(A) new user adoption behavior model in a competitive market structure for the next generation media services

Abstract

There is a need for new market analysis framework in the IT industry because it is a rapidly changing market. From an industrial viewpoint, it has changed from a monopoly, an oligopoly, and later to a more competitive structure between 1990 and 2000 as a result of industry deregulation, technology innovation, and market expansion. From a market viewpoint, there are, and will be, more convergent services than standalone services. In particular, the boundaries between technologies have become blurred due to the entrance and growing presence of convergent services and technologies. Such ambiguous market, service, and technology boundaries raise problems in analyzing the market structure and customer behaviors. Previous methods of analyzing the IT industry have ignored or deemphasized the competitive aspects of the market and the importance of understanding customer behavior patterns. Therefore, these two primary research questions will be addressed in this study:

- When there are changes in certain external environmental elements, will consumer choice probabilities be affected and will the market structure change? - If customer preferences are affected by characteristic changes of competitive services (substitutive services, similar services, etc.) that provide identical or similar function or usage, should the customers’ adoption behaviors of the new services be studied to jointly consider the competitive service adoption intention?

The research comprises two main sections: one verifies the phenomenon where customer decisions to purchase a service are affected by other competitive services and the attributes change using the customer purchasing probability method per the BP model. The other studies the behavioral pattern of the customer in adopting a new innovative service under a competitive market structure and suggests a new adoption research model. Three empirical test cases for generalizing the suggested adoption research model are studied and presented in...