Ibragimova, Bashorat

Zhang, Lixuan

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Association for Information SystemsAIS Electronic Library (AISeL)AMCIS 2003 Proceedings Americas Conference on Information Systems(AMCIS)December 2003Factors Affecting the Intention to Adopt ElectronicBill Presentation and PaymentLixuan ZhangUniversity of North TexasBashorat IbragimovaUniversity of North TexasFollow this and additional works at: http://aisel.aisnet.org/amcis2003This material is brought to you by the Americas Conference on Information Systems (AMCIS) at AIS Electronic Library (AISeL). It has been acceptedfor inclusion in AMCIS 2003 Proceedings by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contactelibrary@aisnet.org.Recommended CitationZhang, Lixuan and Ibragimova, Bashorat, "Factors Affecting the Intention to Adopt Electronic Bill Presentation and Payment" (2003).AMCIS 2003 Proceedings. 30.http://aisel.aisnet.org/amcis2003/30240 2003 — Ninth Americas Conference on Information SystemsFACTORS AFFECTING THE INTENTION TO ADOPTELECTRONIC BILL PRESENTATION AND PAYMENTLixuan ZhangUniversity of North TexasZhangL@unt.eduBashorat IbragimovaUniversity of North TexasIbragimB@unt.eduAbstractElectronic Bill Presentation and Payment (EBPP) is a technology that is slowly gaining acceptance by consu-mers. The study intends to investigate the factors that affect adoption intentions of consumers. The attitudinal,social and behavioral factors, based on the decomposed Theory of Planned Behavior Model, which mayinfluence the intention to adopt, will be determined.Keywords:  Electronic bill presentation and payment, theory of planned behaviorIntroductionAs consumers increasingly rely on their credit cards, companies have developed a convenient and cost effective technology:Electronic Bill Presentation and Payment (EBPP). EBPP refers to the process by which companies bill consumers and receivepayments through the Internet (Au and Kauffman, 2001). The technology was developed even before the Internet became popular.Big banks like Chase promoted the use of television- or PC-based bill payment to consumers a decade ago (Hoffman, 2002).However, the adoption rate for consumers is disappointing. Consumers have been slow to embrace the new technology. Accordingto TowerGroup, less than 1% of all worldwide consumers will pay bill online (Webster, 2002). Consumers paid a total of 15.9 billion in bills in 2001. The number of bills is projected to increase to 16.8 billion in 2003 and 18.1billion in 2005 (Robertson, 2001). Printing, sending and processing bills is costly for institutions.  Attracting consumers to useEBPP will substantially reduce costs, although software installation and implementation costs will be unavoidable. In addition,various services offered with EBPP can increase customer satisfaction and customer retention.  Saks, the retail store, views theeffort of using EBPP as a building block for E-commerce. Through online payment, Saks hopes it can draw more consumers andretain them (Robinson, 2000)EBPP also offers many advantages to consumers. Cost savings is one of the primary reasons for consumers to use the technology.Consumers do not need to spend on postage and envelope to send checks by mail. Convenience is also one of the advantages thatEBPP offers. With several clicks, consumers can send their bills immediately. Companies integrate many other services withEBPP:  bill sorting, monthly email reminder, archival bill information, reverse number-look up, payment option and so on. The objective of the study is to identify the factors that affect users’ adoption of EBPP. To some extent, EBPP helps consumersto “create a new behavior” (Hoffman, 2001). EBPP technology faces difficulty of acceptance because it will change users’traditional paying habits. A framework based on theory of planned behavior (TPB) (Ajzen, 1985) and diffusion of innovations theory (ROI) (Rogers, 1983)is used to derive attitudinal, social and behavioral control factors. In practice, the findings will present the key factors affectingthe adoption of the technology to companies who are trying to promote it. Theoretical BackgroundSeveral models exist for explanation of individual technology acceptance. The research framework for this study is adapted fromthe model by Taylor and Todd (1995), which is based on the theory of planned behavior (TPB) (Ajzen 1985) and the DiffusionZhang & Ibragimova/Intention to Adopt EBPP2003 — Ninth Americas Conference on Information Systems 241of Innovation Theory (DOI) (Rogers 1983). In their study, Taylor and Todd compared the technology acceptance model (TAM)(Davis, 1989) and two variations of traditional TPB model. They concluded that although all three models explain a similaramount of target behavior, the decomposed TPB model presents a fuller understanding of behavioral intentions. The decomposedTPB model identified specific dimensions for attitude, subjective norms and perceived behavioral control. AttitudeThe attitudinal belief is decomposed into a set of perceived innovation characteristics. (Rogers, 1983). According to the Diffusionof Innovation Theory, five perceived attributes were considered significant. Among those, relative advantage, complexity andcompatibility have been found to contribute more to adoption decision (Tornatzky and Klein, 1982).  Therefore, in this study, thethree factors are chosen to be attitudinal belief dimensions. Relative Advantage. It refers to the degree to which it is perceived to be better than what it supercedes.  EBPP is perceived to offermore advantages than traditional mail payment: cost savings, convenience and more services. In addition, consumers can pay theirbills from any location and at any time of the day. Thus, the hypothesis is:H1a: Perceived relative advantage of using EBPP is positively related to its adoption.Complexity  Complexity is the degree at which an innovation is perceived to be difficult to use and understand (Rogers, 1983).If a technology is perceived as hard to implement, even if it can yield numerous benefits, consumers may be reluctant to adoptit. Complex technology requires training and education for the consumers and also support and maintenance from highly skilledIS staff. As Internet becomes more user-friendly, it is likely that consumers will find that EBPP is not hard to use. This leads tothe following hypothesis:H1b: Perceived Complexity of using EBPP is negatively related to its adoption. Compatibility   Compatibility is the degree to which an innovation is viewed as consistent with existing values, past experienceand needs of the potential adopter (Rogers, 1983). A compatible technology will fit more with the consumers, requiring lessadjustment. Compatibility with previously introduced technology or work practices will make it easier for consumers to acceptthe technology. With more people using the Internet to conduct transactions and search for information, it is expected that EBPPwill fit users’ lifestyle. Therefore, the following hypothesis is suggested:H1c: Perceived compatibility of EBPP is positively related to its adoption.Risk  Featherman (20001, 2002), Tan and Teo (2000) introduced risk as an additional dimension in diffusion and adoption oftechnology. Consumers are concerned about their privacy and information security of the website.  Consumers need to providetheir bank account information if they adopt EBPP. In case someone steals and tampers with that information, consumers willlose control of their financial information. Therefore, only people who perceive EBPP as a low risk task will be likely to adoptit. Thus, the hypothesis is:H1d: Perceived Risk of EBPP is negatively related to its adoption.Subjective NormsA subjective norm refers to “the person’s perception that most people who are important to him think he should or should notperform the behavior in question” (Fishbein and Ajzen, 1975). User opinions are often influenced by other people, either peers,families, supervisors or subordinators.  Although there might be different reference groups who will affect an individual’sintention to adopt EBPP, it is assumed that the influence of the groups as a whole will affect individual’s intention to adopt EBPP.Therefore, the hypothesis is:H2: The beliefs associated with subjective norms are positively related to Intention to adopt EBPP.E-Services242 2003 — Ninth Americas Conference on Information SystemsAttitudes•Relative Advantage•Complexity•Compatibility•RiskSubjective Norm•Peer InfluencePerceived Behavior Control•Web Skills•EBPP self-efficacyIntention to adopt EBPPBehavioral ControlBehavior control is defined as an individual’s belief concerning how difficult or easy performing the behavior would be. In thisstudy, it encompasses two components: web skills and EBPP self-efficacy. Koufaris (2002) identifies web skills as one importantfactor for online consumer behavior. The higher the consumers perceive their web skills, the more likely they will be inclined toadopt EBPP. Therefore, the hypothesis is: H3a: The perceived level of web skill is positively related to Intention to adopt EBPP.EBPP self-efficacy refers to the perceived ability of the people to adopt EBPP, which is a very specific variable. According toMarakas et al. (1998), computer self-efficacy is a multi-level construct, operating at two specific levels: at the general computerlevel and at the specific application level.  Application-specific self-efficacy is defined as an individual perfection of ability inusing a specific application. Agarwal et al. (2000) find a strong relationship between specific application efficacy and perceivedease of use. Similarly, it is hypothesized that:H3b: EBPP self -efficacy is positively related to Intention to adopt EBPP.Considering the above hypotheses, a framework is constructed. Intention to adopt EBPP is the dependent variable, while theindependent variables include attitude, subjective norms and perceived behavior controls. Figure 1 shows the research framework.Figure 1.  Framework for Intention to Adopt EBPPResearch MethodologyData CollectionA survey will be conducted to test the hypotheses. Subjects will be asked to rate their perceptions of EBPP using a 7-point LikertScale. Additional questions will ask about the subjects’ current payment methods and their demographic information. Zhang & Ibragimova/Intention to Adopt EBPP2003 — Ninth Americas Conference on Information Systems 243VariablesSeven independent variables are operationalized based on previous literature. Items measuring relative advantage, compatibility,complexity and subjective norms are adapted from Moore and Benbasat (1991). Risk and EBPP self-efficacy are measured usinginstrument of Tan and Teo (2000). Items measuring web skills and EBPP self-efficacy are adapted from Koufaris (2002). Contribution of the StudyEBPP is still a technology that waits for being widely adopted. From a theoretical point of view, the study will contribute to theliterature on technology adoption by examining the decomposed TPB model. From a practical point of view, the study will shedlight on the factors that affect consumers’ perception on EBPP, which will provide guidance for the institutions promoting thetechnology. ReferencesAgarwal, R., Sambamurthy, V., and Stair, R.M. “Research Report: The Evolving Relationship between General and SpecificComputer Self-Efficacy: An Empirical Assessment,” Information System Research (11:4), 2000, pp. 418-430.Ajzen, I. “ From Intentions to Actions: A Theory of Planned Behavior.” Action Control: From Cognition to Behavior, Kuhl andBeckmann (eds.), New York: Springer-Verlag, 1985, pp.11-39Au, Y.A., and Kauffman, R.J. “Should We Wait? Network Externalities, Compatibility and Electronic Billing Adoption.” Journalof Management Information Systems, (18:2,)2001, pp. 47 – 64Davis, F.D.” Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology,” MIS Quarterly13, 3, (1989), 319-339Featherman, M,S., Pavlou, Paul A, “Predicting E-Services Adoption: A Perspective Risk Facets Perspective,” Proceedings of 8thAmericas Conference on Information Systems.Featherman, M, S, “Extending the Technology Accpptance Model by Inclusion of Perceived Risk,” Proceedings of 7th AmericasConference on Information Systems, 2001.Fishbein, M., and Ajzen, I Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research, Reading, MA:Addison-Wesley, 1975Hoffman, K.E, “EBPP Fans Cling to Their Dreams,” Bank Technology News, (14:11), 2001, pp. 23Hoffman, K.E, “Electronic Bill Payment Comes of Age,” Community Banker, (11:7), 2002, pp.16-22.Koufaris, M, “ Applying the Technology Acceptance Model and Flow Theory to Online Consumer Behavior, “ InformationSystems Research, 13, 2 (2002), pp.205-223Marakas, G.M., Yi, M.Y., and Johnson, R. “The multilevel and multifaceted character of computer self-efficacy: Toward a clari-fication of the construct and an integrative framework for research, Information Systems Research, (9.2),1998, pp.126-163.Morre, G, C., Benbasat, Izak, “Development of an Instrument to Measure the Perceptions of Adopting an Information TechnologyInnovation,” Information Systems Research, (2: 3), 1991, pp.192-222Robertson, B, “Electronic Bill Presentation and Payment,” http://www.emc.com/ebusiness/webcast/seminar_3.jsp  retrievedon 11/30/2002Robinson, T, “Online Bill Payment: Ready to Break Through?” Information Week, Oct 23, 2000, pp.158-160.Rogers, E.M. Diffusion of Innovations, New York: The Free Press, 1983Tan, M., Teo, and Thompson S.H, “Factors Influencing the Adoption of Internet Banking,” Journal of the AIS. (1:5), 2000Tornatzky, L.G, and Klein, K, “Innovation Characteristics and Innovation Adoption-Implementation: A Meta-Analysis ofFinding,” IEEE Transaction on Engineering Management. (29:1), 1982, pp.28-45.Webster, John, “Moving Beyond Just Paying the Bills, “ComputerWorld, (2002)

Factors Affecting the Intention to Adopt Electronic Bill Presentation and Payment

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Factors Affecting the Intention to Adopt Electronic Bill Presentation and Payment

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