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Examining Impacts of Channel Addition/Elimination on Perceived Control and Concern about Cybersecurity: A Scenario-based Survey Study of Virtual Banking = 檢視渠道增加/消除對感知控制和網絡安全擔憂的影響: 基於虛擬銀行情境的調查研究
Principal Investigator
Department
Grant Awarding Body
Research Grants Council
Grant Type
Faculty Development Scheme
Project Code
UGC/FDS15/B01/25
Amount Awarded
HK$342,274
Funding Year
2025
Duration of the Project
12 months
Status
Ongoing
Abstract
Due to the Covid-19 pandemic, the elimination of brick-and-mortar channels has gained much attention in recent years. Previous studies on retailing and services have mainly focused on channel addition and integration. However, relatively few studies have examined channel elimination and forced adoption of remaining channels. Specifically, the relationship between the distribution of offline touchpoints and the cybersecurity of online channels has not been examined.
In this study, we will conduct scenario-based surveys to understand the influence of channel elimination and addition, especially in the marginal cases of adding the first touchpoint and removing the last touchpoint of offline channels, on people’s perceived control and concern about the cybersecurity of online channels. Highlighting the difference between touchpoints and channels, we define that a channel choice is eliminated when all touchpoints of a channel type are removed. The survey scenarios will be contextualized in the banking sector in Hong Kong. In the first study, we will demonstrate that eliminating all, but not some, brick-and-mortar touchpoints from multichannel, traditional bank will result in a significant reduction of perceived control and a significant increase of concern about cybersecurity. In the second study, we aim to find that by adding merely one single brick-and-mortar touchpoint to a digital-only virtual bank can significantly increase people’s perceived control of the bank’s online channels. The touchpoint addition will also significantly reduce people’s concern about the cybersecurity of its online channels.
Regarding theoretical implications, this study will establish relationships between offline touchpoints and online cybersecurity. It will also address the current research gap of overlooking the gradual process toward complete channel elimination. In terms of practical implications, we recommend that multichannel businesses avoid closing all offline channel touchpoints. Negative effects of perceived control due to the deprived freedom of channel choice are substantial when the size of the brick-and-mortal channel is reduced to none. If a multichannel business decides not to keep even one brick-and-mortar store, we will recommend the business be prepared to upgrade its cybersecurity of online channels.
Furthermore, for digital-only businesses, we will propose an additional approach to alleviate cybersecurity challenges alongside efforts on online channels: adding a brick-and-mortar touchpoint which leaves customers an extra channel choice to complete their customer journey. Customers may be less hesitant to make their online purchases due to the existence of an offline touchpoint.
In this study, we will conduct scenario-based surveys to understand the influence of channel elimination and addition, especially in the marginal cases of adding the first touchpoint and removing the last touchpoint of offline channels, on people’s perceived control and concern about the cybersecurity of online channels. Highlighting the difference between touchpoints and channels, we define that a channel choice is eliminated when all touchpoints of a channel type are removed. The survey scenarios will be contextualized in the banking sector in Hong Kong. In the first study, we will demonstrate that eliminating all, but not some, brick-and-mortar touchpoints from multichannel, traditional bank will result in a significant reduction of perceived control and a significant increase of concern about cybersecurity. In the second study, we aim to find that by adding merely one single brick-and-mortar touchpoint to a digital-only virtual bank can significantly increase people’s perceived control of the bank’s online channels. The touchpoint addition will also significantly reduce people’s concern about the cybersecurity of its online channels.
Regarding theoretical implications, this study will establish relationships between offline touchpoints and online cybersecurity. It will also address the current research gap of overlooking the gradual process toward complete channel elimination. In terms of practical implications, we recommend that multichannel businesses avoid closing all offline channel touchpoints. Negative effects of perceived control due to the deprived freedom of channel choice are substantial when the size of the brick-and-mortal channel is reduced to none. If a multichannel business decides not to keep even one brick-and-mortar store, we will recommend the business be prepared to upgrade its cybersecurity of online channels.
Furthermore, for digital-only businesses, we will propose an additional approach to alleviate cybersecurity challenges alongside efforts on online channels: adding a brick-and-mortar touchpoint which leaves customers an extra channel choice to complete their customer journey. Customers may be less hesitant to make their online purchases due to the existence of an offline touchpoint.