IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 22, Issue 6. Ser. V (June. 2020), PP 22-32 www.iosrjournals.org DOI: 10.9790/487X-2206052232 www.iosrjournals.org 22 | Page Measuring Customer’s Attitude Towards Internet Banking Adoption In Ethiopia Haile Shitahun Mengistie 1 Aemro Worku 2 * 1 Department of Management, Jinka University, Ethiopia. 2 Department of Marketing Management, Injibara University, Ethiopia. *Corresponding Author Abstract: The main purpose of this paper was toMeasure customer’s attitude towards internet banking adoption in Ethiopia using TAM and DTPB. It adopted descriptiveand explanatory research design. The sample size of 400 customers of Ethiopian public and private banks was drawn from Bahir Dar city, Jinka town, and Injibara town. The study findings of correlation analysis showed that all constructs TAM and DTPB (Compatibility,Subjective norm, trust, perceived usefulness and perceived ease of use) were positively and significantly affect customer’s attitude towards IB. The findings of the multiple regressions analysis showed that the observed changes in customers attitude attributed by the TAM and DTPB (Compatibility,Subjective norm, trust, perceived usefulness and perceived ease of use) is 52.1% (adjusted r2=.521).The findings revealed that all variables included in the models (Compatibility,Subjective norm, trust, perceived usefulness and perceived ease of use) were significant in affecting customers attitude towards IB. Results also revealed that the variable perceived usefulness plays the most important role, followed by compatibility and perceived ease of use in predicting customers attitude towards IB, while trust has lower predicting power than others. Key words: Internet banking, customer’s attitude, banking industry, TAM, and DTPB --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 01-06-2020 Date of Acceptance: 16-06-2020 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction Technology is affecting the life of every individual both qualitatively and quantitatively in the present environment. The quick expansion of information technology has imbibed into the lives of millions of people and introduced major changes in the worldwide economic and business atmosphere. In recent years the market has advanced new technologies within the banking industry. Banking services have been growing through information technology across the world. These technological advancements affected the banking sector, which has been led to develop new concepts such as e-finance, e-money, and e-banking to maximize return and to attract more customers (Priyangika, Perera, &Rajapakshe, 2016). Interconnectivity of personal computers across the country and intercontinental relationship through the internet has opened a wealth of opportunities in every day to day activities of life (Jasmine &Pavithra, 2018). Internet technology affects the transformations of banks to terminate old models of how banking services are developed and delivered. This application of the internet on banking services is known as internet banking. According to (Gautama &Khare, 2014 ) internet banking refers to the use of a bank‟s website through which customers access their banking accounts, conduct financial transactions, and obtain general information regarding banking products and services with an Internet connection at any time they wish. It is viewed as a supplemental channel used in combination with other channels to provide convenient banking services. By using Internet banking, banks attempt to change the mix of financial services provided and how they deliver these services (Srikanth& Rao, 2013). Internet banking as a new delivery channel facilitated banking transactions for both customers and banks (Chikwendu, 2013). For customers, the internet banking allows consumers easier access to financial services, reduce costs associated with a branch visit like going to the branch and waiting on lines, eliminates physical and geographic boundaries and time limitations of banking services (Yang et al., 2007). From a bank's perspective, Internet banking has led banks and financial institutions to improve the effectiveness of distribution channels through reducing transaction costs and increasing the speed of service (Al-Smadi, 2012). Due to the advantages of both service providers and consumers during financial transactions, internet banking services have rapidly grown in the financial market as the best tool to provide services. Banking industry is one of the industries where consumers play an important role (Sarker, Bose & Khan, 2012). Huge number of customers is involved in banking industry taking the banking services regularly. Customers are often very much demanding and decisive in their attitude regarding the type and quality of services offered by the banks; hence it is very difficult to maintain customer, and it is a challenging task for banks (Ijaz& Ali, 2013). To win the customers loyalty and ensuring their interest, banks are required to