THE INFLUENCE OF FEES, BRAND IMAGE, SERVICE QUALITY, AND USER EXPERIENCE ON THE DECISION TO USE BANKING SERVICES WITH TRUST AS A MEDIATING VARIABLE

Abstract

This study focuses on both digital and conventional banks to analyze how price, brand image, service quality, and user experience influence customers’ decision to use banking services, with trust acting as a mediating variable. The research involved 405 respondents from Jabodetabek who actively use either digital or conventional banking services. The sampling method applied was purposive sampling, and data were collected using an online questionnaire. The study employed Structural Equation Modelling–Partial Least Squares (SEM-PLS) to examine the relationships among variables. The determination of minimum sample size referred to Hair et al. (2010), which states that (Number of indicators + Number of laten) × 10 is the minimum requirement; thus, with 28 indicators, at least 340 respondents were needed. The actual number of respondents (405) exceeded this requirement. The model’s validity and reliability were confirmed, and the Goodness of Fit (GoF) value indicated that the model had a strong overall fit. The results show that price, brand image, service quality, and user experience each influence trust, while trust in turn significantly affects the decision to use banking services. Furthermore, trust mediates the relationship between all independent variables and decision to use. This implies that while direct effects exist, indirect effects through trust are equally, if not more, important. Theoretically, this study contributes to the literature on consumer behaviour in financial services by integrating classical marketing constructs with trust as a central mediator. Practically, the findings provide insights for both digital and conventional banks in designing strategies to strengthen consumer trust, optimize service quality, adjust pricing structures, and improve user experience to encourage higher adoption and usage of their services.