Business Economics and Public Policy Papers

Document Type

Journal Article

Date of this Version

1-2011

Publication Source

Marketing Science

Volume

30

Issue

2

Start Page

355

Last Page

367

DOI

10.1287/mksc.1100.0613

Abstract

Many firms have introduced Internet-based customer self-service applications such as online payments or brokerage services. Despite high initial sign-up rates, not all customers actually shift their dealings online. We investigate whether the multistage nature of the adoption process (an “adoption funnel”) for such technologies can explain this low take-up. We use exogenous variation in events that possibly interrupt adoption, in the form of vacations and public holidays in different German states, to identify the effect on regular usage of being interrupted earlier in the adoption process. We find that interruptions in the early stages of the adoption process reduce a customer's probability of using the technology regularly. Our results suggest significant cost-saving opportunities from eliminating interruptions in the adoption funnel.

Keywords

online banking, technology adoption, adoption process, online security, self-service technology

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Date Posted: 27 November 2017

This document has been peer reviewed.