Applying the technology acceptance model to the online retailing of financial services

Abstract Purpose – Extant research has examined consumer acceptance of the internet in various contexts mainly as a dichotomy (adoption/non‐adoption), thus ignoring the process underlying adoption. This paper aims to provide insights into factors determining the extent to which an innovation is adopted. Design/methodology/approach – The paper reviews the literature on the technology acceptance model (TAM), and justifies the use of this model to explore the factors contributing to the extent to which consumers use the internet as a distribution channel for financial services (FS). Data are collected through telephone interviews with 300 UK consumers responding to a questionnaire. Findings – The application of the TAM model is helpful but additional links need to be included. The key drivers of extent of use are past experience with the internet as a purchasing channel (for non‐FS) and attitudinal aspects, i.e. positive emotions towards the internet as a distribution channel for FS. Insecurity about this channel does not appear to be an obstacle and perceived usefulness is not directly linked to extent of use but fully mediated via attitude towards the channel. Consumers with computer access from home, those with an active interest in FS, as well as consumers who have general online purchasing experience tend to find this channel easy to use, which, jointly with perceived usefulness, leads to a positive attitude toward this distribution channel. Research limitations/implications – The findings are limited to the FS online retail context and may not be generalisable beyond this context. Future research should be considered using a longitudinal approach. Practical implications – FS retail providers should consider prior experience with the internet as a distribution channel and product category involvement as segmentation bases, and also provide more opportunities for consumers to try and observe the internet as a distribution channel. Originality/value – This research explores the determinants of consumer acceptance of online retailing from a process‐based rather than a binary view of adoption of an innovation.