Module 6 - Technology Adoption

Module 6Technology Adoption : 

Module 6Technology Adoption Sri Beldona, Ph.D. HRIM 140 Information Technology in Services Management

The Landscape : 

The Landscape A period of rapid change in consumer adoption of technology as a whole. Potential to empower yourself using technology as opposed to just maximizing its utilization Imperative for firms to understand how consumers adopt and buy.

Services Marketing Pyramid : 

Services Marketing Pyramid Source: Adapted from Exhibit 1 in Parasuraman, A. (2000), “Technology Readiness Index (TRI): A Multiple-Item Scale to Measure Readiness to Embrace New Technologies,” Journal of Service Research, 307-320. Technological Links in the Pyramid The Company Customer Link The Company Employee Link The Employee-Customer Link

Technology Readiness (TR) (Colby & Parasuraman, 2003) : 

Technology Readiness (TR) (Colby & Parasuraman, 2003) “a natural propensity to embrace and use new technologies for accomplishing goals in home life and at work.”” TR – At a fundamental level, it is a continuum with resistance to technology at one end and receptiveness of technology at the other. “People high in TR tend to adopt cutting-edge technologies sooner than others, and make greater use of them following adoption.” “A measure of mental disposition, and is not a measure of technical competence”

TR – Contributors and Inhibitors : 

TR – Contributors and Inhibitors Contributors Innovativeness - an inherent desire to experiment with technology, learn about it, and influence others Optimism - a faith in the ability of technology to provide real benefits. Inhibitors Discomfort - a feeling of lacking control over technology Insecurity – a need for assurance that technology is working properly along with a fear that it can cause problems

TR & The Five Segments(Colby & Parasuraman, 2003) : 

TR & The Five Segments(Colby & Parasuraman, 2003)

The Five Segments - Marketing Opportunities & Challenges : 

The Five Segments - Marketing Opportunities & Challenges Explorers - Leverage them to evangelize the technology/s-service and create early demand Pioneers – Help them overcome their inhibitions to the technology/s-service through friendly design, support, and reassurance Skeptics - Convince them of the underlying benefits of the technology/s-service. Paranoids – Offer high levels of reassurance about the safety and security of technology/e-service Laggards - Reach out to them by developing streamlined, easy-to-use offerings.

Slide 8: 

The Technology Adoption Life Cycle (Moore, 1991) Early Market Mainstream Market Mobile Phones Palmtops

Slide 9: 

Early Market Consists of the Innovators and Early Adopters Serve as Visionaries Technology is a change agent and the people using it are the champions of change Opinion leaders Visionaries want to set the standards and their approval is crucial Mainstream Market Consists of an Early Majority and a Late Majority More solution oriented Price is a big issue Will wait until a platform or application becomes the de facto standard The Technology Adoption Life Cycle (Moore, 1991)

Slide 10: 

Innovators Early Adopters Early Majority Late Majority Laggards Techies Visionaries Pragmatists Conservatives Luddites The Chasm The Technology Adoption Life Cycle (Moore, 1991)

Implications for Firms : 

Implications for Firms Customer-focused design Responsive customer support Reassuring design and communication Proving benefits