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RESEARCH PRODUCT

A conjoint analysis of customers' preferences for e-banking channels

subject

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Internet has transformed the manner in which banks interact with the customers. The purpose of the paper is to measure customers' preferences towards different channel attributes namely: internet banking, mobile banking and payment portals at a composite level that reflect the relative importance of usage attributes, i.e., payment type, transaction size, motivation to use and rate of urgency. Conjoint analysis was applied to estimate utilities for these attributes and to determine the existence of consumer groups with similar preference profiles. Furthermore, our study shows that the most preferred combination of utilities are customers preference to use payment portal, for 'paying bills' of 'less than Rs. 5,000' amount when it is 'very urgent' and they get 'discount coupons'. The results provide insightful information of consumers' motivation, attitudes and preferences for defining strategies to increase the usage of these services.