Consumer Reaction to a Financial Service Innovation: Electronic Funds Transfer-Point of Sale Devices.

This study offers two perspectives for the adoption of Electronic Funds Transfer devices used at the point-of-sale. First, the data suggest that such a network constitutes an attractive exchange alternative to an economically viable segment of the general public. Second, linking diffusion of innovation principles to a new financial service presents the potential for a more complete underst and ing of new service development concepts and strategies. As an exchange option EFT-POS devices would likely be utilized in a variety of non-traditional settings for instantaneous funds transfer--department stores, grocery stores, gas stations, and airports. These would include both payment and depository transactions. The results show that a principal benefit to probable users would be an expansion of their access to their financial assets through the deployment of such POS terminals. The application of Diffusion of Innovation concepts can be exp and ed to include the burgeoning service sector. This exploratory research effort initiates this process by examining demographic traits, perceived attributes, and certain related behavioral dimensions. For this financial service innovation, demographic variables alone do not differentiate among the potential users and non-users. Certain previous behavior, especially the use of an Automated Teller Machine, does indicate likely adopters of POS systems. The individual's perception of the service's attributes does relate to probability of use. From a list of eleven recognized attributes, "Enjoyment of Using," "Easing of Personal Routine," and "Time Savings" all vary directly with willingness to use the innovation. "Financial Risk" and "Cost of Using" vary indirectly. Other attributes were not as important. The study concludes that knowing the relative value of each attribute allows EFT-POS producers to modify both characteristics and communication concerning this service innovation.PhDMarketingUniversity of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/158847/1/8215016.pd