Factors affecting new product adoption in the consumer

electronics industry.
Abstract
In light of the intense competition facing the consumer electronics industry, manufacturers are
constantly engaged in the creation of new products that would hopefully win consumers' acceptance.
However, against a backdrop Backdrop may refer to:
Theatrical scenery
Filming location
A pro wrestling move that's also called a belly to back suplex.
The Back Drop Club, website with BDSM resources, including BDSM related .
of changing technology and sophisticated consumer wants, inventing a successful innovation is an
uphill task. In this study, we chose two products, the portable MiniDisc A compact digital audio disc
from Sony that comes in read-only and rewritable versions. Introduced in late 1993, the MiniDisc
has been most popular in Japan. The read-only 2.5" disc stores 140MB compared to 650MB on a CD,
but holds the same 74 minutes worth of music due to Sony's Adaptive player and the MP3 player A
digital music player that supports the MP3 format, which was the audio format that started a
revolution in online music downloads and distribution. All portable music players, the iPod being the
most popular, support MP3 along with one or more other audio formats. , to represent the various
innovations in the consumer electronics market. A two-stage pluralistic pluralistic
adj.
1. Of or relating to social or philosophical pluralism.
2. Having multiple aspects or parts: "the idea that intelligence is a pluralistic quality that ...
research was carried out; with the use of focus group discussions followed by a survey in order to
gather the views and insights of consumers with regard to their adoption behaviour. From the
research findings, we ranked the seven factors influencing adoption ranked according to according
to
prep.
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3.
their degrees of importance.
Keywords: new product, adoption process and behaviour, consumer behaviour, consumer electronics
industry, lifestyle
**********
With the crunch (1) To process data. See number crunching.
(2) To compress data. See data compression.
1. (jargon) crunch - To process, usually in a time-consuming or complicated way. in the consumer
electronics industry, manufacturers are under tremendous pressure to create new products. The
consumer electronics industry has seen a wave of innovation sweeping the industry, with companies
experimenting with a wide range of products from handheld handheld: see personal digital
assistant. gadgets to portable music devices. Given the advent of new technologies and shorter
product development cycles, new products are constantly making their ways to the shelves.
Examples of such consumer electronic products include the MiniDisc, recordable CDs, the digital
audio tapes See DAT.
(storage, music) Digital Audio Tape - (DAT) A format for storing music on magnetic tape, developed
in the mid-1980s by Sony and Philips. As digital music was popularized by compact discs, the need
for a digital recording format for the consumer existed. , and the MP3 player.
The main aim of this research was to shed some light on the adoption behaviour of consumers in
relation to new audio consumer electronics innovations. Specifically, we wished to find out the
factors that influence adoption. This study utilised two products from the same category; comparing
one that is experiencing much success, (MP3 player) and the other with limited success (MiniDisc
player).
Research Objectives
Our research objective was to explore the difference in the rate of adoption of portable audio. There
are numerous possibilities to become able to ponder when purchasing any laptop computer.
Therefore, we have provided good info to suit your needs to make the selection easier.products.
Specifically, the research addressed the following issues:
* Determine the length of time taken by consumers to be aware of new portable audio products.
* Assess the sources of information that result in the awareness of new portable audio products.
* Determine the factors that affect consumers' adoption of portable audio products.
* Evaluate the varying degrees of importance these factors affect consumers' adoption.
A two-phase two-phase
adj. Electricity
Relating to two alternating currents with phases differing by 90. pluralistic approach was used
for this research. In the qualitative phase, two focus group discussions were conducted to obtain the
views of consumers as well as to gather information for the quantitative stage. In the quantitative
phase, a cross sectional sectional
adj.
1. Of, relating to, or characteristic of a particular district.
2. Composed of or divided into component sections.
n. survey was carried out to address the objectives of the research.
Literature Review
New products and innovations often come with high risks as most of them failed in the marketplace,
(Cooper, 1993). There has been extensive research carried out to unveil and discover the critical
success factors affecting adoption as well as on the process of innovation diffusion diffusion, in
chemistry, the spontaneous migration of substances from regions where their concentration is high
to regions where their concentration is low. Diffusion is important in many life processes. itself.
Development of Theories on Adoption
Rogers (1962) introduced five main dimensions that influenced the adoption of an innovation,
namely, complexity, compatibility, observability In control theory, Observability is a measure for how
well internal states of a system can be inferred by knowledge of its external outputs. The
observability and controllability of a system are mathematical duals. , trialability, and relative
advantage. Rogers and Shoemaker (1971) further discussed these five dimensions which formed the
foundation of subsequent studies on adoption of new innovations. Ostlund (1974) built on this
research by adding a sixth dimension, the perceived risk of adoption. Perceived risk and risk
attitudes were further discussed in various literature. For instance, Rogers (1995) indicated that
early adopters tend to be less risk averse Risk Averse
Describes an investor who, when faced with two investments with a similar expected return (but
different risks), will prefer the one with the lower risk.
Notes:
A risk averse person dislikes risk. than late adopters, hence providing an association between risk
attitudes and adoption of innovation. Smith and Andrews Noun 1. Andrews - United States naturalist
who contributed to paleontology and geology (1884-1960)
Roy Chapman Andrews (1995) explained that when the perceived risk of the innovation increased,
it would have a negative impact on the evaluation of the product; this further correlated
correlate
v. correlated, correlating, correlates
v.tr.
1. To put or bring into causal, complementary, parallel, or reciprocal relation.
2. risk with the adoption of innovation.
The number of dimensions thought to effect adoption continued to expand through the years with
Tornatzky and Klein Klein , Melanie 1882-1960.
Austrian-born British psychoanalyst who first introduced play therapy and was the first to use
psychoanalysis to treat young children. (1982) proposing 10 dimensions. They conducted a meta-
analysis meta-analysis /meta-analysis/ (met?ah-ah-nali-sis) a systematic method that takes
data from a number of independent studies and integrates them using statistical analysis. of all
past studies on the innovation characteristics that had an impact on innovation adoption. Of the 10
dimensions they introduced, five were those proposed by Rogers (1962). The additional five new
dimensions introduced were cost, communicability communicability
transmissibility; ability to spread from infected to susceptible hosts.
communicability period
the time during which the patient is infectious to others. , divisibility divisible
adj.
Capable of being divided, especially with no remainder: 15 is divisible by 3 and 5.
divis , profitability, and social approval. Of these additions, communicability tended to mirror
observability; and divisibility and cost paralleled trialability; the original dimensions laid down by
Rogers (1962).
Of these newly introduced dimensions, cost of innovation to consumers received much attention by
researchers and as a result, various studies on prices affecting rate of adoption followed. Kalish The
Kalish are a fictional alien race in the Farscape universe. They are mainly represented in the series
by the character Sikozu, although she is an abnormal case. and Lilien (1986) postulated
postulate
tr.v. postulated, postulating, postulates
1. To make claim for; demand.
2. To assume or assert the truth, reality, or necessity of, especially as a basis of an argument.
3. that the price of the innovation would affect its market potential. However, Jam and Rao RAO
Retiree Activities Office
RAO Right Anterior Oblique (Radiologic Term)
RAO Retinal Artery Occlusion
RAO Remedial Action Objective
RAO Response Amplitude Operator (mechanical engineering) (1990) contended that prices affect
the rate of adoption rather than the market potential. In an earlier study, Kamakura
Kamakura (km`k r), city (1990 pop. 174,307), Kanagawa prefecture, central Honshu,
Japan, on Sagami Bay and at the base of the Miura Peninsula. and Balasubramanian (1988) had
suggested that prices of innovation affect the timing of adoption and not whether consumers would
adopt the product or not. They believed that lower prices would encourage consumers to buy the
product at an earlier date, but not necessarily motivate them to buy just for that reason. They also
stated that prices affecting rate of adoption would be true only to products with a narrow price
range. Another view of price affecting rate of adoption was by Mason (1990), who provided empirical
evidence that product attributes rather than price should be the ma in impetus Impetus is a stimulus
or impulse, a moving force that sparks momentum.
Impetus may also refer to:
Theory of impetus, an obsolete scientific theory on projectile motion, superseded by the modern
theory of inertia
for adoption.
In view of the various opinions, Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla.,
a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection
equipment, packaging for foods, and auto parts. and Benbasat (1990) tried to summarise Verb 1.
summarise - be a summary of; "The abstract summarizes the main ideas in the paper"
sum, sum up, summarize
sum up, summarize, summarise, resume - give a summary (of); "he summed up his results"; "I will
now summarize" and redefine Verb 1. redefine - give a new or different definition to; "She
redefined his duties"
define, delimit, delimitate, delineate, specify - determine the essential quality of
2. the various dimensions. After an extensive instrument development process, they arrived at a
classification of seven characteristics, that included compatibility, complexity, trialability, relative
advantage, result demonstrability demonstrable
adj.
1. Capable of being demonstrated or proved: demonstrable truths.
2. Obvious or apparent: demonstrable lies. , visibility, and image. However, they did not incorporate
price as one dimension but treated it as part of trialability.
Besides exploring the factors that influence adoption, some researchers have proceeded to explore
the impact of marketing mix on new product adoption. In Thomas (language) Thomas - A language
compatible with the language Dylan(TM). Thomas is NOT Dylan(TM).
The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss,
written at Digital Equipment Corporation's Cambridge Research Laboratory runs and Hirokazu
(1999), witnessed extensive coverage on how advertising could affect new product adoption and in
Thomas and Charlotte (1999), we saw how product characteristics affected the rate of adoption.
Innovation Adoption Process
In addition to the dimensions that influenced adoption, the process by which individuals adopted an
innovation was also crucial, as an understanding of the these two areas would be imperative for the
success of an innovation. Choosing a processor for your notebook is an important initial step. Note
that a fourth Generation Intel Core i7-4700HQ Processor based on the Haswell circutry provides for
a fast and fluid user experience.The following review highlighted the various studies on the process
of the adoption of new innovations.
Mansfield Mansfield, city and district, England
Mansfield, city (71,325) and district, Nottinghamshire, central England, on the western border of
Sherwood Forest. The city lies in a coal district, with manufactures of hosiery, shoes, and metal
products. (1961) hypothesised that the proportion of individuals who adopted an innovation
increased with more information available and on greater experience of the product. The population
of consumers generally could be segregated into five categories with reference to their propensity to
adopt a new product. The categories are innovators innovators
people who will try new things.
early innovators
important figures in the farming or client community because they are the leaders in the
introduction of new techniques and management systems. , early adopters, early majority, late
majority, and finally laggards, (Rogers, 1995).
Late adopters normally adopted products on having more information and on greater exposure to
the product. As such, late adopters were generally considered to be more risk averse. Though the
risk perception among individuals were different, the decision process which lead to final adoption
was fundamentally the same, and this was well summarised in Rogers' (1995) Model of Innovation
Decision Process.
This model essentially encapsulated encapsulated Localized Oncology adjective Confined to a
specific area, surrounded by a thin layer of fibrous tissue; encapsulation generally refers to a tumor
confined to a specific area, surrounded by a capsule. See Islet encapsulation. various studies on
innovation adoption process (Kaplan Kaplan may refer to one of the following:
An individual with the surname of Kaplan
The origin and history of the surname Kaplan
Kaplan, Inc., an education company
, 1991; Van de Van, 1993; Clark and Staunton Staunton (st?n`t?n), city (1990 pop. 24,461), seat of
Augusta co., W central Va., in the Shenandoah Valley; settled 1732, inc. as a city 1871. , 1994), and
was used widely for explaining the adoption of information technology related products. In this
model, the adoption process was demarcated into five phases, namely, knowledge of innovation,
persuasion PERSUASION. The act of influencing by expostulation or request. While the persuasion is
confined within those limits which leave the mind free, it may be used to induce another to make his
will, or even to make it in his own favor; but if such persuasion should so far operate on the mind ,
decision, implementation, and confirmation. The process began with the acknowledgement of the
presence of an innovation, which could be driven by communication and needs, among other factors.
The second stage entailed the persuasion of the innovation to be adopted. This was the phase where
the factors affecting the rate of adoption would fit in. The five dimensions of complexity,
compatibility, observability, trialability, and relative advantage proposed by Rogers were the main
driving forces of persuasion. The third stage involved the decision-making decision-making,
n the process of coming to a conclusion or making a judgment.
decision-making, evidence-based,
n a type of informal decision-making that combines clinical expertise, patient concerns, and evidence
gathered from
by the adopter after considering all the persuasion factors, after which he would either accept or
reject the innovat ion. Implementation would only occur when the innovation was accepted, and
confirmation involved the post adoption behaviour by the adopter.
In this research, the main emphasis would be the second phase of the innovation adoption process,
that is the phase of adoption persuasion. In particular, this study would explore the dimensions that
affected adoption and their re-levance to the consumer electronics industry; an industry which was
highly driven by rapid technological changes and where its products were changing faster than end-
user (job) end-user - The person who uses a computer application, as opposed to those who
developed or support it. The end-user may or may not know anything about computers, how they
work, or what to do if something goes wrong. adoption rates.
Overview of MiniDisc and Portable MP3 Player
The MiniDisc (MD) was a compact digital audio disc Same as CD. developed by Sony SONY
Standard Oil of New York (common, but untrue; it's an urban legend) in 1992 and it made its
debut in the market in 1993. It was mainly used for listening and recording of music and designed to
replace the tape cassette See cassette and audio cassette. . In addition, the MiniDisc also offered
features that compact discs (CDs) did not possess. Recordability and track labeling were some
examples. Moreover, the storage capacity of the MiniDisc was almost twice as large as that of CDs.
Another new music device was the MP3 player; this is a device that could download To receive a file
transmitted over a network. In any communications session, "download" means receive, and
"upload" means send. The download/upload often implies a big/little scenario, in which data is being
downloaded from the "big" server into the "little" user's computer. musical selections from a
Personal Computer, and be easily transported on the move just like a Walkman A brand of portable
audio players and recorders from Sony. In 1979, Sony introduced the first Walkman, an audio
cassette device that created a revolution. The tape-based Walkman was the progenitor of the
portable CD player and the MP3 player. See audio cassette and Stereobelt. or a CD player. Since
its introduction in 1998 by SonicBlue (SONICblue Inc., Santa Clara, CA, www.rioaudio.com,
www.replaytv.com) A former consumer electronics company that offered a variety of products,
including Rio MP3 players, ReplayTV recorders, home networking and modems, professional display
adapters and Web appliances. Inc, it has experienced a steep adoption curve and good sales. For
instance, it has been postulated by International Data Corporation (IDC) that the United States
United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227
sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in
population and the fourth largest country in area. market for such portable digital music players
See digital music player and Portable Media Center. will grow from 1.3 million units to 6.7 million
units by 2003. Since the MP3 player introduction, it has taken the lion's share of shelf space,
advertising support, and retail sales from the MiniDisc player.
The sales of MP3 players have skyrocketed particularly in USA, due to the high rate of PC ownership
and the easy availability of broadband technology broadband technology
Telecommunications devices, lines, or technologies that allow communication over a wide band of
frequencies, and especially over a range of frequencies divided into multiple independent channels
for the simultaneous transmission of different signals. , which allowed files to be downloaded at
much faster speeds. Estimating a similar scenario in Singapore Singapore (s?ng`g?pr, s?ng`?-,
s?ng'g?pr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625
sq km). , companies such as Creative Technology and Philips Consumer Electronics Philips
Consumer Electronics is a part of Koninklijke Philips Electronics N.V. (usually known as Philips); and
is one of the largest electronics companies in the world. In 2005, its sales were EUR 30.4 billion
(US$38. have allocated huge investments and research and development (R&D) budgets for such
products.
However, some industry experts shared the sentiment that MP3 players were in fact a replacement
of MiniDisc players. After all, both were music devices with similar functions. Both were targeted
mainly at music lovers who desire to enjoy the sound of music while on the move. Still, despite the
many similarities, the rates of adoption for both products were vastly different. The steep adoption
curve of the MP3 player clearly rivaled the gentler and jagged curve of the MD player. Market
sentiments Market Sentiment
The feeling or tone of a market (i.e. crowd psychology). It is shown by the activity and price
movement of the securities.
Notes:
For example, rising prices would indicate a bullish market sentiment. were such that MP3 players
have overtaken the MiniDisc players in terms of popularity and profitability. Perhaps this sentiment
can be reflected in the features that MP3 players possess. See Table 1.
Research Findings
We wish to gather some qualitative evidence of the factors affecting adoption and to obtain insights
of the purchase intention of MP3 and MiniDisc from owners and potential owners before conducting
a quantitative survey of respondents In the context of marketing research, a representative sample
drawn from a larger population of people from whom information is collected and used to develop or
confirm marketing strategy. . This was achieved by the conduct of focus group discussions with
consumers from different age groups; with one group consisting of students and the other group
consisting of young working adults.
Qualitative Phase: Focus Group Discussions
The first group involved 10 participants, eight males and two females students. Of the participants,
there were two MP3 player owners, a MiniDisc owner, and seven potential owners of either product.
All were between 16 to 24 years and had an avid AVID Cardiology A clinical trial-Antiarrhythmics
Versus Implantable Defibrillators that compared the effect of implantable defibrillators vs the best
medical therapy-antiarrhythmics for survivors of MI or those with nonsustained ventricular
tachycardia interest in MiniDisc and MP3 products.
The second focus group discussion composed of six working adults, with five males and a female
participant. They were between 25 to 35 years of age. Among them, two participants owned MP3
players, one participant owned a MiniDisc player and the rest were potential owners seeking out
more information on these products before making a purchase decision.
The main aim of the focus group discussions was to find the common features consumers looked for
before they decide whether to make a purchase of MiniDisc andlor MP3 players. After the
discussions, a generic list of product characteristics affecting the participants' purchase decisions
was obtained. Information on popular and preferred brands and consumer vocabulary used when
discussing MP3 players and MiniDisc players were also elicited elicit
tr.v. elicited, eliciting, elicits
1.
a. To bring or draw out (something latent); educe.
b. To arrive at (a truth, for example) by logic.
2. from the participants.
Features Effecting Adoption
The generic list of product characteristics effecting the participants' purchase decisions helped to
provide a comprehensive coverage of the underlying reasons that caused a difference in adoption
attitudes and behaviour between MP3 players and MiniDisc players. From the focus group
discussions, we noted that respondents constantly emphasised the importance of the aesthetics
aesthetics (?sth?t`?ks), the branch of philosophy that is concerned with the nature of art and the
criteria of artistic judgment. and appearance of the players, which in turn effected the image they
portrayed portray
tr.v. portrayed, portraying, portrays
1. To depict or represent pictorially; make a picture of.
2. To depict or describe in words.
3. To represent dramatically, as on the stage. to the users. As such, we concluded that image of
the product was indeed one integral aspect which would impact the adoption decision of the
consumer. As image was not congruous congruous
adj.
1. Corresponding in character or kind; appropriate or harmonious.
2. Mathematics Congruent.
[From Latin congruus, from congruere, with any of the six dimensions commonly discussed in the
current literature, we have included it as an additional seventh factor that would affect the adoption
of an innovation instead of incorporating it into one of the existing dimensions.
Quantitative Phase: Survey
After the conclusion of the focus group discussions, the final stage of the research was to conduct a
survey. Judgement sampling was administered given the fact that respondents need to have some
knowledge about MiniDisc and portable MP3 players. The potential respondents have to be owners
and potential owners of the MiniDisc and/or and/or
conj.
Used to indicate that either or both of the items connected by it are involved.
Usage Note: And/or is widely used in legal and business writing. MP3 players. This criterion was
based on the assumption that owners or prospective owners were aware of MP3 and MiniDisc
products and they therefore possessed adequate knowledge of these players.
To facilitate the selection of respondents, we stationed ourselves near Funan Funan (Old Khmer
Bnam, Vietnamese Ph Nam) was a pre-Angkor Indianized kingdom located around the Mekong
delta, believed to have been established in the A.D. the IT Mall, where most techno-savvy people
were likely to frequent, and outside Heeren Shopping Centre, where HMV HMV His Master's Voice
HMV High Mobility Vehicle
HMV High Mileage Vehicle
HMV High Molecular Weight
HMV Heavy Maintenance Visit
HMV Hazardous Materials Vault (military vault for dangerous materials)
HMV Heavy Military Vehicle , one of the largest music retailers, was located. In all, the cross
sectional sample consists of face to face interviews with 151 respondents (103 were owners and 48
were potential owners) over a period of two weeks, from 14 to 27 Dec 2001. The total response rate
was 84 per cent. For both owners and potential owners, 63 per cent of the sample were males and
the age spread was between 16 to 35 years with the majority in the 21 to 25 years (40 per cent) and
26 to 30 years (31 per cent) groups.
Research Findings
Awareness and Popularity of Players
The most preferred brand of MP3 players was Creative, (54 per cent) followed by Sony (28 per cent)
with a combined percentage for these two brands of 82 per cent. As such, we could infer that
Creative and Sony were the big players in the market. The rest of the brands only managed
insignificant percentages, which were far lagging Lagging
Strategy used by a firm to stall payments, normally in response to exchange rate projections.
behind these two major brands.
As for MiniDisc players, Sony was the clear winner as it attained attain
v. attained, attaining, attains
v.tr.
1. To gain as an objective; achieve: attain a diploma by hard work.
2. 78 per cent and Sharp was the distant second brand with 9 per cent. Aiwa and Panasonic
Panasonic was also the name of a Finnish electronic music duo.
Panasonic is an international brand name for Japanese electric products manufacturer Matsushita
Electric Industrial Co. were tied at 6 per cent. Overall, Sony was the indisputable and leading
brand for portable audio products, as evident in these two types of players.
Generally, Sony's reputation in consumer electronic appliances implied good reliability and quality,
and this has spilled over to the MiniDisc and MP3 players as well. Moreover, Sony was the innovator
of the MiniDisc technology, and throughout the past decade had set the benchmark for innovative
designs of the players. The most recent breakthrough for MiniDisc technology was the MiniDisc
Long Play (MDLP MDLP Mobile Data Link Protocol
MDLP Mini Disc Long Play (Sony mini-disc mode/standard) ) and MD-Link. This development had
further strengthened Sony's position and perception in the minds of consumers to be the leading
MiniDisc player manufacturer.
Creative, like Sony, was a reputable reputable
adj.
Having a good reputation; honorable.
rep utabil global brand. However, its reputation was more in the field of computer hardware
and sound systems. The MP3 player, being considered as an IT-based music device, was seen as a
branch-out from the arena of computers. Creative was the first company to come out with a player
with a huge storage capacity of 6GB. With the company's extensive marketing efforts coupled with
its early innovator status, MP3 players by Creative have since became a leader in the industry and
gained the support of many techno-savvy fans who were also ardent (Ardent Software, Inc.,
Westboro, MA) A database vendor formed in 1998 as the merger of VMARK Software, Unidata and
O2 Technology. Its products included the UniVerse and UniData databases and DataStage data
warehouse utility. music lovers. See Table 2.
There were 70 owners of MP3 players and 60 owners of MiniDisc players. In addition, there were 27
respondents who owned both MP3 and MiniDisc players. For MP3 players, 23 (33 percent)
respondents owned Creative Players. This was in line with our earlier finding that Creative was the
most preferred brand among MP3 players. Besides, Creative had a comprehensive range of MP3
players, ranging from their revolutionary hard disk-based "Jukebox A storage device for multiple sets
of CD-ROMs, DVDs, tape cartridges or disk modules. Using carousels, robot arms and other
methods, a jukebox physically moves the storage medium from its assigned location to an optical or
magnetic station for reading and writing. ", flash-ram based "Nomad II" to the recently launched
MP3 CD A CD-ROM that contains audio files in the MP3 format. Starting in the early 2000s, auto and
home CD players began to support the MP3 format along with regular music CD tracks (CD-DA
format). MP3 CD players let users burn a CD-R that holds about 10 times as many titles as the CD-
DA format. player. This extensive range of products offered more choices and catered to the
different budgets and preferences of consumers. The next commonly owned brand of MP3 player
was the Jazz Piper (16 per cent). This brand of player appeared to be more of an entry-level entry-
level
adj.
Appropriate for or accessible to one who is inexperienced in a field or new to a market: an entry-
level job in advertising; an entry-level computer. product. Hence, consumers would not mind
paying a low price to experiment computer with the player.
The remaining 51 per cent of the respondents owned various brands such as Philips (company)
Philips - A Dutch multinational electronics company. It produces washing machines, consumer
electronics, integrated circuits and light bulbs. Together with Sony they set the Compact Disc
standard, especially Green Book CD-ROM. , Apple, Samsung, Sony, Compaq, NAPA, and Diamond
Rio This article is about the american country band. For the MP3 player brand, see Rio (digital audio
players).
Diamond Rio is an American country music band formed in 1984 in Nashville, Tennessee. . There
appeared to be numerous manufacturers for MP3 players, in contrast to mainly a few large ones for
MiniDisc players. However, it was interesting to note that Apple, a relatively new player in MP3
products, had managed to gain some market share quite rapidly.
For MiniDisc players, Sony was the most widely owned as 36 (60 per cent) out of 60 respondents
have Sony players. Sharp was in second place, with 17 (28 per cent) owners. The other two brands,
Panasonic and Aiwa, made up the rest of the brands.
The fact that 60 per cent of the respondents owned Sony players was in line with Sony being the
most preferred brand of MiniDisc players. As explained earlier, with its innovator status of the
MiniDisc technology coupled with its sound branding Sound branding (also known as audio
branding, sonic branding, acoustic branding or sonic mnemonics) is the use of sound to reinforce
brand identity. in the consumer electronics field, Sony has become the representative brand of
MiniDisc players. See Table 3.
Factors Effecting Adoption of New Innovations
The analysis of factors that affect the adoption behaviour of consumers could be divided into two
parts. The first part seeks to determine the various characteristics and factors that affect consumers'
adoption tendency for a generic portable audio player A portable audio player is a personal,
electronic device that allows the user to listen to recorded audio while mobile. Portable audio
players became possible in the 1970s and continue to be developed today. . A ranking of these
factors according to their degrees of importance was performed. In the second part, the factors
identified earlier were operationalised by using MP3 and MiniDisc players specifically. By comparing
the MP3 and MiniDisc players based on the factors identified in the first section, we will seek to
explain the reasons behind the difference in adoption of these two players.
In the first part of the analysis, respondents were asked to rate the characteristics that they look for
when purchasing a portable audio player. A scale of 1 to 7 was constructed, where 1 represents the
least important feature and seven represents the most important feature. From the list of
characteristics, factor analysis was performed to categorise Verb 1. categorise - place into or assign
to a category; "Children learn early on to categorize"
categorize
reason - think logically; "The children must learn to reason" them into main factors that affect
their tendency to adopt a player. Cronbach alphas were also calculated in order to test the reliability
of the scale.
From the factor analysis, seven different factors were extracted and they could be summarised in
Table 4.
The seven factors could be named as follows: relative advantage, perceived risk, complexity,
compatibility, observability, image and trialability. The factor means were calculated as well as
Cronbach alphas in order to test for the reliability of the scale. See Table 5.
All the seven factors had Cronbach alpha greater than 0.7, hence certifying the reliability of the
scales. The mean values of the various characteristics that constituted a single factor were averaged
to obtain the mean value of that factor. Equal weightage is used as each of these characteristics
measures a different aspect of the factor, and were of equal importance in defining the factor.
Furthermore, the high correlation among these characteristics further supports the application of an
even weight computation Computation is a general term for any type of information processing that
can be represented mathematically. This includes phenomena ranging from simple calculations to
human thinking. .
Comparison between MP3 and MiniDisc Players
In this second part of the analysis, respondents were asked to compare MP3 and MiniDisc players
based on a similar list of characteristics generated in the first section.
On a scale of 1 to 7, 1 indicates that the MiniDisc player fares much better in that particular
characteristic, and 7 indicates that the MP3 player fares much better for that characteristic. The
value 4 indicates that both players fare equally for that characteristic. See Table 6.
Similarly, factor analysis was performed for this list of comparison characteristics and seven-factors
were extracted. The Cronbach alphas for these seven factors were all above 0.7, indicating
reasonable reliability of the scale. See Table 7.
Analysis of the Results
From the above findings, it was discernable that the seven factors that effected consumers' adoption
of an audio player were of varying degrees of importance. As such, we have classified these factors
into three different levels.
Very High Importance (Mean values greater than 6)
Factors that fell under this category include relative advantage and perceived risk of adoption.
Relative Advantage (Mean: 6.37)
Consumers rated relative advantage as the most important factor affecting their adoption tendency.
The characteristics that form this factor include sound quality, storage capacity of player, battery
life, functions of player, and skip protection (anti-shock mechanism that ensure uninterrupted
playback Playback could mean:
The re-playing of recorded media.
Gapless playback, the seamless playback of digital audio formats (i. e. ipods, mp3 players)
Playback singer, a practice in Bollywood musicals.
). On the whole, each of these characteristics has a minimum rating of at Least 6 (where 1 is least
important and 7 is most important).
Results show that in terms of relative advantage, consumers felt that the level of relative advantage
in adopting an MP3 player is moderately lower than a MiniDisc player (comparison mean 4.64). In
evaluating whether to purchase a portable audio product, consumers will generally look at the
advantages that the product offers. For music devices, it is imperative that sound quality, the
capacity of the player to store songs etc are the top priority of consumers. Specifically, MP3 players
fare very much better than MiniDisc player in terms of skip protection (a high comparison mean
value of 6.68) due to the absence of moving mechanical parts in MP3 player. Hence, users can enjoy
uninterrupted playback even when jogging jogging
Aerobic exercise involving running at an easy pace. Jogging (1967) by Bill Bowerman and W.E.
Harris boosted jogging's popularity for fitness, weight loss, and stress relief. .
Perceived Risk of Adoption (Mean. 6.14)
Consumers ranked perceived risk as the second most important factor that affects their adoption
tendency. The characteristics that comprise this factor include prices of the player (mean 6.3), costs
of obtaining music (mean 6.1) and the warranty period of the player (mean 6.1). It is observed that
consumers place a high emphasis on the costs of the player and its music. This result is not
surprising due to the rapid development of consumer electronics where new gadgets come and go.
As such, consumers perceive the monetary costs of adoption to be crucial. Furthermore, consumers
of such portable audio gadgets are mainly teenagers and young adults who may have limited
spending power The power of legislatures to tax and spend.
Spending power is conferred to state and federal legislatures through their constitution. Judicial
Review of legislative spending varies from state to state, but the law of federal spending informs
courts in all states. and will give the prices a second thought.
Results show that in terms of perceived risk, consumers felt that the level of risk in adopting an MP3
player is moderately lower than a MiniDisc player (comparison mean 4.86). They perceived the
prices of players and the prices of obtaining music for MP3 players are lower than MiniDisc, hence
lowering the risk level. There were no significant differences in perception in terms of warranty and
prices of accessories for both products.
High Importance (Mean value between 5 and 6)
Factors that belonged to this category include complexity and compatibility.
Complexity (Mean: 5.59)
Complexity of the player was ranked the third most important factor that could effect the adoption
tendency. Consumers felt that the user friendliness of the player was important (mean 5.9). With the
development of more advanced audio players with multiple functions, consumers hope to be able to
operate and navigate (1) "Surfing the Web." To move from page to page on the Web.
(2) To move through the menu structure in a software application. through the songs with ease;
which could be a challenge especially for players with very advanced features.
Another characteristic under complexity was the learning time required to operate the player (mean
5.3). Consumers felt that the players should be designed such that owners could easily master the
knowledge of using the player without needing to plough plough: see plow. through scores of
user manuals.
Complexity was the only factor out of the seven factors which MP3 player fared worse than the
MiniDisc player. On the whole, consumers rated MP3 player as fairly more complex than MiniDisc
(with a comparison mean of 3.33 favouring the MiniDisc player). The respondents felt that MP3
player was less user friendly (comparison mean 3.40) and required more learning time to operate
the player (comparison mean 3.59). Furthermore, more technical knowledge was required to operate
the MP3 player, compared to the MiniDisc player (mean 2.99).
All these findings could be attributed to the fact that the main source of MP3 music was from the
Internet Internet
Publicly accessible computer network connecting many smaller networks from around the world. It
grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects
Agency Network), established in 1969 with connections between computers at the . Basic literacy in
IT was required to use the player. For users who wished to use the more advanced features such as
converting normal CD songs into MP3 format, they will need to acquire the IT knowledge in order to
do so.
Compatibility (Mean 5.25)
Compatibility was the fourth most important factor rated in the survey. Consumers felt that the
availability of compatible existing music tracks for the player (mean 5.6), the player's ability to link
up with the PC (mean 5.2), compatibility with one's lifestyle (mean 5.2), and player's compatibility
with other home entertainment system were moderately important characteristics to consider before
adoption.
Compatibility with past investments and lifestyles of the respondents would lower the switching
costs incurred by the consumers, hence motivating them to adopt. For instance, if the consumer's
home Hi-Fi system could play songs in MP3 format, this compatibility will motivate him to purchase
a portable MP3 player without incurring incur
tr.v. incurred, incurring, incurs
1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses
during the stock market crash.
2. any extra cost of obtaining MP3 music tracks.
Compatibility was one factor in which the MP3 player scored much higher than the MiniDisc player
(comparison mean 6.36). The vast availability of compatible music in MP3 format in the cyberspace
Coined by William Gibson in his 1984 novel "Neuromancer," it is a futuristic computer network that
people Dell Inspiron review use by plugging their minds into it! The term now refers to the Internet
or to the online or digital world in general. See Internet and virtual reality. Contrast with meatspace.
was one big attraction. Furthermore, there were various software for computers that enable them
to easily transform normal CD music into MP3 music. As such, the ability to link with the PC was
another selling point selling point
n.
An aspect of a product or service that is stressed in advertising or marketing.
Noun 1. selling point - a characteristic of something that is up for sale that makes it attractive to
potential customers for MP3 players.
Moderate Importance (Mean value below 5)
Factors that were categorised Adj. 1. categorised - arranged into categories
categorized
classified - arranged into classes into this category include observability, image and trialability.
Observability (Mean 4.5)
Consumers felt that observability of the results of an innovation were moderately important. The
major characteristics comprising this factor were the weight of the player (mean 5.1), portability of
the player (mean 5.1), and amount of product information available (mean 5.0). Generally,
consumers would prefer to go for players that are small, light and packed with features.
MP3 players have advantages that are fairly more observable observable
adj.
1. Possible to observe: observable phenomena; an observable change in demeanor. See Synonyms
at noticeable.
2. than the MiniDisc (comparison mean 4.5). The major characteristics which MP3 fare better
were sise and portability. The sises of MP3 players, unlike MiniDisc players, are not constrained
constrain
tr.v. constrained, constraining, constrains
1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See
Synonyms at force.
2. by the sise of the removable discs. Therefore, MP3 players, for instance the Sony Network
Walkman could be as small as a cigarette lighter.
Consumers also perceived that there was more product information on MP3 players than MiniDisc
players. This further enhanced the observability of the benefits of adoption. The wide coverage of
product information could be attributed to the widespread of internet-based information of the MP3
player and marketers' efforts in promoting consumer awareness.
Image (Mean 4.1)
Consumers felt that the image the product portrays will
have an impact on their purchase decision. The design of
the player (mean 4.6), its accessories (mean 4.0),
presence of ergonomic ergonomic - Concerning
ergonomics or exhibitting good ergonimics. features
(mean 4.0), and image of the player (mean 3.8) were
various characteristics that will affect consumers'
adoption.
For this factor, MP3 was again the winner, with a comparison mean of 5.4. Consumers generally felt
that the design of MP3 players was more appealing (comparison mean 6.8) and this stems from the
fact that most MP3 players were more flexible in terms of shape and size. This provided designers
with more room for new designs and innovations. Henceforth From this time forward.
The term henceforth, when used in a legal document, statute, or other legal instrument, indicates
that something will commence from the present time to the future, to the exclusion of the past. , the
aesthetic appeal of the player enhanced its image portrayed and improves the adoption process.
Trialability (Mean 3.5)
Trialability was rated as the least important factor that would affect the tendency of adoption.
Consumers felt that the availability of trial before purchase (mean 3.4) and testing before purchase
(mean 3.6) were fairly less important considerations. As prices of both MP3 and MiniDisc players
were generally not very expensive, trial before purchase does not really enhance trialability.
For trialability, MP3 player fared only marginally better than MiniDisc players. For testing before
purchase, consumers felt that it was slightly easier to test a MP3 player than a MiniDisc player. This
might be because MP3 players require more knowledge in operating, and therefore sales personnel
tend to allow more testing of MP3 players.
Conclusions and Managerial Implications
The adoption of a portable consumer electronics innovation could be explained as a function of seven
factors, namely, trialability, compatibility, relative advantage, observability, complexity, image, and
perceived risk of adoption. These factors were developed as a result of an extensive literature
review; in-depth interviews conducted with manufacturers and retailers, and focus group discussions
with owners and potential owners of MP3 and MiniDisc products. Furthermore, the factor analyses
Verb 1. factor analyse - to perform a factor analysis of correlational data
factor analyze
analyse, analyze - break down into components or essential features; "analyze today's financial
market" conducted in the quantitative research Quantitative research
Use of advanced econometric and mathematical valuation models to identify the firms with the best
possible prospectives. Antithesis of qualitative research. further supports the presence of the
seven factors. Therefore, in developing new innovations, managers should take into account these
factors to ensure a higher chance of success.
However, it is impossible to develop an innovation that will fare extremely well for all the seven
factors as some of these factors may have antagonistic antagonistic adjective Referring to any
combination of 2 or more drugs, which results in a therapeutic effect that is less than the sum of
each drug's effect. Cf Additive, Synergism. relationships. For example, to develop an innovation
rich in functions to boost relative advantage may result in increased complexity of operating the
product. Furthermore, with limited resources, managers may encounter difficulty in satisfying all of
these factors.
As such, we conducted statistical analysis to reveal the varying degrees of influence and importance
these factors possessed in the adoption process. The seven factors were statistically segregated into
three different levels of importance. Relative advantage and perceived risk fell under the category of
very high importance, while complexity, compatibility came under the category of high importance.
Lastly, observability and image and trialability of adoption were classified under the moderate to low
importance category. By classifying these seven factors according to their relative importance,
managers could better manage and utilise their resources in order to maximise the possible payoffs
from their products and innovations.
From the findings, marketers should recognise that consumers value relative advantage of the
player as the factor of utmost importance. Hence, in developing new portable audio products,
marketers should ensure that key features such as sound quality, storage capacity for songs, battery
life, functions of player and skip protection feature surpass the standards of currently available
products.
While having the relative advantages in mind, marketers should also be aware that the perceived
risk of adoption is also crucial. This factor was ranked second among all factors, and could be
decomposed decompose
v. decomposed, decomposing, decomposes
v.tr.
1. To separate into components or basic elements.
2. To cause to rot.
v.intr.
1. into the cost of adoption and risk of non-performance of the player. Consumers are generally
concerned about sinking funds sinking fund, sum set apart periodically from the income of a
government or a business and allowed to accumulate in order ultimately to pay off a debt. A
preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are
to be paid into a new portable player without knowing if its performance can match their
expectations. As such, in order to minimise such risks, marketers will have to ensure that in the
process of providing relative advantages of the new innovation, research and development costs,
manufacturing costs etc should be optimised. Effective and efficient use of resources for product
development will help to cast a lower price tag for the products. This will promote adoption, which
in the long run benefits the manufacturers.
Lowering the level of complexity of operating audio players will help to enhance the adoption
process too. This aspect is particularly important as with the advancement of technology, products
are usually developed with multiple capabilities. Furthermore, the convergence of IT and
entertainment system may result in increased complexity of new innovations. This could pose a
challenge in the operation of such technological gadgets by laypersons. Marketers should always
ensure high levels of user friendliness of their innovations be maintained. Producing a highly
technical gadget (1) Slang for any hardware device, typically small. Synonymous with "gizmo."
(2) A mini application that resides on a computer desktop or personal home page, typically found in
the Windows environment. without consumers' knowledge of usage is unlikely to gain much
market share.
The main selling point of MP3 player is its ability to ride on the development of the Internet. Being
compatible with existing infrastructure and lifestyles of consumers contributes to its success. Hence,
compatibility of a new innovation is also crucial. Being backward compatible Refers to hardware or
software that is compatible with earlier versions of the product. Also called "downward compatible."
Contrast with forward compatible.
backward compatible - backward compatibility (for example, MP3 players can play normal CD
music tracks) and being compatible with a wide array of complementary products help enhance the
chances of success through increased adoption.
The remaining three factors, observability, image and trialability, though rated to be of moderate to
low importance, nevertheless should not be ignored by marketers. In instances of limited resources,
their priority may be lower but should not be ignored. Marketers should make use of any opportunity
to improve on these factors and to justify their new products.
Observability can be enhanced by increasing consumer awareness through promotional efforts. The
external characteristics of players are often the main areas that can enhance observability. Weight
and size of players are distinctive features that capture consumers' attention. Similarly, marketers
could enhance image of the player through the design of the player. As for trialability, marketers can
offer more product demonstrations and testing to generate' greater consumer interest and desire. In
all, by classifying these seven factors according to their relative importance, managers can better
manage and utilise their resources in order to maximise the possible payoffs from their innovations.
In addition, our research has revealed that the target group for MP3 players and MiniDisc players
are basically the same. Therefore, product positioning is important for marketers who want to
differentiate their products to enlarge TO ENLARGE. To extend; as, to enlarge a rule to plead, is to
extend the time during which a defendant may plead. To enlarge, means also to set at liberty; as, the
prisoner was enlarged on giving bail. the sise of the market. One suggestion could be
differentiating along the line of usage. For instance, instead of positioning the MiniDisc solely as
music device, companies can focus on other uses such as its recording capabilities, like using it for
recording of lectures and interviews.
Table 1
Features of MiniDisc and MP3 players
Features MiniDisc MP3
Players Players
Digital format of music Yes Yes
Recording capability Yes Yes
Voice recording Yes No
Skip protection (Anti-shock
mechanism that ensures
uninterrupted playback) Yes Yes
Designed to be more portable than
conventional CD players Yes Yes
Higher potential for further
reduction in size of player No Yes
Compatibility with computers No Yes
Able to download music from No Yes
Internet
Able to record music from Yes Yes
conventional CDs
Rapid adoption by consumers No Yes
Higher capacity storage No Yes
Cheaper storage medium Yes No
Higher priced compared to CD Yes Yes
players
Compatibility with home
entertainment units, for example,
Hi-Fi Yes Yes
Table 2
Brand Preference for MP3 and MiniDisc Players
Brand MP3 Player MiniDisc Player
No (Per cent) No (Per cent)
Creative 82(54.30) NA
Sony 42(27.81) 118(78.15)
Samsung 6 (3.97) NA
Philips 5 (3.31) NA
Jazz Piper 3 (1.99) NA
Sharp NA 13 (8.61)
Aiwa NA 9 (5.96)
Panasonic NA 9 (5.96)
Others 13 (8.61) 2 (1.32)
151 (100) 151 (100)
Table 3
Brands Owned by Respondents
Brand MP3 Player MinDisc Player
No (Per cent) No (Per cent)
Creative 23(32.86) NA
Jazz Piper 11(15.71) NA
Philips 7(10.00) NA
Apple 6 (8.57) NA
Samsung Yepp 6 (8.57) NA
Sony 6 (8.57) 36 (60.00)
Compaq 5 (7.14) NA
NAPA 2 (2.86) NA
Diamond Rio 1 (1.43) NA
Panasonic 1 (1.43) NA
Siemens hp 1 (1.43) NA
Zappee 1 (1.43) NA
Sharp NA 17 (28.33)
Panasonic NA 4 (6.67)
Aiwa NA 3 (5.00)
Total 70 (100) 60 (100)
Note N = 103 owners, Figures include 27 respondents who own both MP3
players and MiniDisc players.
Table 4
Factor Analysis Rotated Component Matrix
Variables Component
1 2 3
Prices of player -0.06 -0.10 -0.03
Costs of obtaining music -0.02 0.08 0.05
Warranty period 0.09 -0.05 -0.05
User friendliness of player 0.05 -0.10 0.02
Learning time required to operate
player -0.01 -0.02 0.01
Testing before purchase 0.01 -0.02 -0.16
Availability of trial period before
purchase -0.12 -0.05 -0.02
Portability of player 0.85 0.01 0.08
Weight of player 0.89 0.04 -0.02
Availability of accessories 0.73 -0.08 0.01
Product information 0.82 -0.01 -0.05
Number of retailers 0.80 -0.02 0.00
Product advertisements 0.84 0.06 -0.05
Sound quality of player -0.03 0.72 -0.07
Functions of player 0.01 0.84 0.09
Storage capacity of player -0.05 0.86 -0.06
Battery life 0.01 0.77 0.03
Skip protection 0.05 0.83 0.10
Design of player 0.13 0.00 0.86
Image of player 0.02 0.06 0.85
Design of accessories -0.21 0.05 0.77
Ergonomic Features 0.01 -0.05 0.85
Availability of music tracks 0.01 0.10 -0.03
Ability to link up with computer -0.02 -0.01 -0.01
Compatible with home entertainment
systems 0.03 0.06 -0.02
Compatible with one's lifestyle 0.08 0.10 0.02
Variables Component
4 5 6
Prices of player -0.01 0.87 0.06
Costs of obtaining music -0.01 0.75 -0.02
Warranty period 0.03 0.86 0.06
User friendliness of player -0.13 0.03 0.01
Learning time required to operate
player -0.04 0.05 -0.13
Testing before purchase 0.01 0.06 0.87
Availability of trial period before
purchase -0.05 0.04 0.90
Portability of player 0.08 -0.05 0.02
Weight of player 0.01 0.05 0.02
Availability of accessories 0.10 0.03 -0.12
Product information -0.04 -0.03 0.01
Number of retailers 0.04 0.00 -0.06
Product advertisements -0.06 0.00 0.01
Sound quality of player 0.01 0.02 -0.04
Functions of player 0.08 -0.08 -0.01
Storage capacity of player 0.07 0.03 -0.05
Battery life 0.18 -0.14 0.01
Skip protection -0.04 0.09 0.02
Design of player 0.02 -0.03 0.04
Image of player -0.04 -0.07 0.01
Design of accessories -0.01 0.04 -0.17
Ergonomic Features -0.01 0.04 -0.11
Availability of music tracks 0.72 -0.02 0.14
Ability to link up with computer 0.86 0.05 -0.04
Compatible with home entertainment
systems 0.79 -0.02 -0.06
Compatible with one's lifestyle 0.83 0.00 -0.09
Variables Component
7
Prices of player 0.05
Costs of obtaining music 0.02
Warranty period 0.00
User friendliness of player 0.89
Learning time required to operate
player 0.90
Testing before purchase -0.10
Availability of trial period before
purchase -0.02
Portability of player 0.05
Weight of player 0.01
Availability of accessories -0.01
Product information 0.01
Number of retailers 0.01
Product advertisements -0.02
Sound quality of player 0.00
Functions of player -0.08
Storage capacity of player -0.03
Battery life 0.00
Skip protection -0.04
Design of player 0.04
Image of player -0.08
Design of accessories -0.01
Ergonomic Features 0.09
Availability of music tracks -0.09
Ability to link up with computer -0.02
Compatible with home entertainment
systems -0.02
Compatible with one's lifestyle -0.05
Table 5
Factors Affecting Adoption of Portable Audio Players
Category Responses Mean Std Deviation Cronbach
Alpha
Relative Advantage 151 6.37 0.94 0.87
Risk 151 6.14 0.83 0.77
Complexity 151 5.59 1.15 0.78
Compatibility 151 5.25 1.16 0.82
Observability 151 4.45 1.37 0.91
Image 151 4.11 1.21 0.86
Trialability 151 3.53 1.28 0.77
Table 6
Comparison between MP3 and MiniDisc Players
Characteristics of Player Category from Comparison Std
Factor Analysis Mean Deviation
Design of player Image 6.80 0.50
Image of player Image 6.70 0.64
Skip protection Relative Advantage 6.68 0.50
Availability of music
tracks Compatibility 6.39 0.97
Compatible with one's
lifestyle Compatibility 6.36 0.85
Ability to link up Compatibility 6.32 0.99
Storage capacity of player Relative Advantage 5.89 0.84
Prices of player Perceived Risk 5.64 0.97
Costs of obtaining music Perceived Risk 5.63 0.92
Weight of player Observability 5.50 1.43
Portability of player Observability 5.50 1.44
Ergonomic features Image 5.48 1.07
Availability of accessories Observability 4.94 1.41
Testing before purchase Trialability 4.90 1.22
Functions of player Relative Advantage 4.81 0.74
Product information Observability 4.81 1.64
Design of accessories Image 4.63 0.94
Warranty period Perceived Risk 4.46 0.95
Availability of trial before
purchase Trialability 4.08 1.04
Number of retailers Observability 4.03 1.65
Price of accessories Perceived Risk 3.71 0.92
Learning time required Complexity 3.59 1.30
User friendliness of player Complexity 3.40 1.28
Product advertisements Relative Advantage 3.17 1.11
Battery life Relative Advantage 2.99 0.86
Technology knowledge required Complexity 2.99 1.16
Sound quality of player Relative Advantage 2.83 0.81
Table 7
Comparison of Factors Affecting Adoption of Portable Audio Players
Cronbach Better
Category Responses Comparison Std Alpha Player
Compatibility 151 6.36 0.77 0.76 MP3
Image 151 5.90 0.60 0.70 MP3
Perceived Risk 151 4.86 0.77 0.84 MP3
Observability 151 4.66 1.18 0.89 MP3
Relative
Advantage 151 4.64 0.63 0.89 MP3
Trialability 151 4.49 1.02 0.77 MP3
Complexity 151 3.33 1.00 0.86 MiniDisc
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