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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/28520
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| Title: | Stuck in the Adoption Funnel: The Effect of Delays in the Adoption
Process on Ultimate Adoption |
| Authors: | Lambrecht, Anja - London Business School
Seim, Katja- Wharton School, University of Pennsylvania |
| Keywords: | Technology Adoption, Adoption Process, Online Services, Banking |
| Issue Date: | 2007 |
| Series/Report no.: | NET Institute Working Paper;07-40 |
| Abstract: | Online applications and services automate communications and
transactions between rms and consumers, promising large efficiency
gains. However, consumers have been slow to use these online
technologies intensively, despite widespread adoption of the internet.
Customers frequently undergo a staggered adoption process that may
involve sign-up, experimentation, trial, and substantial usage until
they fully embrace internet services. We ask whether delays in moving
through the initial stages of this adoption process contribute to
consumers ultimately not using the service intensively. Such behavior
would be consistent with laboratory findings on consumer memory. We
explore this question using data from a German retail bank where only
24% of the customers who sign up for the bank's online banking service
use it substantially. We use exogenous variation in delays in the
adoption process, caused by vacations and public holidays in different
German states, to identify this effect. We find that delays in the early
stages of adoption significantly reduce a customer's probability of
moving to substantial usage: A 10-day delay of a customer's first online
login reduces the likelihood that she will ever use the technology
substantially, by 33%. This eect is more severe for demographic groups
with less online experience. |
| URI: | http://hdl.handle.net/2451/28520 |
| Appears in Collections: | NET Institute Working Papers Series
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