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

Nik Mohd Hazrul Nik Hashim, Ameet Pandit, Syed Shah Alam and Rosli Abdul Manan ()
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Rosli Abdul Manan: National University of Malaysia, Malaysia

Journal of Developing Areas, 2015, vol. 49, issue 3, 65-80

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.

Keywords: technological advancement; upgraded product adoption; switching barriers; contingency theory (search for similar items in EconPapers)
JEL-codes: C12 M31 N75 O33 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.49:year:2015:issue3:pp:65-80

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