier. First impressions are very
powerful; they often outweigh subsequent incoming stimuli – thus, primacy effects prevail!
Likewise, borrowing from the human judgment and decision-making literature, we also know
that, once people have made up their mind about something, they tend to search selectively for
information that confirms their hypothesis, falling prey to the so-called confirmation bias
(Mynatt, Doherty & Tweeney 1977) whereby disconfirmatory information is ignored. It follows
that an unpleasant first impression will encourage the viewer to focus on information affecting
their experience negatively, perhaps in the form of usability problems. Conversely, if the first
impression is positive, they are likely to be far more tolerant of the same usability problems.
Given the presence of a strong perceptual after-effect in the abovementioned web site, one may
therefore legitimately question the impact of background colors on both the first impression and
the overall interactive user experience. That is discussed next.
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The background colour of a web site is usually displayed for several seconds before additional
information appears. Following Zajonc’s (1980) work on the mere exposure effect discussed
earlier and our own work showing that users form an opinion on the visual appeal of homepages
after an exposure time of only 50 milliseconds (Lindgaard et al., 2006), there should be ample
time for the user to detect the stimulus and decide whether to like or dislike it well before the
information contained on the homepage is even displayed. The first few anecdotal studies in our
program therefore focused on the importance of colour in an attempt to begin to explore the
connection between visual appeal, perceived usability, and user satisfaction with web sites.
Because these studies have been reported elsewhere (Lindgaard 1999), they are only summarized
briefly here.
2.4.2 Originality of Design:
During the 1990’s, the primary focus of e-commence research was on the development of
technologies and architectures that enabled the web sites to link businesses and consumers
(Webb & Webb, 2004). Given that the web-site was the primary interface between the customer
and the business, in the latter part of this period, many e-Commerce businesses focused their
attention on the design of the web-site (Melymuka, 2001). This entailed, for example, being
concerned with aspects of the design concerned with the corporate logo, colour schemes, and
information content (Cox & Dale 2002).
Lwaarden & Wiele (2003) aver that there is indeed a need for e-Businesses to provide high
quality web sites to their customers, because of the reduced human contact that takes place when
applying the electronic business model. The primary interaction between the customer and the
company is via the Internet. Consequently, the absence of traditional human interaction through
which service quality can be delivered to customers, will have to be compensated for through
superior design of the web-interface.
Previous research based on service encounters has focused on the interpersonal element of
service in people-based services as encountered in brick and mortar business (Bitner, 1990).
With the advent of e-Commerce, there are now several examples of Web-site service quality
measurement studies in the literature. Examples of these are the development of WebQual
(Loiacono, 2002) and E-Qual (Kaynama & Black, 2000). The findings of these studies identified
those elements of service which customers perceive to be of importance in a website. The need
for developing a service quality oriented web site is underscored by the importance of the site as
the principle interface between the e-Business and the customer.
13
The relevance of service quality is echoed by Watson (2000) who suggests, a web site is a
service and that organisations offer services whether it is just information or sales through a
website. Given the foregoing it is not surprising that there is a plethora of research on e-service
quality, focusing on aspects such as: measurements to evaluate web sites (Jaspersen, 1996); the
usability of a web site (Nielsen & Norman, 2000) and E-S-QUAL (Parasuraman et al., 2005).
However no attempt has been made to translate this into a meaningful context for web-
designers. If e-Commerce businesses place a premium on the delivery of quality service through
the web-site, then it becomes equally important for web-site developers to design web sites that
embody service quality objectives. If web-designers lack a service quality mindset, then all the
emphasis that is placed on service-quality throughout the organization could be severely diluted
when the web-site is designed. Based on this rationale, the authors have undertaken a preliminary
investigation of web-design from a service quality perspective.
The specific objective of the study was to determine to what extent web-designers considered
service quality imperatives when designing web sites. Particular investigative questions that are
addressed are as follows:
1. What are service quality criteria that are related to web-site design?
2. How can service quality and web design guide-lines be integrated?
3. Do web-designers take service quality principles into account when web-sites
are designed?
The design of websites has been widely studied from multiple points of view; most of them have
identified the factors that could determine the degree of acceptation of the websites (e.g. Hoque
and Lohse, 1999; Childers et al., 2001; Liang and Lai, 2002; Kim and Stoel, 2004; Wilde et al.,
2004; Görn et al., 2004). According to Cato (2001, p. 3), designing is “the process of creating an
artefact with structure of form which is planned, artistic, coherent, purposefu l, and useful”. From
a consumer perspective, a website must be designed with all these features in order to arouse the
affective states of the users and to enhance their online visits or purchase intentions.
As the Internet and the Electronic Commerce are evolving, different points of view are arising to
determine which could be the key factors of website design. In this sense, usability studies what
elements must have a website so that the consumer can manage it easily. Nielsen (1994) defines
the usability of a website as the ease with which the user can learn to manage the system and
memorise the basic functions, the efficiency of design of the site, the degree of error avoidance
and the general satisfaction of the user. More specifically, the usability is a qualit y attribute that
assesses how easy user interfaces are to use, and we can identify five dimensions or quality
attributes: learnability, efficiency, memorability, errors, and satisfaction (Nielsen, 2003).
14
Following this line, the usability can also be understood as a tool for measuring the quality of a
website (Ranganathan and Ganapathy, 2002). Thus, the ease of use of a system could improve a
more complex learning and a higher ability to anticipate how that system will perform.
Specifically, usability improves the best understanding of the contents and tasks that the
consumer has to know for the achievement of a goal (e.g. to place an order). This reduces the
probability of error and improves the levels of trust (Muir and Moray, 1996). Besides, usability is
related to the consumer ability to identify where he or she is and what he or she can do in every
moment of the navigation.
With reference to the design factors of a website, a good design must provide not only beauty
and appeal, but also high levels of usability, since it influences the affective states of the user
(Desmet and Hekker, 2007). Thus, a well-designed website should ensure a high level of
usability (Cristóbal, 2006). An attractive design can evoke feelings of pleasure in the use of a
website (Flavián and Gurrea, 2008). As a consequence, an adequate degree of usability, related
to a comfortable atmosphere, could create a positive bias in the consumer. In fact, a good level of
perceived usability could lead to higher levels of satisfaction, trust and loyalty towards a specific
website (Flavián et al., 2006; Kim and Eom, 2002; Chen et al., 1999).
Regarding commercial transactions, users may infer a higher quality of a product from its beauty
which in turn implies higher levels of usability (Desmet and Hekker, 2007). So, we could note
herein that usability and web design are highly correlated. Table 1 shows some of the main
studies that point out the existence of a clear relationship between the concepts of usability and
web design.
With this regard, we could stress the study carried out by Keeker (1997) who proposed several
guidelines in order to improve the ease of use of the website and to encourage people to enjoy
and become engaged in an experience. The author based his assumptions on a well-known group
of online firms to identify the key aspects and to offer some recommendations related to the
content of the websites (such as the information, the use of media -animation, sound, graphics-),
the ease of use (provide goals to users, navigation, feedback), the promotion of the content (i.e.
location, frequency of 6 updates), the specific content related for the media (i.e. community,
customization) and the affective response of the consumer.
15
2.4.3 Entertainment Value:
Entertainment in the internet is a way backs to this cognition that internet media is fun and can
Entertainment amuse many users. A research conducted about U&G theory illustrated that online
entertainment is getting a lot with hedonistic pleasure and sense of aesthetic enjoyment and also
complete user need for escapism (Luo, 2002). Former research literally acknowledged that with
surge of entertainment value internet users have a better response and try to use the internet
more. It also evaluated that if users consider an advertisement as an entertaining value, it
increases the probability of consumer loyalty to brand and also enhance the chance of purchasing
the product brand (Stern & Zaichowsky, 1991).
In addition, Duccofe 1995 noted that the entertainment value noticed by users notably is related
to valuing- recognition base on traditional advertisement of the advertiser. Therefore, it can be
obtained by the case that entertaining in advertising is considered as a positive sign in receiver
mind. Moreover, study of (Chen & Wells, 1999) depicted that entertainment in the site is
positively impact on consumer attitude, so this statement can be promoted for internet
advertising.
2.5 Layout and Functionality:

Layout refers to the way in which machinery, equipment, and furnishings, seats, aisles, hallways
and walkways, restrooms, and the entrance and exits are designed and arranged in service
settings. These factors are important in many services such as theaters, retail stores, concerts, and
restaurants because these can affect the comfort of the customer. Layout is particularly important
in self-service environments where customers perform the services on their own. Layout that
makes people feel constricted, negatively affects customer quality perceptions, excitement levels,
and desire to return (Wakefield & Blodgett, 1994). Facility layout can influence consumer search
behaviors.
The quality or state of being functional a design that is admired both for its beauty and for its
functionality; especially: the set of functions or capabilities associated with computer software or
hardware or an electronic device.
Having argued the bona fides of the Functionality model since 1979, Van Wyk (1988; 2002;
2004; 2007; 2008) continues to pioneer classification of functionality in a refined version of the
nine-cell functional classification matrix.
Van Wyk has been using this classification scheme as part of STA, specifically for his
technology assessment templates and his atlas of technological advance. The model has also
been used very effectively to, among others, structure technology scans and technology audits.
16
Pursuing understanding of landmark technologies, Van Wyk (2008) demonstrates in a presentation

to investment analysts how, what he now describes as the Functionality grid, and can be used
to explore technological frontiers. Of course, Van Wyk‘s work with international corporations is
of a strategic nature and proprietary.
So in spite of its appeal in simplicity and utility, Van Wyk (1988, 2007; 2008), Wyk, Haour and
Japp (OP CIT.), Magee and De Weck (OP CIT.) and Koh and Magee (2006; 2007) are to date
the only published examples of how the Functionality model can be used to synthesize particular
taxonomic results from among a multitude of competing technological entities on the fast-
changing technological landscape.
2.5.1 Usability:
Usability is significant in the area of user interface design. Results of usability evaluation are
primarily used to aid user interface designers address the changing demands of users. Heuristic
Evaluation and User Testing Tan et al. (Tan, Liu, & Bishu, 2009) recognized the two most
popular usability evaluation techniques. These two usability evaluation techniques are known to
be heuristic analysis and user testing. Both methods were compared for efficiency and
effectiveness in evaluating four commercial websites. The results show that that both user testing
and heuristic analysis complement each other. Neither of the two methods can be replaced by the
other. The two methods address different usability problems and therefore, suggested to be used
in different stages of user interface design process. Heuristic evaluation can be done in an earlier
stage of the design process while user testing can be performed at a later stage of the design
process. Heuristic evaluation when compared with other approaches is much easier to implement
and less costly. Usability problems identified from the heuristic evaluation are associated with
the usability heuristics. Quinones and Rusu (2017) reiterated the three scales to qualify as
usability problems namely, severity, frequency and criticality. Severity is measured in terms of
the ability of the interface to function, while frequency is measured based on the occurrence of
the usability problem. Severity and frequency are then combined to get the criticality index.
Some of the issues that may arise in the use of heuristic evaluation is in the process of selecting
the experts and the appropriate number of evaluators. Expertise of evaluators is of great
importance in the evaluation of websites (Karoulis & Pombortsis, 2004).
The expertise of evaluators has an impact in identifying the right number of evaluators required
in a usability evaluation. From the experiment of Nielsen and Molich (1990), the performance of
evaluators in determining usability problems may vary depending on the expertise and
experience of the evaluators.
Nielsen (1992) conducted another research to determine the effect of expertise of usability
evaluators. Evaluators are categorized into novice, regular specialists and double specialists.
17
Usability index is an important measure to determine the relationships of different usability

metrics for the evaluation of websites. Results of heuristics evaluation can be meaningless
without looking at the relationships of different usabilit y metrics and deriving its usability index.
Adapting a methodology to determine the usability index is necessary to aid user interface
designers improve web quality. A Six Sigma quality approach was applied by Nielsen (2003) to
compare the quality levels in terms of success rates of the public websites and the intranet. Around
139 public websites were tested for usability with 65% success rate. This corresponds to a 1.9
sigma quality level. For users tested on intranets, the success rate has reached 75% which is quite
higher than the public websites. This corresponds to 2.2 sigma quality level. Higher success rate
for intranet users is attributed to the familiarity of the functions and commands. Employees are
more accustomed to the design of the intranets compared to the public websites on which the user
interface designers have more freedom in the web design. Sauro and Kindlund (2005) emphasized
the limitations of traditional usability metrics and attempted to increase its meaning by adapting
the Six Sigma methods. Common usability metrics were evaluated in terms of a standardized
defect rate or quality level. Four usability metrics were converted into standardized forms. This
conversion is necessary to determine the variation of each usability metric from the user-defined
goal. Each standardized form is considered as the process sigma. Below is the common usability
metrics converted into standardized forms and measured using process sigma:
1. Task Completion
2. Error Rates
3. Satisfaction Scores
4. Task Times
2.5.2 Relevance of Information:

Relevance: there is still a lack of research and case studies on measuring the value of information
products. In literature the problem is comparable to measuring the value of business intelligence
(BI). “Measuring the business value of business intelligence in practice is often not carried out
due to the lack of measurement methods and resources.” (Popovič et al., 2010). A case study
from Pirttimäki et al. (2006) on Measurement of business intelligence in a telecommunications
company also stated that additional case studies on the subject are desired.
Kelly (1993) states that value is created as a result of utilizing the information (or
intelligence).Information is utilized for instance when it improves operational processes and
management processes (Williams, 2003). Information is used for decision making, which means
that the usability, usefulness or utilization of an information product is an important benchmark
for its value. Because usefulness and utilization are very similar to usability, there is no
distinction made between them in the definition. They can be described as the extent in which
the information is usable and useful.
Information has to be valuable for the organization; therefore it is also possible to look at the
business value that resulted from the decision where the information was used. To make this
measurable, it is important to know what the goals of the organization are. Business value is for
18
instance associated with finances, customers or organizational developments (Simmons, 1996).

Pirttimäkki et al. (2006) also explain that value for an organization is often associated with
profit.
Besides value for the organization, Pirttimäkki et al. (2006) also describe that the value for the
user is important. They describe that value for the user is typically associated with perceived
usefulness, supporting the fact that value is associated with usability. According to Wixom and
Todd (2005), perceived usefulness is significantly influenced by information satisfaction.
According to Frøkjær et al. (2010), usability consists of three independent aspects, namely:
effectiveness, efficiency, and satisfaction. Effectiveness and efficiency can be measured
quantitatively and can be related to financial value for the organization. For satisfaction, it is
more complex because it is not tangible. When the satisfaction is low for instance, it is not clear
what the reason behind this is. To find out the reason, satisfaction should be divided into sub-
criteria. Another difficulty is that satisfaction is qualitative and subjective.
These aspects are also mentioned in the ISO/IEC 25010: 2011 standard as quality characteristics
for software and computer systems. The ISO/IEC 25010: 2011 standard also mentions the
characteristics: Freedom from risk and Information context coverage. It is assumed that the
information with a high freedom from risk and high context coverage, is more valuable for the
organization. Over time, usability has been characterized using different characteristics. Cheikhi,
Abran & Suryn (2006) gave an overview of literature and ISO standards from 1993-2003.
2.5.3 Customization:
Advertising Pine/Gilmore (1999, p. 76) define customization as “producing in response to a

particular customer’s desires.” The authors point out that it is relevant to make the distinction
between variety and customization. Whereas customization strives for fulfilling individual
customer’s needs, variety simply involves more choice from which the customer is able to
choose.
“Fundamentally, customers do not want choice; they just want exactly what they want”
(Pine/Gilmore 1999, p. 76). Customization is intended to add increased customer perceived value
to a product, since a customized product compared to a mass produced product – increasingly
fulfills the need of the customer (Svensson/Jensen 2001, p. 1). When defining the term product
customization, it is relevant to include the product perspective which can be a physical good or a
service. Thus, product customization can be defined as producing a physical good or a service
that is tailored to a particular customer’s requirements. In this context, customer involvement is
an important issue, because customers dictate what the enterprise has to produce. In the case of
physical goods, product customization can occur ex post after manufacturing by the retailer or
the customers themselves. In this book only physical goods’ customization is considered because
the main focus will be placed on manufacturing enterprises. However, value adding services
around physical products are considered as additional criteria for differentiating goods and thus
for customization.
19
In order to customize products there are two main approaches. The first is to specifically design
and manufacture products for a particular customer’s requirements by using a job shop
manufacturing system. These products are designed and produced from scratch for each
individual customer, in other words, the needed resources are used differently to a great extent
for each specific product. For instance, building an airport having particular characteristics is a
specific project that is constructed once for one customer.
However, the second approach is to implement a mass customization (Davis 1987; Pine 1993)
system that aims at linking both advantages of mass production and customization. The main
objective of mass customization is to produce individualized goods with near mass production
efficiency (Pine 1993). The first approach is considered to be a project management problem and
will not be dealt with in this book; the second approach of mass customization is very
challenging. Thereby, not only the product individualization perspective plays a relevant role,
but also the costs’ perspective. For example, Rautenstrauch et al. (2002, p. 104) speak about
mass customization when the product price does not exceed approximately 10-15 percent of a
standard product. From a strategic point of view, the goal of mass customization is to
differentiate products through customization and to also take advantage of the economies of
scale. Piller (2000, p. 196) mentions that the mass customizer has to provide customers with an
achievement potential by developing a wide product solution space from which customers can
select or self-configure the product variant that meets individual requirements. The rest of this
book will basically concentrate on the mass customization paradigm. To implement mass
customization, there are many different strategies which have been already discussed in the
technical literature. In the following, the main identified mass customization configurations are
presented.
2.5.4 Interactivity:
Interactivity is cumbersome because of the vast implicit and explicit definitions prepared by
researchers from many different academic and professional perspectives. Consequently, it is
important to narrow our focus and keep the analysis manageable given the extensive discussion
surrounding the topic. Specifically, while our emphasis is on communication, interactivity
conceptions have been informed by both communication and non-communication perspectives,
especially from the fields of psychology, sociology, and computer science/design. To help
sharpen the current analysis’ focus, this explication is principally rooted in explicit definitions of
interactivity rather than implied or tacit conceptions, though these are considered when relevant.
As with any literature review, this is a selected set of readings and by no means exhaustive.
In contrast to the first dimension, the object-emphasized dimension is not as straightforward, but
is a natural outcropping of the literature. Several scholars underscore these various objects in
their work, but few have ever unified them into a single theoretical framework. For example,
McMillan writes that ‘while some scholars see interactivity as a function of the medium itself,
others argue that interactivity resides in the perceptions of those who participate in the
communication’ (2000: 71). Moreover, Stromer-Galley (2000) distinguishes between ‘human’
20
and ‘media’ interactivity. Finally, Massey and Levy (1999) identify differences between
‘content’ and ‘interpersonal’ interactivity. Collectively, most of the literature touches on at least
one of the three object domains. Even when considering elaborate, multifaceted views of the
concept (e.g. Heeter, 1989), the object emphasized categories can still be used to group many of
the various dimensions pinpointed in such definitions (to be discussed below). While not perfect,
this categorization scheme is believed to capture the preponderance of prior conceptual and
empirical work, and is therefore useful as an organizational tool in this capacity.
Any discussion of interactivity inevitably draws from its roots in Cybernetic theory, as outlined
by Wiener (1948). As a basic communication model, the chief difference between Cybernetic
theory and the classic Shannon and Weaver (1949) model is its emphasis on feedback. This
ability for message receivers to respond to message senders has developed into a core component
of many interactivity conceptions. Under this framework, interactivity is an attribute of the
channel through which communication occurs. Communication is seen as a dynamic,
interdependent process between senders and receivers. Like much of the communication work
giving attention to interactivity.
Several academic and professional applications of interactivity have stemmed from this belief. If
a system permits third-order dependency among participants, it is deemed interactive. In
empirical terms, scholars in this tradition examine the content of interactive media and associate
it with psychological and behavioral variables (e.g. Rafaeli, 1986; Rafaeli and Larose, 1993;
Rafaeli et al., 1994). Of course, this approach is restricted because it does not highlight the
elements of interactivity that other communication researchers find compelling – specifically,
technological and individual factors. More current work bridging communication and computer
science has pushed scholars to consider technological structure and audience idiosyncrasies
when commenting on interactivity and related concepts (e.g. Nass, Lombard et al, 1995; Nass,
Moon et al., 1995; Reeves and Nass, 1996). Viewed as a multidimensional construct, Steuer
furnishes a detailed account of interactivity, which he contends is ‘the extent to which users can
participate in modifying the form and content of a mediated environment in real-time’ (1992:
84). Admittedly, his conception is technologically based and is governed by the speed, range,
and mapping capabilities of a medium, although the user possesses ultimate control. 2 One can
surmise that increases in any one of these factors raise the level of interactivity for a given medium.
2.6 Financial Security:

Consumer nowadays faced with high cost of living and thus influenced consumer household
expenditure (Rahmah & Norlinda, 2012) lead to high concern toward vulnerable group’s
household financial security. The higher cost for living influenced consumers to tighten its belt.
In addition, imported goods, food, transportation, housing, and everyday expenses are on the rise
and add to the cost of living in Malaysia. Consequently, the higher costs of living nowadays
leave a big question mark of the financial security among vulnerable group.
21
Furthermore, consumer financial status affect by the consumer resources and the utilization of
consumer resources. Consumers, especially the vulnerable group rely more on the resources from
the government and other party. Though, the equal distribution of additional support to the
vulnerable group that receives lack benefit in the socioeconomic development should be focus
more.
Inability to work caused lack of resources leads to reliance on welfare payment government
(Schofield et al., 2010). The three vulnerable groups consist of youth; women and elderly need
more attention on education, training, assistant in developing human capital to survive in today
market (IPPBM, 2012). Consumers must be kept abreast with the current market situation, prices
changes of goods and services offered (Sharifah Azizah, 2008) and make wise decision on
allocating the income toward saving or expenditure to achieve financial security. Financial
security affect the consumer life as the consumer need to allocated the portion of income wisely
on meeting the end meets, paying the debt and preparing for the emergency, and retirement
period.
Financial security gain the benefit by having the satisfaction in fulfilling high order needs such
as buying house, adequate retirement fund, children education and for emergency purposes
(Howell, Kurai, Yin, & Tam, 2013). Financial security also affect individual self-rated health as
people with positive financial security tend to rated their health as excellent as compare to less
financially secure people(Haines, Godley, Hawe, & Shiell, 2009).
Financial security involved not just individual awareness and locus of control on their own
income and saving but also other party such as government intervention programme, insurance
institution and employers (Fortuijn & Ostendorf, 2004; Lange, Prenzler, & Zuchandke, 2012a;
Lee, 2002; Rohayu, Sharipah, Yusmarwati, Maziana, & A.Rashid, 2000; Suwanrada, 2009;
Wilhelms, 1952) According to Miron-shatz, (2009) financial security among consumers affect
life satisfaction and thus major financial security is retirement, college tuition, and making ends
meet. Consequently, financial issues by having thought about the future lower the consumer’s
life satisfaction especially when the consumers experience with loans and mortgage. Therefore,
the concern over financial security exist is crucial to individuals who experiences it as it affect
the consumer life satisfaction.
Unfortunately, study indicated that generally Malaysian financial security dependent only on the
government intervention programme and institutional scheme of social security. Reported by
Lee, (2002) the two approach provided by government in eliminating poverty and increase
financial security is the employed workers is covered by Employment Provident Fund (EPF)
and/ or Social Security Organization (SOCSO) social insurance scheme.
The study by Lee, (2002) reported that in Malaysia’s social security systems is only focus on old
age and industrial accidents, but none for sickness and unemployment. Consumers obtained
lower wealth as the sickness leads to unemployment that caused loss of income and little saving
and no investment for the retirement (Schofield et al., 2010). Thus, consumers faced challenge in
getting the social security support if there are sick or with dependents, and not having formal
work to support for their financial security. Contrary to the Lee reported, the Social Security
Organization (SOCSO) through the Act and Regulations, is actually provide free medical
22
treatment, facility for physical or vocational rehabilitation, and financial assistance to employees
for the loss of their abilities due to accidents or diseases that reduced the abilities to work or render
the worker incapacitated. Nevertheless, consumers still rely on the government intervention
programme and institutional scheme of social security.
2.6.1 Ease of Payment:
The extensive use and commercialization of the Internet have created a dynamic electronic
commerce world. Lee, Yu, and Ku (2001) stated that electronic commerce (EC) provides numerous
advantages over traditional commerce such as openness, speed, anonymity and global accessibility,
which simplify life and increase individuals’ quality of life. These advantages boost the popularity
of EC and enhance the competit ive edge of the companies which adopt it. Due to its popularity,
EC has been defined in various ways; however the best definition for the purpose of this article
suggests that EC is ‘the sharing of business information, maintaining business relationships and
conducting business transactions by the means of telecommunication networks’ (Zwass, 1996, p.
3).
EC is built upon electronic payment systems (EPS) and with the increasing volume of electronic
commerce, EPS is becoming more crucial for both businesses and consumers (Kim, Tao, Shin, &
Kim, 2010). EPS are used for the completion of electronic commerce transactions and have been
defined as ‘any payment system that facilitates secure electronic commerce transactions between
organisations and individuals’ (Lim, Lee, & Kurnia, 2007, p. 231). Linck, Pousttchi, and
Wiedemann (2006) stated that for businesses which operate electronically, EPS are one of the
most essential determinants of success. As a result, EPS have attracted much attention by
researchers and practitioners since the emergence of EC.
Although EPS have improved significantly over the last decade, security and trust issues were
still matter of concern for users back in the 2000s, and such concerns still exist (Shon &
Swatman, 1998). Within the context of EPS, both security and trust are essential; security has
been defined as ‘a set of procedures, mechanisms and computer programmes to authenticate the
source of information and guarantee the integrity and privacy of the information (data) to abstain
this circumstance to lead to a hardship (economic) of data or network resources’ (Tsiakis &
Sthephanides, 2005, p. 10). Trust is defined as a form of confidence in a partner as a whole and
his/her reliability and integrity Liao, Liu, & Chen, 2011; Moorman, Deshpande, & Zaltman,
1993). According to Reichheld and Schefter (2000), trust is vital in transactional relationships,
especially those containing high risk such as online transactions.
In other words, trust is as crucial as security for the success of EPS. Thus, identifying and
comprehending the factors affecting trust and security is essential for practitioners who deal with
EPS. The lack of perceived security and trust has been identified as one of the most vital factors
slowing the development of e-commerce (Centeno, 2002). The majority of trust theories are built
upon personal contact and conventional relationships (Tsiakis & Sthephanides, 2005). However,
e-commerce lacks these two mandatory elements in its nature; thus it is problematic to establish
23
and retain trust for this particular system. This is why it is particularly important to have secure
EPS and inspect technical protections that are developed to reduce the risk of e-commerce before
addressing the issue of user trust.
Previous research has indicated that the lack of human contact or social relation during the
electronic payment process creates a threat for the security of EPS (Kim et al., 2010; Tsiakis &
Sthephanides, 2005). According to researchers such as Van Dyke, Midha, and Nemati (2007)
and Eastlick, Lotz, and Warrington (2006), trust and privacy concerns are the two particular
reasons that prevent individuals engaging in e-commerce transactions. Likewise, findings of the
survey by Gartner Group (2001) stated that when shopping online, trust and privacy issues were
the main concern of 95% of the participants (Gartner Group, 2001). Thus, security is of utmost
importance for EPS usage. Before anything else, the first and foremost an EPS should provide
security to its users (Kim et al., 2010; Linck et al., 2006; Tsiakis & Sthephanides, 2005).
The existing literature mainly focuses on security and trust in EPS from the perspective of
service providers (Linck et al., 2006) and not enough attention has been given to consumers’
perception of security and trust. As a consequence, theoretical and empirical researches are
lacking in this crucial area. A notable exception is the study of Kim et al. (2010). Their research
examined the determinants of consumers’ EPS usage. They have concluded that both perceived
security and trust have a positive and significant impact on EPS use. In order to address the
above mentioned deficiency in the literature, the present study examines security and trust in
EPS from the viewpoint of consumers in a small island economy (North Cyprus). Additionally,
factors affecting consumers’ perceived trust and security have also been examined in order to
provide a deeper understanding of the research phenomenon.
2.6.2 Perceived Security:
A security threat has been defined as a “circumstance, condition, or event with the potential to
cause economic hardship to data or network resources in the form of destruction, disclosure,
modification of data, denial of service, and/or fraud, waste, and abuse” (Kalakota and Whinston,
1996). Security, then, is the protection against these threats. Under this definition, threats can be
made either through network and data transaction attacks, or through unauthorized access by
means of false or defective authentication. This definition must be tailored in order to be
applicable to consumer transactions to acknowledge that consumer information has value. For
consumers, it must be recognized that (1) economic hardship encompasses damages to privacy
(loss of information) as well as theft, for example, of credit information and (2) authentication
issues for consumers will be reversed; as in whether the Web site is ‘real’ rather than whether the
purchaser’s identity is real. This tailored definition explains the security threats from a
consumer’s standpoint. Security in B2C electronic commerce is reflected in the technologies
used to protect and secure consumer data.
The promotion and optimum use of security, privacy and trustworthiness are important elements
for supporting the growth of business-to-consumer e-commerce. Two problems with existing e-
24
commerce literature include the extent to which privacy and security issues are conceptualized as
distinct, and the lack of understanding of how they are related. As illustrated in the 2001, Harris
Interactive poll discussed below, concerns about the safe storage of information are mixed with
sharing of information under the category of ‘privacy’ concerns. Another common practice in the
literature is to use global terms such as safeguard assurances to represent both privacy and security
concerns. This conceptual confusion is often followed by discussions of which type (privacy
and/or security) of Web features maximally reduce consumer fears, in addition to how to place
and convey these features on the site (Dayal et al., 1999; Woodlock, 1999/2000). As such, it is
unknown whether consumers really see these as distinct issues.
2.7 Research Design:
Visual
Appeal
Attitude
towards Originaliy
Online of Design
Banking
Enter-
-tainment
Value
25
2.8 Hypothesis:
H1: There is strong relationship between Attitude towards Online Banking and Visual Appeal.
H2: There is strong relationship between Attitude towards Online Banking and Originality of
Design.
H3: There is strong relationship between Attitude towards Online Banking and Entertainment
Value.
26
Chapter 3
Findings
27
Chapter 3
Findings
3.1 Reliability:
The ability of an apparatus, machine or system to consistently perform its intended or required
function or mission on demand and without degradation or failure.
Name of Variable Cronbach’s Alpha N of Items
Visual Appeal .927 4
Originality of Design .786 4
Entertainment Value .822 4
Usability .947 4
Relevance of Information .915 3
Customization / Personalization .938 4
Interactivity .785 4
Ease of Payment .966 4
Perceived Security .972 4
Customer Active Engagement .920 4
Attitude towards Online Banking .950 3
Total 0.965 43
28
Analysis:
According to the given questionnaire I found 11 major objectives regarding Visual Appeal,
Originality of Design, Entertainment Value, Usability, Relevance of Information, Customization /
Personalization, Interactivity, Ease of Payment, Perceived Security, Customer Active Engagement,
Attitude towards Online Banking based on those objectives I find out each of their reliability
Cronbach’s Alpha is Visual Appeal which value is 0.927, according to rule is its fit because the
values cross 0.655. Second objective is Originality of Design which value is 0.786, according to
rule is its fit because the values cross 0.655. Third objective is Entertainment Value which value
is 0.822; according to rule is its fit because the values cross 0.655. Fourth objective is Usability
which value is 0.947, according to rule is its fit because the values cross 0.655. Fifth objective is
Relevance of Information which value is 0.915, according to rule is its fit because the values
cross 0.655. Sixth objective is Customization / Personalization which value is 0.938, according to
rule is its fit because the values cross 0.655. Seventh objective is Interactivity which value is
0.785, according to rule is its fit because the values cross 0.655. Eighth objective is Ease of Payment
which value is 0.966, according to rule is its fit because the values cross 0.655. Ninth objective is
Perceived Security which value is 0.972, according to rule is its fit because the values cross 0.655.
Tenth objective is Customer Active Engagement which value is 0.920, according to rule is its fit
because the values cross 0.655. Eleven objectives is Attitude towards Online Banking which
value is 0.950, according to rule is its fit because the values cross 0.655.
29
Chapter 4
Limitation and Recommendation
30
Chapter 4
Limitation and Recommendation
4.1 Limitations:
During fieldwork, I face some problems:
a) Some Respondents answer the questions without reading the

questions properly.
b) Some Respondents did not provide accurate answers.
c) Lack of effective interaction from respondent.
d) Lack of Adequate Time.
4.2 Recommendation:
There is a growing body of literature on customer engagement; however, research in this domain
is still in its infancy. This study had two objectives.
The first objective was to develop and validate a measurement model for customer engagement
with a specific focus on mobile devices for shopping. Based on the findings of this study time-
filler, an emotional component emerged as the strongest component of customer engagement. This
depicted that customers may be checking out mobile applications during their leisure time for
entertainment and not necessarily for planned purchase. This presents retailers with a strong
opportunity to promote impulse purchases. Utilitarian experience oriented towards getting
product information is the second strongest dimension of customer engagement where during
purchase decision making process customers use mobile shopping platforms to evaluate various
information.
The second objective of this research was to examine the impact of customer engagement on
loyalty intention. While the construct structure in first two studies demonstrated strong emotional
dimensions of the construct, the third study provided empirical evidence of a strong influence of
customer engagement on loyalty intentions. By explaining variance in addition to satisfaction
and convenience, the results of this study positioned customer engagement as a strong predictor
of loyalty intentions which validates the conceptual work by van Doorn et al. (2010) where
loyalty was proposed as a consequence of customer engagement behavior.
31
Customer Engagement has a significant role in predicting various consumer behavior outcomes
of repeat purchase. The study therefore also contributes to relationship marketing literature. This
research also provides a catalyst for the future inquiry to validate proposed Customer
Engagement conceptualization and measurement scale in different cultures and applications.
Online and mobile retail is a multi-sided market (Eisenmann et al., 2006) where retailers
generate revenue not only from customers but also from merchants that sell their products and
advertisers who advertise to promote their merchandise. Retailers can use customer engagement
to differentiate themselves from competition in attracting merchants in the marketplace, as
highly engaged customers are likely to make more purchases. A demonstrated engagement can
be used as a tool for charging higher prices for advertisements and in retaining the advertisers as
engaged customers would pay more attention to the content and click on the same including
advertorial content.
32
Chapter 5
Conclusion
33
Chapter 5
Conclusion
Conclusion:
There is a growing body of literature on customer engagement; however, research in this domain
is still in its infancy. This study had two objectives. The first objective was to develop and
validate a measurement model for customer engagement with a specific focus on mobile devices
for shopping. To achieve that, this study developed and validated customer engagement as
second order construct arising out of six different customer experiences - social-facilitation, self-
connect, intrinsic enjoyment, time-filler, utilitarian and monetary evaluation experiences. Based
on the findings of this study time-filler, an emotional component emerged as the strongest
component of customer engagement.
This depicted that customers may be checking out mobile applications during their leisure time
for entertainment and not necessarily for planned purchase. This presents retailers with a strong
opportunity to promote impulse purchases. Utilitarian experience oriented towards getting
product information is the second strongest dimension of customer engagement where during
purchase decision making process customers use mobile shopping platforms to evaluate various
information. Crisp product information, in this case, would help sellers to get their products in
the consideration set for the customers. Social facilitation, the next strongest dimension depicts
the social importance of mobile application for customers which gives them a talking point
among their peers. This may be useful for companies to build word of mouth promotions by
influencing opinion leaders. Self connect and intrinsic enjoyment, give a depiction of customer
usage of mobile shopping platforms as a mode of entertainment. These components demonstrate
that customers have high connect while using mobile devices for product exploration which may
not be direct during purchase decision making and can be used to promote impulse purchase. The
last component, monetary evaluation enables customers to check prices of products of interest at
various portals before coming to a final decision. Often considered as the prime motive for using
online and mobile shopping sites, monetary evaluation has relatively low importance (while
significant) in building customer engagement as compared to some of the emotional dimensions.
These results support the emerging literature that suggests multi-dimensional nature of customer
engagement construct (Brodie et al., 2011;Dwivedi, 2015; Hollebeek et al., 2014). Further the
results highlights relatively stronger role of emotional experiences (time-filler, self-connect and
intrinsic enjoyment) in building customer engagement.
The second objective of this research was to examine the impact of customer engagement on
loyalty intention. While the construct structure in first two studies demonstrated strong emotional
34
dimensions of the construct, the third study provided empirical evidence of a strong influence of
customer engagement on loyalty intentions. By explaining variance in addition to satisfaction
and convenience, the results of this study positioned customer engagement as a strong predictor
of loyalty intentions which validates the conceptual work by van Doorn et al. (2010) where
loyalty was proposed as a consequence of customer engagement behaviour.
35
Reference:
36

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Consumers’ Attitude and Consumers’ Engagement toward Online / Mobile Banking in Bangladesh

Consumers’ Attitude and Consumers’ Engagement toward Online /

Date of Submission: 22.04.2018

Consumers’ Attitude and Consumers’ Engagement toward Online /

Faculty of Business Studies

Date of Submission: 22.04.2018

April 20, 2018

Mr. Mohammad Rokibul Hossain

We hope you find this report satisfactory.

I would like to particularly thank my instructor Mr. Mohammad Rokibul Hossain,

This report work is

3.1 Reliability: ........................................................................................................... 28

There are many sub objectives are as follows:

To find out Visual Appeal.

1.3.2 Population and Sampling:

1.3.3 Data Gathering and Analysis:

2.1 Consumer Attitudes:

2.1.1 Consumer Attitudes; Behavior, Cultural Influence and Adoption of

2.2 Consumer Engagement:

Marketing scholars have essentially conceptualized engagement as a multidimensional construct

2.3 Online Banking:

It is convenient, as it enables year round 24hour access.

2.4 Aesthetic Appeal:

2.4.1 Visual Appeal:

2.4.2 Originality of Design:

2.4.3 Entertainment Value:

2.5 Layout and Functionality:

Pursuing understanding of landmark technologies, Van Wyk (2008) demonstrates in a presentation

Usability index is an important measure to determine the relationships of different usability

2.5.2 Relevance of Information:

instance associated with finances, customers or organizational developments (Simmons, 1996).

Advertising Pine/Gilmore (1999, p. 76) define customization as “producing in response to a

2.6 Financial Security:

2.6.1 Ease of Payment:

2.6.2 Perceived Security:

2.7 Research Design:

Name of Variable Cronbach’s Alpha N of Items

Visual Appeal .927 4

Originality of Design .786 4

Entertainment Value .822 4

Relevance of Information .915 3

Customization / Personalization .938 4

Ease of Payment .966 4

Perceived Security .972 4

Customer Active Engagement .920 4

Attitude towards Online Banking .950 3

a) Some Respondents answer the questions without reading the

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