Ready or Not (What Consumers Really Think about Technology) PowerPoint Presentation

Slide 1 -

ppt slide no 1 content not found

Slide 2 -

Charles ColbyClare ThibodeauxRockbridge Associates, Inc. Ready or Not? What Consumers Really Think about Technology 10130 G Colvin Run Road Great Falls, Virginia 22066 703-757-5213 www.rockresearch.com claret@rockresearch.com

Slide 3 -

Introduction Rockbridge is a market research firm that studies technology issues This presentation is about basic research on consumer beliefs about technology

Slide 4 -

Agenda What is Technology Readiness? NTRS Background & Purpose NTRS Methodology Consumer Beliefs about Technology Technology Readiness Index Technology Consumer Typology Techno-Ready Marketing Implications

Slide 5 -

Technology Company Employees Customers In 1996, Parasuraman proposed a PYRAMID MODEL

Slide 6 -

What is Technology Readiness? TR refers to people’s propensity to embrace and use new technologies for accomplishing goals in home life and at work TR reflects an overall state-of-mind; it is not a measure of competence It classifies people along a spectrum or as a “segment” in a technology adoption process

Slide 7 -

What’s Your TRQ?

Slide 8 -

Instructions 1) Add a+c+e+g+i+k 2) Add b+d+f+h+j+l 3) Subtract 2 from 1 (a+c+e+g+i+k) - (b+d+f+h+j+l) Should equal -20 to +20

Slide 9 -

ppt slide no 9 content not found

Slide 10 -

National Norms for TRQ Quiz 15 99% 14 98% 13 97% 12 97% 11 95% 10 94% 9 93% 8 91% 7 88% 6 86% 5 83% 4 79% 3 75% 2 70% 1 65% 0 59% -1 51% -2 44% -3 38% -4 34% -5 28% -6 24% -7 21% -8 19% -9 14% -10 11% -11 9% -12 7% -13 5% -14 5% -15 3% -16 2% -17 1%

Slide 11 -

What does it mean? 11+ (95%) -- Cyber-enhanced being 8 (91%) -- Need a second mortgage for all the toys you bought this year 3 (75%) -- can program a VCR -1 (51%) -- own a VCR, can’t program it -6 (24%) -- own and use a record player (it’s not a hobby, either!) -11 (9%) -- never heard of the Internet -14 (5%) -- live in a shack in rural Montana where you write anti-technology tracts

Slide 12 -

National Technology Readiness Survey (NTRS) A comprehensive study of consumer and employee beliefs about technology developed jointly by Rockbridge and Professor A. Parasuraman, University of Miami Used to produce the Technology Readiness Index, an action-oriented tool for assessing tech beliefs The TR Index is used by companies and academia in studying technology adoption

Slide 13 -

NTRS and associated research is subject of an upcoming book... Techno-Ready Marketing: Competing through Innovation By A. Parasuraman & Charles Colby Free Press, New York

Slide 14 -

Other Topics of NTRS The consumer & the employee technology vision Usage of technology-based products and services The impact of the Internet on behavior Cellular phone usage Desired methods of tech support Linkage of technology beliefs to demographics and attitudes about life

Slide 15 -

NTRS Methodology Fielded December 1998 - January 1999 Administered via computer-assisted telephone interviewing Involved a sample of 1,000 U.S. adults chosen through RDD

Slide 16 -

NTRS Sample Sample representative of U.S. population: Gender quotas (52% Female/48% Male) Weighted by education and gender Sample also weighted by number of phone lines per household Accounting for higher probability of selection in a RDD sample

Slide 17 -

Consumer Beliefs About Technology NTRS identified four TR dimensions: Optimism Innovativeness Discomfort Insecurity

Slide 18 -

Dimensions of Technology Readiness... Dimension #1 --Optimism Belief in the benefits of technology Technology gives more control over lives Newest technology more convenient Computers extend hours of commerce Easier to deal with computers than people Technology increases efficiency

Slide 19 -

Examples of Optimism... “Technology gives people more control over their daily lives” 58% Agree “Products with newest technologies easier to use” 66% Agree “Technology gives you more freedom of mobility” 74% Agree

Slide 20 -

Dimension #2: Innovativeness Tendency to be a pioneer and influencer Thought leader Early adopter Self learner Student of technology Dimensions of Technology Readiness...

Slide 21 -

Examples of Innovativeness... “Other people come to you for advice on new technologies” 36% Agree “Enjoy the challenge of figuring out high-tech gadgets” 63% Agree “You can usually figure out new hi-tech products and services without help” 50% Agree

Slide 22 -

Dimension #3 -- Discomfort Level Feeling of control (or lack thereof) over technology Feelings of technology being too complicated Degree of trust in tech support Feeling of being overwhelmed Belief that technology not for ordinary folk Dimensions of Technology Readiness...

Slide 23 -

Examples of Discomfort with Technology... “You get overwhelmed with how much you need to know to use the latest technology” 61% Agree “New technology often too complicated to be useful” 45% Agree “Hassles of getting new technology to work ... makes it not worthwhile” 34% Agree

Slide 24 -

Dimension #4 -- Insecurity Lack of confidence in security/Need for assurance Leery about doing business on-line Wants written confirmation of on-line transactions Fears information being intercepted Need to check automation Believe technology can invade privacy Dimensions of Technology Readiness...

Slide 25 -

Examples of Insecurity with Technology... “Whenever something gets automated, you need to check carefully…[for] mistakes” 82% Agree “Technology always seems to fail at the worst possible time” 62% Agree “You do not consider it safe to do any kind of business on-line” 58% Agree

Slide 26 -

A Framework Based on Research to Date Antecedents of TR Psychographics Demographics Adoption of Hi-Tech Products Interest/Intention-to-Use Actual Use TR -- Drivers: Optimism Innovativeness TR -- Inhibitors: Discomfort Insecurity Evaluation of Hi-Tech Products

Slide 27 -

Technology Readiness Index:Distribution

Slide 28 -

Characteristics of High TR… Psychographics: High TR consumers… live more fast-paced lives keep up more with fashion are more success-oriented like to try new things are more cerebral like to explore like toys and gadgets

Slide 29 -

Characteristics of High TR... Demographics: High TR Consumers… more male younger more likely to work in technology field have higher education levels earn more money

Slide 30 -

Typology of Technology Consumers

Slide 31 -

Characteristics of Technology Segments Optimism Innovative- Dis- Insecur- ness comfort ity Explorers High High Low Low Pioneers High High High High Skeptics Low Low Low Low Paranoids High Low High High Laggards Low Low High High

Slide 32 -

Pace of Technology Adoption 7/95 10/96 5/97 1/98 9/98 Explorers Pioneers Skeptics Paranoids Laggards Time period in which each technology segment achieved 10% penetration of home Internet/ online service access

Slide 33 -

Managerial Implications of Technology Readiness

Slide 34 -

Areas where the TR scale has been applied Mortgage bankers Realtors Online service users College Employees Long distance PC purchasers Leisure and business travelers Youth Credit card holders Teachers Meeting planners Electric power consumers Business software purchasers E-commerce TV Viewers

Slide 35 -

Principles of Successful Techno-Ready Marketing 1. Consumer Behavior is distinct for a Techno-Driven Product 2. Marketing practices should be different when technology is involved 3. Service and support should be different when technology is involved 4. In a technology market, it is possible that “winner takes all”

Slide 36 -

Techno-Ready Marketing Strategies Acquiring Customers Future Ready Design Technology Evangelism Proving Benefits Satisfying Customers Customer-focused Design Responsive Technical Support Reassuring Messages

Slide 37 -

Acquiring Customers:Future Ready Design Marketers should study the high-TR consumer to discern emerging trends in technology usage They are the first to engage in new behaviors such as e-commerce High-TR consumers can provide clues on making technology-based services “future ready”

Slide 38 -

Internet Incidence

Slide 39 -

Internet Usage in Past Year Among consumers with home Internet access

Slide 40 -

Online Purchases in Past Year

Slide 41 -

Acquiring Customers:Technology Evangelism Consumers with innovative tendencies -- Explorers and Pioneers -- like to share their knowledge with others Less techno-ready consumers rely on tech-savvy friends for advice “Technology Evangelism” is a deliberate strategy to speed up the diffusion of knowledge through the use of official spokespersons

Slide 42 -

How Technology Evangelism works... COMPANY EVANGELIST TECHNOLOGY OPINION LEADERS CONSUMER PUBLIC Hobbyists, Enthusiasts, Writers, Engineers, User Groups, etc. DISSEMINATING INFORMATION

Slide 43 -

Acquiring Customers:Proving Benefits As a market matures, a major obstacle to adoption is a lack of conviction by consumers (the “skeptics”) that the technology offers concrete benefits Marketers should identify the core benefits of the technology and develop a vivid and articulate communications strategy

Slide 44 -

Examples of Proving Benefits Consumer Markets Demonstrating how the technology changes lives/map features to benefits Demonstrations -- e.g., “is it live or Memorex?” Business Markets Net Benefit Analysis -- dollar and cents breakdown of costs/revenues for old versus new technology

Slide 45 -

Long-Term Success in the Market Requires Removing Obstacles for Low- and Medium-TR Consumers Customers who are less technology ready need more help and greater reassurance Other research we have done shows that TR influences satisfaction Marketers should focus on low to medium-TR consumers in ensuring “customer-focused” design and developing support functions

Slide 46 -

Satisfying Customers:Customer-Focused Design Technology-based services should be designed for customers with the greatest problems using them Highly techno-ready consumers like to tailor and program functionality to suit their needs; Low techno-ready consumers prefer to use the product the way it comes “off the shelf” Intuitive design is critical Technology-based products and services should be tested for usability among low-TR consumers

Slide 47 -

Satisfying Customers:Customer Service/ Tech Support It is critical to address the unique needs of the low-TR consumer to ensure rapid adoption of a technology-based product Companies often rely on “self-service” help approaches to save money, but those with the greatest need want a higher level of support Low TR consumers appear to have a greater need to talk to a person and to own a detailed manual

Slide 48 -

Satisfying Customers/Alleviate Insecurity about New Technology It is critical to understand that consumers have a natural suspicion about the risk, security and safety of new technology Develop messages and demonstrations that reassure consumers Leverage your brand name Offer warranties

Slide 49 -

Thank you! For more information, go to… www.rockresearch.com and select “Techqual”