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Valuation of the Quality Attributes of Online Banking Services by Small and Medium Enterprises Engaged in International Trade

Author

Listed:
  • Parvaneh Shahnoori

    (Department of Economics, Eastern Mediterranean University, Mersin 10, Turkey and Payame Noor University, Bandar Abbas, Iran)

  • Glenn P. Jenkins

    (Department of Economics, Queen's University, Kingston, Canada and Eastern Mediterranean University, North Cyprus)

Abstract

This study investigates the important attributes of online banking system for Small and Medium Enterprises (SMEs) and their willingness to pay for each attribute. Zero travel and waiting time, high security, and 24/7 accessibility are the key attributes for this service. The results show that SMEs engaged in international trade value online banking services significantly more than the others. Domestically focused firms value high quality service at about $163 a month while import-focused businesses value such a service at approximately US$646 per month. Export-intensive SMEs value high quality online services 14% further, for an average of $736 per month. Revised paper published as; Valuation of the Quality Attributes of Online Banking Services by Small and Medium Enterprises Engaged in International Trade in the South African Journal of Economics Vol 87; 1 (2019)

Suggested Citation

  • Parvaneh Shahnoori & Glenn P. Jenkins, 2018. "Valuation of the Quality Attributes of Online Banking Services by Small and Medium Enterprises Engaged in International Trade," Development Discussion Papers 2018-11, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:4514
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    More about this item

    Keywords

    Online banking; SME; valuation; service attributes; willingness to pay; international trade; mixed logit model.;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F10 - International Economics - - Trade - - - General

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