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A segment-based analysis of Internet service adoption among UK households

Author

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  • Robertson, Alastair
  • Soopramanien, Didier
  • Fildes, Robert

Abstract

Technology policy analysis and implementation depend on knowledge and understanding of the “adoption gap” in information technologies among different groups of consumers. Factors that explain the so-called “digital divide” also need to be quantified. Using survey data collected in the UK, our focus is an understanding of the key factors involved in the choice of residential Internet service. These choices are analysed using a discrete choice model, which reveals that socio-demographic factors strongly influence the adoption of Internet services. Price elasticity effects also vary between different types of households: those households with members who are wealthier and better educated are found to be less sensitive to the price of Internet services than households whose member come from the other end of the socio-demographic scale. This finding is important for market planners and policymakers who wish to understand and quantify the impact of these factors on the digital divide across household types.

Suggested Citation

  • Robertson, Alastair & Soopramanien, Didier & Fildes, Robert, 2007. "A segment-based analysis of Internet service adoption among UK households," Technology in Society, Elsevier, vol. 29(3), pages 339-350.
    • Handle: RePEc:eee:teinso:v:29:y:2007:i:3:p:339-350
    DOI: 10.1016/j.techsoc.2007.04.006
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    References listed on IDEAS

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    1. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    2. Fildes, Robert & Kumar, V., 2002. "Telecommunications demand forecasting--a review," International Journal of Forecasting, Elsevier, vol. 18(4), pages 489-522.
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    Cited by:

    1. Brenda Mak & Robert C. Nickerson & Henri Isaac, 2009. "A Model Of Attitudes Towards The Acceptance Of Mobile Phone Use In Public Places," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 305-326.
    2. Ramírez-Hassan, Andrés & Carvajal-Rendón, Daniela A., 2021. "Specification uncertainty in modeling internet adoption: A developing city case analysis," Utilities Policy, Elsevier, vol. 70(C).
    3. Srinuan, Chalita & Bohlin, Erik, 2011. "Understanding the digital divide: A literature survey and ways forward," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52191, International Telecommunications Society (ITS).
    4. Andrés Ramírez-Hassan, 2020. "Dynamic variable selection in dynamic logistic regression: an application to Internet subscription," Empirical Economics, Springer, vol. 59(2), pages 909-932, August.
    5. Lim, Jinyang & Nam, Changi & Kim, Seongcheol & Rhee, Hongjai & Lee, Euehun & Lee, Hongkyu, 2012. "Forecasting 3G mobile subscription in China: A study based on stochastic frontier analysis and a Bass diffusion model," Telecommunications Policy, Elsevier, vol. 36(10), pages 858-871.

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