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An Analysis of Factors Influencing Adoption of Broadband Services: A Case Study of South Wales

Introduction

Because of an exponential growth of information and communication technologies, the broadband users now have various choices for using broadband services. A cut-throat competition exists among the broadband service providers especially in the developed countries like United Kingdom. The availability of different choices has turned this simple decision to a complex one for the broadband users. The competitive environment has compelled the service providers to develop products or at least to differentiate their product from that of their competitors. This variety of products has provided unlimited choices to the broadband users. Various factors influence their decisions for selection and adoption of the broadband services.

This study will empirically investigate the factors affecting the adoption of the broadband services in United Kingdom. Computer literacy and basic infrastructure are   the critical requirements for the adoption of the technology. The diffusion or the introduction of new technology at infancy is always full of uncertainties and risks. A lot of technologies, the world does not know, emerged and failed due to the lack of adoption. Many technologies got attention and made the revolutionary changes to the world. Broadband is one of the most significant developments of last century .It has changed the business and social models to great extent. Various applications such as social websites and software have changed the way of living and lifestyle. The use of technology has become a very important part of everyday life in this era.  Use of broadband services is not only an important decision for the business enterprises but also for the household.

This study will provide insights into this important decision. Various factors which affect this decision will be empirically investigated to provide better understanding of the nature of this important decision. Existing literature provide sufficient knowledge about the product adoption and diffusion process by the consumers. Adoption of technology has some underlying factors which affect this decision making process including the knowledge of the technology and attitude toward innovative ideas. This study will highlight and investigate those factors and find out the most significant factors.

Objectives of the Study

The specific objectives of this study include:

  • To explore the factor affecting broadband adoption decision.
  • To investigate the behavioural factor in adoption process of broadband services.
  • To study the cognitive process in broadband adoption decisions.
  • To find out the role of social and financial factors in broadband adoption decision

General objectives of the study include:

  • To provide knowledge about the broadband adoption process
  • To provide guideline to the broadband service providers about the factor which affect the adoption decision to enable them to concentrate on the most significant factor for product development and service quality.
  • To develop awareness in the potential users to consider the most significant factors in the selection of broadband services.
  • To help the society at large for the effective broadband infrastructure development.

Aim of the Study

The aim of this exploratory research is to provide the basis for future research in this area by providing initial understanding of broadband adoption decision.  This study will explore the behavioral, cognitive, social and financial factors with respect to the broadband services adoption. The results of this research will provide understanding about the decision process and it will help to the broadband service providers in product development and improvement. This study will enhance the knowledge about the decision making process of the broadband users.

Literature Review

When there is a dispute of accepting a new technology there is an individual whose behavior is so much important while accepting a new technology the theory of planned behavior Ajzen and Madden (1986) is used to explain the individual’s behaviors and also the theory of reasoned action Fishbein and Ajzen (1975) is used for the same purpose.

There are several reviews of behavioral models existing but Jackson T. (2005) analysis of customer behavior is the most inclusive and reachable and the groundwork for many modern reviews. His report is an easy to get to the main drivers of behavior and hypothetical models so as to explain them.

The theory of planned behavior, technology acceptance model Davis (1989) which also usually supported the technology adoption and the flow of advance perspective serve as an excellent starting points in inspecting individual-level factors affecting the adoption of technology.

Furthermore, it is anticipated that the addition, adaption and amalgamation of strong theories will help to shed light on the deep structures of broadband adoption and present significant information to both the company that compete in the Internet market of broadband and the authorities that work at broadband diffusion.

In elaborating the rate of adoption of technology, Rogers (1983) acknowledged five characteristics of an innovation: its relative advantage, compatibility, complexity, trial ability and observe ability. This study also identified five characteristics which are perceived usefulness, perceived ease of use, perceived resources, trial ability and compatibility.

Rogers (1983) also defines the compatibility as it is the extent to which an innovation is supposed as reliable with the accessible values.

It’s important to think that compatibility itself does not show the way to hi-tech innovation (Oh, Ahn, Kim 2003).

Perceived ease of use is the level to which the consumer anticipates the target innovative technology and perceived usefulness is the consumer particular prospect that using a precise technology that will enhance the efficiency of the consumer Davis (1989).

Perceived usefulness and perceived ease of use arbitrate the possessions of compatibility to attitude as the technology acceptance model sustain.

This study inspects individual-level issues influence the acceptance of broadband admittance technologies and the interaction between those issues.

Data and Methodology

The population of the study consists of everybody living in the area of Wales. The study is not limited to specific groups or sections of the population. The objective of this general study is to generalize the results to all of the U.K. People from all age groups, professions and different educational background have been investigated. The primary data collected from the respondents through the research instrument has been analyzed and interpreted to find out which factors have significant influence on the broadband adoption and usage decision.

A questionnaire was designed to collect data from the target population of the study. The questionnaire includes questions from the different perspective of the study to extract the most useful data. The questions about the perceived ease of use, perceived usefulness, perceived resources, trial ability, comparability and the attitude have been included in the questionnaire along with the certain demographical questions. The demographical questions have been included to assess the profile of the respondents of the study.

Convenient sampling technique is used for collection of data from the respondents of the study. Due to the scale and scope of the study and the time constraints, the data could not be collected using the most scientific and the advanced sampling techniques. Since it is an exploratory research and it is not focused on any one segment of the population, therefore the aforementioned technique is used.

The questionnaire was personally distributed to only those people who agreed to take part in this investigation. Therefore, the response rate in this sense is 100%. Few people refused to respond and the questionnaire was not given to such people.

THE MODEL:

Graphical presentation of the Model

An Analysis of Factors Influencing Adoption of Broadband Services A Case Study of South Wales

Statistical expression of the study:

Statistical expression of the study:

Where:

Attd= Attitude

PUS= Perceived usefulness

PES= Perceived Ease of Use

PRS=Perceived resources

COM= comparability

TRL= Trial Ability

VSB=Visibility

= alpha which represents constant of the equation

=Beta which represents parameters

= Error term

Using the linear regression equation, the magnitude and the nature of the relationship has been found between the dependent and independent variables.

 Results

Table (1) Some descriptive statistics of the study data ranked by relative importance of items mean with in each sub-scale

ItemsStrongly disagreeDisagreeSlightly Disagree agreeSlightly AgreeAgreeStrongly AgreeTotalMeanStd. DRanke
x1-Using broadband Internet is a good idea5102030851002504.92001.232751
2.04.08.012.034.040.0100.0
x3-Using broadband Internet is beneficial461916032292504.1880.936032
1.62.47.664.012.811.6100.0
x2-Using broadband Internet is pleasant experience10512539102232503.96401.434903
4.020.410.015.640.89.2100.0
 Attitude4.35731.12509
x8-Using broadband Internet  can make work easier7135683912504.95201.024641
2.85.222.433.236.4100.0
x7-Using broadband Internet  can enhance work effectiveness2148666372054.5951.894962
1.06.842.032.218.0100.0
x4-Using broadband Internet enables me to finish my work more quickly19269071532504.52001.072473
.43.610.436.028.421.2100.0
 

x6-Using broadband Internet  generally increases productivity

 

3

 

13

 

50

 

102

 

77

 

5

 

250

 

4.0080

 

.95266

 

4

1.25.220.040.830.82.0100.0
x5-Using broadband Internet  can improve my work performance2029306889142503.87601.369725
8.011.612.027.235.65.6100.0
x9-Using broadband Internet  is useful to my work1520459560152503.84001.224916
6.08.018.038.024.06.0100.0
 Perceived usefulness4.32721.04842
x14-It is easy  for me to become skillful in using  broadband Internet63310060512504.44401.100781
2.413.240.024.020.4100.0
x12-I clearly understand how to use broadband Internet183211140502424.36781.078402
.43.313.245.916.520.7100.0
x11-It is easy to perform work using broadband Internet329468639472504.08001.290063
1.211.618.434.415.618.8100.0
x15-I find broadband Internet easy to use2321309036502503.98001.495514
9.28.412.036.014.420.0100.0
x10-Learning to operate broadband Internet is easy for me132555995082503.68801.150635
5.210.022.039.620.03.2100.0
x13-I find broadband Internet inflexible to interact with colleagues and family members.25109285020182502.94001.417196
10.043.611.220.08.07.2100.0
 Perceived ease of use3.92531.21302
x18-I have access to the resources I would need for using broadband Internet1017277470522504.33201.322411
4.06.810.829.628.020.8100.0
x17-I would be able to use broadband Internet if I wanted to715419153432504.18801.235622
2.86.016.436.421.217.2100.0
x16-I have the resources, opportunities and knowledge for using  broadband Internet76518088182504.16001.082173
2.82.420.432.035.27.2100.0
x19-There no barriers to my using broadband Internet2944504849302503.53601.555114
11.617.620.019.219.612.0100.0
 Perceived resources4.05401.26451
x20-Using  broadband Internet is  Compatible with most aspects of my work2639445051402503.72401.585521
10.415.617.620.020.416.0100.0
x22-Using  broadband Interne fits well  with the way I like to work2150395545402503.69201.564262
8.420.015.622.018.016.0100.0
x21-Using  broadband Interne fits my work style2241486040392503.68801.528403
8.816.419.224.016.015.6100.0
 Compatibility3.70131.55162
x27-Before deciding on whether or not to use broadband I know a place I would be able to try it out3050495041302503.44801.557241
12.020.019.620.016.412.0100.0
x24-Before deciding on whether or not to use broadband I would be  able to try it out properly30120603642502.4560.935722
12.048.024.014.41.6100.0
x26-Before deciding on whether or not to use broadband I would be able to try its various uses6699852502.0760.775003
26.439.634.0100.0
x23-Before deciding on whether or not to use broadband I would be able to use it on a trial basis1164151422502.07601.157404
46.416.420.416.8100.0
x25- Before deciding on whether or not to use broadband I would be permitted to use long enough to see what it can do130634892501.7440.890865
52.025.219.23.6100.0
 Trial ability2.36001.01681
x29-Before deciding on whether or not to use broadband Internet I have seen many people Internet around1434555250452503.90001.478771
5.613.622.020.820.018.0100.0
x28-Before deciding on whether or not to use broadband Internet I see using broadband1150494841512503.84401.535282
4.420.019.619.216.420.4100.0
x31-Before deciding on whether or not to use broadband Internet I have seen using  broadband Internet around2237427030492503.78401.555323
8.814.816.828.012.019.6100.0
x30-Before deciding on whether or not to use broadband Internet I see many people using  broadband Internet around3722416040502503.77601.664004
14.88.816.424.016.020.0100.0
 Visibility3.82601.54232
Total of the Questionnaire3.77371.20365

 

Results and Discussions

Descriptive Statistics

The total sample size is 250 respondents. The majority of our sample consists of the students studying in various institutions. The second largest group is professionals which are 25% of total sample. The businessmen are 23% of sample and the smallest group is housewives. The composition of the sample shows that this is a balanced sample because the majority of the broadband users are students followed by professionals and businessmen.

Out of 250 respondents majority is male which represents 62% of the total sample. Female respondents are 38%.

The summary data given below in the table indicates the normal data. The dispersion is not high and is within the acceptable range. The maximum standard deviation is found in the last variable which is visibility. The high value of the standard deviation indicates that people have different views about the visibility as the determinant of the broadband usage decision. All measures of central tendency indicate a positive attitude and strong yes to many of the questions under different variables.

AttitudePerceived usefulnessPerceived ease of usePerceived resourcesCompatibilityTrial abilityVisibility
Mean4.35734.32723.92534.05403.70132.36003.8260
Std. Error of Mean.07116.06631.07672.07997.09813.06431.09754
Median4.5365a4.4148a3.7500a3.9955a3.8639a2.0714a3.9279a
Mode4.33b5.403.673.754.001.40b4.00b
Std. Deviation1.125091.048421.213021.264511.551621.016811.54232
Range5.004.675.005.005.003.405.00
Minimum1.001.331.001.001.001.001.00
Maximum6.006.006.006.006.004.406.00

Redression Analysis

The six independent variables are regressed with the dependent variable which is “Attitude” towards the broadband usage. After the extensive literature review, these six variables have been selected to test the impact of these factors on the broadband usage intentions.

Regression Statistics
R.990
R Square.981
Adjusted R Square.980
Std. Error of the Estimate.15783

It is found that the set of these six variables explains 98% variation in independent variables. The value of adjusted R Square i.e. 98% also indicates that the model is best fit. Less than 2% variation in the dependent variable is due to other factors which have not been included in the model. As per the summary statistics the model is best fit model and clear indication that the selected variables are relevant factors. In other words, it can be said that the selected factors affect the broadband usage decisions to great extent.

The results show that all factors except one factor have positive relationship with the attitude to use broadband services. The results indicate that Trial ability has negative relationship (β = -0.048) with the attitude but the relationship is not statistically significant as the t Stat is 0.387.

Perceived Usefulness has positive and statistically significant relationship as indicated by the value of beta (β=0.239) and t Statistics 1.516 significant at 85% confidence interval. Perceived Ease of use has positive but statistically insignificant relationship with the dependent variable. This statistical finding indicates the perceived ease of use is not a relevant variable to the broadband usage decisions. Perceived resources have positive and very significant relationship with the broadband usage. Comparability and visibility both have positive and statistically significant relationship with the independent variables.

 CoefficientsStandard Errort StatP-valueLower 95%Upper 95%
Intercept.195.0772.536.012.044.346
PUS.317.0555.750.000.208.425
PES.076.0561.354.177-.034-.185
PRS.837.05814.455.000.723.951
COM-.018-.046-.403-.687-.109-.072
TRL-.309-.049-6.319-.000-.405--.213-
VSB-.026-.046-.575-.566-.116-.064

Conclusion and Recommendations

On the basis of the findings, it is concluded that perceived usefulness, comparability and visibility are most significant factors for broadband usage decisions. Perceived ease of use and trial ability is not significant factor in such decision. Our results are consistent with the past research and theory. Since the technology has great influence over the lives of people especially in the developed countries like U.K., people are familiar with the broadband. So ease of use and trial ability is not relevant in broadband usage decisions. The people don’t think that broadband is difficult to use therefore they are also not interested in trying the service before they start using this. Therefore, it is concluded that these two factors are not important in Wales. May be these two factors are important or have some relevance in those societies where broadband or other technologies are new phenomenon or where the computer literacy or the general literacy rate is not very high. At this point of time it cannot be said with certainty. If more research is done with reference to developing countries then on the basis of the results of those studies something can be said with sufficient certainty.

References
  • Ajzen, I. and Madden, T.J. (1986) Prediction of goal directed behavior: attitudes, intentions and perceived behavioral control. Journal of Experimental Social Psychology, 22, 453–74
  • Davis, F.D. (1989) Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–40.
  • Fishbein, M. and Ajzen, I. (1975) Belief, Attitude, Intentions and Behavior: An Introduction to Theory and Research, Addison-Wesley, Boston.
  • Jackson, T. (2005) ‘Motivating sustainable consumption: a review of evidence on consumer behaviour and behavioural change’. A report to the Sustainable Development Research Network. January 2005.
  • Oh S., Ahn J., Kim B. (2003) Journal of Information Technology 18, 267–280: Adoption of broadband Internet in Korea: the role of experience in building attitudes
  • Rogers, E.M. (1983) Diffusion of Innovation, Free Press, New York.

APPENDIX

Questionnaire

Dear Respondent!

We are doing our M.S Research project at the University of Glamorgan. Please take few minutes and fill this questionnaire, we assure you that the information provided by you will be used only for academic purpose. Your cooperation in this respect will be highly appreciated.

Demographics: 

Age: ________________________ Sex: ____________________________

Education: ___________________ Profession: ________________________

(1) Strongly disagree (2) Disagree (3) Slightly Disagree (4) Slightly Agree (5) Agree (6) Strongly Agree

Attitude:123456
Using broadband Internet is a good idea
Using broadband internet is a pleasant experience
Using broadband internet is beneficial

 

Perceived usefulness123456
Using broadband Internet enables me to finish my work more quickly
Using broadband Internet can improve my work performance
Using broadband Internet generally increases productivity
Using broadband Internet can enhance work effectiveness
Using broadband Internet can make work easier
Using broadband Internet is useful to my work

 

Perceived ease of use123456
Learning to operate broadband Internet is easy for me
It is easy to perform work using broadband Internet
I clearly understand how to use broadband Internet
I find broadband Internet inflexible to interact with colleagues and family members.
It is easy for me to become skillful in using broadband Internet
I find broadband Internet easy to use

 

Perceived resources123456
I have the resources, opportunities and knowledge for using broadband Internet
I would be able to use broadband Internet if I wanted to
I have access to the resources I would need for using broadband Internet
There are no barriers to my using broadband Internet

 

Compatibility123456
Using broadband Internet is compatible with most aspects of my work
Using broadband Internet fits my work style
Using broadband Internet fits well with the way I like to work

 

Trial ability123456
Before deciding on whether or not to use broadband I would be able to use it on a trial basis.
Before deciding on whether or not to use broadband Internet I would be able to try it out properly
Before deciding on whether or not to use broadband Internet I would be permitted to use it long enough to see what it can do
Before deciding on whether or not to use broadband Internet I would be able to try its various uses
Before deciding on whether or not to use broadband Internet I know a place where I would be able to try it out.

 

Visibility123456
Before deciding on whether or not to use broadband Internet I see using broadband
Before deciding on whether or not to use broadband Internet I have seen many people Internet around
Before deciding on whether or not to use broadband Internet I see many people using broadband Internet around
Before deciding on whether or not to use broadband Internet I have seen using broadband Internet around.

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