Journal of Business Administration and Education

ISSN 2201-2958
Volume 6, Number 1, 2014, 1-14

Impact of Marketing Communications on Consumer Attitudes

towards Internet Banking Adoption by University Students in
Zimbabwe - Case of Harare Institute of Technology (HIT)
More Chinakidzwa
Harare Institute of Technology

Abstract. This study focussed on impact of marketing communications on consumer attitudes

towards internet banking adoption. Internet banking is a fairly new concept in developing countries
such as Zimbabwe. Its usage is still at infancy levels although it brings a multitude of benefits
among them is privacy and convenience. The traditional branch based retail banking system is still a
predominant method of conducting banking transactions. Online surveys and interviews were used
to collect data for this study. A sample of 120 students from HIT and 10 respondents from 5
commercial banks was used. Use of internet banking among students is very low. Most students use
mobile money and cash. Marketing communications have been found to have a positive influence on
internet banking. However direct marketing and personal selling are very crucial in engaging
potential customers. Banks need to capitalise on these tools as they are interactive and more
influential in consumer adoption of internet banking.
Keywords: internet banking, marketing communications, attitudes, Harare Institute of Technology,
Zimbabwe.

Copyright 2014 the authors.

Journal of Business Administration and Education

INTRODUCTION
Internet banking is fairly new in the third world countries. Although it brings a
multitude of benefits chief among them is convenience, most developing countries
are yet to adopt it. The traditional branch based retail banking system is still a
predominant method of conducting banking transactions in Zimbabwe. Most clients
rely on visiting the banking hall to do their transactions.

Internet banking is

limited only to a few clients in urban areas. However the range of transactions
conducted by internet banking users is too narrow as well. Most of the clients are
limited to bill payments, buying airtime and checking and account balances.
Consumers either lack knowledge, interest or access to it. Although a number of
financial institutions in Zimbabwe have introduced internet banking, adoption
remained low despite various marketing communications. The use of mobile and
internet banking is just at an infant stage. Rural communities remain unbanked.
However mobile banking especially Ecocash had made significant inroads in the
rural areas. The range of products on internet banking is still limited. This
prompted for research on the impact of marketing communications in the adoption
of internet banking. Marketing communications are means by which firms attempt
to inform, persuade and remind customers- directly or indirectly about the brands
that they market (Kotler et al 2009). This plays a pivotal role when banks design
their internet banking platforms and formulate marketing communication
strategies for internet banking. Understanding consumers influences on internet
banking adoption is of paramount importance to the banking industry as it helps
formulate effective marketing communication strategies. A service should correlate
to customers expectations to satisfy their needs and requirements (Enguist, et al.
2007). Marketing communications influence perceived usefulness, which contributes
to the adoption of products and services. A number of constructs have been put
forward by various scholars about the adoption of technology, mainly internet
banking. Davis (1989) proposed the Technology Acceptance Model (TAM). According
to the TAM, intention to use a particular system determines behaviour. The
intention to use a particular system is in turn influenced by perceived usefulness

Journal of Business Administration and Education

and perceived ease of use of the system. These constructs have been widely tested in
Europe in a number of researches (Adams et al., 1992; Chin and Todd, 1995;Doll et
al., 1998; Segars and Grover, 1993 cited in Erickson et al., 2004 Kesharwani and
Bisht 2012). An understanding of the factors influencing the adoption of internet
banking services is essential for marketing practitioners so as to capitalize upon the
underlying benefits of internet banking and hence, offer banking customers an
online experience coupled with a greater level of personalization and customization
(Juwaheer, et al, 2012). According to Polasik and Wisniewski (2009) internet
banking adoption can be influenced by use of other banking products, market
exposure, internet experience, type of internet connection used, demographic
characteristics and perceived security. Marketing Communications is generally
believed to have an impact on consumer attitudes in the adoption of internet
banking. However the extent to which it impacts adoption especially in a developing
country is not known. This paper therefore seeks to investigate the use of marketing
communications to influence internet banking adoption by university students in
Zimbabwe.
LITERATURE REVIEW
This study intends to assess impact of marketing communications on attitudes
towards internet banking. The literature will thus focus on internet banking,
marketing communications and attitude formation as a result of marketing
communications.
Internet banking
Internet banking refers to systems that enable bank customers to get access to their
accounts and general information on bank products and services through the use of
banks website, without the intervention or inconvenience of sending letters, faxes,
original signatures and telephone confirmations (Thulani et al 2009). It is a service
that give secure and unlimited access to your account, enabling internet
transactions from anywhere in the world. A marked proliferation of electronic

Journal of Business Administration and Education

banking occurred in the 90s due to the popularisation of the internet (Polasik and
Wisniewski 2009). The raison detre of internet banking is the multitude of benets
it offers to users and providers alike (Polasik and Wisniewski 2009). The most
important improvement, however, arises from the reduction in overhead expenses.
Specically, the costs related to the maintenance of physical branches, marketing
and labour can be cut appreciably (Hernando and Nieto, 2007). The internet can
currently be considered as the cheapest distribution channel for standardized bank
operations, such as account services or transfer of funds (Polasik and Wisniewski
2009). From the viewpoint of consumers, the decision to use internet banking is
frequently motivated by convenience and efficiency (Bruno, 2003). Online account
holders do not have to make a trip to the local branch, queue, or be constrained by
the banks opening hours (Lassar et al., 2005). Lack of computer or internet access
appears to be the most prominent factors impeding the diffusion of this innovation.
Compared with the western countries, Zimbabwe is lagging behind in terms of the
development of Information and Telecommunication Technologies (ICT) especially
the availability of broadband.
Marketing communications
Marketing communications refers to a set of promotional messages used by
organisations to make their products known, enhance their brand, and influence
adoption etc. Promotion is used by organisations to communicate with customers
with respect to their product offerings (Rowley 1998). Marketing communications
can

be

delivered

television, direct

through

mail,

one

or

and personal

more channels such

selling

as

print,

(businessdictionary.com).

radio,
The

marketing communication or promotional mix includes advertising, public relations,

publicity, personal selling, sponsorship and direct marketing.
Advertising refers to any paid form of non-personal presentation and promotion of
ideas, goods or services by any identified sponsor. It plays an important role in
developing a strong brand name of the corporation or products (Eze and Lee 2012).
In general, advertising is used to inform, persuade, and remind consumers.

Journal of Business Administration and Education

Advertising is believed to enhance buyers responses to products or services offered

by a firm (Eze and Lee 2012)
internet banking.

thus can influence consumers attitudes towards

Kotler (1988) noted that advertising helps to increase the

potential buyers reactions towards an organization and its offering, accentuating

that it seeks to do this by supplying information, channelling desire, and providing
reasons for preferring a particular organizations offer. Advertising is used to create
an essential awareness of the product or service in the mentality of the potential
customer and to build up knowledge about it (Morden 1991). For instance, according
to Yan (2004) in China, 70 per cent of Chinese recognized Coca-Cola brand due to
the massive advertisement they encountered. The purpose of advertising is to create
awareness of the advertised product and provide information that will assist the
consumer to make informed-purchase decision. Therefore the importance of
advertising as a promotional strategy depends on its capability to influence
consumers to not only purchase but to continue to repurchase and eventually
develop-brand loyalty (Eze and Lee 2012).
Direct marketing is the use of mail, telephone or other non-personal contact tools to
communicate with or solicit a response from specic customers and prospects
(Rowley 1998). Mail shots and leaflets inserted in professional magazines are used
to promote information products. Sales promotion is another promotional tool that
can be used to influence consumers. These are short-term incentives to encourage
trial or purchase of a product or service, such as discounts for access to a database
over a limited time period. Public relations and publicity are programmes designed
to promote and/or protect a companys image, or those of its products, including
product literature, exhibition and articles about organisations products in
professional or in-house newsletters.

Personal selling refers to face-to-face

interactions with one or more prospective purchasers, for the purpose of making
sales. This is common within business-to-business marketing. Sponsorship is the
use of financial or external support of an event or person by an unrelated
organisation or donor, such as is common in respect of the arts, sports (e-g

Journal of Business Administration and Education

sponsorship of the premier soccer league (PSL) by Delta beverages in Zimbabwe)

and charities.
Attitude
Attitudes refer to a persons feelings, convictions, or liking for an object, idea or
individual (Stevens et al. 2000). It is a learned predisposition to behave in a
consistently favourable or unfavourable manner with respect to a given object
(Schiffman & Kanuk 2007). This means it can be learned. It is the knowledge and
positive or negative feelings about an object or activity (Pride and Ferrell, 1991)
and can also be seen as an overall evaluation that expresses how much we like or
dislike an object, issue, person or action (Petty, Unnava, and Strathman, 1991,
Hoyer Macinnis, 2001; Solomon, 2004 cited by Eze and Lee 2012). For the purposes
of this study, the researcher will adopt Stevens et al. (2000) definition that attitudes
refer to a persons feelings, convictions, or liking for an object, idea or individual.
Therefore a consumers overall evaluation of a product such as internet banking
accounts for the most of his or her attitude.
Relationship between marketing communications and attitude
Attitudes are formed by three main components (Hawkins, Best and Coney, 2004):
Cognitive Component, related to the consumers beliefs about a product, which can
be generally evaluated; Affective Component, related to the feelings or emotional
reactions to an object and Behaviour Component, the tendency to respond in a
certain manner toward an object or activity (Carvalho nd).

According to Rowley

(1998) various communication tools evolve through three different stages: (1)
Cognitive stage during which potential customers becomes aware of products. (2)
Affective stage during which customers form opinions and attitudes concerning
products. (3) Behaviour stage during which customers take action (such as making
a purchase) on the basis of their experiences in the rst two stages. An innovative
product or service will not enjoy great success unless consumers are aware of its
existence and the potential benets it offers (Polasik and Wisniewski 2009). Sathye

Journal of Business Administration and Education

(1999) identied lack of awareness as one of the main factors hindering the
migration of consumers to internet banking in Australia. Therefore marketing
communications can alleviate this problem by eliminating any existing information
barriers and encouraging consumers to their traditional means of banking.
Polatoglu and Ekin (2001) argued that marketing effort in Turkey had a positive
inuence on e-banking acceptance.
METHODOLOGY AND CONCEPTUAL DEVELOPMENT
According to Polasik and Wisniewski (2009) no innovative product can enjoy high
adoption rates unless consumers are aware of its existence and benefits. A number
of studies have tested and extend the Technology Acceptance Model (TAM) by
Davies (1989) as a basis in predicting adoption of a new technology. Previous
studies have focussed on TAM, its extension to include security, risk, trust, relative
advantage and many other variables. TAM posits that Perceived Usefulness (PU)
and Perceived Ease of Use (PEOU) are the two main determinants of attitudes (AT)
towards using a new technology. PU is the degree to which the user believes that
using the technology would improve his or her performance on a task, while PEOU
is defined refers to the degree to which a person believes that using a particular
system would be free of effort (Davis, 1989; Davis et al., 1989). Attitude towards
behaviour is defined as an individuals positive or negative feelings (evaluative
effect) about performing the target behaviour (Fishbein and Ajzen, 1975 in Nasri
and Charffedine 2012). This study takes a different dimension by looking into the
impact of marketing communications in influencing consumer attitude towards
internet banking. The following conceptual model was thus developed:

Journal of Business Administration and Education

Conceptual Model

Marketing communications
[Advertising, public relations,
publicity, personal selling,
direct marketing,
sponsorship]

Attitude

Adoption of
internet
banking

The impact of marketing communications or promotional tools such as advertising,

public relations, direct marketing on consumer attitudes over internet banking
adoption by university students are investigated. Fishbein & Manfredo (1992)
states that if a person's intent is strong, then it is expected that the behaviour will
be actually performed. Therefore, the primary concern is to identify the underlying
factors of the formation and change of behavioural intent. Authors such as Polasik
and Wisniewski (2009), Polatoglu and Ekin (2001), and Saythe (1999) posits that
various forms of promotional tools that brings awareness influence e-banking
acceptance. It is upon these findings that the main hypothesis of this study is
formulated.
The main hypothesis is therefore that: Marketing communications positively
influence consumer attitudes towards internet banking.
Methodology
This study used online surveys and interviews. Surveys were done on students. The
students were given a link to the questionnaire. According to Karjaluoto et al.,
(2002) cited by Akturan and Tezcan (2012), a typical user of online banking is a
highly educated, relatively young and wealthy person with a good knowledge of
computers, especially the internet. It is on this premise that the study focussed on
university students as they are educated, computer literate and have more access to
internet which according to

Polasik and Wisniewski (2009) influence internet

banking adoption. Students at Harare Institute of Technology (HIT) were chosen for

Journal of Business Administration and Education

the researchers convenience and the assumption that university students share
similar characteristics. Use of students is not new. A study on mobile banking
adoption by the youth market, perceptions and intentions (Akturan and Tezcan
2012) also gathered data through face-to-face interviews with 435 university
students. However in this study electronic questionnaires were distributed. One
hundred and twenty (120) students responded to the online questionnaire. Results
from the survey were used to select banks for interviews. Top five (5) banks in
internet banking usage were used as target sample. These top five were selected
based on frequencies of banks used by respondents for internet banking. This was
purposefully

done

for

two

main

reasons;

(1)

to

assess

the

marketing

communications tools the top banks were using (2) to assess the impact of these
communication tools in their success as the leaders in internet banking. This could
be viewed as a biased approach, but it helped the researchers to focus on successful
banks

in

internet

banking

and

assess

the

contribution

of

marketing

communications. Interviews were conveniently picked from internet banking

divisions of these top five banks.
RESULTS
Online Survey: The questionnaire was administered online. Ninety-four (94)
students were invited through email to complete the questionnaire. The students
were encouraged to forward the link to their fellow students. Actual respondents
therefore were 120. Most of the respondents were male, 77% and females with 23%
as shown in Table 1 below:
Table 1.
Frequency

Percent

Valid Percent

Cumulative Percent

male

92

76.7

76.7

76.7

female

28

23.3

23.3

100.0

120

100.0

100.0

Total

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Journal of Business Administration and Education

50% (60) of respondents spend between 6 to 12.9hours on the internet followed by

33.3% spending 1 to 5.9hours. 83.3% have bank accounts whilst 16.7% do not have
bank accounts. Only 23.3% receive their money through the bank, the majority
(66.7%) use mobile money whilst 50% use cash. 68.3% were positively influenced by
banks marketing communications whilst 31.7% were not. 23% of respondents got
aware of internet banking through emails and phone calls from the bank, 19.5%
through recommendations from family and friends, 15.3% through bank
representatives and advertisements and brochures constituting 8.7 each. Barclays,
Kingdom, TN, CBZ and FBC were the banks with internet banking facilities mostly
used by customers
Interviews: Five (5) interviews were done with officials from banks that have more
customers using their internet banking. These banks were Barclays, Kingdom, TN,
CBZ and FBC. Marketing communications used all the banks use direct
marketing, public relations/publicity, personal selling, advertising and sponsorship.
However one-on-one product presentations and telemarketing were the most used
strategies. Asked why these particular strategies, interviewees claimed that these
strategies provided more interaction thus enabling customers to ask more questions
and understand how internet banking works. The interviewees also converged on
the fact that one on one interaction with potential customers resulted in high
conversion rates than other methods. Interviewees also stressed the importance of
marketing communications in creating awareness which they believed was vital for
internet banking adoption.
DISCUSSIONS
Use of internet banking was very low although a large number of the respondents
have more access to the internet, and market exposure of internet banking.
According to Polasik and Wisniewski (2009) internet experience and market
exposure were some of the factors influencing internet banking adoption. However
these researchers also considered other factors such as use of other banking
products, internet connection speed, perceived usefulness etc which were not all

Journal of Business Administration and Education

11

tested in this study, use of other banking products seem to have more impact on
influencing customers. Only 23.3% of the respondents received their money through
the bank. The majority used mobile money and cash. However 83.3% of the
respondents have bank accounts. In mobile banking, one does not need to have a
bank account. So why does the majority of consumers use mobile banking when
they have a bank account.

This does not support the findings by Polasik and

Wisniewski (2009) that use of other banking products was a precondition to internet
banking. These respondents could not be using internet banking because of other
reasons such as low income. For instance 86.7% of the respondents earn less than
$500 per month. This could explain the high usage of mobile money and cash as
they are convenient ways of receiving small amounts of money. The various
communications tools used by banks were positively influencing consumer attitudes
(68.3%) towards internet banking. This supports literature from authors such as
Polasik and Wisniewski (2009), Polatoglu and Ekin (2001), and Saythe (1999) who
posited promotional tools that bring awareness can influence e-banking acceptance.
Sathye (1999) identied lack of awareness as one of the main factors hindering the
migration of consumers to internet banking in Australia. This was supported by
both survey and interview results. Interviewees concurred that marketing
communications tools aids in creating awareness that was vital in influencing
internet

banking

adoption.

However

in

this

study,

not

all

marketing

communications tools influenced consumers equally. Survey results showed

emails/calls from banks and recommendations from family and friends and bank
representatives to have more impact. Interview results also supported this finding.
Most banks were using direct marketing and personal selling. The interviewees
believed that these tools have more impact than others such as advertising. This
was due to the one on one interaction that allows the customer to get more
information.

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Journal of Business Administration and Education

CONCLUSIONS
Marketing communications have a positive impact on internet banking adoption.
They create awareness which is vital in influencing consumers towards internet
banking. However direct marketing and personal selling got more influence. These
tools enables the customer to probe thus gain more understanding. Most banks in
Zimbabwe are thus using these tools as they are more effective.

The banking

industry must identify marketing communications that has the most impact to
internet banking adoption since not all communications influence consumers. The
researchers

recommend

the

use

of

more

interactive

tools

in

marketing

communications. However further research need to focus on the impact of

individual marketing communications tools.

Journal of Business Administration and Education

13

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