Marshall School of Business Hong Kong Mobility Roundtable The Global Acceptance of Technology (GAT) Model and Demand for Mobile Data Services Elizabeth Fife, Ph.D. & Francis Pereira, Ph.D. June 2-3, 2005 Gaps in Current Technology Diffusion Models Don’t account for following 3 situations: • Different adoption rates of innovations across national markets • Different adoption rates in the same ethnic groups across different national markets • Different adoption rates of innovations within the same age groups across different national markets Global Acceptance of Technology Model: GAT Dimensions for Analyzing Adoption of mobile service/application • Perceived Relative Value • Usability/Compatibility Drivers • Cultural Socialization Drivers: social and organizational norms • Technology Adoption Catalyst Global Acceptance of Technology Model: GAT Diffusion of Innovation UTUAT GAT TAM Different adoption rates across national markets not specifically but can be assumed under type of innovation decision not specifically, but can be assumed under facilitating conditions YES NO Different adoption rates of innovations in the same ethnic groups across national markets not specifically but can be assumed under comm. channels or type of innovation or social system not specifically but can be assumed under social system or comm. channels NO YES NO not specifically, but can be assumed under social influence YES NO Different adoption rates within the same age groups across different national markets VERY GENERAL NEW APPROACH VERY SPECIFIC WMIS U.S. Survey Statistics 1,010 Respondents Education Income Other 4% Under $24K 16% Above $150K 16% Masters/Ph.D 22% Jr. High/High School 17% $101K-$150K 15% Ethnicity Hispanic 18% $51K-100K 31% Other 6% $20K-$50K 22% Bachelors 29% Other 7% Some College 28% Student 27% Caucasian 48% Professional 66% Profession African American 11% Asian 17% 51% Male 49% Female Mobile Data Services Frequency of downloading mobile data services 350 never monthly 300 daily 250 200 150 100 50 0 basic ringtone polyphonic ringtone voice mail message game greeting graphics adult content Mobile Data Service Revenues as % of total revenue: 2003 (3rd qtr.) 25 20 20 15 10 10 10 5 2.9 2.5 2 0 Japan Korea Australia Taiwan Hong Kong U.S. Perceived Relative Value 120 PC's per 100 100 Cell as % of Telephone Subscription Cell per 100 inhabitants 80 60 40 20 0 Hong Kong Japan Korea Taiwan Finland U. K. U.S.A. Perceived Relative Value # of Text Messages in total sent per day – U.S. 60 50 40 30 20 10 0 none 1 to 5 6 to 10 11 to 15 16 to 20 Perceived Relative Value Amount of Time per day spent using MDS (%) 60 50 40 30 20 10 0 1-9 minutes 10-29 minutes 30 min. to 1 hr. 1 to 2 hours more than 2 hours Perceived Relative Value Likelihood that MDS will be used if following were true 70 Somewhat/Very Likely 60 50 40 30 20 10 0 Services more fun Faster connection speeds Someone showed you how to use them Services more useful Services easier to use Lower prices for services Perceived Relative Value Extent to Which MDS has supported the following (by age) Stayed More Informed 50 to 65 Yrs. 35 to 49 Yrs. Reduced Stress in Life 25 to 34 Yrs. 18 to 24 Yrs Increased Productivity Increased Satisfaction at Work 0 10 20 30 40 50 60 Percentage of Respondents in Each Age Group (Likely or Very Likely) 70 Perceived Relative Value QOL and Social Life (by age) 50 to 65 yrs Has brought family life into working environment 35 to 49 yrs 25 to 34 yrs 18 to 24 yrs Has made family activities stressful Below 18 Has increased amount of time spent communicating w/family Has made it more convenient to stay in contact w/family Has made it easier to organize time w/family 0 10 20 30 40 50 Percentage in Each Age Group Agreeing or Completely Agreeing 60 Perceived Relative Value QOL and Social Life (by age) 50 to 65 yrs 35 to 49 yrs 25 to 34 yrs 18 to 24 yrs Below 18 Has made relationships w/friends closer Has increased time spent communicating w/friends Has made it more convenient to stay in contact w/friends Has made it easier to organize time w/friends 0 10 20 30 40 50 60 70 80 Percentage in Each Age Group Agreeing or Completely Agreeing 90 Perceived Relative Value Reasons for using mobile data services - 2004 90 80 70 60 50 40 FUN USEFUL 30 20 10 0 US JAPAN KOREA Usability-Compatibility Motivations to Replace Handset (U.S. :2004) better performance enhanced text messaging very important not at all important music downloads bigger screen easier to use faster access to mobile Internet better multiuse device better games functionality new communications features more modern design 0 10 20 30 40 Percentage of respondents 50 60 70 User Compatibility Drivers Motivations to Replace Handset (U.S.:2003) enhanced text messaging music downloads (full song) capabilities better quality ringtones possible very important smaller device bigger screen not at all important easier to use faster access to mobile Internet better performance better multiuse device better games functionality new communications features (picture mail video phone) more modern design 0 20 40 60 80 100 120 140 160 Usability-Compatibility Drivers Important qualities for mobile data services used by my friends very important fun to use not important easy to personalize supported with good customer service secure useful easy to use low priced 0 20 40 60 80 100 120 140 160 180 200 Usability - Compatibility Drivers Hong Kong – Where Mobile Users Most Frequently Access Mobile Data Services by Age of User 35 to 49 Yrs. In Public 25 to 34 Yrs. 18 to 24 Yrs Below 18 In Transit At Work At Home 0 5 10 15 20 25 Percentage of Respondents on Each Age Group (Often or Vey Often) 30 35 Usability - Compatibility Drivers U.S. – Where Mobile Users Most Frequently Access Mobile Data Services by Age of User Age Above 65 Yrs Age 50 to 65 Yrs. Age 35 to 49 Yrs. Age 25 to 34 Yrs. Age 18 to 24 Yrs Age Below 18 In Public In Transit At Work At Home 0 10 20 30 40 50 Percentage of Respondents in Each Age Group 60 70 Usability - Compatibility Drivers U.S. – Where Mobile Users Most Frequently Access Mobile Data Services by Age of User In Public In Transit At a Friends 50 to 65 Yrs. 35 to 49 Yrs. 25 to 34 Yrs. 18 to 24 Yrs Below 18 At Work At Home 0 10 20 30 40 50 60 Percentage of Respondents in Each Age Group (Likely or Very Likely) 70 Usability - Compatibility Drivers Sources for learning about mobile services 30 25 2003 2004 20 15 10 5 0 friends Internet wireless phone store television TV events/contests radio movies Usability -Compatibility Drivers Sources for learning about mobile services (by age) Internet 50 Wireless Phone Store 45 40 Friends 35 30 25 20 15 10 5 0 Below 18 18 to 24 Yrs 25 to 34 Yrs. 35 to 49 Yrs. 50 to 65 Yrs. Above 65 Yrs Cultural Socialization Adoption by Different Age Groups Across Markets U.S. - Reasons to adopt mobile services (by age) They should support my work-related activities Above 65 Yrs. 50 to 65 Yrs. 35 to 49 Yrs. 25 to 34 Yrs. They should help me kill time 18 to 24 Yrs Below 18 0 10 20 30 40 50 Percentage in Each Age Group Responding Important or Vey Important 60 Cultural Socialization Adoption by Different Age Groups Across Markets Hong Kong – Reasons to adopt mobile services (by age) 50 to 65 Yrs. 35 to 49 Yrs. 25 to 34 Yrs. 18 to 24 Yrs Below 18 Enhances my work life in absence of PC Enhances my leisure in my spare time 0 5 10 15 20 25 30 Percentage of Respondents in each age group 35 40 Cultural/Socialization Drivers U.S. – work-personal life balance (by age) Exlusively Personal Mainly Personal Above 65 Yrs 50/50 Mainly for Work Exclusively for Work 50 to 65 Yrs. 35 to 49 Yrs. 25 to 34 Yrs. 18 to 24 Yrs Below 18 0 5 10 15 20 25 30 35 Percentage of Respondents in Each Age Group 40 45 50 Cultural/Socialization Drivers Hong Kong – work-personal life balance (by age) 50 to 65 Yrs. Mainly Work 35 to 49 Yrs. 50/50 Mainly Personal 25 to 34 Yrs. Exclusively Personal 18 to 24 Yrs Below 18 0 10 20 30 40 50 60 Percentage of Respondents in Each Age Group 70 80 Cultural/Socialization Drivers Korea – work-personal life balance (by age) Exlusively Personal 50 to 65 Yrs. Mainly Personal 50/50 Mainly Business Business Use 35 to 49 Yrs. 25 to 34 Yrs. 18 to 24 Yrs Below 18 0 10 20 30 40 50 Percentage of Respondents in Each Age Group 60 70 Cultural Socialization Adoption by Different Ethnic Groups Within Same Market U.S. – Work/personal use balance (ethnic group) Exlusively Personal Mainly Personal 50/50 Middle-Eastern Hispanic African American White Caucasian Asian-Pacific Mainly for Work Exclusively for Work 0 5 10 15 20 25 30 35 40 Percentage of Respondents in Each Ethnic Group 45 50 Cultural/Socialization Drivers Important qualities for mobile data services 60 50 Family Relationships are Supported Hong Kong 40 Family Relationships are Supported U.S. 30 20 10 0 Strongly Agree Somewhat Agree Cultural/Socialization Driver Important qualities for mobile data services 60 50 Friendships are supported Hong Kong % 40 Friendships are supported U.S. 30 20 10 0 Strongly Agree Somewhat Agree Cultural Socialization Reasons for using mobile data services 200 not important 180 160 very important 140 120 100 80 60 40 20 0 accessible anytime & anywhere useful give control over life informative fun help financially support personal relationships improve social status Conclusion Preliminary Assessment Using GAT GAT Model United States Hong Kong Perceived Relative Value UsabilityCompatibility Drivers Cultural Socialization Technology Adoption Catalyst HIGH Japan S. Korea work work work work enhancement enhancement enhancement enhancement Ease of Use Important Focus on Practicality No Catalyst Focus on Family Medium Strong Strong Government government push push Low Thank You fife@marshall.usc.edu pereira@marshall.usc.edu Center for Telecom Management Marshall School of Business University of Southern California www.marshall.usc.edu/ctm