FINANCIAL CAPABILITY AND TECHNOLOGY IMPLICATIONS FOR ONLINE SHOPPING

156 2020, XXIII, 2 Finance DOI: 10.15240/ ul/001/2020-2-011 FINANCIAL CAPABILITY AND TECHNOLOGY IMPLICATIONS FOR ONLINE SHOPPING Gen jan Çe a1, Quyen Phu Thi Phan2, A menia And oniceanu3, Edmond Çe a4 1 Tomas Ba a Uni e si y in Zlin, Facul y o Managemen and Economics, Czech Republic, ORCID: 0000-0002-9324-181X, [email p o ec ed]; 2 The Uni e si y o Danang, Uni e si y o Economics, Facul y o Ma ke ing, Vie nam, ORCID: 0000-0002-4048-1369, [email p o ec ed]; 3 Bucha es Uni e si y o Economic S udies, In e na ional Cen e o Public Managemen , Romania, [email p o ec ed]; 4 Tomas Ba a Uni e si y in Zlin, Facul y o Managemen and Economics, Czech Republic, ORCID: 0000-0003-3546-2101, [email p o ec ed]. Abs ac : To p omo e online shoppe s’ long- e m in e es , consume s need o ha e he knowledge and abili y o a oid p oblems wi h i nancial issues. Financial capabili y helps o pu consume s on he pa h o a sus ainable i nancial u u e. Howe e , p e ious s udies only ocused on i nancial capabili y in a i nancial con ex . To handle pe sonal i nance sys ema ically and success ully in an online se ing, his s udy ex ends an enhanced unde s anding o how i nancial capabili y on online consume beha iou . Based on he da a o 690 esponden s collec ed by a ace- o- ace om eigh main egions in Albania, his s udy employed p incipal componen s analysis and logis ic eg ession in o de o in es iga e he e ec o consume s’ i nancial capabili ies and echnology use on he decision o pu chase online. The ou come o his s udy i s ly iden i i es six dimensions o i nancial capabili ies, namely, digi al banking usage, i nancial se ice isk, i nancial ad ice, paymen isk, isk ole ance, and i nancial a i ude. Secondly, he i nding e ealed ha indi iduals who use sma phones and adminis a e a social media accoun , a e mo e likely o in ol e in pu chasing h ough online channels. Mo eo e , he decision o pu chase online is mo e p one o hose indi iduals who mani es high le els in digi al banking usage, i nancial ad ice, p io bank expe ience and echnology usage, and low le els in a i ude owa ds paymen isk and a i ude owa ds isk ole ance. This pape o e s use ul insigh s conce ning he de e minan s o online pu chasing by combining indi iduals’ i nancial capabili y, echnology and social media usage along wi h i s demog aphic cha ac e is ics. In e m o p ac ical con ibu ion, his s udy p o ides a use ul model by inco po a ing o measu ing and managing consume s’ i nancial capabili y o enhance hei in ol emen and o educe hei cogni i e dissonance in he online shopping con ex . This s udy also con ibu es o he accumula ed knowledge and encou ages consume s o use digi al banking and consul hei i nancial issues when pu chasing online. Keywo ds: Financial capabili y, logis ic eg ession, online shopping, p io bank expe ience, sma phone, social media. JEL Classi i ca ion: G53, D91. APA S yle Ci a ion: Çe a, G., Phan, Q. P. T., And oniceanu, A., & Çe a, E. (2020). Financial Capabili y and Technology Implica ions o Online Shopping. E&M Economics and Managemen , 23(2), 156–172. h ps://doi.o g/10.15240/ ul/001/2020-2-011 In oduc ion The In e ne plays a i al ole in ou daily li e in ha people can easily access ou wo ld and open in e na ional bo de s. Meanwhile, online shopping has been widely accep ed as a way o pu chasing p oduc s and se ices. I p o ides a dominan al e na i e o adi ional e ail shopping. Consume s can sea ch o mo e EM_2_2020.indd 156EM_2_2020.indd 156 1.6.2020 16:39:481.6.2020 16:39:48 157 2, XXIII, 2020 Finance in o ma ion and selec o compa e p oduc and p ice, mo e op ions, con enience. Online shopping o e s mo e sa is ac ion o consume s sa e ime (Ka awe awa aks & Wang, 2011). Howe e , he in es iga ion o online consume beha iou is ela i ely unde de eloped (Smi h e al., 2013). Al hough online shopping beha iou is no a new opic, he unanswe ed ques ion ha wha de e mines consume s’ willingness o pu chase a p oduc online ha e a ac ed many esea che s. In his line o s udy, esea che s iden i i ed ac o s in l uencing on pu chase beha iou o he consume based on Theo y Planned Beha io (Ajzen, 1991), Technology Accep ance Model (Da is, 1989), S imulus–O ganism–Response (Meh abian & Russell, 1974). The i s app oach ocused on he di ec impac on consume beha iou . Fo example, Wu and Ke (2015) in eg a ed a model o pe sonali y ai s, pe cei ed isk and echnology accep ance in online shopping beha iou . Ano he app oach ocused on he indi ec impac o a i ude, us on consume s’ pu chase beha iou (Al-Debei, Ak oush, & Ashou i, 2015; Belás & Gabčo á, 2016; Oluwa emi & Adebiyi, 2018). Ne e heless, bo h app oaches ocus on consume s’ beha iou al in en ion as a p edic o o ac ual pu chase beha iou . This s udy explo es ( he di ec impac o consume s’ i nancial capabili y on hei ac ual pu chase decisions) consume s’ ac ual pu chase decisions and i s an eceden s. Recen ly, i is acknowledged ha wi h he ise o se ice deli e y, in gene al, and online shopping, in pa icula , some o he aspec s (such as secu i y, us and pe cei ed isk) ha e become key issues o online beha iou (Kim, Fe in, & Rao, 2008; Mou, Shin, & Cohen, 2017; Sil a, Pinho, Soa es, & Sá, 2019; Suchanek & K alo a, 2018). Howe e , he e is limi ed a en ion ela ing o consume s’ i nancial ma e s while many cus ome s ha e had e y li le unde s anding o i nances, how c edi wo ks and he po en ial i nancial isk (Lusa di & Mi chell, 2014). Unlike p e ious esea ch, his s udy ocuses on he po en ial e ec o consume i nancial capabili y on hei online pu chase decisions. Addi ionally, in he i eld o consume i nance, p e ious s udies ocused on he in l uence o i nancial capabili y on consume s’ beha iou owa d i nancial p oduc s/se ice. In his s udy, we a gue ha cus ome s’ knowledge and unde s and abou i nancial ma e s play a i al ole in hei pu chase decision owa ds all p oduc s, no only owa ds i nancial p oduc s. The e o e, in he au ho s’ knowledge, his is he i s s udy ha in es iga es he ela ionship be ween consume s’ i nancial capabili y on consume s’ pu chase decisions gene ally in he online con ex . Financial capabili y cap u es people’s knowledge o i nancial ma e s, hei abili y o manage hei money and o ake con ol o hei income. Based on Sen’s capabili y heo y (1993), i nancial capabili y e e s o he abili y o ac (e.g. people’s knowledge, skills, a i udes, habi s, mo i a ions, con i dence and sel - e i cacy), and oppo uni y o ac (e.g. people’s awa eness o basic i nancial p oduc s hey need o manage hei money li es) (Colla d, 2019). P e ious s udies o i nancial capabili y used specialis su eys (A kinson, McKay, Kempson, & Colla d, 2006; Kempson, Colla d, & Moo e, 2005; Taylo , 2011). Adop ing Sen’s capabili y heo y (1993), ou pape ex ends exis ing knowledge abou he po en ial app oach o measu ing key componen s o i nancial capabili y ha ela e o consume s’ knowledge, a i udes owa d isk and i nancial ma e s, i nancial managemen using esponses o su ey ques ions in a bank su ey abou consume s’ ac ual shopping beha iou . While mos o he p e ious s udies me ely ocused on i nancial capabili y in i nancial decision making, his esea ch makes an impo an con ibu ion o he cu en li e a u e by ex ending ou knowledge o i nancial capabili y on consume online shopping decision making. In addi ion, o s udy he online shopping opic, echnology and social media usage ha e come in o he schola s’ a en ion (Hube , Blu , B ock, Backhaus, & Ebe ha d , 2017; Pucci, Casp ini, Nosi, & Zanni, 2019). To be able o p edic he e ec s o echnology usage on online pu chasing, p e ious s udies o en explo ed he accep ance o echnology (Hube e al., 2017); and se e al s udies ocused on speci i c echnologies such as a sma phone (Vo opano a, 2015), social media (Mikale , Giannakos, & Pa eli, 2013). Howe e , less is known abou he easons ha in l uence consume s’ ac ual online shopping abou he wide anges o echnologies a ailable o hem in hei e e yday li es. This s udy ocuses on wo ypes o echnologies, namely, sma phone and social media. Addi ionally, excep o age, gende , income, occupa ion as con ol EM_2_2020.indd 157EM_2_2020.indd 157 1.6.2020 16:39:481.6.2020 16:39:48 158 2020, XXIII, 2 Finance a iables, his s udy explo es he impac o o he demog aphic (e.g. p io banking expe ience) on online shopping. The widesp ead adop ion o he banking sec o is s ongly linkage in he o e all online en i onmen (Hamidi, Rad, & Jahany, 2012), cus ome wi h mo e banking expe ience end o choose he In e ne as a pla o m o shopping. Howe e , he impac o p io banking expe ience on ac ual online pu chase has no been ho oughly in es iga ed. The cu en s udy also i lls his gap in he li e a u e. Fu he mo e, mos o he s udies in online shopping pi o ed on he de eloped coun ies’ ma ke s. Ve y limi ed esea ch has been conduc ed in he con ex o in es iga ing online consume beha iou ac oss ansi ion coun ies. Obli iously, di e en online ac o s in l uence online consume s’ beha iou depending on he en i onmen o di e en egions. Albania is one o he ansi ion coun ies and Albania consume s a e mo e l exible. A epo o In o ma ion and Communica ion Technology (ICT) in Albania (2019) showed ha online pu chases a e ca ied ou by 10.1% o he popula ion aged 16–74 yea s old. Howe e , i is in e es ing ha mo e han 90% o he ansac ion in Albania wi ness cash ansac ion and a big chunk o he popula ion does no ha e a bank accoun . This leads a doub ha a low c edi ca d usage in Albania is he unde lying eason o a low online pu chasing powe . This s udy a gues ha consume s may be mo i a ed online shopping by hei i nancial knowledge and abili ies in a oiding p oblems wi h i nancial issues. Fo hese easons, i is aluable o ocus on he analysis o online consume s in Albania unde he impac o i nancial capabili ies. Based on he abo e gaps, his s udy ocused on wo main objec i es. Fi s , wi h he Sen’s capabili y heo y (1993), his s udy iden i i es a iables in he bank su ey o online consume s ha a e ele an o h ee key con ibu o y ac o s in i nancial capabili y – knowledge, a i ude, and money managemen . Then, his s udy in es iga es he e ec o hese dimensions on online shopping. Secondly, his s udy examines he impac s o echnology usage (e.g. social media, sma phone) and p io bank expe ience on consume s’ ac ual shopping beha iou in a ansi ion coun y con ex , e.g. Albanian. This s udy makes signi i can con ibu ions o he ex an li e a u e. Fi s ly, his s udy con ibu es o he li e a u e o online consume beha iou by explo ing he po en ial ole o i nancial capabili y, echnology usage, and p io bank expe ience on ac ual shopping beha iou . This s udy also con ibu es o he li e a u e o i nancial capabili y by using a unique se o a iables o measu e i nancial capabili y. This can be in o ma i e o online endo s o de elop e ec i e i nancial s a egies o help ackle consume i nancial ma e s when shopping online. Nex pa o his pape is dedica ed o he li e a u e e iew and hypo heses de elopmen . Fu he pa desc ibes da a collec ion, a iable measu emen and he used me hod. The esul s a e analysed and in e p e ed unde he sec ion named ‘ esul s’. Then, ou i ndings a e discussed. A he end o he pape , he conclusions a e p esen ed. 1. Theo e ical Backg ound Consume s always i nd ou hei bes decisions gi en ha hey ha e a limi ed budge o money. While pu chasing p oduc s/se ice om a shop, consume s ha e o spend bo h money and ime. Wi h he phenomenon o In e ne shopping oday, he ime cos has almos elimina ed. Howe e , as uly s a ed ha no hing comes wi hou a cos in business. When consume s ha e unlimi ed choice, hey spend a lo o ime wi hou making any i nal decision. The bigges eason is ha he e is no “ ouch and eel ac o ” in an online shopping con ex , he e o e, consume s a e based on he p ice in hei pu chase. Meanwhile, hey eel no sa e when pu chasing p oduc s ia c edi ca ds (Bilgihan & Kandampully, 2016). Gene ally, mos s udies poin ed ou ha i nancial issues ( i nancial isk, how o use a c edi ca d, how o spend money o pu chase among unlimi ed choice) always a e consume s’ issues when pu chasing online. Financial capabili y is a ela i ely new cons uc eme ged in he las decade. Acco ding o Sen’s capabili y heo y (1993), i nancial capabili y e e s o people’s abili y wi h he igh so s o knowledge, skills, a i ude, habi s, mo i a ion, as well as hei oppo uni y owa d accessing he basic i nancial p oduc s and se ice ha a e equipped o manage hei i nancial ma e s. Simila i y, Taylo (2011) de i ned ha i nancial capabili y e e s o people’s knowledge o manage and ake con ol o hei i nances. This concep men ions making app op ia e i nancial decisions, unde s anding how o con ol c edi and deb , and iden i ying EM_2_2020.indd 158EM_2_2020.indd 158 1.6.2020 16:39:481.6.2020 16:39:48 159 2, XXIII, 2020 Finance p oduc s and se ices ha a e app op ia e (Xiao, Chen, & Chen, 2014). Howe e , Despa d and Chowa (2014) poin ed ou ha he concep o i nancial capabili y and i nancial li e acy a e o en unde s ood in e changeably. While Hus on (2010) de i ned i nancial li e acy as he desc ip ion o i nancial knowledge, McKay (2011) desc ibed ha i nancial capabili y ocuses on i nancial beha iou and e l ec s o pu ing i nancial knowledge in o ac ion, which is linked wi h Hus on’s (2010) de i ni ion. In i s glance, bo h o de i ni ion, i nancial capabili y and i nancial li e acy a e simila ways (Çe a & Tuzi, 2019; Nguyen & Rozsa, 2019; Shk a chuk & Sla ’yuk, 2019). Howe e , She aden (2013) indica ed ha i nancial li e acy assumes ha indi iduals all ha e equal chances o enhance i nancial knowledge and skills, bu he i nancial capabili y assumes ha no all may ha e he same chances. Addi ionally, i nancial capabili y is o med h ough in e ac ion wi h and eedback om he en i onmen . In he online con ex , consume s’ i nancial knowledge and skills a e shaped in online communi ies. The e o e, based on Sen’s capabili y heo y (1993), he concep o i nancial capabili y ha is de i ned as consume s’ knowledge, a i ude and hei i nancial managemen in his s udy. Some schola s ha e de eloped he concep ual model and empi ical es s o i nancial capabili y. The i s s udy o i nancial capabili y was conduc ed by he Financial Se ices Au ho i y (FSA) in he UK (A kinson e al., 2006). This esea ch iden i i ed i e di e en cons uc s o i nancial capabili y, such as: (1) making ends mee : educe p oblems in i nancial obliga ions, (2) managing money: keeping ack wi h con ol an o e iew o expenses, (3) planning ahead: being u u e- o ien ed, (4) selec ing p oduc s, e.g. deciding easonably in i nancial ma e s, and (5) s aying in o med, e.g. sea ching in o ma ion abou i nancial p oduc s. All ac o s we e desc ibed closely wi h i nancial beha iou s. Then, Taylo (2011) de eloped a measu emen o i nancial capabili y based on a combina ion o beha iou and ou come cons uc s. Speci i cally, he explo ed se en a iables in i nancial capabili y. The e a e ou s a emen s o i nancial ou comes, such as (1) di i cul ies in spending accommoda ion, (2) bo owing o mee ing housing paymen s, (3) make cu back, (4) ound you sel o wo mon hs behind wi h you en / mo gage, (6) Would you say ha you a e be e o , wo se o o abou he same i nancially han you we e a yea ago? Addi ionally, he e a e wo s a emen s o i nancial beha iou s, such as: (5) how well would you say you a e managing i nancially hese days, and (7) “sa e any amoun o you income”. Fu he mo e, Xiao e al. (2014) measu ed i nancial capabili y wi h h ee cons uc s, pe cei ed i nancial capabili y, i nancial li e acy, and i nancial beha iou . Despa d and Chowa (2014) examined i nancial li e acy and i nancial inclusion as a combina ion o i nancial capabili y. The s udy is o ex end exis ing knowledge abou po en ial ways o measu ing key componen s o i nancial capabili y ha ela ed o consume s’ knowledge and unde s anding o i nancial ma e s, including hei abili y o ake con ol abou i nances, hei a i ude o i nancial isk (Taylo , 2011), hei knowledge abou i nancial p o ide s, as well as i nancial counsello s (in o mal sou ce, e.g. amily, iends, newspape ; and o mal sou ce, e.g., i nancial ad iso , banke ) ha hey use o gain i nancial knowledge (Vy yan, Blue, & B imble, 2014). Consume s oday a e inc easing he use o online and digi al en i onmen s o shopping and making i nancial ansac ions unde an unce ain y en i onmen . The inc ease in In e ne access and he g ow h o In e ne banking ha e led o a d ama ic ise in pu chasing goods and se ices on he In e ne (MCEETYA, 2011). Consume s a e esponsible o making decisions in he online con ex . They need o enhance hei capabili ies in sol ing hei i nancial issues and plan o needs and wan s. Lam and Lam (2017) a gued ha consume s ha a e mo e likely o ake con ol o hei i nancial si ua ion e l ec hei buying beha iou and expendi u es. Du oy, Go se and Lejoyeux (2014) no ed ha schola s should ocus on consume s’ i nancial beha iou in online consume beha iou because o di e en In e ne - ela ed beha iou s and o l ine shopping. Shopping on he In e ne is highly isky ega ding he paymen p ocess ia e-banking. Cus ome may ace secu i y and p i acy p oblems on he In e ne . These isks may inc ease because consume s a e conce ned abou he secu i y o ansmi ing c edi ca d in o ma ion h ough he In e ne . Addi ionally, o gain i nancial knowledge, mos consume s base on a la ge amoun o in o ma ion and ad ice consul an s, consis ing o in o mal sou ces (i.e. amily, iends) o EM_2_2020.indd 159EM_2_2020.indd 159 1.6.2020 16:39:481.6.2020 16:39:48 160 2020, XXIII, 2 Finance o mal sou ces (i.e. i nancial ad iso s o banke s) be o e conduc ing hei pu chasing decisions (MCEETYA, 2011). Based on he abo e discussion, he hypo hesis is: H1: Consume s’ i nancial capabili y a ec s online shopping. A majo conce n among all in e ne consume s is ha hey mus ace a highe isk han adi ional shopping i hey a e using s olen c edi ca ds o audulen epudia ion o he online pu chase. Banks mus adjus hei p io i ies o espond o his ans o ma ional shi in he way consume s do hei banking, gi en ha he use can economize on ime and e o . Al hough cus ome s can selec he cash on deli e y (COD) in online pu chasing; howe e , Hamidi e al. (2012) indica ed ha e-banking has p ominen ly impac ed consume s’ pu chasing beha iou . He explained ha cus ome s can use online banking o making ansac ions by debi ca d o c edi ca d, e en when hey ha e no eady cash as long as hey ha e hei mobile line linked o hei bank accoun (Belás, Cipo o á, & Demjan, 2014; Negash, Meso, & Wi edu, 2011). The e is no doub abou he ole o e-banking ha is g ea ly a ec ing consume s’ pu chase decisions. Consume s who ha e expe ience in he online paymen p ocess ha e splendidly inc eased he way people pay o hei bills. Based on he abo e discussion, we a gue ha cus ome s who ha e expe ience in bank usage a e much mo e com o able wi h online banking in online shopping. The e o e, we hypo hesize ha : H2: Indi iduals’ p io bank expe ience posi i ely in l uences online shopping. Social media and sma phone change bo h he way consume s in e ac and consume in o ma ion and how companies communica e wi h consume s and deli e hei se ices. When consume s ha e begun using In e ne - enabled mul i-de ices and social ne wo king si es, he e has been a conside able inc ease and ans e in online shopping beha iou (Wagne , Sch amm-Klein, & S einmann, 2013). Fi s o all, he phenomenon o social media has undamen ally changed how many people, communi ies and companies communica e and in e ac . Kaplan and Haenlein (2010) de i ned social media as “a g oup o In e ne - based applica ions ha build on he ideological and echnological ounda ions o Web 2.0, and allow he c ea ion and exchange o use gene a ed con en ”. In he a ea o business, social media has opened up a new a ea o elec ic comme ce, called social comme ce, which changes he manne we de i ne online shopping. Social comme ce is o med on di e en ypes o social media, such as Facebook, Ins ag am, You ube, and Twi e . Social media ha e undamen ally changed he consume decision p ocess when i p o ides pe sonalized se ice and p oduc deli e y based on consume p e e ences, in e es , and in e ac ions wi h o he consume s and iends (Gib eel, AlO aibi, & Al mann, 2018). P e ious s udies indica ed ha one o he easons why consume s go shopping is due o he enjoymen which he social in e ac ion p o ides (Mikale e al., 2013). When use s log on he social media pla o m, hey ha e he oppo uni y o explo e he b and pages, commen s, sha es a pho o, o expe ience (La oche, Habibi, & Richa d, 2013). Fo ins ance, consume e iews a e widely a ailable o p oduc s and se ices on he social media pla o m, helps consume s in hei pu chasing decisions (Pan & Chiou, 2011). A he same ime, sma phones a e also he p edominan d i e o g ow h o mobile e-comme ce ansac ions. Mo e han a hi d o all e-comme ce ansac ions a e pe o med ia mobile de ices nowadays (CRITEO, 2018). Consume s use a sma phone o pu chase p oduc and se ices o e a wi eless elecommunica ion ne wo k (Hube e al., 2017). Consume s can pe o m a pu chase online using hei mobile de ice. A epo indica ed ha consume s who ha e sma phones a e mo e likely o shopping han o he s who don’ use a sma phone (Shech e , 2017). In ac , consume s can access he se ice h ough he e- e aile s om a compu e o by using hei mobile phones o download ee apps (called as m-comme ce), which o e s he same unc ionali ies as he websi e. They can pu chase p oduc s h ough he mobile app and hen collec hem in he closes s o e. On he o he hand, consume s a e b owsing and buying ac oss all channels and mo e ac i e on mobile de ices han e e (CRITEO, 2018). Based on he line o a gumen , we hypo hesize ha : H3: Consume s who ha e social media accoun ha e highe chances o pu chase online. H4: Indi iduals who use a sma phone ha e highe chances o pu chase online. EM_2_2020.indd 160EM_2_2020.indd 160 1.6.2020 16:39:481.6.2020 16:39:48 161 2, XXIII, 2020 Finance 2. Resea ch Me hodology The uni o analysis in he cu en esea ch is an indi idual who uses o has ied online shopping. The da a used in his a icle we e collec ed by a ace- o- ace in e iew su ey, which was conduc ed in eigh main egions in Albania du ing sp ing 2018. Random ou e and las bi hday me hod we e applied in he p ocess o he esponden ’s selec ion. Only 690 esponden s ou o all success ul in e iews o he su ey we e conside ed o u he da a p ocessing. Online shopping was he dependen a iable employed in his esea ch measu ed as a single-i em: I use o ha e ied online shopping. I akes wo possible alues: 1 = yes, o 0 = no, making i a dicho omous a iable. The measu emen ype o his a iable limi s he s a is ical me hod ha should be pe o med o explo e he de e minan s o indi iduals’ online pu chase decision. Hal o he esponden s (52.2%) used o ha e ied online shopping. P io bank expe ience was measu ed as he numbe o yea s one was a clien o a bank (ca ego ical a iable: less han 1 yea ; 1–2 yea s; 3–5 yea s; 5–10 yea s, and o e 10 yea s). The cu en esea ch employed wo main se s o independen a iables: echnology use and indi iduals’ i nancial capabili y. Technology use was co e ed by wo a iables, which a e ela ed o he ac whe he an indi idual has o no a sma phone and social media accoun . Simila o he dependen a iable, hese a iables had wo possibili ies: 1 = yes, 0 = o he wise. Mo e han eigh y pe cen o esponden s we e epo ed o possess a sma phone (89%) and adminis a e a social media accoun (85%). Indi idual’s i nancial capabili y was measu ed using six een s a emen s ela ed o peoples’ knowledge, a i ude, and money managemen , which we e de i ned by Sen’s capabili y heo y (1993). Indi iduals we e asked o gi e hei pe cep ion o hese s a emen s (see Tab. 1). The s a emen s’ esponds we e o mula ed as i e-poin Like ype scale (1 = no a all, 5 = ully ag ee). Fac o analysis was used o educe his huge numbe o ac o s. The p incipal componen analysis helped summa ise indi idual’s pe cep ions abou six een s a emen s in o a smalle numbe o unde lying ac o s. We ha e kep ac o s wi h eigen alues highe han one. The o a ed componen ma ix is epo ed in Tab. 1. Six ac o s eme ge om he pe o med ac o analysis, which explained 58.5% o he a iance in he sample. The i s ac o combines s a emen s ela ed o c edi ca ds and online banking, which we called digi al banking usage, which co esponds wi h Mbama e al.’s (2018, p. 434) de i ni ion, ha includes “elec onic banking se ices ia digi al de ices (e.g. -banking, e-banking, m-banking, con ac less ca d (e.g. ap and go), ATM and poin -o - sale) […] o in e ace wi h banks”. Mo eo e , i is consis en wi h wha She aden (2013) claims ha i nancially capable indi iduals ha e access o bene i cial i nancial p oduc s and se ices, besides o he cha ac e is ics. Thus, i is expec ed ha indi iduals who ha e highe digi al banking usage o ha e highe chances o pu chase online (H1a). The second ac o combines h ee i ems abou he a i ude owa ds i nancial se ice isk, which is consis en wi h he Es elami and De Maeye ’s (2010) discussion ha bank accoun use s mani es a ce ain le el o isk dealing wi h i nancial se ices. Indi iduals who pe cei ed lowe i nancial se ices isk a e expec ed o ge in ol ed in online shopping ac i i y (H1b). The hi d ac o combines esponses abou he need o consul on aking i nancial decisions, which we named i nancial ad ice, as elabo a ed by p io s udies (Calcagno & Mon icone, 2015; K ame , 2016; Ma sden, Zick, & Maye , 2011). Indi iduals who consul o seek o ad ice on i nancial ma e s ha e highe chances o pu chase ia online channels (H1c). The ou h ac o is a combina ion o wo i ems which poin s a he isk o using he bank o pay bills. The e o e, his ac o is called a i ude owa ds paymen isk. People who pe cei e high paymen isk a e less p one o high- isk paymen me hods (Ho e & Ka imo , 2016). As a esul , a nega i e associa ion is expec ed be ween paymen isk and online shopping (H1d). The i h ac o combines wo s a emen s and we named i a i ude owa ds isk ole ance, which goes in line wi h Joo and G able’s (2004) scale. The highe he le el o his componen , he lowe he chances indi iduals in ol e in online pu chase ac i i y (H1e). Finally, he six h unde lying ac o is a combina ion o wo i ems, and i is called i nancial a i ude. A s udy used a simila bu la ge scale o es he in l uence o i nancial a i ude on compulsi e buying (Pham, Yap, & Dowling, 2012). Online shopping is expec ed EM_2_2020.indd 161EM_2_2020.indd 161 1.6.2020 16:39:481.6.2020 16:39:48 162 2020, XXIII, 2 Finance o be posi i ely a ec ed by indi iduals’ i nancial a i ude (H1 ). Gi en ha he demog aphic a iables o age, gende , educa ion, and income ha e been ound o ha e a signi i can e ec on consume s’ online pu chasing beha iou (Nase i & Ellio , 2011; Oe zen & Odeke ken-Sch öde , 2019; P asad & Sha ma, 2016; Punj, 2011). These demog aphic a iables we e included as con ol a iables in he analysis o a oid po en ial causal in l uence on online shopping beha iou . Conside ing he iden i i ed linkages in he li e a u e e iew and he esul o he ac o analysis, a concep ual amewo k can be amed as i is illus a ed in Fig. 1. I em and componen 1 2 3456 Digi al banking usage I like ying new ends in banking – e.g. in e ne banking, mobile paymen s, paying by c edi ca ds in he s o e e c. .814 I use online banking whene e I ha e he chance and oppo uni y o use .734 I p oac i ely seek o he in o ma ion ega ding di e en banking p oduc s & se ices .636 I canno imagine my li e wi hou banking .515 A i ude owa ds i nancial se ice isk I eel ha banks do no in o m he cus ome s well abou all he de ails and cos s o bank p oduc s/se ices .812 Banks wan o exploi you, hey hink only abou hei p o i .751 I ha e some imes p oblems o unde s and he de ails o banking p oduc s and bank language in gene al .642 Financial ad ice Spending oo much money makes me eel guil y .688 I consul my i nancial ma e s wi h a i nancial ad iso o banke .654 I consul my i nancial ma e s wi h amily, iend e c. .625 A i ude owa ds paymen isk I p e e o isi he b anch pe sonally when I wan o do some bank ansac ion .705 I don’ pay my u ili ies h ough banks as I us only s amped eceip s abou paymen om u ili ies hemsel es .676 A i ude owa ds isk ole ance I keep my money a home a he han in he bank .705 My ela ionship wi h he bank is “only ge ing my sala y” h ough ATMs .690 Financial a i ude I’m ying no o ha e any deb s .864 I always keep some sa ings o unp edic able u u e expenses .624 Sou ce: own No e: Ro a ion me hod: Va imax wi h Kaise no maliza ion. Ro a ion con e ged in 6 i e a ions; Kaise ’s measu e o sampling adequacy = .686; Va iance explained = 58.546%; Co ela ion ma ix’s de e minan = .136; Coe i cien loading displayed > |.34|. Tab. 1: P incipal componen analysis: he o a ed componen ma ix EM_2_2020.indd 162EM_2_2020.indd 162 1.6.2020 16:39:491.6.2020 16:39:49 163 2, XXIII, 2020 Finance As men ioned ea lie , he na u e o he dependen a iable limi s he use o he s a is ical me hod. Wi h his in mind, logis ic eg ession was pe o med o in es iga e he e ec o consume ’s i nancial capabili ies and echnology use on he decision o pu chase online (Hosme , Lemeshow, & S u di an , 2013; Tabachnick & Fidell, 2013). All he analyses shown he e a e pe o med using compu e s a is ical packing SPSS, e sion 23. 3. Resea ch Resul s To ha e a be e iew o he e ec o di e en ac o s on ou dependen a iable, ou logis ic eg essions we e pe o med. In all cases, he dependen a iable was online shopping (Yes/No). The i s one (Model 1, baseline model), includes only con ol a iables, which we e gende , age, income le el and occupa ion o he esponden . The second model includes wo ac o s ela ed o echnology use, which a e ha ing a sma phone and using social media. The esul s o hese wo logis ic eg essions a e shown in Tab. 2. Model 3 and 4 in end o in es iga e he e ec o consume ’s i nancial capabili ies and p io bank expe ience on online shopping. Thei esul s a e summa ized in Tab. 3. The baseline model demons a ed ha besides gende , all o he con olled a iables ha e a s a is ically signi i can in l uence on online pu chase decision (see Tab. 2). Olde indi iduals had ewe chances o ge in ol ed in online shopping, as he odds a io was epo ed less han one, χ2 = 44.23, OR = 0.947, p < 0.01. As he indi idual’s income le el inc eases, he highe a e he odds a ios he/she pu chased online. When compa ed o he highes income le el, he income le els we e s a is ically signi i can , indica ing ha income p edic ed one’s online pu chase decision, o example, he hi d le el, χ2 = 7.195, OR = 0.181, p < 0.01. Re e ing o an indi idual’s occupa ion, esul s showed ha manage s o sel -employed had highe chances o pu chase online, χ2 = 6.769, OR = 4.367, p < 0.01. Simila esul s a e ound e en o hose wo king as specialis s, χ2 = 5.299, OR = 3.525, p < 0.05. The e o e, occupa ion s a is ically p edic ed online shopping, χ2 = 19.19, p < 0.01. Model 2 explo es he ela ionship o online shopping wi h echnology use by including in he analysis o he wo new a iables: ha ing a sma phone and using social media (see Tab. 2). This logis ic eg ession e ealed ha bo h a iables p edic ed an indi idual’s online pu chase decision. Possessing a sma phone (χ2 = 5.604, OR = 4.773, p < 0.05) and using social media (χ2 = 17.61, OR = 9.564, p < 0.01) inc eased he chances ha an indi idual Fig. 1: Concep ual amewo k Sou ce: own EM_2_2020.indd 163EM_2_2020.indd 163 1.6.2020 16:39:491.6.2020 16:39:49 164 2020, XXIII, 2 Finance pu chase h ough online channel. As a esul , H3 and H4 we e suppo ed. Conce ning con ol a iables, Model 2 showed simila esul s wi h he baseline model. Mo eo e , Model 2 included educa ion le el as an ex a con ol a iable, which was ound o be signi i can , χ2 = 6.737, p < 0.10. Thus, he highe he educa ion le el, he highe we e he odds an indi idual o pu chase online. As men ioned ea lie , Model 3 and 4 a e pe o med o in es iga e he e ec o indi iduals’ i nancial capabili y and expe ience as a bank clien on online shopping. Thei esul s a e shown in Tab. 3. Model 3 is an Model 1 (baseline) Model 2 ( echnology use) B SE OR Wald B SE OR Wald Cons an 2.387 0.885 10.88 7.275 *** -2.097 1.223 0.123 2.940 * Gende -0.030 0.177 0.970 .0280 0.066 0.190 1.068 0.123 Age -0.054 0.008 0.947 44.23 *** -0.021 0.010 0.979 4.653 ** Income 9.870 7.364 Less han 15,000 ALL -2.209 0.809 0.110 7.458 *** -1.937 0.866 0.144 4.998 ** 15,000–23,999 ALL -1.950 0.666 0.142 8.576 *** -1.565 0.724 0.209 4.666 ** 24,000–39,999 ALL -1.709 0.637 0.181 7.195 *** -1.587 0.687 0.205 5.328 ** 40,000–59,999 ALL -1.575 0.633 0.207 6.189 ** -1.655 0.677 0.191 5.971 ** 60,000–78,999 ALL -1.588 0.691 0.204 5.286 ** -1.840 0.733 0.159 6.296 ** 79,000–100,000 ALL -1.692 0.811 0.184 4.355 ** -1.874 0.840 0.154 4.979 ** Occupa ion 19.19 *** 9.880 ** Manage o sel -employed 1.474 0.567 4.367 6.769 *** 1.036 0.620 2.818 2.786 * Specialis 1.260 0.547 3.525 5.299 ** 1.012 0.608 2.751 2.775 * Unquali i ed wo ke 0.236 0.590 1.266 0.161 0.166 0.657 1.181 0.064 Educa ion 6.737 * Elemen a y -1.672 0.805 0.188 4.314 ** Voca ional -0.033 0.462 0.968 0.005 Seconda y -0.408 0.220 0.665 3.421 * Technology use Sma phone 1.563 0.660 4.773 5.604 ** Social ne wo k 2.258 0.538 9.564 17.61 *** Model es /s a is ic χ2d Sig. χ2d Sig. 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