An Empirical Model of the Consumers' Commitment Decisions in High Technology Markets

Abstract

Among the many factors that encourage technology commitment, one that has received scholarly attention in other contexts is switching costs. The role of switching costs in encouraging commitment to the incumbent technology has been posited, but not subjected to rigorous empirical testing. Furthermore, no examination has been conducted of the degree to which factors play a role in the success or failure of particular corporate strategies designed to encourage commitment. Therefore, our main focus is on the factors that influence whether consumers switch to alternative technologies or stay with an incumbent technology. Based on consumer survey data, we find empirical support for the link between technology advancement strategies and consumers' technology commitment. Further, consumer's lack of experience tends to decrease the likelihood to rely on an existing technology, rather than switch to a new one.