The Empirical Study

The primary research included both qualitative and quantitative research, as suggested in the literature (Sieber, 1982; Strauss, 1987). Qualitative reseach was used to better define the problem to be studied and the concepts involved.

Quantitative research followed qualitative research in the form of a survey design and pilot study.

1.8.2.1 Qualitative Research

Qualitative research is defined as a form of systematic empirical inquiry into meaning (Shank, 2002). Exploratory research was conducted to obtain a deeper understanding of the concepts and interpret the problem (Wiley, 2010). In this study exploratory research was conducted before defining the problem statement and to identify the variables that are relevant to the problem. Qualitative research was conducted in the form of: (1) experience surveys, (2) focus groups and (3) observation.

Experience surveys provided insight by interviewing individuals who have experience in the research problem and field of study (Wiley, 2010). Four stages of experience surveys were conducted: (1) semi-structured telephonic interviews with Johan Vermaas (former retail director of National Bank of Commerce) and DK Waiza (institutional coverage manager at Absa Capital), (2) informal personal interviews within South Africa with Nolundi Bhiko (Stokvel owner), Razeen Nieftagodien (President of the University of Stellenbosch’s Islamic society) and Chrizelda van Reenen (Absa Sales Manager), (3) semi-structured personal interviews with banking CEOs in Tanzania and (4) informal personal interviews with banked and unbanked Tanzanian individuals.

Focus groups were conducted in Tanzania with both banked and unbanked students from the University of Dar es Salaam. Focus groups allowed for the collection of subjective data about individuals’ attitudes towards performing behavior related to banking.

Observation was conducted in NBC, Barclays, FNB and CRDB banks in Tanzania.

These banks were selected as they are the major role players in the Tsnzanian banking industry. Observation allowed for individuals to be studied performing banking tasks without the field worker influencing their behavoiur.

The qualitative research provided valuable insights into the decision-making process followed by Tanzanains when deciding whether to open formal bank accounts. The focus groups in particular allowed participants to express the dimensions of importance when considering to purchase formal banking products. These dimensions where used to develop a revised Theory of Planned Behaviour for the Tanzanian banking industry.

1.8.2.2 Adaptation of the Theory of Planned Behaviour for the Study

The Theory of Planned Behaviour was developed within a Western context and therefore fails to take into account the unique culture and characteristics of Tanzania (Ajzen, 1991). The exploratory research provided valuable insight that allowed for the adaptation of The Theory of Planned Behaviour to incorporate dimensions that were specific to the Tanzanian banking industry. The following dimensions were identified and incorporated into an adapted model of Theory of Planned Behaviour for the Tanzanian banking industry: (1) trust, (2) perceived relative advantage, (3) attitude towards saving, (4) acess convenience and (5) perceived economic value.

The literature overview provided further contributions to the model by suggesting the need to study the relationship between collectivism and reference groups.

Collectivism has been shown to be a cultural value that influences the importance of reference groups for consumers when making a purchase decision. Thus a relationship is hypothesised between collectivism and reference groups. The

adapted Theory of Planned Behaviour taking into account the findings of the exploratory research and the literature overview is depicted in Figure 1.3.

Figure 1.3 Adapted Theory of Planned Behaviour

As can be seen in Figure 1.3 the adapted Theory of Planned Behaviour provides five additional independent variables to the model. The independent and dependent variables are discussed in order to allow for the development of hypotheses.

ii. Independent Variables

The following independent variables were identified in this study: (1) attitudes (towards banks and the behaviour banking), (2) subjective norms (reference groups), (3) perceived behavioural control (self-efficacy), (4) collectivism, (5) trust, (6) perceived relative advantage, (7) attitude towards saving, (8) service convenience

Inten&on  to  open   a  formal  bank  

account   A3tude  towards  

saving  

A3tude  towards   banks  

Access   convenience  

Self-­‐Efficacy  

Reference  groups   Collec&vism  

A3tude  towards   banking  

Perceived  rela&ve   advantage   Perceived  value  

and (9) perceived economic value. Independent variables are presumed to effect or determine the dependent variable (Zikmund et al., 2010).

iii. Dependent variables

The dependent variables are influenced by the independent variables (Zikmund et al., 2010). Intention to open a formal bank account was selected as the main dependent variable for the study as it is a critical indicator of consumers’ purchase behaviour when deciding whether to open a formal bank account (Ajzen and Fishbein, 1985). The concept of reference groups is also a dependent variable in the study when studying the relationship between collectivism and reference groups.

The proposed relationships between the independent and dependent variables in the study allow for the formulation of ten hypotheses.

1.8.2.3 Hypotheses

A hypothesis is a proposed explanation of a phenomenon and in the case of the study the hypotheses seek to describe the relationship between the independent and dependent variables (Zikmund et al., 2010).

Ho1: There is no relationship between attitude towards banking and intentions to open a formal bank account.

Ho2: There is no relationship between attitude towards banks and intentions to open a formal bank account.

Ho3: There is no relationship between the importance of reference groups and intentions to open a formal bank account.

Ho4: There is no relationship between perceived self-efficacy to open a formal bank account and intentions to open a formal bank account.

Ho5: There is no relationship between collectivism and importance of reference groups.

Ho6: There is no relationship between trust towards banks and intentions to open a formal bank account.

Ho7: There is no relationship between perceived relative advantage of banking and intentions to open a formal bank account.

Ho8: There is no relationship between attitude towards saving and intentions to open a formal bank account.

Ho9: There is no relationship between access convenience to banking services and intentions to open a formal bank account.

Ho10: There is no relationship between perceived value of banking products and intentions to open a formal bank account.

In order to test the hypotheses it was necessary to conduct quantitative research.

Quantitative research allows for the collection of primary data that can be analysed using inferential statistics to test the hypotheses.

1.8.2.4 Quantitative Research

After the completion of exploratory research, primary data were collected by means of a survey. A questionnaire was developed by reviewing and adapting existing scales, pre-tested, adjusted and then used to collect data for the study. In the following sections, a brief overview of the methodology used is given.

i. Questionnaire

A structured questionnaire was designed in order to collect the necessary data needed to meet the research objectives for the study. A pencil and paper questionnaire was used by the researcher.

The questionnaire consists of three parts. Part one contains two screening questions asking respondents to indicate if they currently own a formal bank account and if they are studying towards a post-matric qualification. The screening questions at the beginning of the questionnaire were necessary in order to determine if respondents are unbanked and studying towards a post-matric qualification - requirements for partaking in the study. Part two contains items that measure the dependent and independent dimensions identified in the adapted Theory of Planned Behaviour model (Ajzen, 1991). The scales selected for the questionnaire comprised of five point likert scales and five point semantic differentials. The scales used to measure percevied relative advantage and intentions were developed for the study while the remaining scales were adapted from consumer behaviour literature. Lastly, part three contains demographic questions that allowed for the segmentation and analysis of the respondents’ responses based on their demography. The questionnaire was translated into Kiswahilli to allow for it to be administered in Tanzanian’s mother tongue. After translation of the questionnaire into Kiswahilli it was back translated to ensure acuracy of the original translation.

As the scales selected for the questionnaire were adapted from consumer behaviour literature or developed for the study it was necessary to test them in a pilot study before using them in the survey. The pilot study was conducted in South Africa due to time and money constraints.

ii. Pilot Study

The questionnaire was tested in a pilot study before the researcher embarked for Tanzania. The pilot study was conducted in Macassar (Cape Town/South Africa) as the area has a large number of unbanked individuals and was easily accesible for the researcher. A total of twenty-five individuals were selected for the pilot study as this would provide sufficient data to test the relaibility of the scales. After the completion of the pilot study the questionnaire was ready for administration in Tanzania.

iii. Sampling Procedure

A smpling plan was developed in order to administer the questionnaire in Tanzania.

Sampling was used as it was not practical, due to time and financial constraints, to survey every member of the population (Zikmund et al., 2010).

a) Target Population

The population for the study was comprised of individuals estimated to be between the ages of 18 and 27, who are currently studying towards a post-matric qualification.

The population consists of both male and female students. The population was selected as research has shown that individuals over the age of 27 with a tertiary education are most likely to be members of the formal banking sector (Finscope, 2007). Thus, the population of the study are the banks most likely future customers.

b) Selection of Unit of Analysis

Students studying at the Dar es Salaam Librarian Training School were selcted on the basis of convenience sampling as they: (1) were representative of the population, (2) were fluent in both English and Kiswahili, (3) contained the largest number of individuals that were unbanked of the tertiary providers visited and (4) they were easily accessible as the lecturers and students were co-operative and the facilities were located within walking distance of the researcher’s hotel.

c) Sample Size

A sample size of two hundred and fifty individuals was selected as this provided sufficient data to support the credibility of the findings and allow for the use of statistical tests necessary for the study (Hair, Black, Babin, Anderson and Tatham, 2005).

1.8.2.5 Data Collection

Data collection took place at the Dar es Salaam Librarian Training School on 12 March 2013. Students were required to participate in the research study by order of their principal. The Dar es Salaam Librarian Training School provided a venue that was able to seat 250 individuals and a public announcement system for communicating with the students. Two field workers that were fluent in both English and Kiswahilli assisted process in order to ensure that respondents were provided with adequate guidance and support.

After completion of the data collection process the questionnaires were reviewed by the field workers and those that were incomplete or filled in incorrectly were removed. A total of 183 completed questionnaires were retained. The data from the 183 questionnaires was entered into a Microsoft Excel spreadsheet and then imported into IBM SPSS (18) for statistical analysis.