Short answer

When introducing a new technology or service, prioritize understanding and communicating its perceived characteristics (e.g., its advantages, how it fits with existing practices, ease of understanding, and potential for trial) to potential adopters.

Field: Innovation & Markets
Source: International Journal of Bank Marketing (2008)
Method: Quantitative research using logistic regression analysis.
Evidence: Strong effect

Understanding the perceived characteristics of an innovation, beyond just its usability, is a stronger predictor of consumer adoption than traditional technology acceptance models. This innovation & markets research insight is drawn from a 2008 study published in International Journal of Bank Marketing. Using Quantitative research using logistic regression analysis., researchers explored how this design variable affects real-world outcomes. The key design takeaway: When introducing a new technology or service, prioritize understanding and communicating its perceived characteristics (e.g., its advantages, how it fits with existing practices, ease of understanding, and potential for trial) to potential adopters.

Study

Innovation & MarketsHigh ImpactStrong effect

Perceived Innovation Characteristics Outperform TAM and DoI in Predicting Internet Banking Adoption

Understanding the perceived characteristics of an innovation, beyond just its usability, is a stronger predictor of consumer adoption than traditional technology acceptance models.

International Journal of Bank Marketing · 2008

Key Findings

01The Perceived Characteristics of Innovation (PCI) model demonstrated significantly better predictive performance for internet banking adoption compared to TAM and DoI.
02Incorporating consumer demographics and psychographics further enhanced the predictive accuracy of the adoption model.

Application

Design takeaway

How to apply

When developing a new digital product or service, conduct research to understand how potential users perceive its key characteristics and tailor your value proposition and marketing messages accordingly.

Project actions

01When researching a new product or service, consider using the PCI framework to understand user perceptions.
02Explore how personal characteristics might influence the adoption of your design.

Method & Evidence

AimTo empirically compare the predictive power of the Technology Acceptance Model (TAM), Diffusion of Innovations (DoI) model, and the Perceived Characteristics of Innovation (PCI) model in predicting consumer adoption of internet banking, while also considering personal consumer characteristics.

MethodQuantitative research using logistic regression analysis.

ProcedureA web survey was administered to both users and non-users of internet banking. Confirmatory factor analysis was used to assess the psychometric properties of the measures, followed by logistic regression to compare the predictive abilities of the models and other predictors.

ContextConsumer adoption of internet banking services.

Variables

IV["Perceived Characteristics of Innovation (relative advantage, compatibility, complexity, trialability, observability)","Technology Acceptance Model (perceived usefulness, perceived ease of use)","Diffusion of Innovations (attributes of innovation)","Consumer personal characteristics (demographics, psychographics)"]

DVConsumer adoption of internet banking.

CV["Shopping context (banking)","Methodology (web survey, logistic regression)"]

Strengths & Limitations

Strengths

+Empirical comparison of multiple adoption models.
+Inclusion of both innovation attributes and personal consumer characteristics.

Limitations

The study's findings might be specific to the banking sector and may not generalize to all types of technological innovations. The non-random sampling of non-users could introduce bias.

Reliability & validity

The study used confirmatory factor analysis to assess psychometric properties, contributing to the reliability and validity of the measures. However, the non-random sampling of non-users may affect the external validity.

Think critically

How might the perceived characteristics of an innovation differ across various cultural contexts, and how would this impact adoption rates?

Design Principles

"Prioritize the communication of perceived innovation characteristics to drive adoption."

This research highlights that for new technologies, especially in digital services, focusing solely on ease of use (as in TAM) or the innovation's inherent attributes (as in DoI) is insufficient. Designers and marketers should prioritize communicating the broader perceived benefits and characteristics of a new offering to drive adoption.

What This Means for Your Design

For new technology like online banking, people are more likely to adopt it if they understand and believe in its unique benefits and how it fits into their lives, rather than just if it's easy to use or fits a general innovation theory. Personal traits also matter.

How to use in your project

1.Use the findings to justify your choice of user research methods, focusing on understanding perceived innovation characteristics.
2.Reference the PCI model when analyzing user adoption or resistance to your design solution.

Add to My Project

Quick Cite

Paragraph starter

This research indicates that the Perceived Characteristics of Innovation (PCI) model is a more effective predictor of consumer adoption for internet banking than traditional models like TAM and DoI. The study found that attributes such as relative advantage, compatibility, and complexity significantly influence adoption decisions. Furthermore, incorporating personal consumer characteristics like demographics and psychographics improved the predictive power of the model, suggesting that a holistic approach considering both innovation attributes and user profiles is essential for understanding and driving adoption.

Source

International Journal of Bank Marketing

Investigating the drivers of internet banking adoption decision

journal · 2008

View source

Questions About This Research

What does the research say about perceived innovation characteristics outperform tam and doi in predicting internet banking adoption?: When introducing a new technology or service, prioritize understanding and communicating its perceived characteristics (e.g., its advantages, how it fits with existing practices, ease of understanding, and potential for trial) to potential adopters. Evidence: International Journal of Bank Marketing (2008).
Why does "Perceived Innovation Characteristics Outperform TAM and DoI in Predicting Internet Banking Adoption" matter for design?: This research highlights that for new technologies, especially in digital services, focusing solely on ease of use (as in TAM) or the innovation's inherent attributes (as in DoI) is insufficient. Designers and marketers should prioritize communicating the broader perceived benefits and characteristics of a new offering to drive adoption.
How can designers apply this research?: When introducing a new technology or service, prioritize understanding and communicating its perceived characteristics (e.g., its advantages, how it fits with existing practices, ease of understanding, and potential for trial) to potential adopters.
What were the main findings?: The Perceived Characteristics of Innovation (PCI) model demonstrated significantly better predictive performance for internet banking adoption compared to TAM and DoI.. Incorporating consumer demographics and psychographics further enhanced the predictive accuracy of the adoption model.
What research method was used?: Quantitative research using logistic regression analysis..
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2008 journal from International Journal of Bank Marketing.
What should I do differently in my next project?: When developing a new digital product or service, conduct research to understand how potential users perceive its key characteristics and tailor your value proposition and marketing messages accordingly.
What are the limitations?: The sample of internet banking non-users was not randomly selected, and the study was confined to a single context (banking).