FINANCIAL CAPABILITY AND TECHNOLOGY IMPLICATIONS FOR ONLINE SHOPPING
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Technická Univerzita v Liberci
Technical university of Liberec, Czech Republic
Technical university of Liberec, Czech Republic
Abstract
To promote online shoppers’ long-term interest, consumers need to have the knowledge and ability to avoid problems with fi nancial issues. Financial capability helps to put consumers on the path to a sustainable fi nancial future. However, previous studies only focused on fi nancial capability in a fi nancial context. To handle personal fi nance systematically and successfully in an online setting, this study extends an enhanced understanding of how fi nancial capability on online consumer behaviour. Based on the data of 690 respondents collected by a face-to-face from eight main regions in Albania, this study employed principal components analysis and logistic regression in order to investigate the effect of consumers’ fi nancial capabilities and technology use on the decision to purchase online. The outcome of this study fi rstly identifi es six dimensions of fi nancial capabilities, namely, digital banking usage, fi nancial service risk, fi nancial advice, payment risk, risk tolerance, and fi nancial attitude. Secondly, the fi nding revealed that individuals who use smartphones and administrate a social media account, are more likely to involve in purchasing through online channels. Moreover, the decision to purchase online is more prone for those individuals who manifest high levels in digital banking usage, fi nancial advice, prior bank experience and technology usage, and low levels in attitude towards payment risk and attitude towards risk tolerance. This paper offers useful insights concerning the determinants of online purchasing by combining individuals’ fi nancial capability, technology and social media usage along with its demographic characteristics. In term of practical contribution, this study provides a useful model by incorporating for measuring and managing consumers’ fi nancial capability to enhance their involvement and to reduce their cognitive dissonance in the online shopping context. This study also contributes to the accumulated knowledge and encourages consumers to use digital banking and consult their fi nancial issues when purchasing online.
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Subject(s)
financial capability, logistic regression, online shopping, prior bank experience, smartphone, social media
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ISSN
1212-3609