Consumer Behaviour And E-banking Adoption in Selected Banks in Mogadishu-somalia

ABSTRACT The study was set to assess the consumer’s behaviour on c-banking adoption in Mogadishu Somalia; using Salarn and Prime banks based on the objectives of assessing relationship between customer attitude and adoption of electronic banking in Somalia, determining the relationship between customer beliefs and adoption of electronic banking in Somalia and assessing the relationship between customer trust on adoption of electronic banking in Somalia. The research used a descriptive research design because of its ability to describe results from questionnaires and interviews and employs both quantitative and qualitative research approaches. The population were 280 and 162 as the sample that provided the data. The researcher findings were that consumer behaviour was having a positive but not very significant effect on electronic banking adoption in Mogadishu. The findings show that all the dimensions of consumer behaviour were found not significantly contributing to electronic banking adoption.The findings on the first objectives were that customer attitude and adoption of electronic banking in Somalia was found inadequate on the dimensions were found inactive the attitudes werc negative on the adoption of c-banking. On the second objective the customer beliefs indicated that majority of the responses provided that customer beliefs in terms of computer illiteracy disables, religious affiliations, banking is supportive to my day to day living were inefficient for the development. Customer trust dimension was established showing that customer trust and adoption of electronic banking in Somalia. Then Pearson correlations denote a non-existing relationship between consumer behaviour and electronic banking adoption in Mogadishu Somalia according to consumer’s attitude, trust and beliefs. The study recommends adopting new means of operations through sensitization of the masses in order to alter their attitudes towards the c-banking. There is need to sensitize masses especially on religious and cultural affiliations so as to reduce the prevalence of the people usage of electronic banking and improve its adoption. Bank customers must have to consider the issue of hacking, the integrity of the password been used, data encryption. There is need to improve the security of the c-banking systems. The customers will thus not be worried that their personal information and money will be transferred to third party without their knowledge. This creates the long term relations with the bank leading to trust and thus resulting into internet banking adoption.

 TABLE OF CONTENTS

APPROVAL

DEDICATION

DECLARATION

ACKNOWLEDGEMENT

.

iv

LIST OF ACRONOMYS

LIST OF TABLES

ABSTRACT

CHAPTER ONE 1

INTRODUCTION i

1.1 Background of the Study 1

1.1. 1 Historical Perspective 1

1.1.2 Theoretical Perspective 2

1.1.3 Conceptual Perspective 3

1.1.4 Contextual Perspective 4

1.2 Statement of the Problem 5

1.3 Purpose of the study

1.4Objectives of the study 6

1.5 Research Questions 6

1.6 Hypotheses of the study 6

1.7 Scope of the study 6

1.7.1 Geographical scope 6

1.7.2 Theoretical Scope 6

1.7,3 Content Scope 7

1.7.4 Time Scope 7

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1.8 Significance of the Study .7

1 ~9 Operational definitions of key terms 8

CHAPTER TWO 9

LITERATURE REVIEW 9

2.0 Introduction 9

2.1 Theoretical review 9

2.1.1 Theory of Reasoned Action 9

2.1.2 Theory of Planned Behaviour 10

2.2 Conceptual frame Work 11

2.3.1 Relationship between customer attitude and adoption of electronic banking 11

2.3.3 Relationship between customer trust and adoption of electronic banking 15

2.4 Related Studies 16

2.5 Research Gaps 18

CHAPTER THREE 19

METHODOLOGY 19

3.0 Introduction 19

3.1 Research designs 19

3.2 Studypopulation 19

3.3 Sample size 19

3.4 Sampling Procedures 20

3.5 Data Collection instruments 20

3.6 Validity and reliability 21

3.6.1 Validity of the study 21

3.6.2 Reliability of the study 21

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3.7 Data analysis .22

3.8 Ethical Considerations 23

CHAPTER FOUR 24

PRESENTATION ANALYSIS AND INTERPRETATION OF FINDINGS 24

4.0 Introduction 24

4.1 Demographic Profile of respondents 24

4.2 Customer attitude and adoption of electronic banking in Mogadishu Somalia 27

4.3 Customer beliefs and adoption of electronic banking in Mogadishu Somalia 30

4.3.3 Level of customer beliefs in adoption of electronic banking in Mogadishu Somalia 30

4.4 Customer trust on adoption of electronic ban~:ing in Mogadishu Somalia 32

CHAPTER FIVE 36

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS 36

5.0 Introduction 36

5.1 Discussion of findings 36

5.2 Conclusions 38

5.3 Recommendations 38

5.4 Areas of further study 39

REFERENCES 40

APPENDIX I: QUESTIONNAIRES 45

Section A: Demographic data 45

Appendix ii: An interview guide for the key respondents 49

Appendix i: Sample size for the given population sizes (N) 50