Introduction
Problem Statement
Underdeveloped markets are far behind the developed markets when it comes to the acceptance of technological advancements. The size of the underdeveloped market is huge, and there are great opportunities for growth in such markets. Technology Acceptance Model (TAM) is a theory of information system that shows the pattern in which the users can accept using technology that can be applied to undeveloped markets to determine the acceptance of new business models.
Research Objective
The paper aims to discuss the TAM theory and develop an extension to it for underdeveloped markets.
Purpose of Study
The extension of TAM model is related to the consumers and their different traits that can help them in adopting the model more easily. For the completion of this research work, the researcher plans to add three more determinants that are consumer trust, consumer satisfaction, and consumer awareness as these factors will more accurately help consumers in underdeveloped markets to accept the advancements in technology.
Literature Review
Technology Acceptance Model (TAM)
All the businesses that require efficient information system to conduct their operational activities apply Technology acceptance model (TAM). E-commerce is one of the fields in which TAM model is empirically and theoretically used. The model is not only implemented but is also extended by researchers in their studies. The reason for application of this model is to forecast the adoption of various technologies like different software, spreadsheet, word processor, etc. in different markets. Even though the model is applied for the acceptance of information technology by the users in the developed market but still in underdeveloped markets, there is a lack of trust and awareness among the users regarding their dealings via the internet. Although some improvements are observed regarding the acceptance of technology in the underdeveloped markets, it is noted that further extension of the TAM model will improve the rate of acceptance of technology in such markets .
In order to extend the TAM model, it is necessary to develop an understanding of the original model. The model of TAM is based on Theory of Reasoned Action (TRA) which was introduced in 1989 by Fred Davis. The model was developed to forecast the acceptance of information system amongst users. The model of TAM is based on two determinants that are perceived usefulness (PU) and perceived ease of use (PEOU). PU is defined as “the degree to which a person believes that using a particular system would enhance his or her job performance” and PEOU refers to “the degree to which the perspective user expects the target to be free of effort” (Ambali 112). These determinants of the model are important for the acceptance of new technology by the users. The two primary variables of the TAM model are derived from the external variables. There are certain external variables that leads the consumers’ perceived usefulness and consumers’ perceived ease of use. The variables has a direct impact on the attitude towards using which leads to consumers’ behavioral intention to use and finally allows the consumers to use the actual system.
The realistic application of this model in different fields has developed substantial support by the passage of time. TAM model has proved to be successful by 40% in making predictions of about the intention and behavior of usage. The results are remarkable but are still insufficient to provide a brief about the intention of a user to accept technology. Therefore, the use of two determinants PU and PUOE in TAM are not the only two variables for to predict the intention and behavior of the users . As it is important to develop the trust of the consumers while making predictions, therefore, the consumer trust should be determined as an additional variable in the extended TAM model. In addition to it, consumer satisfaction also plays a major role in altering the intention and behavior of the users towards the acceptance of the technology. Hence, consumer satisfaction is also determined as a variable in the extended version of the TAM model . As the extension made in the model is because of the low acceptance of the technology in the underdeveloped markets and the extension should be with reference to the underdeveloped market. Therefore, it is important to figure out about the awareness in the users for such technologies. Hence, consumer awareness is the third variable in the third variable of the TAM extension model .
Consumer Trust
Consumer trust is essential to carry out the business successfully. Consumer trust helps in building a brand image for the company. Once a company has developed its brand image, then it is very difficult for the competitors to compete in the market. Mostly, the main focus of the companies is that it approaches its customers through trust-based marketing. It helps the organizations to influence consumers to develop trust on the products and services that are offered .
Consumer Satisfaction
Customer satisfaction measures the extent to which a company supplies the products and services meet or surpasses customer’s expectation. If customer satisfaction from a product or service is high, then they are more likely to purchase it .
Consumer Awareness
The extent to which the consumers recognize a brand is termed as customer awareness. Consumer awareness allows a person to purchase new products that are introduced in the market .
TAM Extension Model
The TAM extension model has three additional variables identified in it which are consumer trust, consumer satisfaction, and consumer awareness. TAM model explains that external variable has an impact on the two primary variables that is perceived usefulness (PU) and perceived ease of usefulness (PEOU). These two variables are important because they help in determining the attitude of the customers towards using new technology. It also leads to the behavior and intention of the consumers to use the new technology which further develops an understanding and predicting the utilization of the actual system. The additional variables contribute towards the consumers’ usage. The three new variable individually impact on the attitude of the consumers towards using new technology. The variables added in the TAM extension model for the study are derived from external variables. The external variables lead to consumer trust, consumer satisfaction, and consumer awareness. Consumer trust needs to be developed as it helps in changing the attitude of people. Once the consumers develop trust on a product and services of any kind related to any field their perception about that product or service positively changes. Consumer satisfaction is an important part of the extension of the TAM model as future purchases are dependent upon the level of satisfaction. If the consumers are satisfied with a satisfied, then they will tend to have a positive attitude towards using and accepting new advancements made in the market. Consumer awareness is another variable that has a huge impact on the minds of the people in the market. In the underdeveloped market, people have little awareness of new technology which refrains them from using and accepting technological advancements. Awareness in the minds of the people will help them in developing an understanding of the positive impact of new technology on the market. Once the consumers realize the benefits of the new technology, their attitude towards new advancements will change in a positive manner. These variables are identified and added because of their importance in the underdeveloped markets.
Figure 1
Extension of TAM Model
The proposed TAM model extension is based on the assessment of TAM model and other variables that can extend it to bring enhancement in it so that it can be applied in the underdeveloped markets. Most of the underdeveloped markets have some common issues like lack of infrastructure, illiteracy, high poverty level, etc. All these factors act as a barrier to adopting new technologies for further improvements and growth. In addition to the factors mentioned above, there is little awareness among people about new technology and its benefits . The lack of awareness is one of the main reasons for little or no trust of consumers on new technology. In the underdeveloped countries, lack of awareness is a big issue which must be controlled because the consumers are not aware of the products that are available in the market. Illiteracy is the reason to add consumer trust and consumer awareness to the TAM model. Whereas, customer satisfaction is added because of high poverty in such markets. Poverty forbids the consumers to purchase expensive and high-quality products which satisfy the demands. While purchasing products in such markets, the consumers’ needs to be more careful about the product and its quality, therefore, they prefer to examine it physically before purchasing. It means that e-commerce is not very successful in such markets because the consumers prefer to purchase those products which they can examine first. The addition of these variables in the TAM model will help in improving the perception of people related to acceptance of the technology . The extended model will help in targeting people by bringing awareness. Once awareness about the business is made existent in the market, it is much easier to develop consumer trust and consumer satisfaction.
Hypotheses
Consumer trust has a significant role in changing the attitude of use of consumers in underdeveloped countries.
Consumer satisfaction has a significant role in changing the attitude of use of consumers in underdeveloped countries.
Consumer awareness has a significant role in changing the attitude of use of consumers in underdeveloped countries.
Conclusion
The proposed research model is suitable for underdeveloped markets that face common issues like lack of infrastructure, illiteracy, and poverty. In order to design an effective business model, these problems must be identified. These issues can be reduced to a great extent by applying the TAM extension model provided in this study. Once these issues are resolved, it is easier for the companies to attract consumers to utilize products and services that are being offered in the market.
Works Cited
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Hill, Nigel, John Brierley and Rob MacDougall. How to Measure Customer Satisfaction. Farnham: Gower Publishing, Ltd., 2003. Print.
Lala, Gianina. "The Emergence and Development of the Technology Acceptance Model (TAM)." Proceedings of the International Conference Marketing - from Information to Decision 7 (2014): 149-160. Print.
Liu, I.F., et al. "Extending the TAM model to explore the factors that affect Intention to Use an Online Learning Community." Computers & education 54.2 (2010): 600-610. Print.
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