Cell Phone Banking Adoption in South Africa – Research methodology

A cross-section survey method was used. Data were collected using Survey Monkey, an online survey system was used to administer the instrument. Using Survey Monkey provided ease of access to respondents from different locations.
Sample
Since the study was concerned with mobile banking, all individuals with a bank account or a cell phone potentially constituted the sampling frame. Given the challenges of drawing a random or other probabilistic sample, the snowballing technique was utilised. Such a technique minimised sampling bias and at the same time maximised the sample’s representativeness. To target as many consumers as possible from a wide range of backgrounds and taste, the online questionnaire system, Survey Monkey, was used. Researchers sent emails with the Survey Monkey link to 15 banking customers (10 in Gauteng, 3 in Limpopo, and 2 in Mpumalanga) informing them of the study and the questionnaire. In turn these participants notified potential respondents on their email lists, and they consecutively forwarded the link to other banking customers. This process was repeated numerous times between August and October 2010, in which 152 respondents completed the questionnaire. Of these 124 questionnaires were fully completed and usable for analysis. The remaining instruments were either spoilt or had too many missing values. Table 2 provides further details pertaining to the participants’ demographic characteristics.
Questionnaire
The instrument used in Brown et al, was adapted for this study. Table 1 details the adapted questionnaire. The questionnaire was pre-tested on 10 undergraduate and postgraduate students to ensure that the questions would be understood by the target audience. The final questionnaire included a cover letter, instructions for completion, and four sections of structured questions. A likert scale (1= Strongly Disagree and 5 = Strongly Agree) was used.
Data Analysis
Consistent with research objectives and methodology, a structured questionnaire was used to collect quantitative data. Therefore, statistical analysis was appropriate. PASW (SPSS) v.18 was used to perform the following analyses:
o Descriptive measurements to describe the data and sample;
o Reliability analysis using Cronbach’s alpha coefficient to measure internal consistency of the various sub-scales in the questionnaire; o Pearson’s chi-square test to measure relationships between various variables; o Factor Analysis to reduce items into latent dimensions existing in the scales o Multiple regression and Logistic regression to test hypotheses and answer research questions.

Table 1. Questionnaire Adaptation

Original Brown et al Questionnaire Adaptation Rationale
Section A:Included questions about WAP and WIG features on respondents’ cell phones WAP-enabled and WIG-enabled questions were removed. o Current technology of CB no longer requires WIG-enabled and WAP-enabled cell phones to support CB.o The USSD technology similar to that used to recharge airtime is now in use
Section B:Included several questions about banking products and services o Combined some banking products- e.g. current and cheque account were collapsed into one category o Included a list of current banking institutions o To be consistent with currentbanking trends and terminology, as advised by banking experts o To provide a realistic list of banks
Section C: Included more services that CB is now handling e.g. paying traffic fines and municipality bills o To present a realistic account of CB.
Section D:Income quoted on an annual basis o Modified monthly income to a monthly basis o Included a question on respondents’ religion o To be consistent with many South African studies o The account for the importance of religion, as it is increasingly being considered an important predictor in consumer behaviour

Table 2. Demographic Profile

Demographic Characteristics Per cent (%)
Gender Male 55
Female 45
Age Up to 20 years 1
21 – 24 years 17
25 – 29 years 19
30 – 34 years 16
35+ years 47
Education High School 14
University Diploma/ Degree 47
Postgraduate 39
Monthly Income < R5, 000 13
R 5, 001 – R10, 000 25
R10, 001 – R15, 000 6
R15, 001 – R20, 000 11
R20, 000+ 45
Employment Status Employed 79
Self-employed 3
Unemployed 4
Student 14
Province Gauteng 49
Mpumalanga 29
Limpopo 10
North West 3
Northern Cape 4
Eastern Cape 5
Marital Status Married 39
Single 51
Separated/ Divorced 10