This study posits that all innovations meet consumer resistance, and overcoming this opposition must occur prior to product adoption. Factors driving service innovation resistance remain unclear. To better understand this behavior, the present study examines how five theory-driven adoption barriers—usage, value, risk, tradition, and image – as well as three consumer demographics—gender, age, and income—influence consumer adoption versus rejection decisions in Internet and mobile banking. Data from two large nationwide surveys conducted in Finland (n = 1736 consumers) test hypotheses using binary logit models comparing mobile banking adopters versus non-adopters, mobile banking postponers versus rejecters, and Internet banking postponers versus rejecters. Study results find that the value barrier is the strongest inhibitor of Internet and mobile banking adoption. In addition, the image barrier slows mobile banking adoption, and the tradition barrier explains the rejection of Internet banking. Gender and age significantly predict adoption and rejection decisions. The results demonstrate notable differences between these seemingly similar service innovations.
Developing Internet and mobile technologies provide innumerable service innovations for consumers. These diversifying services are increasingly important for companies trying to create a competitive advantage in the market, retain their customer base, and cut costs. However, most innovations face resistance from the market, delaying or even preventing adoption. Nevertheless, the innovation literature largely demonstrates a pro-change bias—innovations are always good, improvements over existing products or services, and consumers always want to adopt the newest products and services (Ram, 1987; Sheth, 1981). Consequently, the innovation literature predominately restricts inquiry to adoption and diffusion perspectives (Gatignon & Robertson, 1985, 1989; Ram, 1987; Talke & Heidenreich, 2014). Research investigating customer resistance to innovations remains surprisingly scarce (Kleijnen, Lee, & Wetzels, 2009). To date, little research examines the factors inhibiting the adoption process or causing rejection behavior. Consequently, the barriers consumers feel towards innovations require further study (Antioco & Kleijnen, 2010).
7. Theoretical and practical implications
This study explores adopters, postponers, and rejecters of two seemingly similar service innovations. Recent literature criticizes scholars for focusing mostly on the behavioral intentions of consumers rather than actual usage behavior. For example, Wu and Du (2012) argue that behavioral intention may not predict actual usage accurately. This study explores both actual adoption behavior and intentional behavior. The results support the view that future research should focus not only on intentional behavior, but also on actual behavior in order to come up with valuable research findings.