Diffusion of e-commerce: an analysis of the adoption of four e-commerce activities

  • Authors:
  • Matthew S. Eastin

  • Affiliations:
  • Assistant Professor, School of Journalism and Communication, The Ohio State University, 3016 Derby Hall, Columbus, OH

  • Venue:
  • Telematics and Informatics
  • Year:
  • 2002

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Abstract

The Internet has the ability to function as a business medium. Over one-third of US residents use the Internet, and nearly 40% use it as a medium of business (electronic-commerce). As this percentage continues to grow, so does the need to understand why and how users choose to adopt. This information will afford researchers and e-commerce providers a better understanding of how to facilitate future adoption. Through the diffusion of innovations model, this study revisits traditional and current concepts of adoption by investigating the adoption of four e-commerce activities currently available to Internet users: (1) online shopping, (2) online banking, (3) online investing, and (4) electronic payment for an Internet service (i.e., access to exclusive sites). Results indicate that six attributes common to the diffusion model (i.e., perceived convenience and financial benefits, risk, previous use of the telephone for a similar purpose, self-efficacy, and Internet use) all play a significant role in the adoption processes. Results also indicate that when users decide to adopt one of these activities they tend to adopt another. Finally, a discussion explores how to extend the model identified in this study by assessing possible negative outcomes of diffusion.