Income disparity and digital divide: The Internet Consumption Model and cross-country empirical research

The Internet Consumption Model was developed by integrating the theoretical constructs from the Technology Acceptance Model (TAM) and the Consumption Theory. This model intended to extend the TAM by adding accessibility and affordability, two important factors that influence the Internet diffusion. It also intended to extend the Consumption Theory by adding the two psychological factors from the TAM—the perceived ease of use (PEU) and the perceived usefulness (PU) – as the determinants of preference. The theoretical extensions aimed at explaining the Internet consumption behavior by utilizing the vital constructs of the two major theories. Based on the Internet Consumption Model, the cross-country empirical research was conducted to examine the relationships between income, Gini index, and the pattern of the Internet diffusion curve. It showed that the developed countries had steeper Internet diffusion curves and shorter time lags than the developing countries. The GDP per capita had positive correlation with the slope of Internet diffusion curve, while Gini index had negative correlation. The divergence argument was strongly supported by the empirical analyses of this study, especially for the countries approaching the two extremes of the income spectrum.