Role of Perceived Innovation Characteristics and Information Quality on Perceived Usefulness in Adoption of Technological Products

Abstract

Innovation is essential in development of technological product. Technological products are advancing on a day-to-day basis. With various technological products being developed, it has been observed, the lifecycle of the product has reduced. In a shorter life span of product creation and growth, it is a challenge for the marketers to convince customers to accept a product and adopt it. This study will help the marketers understand various factors that lead to intention to adopt a technological product with special reference to wearable technologies. There have been many adoption theories that have developed to understand the factors leading to adoption of a product. In all the theories, behavioural intentions have played a role. Many models like “Innovation Diffusion Theory” (Rogers, 1962), “Unified Theory of Acceptance and Use of Technology” (Venkatesh, 2003) were developed to study adoption intention. In various models, it was theorized, perceived usefulness plays an important role in intent to adopt a product. There are many other factors that affect intention to adopt a product. Product innovation characteristics (PIC) are the characteristics which make new product or innovation different from other products or innovation. As mentioned by Roger, 1962 and Rogers and Shoemaker, 1971, PIC has five dimensions namely, relative advantage, compatibility, visibility, trialability, ease of use (complexity). Adoption of a product or innovation is a decision-making process which begins with awareness of the product or innovation. There is risk associated in buying new product or innovation. Every person who considers buying a new product or innovation conducts a cost benefit analysis (McWilliams, & Siegel, 2011). In the study of wearable technology, price associated would be more. With higher price, lies the higher risk. To mitigate the risk associated with the product, information plays a role in understanding the new product or innovation (Brockman & Morgan, 2003). Information is received from various sources. From marketing literature (Kotler et. al, 2010), there are major four sources from where information is received- internet, print, television and word of mouth (WOM). Based on the insights, the current study theorizes and develops research model by integrating innovation diffusion theory (IDT), information systems theory and UTAUT model. The proposed research model attempts to study the following research questions: (1) Whether Perceived Innovation Characteristics, Information Quality and Perceived Usefulness lead to adoption of a technological product? (2) Does network diversity affect the adoption process of new product? For the research the respondents were working professionals. A sample of 351 responses was collected through convenience sampling. The study was divided into four parts in terms of information sources, namely, internet, television, print and word of mouth. The findings of the study provide empirical support for the research hypotheses. It was found that (1) Perceived usefulness has a strong role to play in adoption process. It acts as a mediator between perceived innovation characteristics-adoption intention and perceived information quality-adoption intention. (2) Amongst the various mediums, in television medium, tie strength have not shown moderating effect. For rest of the mediums tie strength has moderated the relationship between perceived usefulness and adoption intention. (3) It was observed the strong ties strengthen intention to adopt wearable devices. Finally, the current study concludes with theoretical and managerial insights based on empirical findings. These insights provide clarity and recommendations to marketers for the factors to be considered in new product development (NPD).