An Empirical Comparison of Consumer Innovation Adoption Models: Implications for Subsistence Marketplaces

So called “pro-poor” innovations may improve consumer wellbeing in subsistence marketplaces. However, there is little research that integrates the area with the vast literature on innovation adoption. Using a questionnaire where respondents were asked to provide their evaluations about a mobile banking innovation, this research fills this gap by providing empirical evidence of the applicability of existing innovation adoption models in subsistence marketplaces. The study was conducted in Bangladesh among a geographically dispersed sample. The data collected allowed an empirical comparison of models in a subsistence context. The research reveals the most useful models in this context to be the Value Based Adoption Model and the Consumer Acceptance of Technology model. In light of these findings and further examination of the model comparison results the research also shows that consumers in subsistence marketplaces are not just motivated by functionality and economic needs. If organizations cannot enhance the hedonic attributes of a pro-poor innovation, and reduce the internal/external constraints related to adoption of that pro-poor innovation, then adoption intention by consumers will be lower

Comparing theories to explain e-commerce adoption

E-commerce is a strategy for rapid growth, especially by small and medium sized businesses (SMEs). However, the adoption rate of e-commerce by SMEs in Latin America is still undersized. The authors compare the theory of planned behavior (TPB) and the theory of reasoned action (TRA) using structural equation modeling to determine which is better at predicting e-commerce adoption intentions among 210 SME managers/owners in Chile. Contrary to previous research with American respondents, the study does not find significant differences between the two theories. Thus, academics should select the more parsimonious model (TRA) to study e-commerce adoption issues in developing countries.E-commerce Theory comparison Structural equation models Chile

Stimulus context and the formation of consumer ideals

When a choice set consists of a distribution of alternatives with correlated benefits and costs, consumers often exhibit single-peaked preferences—they prefer an alternative having moderate costs and benefits. Theories disagree about how adding additional lower benefit/lower cost or higher benefit/higher cost alternatives to this choice set will affect relative preferences for the initial set of alternatives. Prototype theory predicts that adding alternatives should produce assimilation, whereas multiattribute range-frequency theory predicts that it creates contrast. We reconcile these two theories by assuming that single-peaked preferences reflect a composition of underlying benefit and cost valuations. Moreover, we claim that the correlational structure of the benefit and cost dimensions in the contextual stimuli determines whether these stimuli will exert an assimilation or contrast effect. We show that when benefits and costs are correlated (uncorrelated), adding alternatives that extend the range of offerings produces assimilation (contrast) for preference judgments. We propose a cost-benefit trade-off model that incorporates elements of single-peaked preference theory and range-frequency theory to explain the complex fashion in which contextual stimuli affect consumer ideals