| This dissertation examined variables hypothesized to affect the extent of consumer external information search for banking services. Perceived benefits of search, perceived risk of purchase decision, perceived cost of information search, and perceived knowledge of banking services were postulated to affect the extent of information search on banking services.;The relationship among the above-mentioned exogenous variables, and between the exogenous variables and the endogenous variable, extent of information search, were hypothesized within a proposed banking services model derived from a review of the research on the topic of external information search of mainly tangible goods. A questionnaire measuring the variables, as well as particular demographic information, was developed based on interviews with finance professors, bank officials, and a focus group study. The 661 usable questionnaires from a student convenience sample formed a data set which was analyzed for scale validity and reliability using exploratory factor analysis, and for fit of the proposed banking services structural model with the data collected. LISREL VII, using maximum likelihood estimation techniques, provided an estimate of the extent and significance of the relationships between the variables in the banking services model. Based on t-values, the fitted banking services structural equations model revealed that 5 of the 8 hypothesized relationships were significant at the.05 level, More specifically, the findings suggested that the extent of information search for banking services was influenced by perceived benefit, perceived cost, and perceived knowledge. The fitted model also revealed a significant positive relationship between perceived risk and perceived benefit, and a significant positive relationship between perceived knowledge and perceived benefit.;The results from this study show that information search for services are affected by the same variables and in the same direction as information search for goods. It is proposed that future research on information search for goods and services should concentrate on forming models based on the level of perceived risk, involvement, and importance of the product. |
