JÖ N KÖ P IN G U N IVERSITY
Purpose: The purpose of this study is to identify and analyze the relationship between
consumers' resistance and different factors from innovation and consumers' characteristics.
Thereafter, important factors are identified that mainly affect/determine consumers'
resistance to smartphones. Moreover, the inter-relationship (correlation) among the selected
factors is found out, to know the affects of each factor on other factors.
Method: Following abductive approach, confirmatory factor analysis has been done on
pre-test questionnaires to test, improve, and verify the constructs (variables/questions) for
measuring the hypothesized factors. A theoretical model has been proposed from the
hypotheses; and Structural Equation Modeling has been applied, where results are estimated
through Partial Least Square and AMOS approaches, using a sample of 330 respondents
from Sweden. SmartPLS software has been used to estimate results, thereafter, AMOS has
been used to check and verify the results. Almost same results have been derived from both
approaches, while results from PLS are found as more satisfactory.
Conclusions: Five out of eight hypotheses have been supported by our empirical data,
where H1 i.e. relative advantage, H3 i.e. complexity, and H4 i.e. perceived risk, are from
innovation characteristics, while H6 i.e. motivation, and H7 i.e. „favorable attitude towards
existing products‟ are from consumers' characteristics. Motivation, Complexity, Relative
Advantage, and Perceived Risk are found as important factors (as per their order) that
affect/determine consumers' resistance to smartphones. Relative Advantage & Motivation
are found as positively correlated, and Perceived Risk & Complexity are found as positively
correlated. Negative correlation has been found between Perceived Risk and relative
advantage. Similarly, negative correlation has been found between motivation and
complexity. The proposed model of consumers resistance to smartphones shows an
acceptable goodness of fit, where 65% (R-square value) of variation in consumers
resistance is caused/explained by the hypothesized factors.
i
Acknowledgement
Thesis writing is always a great source of learning and experiences, which cannot be done
only with one owns efforts, but also dependent on tremendous help from supervisor,
faculty members, friends, and family. First, we would like to express our deepest gratitude
to our supervisor Desalegn Abraha, who provided us guidance, critical evaluation and
constructive feedback throughout the process of thesis writing. Our sincere thanks go to
Andreas Stephen (faculty member), who discussed and explained different statistical
methods/tools to achieve the objectives of this study.
We are thankful to all those friends who helped us improve, distribute, and respond to the
questionnaires. Our colleagues within the seminar group remained a good source of critical
feedback and helpful ideas/suggestions that made this work interesting and also
challenging for us. Last but not the least; we would like to thanks our family members for
their patience, encouragement, and support to complete this study.
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Table of Contents
1 Introduction ............................................................................... 6
1.1 Background ............................................................................................6
1.2 Problem discussion ................................................................................7
1.3 Research questions .............................................................................. 10
1.4 Purpose ................................................................................................ 10
a. Hypothesis ............................................................................................ 10
b. Regression coefficients and Correlation ............................................... 11
1.5 Delimitations ......................................................................................... 11
2 Frame of reference .................................................................. 12
2.1 Innovation ............................................................................................. 12
2.1.1 Technological Innovation ...................................................................... 12
2.1.2 Types of Innovation .............................................................................. 12
2.2 Smartphone .......................................................................................... 13
2.3 Innovation Resistance .......................................................................... 13
2.4 Sheth Model ......................................................................................... 15
2.5 Ram’s Model ........................................................................................ 16
2.6 Yu and Lee Model ................................................................................ 17
2.7 Technological Acceptance Model (TAM) .............................................. 17
2.8 Related studies ..................................................................................... 18
2.9 Factors Affecting Consumers’ Resistance ............................................ 19
2.9.1 Innovation Characteristics Factors ....................................................... 20
2.9.2 Consumers Characteristics Factors...................................................... 23
2.10 Hypotheses formulation ........................................................................ 25
2.10.1 Relative Advantage .......................................................................... 26
2.10.2 Compatibility ..................................................................................... 26
2.10.3 Complexity ....................................................................................... 26
2.10.4 Perceived Risk ................................................................................. 26
2.10.5 Expectation for better products ........................................................ 26
2.10.6 Motivation ......................................................................................... 27
2.10.7 Attitude towards existing products .................................................... 27
2.10.8 Self-Efficacy ..................................................................................... 27
2.11 Theoretical Model of Consumers Resistance to Smartphones ............. 28
3 Method ..................................................................................... 29
3.1 Research Philosophy............................................................................ 29
3.2 Research Approach .............................................................................. 30
3.3 Research Method ................................................................................. 31
3.4 Research Strategy ................................................................................ 31
3.5 Data Collection ..................................................................................... 31
3.6 Sampling .............................................................................................. 32
3.7 Data Analysis and Tools ....................................................................... 33
3.8 Statistical Methods ............................................................................... 34
3.8.1 Factor analysis ..................................................................................... 34
3.8.2 Hypothesis testing ................................................................................ 35
3.9 Trustworthiness of the Research .......................................................... 36
3.9.1 Validity & Reliability .............................................................................. 36
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3.9.2 Source of Empirical data ...................................................................... 37
3.9.3 Approach followed to derive results ...................................................... 37
4 Empirical Findings .................................................................. 38
4.1 Preliminary Analysis ............................................................................. 38
4.1.1 Confirmatory Factor Analysis ............................................................... 38
4.1.2 Consistency (Reliability) Analysis ......................................................... 40
4.1.3 Variables Operationalization & Designing questionnaire ...................... 41
4.2 Descriptive Findings ............................................................................. 42
5 Analysis ................................................................................... 43
5.1 Testing Hypotheses .............................................................................. 43
5.1.1 Partial Least Square ............................................................................. 43
5.1.2 AMOS ................................................................................................... 44
5.1.3 Results Discussion ............................................................................... 45
5.1.4 Regression Equation ............................................................................ 48
5.2 Factors Inter-relationship (Correlation) ................................................. 48
6 Conclusion .............................................................................. 50
6.1 Suggestions for further research .......................................................... 51
7 References............................................................................... 52
8 Appendix.................................................................................. 60
8.1 Pre-test Questionnaire.......................................................................... 60
8.2 Graphical Representation of factors and measuring variables ............. 60
8.2.1 Relative Advantage .............................................................................. 60
8.2.2 Compatibility ......................................................................................... 60
8.2.3 Complexity ............................................................................................ 61
8.2.4 Perceived Risk ..................................................................................... 61
8.2.5 Expectation for better Products ............................................................ 62
8.2.6 Motivation ............................................................................................. 62
8.2.7 Attitude towards Existing Products ....................................................... 63
8.2.8 Self-Efficacy ......................................................................................... 63
8.2.9 Consumer Resistance .......................................................................... 64
8.3 Factor Loadings from the final empirical data ....................................... 65
8.4 Appendix 2: Final Questionnaire .......................................................... 65
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List of Figures & Tables
Notes
The terms, Innovation resistance and consumers' resistance have been used
interchangeably. Similarly the terms like; consumers, respondents, and users are used
interchangeably.
The term “consumers” has been used for potential consumers of Smartphones.
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1 Introduction
This chapter aims to introduce the reader to the background of the study topic, the problem area and a brief
discussion of related studies. The research questions are formulated, followed by the purpose, hypothesis, and
delimitation of this study.
1.1 Background
The trend in mobile phone innovations is going toward a mobile device integrating all
the consumer electronic products, like MP3, Camera, Internet (Computer), GPS, and
even TV. A new buzzword “SMARTPHONE” (marketing-friendly tag) represent this
well known PDA-Cell phone combination (PDA-Phone combo) with manifold
functions, representing a radical innovation in mobile phone industry (Park & Chen,
2007). Smartphones are excellent communication tools, providing users with “smart”
functionalities of both PDA (Personal Digital Assistants) & cell phones (Nanda et al.,
2008). These devices have become an important part of users' life, as they are not only
communication tools but also expressions of their lifestyle (Castells, 2006) providing
impressive usable interface (Monk et al. 2002). Smartphones are more powerful, with
increasing processor capability and storage space, and enhanced communication &
multimedia functions (Nguyen et al., 2008).
Experts in mobile industry expect that smart-phones are going to be dominant in mobile
phone market. However, Smartphone industry is facing a different reality, and the
statistics of current market show very less percentage of smart-phone users against
traditional/old mobile phone users. According to Gartner, proportion of Smartphone in
mobile phone market was at 12 per cent in the fourth quarter of 2008, from 11 per cent
in the fourth quarter of 2007. Research companies, who expected explosive growth of
Smartphone, are changing their expectations. In March 2009, Gartner said that increase
in Smartphone sales started to slow down (Gartner, 2009).
The general perception is that high price is the main reason for Smartphones' low
market shares (Martin, 2007). However, there is continuous downfall in the prices of
Smartphones, and most are available for 200USD (CNET, 2009) which is almost equal
to the price of normal mobile phone. Only 1% increase in smart phone market share
from 2007 to 2008 and considerable price decrease shows that price remained a least
important factor inhibiting the adoption. Smartphone manufacturers may not increase
the market shares by simply reducing the prices, as price itself cannot be the main
reason for its low market shares.
This situation leads us to another important and often ignored perspective of innovation
challenges, i.e. consumers‟ resistance. As Smartphones represent “radical innovation”
which face considerably more consumers' resistance than “incremental innovation”
(Garcia et al., 2007, Heiskanen et al., 2007). Consumer (or end user) adoption and
purchase decision make a significant difference in the success of innovative product, so
consumers' resistance is one of the important factors in the success of innovation. It can
certainly inhibit and/or delay the diffusion of an innovation and thus has important
implications for the management of firms (Bradley & Stewart, 2002). Consumers, who
resist innovation, are most of the time non-adopters and represent a major part of
consumers. These consumers have strong potential for providing valuable information
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necessary for the development, implementation, and marketing of innovation, and
should be given more attention in research studies (Laukkanen et al., 2008).
From managerial perspective, studying consumers' resistance to innovation is very
important and useful. Understanding resistance will help firms design/develop new
products so as to ensure market success, and high product failure rate that is prevalent
today, can be reduced. Once firms face consumers‟ resistance to their innovations, they
can analyze the underlying causes of resistance, and better be able to design strategies to
deal with critical & important resisting factors (Ram, 1987). Studying the factors
affecting consumer resistance to Smartphones can provide its manufacturers/marketers
with useful information about these important factors that affects consumers' behavior
towards innovation.
Even though the innovative product may provide extensive benefits and improved
functionalities, researchers have found that consumers often convey less than
enthusiastic response to a number of new products (Gold, 1981; Brod, 1982; Murdock
& Franz, 1983; Blackler & Brown, 1985; Salerno, 1985; O'Connor et al., 1990). This
response is most usually not expected (Heiskanen et al., 2007) and is expressed in a
number of forms, but is usually termed as consumers' resistance (Ellen & Bearden,
1991). Consumers' resistance has been defined as “Innovation resistance is the
resistance offered by consumers to an innovation, either because it poses potential
changes from a satisfactory status quo or because it conflicts with their belief structure”
(Ram & Sheth, 1989, p. 6). The previous research findings imply that firms introducing
new products/innovations are required to take consumers' resistance more seriously
(Heiskanen et al., 2007).
Consumer adoption of innovation depends upon several factors: the most important of
which are specified as consumers’ characteristics (psychological characteristics of
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consumers; how they view the innovativeness with respect to that particular product),
and the innovation characteristics (outcome and effects of innovation) (Dunphy &
Herbig, 1995, W. Robert, 1998). Innovation characteristics research represents the
relationship among the attributes or characteristics of an innovation and the adoption,
use, or implementation of that innovation (Tornatzky & Klein, 1982).
Robert (1998) argues that, there is a need to identify and understand the factors that
seem to most influence customers' resistance to innovative products. It is important to
study the effects of important factors (related to consumers' characteristics and
innovation characteristics) on consumers' resistance that will reveal the importance of
each factor, the intensity of their effect and their relationship. On the other hand,
understanding the key factors of consumers and innovation characteristics that affect
customers' resistance is crucial for firms' project team to improve its chances of making
the right decisions throughout the design and development efforts (W. Robert, 1998).
Ram (1987, 1989) argues that, the reasons for innovation resistance vary across
different consumers, which affects the adoption processes of each consumer. These
variances suggest that firms need to explore the different factors affecting consumer
resistance to innovations in order to minimize the possibility of product failure. Part of
the problem is that consumers may not understand the characteristics of the innovation
in the same way as the manufacturers/marketers (Ellen & Bearden, 1991). It has also
been suggested by researchers that smartphone manufacturers/marketers should
consider the factors influencing user‟s adoption and resistance to mobile devices (Chang
& Chen, 2005).
The concept of innovation resistance was presented by Sheth (1981) as the "less
developed concept" in diffusion research. He researched psychology of innovation
resistance and proposed two psychological constructs which seems very useful in
understanding the psychology of innovation resistance. These psychological constructs
are; habit/behavior towards existing products and perceived risks associated with
innovation adoption. Following this model, Ram (1987) discussed innovation resistance
in more details and proposed a detailed model of innovation resistance, based on this
model; innovation resistance can be viewed as dependent on three sets of factors:
Perceived Innovation Characteristics, Consumer Characteristics, and, Characteristics of
Propagation Mechanisms. Ram‟s model was later modified by Lee and Yu (1994), with
the argument that consumers' resistance is not dependent on propagation mechanism, as
propagation mechanism can only influence innovation diffusion.
Numerous studies have applied factors from consumers' characteristics and innovation
characteristics to assess consumer adoption of innovation, while some studies have
applied these factors to assess consumers' resistance. Below is a brief discussion to
mention these studies.
Different researchers have analyzed the affects of innovation characteristics on
innovation adoption (He et al., 2006, Brown et al., 2003, Tan & Teo, 2000, Holak &
Lehmann, 1990, He & Peter, 2007) and some on innovation resistance (Laukkanen et
al., 2007, Kuisma et al., 2007). He et al. (2006) analyzed innovation characteristics
factors affecting consumers' adoption, and found that compatibility and relative
advantage are positively and complexity is negatively related to consumers‟ adoption of
online e-payment. Laukkanen et al. (2007) researched innovation characteristics (value,
risk, usage, image, etc.) as the barriers that cause innovation resistance to mobile
8
banking among mature consumers. Kuisma et al. (2007) used innovation characteristics
and their impact on consumers to analyze the causes of consumers' resistance to internet
banking.
A number of researchers have applied consumers' characteristics to examine its affects
on innovation adoption (Grabner-Kräuter & Faullant, 2008, Wang et al., 2008, Tan &
Teo, 2000, Karjaluoto et al., 2002), and also on innovation resistance (Cho Seong &
Chang Dae, 2008). These are discussed later in the „frame of reference‟ in detail.
Several studies have been found in the literature, that examine consumers’
characteristics and its effects on consumers‟ behavior toward technological innovation,
using TAM (Technology Acceptance Model; states that, the intention to use a new
technological product is determined by the PU “perceived usefulness” and PEOU
“perceived ease of use”) with addition to other factors like risk, self-efficacy etc. (Fang
et al. 2005, Lu et al. 2003, Constantiou et al. 2006, Koivumaki et al. 2006, Han et al.
2006, Harkke 2006).
The literature review reveals that very less number of studies have investigated factors
affecting consumers resistance, and even fewer studies have empirically examined
consumers‟ perceptions that can make good understanding of innovation resistance
(Park & Chen, 2007). Due to per se different characteristics among consumers, and the
varied affect of innovations characteristics on them, both sides' perspectives and factors
could cause a significant level of variation in each factor's affects on customers'
resistance (He & Peter, 2007). Robert (1998) argues that, there is a need to identify and
understand the factors that seem to most influence customers' resistance to innovative
products. Awareness of the factors that play an important role in the adoption of
innovation is crucial and a smart source of providing useful insights concerning the
improvements of chances for customers' acceptance.
The study of consumers‟ resistance in the case of smartphone, based on innovation and
consumers' characteristics can contribute to the innovation research field, a new breed
of information/knowledge regarding consumers' behavior towards newer mobile
technology. Ultimately, manufacturers/marketers would be in a better position to predict
consumers' reaction/interaction with the new products to minimize/overcome the
resulting consumers‟ resistance.
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1.3 Research questions
a. (i) What are the causal relationships among innovation characteristic factors and
consumers' resistance to smartphones?
(ii) What are the causal relationships among consumers' characteristic factors
and consumers' resistance to smartphones?
b. Which factors of consumers' and innovation characteristics mainly
affect/determine consumers' resistance to Smart phones?
c. What is the inter-relationship among the innovation & consumers characteristics
factors?
1.4 Purpose
The purpose of this study is to identify and analyze the relationship between consumers'
resistance and different factors from innovation and consumers' characteristics.
Thereafter, important factors are identified which mainly affect/determine consumers'
resistance to smartphones. Moreover, the inter-relationship (correlation) among the
selected factors is found out, to know the affect of each factor on other factors.
a. Hypothesis
To answer the first „research question‟, a theoretical model of consumers' resistance to
smartphones has been proposed and eight hypotheses (each for one factor) are
constructed to find the causal relationships (test the proposed model). This theoretical
model is based on some models (Ram‟s, Yu and Lee Model, & TAM) and empirical
results from different studies (discussed in the frame of reference).
Based on the models and different studies on consumers behavior towards innovation,
we propose that; consumers' resistance to adoption of smartphone is mostly determined
by innovation characteristics; relative advantage, compatibility, perceived risk,
complexity, & expectation for better products, and consumers characteristics;
motivation, attitude towards existing products, & self-efficacy.
Our eight hypotheses are presented as follow:
H1= The lower the Relative Advantage, the higher the consumers' resistance to Smartphones
H2= The lower the Compatibility, the higher the consumers' resistance to Smartphones
H3= The higher the Complexity, the higher the consumers' resistance to Smartphones
H4= The higher the Perceived Risk, the higher the consumers' resistance to Smartphones
H5= The higher the Expectation for Better Smartphones, the higher the consumers' resistance
H6= The lower the motivation, the higher the consumers' resistance to Smartphones
H7= The more favorable/positive consumers' Attitude towards normal mobile phones, the
higher the consumers' resistance to Smartphones
H8= The lower the Self-efficacy, the higher the consumers' resistance to Smartphones
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b. Regression coefficients and Correlation
The second and third „research questions‟ will be answered from the results of
regression coefficients and correlation respectively, and will be performed on the same
empirical data collected for hypotheses testing.
1.5 Delimitations
This study is only based on those smartphones that fall under our definition for
smartphone, and is limited to only young people/consumers (accessible) in Sweden. It is
also limited to the opinions of consumers, as responses from mobile industry
(manufacturers/marketers) have not been collected.
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2 Frame of reference
In this chapter, we have discussed relevant theories and models. These theories and model are used to build a
theoretical framework and propose a model to be applied on our empirical data; that will enable us to test
the hypotheses and fulfill the desired purpose of the study.
2.1 Innovation
An innovation is "an idea, practice, or object that is perceived as new by an individual
or other unit of adoption" (Rogers, 1995, p. 11). An innovation may composed of
advancement in existing features, or establishment of new features to an existing
product/service, or it might be a totally new/innovative product/service introduced in
the (same or new) market (Bagozzi & Kyu-Hyun, 1999).
The above definition made it important to clarify and distinguish between an invention
and innovation. “A discovery/invention that moves from the lab into production, and
adds economic value to the firm (even if only cost savings) is considered an innovation”
(Garcia & Calantone, 2002). An invention cannot get turned into an innovation unless &
until it pass through the manufacturing/production and marketing activities, so and
invention/discovery that does not move towards commercialization remains an
invention (Connor & Colarelli, 1998).
12
higher expenditure and risks (including learning costs and psychological effort) than the
adoption of incremental innovations (Heiskanen et al., 2007).
2.2 Smartphone
While looking for the definition of smartphones, we realized that there is no agreed-
upon definition of Smartphone. Even, the definition of smart phone has changed over
time (Jo B., 2006). The literature discusses several and somehow controversial
definitions of Smartphone, however some commonalities can be found in the ways it
has been defined.
For this study, we define smartphones as a device that provides cell phone, E-
Mail/Internet, PDA (personal digital assistant) functionality with full keyboard and
relatively big screen. Considering this, we regard the following phones as Smartphones;
the cell phone industry also recognizes these devices as Smartphones (CNET, 2009).
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One aspect of innovation resistance is; resistance due to changes imposed by innovation
(e.g. changes in consumption or product) and is called resistance to change (Gatignon &
Robertson, 1989). Zaltman and Duncan (1977 p. 63) defined this as “any conduct that
serves to maintain the status quo in the face of pressure to alter the status quo”.
Resistance to change is a natural response of a human being to any changes that disturb
the balance of living environment or firms' actions (Watson, 1971; Zaltman & Duncan,
1977). As for innovation resistance, “it is not an innovation per se that people resist but
the changes associated with it” (Ellen et al., 1991; Schein, 1985). This creates the
postulation of pro-change bias, which means that every innovation is excellent and
everyone must implement/adopt it, because success of innovation is inevitable (Dunphy
& Herbig, 1995).
Innovation resistance has been called as one of the important critical success factors for
the adoption of technological innovation (Leonard, 2004), and adoption has been
portrayed as the result of overcoming resistance (Szmigin & Foxall, 1998). In another
research, adoption and resistance are called as the two ends of a continuum of reaction
towards innovation (Lapointe et al., 2002). Ram and Sheth (1989) discovered that, the
causes of innovation resistance stem from one or more of the adoption barriers. These
barriers are usage, value, risk, image, and traditional barriers. The usage barrier comes
when the innovation is not compatible with consumers' existing workflow, practices, or
habits. The value barrier is based on the economic value of an innovation that the
innovation does not offer strong performance-to-price compared to its alternative
products. Risk barrier is the degree of potential risks an innovation may entail.
Traditional barrier generally involve the changes an innovation may cause in daily
routines, also it “a preference for existing, familiar products and behaviors over novel
ones” (Arnould et al. 2004, p.722). The image barrier is associated with the innovations
identity (from its origin) like the product category, brand, or the country of origin (Ram
& Sheth 1989).
Different researchers have found that, even for successful new products, most of the
time consumers respond in less than enthusiastic way (Gold, 1981; Brod, 1982;
Murdock & Franz, 1983; Blackler & Brown, 1985; Salerno, 1985; O'Connor et al.,
1990), this less enthusiasm is often termed as consumers' resistance (Ellen & Bearden,
1991). Consumers‟ resistance plays an important role in the success of innovation, as it
can certainly inhibit or delay the consumer adoption, and has been termed as one of the
major causes for market failure of innovations (e.g. Ram 1987, Ram & Sheth 1989,
Sheth 1981)
Resistance leads consumers response towards three forms, it may take the form of direct
rejection, postponement or opposition (Szmigin & Foxall, 1998, Mirella et al., 2009).
Based on the studies of Mirella et al., (2009) and Szmigin & Foxall (1998), we can
represent the concept of consumers' resistance in the figure as:
Postponement
Rejection
Fig. 2.1: Concept of consumers' resistance (Derived from Mirella
(2009) and Szmigin & Foxall (1998) studies)
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Postponement occurs when consumers delay the adoption of an innovation. It simply
“refers to pushing the adoption decision to future” (Kuisma et al., 2007). Even though
the innovation may be acceptable to them, but usually it is caused by situational factors,
like e.g. waiting for the right time, to become capable, or to make sure the product
works effectively. Postponement may take the form of acceptance or rejection after a
certain time period (Szmigin & Foxall, 1998).
Opposition refers to “protesting the innovation or searching for further information after
the trial” (Kuisma et al., 2007, p. 464). It is a kind of rejection, but the consumer is
willing to test/check the innovation before finally rejecting it. The causes of opposition
vary and can be many, e.g. habit resistance, situational factors, and consumers' cognitive
style might direct them to reject innovations (Mirella et al., 2009). Most importantly, an
opposition might lead the consumers to search for adequate information which can
direct them to acceptance. On the other hand consumers might reject an innovation on
the basis of existing awareness about the innovation when they understand that it is not
suitable for them (Szmigin & Foxall, 1998).
Consumers may directly reject an innovation, which is the most extreme form of
resistance (Mirella et al., 2009). When a mass of consumers reject an innovation,
manufacturers usually change or iterate/modify it appropriately and then re-introduce it
in the market. Rejection may occur if the innovation does not offer any valuable
advantage, is complex or risky, etc (Szmigin & Foxall, 1998). Rejection can be of two
types, passive and active rejection; where passive rejection occur when the innovation is
never really adopted or implemented, and active rejection occur when the innovation
has been considered but later rejected (Woodside Arch & Biemans Wim, 2005).
15
Following this model, Ram (1987) discussed innovation resistance in more details and
proposed a detailed model of innovation resistance.
Consumers’ characteristics (Im et al. 2003) (Szmigin & Foxall, 1998) (Goldsmith &
Hofacker, 1991) and Innovation characteristics (Roger, 1995, Mohr, 2001) (Tornatzky
& Klein, 1982) have been termed as important in Ram‟s model of innovation resistance,
affecting consumers‟ resistance (Yu & Lee 1994, Midgley & Dowling 1993) (Lassar et
al., 2005, Lunsford Dale & Burnett Melissa, 1992).
16
factors have different nature of affect on different products and industries, as there is no
evidence that these factors are all applicable and have the same affects on different
products.
Fig. 2.4: Lee and Yu model of innovation resistance Source: (Lee & Yu, 1994)
17
consumers behavior to innovative technological products (Ellen & Bearden, 1991, Tan
& Teo, 2000).
Yang (2005), Yui Chi et al. (2007), and Amin (2008) applied TAM model to examine
the affect of consumers’ characteristics factors on their attitude towards mobile
commerce, online banking, and mobile phone credit cards respectively. Wang et al.
(2003) applied TAM model and “perceived credibility” factor, to examine consumers‟
characteristics and the subsequent affects on adoption of internet banking. Park and
Chen (2007) applied TAM model with addition to “self-efficacy” to study its affect on
the adoption of smartphone by medical doctors and nurses. Nysveen et al. (2005)
applying TAM model investigated the moderating affects of gender in explaining
intention to use mobile chat services. Roberts and Pick (2004) combines the TAM
model and innovation characteristics, adding the factors of reliability, security, digital
standards, cost, future web connectivity, and technology product suitability; to identify
and analyze the most important factor affecting corporate adoption of mobile devices.
Security risk has been found as critical factor affecting adoption and resistance
behavior.
The TAM model has been criticized by Pijpers et al. (2001) and Yang (2005), as most
of the studies based on this model failed to provide understanding of how consumers'
perceptions of innovative technologies are formed and how these perception can be
modified to increase adoption/acceptance and overcome resistance.
18
The literature review reveals that most of the studies have been done concentrating on
consumer adoption of innovation, but very less attention have been given to their affect
on consumers’ resistance (Gatignon & Robertson, 1985, 1991; Ram, 1987). The
adoption and diffusion theories do not examine the process of consumer resistance to
innovations. Majority of the diffusion studies have only looked at successful
innovations but consumers' resistance might be present even for successful innovations
(Ram, 1989). It has been argued by Ram (1989) and Sheth (1981) that it is much
effective to concentrate on understanding the factors affecting innovation resistance
rather than innovation adoption (Sheth 1981, Ram 1989). In the innovation diffusion
process, resistance usually takes place at a stage earlier to adoption (Ram 1987,
Woodside & Biemans 2005), so the first importance has to be given to identifying and
understanding consumers‟ resistance. Resistance has been called as the other side of the
innovation phenomenon, and it is important to study to concentrate on both sides of the
coin (Kuisma et al., 2007).
In this study we have chosen relative advantage, as a substitute factor for “perceived
usefulness” (PU) and complexity & self-efficacy as substitute factors for “perceived ease
of use” (PEOU) in TAM. These factors have been empirically proved in the literature to
have considerable effect on the two factor PU (perceived usefulness) and PEOU
(perceived ease of use) of TAM (Park & Chen, 2007, Roberts & Pick, 2004) (Venkatesh
& Davis, 2000). Moreover, following Ram (1989) and Yu and Lee (1994) model, the
factors; compatibility, risk, expectation for better products, are chosen from consumer-
dependent category of innovation characteristics. „Motivation’ and ‘attitude towards
existing products’ are the factors chosen from consumers characteristics affecting
innovation resistance.
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2.9.1 Innovation Characteristics Factors
According to Ram (1987), Kelly, and Kranzberg (1978), innovation characteristics can
be divided into two contexts, first is consumer-independent context and second is
consumers-dependent. The factors of consumer-independent context can be expected to
create the same type of resistance across all consumers (Ram, 1987), and is thus out of
the scope of this study. On the other hand, the affects of Consumer-dependent factors
vary across different consumers. Innovation characteristics (consumer-dependent)
factors effect consumers‟ decision making to adopt a new product, these factors are;
relative advantage, compatibility, risk, complexity, and expectations for better products
(inhibitory effect on adoption of other innovations). Understanding these factors and
their affect on consumers' resistance is crucial for increasing the chances of innovation
success (Ram 1987, Yu & lee 1994). Following is the detailed discussion about each
factor.
2.9.1.2 Compatibility
Compatibility is the degree to which prospective consumers believe that the new
product fits with their socio-cultural norms or is consistent with existing values, past
experiences, style, behavior patterns, and needs (Dunphy & Herbig, 1995, Holak &
Lehmann, 1990). It has been regarded as an important component included in attitude
development (Rogers, 1995, Saaksjarvi, 2003) and is of special importance in
technological markets. A general cause expressed by different consumers for resisting
or not adopting new product is "no need" (Zeithaml & Gilly, 1987), even though all
technological innovations usually bring about a number of benefits/advantages for
20
consumers (Roger, 1995). Compatibility (or simply "congruence"), in prior research has
been found as a crucial factor than can predict consumers' adoption and resistance
behavior (Saaksjarvi, 2003).
There are two aspects of innovation compatibility (Tornatzky & Klein, 1982): (1) it may
refer to compatibility with the values or norms of the potential adopters or (2) may
represent congruence with the existing practices of the adopters. The first is a kind of
psychological or cognitive compatibility (e.g. compatibility with what people feel or
think about a technology) while the second is a more practical/operational compatibility
(e.g. compatibility with people practices).
Culture and previous experience with products can determine (to some extent)
consumers' sense of security with innovation (Holak & Lehmann, 1990). It has been
argued by Tornatzky and Klein (1982) that, “no matter the compatibility is
normative/cognitive or practical/operational; from theoretical perspective, the
innovation compatibility to the potential adopter is positively related to adoption and
implementation of the innovation”. This is also supported by Dunphy and Herbig (1995)
and Tan and Teo (2000), who state that compatibility is positively related to the
diffusion rate and negatively related to consumers' resistance.
Compatibility may lead the innovation evaluative process due to its direct affect on
purchase intention and other attributes (Holak & Lehmann, 1990). Research suggests
that compatibility has a large and direct positive effect on purchase intentions; as if an
innovation is perceived compatible, it is most probable that consumers will learn and
get information about the innovation (Holak & Lehmann, 1990). On the other hand, the
adoption rate is affected by the old/existing products, the more compatible the
old/existing products are, the less consumers intentions to adopt new products (Dunphy
& Herbig, 1995) and hence more consumers' resistance.
Although the impact of compatibility on other factors has not been studied empirically
(Saaksjarvi, 2003), but it is expected to positively affect relative advantage and
negatively affect perceived risk (Holak & Lehmann, 1990). For example, if a new
product is perceived as incompatible with consumers' work/life-style, it may not be
possible to recognize all its advantages. Moreover, if a new product is perceived as
compatible with past experience, principles, and life-style, they will be aware of the
previous items and hence much competent to judge the innovation in terms of its
dominance over existing/old products. The risk (especially psychosocial risks)
associated with innovation decreases, if innovation are perceived as more compatible
with one's work/life-style (Holak & Lehmann, 1990).
2.9.1.3 Complexity
Complexity can be defined as “the degree to which the innovation is perceived as
relatively difficult to understand, use or comprehend” (Rogers & Shoemaker, 1971, p.
154). This definition has been followed by some other researchers (Holak & Lehmann,
1990; Dunphy & Herbig, 1995).
21
considerable complexity demand more skills and efforts (to implement and use
innovation) to increase its adoption and decrease the possibility of consumers' resistance
(Cooper & Zmud 1990; Dickerson & Gentry 1983; Tan & Teo 2000).
It is generally believed that innovative products that are less complex, are easily adopted
by consumers (Holak & Lehmann, 1990). There exist a negative relationship between
complexity and relative advantage, as if a product is perceived as complex, it will be
difficult for consumers to try it and hence cannot be utilized for its advantages (Holak &
Lehmann, 1990, W. Robert, 1998). Complexity as a factor of consumers' characteristics
is expected to affect consumers' intention and lead towards adoption through relative
advantage, risk, and also self-efficacy. It has been argued by Holak and Lehman (1990)
that greater risk is associated with innovation which is perceived as more complex, so,
there is a positive relationship between complexity and perceived risk. Complexity
effect consumers' adoption indirectly through perceived risk (Holak & Lehmann, 1990).
Researchers have identified six key dimensions of perceived risk, which are; financial,
performance, physical, time, social, and psychological risks (e.g. Cherry & Fraedrich,
2002; Ram, 1989; Dholakia, 2001).
22
Following are the definitions of the perceived risk dimensions (Jacoby & Kaplan 1972;
Hirunyawipada & Paswan 2006; Dholakia, 2001; Ram, 1989; Kuisma, Laukkanen &
Hiltunen 2007).
a) Financial risk captures the financially negative outcomes for consumers after
they adopt new products. It is also called the fear of economic loss.
b) Performance risk concerns with the belief that the new product / innovation
will not perform as anticipated. It is also called the fear of performance
uncertainty.
c) Physical risk is the perception that products will be physically harmful to
adopters.
d) Time risk relates to the perception that the adoption and the use of the product
will take too much time (see e.g. Roselius 1971).
e) Social risk has to do with the negative responses from consumer‟s social
network. Ram called it “the fear of social ostracism or ridicule”.
f) Psychological risk is the fear of psychological discomfort. The nervousness
arising from the anticipated post-purchase emotions such as frustration,
disappointments, worry, and regret.
From these six kinds of risk, financial, performance and also security risk (security of
important personal information and the product itself) have been found as the most
important types of risk related to smartphone adoption (Richardson, 2003; Roberts &
Pick, 2004).
23
products in driving consumers resistance. Moreover self-efficacy has been added, as it
believed to play a major role in technological innovative products (Ellen et al. 1991,
Compeau & Higgins 1995). One of purposes behind choosing these factors is because
of their easy measurement procedure and intensive use by different researchers (Lee
Matthew et al., 2007, Barczak et al., 1997, Wang et al., 2008, Wang et al., 2003).
2.9.2.1 Motivation
Motivation is defined as “goal-directed arousal” that drives consumers need (MacInnis
& Moorman, 1991). It entails internal processes that provide behavior with power and
direction. Power describe the strength, determination, and concentration of the
concerned behavior, while direction provides a specific purpose to the behavior (Lee
Matthew et al., 2007).
Herzberg at el. (1959) theorized that behavior can be motivated extrinsically and
intrinsically. Based on this, motivation is divided in two types, the extrinsic motivation
and intrinsic motivation which are two kinds of drivers that evoke a specific outcome
behavior. Perceived usefulness and perceived enjoyment are typical examples of
extrinsic and intrinsic motivation respectively, in technology adoption context (Lee
Matthew et al., 2007).
Extrinsic motivation involved performing an activity for achieving other goals i.e. to
gain other valued outcomes rather than the activity itself (Davis, Bagozzi, & Warshaw,
1992) e.g. a decision to use computer for writing a letter (Lee Matthew et al., 2007)
where behavior is driven by its perceived value and expected benefits. Davis et al.
(1992) argue that perceived usefulness (PU) and perceived ease of use (PEOU) are the
two paradigm of extrinsic motivation, and found that if users perceive something
(technology) to be useful and easy to use, it is more probable that they will use it. It has
also been found by Devis et al. (1992) that consumers' perceived usefulness increases
through increase in perceived ease of use. In Technology Acceptance Model (TAM) the
two factors, PU and PEOU are widely applied in research studies on technology
acceptance (Lee Matthew et al., 2007).
Intrinsic motivation involves performing an action for its own sake, as the action is
itself exciting, engaging, entertaining etc. It means the passion to do an activity for the
reward which derives from the enjoyment of the activity itself e.g., expressing
personality and status by using a product. Looking at the perspective of intrinsic
motivation, behavior is provoked from the feelings of pleasure, joy, and fun (Lee
Matthew et al., 2007). It has been empirically proved that both extrinsic (e.g., perceived
usefulness and perceived ease of use) and intrinsic (e.g., perceived enjoyment)
motivators are important to the formation of intention to use (adoption) (Lee Matthew et
al., 2007).
24
attitude toward the products that they are currently using. In such case, consumers will
be unwilling to replace their old and still functional products with innovative products.
In this era, products life cycle is becoming shorter and shorter and competition getting
tougher, new products are coming in the market with much faster pace, and existing
products/technologies often become outdated very quickly and prematurely. Due to
which, plenty of opportunities are available to consumers to abandon their existing
products, and switch to much advanced/improved new products. But, consumers with
strong favorable attitude toward existing products will resist innovative products and
will continue using their existing products until they fail to function (Wang et al., 2008).
It has also been found by researchers that consumers who are not satisfied with the
existing products are more likely to adopt change and go for new products, on the other
hand, consumers who are satisfied with the existing products will keep up using the
same (Karjaluoto et al., 2002).
2.9.2.3 Self-Efficacy
Compeau and Higgins (1995, p. 193) define self-efficacy as “an individual‟s perception
of his or her ability to use a technological innovative product”. Self-efficacy is a
determinant of perceived ease-of-use and the usability of an item (Davis 1996). It is also
defined as, “an individual‟s self-confidence in his or her ability to perform a behavior”
(Bandura 1977, 1982). Self-efficacy refers to the confidence in one‟s ability and
competence to manage and perform the courses of action required to accomplish a
desired outcome (Bandura 1997a, 1982), and initiates from different origins including
performance achievement, previous experience, personal interests, etc. (Bandura,
1997b).
It has been found by some researchers that self-efficacy has the power to foresee
intentions to use a variety of technological innovation (Hill et al., 1986). A consumer
with low self-efficacy will probably select a product which can be handled easily, even
if there are better/advance products available. Ellen et al. (1991) empirically verified
that self-efficacy is also a factor that affects resistance to technological innovations.
Other researchers have also considered consumers' self efficacy as a very important
factor to study resistance and diffusion of innovation (Tan & Teo, 2000).
Self-efficacy is selected as one of the factors in this study as prior studies have revealed
that self-efficacy shows a substantial affect of “consumers' perceptions of his ability to
use the new technological product” on his decision for product adoption (Park & Chen,
2007). It has been argued that, without skill, performance is not achievable; without
self-efficacy, performance may not be endeavored (Compeau & Higgins, 1995).
Consumers' self-efficacy and their perception bring about a causal relationship between
the adoption of technological innovation and consumers' cognitive factors. Across a
wide range of behaviors, self-efficacy has been shown to influence the willingness to act
as well as actual action initiation (Bagozzi & Kyu-Hyun, 1999).
25
eight factors, a positivistic research paradigm was adopted and eight hypotheses have
been constructed.
2.10.2 Compatibility
Based on the definition of compatibility in innovation perspective, smartphones
compatibility is checked with consumers' needs and life/work style. Following the past
research on compatibility (Saaksjarvi, 2003, Dunphy & Herbig, 1995, Agarwal &
Prasad, 1997, Holak & Lehmann, 1990), we hypothesize compatibility to have negative
effect on consumers' resistance to smartphones.
Hypothesis 2
The lower the Compatibility, the higher the consumers' resistance to Smartphones
2.10.3 Complexity
Most of the researchers have found complexity to have negative effect on consumers'
adoption and positive effect on resistance (Dunphy & Herbig, 1995, Tan & Teo, 2000,
Holak & Lehmann, 1990) so we hypothesize complexity to have positive effect on
consumers' resistance to smartphone.
Hypothesis 3
The higher the Complexity, the higher the consumers' resistance to Smartphones
26
its adoption and expect much better smartphones. It is measured by consumers'
expectation for “more convenient & useful phones” and with “lower prices”. Based on
some studies (Kim, 2005, Lee & Yu, 1994) we hypothesize „expectations‟ to have
positive effect on consumers' resistance to smartphone.
Hypothesis 5
The higher the Expectation for Better Smartphones, the higher the consumers' resistance
2.10.6 Motivation
Motivation drives consumers' needs and intentions to adopt innovation. Following
researcher arguments and empirical results (Lee Matthew et al., 2007, Davis et al.,
1992), we hypothesize motivation to have negative effects on consumers' resistance to
smartphones.
Hypothesis 6
The lower the Motivation, the higher the consumers' resistance to Smartphones
Hypothesis 7
The more favorable/positive consumers' Attitude towards normal mobile phones, the higher the consumers'
resistance to Smartphones
2.10.8 Self-Efficacy
Confidence in one's ability to use/understand smartphones without any difficulty, may
increase the chances of adoption, and will have negative effect on consumers'
resistance. Different researchers have found self-efficacy to have negative effect on
consumer resistance and positive effect on consumers' adoption of innovative products
(Ellen & Bearden, 1991, Tan & Teo, 2000, Park & Chen, 2007), based on which we
hypothesize consumers self-efficacy to have negative effect on resistance to
smartphones.
Hypothesis 8
The lower the Self-efficacy, the higher the consumers' resistance to Smartphones
27
2.11 Theoretical Model of Consumers Resistance to
Smartphones
Following our research problem, purpose, and the formulated hypotheses, we can
construct a theoretical model to express the hypothesized relationship between
consumers' resistance and factors of innovation & consumers characteristics. This
model will be applied in our analysis of empirical data, collected through
questionnaires. Accordingly, the factors; relative advantage, compatibility, motivation,
and self-efficacy are hypothesized to have negative relationship (-ve effect) with
consumers resistance to smartphones. This means that increase in these factors will
decrease consumers' resistance to smartphones and vice versa. On the other hand, the
factors; complexity, perceived risk, expectation for better products, and attitude towards
existing products, are hypothesized to have positive relationship (+ve effect) with
consumers' resistance to smartphones. This means that increase in these factor will
increase consumers' resistance to smartphones and vice versa. These factors are also
correlated with each other, which is represented by two way arrows linking them
together. Empirical data will be analyzed on the basis of this model to; test the
hypothesis, answer the of research questions and achieve the purpose of this study.
28
3 Method
In this chapter we have discussed different available methods and why certain methods are chosen as
appropriate for performing this study. Moreover, we have discussed how this study has been conducted
through the selected method.
In the positivism philosophy, researcher and the interpretations are assumed as objective
and value-free, and there is relatively high level of generalization. Positivism holds the
notion of objectivity (Remenyi et al. 1998) and the author/researcher is independent of
the research subject and is not affected nor has any effect on the subject but play a role
of statistical analyzer. Where, the interpretation/discussion is made only on the basis of
actual findings. In positivism, existing theories are used to develop and test hypothesis
for further theory development, which may be tested in future research. For the purpose
of facilitating replication, highly structured statistical analysis is done on the basis of
quantifiable-observation/quantitative-data (Saunders et. al., 2003).
The preference of philosophy is based on the choice of research question, and usually
there is a mixture of the three philosophies. Widerberg (2002) argues that these three
views are not fully independent in all aspects, but are mutually dependent and overlap
each other. Hermeneutic approach uses assumption that the researcher has to participate
29
in the phenomenon that is studied, but it greatly influences the outcome of the study,
and is a major disadvantage of hermeneutics approach.
For this thesis, the philosophies considered to be most appropriate are positivism and to
some extent realism. As positivism believes that an assumption is only correct when it
corresponds to the reality, where existing theories are used to test hypothesis through
statistical analysis in relation with empirical case (Saunders et. al., 2003, Lövblad,
2003), which is the purpose of this study. Secondly, realism approach assumes that
existing theories are determined through testing against empirical data. In order to test
the power of prediction and/or explanation it is believed as crucial to test them
frequently, quantitative data should be used and theory testing is performed through
statistical tools and exploring the relationships (Wiklund, 1998). In this study, the
empirical data collected from different people in Sweden (through survey
questionnaires), is based on their belief/opinions about our empirical case
(Smartphones). Thus, it is aimed to understand people's subjective reality, i.e. “realism”,
which, according the Saunder et al (2003) has effects on people views/behavior. After
collecting empirical data (quantifiable), statistical analysis will be done to test the
hypotheses which are constructed on the basis of existing theories. So another
philosophy to be considered for this study is positivism.
In abductive approach, the researcher utilizes both inductive and deductive approaches
by moving back and forth in the theory and empirical findings. This approach looks for
30
common findings that most suitably explain and solve the issues about the collected
data. This will make the facts in certain order, and will provide valuable tools to analyze
and deal with the issues (Reichertz, 2004). The purpose of this study is to find the affect
(causal relationship) of different factors on consumers' resistance, by developing and
testing hypothesis on the basis of empirical data. The empirical data is collected via
survey questionnaires, and two pre-tests are done to make the questionnaire fit for the
required data collection. This made us to move back and forth in the theory and
empirical findings (partial) to finalize the questionnaire. Based on this, the abductive
approach is the most appropriate for accomplishing the desired objective. According to
Saunder et al (2007) it is perfectly possible and often more advantageous to combine
induction and deduction.
Maylor and Blackmon (2005) state that, when a study involved statistical conclusion,
quantitative research is conducted while the qualitative approach of research deals with
processes, such as analyzing non-numeral information, which is out of the scope of this
study. Moreover, quantitative approach is strongly linked with hypothesis testing
(Saunders et al, 2003), keeping in view the purpose of this study, quantitative
measurements (statistical analysis) have been done in order to be able to objectively
interpret and analyze the data of a larger sample.
31
re-used for different purposes (Sekaran, 2003). So, most of the time it is not possible to
achieve the research objective by only using secondary data, as it doesn‟t fully match
the specific purpose of the study, and may draw a skewed picture (Saunder et al. 2003).
The aim of this study is to find consumers' behavior based on a set of selected factors,
for which it is important to collect primary data with addition to secondary data.
Secondary data is collected from multiple sources, which mostly include journal
articles, books, and web/online information. Primary data can be collected through
interviews, observations, and questionnaire surveys (Sekaran, 2003; Zikmund, 2000).
Considering the purpose of this study questionnaire survey is the most appropriate
method of primary data collection, as there are large numbers of respondents targeted in
a wide geographical area. Questionnaire survey is a very cost efficient, free from
interviewer effect, and useful; easily accessing a wide range of sample in less time. For
getting fast and many responses with low cost, web-based surveys are conducted. As,
Williamson (2002) stated that web-based surveys are characterized by fast responses,
low cost, the ability to target a very large sample, and data can be easily managed for
statistical analysis through software. Surveys are conducted by inquiring selected
respondents from a targeted population, to provide the required information.
3.6 Sampling
It might be rarely possible to collect data from every suitable member/case, which is
called census, however due to certain limitations of time and cost; it is often impossible
and impracticable to do so. Sampling is a process of choosing a sufficient number of
elements/cases/individuals from the population, where population is the entire group of
people, events, or elements of interest that researcher desires to investigate (Sekaran,
2003). Saunder et al. (2003) argue that it should not be assumed that census would
necessarily give more useful and accurate output than data collection from a
representative sample of the whole population. Sampling techniques provide a number
of methods/techniques to select a subset of population that really represents the whole
population to most extent (Saunder et al. 2003).
There are two major kinds of sampling design, probability and non-probability
sampling. Probability sampling utilizes some form of random selection, where all the
elements/cases/individuals in the targeted population have the same probabilities of
being chosen. Probability sampling is used when the representativeness of the
population is of importance to make wider generalizability. Non-probability sampling
does not involve random selection, which means that the population elements have no
probability associated, to be selected as subject sample. The disadvantage of non-
probability sampling is that the results cannot be generalized confidently (Sekara,
2003). Whether to use probability or non-probability sample specifically depends upon
researchers' concerns about three factors, which are time, cost/approach and
generalizability. If researchers are more concerned about generalizability, it is
recommended to use probability sampling, on the other hand, if researchers are more
concerned about time and cost (and have limited approach) and less concerns for
generalizability, non-probability sampling is recommended (Sekaran, 2003). For this
study, our concern about time and cost (also our limited approach) outweigh the
concerns for generalizability, and hence non-probability sampling is done. Moreover,
the population of this study is very large, i.e. all young individuals in Sweden, so it is
32
impossible for us, to do probability sampling as we do not have access to the whole
population.
First, a large questionnaire was designed and all related and frequently used (by
different researchers) variables/questions (for measuring the selected factors) have been
included (see table 4.1). Likert scale from 1 to 5 has been used to measure the
constructed variables (where 5=strongly agree, 4=agree, 3=neutral, 2=disagree,
1=strongly disagree). The first pre-test has been done by filling & checking the
questionnaire by twenty different students in Jonkoping International Business School,
to improve the questions and replace any confusing & difficult terms. The purpose of
first pretest was also to see, if we have overlooked some important
dimensions/elements. After the first pre-test, a full version questionnaire has been
finalized for collecting data to perform confirmatory factor analysis. A total of 160
responses have been collected for performing the CFA. Confirmatory factors analysis is
done with the help of Amos 16.0 software, as a second pre-test to verify the
conceptualization of the selected constructs/indicators for each factor. After performing
CFA, unimportant and irrelevant questions have been excluded from the full version
questionnaire to get a final version of questionnaire. The final version questionnaire was
just a subset of full version questionnaire; that is why the first 160 responses have also
been used in further analysis of the study.
To examine the reliability of the empirical data, consistency analysis has been done on
the basis of Cronbach‟s Alpha method.
Keeping in view the objectives, this study implements structural equation modeling
(sometimes called path analysis), which is used to find multiple relationships of
33
dependent & independent variables (Hair, Black, Babin, & Anderson 2006). The
purpose of selecting an adequate sample size is to fulfill SEM‟s requirement for large
sample (Hair et al 2006 p.735). Results are estimated (derived) through partial least
square (PLS) approach, and also Amos, using a sample of 330 (160 from full version &
170 from final version questionnaire) respondents. The purpose of applying both
approaches (Amos & PLS) is to confirm the results and hence provide it more
credibility. Both of these approaches provided sufficient results that are used to fulfill
the purpose of this study.
34
factors to be measured by the measuring variables (questions). CFA is used as a pre-test
after collecting empirical data through pre-test questionnaires (full version), to test
whether there is significant relationship between the factors to measure and the
constructs (variables/questions) used for the measurement of those factors in
questionnaires. It is simply used to evaluate the contribution of each question in
measuring a particular factor, and also find how well the questions measure each factor
(Hair et al 2006). Results from the confirmatory factor analysis have been used to drop
out the constructs with less or no relationship with the factors.
3.8.2.2 AMOS
AMOS is a powerful and graphical, easy-to-use structural equation modeling (SEM)
software. It creates much realistic models than if standard multivariate statistics or
multiple regression models. It is used to estimate, assess, and then present a model in an
intuitive path diagram to show hypothesized relationships among variables. It is very
useful for testing the validity of different theories on the basis of empirical data, which
is the prime objective of this study. AMOS is widely used for getting confirmative and
interpretive results, which can be generalized more because of its requirement for a
large number of observations (sample size). One of the disadvantages of AMOS is that,
it is very sensitive to sample size, and may only provide good results if the sample size
is very large.
3.8.2.3 Correlation
Correlation is a statistical tool, used to find the direction and strength of relationship
between variables/factors. Correlation provided us the type & direction of inter-
35
relationship and intensity of relationship among our factors. The values for correlations
are provided by both AMOS and SmartPLS. The values/results from both AMOS and
SmartPLS are found as almost the same (i.e. with very least differences), so results from
SmartPLS have been specifically followed and interpreted.
The questionnaire we developed was aimed to measure different factors & consumers'
resistance, where some of factors are somehow opposite to each other e.g. self-efficacy
is somehow opposite to complexity and relative advantage is opposite to consumers'
resistance. So, to measure all the factors in an efficient way, the questions for measuring
different factors are arranged in a logical order. On this basis, we measured those factors
together which are (more or less) same, e.g. questions about measuring; relative
36
advantage, compatibility, self-efficacy, and motivation are put first, followed by
questions for measuring the rest of the factors. Consumers' resistance which proved a bit
sensitive factor in our first pre-test has been measured in such ways that the respondents
can provide their opinion where resistance can be measured indirectly. For measuring
consumers' resistance indirectly, we followed Mirella et al., (2009) and Szmigin and
Foxall (1998) studies about the concept of consumers' resistance.
37
4 Empirical Findings
This chapter aims to present empirical findings, after performing preliminary analysis on empirical data.
The purpose of preliminary analysis is to improve the questionnaire (full version) by excluding the irrelevant
questions to make it fit for the required data collection. After collecting empirical data from both the full
version & final version questionnaires, the descriptive findings are presented.
A large sample size has been recommended by different researchers (DeCoster, J. 1998)
to perform CFA, where the minimum sample size required is 150 (Hair et al 2006,
p.662). The following table shows the factor loadings derived from Amos 16.0
(Structural Equation Modeling software) for CFA.
38
Q11 Confidence Compeau and I am confident of understanding and 0.88
Higgins, 1995; using smartphone.
I.Brown et al.,
2003
Q12 Comfort Hung et al., 2003 I am comfortable with using technical 0.83
and advanced consumers’ products
(e.g. mp3 player, computer, digital
camera, PDA,etc ).
Q13 Independence Compeau and I would be able to operate 0.67
Higgins, 1995; smartphone, even if I have never used
Taylor & Todd, it before.
1995
Motivation Q14 Intrinsic Lee Matthew et It is very exciting and entertaining to 0.80
motivation al., 2007 use smartphone.
Q15 Extrinsic Park and Chen, Using smartphone would be beneficial 0.45
Motivation 2007 to my work
Q16 Extrinsic Lee Matthew et I need smartphone for its new 0.86
Motivation al., 2007 features/functions.
Q17 Intentions Park and Chen, I have intentions to use smartphone in 0.90
2007 the near future.
Expectation Q18 Convenient Lee & Yu, 1994 I expect more convenient and advance 0.58
for better smartphones
products Q19 Low price Lee & Yu, 1994 I expect more affordable smartphones 0.55
Q20 Secure Change & Chen, I expect more secure smartphones. 0.85
2004
Q21 Durability Change & Chen, I expect more durable smartphones. 0.87
2004
Attitude Q22 Preference I prefer compact and handy mobile 0.34
towards phones.
existing Q23 Concept / Schwartz, 1992 I do not like the idea of putting so 0.72
products tradition many functions together in a cell
phone.
Q24 Attitude Karjaluoto et al., I am quite satisfied and have favorable 0.91
towards & 2002 attitude towards normal mobile
satisfaction Wang et al., 2008 phones.
from existing
products
Complexity Q25 Usage I.Brown et al 2003 Smartphones may be complex to use. 0.75
complexity Lee, Cheung,
Chen, 2007
Q26 Require more I.Brown et al, Understanding and using smartphones 0.34
skills & mental 2003; Moore & may require more skills and or mental
effort Benbasat, 1991; effort.
He, Fu, & Li,
2006
Q27 Complex to Holak Lehmann, It may be difficult to understand 0.85
understand 1990 internet, gaming, mp3, and PDA
functions functions in smartphone.
Q28 Maintenance He, Fu, & Li, It may be difficult to make updates & 0.32
2006 put new software in smartphones.
Perceived Q29 Performance Holak & lehmann, Smartphone performance may not 0.23
Risk risk 1990 meet my expectations.
Q30 Performance Holak & lehmann, I afraid of getting out of battery, while 0.82
risk 1990 I need to use smartphone for a long
time.
Q31 Financial risk Holak & lehmann, I fear of losing much money if I lost 0.87
1990 my smartphone.
Q32 Security risk I.Brown et al, I fear of losing my personal 0.86
2003; Yang, 2005; information and all the data, if I lost
Chang & Chen, my smartphone.
2004
Q33 Value/safety Holak & lehmann, It is risky to spend relatively more 0.87
39
risk 1990; Yang, 2005 money for buying a smartphone.
Q34 Durability risk Holak & lehmann, Smartphone can easily break if 0.49
1990; Chang & dropped etc., and may stop
Chen, 2004 functioning.
Consumers' Q35 Postponement Szmigin & Foxall, I will wait to buy smartphone till it 0.20
Resistance 1998; Mirella et proves beneficial for me.
al., 2009
Q36 Postponement Szmigin & Foxall, I need to clarify some queries and 0.74
(Dependent 1998 justify the reasons to buy smartphone.
variable/fac Q37 Postponement Szmigin & Foxall, I am waiting for the right time and
tor)
0.46
1998 required capability to buy smartphone.
Q38 Opposition/ Yang, 2005 Buying smartphone maybe a wastage 0.78
Wastage of of money.
resources
Q39 Opposition Szmigin & Foxall, I fear of wasting my time using 0.77
1998; Mirella et smartphones.
al., 2009
Q40 Opposition Szmigin & Foxall, I need to get a solution for some of my 0.31
1998 complaints and objections before I
buy smartphone.
Q41 Opposition Szmigin & Foxall, Smartphone may decrease my 0.73
1998; Mirella et autonomy.
al., 2009
Q42 Resistance to Sheth, 1981 I fear of certain changes smartphone 0.27
change may impose on me.
Q43 Rejection Szmigin & Foxall, It is unlikely that I buy smartphone in 0.52
1998 the near future.
Q44 Rejection Szmigin & Foxall, Smartphone is not for me. 0.80
1998; Mirella et
al., 2009
Q45 Rejection Mirella et al., 2009 I don’t need smartphones. 0.81
Table 4.1: Full version questionnaire & Factor Analysis
Results from factor analysis have provided factor loadings for each variable (question)
where factor loading above 0.70 is termed as acceptable so that each factor is explained
more by its constructed variable (question) than by error (Hair et al 2006 p.695, Fornell
& Larcker, 1981). Several variables (factor analysis table) have factor loading above
than 0.70 and prove as best measure of the corresponding factor. Following this,
variables/questions with factor loading above 0.70 are kept for final questionnaire. A
visual/graphical representation of all factors and measurement variables/questions has
been derived from Amos software and is provided in the Appendix.
40
Below is a table, presenting consistency of each factor, and also overall consistency of
the data, where most of the factors are found with good consistency.
products
MOTIV1 It would be very exciting and entertaining to use smartphone.
Attitude ATEXPR1 I do not like the idea of putting so many functions together in a
cell phone.
Consumers' towards ATEXPR2 I am quite satisfied and have favorable attitude towards normal
Characteristics existing mobile phones.
products
SE1 I am confident of understanding and using smartphone.
41
CR3 I fear of wasting my time using smartphones.
Descriptive Statistics
Factors N Mean Std. Deviation
42
5 Analysis
In this chapter, we have performed statistical analysis on empirical data. Two approaches (PLS &
AMOS) of Structural Equation Modeling have been used to get results. Based on these analyses, the
constructed hypotheses are tested, and research questions are answered.
Fig. 5.1: Empirical Model of Consumer' Resistance to Smartphones showing regression coefficients and
factor loadings derived from SmartPLS.
43
The below figure shows the T-values derived from bootstrapping (with 700 value of
sample for 330 cases/observations). Following the rule of thumb (George & Mallery,
2003), t-values below than two (t-value<2) are considered as non-significant and are
red-underlined.
Fig. 5.2: Factors Relationship with Consumers Resistance represented by t-values using SmartPLS
5.1.2 AMOS
The theoretical model (from Fig. 2.5) has been designed in AMOS, by making
innovation and consumers' characteristics factors as latent variables and the questions as
observed variables. After drawing the expected relationships and providing input
values, the following figure has been obtained as result. The values with each arrow
show the regression coefficients, where weak relationships are red-underlined. As
discussed in the methodology chapter, Amos is a hard approach and may sometimes
prevent solution for a problem which is not really a problem in other approaches like
PLS.
44
Fig. 5.3: Consumers' resistance model from AMOS
Most fortunately, we have obtained almost the same results from PLS (SmartPLS) and
AMOS approaches.
45
Factors Hypothesis Beta T-Values Significance
Similarly, the support for H3 i.e. Complexity, and H4 i.e. Perceived Risk are in line
with previous findings (Ram, 1987, Dunphy & Herbig, 1995, Yiu Chi et al., 2007,
Laukkanen et al., 2007) that have shown that complexity and perceived risk has positive
effects i.e. increase consumers resistance. So, respondents who feel that smartphones
are more complex and risky have shown more resistance.
Support for H6 i.e. Motivation with high beta value has shown motivation factor as the
most critical one in affecting consumers resistance negatively. As stated by MacInnis
and Moorman (1991), motivation is a “goal directed arousal” which drives consumers
needs. Respondents who have shown strong motivation to adopt smartphones have
expressed no or less resistance to it. In this regard, extrinsic motivation (MOTIV2) has
been found as important variable in measuring motivation towards adopting
smartphones.
Expectedly, consumers' favorable attitude towards normal mobile phones has been
found as positively correlated with their expression of resistance to smartphones. Which
show that respondents, who favor tradition, are unwilling to replace their old but still
functional mobile phones. Same relationship between consumers' favorable attitude and
their resistance to innovations, has been found in previous studies (Wang et al., 2008,
Karjaluoto et al., 2002).
The empirical data collected for this study, do not confirm H2 i.e. Compatibility, H5 i.e.
Expectation for better products, and H8 i.e. Self-efficacy. The relationship between
46
compatibility and resistance has been found as negative which is in line with previous
findings (Dunphy & Herbig, 1995, Tan & Teo, 2000, Saaksjarvi, 2003, Holak &
Lehmann, 1990), but is not significant to support our hypothesis. This shows that
respondents who express resistance do not really think that smartphones is not
compatible. On the other hand, respondents who expressed no or less resistance do not
really think that smartphones are much compatible.
Similarly, the factor “expectations for better products” has been found as positively
related with consumers' resistance which is also in line with previous findings (Lee &
Yu, 1994; Ram, 1987). The significance of this relationship (according to the empirical
data collected for this study) is very less to be accepted as significant. From our
empirical data we can elaborate on that; no matter respondents resist smartphones or
not, most of them have sufficient expectations for better smartphones.
The relation between self efficacy and consumers' resistance has been found as very less
and also non-significant, which is different from previous findings that respondents with
more self-efficacy express less resistance to innovation. In this case, self-efficacy has
been found as un-important. The name “smartphone” communicates and gives enough
confidence to the respondents about its usage friendliness, so in turn, most of the
respondents feel that they have sufficient self efficacy to use smartphones, no matter
they resist it or not.
Referring to the first research question, the below table mention (i) the causal
relationships between resistance and innovation characteristics factors, (ii) the causal
relationships between resistance and consumers' characteristics factors.
Following the above table, we can state that there is a negative causal relationship
between consumers' resistance to smartphones and relative advantage of smartphones as
innovation characteristics factor. There is positive causal relationship between
consumers' resistance to smartphones and perceived risk, and also a positive causal
relationship between resistance to smartphones and complexity. So, increase in
perceived risk and complexity will increase consumers' resistance to smartphones.
47
in favorable attitude towards normal mobile phones will increase consumers' resistance
to smartphones.
The hypothesized factors in the model of consumers' resistance represented almost 65%
(Coefficient of determination i.e. R2=0.649, see fig. 5.1) variation in consumers'
resistance that is caused by these factors. In other words, 65% variation in consumers'
resistance is explained (caused) by innovation and consumers' characteristics factors,
which indicates an acceptable goodness of fit of the model (McKelvey & Zavoina,
1975). The goodness of fit of a model indicates how well it fits a set of
observations/empirical data.
CR = α–0.171β1–0.088β2+0.191β3+0.165β4+0.042β5–0.303β6+0.129β7+ 0.023β8 + γ
The value with positive/negative signs are the coefficient from PLS, which e.g. can be
interpreted as, when “motivation” goes up by 1, CR goes down by 0.303 etc.
Referring the second research question motivation, complexity, relative advantage, and
perceived risk are found as the important factors (as per their order) that
affect/determine consumers' resistance to smartphones.
48
ATEXPR CLEX COMP EXBPR MOTIV PRISK RELADV SE
ATEXPR 1
CLEX 0.510 1
COMP -0.503 -0.414 1
EXBPR -0.151 -0.141 0.337 1
MOTIV -0.532 -0.408 0.727 0.284 1
PRISK 0.388 0.455 -0.531 -0.064 -0.454 1
RELADV -0.543 -0.445 0.713 0.210 0.731 -0.501 1
SE -0.195 -0.197 0.210 0.252 0.278 -0.073 0.142 1
Table 5.3: Factors correlations
The correlations between the hypothesized factors have been found similar to the
previous findings (Holak & Lehmann, 1990; W. Robert, 1998).
Motivation has been found as positively correlated with relative advantage, self-
efficacy, compatibility, and expectations for better products, while negatively correlated
with complexity, risk, and attitude towards existing products. Respondents who are
more motivated to adopt smartphones perceived it as relatively more advantageous,
compatible, and have good self-efficacy, while they perceive smartphones as less risky,
less complex, and have unfavorable attitude towards normal mobile phones.
Complexity is found as negatively correlated with compatibility, relative advantage,
self-efficacy, and expectation for better products. On the other hand, it is found as
positively correlated with perceived risk and attitude towards existing products.
Respondents who think smartphones are more complex, have less compatibility, relative
advantage, and self efficacy, while more perceived risk and favorable attitude towards
existing products (i.e. normal mobile phones).
49
6 Conclusion
This chapter aims to conclude the analysis and findings, to specifically answer the research questions and
fulfill the objective of the study.
The hypothesized factors in the model of consumers' resistance represented almost 65%
(0.649, see fig. 5.1) variation in consumers' resistance that is caused by these factors. In
other words, 65% variation in consumers' resistance is explained (caused) by innovation
and consumers' characteristics factors, which indicates an acceptable goodness of fit of
the model.
Based on the research questions and purpose of the study, here we will conclude the
results of our analysis:
The empirical data supported all the hypotheses related to innovation characteristics,
except H2, i.e. Compatibility, and H5, i.e. expectation for better products. So our
empirical data could not confirm that; “the lower the perceived compatibility of
smartphones, the higher the consumers' resistance”, and “the higher the expectation for
better smartphones, the higher the consumers' resistance”.
Hypotheses H1, H3, and H4, are supported by the empirical data, which is in line with
the previous findings from different studies (Dunphy & Herbig, 1995; Park & Chen,
2007; Laukkanen et al., 2007, etc). Based on the hypotheses results, we can conclude
that, the lower the perceived relative advantage of Smart phones, the higher will be the
resistance. So, relative advantage and consumers' resistance are found to have negative
relationship, where consumers' resistance is the dependent factor, i.e. „increase‟ in
relative advantage causes consumers' resistance to „decrease‟, and vice versa.
Supporting H3 and H4, it can be concluded that, the higher the levels of perceived risk
and complexity of Smart phones, the higher will be the resistance. So, perceived risk
and complexity have negative relationship with consumers' resistance, where
consumers' resistance is the dependent factor, i.e. „increase‟ in perceived risk and
complexity causes consumers' resistance to „increase‟, and vice versa.
(ii) What are the causal relationships among consumers' characteristic
factors and consumers' resistance to smartphones?
In consumers' characteristics factors, our empirical data supported all the hypotheses
except H8, i.e. Self-efficacy. So the empirical data could not confirm that “the lower the
consumers' self-efficacy of smartphones, the higher the consumers' resistance”.
Hypotheses H6 and H7, are supported by the empirical data. One of basis of the
results/decision for H6, we can conclude that, the lower the consumers' motivation to
buy/adopt smartphones, the higher the consumers' resistance. So motivation and
consumers' resistance are found to have negative relationship, where consumers'
resistance is the dependent factor, i.e. „increase‟ in motivation causes consumers'
resistance to „decrease‟, and vice versa. Supporting H7, we conclude that; the more
favorable/positive consumers' attitude towards normal mobile phones, the higher the
50
consumers' resistance. So „attitude towards normal mobile phones‟ and „consumers'
resistance‟ are found to have positive relationship, where consumers' resistance is the
dependent variable, i.e. „increase‟ in consumers' favorable attitude towards normal
mobile phones causes consumers' resistance to „increase‟, and vice versa.
b. Which factors of consumers' and innovation characteristics mainly
affect/determine consumers' resistance to Smart phones?
Motivation, complexity, relative advantage, and perceived risk are found as the most
critical factors (intensive as per their order) which affect/determine consumer resistance
to smartphones. Where motivation has -0.303, complexity has +0.191, relative
advantage has -0.171, and perceived risk has +0.165 value of regression coefficient
(Beta), which can be interpreted as; when “motivation” goes up by 1, “consumers'
resistance” goes down by 0.303, when “complexity” goes up by 1, “consumers'
resistance” also goes up by 0.191 etc.
c. What is the inter-relationship among the innovation & consumers
characteristics factors?
Compatibility, Relative Advantage, and Motivation are found as strongly & positively
correlated factors. Secondly, perceived risk, complexity, and attitude towards existing
products are found as strongly & positively correlated (See table 5.4). However, the
correlation between the two groups “compatibility, relative advantage, motivation” and
“perceived risk, complexity, attitude towards existing products” has been found as
negative.
Further research can be done, to analyze the model of consumers' resistance for other
innovative products and also services. Also, the model of consumers' resistance to
Smartphones can be extended and applied on empirical data, collected from other
geographical areas. As discussed in the sampling, we have used convenience sampling
method in this study where results cannot be generalized confidently. If accessible,
probability sampling method can be used in further study, so that results can be
confidently generalized to the study population.
AMOS and SmartPLS approaches used in this study are very useful for finding
relationships (between different variables/factors) formulated in a model. These
approaches can be used in further studies, to find the cause/affect relationships between
different variables in a model.
51
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8 Appendix
8.1 Pre-test Questionnaire
On Page = 67
8.2.2 Compatibility
60
8.2.3 Complexity
61
8.2.5 Expectation for better Products
8.2.6 Motivation
62
8.2.7 Attitude towards Existing Products
8.2.8 Self-Efficacy
63
8.2.9 Consumer Resistance
64
8.3 Factor Loadings from the final empirical data
65
Dear respondent, this questionnaire is aimed to get your personal opinion about smartphones, and will only be used in
analysis of our master thesis. Your real opinions are very important for us. This questionnaire can also be filled online,
following the link: http://www.surveygizmo.com/s/126929/smartphone Thank you very much.
Smartphone is a device that provides cell phone, E-Mail/Internet, PDA (personal digital assistant) functionality with full
keyboard and relatively big screen.
Strongly Disagree Neutral Agree Strongly
Questions Agree
Disagree
Smartphones are more convenient, reliable, and useful than normal mobile 1 2 3 4 5
phones.
The price/quality relationship is acceptable in smartphone, as I can enjoy 1 2 3 4 5
other free services (e.g. e-mail, voice-mail, MSN & Skype, word
processor) anywhere I want.
Smartphones fit with my lifestyle and work style. 1 2 3 4 5
I do not like the idea of putting so many functions together in a cell phone. 1 2 3 4 5
I need to clarify some queries and justify the reason to buy smartphone. 1 2 3 4 5
Thank you.
66
Dear respondent, this questionnaire is aimed to get your personal opinion about smartphones, and will only be used in
analysis of our master thesis. Your real opinions are very important for us. This questionnaire can also be filled online,
following the link: http://www.surveygizmo.com/s/126929/smartphone Thank you very much.
Smartphone is a device that provides cell phone, E-Mail/Internet, PDA (personal digital assistant) functionality with full
keyboard and relatively big screen.
Questions Strongly Disagree Neutral Agree Strongly
Disagree Agree
67
Questions Strongly Disagree Neutral Agree Strongly
Disagree Agree
Thank you.
68