Emerging Market Baby Boomers' Resistance to Using Digital-Only Branded Banking Services: A Status Quo Bias Paradigm
DOI:
https://doi.org/10.51137/wrp.ijarbm.761Keywords:
Baby Boomers, Digital-Only Branded Banks, Emerging Market, Inertia, Resistance, Status Quo Bias (SQB) ModelAbstract
The financial services industry, especially banks, makes a significant contribution to an economy's long-term success. For banks, particularly digital-only branded banks to achieve long-term sustainability in South Africa, the prevention of resistance to using their services by Baby Boomers requires further research. This underscores this study’s investigation of emerging market Baby Boomers' reluctance to use digital-only branded banking services. Drawing primarily from the Status Quo Bias (SQB) model, this study examined the variables of interest that contribute to Baby Boomers’ reluctance to use digital-only branded banking services. A quantitative cross-sectional research approach was adopted, and data were conveniently collected from 54 Baby Boomers. Data was analysed using the Statistical Package for Social Sciences (SPSS) version 28, which revealed that perceived value and image were the primary resistance factors among the five variables analysed: perceived value. risk. usage. image. and tradition. Actively addressing Baby Boomers' biases toward traditional banking and enhancing the perceived value of digital-only branded banks can encourage a gradual shift toward the adoption of their services among Baby Boomers. This study contributes to the digital banking discourse by identifying psychological and functional resistance factors, supporting a strategic brand management approach that prioritises trust building, delivers tailored engagement and fosters customer loyalty to effectively navigate and diminish Baby Boomers' resistance in an emerging market context.
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