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Financial institutions using social media – do consumers perceive value?

Paula Dootson (QUT Business School, Queensland University of Technology, Brisbane, Australia)
Amanda Beatson (QUT Business School, Queensland University of Technology, Brisbane, Australia)
Judy Drennan (QUT Business School, Queensland University of Technology, Brisbane, Australia)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 1 February 2016

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Abstract

Purpose

The purpose of this paper is to examine consumer perceptions of value of financial institutions using social media to interact with consumers; if overall perceived value predicts a consumer’s intention to adopt, and if intention predicts self-reported adoption of social media to interact with a financial institution; and if perceptions of value in using social media to interact with a financial institution changes over time.

Design/methodology/approach

Self-administered surveys were run at two time points; 2010 and 2014. Data were analyzed using multiple and mediated regressions, and t-tests. Comparisons are made between the two time points.

Findings

Perceived usefulness, economic value, and social value predicted overall perceived value, which in turn predicted a consumer’s intention to adopt social media to interact with a financial institution. At Time 2, adoption intention predicted self-reported usage behavior. Finally, there were significant differences between perceptions across Time 1 and 2.

Research limitations/implications

The implications of the research highlight the importance of overall perceived value in the role of adoption intention, and that at Time 2, adoption intention predicted self-reported adoption to read and share content. A reduction in perceptions of value and intentions from Time 1 to Time 2 could be explained by perceptions of technology insecurity. In future studies, the authors recommend examining inhibitors to adoption including hedonic value.

Practical implications

The findings suggest that consumers will use social media if the sector creates and clearly articulates consumer value from using social media. The sector also needs to address technology security perceptions to increase usage of social media.

Originality/value

This paper is one of the first to investigate the consumer’s perspective in social media adoption by financial institutions, by exploring the role of value in consumer adoption and usage of social media.

Keywords

Acknowledgements

This paper was prepared with the assistance of the Smart Services Cooperative Research Centre, and the Services Innovation Research Program, QUT Business School, Queensland University of Technology.

Citation

Dootson, P., Beatson, A. and Drennan, J. (2016), "Financial institutions using social media – do consumers perceive value?", International Journal of Bank Marketing, Vol. 34 No. 1, pp. 9-36. https://doi.org/10.1108/IJBM-06-2014-0079

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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