Investigating the Mediating Effect of the Technology Readiness Index on the Relationship Between Customer Sociodemographic Profile and Net Promoter Score of a Government Bank in the Philippines

Abstract

This study examined the mediating role of the Technology Readiness Index (TRI) in the relationship between customers’ sociodemographic profile and Net Promoter Score (NPS) among 228 active users of a government-owned bank’s Internet banking application in Nueva Ecija, Philippines. A descriptive research design with purposive random sampling was employed, using a validated bilingual (English-Filipino) structured questionnaire. Respondents were predominantly young (25-33 years), female (59.65%), single, college-educated public-sector employees (85.09%) with moderate income and relatively short banking tenure. The bank recorded an outstanding NPS of 60.96 (67.54% Promoters, 25.88% Passives, 6.58% Detractors), significantly surpassing international banking benchmarks. Internet banking application usage was moderate and selective, focusing on core features (balance inquiry, fund transfers, bill payments) while advanced functions remained largely unused. Customers displayed high technology readiness (overall TRI = 3.813), characterized by strong Optimism (4.167) and Innovativeness (3.691), with minimal Discomfort and Insecurity. Mediation analysis revealed that TRI significantly mediated only the relationship between monthly income and NPS (indirect effect = 0.042, p = .037). No significant mediation was found for other sociodemographic variables. Direct predictors of higher NPS were public-sector affiliation (β = 0.79, p = .002) and banking tenure (β = 0.085/year, p < .001). Despite high technology readiness, customer loyalty remains rooted primarily in institutional trust and mandatory relationships rather than digital experience, with technology readiness influencing advocacy mainly among higher-income customers.