Title: Why people aren't using wireless internet: a behavioural economics approach to technology preferences
Author: Punit Ahluwalia, Gregory Gimpel, Upkar Varshney
College of Business Administration, 1201 West University Drive, Edinburg, TX 78539, USA.
Center for Applied ICT, Copenhagen Business School, Howitzvej 60, 2nd Floor, 2000 Frederiksberg, Denmark.
Robinson College of Business, Georgia State University, Atlanta, GA 30303, USA
Abstract: This paper proposes a new model for understanding the adoption of internet services when competing technological standards can fulfil similar needs. Using prospect theory as its theoretical foundation, the model posits that reference prices, flat rate preference, and status quo bias constitute the perceived sacrifice when users consider adoption of new services such as wireless internet. Perceived sacrifice and perceived quality influence the perceived relative value, which in turn influences the intention to adopt wireless internet. The proposed model and related hypotheses are empirically confirmed through a field study. The paper discusses several implications for telecommunications policy and industry.
Keywords: wireless internet; world wide web; reference prices; status quo bias; flat rate preferences; perceived quality; perceived value; service organisations; behavioural economics; technology preferences; internet usage; technological standards; competing standards; perceived sacrifices; perceptions; new service adoption; relative value; telecommunications industry; telecommunications policies; Copenhagen; Denmark; universities; higher education; student surveys; services.
Int. J. of Services and Standards, 2010 Vol.6, No.3/4, pp.271 - 294
Available online: 18 Feb 2011