IDEAS home Printed from https://ideas.repec.org/p/qed/dpaper/4514.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: http://cri-world.com/publications/qed_dp_4514.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jan Wengel & Edgard Rodriguez, 2006. "SME Export Performance in Indonesia After the Crisis," Small Business Economics, Springer, vol. 26(1), pages 25-37, February.
    2. Kelvin Balcombe & Iain Fraser & Eugene McSorley, 2015. "Visual Attention and Attribute Attendance in Multi‐Attribute Choice Experiments," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 30(3), pages 447-467, April.
    3. Francesca Bartoli & Giovanni Ferri & Pierluigi Murro & Zeno Rotondi, 2014. "Bank support and export: evidence from small Italian firms," Small Business Economics, Springer, vol. 42(2), pages 245-264, February.
    4. Erik Meijer & Jan Rouwendal, 2006. "Measuring welfare effects in models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(2), pages 227-244, March.
    5. Edward R. Morey & Robert D. Rowe & Michael Watson, 1993. "A Repeated Nested-Logit Model of Atlantic Salmon Fishing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 578-592.
    6. Eva Hagsten & Patricia Kotnik, 2017. "ICT as facilitator of internationalisation in small- and medium-sized firms," Small Business Economics, Springer, vol. 48(2), pages 431-446, February.
    7. Timothy J. Gronberg & W. Robert Reed, 1994. "Estimating Workers' Marginal Willingness to Pay for Job Attributes Using Duration Data," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 911-931.
    8. Haab, Timothy C. & Hicks, Robert L., 1997. "Accounting for Choice Set Endogeneity in Random Utility Models of Recreation Demand," Journal of Environmental Economics and Management, Elsevier, vol. 34(2), pages 127-147, October.
    9. Hensher,David A. & Rose,John M. & Greene,William H., 2015. "Applied Choice Analysis," Cambridge Books, Cambridge University Press, number 9781107465923, September.
    10. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, September.
    11. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    12. Wuyang Hu, 2004. "Trading off health, environmental and genetic modification attributes in food," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(3), pages 389-408, September.
    13. David A. Hensher, 2006. "How do respondents process stated choice experiments? Attribute consideration under varying information load," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 861-878.
    14. repec:bla:scotjp:v:46:y:1999:i:2:p:111-34 is not listed on IDEAS
    15. Anthony Scott & Sandra Vick, 1999. "Patients, Doctors and Contracts: An Application of Principal‐Agent Theory to the Doctor‐Patient Relationship," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(2), pages 111-134, May.
    16. W. Shaw & Michael Ozog, 1999. "Modeling Overnight Recreation Trip Choice: Application of a Repeated Nested Multinomial Logit Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(4), pages 397-414, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Parveneh Shahnoori & Glenn P. Jenkins, 2015. "Value of E-Banking to Small and Medium-Sized Enterprises," Development Discussion Papers 2015-09, JDI Executive Programs.
    2. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    3. Yegoryan, Narine & Guhl, Daniel & Klapper, Daniel, 2018. "Inferring Attribute Non-Attendance Using Eye Tracking in Choice-Based Conjoint Analysis," Rationality and Competition Discussion Paper Series 111, CRC TRR 190 Rationality and Competition.
    4. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    5. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761, Elsevier.
    6. Mohammed H. Alemu & Søren Bøye Olsen & Suzanne E. Vedel & John Kinyuru & Kennedy O. Pambo, 2016. "Integrating sensory evaluations in incentivized discrete choice experiments to assess consumer demand for cricket flour buns in Kenya," IFRO Working Paper 2016/02, University of Copenhagen, Department of Food and Resource Economics.
    7. Minhaj Mahmud & Italo A Gutierrez & Krishna B Kumar & Shanthi Nataraj, 2021. "What Aspects of Formality Do Workers Value? Evidence from a Choice Experiment in Bangladesh," The World Bank Economic Review, World Bank, vol. 35(2), pages 303-327.
    8. Fraser, Iain & Balcombe, Kelvin & Williams, Louis & McSorley, Eugene, 2021. "Preference stability in discrete choice experiments. Some evidence using eye-tracking," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
    9. Carson, Richard T. & Czajkowski, Mikołaj, 2019. "A new baseline model for estimating willingness to pay from discrete choice models," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 57-61.
    10. Hensher, David A. & Ho, Chinh, 2015. "The role of perceived acceptability of alternatives in identifying and assessing choice set processing strategies in stated choice settings: The case of road pricing reform," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 225-237.
    11. Ding, Ye & Nayga Jr, Rodolfo M. & Zeng, Yinchu & Yang, Wei & Arielle Snell, Heather, 2022. "Consumers’ valuation of a live video feed in restaurant kitchens for online food delivery service," Food Policy, Elsevier, vol. 112(C).
    12. Rombach, Meike & Widmar, Nicole Olynk & Byrd, Elizabeth & Bitsch, Vera, 2018. "Do all roses smell equally sweet? Willingness to pay for flower attributes in specialized retail settings by German consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 91-99.
    13. Tor Eriksson & Nicolai Kristensen, 2014. "Wages or Fringes? Some Evidence on Trade-Offs and Sorting," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 899-928.
    14. Haile, Kaleab K. & Tirivayi, Nyasha & Tesfaye, Wondimagegn, 2019. "Farmers’ willingness to accept payments for ecosystem services on agricultural land: The case of climate-smart agroforestry in Ethiopia," Ecosystem Services, Elsevier, vol. 39(C).
    15. Danso, G. K. & Otoo, Miriam & Duy Linh, N. & Madurangi, Ganesha, "undated". "Households’ willingness-to-pay for fish product attributes and implications for market feasibility of wastewater-based aquaculture businesses in Hanoi, Vietnam," Papers published in Journals (Open Access) H048216, International Water Management Institute.
    16. Ching‐Hua Yeh & Stefan Hirsch, 2023. "A meta‐regression analysis on the willingness‐to‐pay for country‐of‐origin labelling," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 719-743, September.
    17. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
    18. José L. Oviedo & Alejandro Caparrós, 2014. "Comparing contingent valuation and choice modeling using field and eye-tracking lab data," Working Papers 1401, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    19. Oviedo, José L. & Caparrós, Alejandro, 2015. "Information and visual attention in contingent valuation and choice modeling: field and eye-tracking experiments applied to reforestations in Spain," Journal of Forest Economics, Elsevier, vol. 21(4), pages 185-204.
    20. Valerie Kilders & Vincenzina Caputo, 2024. "A reference‐price‐informed experiment to assess consumer demand for beef with a reduced carbon footprint," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(1), pages 3-20, January.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:4514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.