Consumption values and mobile banking services : understanding the urban–rural dichotomy in a developing economy

Purpose: This study develops a theoretical model of consumption values regarding the technology adoption of mobile banking (m-banking) services, with the financial service sector as the empirical context. This study aims to evaluate whether consumption values influence trust and intention. Furthermore, the authors explore how the consumer type (i.e. urban vs rural) differs in consumption values regarding adopting m-banking services. Design/methodology/approach: The data for this study were gathered from 246 responses collected from individuals living in a country with a developing market, using a survey instrument. The six study hypotheses were tested using partial least squares structural equation modeling. Findings: The authors found support for effects from functional, epistemic and emotional value on intention. Functional and emotional value significantly influenced trust, while social and epistemic value did not. Social value was a significant moderator between functional value and intention. Consumers who were relatively unconcerned with social value were more motivated by functional value, while consumers who placed great emphasis on social value were motivated by epistemic value. Multigroup analysis showed that the effect from functional value on trust was stronger for urban than rural customers, while the effect from emotional value on trust was stronger for rural than urban customers. Practical implications: Overall, functional value is the strongest predictor of trust and intention; therefore, bank managers are encouraged to promote m-banking services' functional value to increase trust and attract more users by promoting their companies' m-banking application. M-banking customers can also be classified based on the benefits in which they are most interested. Originality/value: The study is one of the first attempts to demonstrate empirically how consumption values' dimensions drive m-banking use among different types of customers in a developing market context with a high m-banking penetration rate.