Determinants of On-Line Channel Use for Purchasing Financial Products

Sridhar N. Ramaswami, Troy J. Strader, and Karen Brett
International Journal of Electronic Commerce,
Volume 5, Number 2, Winter 2000-2001, pp. 95.

Abstract: On-line shopping is expected to experience exponential growth in the coming decades, but few researchers have examined consumers’ motivations for using on-line channels. The current study investigates the determinants of consumer use of on-line channels to purchase financial products. There are three key findings. First, consumers who experience conflict with their financial agents are more likely to use the on-line channel. This suggests that conflicting relationships can make the two channels competitive rather than complementary. Second, consumer willingness is an important predictor of on-line information search. Third, consumers who use the on-line channel for information search are more likely to use it for transactions. The last two findings indicate that consumer adoption of the on-line channel is a stagewise process.

Key Words and Phrases: Consumer ability, consumer behavior, consumer motivation, electronic markets, financial services industry.