Skip to content
Jisan Nuren Siam
Jisan Nuren Siam

Data · Research · Products

All work

Organization & researchSmartPLS 4 · PLS-SEM

Why Do Merchants Continue Using bKash's Mobile Financial Service App Despite Alternative Payment Options?

Merchants have alternatives, yet many keep using the same mobile financial service app. A PLS-SEM study of 400 semi-urban merchants examines why.

Overview of the merchant continuance study: 400 merchants, cluster sampling, SmartPLS 4 and PLS-SEM in a semi-urban context, with a research model linking perceived value, trust, switching cost, habit and satisfaction to continuance intention.
Fig. 01 — Project overview
Organization context
bKash Limited · MBA internship research
Role
MBA internship research using PLS-SEM. This research is separate from the later Territory Executive (Merchant Development) role at bKash Limited.
Type
Professional work
Status
Completed research
Tools
SmartPLS 4 · PLS-SEM · Survey research
Merchants
400
Context
Semi-urban
Constructs
7
Model fit
SRMR .034

Case study

01Framework

Seven constructs

Perceived value and trust were modeled as drivers of satisfaction; satisfaction, habit and switching cost as drivers of continuance intention; and digital experience as a direct predictor and a moderator. Measurement quality was strong overall.

Measurement model assessment table confirming reliability, convergent validity and discriminant validity for all seven constructs.
Fig. 02 — Measurement model

View full size: Measurement model (opens in a new tab)

02Drivers

Satisfaction was the strongest direct driver

Trust (.609) and perceived value (.564) predicted satisfaction; satisfaction (.625), habit (.366) and switching cost (.250) predicted continuance. Digital experience had no significant direct effect (β = −.018, p = .619).

Structural model results with path coefficients from perceived value and trust to satisfaction, and from satisfaction, switching cost and habit to continuance intention; digital experience's direct path is not significant.
Fig. 03 — Continuance drivers

View full size: Continuance drivers (opens in a new tab)

03Mechanism

Satisfaction carries value and trust

Satisfaction mediated the effects of perceived value (.353) and trust (.381). Digital experience strengthened the satisfaction–continuance link (interaction β = .221, p < .001): the conditional effect rose from .404 at low digital experience to .625 at average and .846 at high.

Mediation diagrams for perceived value and trust through satisfaction, and a line chart of the conditional effect of satisfaction at low, average and high digital experience.
Fig. 04 — Mediation and moderation

View full size: Mediation and moderation (opens in a new tab)

04Explanatory power

A well-fitting model

The model explained 62.1% of the variance in satisfaction and 70.8% in continuance intention (R² = .621 and .708), with SRMR = .034.

Executive interpretation of the model with six key findings and model quality figures: R² for satisfaction and continuance intention, SRMR and sample size.
Fig. 05 — Merchant retention insights

View full size: Merchant retention insights (opens in a new tab)