Applying Logistic Regression to E-Banking Usage in Kumasi Metropolis, Ghana

Kawme Annin, Maurice Omane-Adjepong, Sonita Sarpong Senya


Purpose: The main focus of this paper is to ascertain whether customer’s decision to use e-banking is influenced by socioeconomic classifications. It further seeks to identify the kinds of e-banking services provided to customers, and also examines the most frequently patronized e-banking service.

Methodology/approach: In all, 241customers of three state-owned retail banks from Kumasi Metropolis, one of the most urbanized metropolis in Ghana, were used as sample for the survey. A well-structured questionnaire was used to obtain relevant information from the customers. Responses gathered from the customers were mainly analyzed using a binary logistic regression.

Findings: Internet banking, ATM, E-Zwich and mobile phone banking were the commonly identified e-banking services offered by the banks. Among such services, ATM was the most frequently patronized service whereas internet banking recorded very low patronage. From the chi-squared test of association, customer’s operational bank and occupational status were found to have significantly informed the decision to use e-banking. With respect to the logit analysis, customer’s operational bank, occupational status and monthly income were significant socioeconomic classification variables that informed customer’s decision to use e-banking.

Practical implications: This paper may serve as scientific basis for banks to consider customers’ socioeconomic classifications, in designing any e-banking marketing strategies in targeting customers in urban communities in Ghana.

Originality/value: With the use of a logit regression, this paper has identified occupational status, customer’s bank and monthly income as significant socioeconomic variables that inform a Ghanaian customer’s decision to use e-banking.

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International Journal of Marketing Studies  ISSN 1918-719X(Print) ISSN 1918-7203(Online) E-mail:

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