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Stuck in the Adoption Funnel: The Effect of Interruptions in the Adoption Process on Usage

Author(s)
Lambrecht, Anja; Seim, Katja; Tucker, Catherine Elizabeth
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Abstract
Many firms have introduced Internet-based customer self-service applications such as online payments or brokerage services. Despite high initial sign-up rates, not all customers actually shift their dealings online. We investigate whether the multistage nature of the adoption process (an “adoption funnel”) for such technologies can explain this low take-up. We use exogenous variation in events that possibly interrupt adoption, in the form of vacations and public holidays in different German states, to identify the effect on regular usage of being interrupted earlier in the adoption process. We find that interruptions in the early stages of the adoption process reduce a customer's probability of using the technology regularly. Our results suggest significant cost-saving opportunities from eliminating interruptions in the adoption funnel.
Date issued
2011-01
URI
http://hdl.handle.net/1721.1/65140
Department
Sloan School of Management
Journal
Marketing Science
Publisher
INFORMS
Citation
Lambrecht, A., K. Seim, and C. Tucker. “Stuck in the Adoption Funnel: The Effect of Interruptions in the Adoption Process on Usage.” Marketing Science 30.2 (2011) : 355-367.
Version: Author's final manuscript
ISSN
0732-2399
1526-548X

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