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Description
Communication is the critical process of diffusion of technological innovations, yet there is little research in the consumer behavior literature investigating how communication affects consumers' decision to adopt technological innovations. This paper examines the effects of communication source and modality on consumers' adoption of technological innovations using the 1999 University of Michigan's Survey of Consumers data. Specifically, a typology of communication sources and modality is presented, and the respective and interrelated influences of source and mode on consumers' adoption of electronic banking are examined. The results demonstrate that communication factors can serve as significant predictors of consumer adoption of technological innovations and that consumer preferences for communication source and modality vary for different segments of adopters. In addition, we find information gaps between consumer segments high and low in socioeconomic status. Finally, implications for the diffusion of te chnological innovations and future research directions are discussed.
Technology is "a form of human activity that applies the principles of science and mechanics to the solution of problems," to the enhancement of performance, and the creation of competitive advantage (Bush 1981, p. 1). In today's world, technological advancements seem to occur constantly as companies introduce innovative products and services into the marketplace at an ever-increasing speed. During this era of accelerating technological advancement, product life cycles for many high tech innovations are rapidly decreasing. Facing the challenge of what may seem to be a bombardment of technological products and services, coupled with the rapid pace of change occurring in the technology industry, many consumers today seem to be overwhelmed with technological innovation (Cohen 1999; Hirschman 1987; Miles 2000). Without diffusion agents vigorously communicating useful information, these consumers are not always able to recognize the full advantages of these technological innovations (Campbell 1999; Nuttall 1998). As Allen (1971) rightly put it, technology is also "consumer information" (p. 2), the flow of which must be planned and managed through appropriate communication processes in order to facilitate the adoption by potential customers.
Rogers' Diffusion of Innovations Theory (1995) provides some conceptual guidance for understanding the adoption of products and services, and how technological innovation is proliferated across the consuming public (Gatignon and Robertson 1985). To date, the bulk of the diffusion studies in the consumer behavior literature have tilted heavily toward either individual predisposition (Hirschman 1980; Midgley and Dowling 1978) or innovation characteristics (Rogers 1995), as precursors of innovation adoption. It is important to note that communication is also a critical process factor for the diffusion of innovation (Mahajan, Muller, and Bass 1990). Yet, to date, consumer researchers have largely neglected the empirical study of communication in the diffusion process. Only a handful of studies have considered the notion that various types of communication can influence consumers' adoption of innovation (Mahajan, Muller, and Bass 1990; Mahajan, Muller, and Srivastava 1990).
This paper considers the diffusion of technological innovation as it travels through multiple communication sources employing various communication modes. In this study, "sources" including mass media (i.e., one-way communication from corporations or government to consumers) and word of mouth (i.e., communications with family and friends), are coupled with one or both conversation and/or print "modes." While previous studies have not differentiated the effects of written and conversational communication, this study explicitly recognizes and investigates the differential impacts of written and conversational modalities. An empirical study is presented examining the perceived usefulness of these varied strategic communication combinations in the diffusion and adoption of technology using the 1999 University of Michigan's Survey of Consumers data.
REVIEW OF LITERATURE
The communication literature has identified the various paths that information travels as it crosses different population segments within a social system. The two-step flow model of communication, for example, posits that information flows from mass media (e.g., radio and print) to opinion leaders (innovators), and that the less active members of the society (imitators) are subsequently influenced by communication with these innovative consumers (Katz and Lazarsfeld 1955; Katz 1957). Opinion leaders have been found to be highly exposed to formal communication media including marketer- and independent third party-provided information. On the other hand, interpersonal communication was found to mediate the flow of information from mass media to the less active segments of the population (imitators).
Critics of the two-step flow model have asserted that mass media can have a direct impact on both innovators and imitators (i.e., hypodermic theory of mass media effects) or that the communication process can involve more than two (multiple) steps under certain circumstances (Mattelart, Mattelart, and Taponier 1998). In spite of continuing criticisms, the two-step flow model of communication has provided the conceptual foundation for the Bass model of diffusion in marketing. The Bass model (1969) assumes two means of communication that affect adoption decisions: mass media and word of mouth. Innovators are influenced only by the mass media communication, or external influences, whereas imitators are typically influenced only by word-of-mouth communication (Mahajan, Muller, and Bass 1990, p. 2).
Communication Sources and Modality
Communication Sources. The diffusion of innovation literature suggests that information about technological innovations can travel through a variety of communication sources and modes to members of a social system (Rogers 1995). Extant literature on consumer information search helps to identify the types of consumer communication sources that might be related to the adoption of technological innovations. Although a variety of external information sources have been introduced in the consumer behavior literature, the three major societal sources of information have been identified as marketer-provided (e.g., corporation, industry), independent third-party (e.g., government, independent agencies), and interpersonal (e.g., family, friends) (Lee and Hogarth 2000, 2001; Newman and Staelin 1972; Mazis et al. 1981).
While information about technological innovations may come from a variety of institutional sources, consumers use the provided information selectively. The preferred information source may differ across individual consumers (Beales et al. 1981; Midgley and Dowling 1993; Thorelli 1971), and individuals may have different propensities for relying on marketer-provided information, independent third-party information, and information from personal sources (Bearden et al. 1989; Furse et al. 1984).
Several marketing researchers (Bayus, Carroll, and Rao 1985; Rogers 1995; Westbrook and Fornell 1979) have suggested that potential adopters tend to use information from various sources, such as marketers and independent third parties beyond close interpersonal networks, because they are often highly involved with the product category (Bloch, Sherrell, and Ridgway 1986). Innovators tend to be heavier users of professional communication sources, such as sellers, governments, and other third parties, than imitators and non-adopters (Bayus, Carroll, and Rao 1985; Midgley and Dowling 1993; Price, Feick, and Higie 1987). Innovators are also heavy users of interpersonal communication (Bayus, Carroll, and Rao 1985; Gatignon and Robertson 1985). Imitators tend to rely heavily on interpersonal communication (Gatignon and Robertson 1985). Based upon these inclinations, the following hypotheses are offered:
H1: Receiving information from an industry or corporate source will be positively associated with the probability of being an innovator.
H2: Receiving information from government/consumer agencies will be positively associated with the probability of being an innovator.
H3: Receiving information from family and/or friends will be positively associated with the probability of being an imitator.
Communication Modality. Another important aspect of communication is the mode of communication. Two communication modes--written information and conversation--are examined in this paper. Written communication modes can be broken down into print media, letters and memos, and e-mails, while conversational modes can be classified as telephone conversation and face-to-face communications (Maltz 2000; Rice 1993). This taxonomy of consumer communication is summarized in Table 1. Previous studies considering communications mode within an organization context (Maltz 2000; Moenaert and Souder 1996) provide strong evidence that written communication (e.g., print media advertisement) and conversational communication (e.g., discussion with salespeople) have very different impacts on consumers perceptions about the usefulness of the information being communicated. However, to date, no studies have been found in the literature that examine how communication modes actually influence consumers' final decisions to adopt techn ological innovation. Therefore, it is important to examine how different Modes of communication influence consumers' perceived usefulness of information about technological innovations, and consequently, their decisions to adopt.
The difference between written and conversational communication is that written communication is one-way communication from the source to the receiver. Thus, the success of written communication is based on the receiver's comprehension of the provided information. On the other hand, conversation is an interpersonal interaction that allows two speakers to exchange sequentially linked messages, which consequently develops mutual agreement on the issue (Thomas 1992). It is suggested in the consumer behavior literature that conversations present information more vividly than written communication (Herr, Kardes, and Kim 1991), which requires rather elaborate processing. Thus, conversational information tends to be more persuasive than written information, especially when consumers are not highly motivated to learn (Celsi and Olson, 1988; Petty and Cacioppo 1982; Thomas 1992).
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