Characteristics of Individuals Influencing Adoption Intentions for Portable Internet Service

Abstract

Moon-Koo Kim et al. 67This study aims to identify the factors that influence adoption intentions towards portable Internet service, based on the individual characteristics that assist in creating markets and developing strategies. Two types of factors are defined: individual characteristics including demographics, existing services usages, prior knowledge, adoption attitudes, and service evaluations; and adoption intentions including the willingness to subscribe, subscription term, willingness to pay, usage type, and preferred terminal. The results indicate that the importance of demographic variables depends on adoption intentions, and that users of mobile Internet service and wireless LAN are probably targets for portable Internet service. Furthermore, the results demonstrate the need for an enhanced perception of the usefulness and ease of use of service, as well as an intensive marketing activity for potential users and a bearable innovation to stimulate the market for portable Internet service.Keywords: Portable Internet service, WiBro, adoption intentions, mobile broadband, individual characteristics. Manuscript received Nov. 29, 2004; revised Aug. 25, 2005. Moon-Koo Kim (phone: + 82 42 860 1182, email: mkkim@etri.re.kr) and Kyoung-yong Jee (email: kyjee@etri.re.kr) are with IT Services Research Division, ETRI, Daejeon, Korea. I. IntroductionThe telecommunication service industries in Korea have been developed with evolutionary paradigms such as digital convergence. We can now look for new growth by integrating the resources and capabilities of the value chains based on the so called 'IT 8-3-9 Strategy' announced by the Korean Government. Portable Internet service, preserving attributes best represented by broadband networks and multimedia, is now emerging as both the core service capable of leading the paradigms in these changes and as a new engine of growth. Portable Internet service provides wireless users with a high transmission rate whenever and wherever they happen to be, even when moving at intermediate speeds, and it is expected to be the telecommunication media for core services in the next generation. It will exceed the limitations of existing telecommunication services by proposing new business models and by converging telecommunication and broadcasting, telecommunication and transportation, and telecommunication and home appliances [1].However, even though a number of innovative telecommunication services have emerged in the course of the replacement and evolution of telecommunication technologies, such as movement toward multimedia services, elimination of boundaries between services, and enhanced competition since the mid-1990's, few services have succeeded in securing a reasonable number of subscribers (critical mass) and generating stable profits. Studies report that the main reason for failure is that most of the new telecommunication services have been technology-oriented, and have failed to properly reflect the needs and preferences of users [2]. Thus, the key to the success of new tele...

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