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Why resist? examining the impact of technological Advancement and perceived usefulness on Malaysians’ switching intentions: The moderators

Author

Listed:
  • Nik Mohd Hazrul Nik Hashim
  • Ameet Pandit
  • Syed Shah Alam
  • Rosli Abdul Manan

    (National University of Malaysia, Malaysia
    University of Newcastle, Australia
    National University of Malaysia, Malaysia
    PLUS Expressways, Malaysia)

Abstract

The adoption of new technology represents a critical issue that firms need to confront when an improved product version is introduced to customers. Although prior research has established the benefits of technological improvements, it is still unclear why customers are typically slow to accepting new technology despite extensive marketing efforts. The main purpose of this paper is to examine how specific components of switching barrier, namely, lack of service facilities, switching costs, and adoption difficulty, moderate the effects of technological advancement and perceived value on switching intentions. A survey was conducted among highway commuters with alternative technological improvements, particularly an upgraded mobile devise in electronic toll collection (ETC) services. Results indicate that both technological advancement and its perceived value have a positive impact on customers’ intention to switch products. Nevertheless, high levels of perceived switching barriers mitigate the technological advancement–and perceived value–switching intention relationships. Based on the study findings, practical implications are discussed.

Suggested Citation

  • Nik Mohd Hazrul Nik Hashim & Ameet Pandit & Syed Shah Alam & Rosli Abdul Manan, 2015. "Why resist? examining the impact of technological Advancement and perceived usefulness on Malaysians’ switching intentions: The moderators," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(3), pages 65-80, July-Sepe.
  • Handle: RePEc:jda:journl:vol.49:year:2015:issue3:pp:65-80
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    Cited by:

    1. Kasnaeny Karim & Muhammad Jibril Tajibu & Akhmad Akhmad, 2021. "Determination of Consumer Switching Barriers to Use Prepaid Electricity Systems in the Household Sector in Makassar, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 193-199.

    More about this item

    Keywords

    technological advancement; upgraded product adoption; switching barriers; contingency theory;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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