Innovation Decision Process Essay

2.2 Conceptual frame work

Figure 1. Framework for the Adoption of Internet Banking

Relative advantage

Consumer attitudes towards Internet banking are driven by values or benefits, which playsan important role in increasing usability within the electronic banking environment.Relative advantage refers to the degree to which an innovation is perceived as providing more benefits than its predecessor (More &Benbasat 1991). Relative advantage results in increased efficiency, economic benefits and enhanced status (Rogers 2003).

Complexity

Ease of use refers to the extent to which mobile banking is perceived as easy to understand and operate.Cheung et al. (2000), defined complexity as the extent to which an innovation can be considered

The Adoption Stage

This stage is characterized by a large-scale, continued use of the idea, and most of all, by satisfaction with the idea. This does not mean that a person who has accepted an idea or product must use it constantly. It simply means that he has accepted the idea as good and that he intends to include it in his on-going program.

These, then, are the stages in the mental process of accepting new ideas or products and practices.

The Innovation-Decision Process

Rogers (2003), described the innovation-decision process as “an information-seeking and information-processing activity, where an individual is motivated to reduce uncertainty about the advantages and disadvantages of an innovation”. For Rogers (2003), the innovation-decision process involves five steps: (1) knowledge, (2) persuasion, (3) decision, (4) implementation, and (5) confirmation. These stages typically follow each other in a time-ordered manner.

The Knowledge Stage

The innovation-decision process starts with the knowledge stage. In this step, an individual learns about the existence of innovation and seeks information about the innovation. “What?,” “how?,” and “why?” are the critical questions in the knowledge phase. During this phase, the individual attempts to determine “what the innovation is and how and why it works” (Rogers,

While adoption refers to “full use of an innovation as the best course of action available,” rejection means “not to adopt an innovation” (Rogers, 2003, p. 177). If an innovation has a partial trial basis, it is usually adopted more quickly, since most individuals first want to try the innovation in their own situation and then come to an adoption decision. The vicarious trial can speed up the innovation-decision process.

The Implementation Stage

At the implementation stage, an innovation is put into practice. However, an innovation brings the newness in which “some degree of uncertainty is involved in diffusion”. Uncertainty about the outcomes of the innovation still can be a problem at this stage. Thus, the implementer may need technical assistance from change agents and others to reduce the degree of uncertainty about the consequences. Moreover, the innovation-decision process will end, since “the innovation loses its distinctive quality as the separate identity of the new idea disappears” (Rogers,