Digital Marketing. Annmarie Hanlon
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acquisition of artefacts to digital consumption, is music. There was a time when people owned vinyl records, then cassette tapes or CDs, whereas today very many of us don't physically own any music; we rent all the playlists we want via a monthly Spotify, Amazon or iTunes music account.
This can be described as ‘dematerialisation’, where we stop purchasing and owning material items and instead rent or share (for more on digital music consumption, see Magaudda, 2016).
Imagine if that was a whole semester's worth of work …
Other competitors to Dropbox are likely to be available to you right now. Your university might offer OneDrive storage, Google offers Drive and Apple offers iCloud. It's all free storage space until you need more and it's all online and accessible anywhere at any time.
The digital environment has provided consumers with access to more choice and customer acquisition has changed, as shown in Table 2.1.
Table 2.1
2.2.1 Accepting new Technology
These changes in behaviour show our acceptance of technology, and back in 1989 this was a major challenge. This was at a time when computers were being introduced into the workplace, where there were difficulties in comprehending the benefit of these devices. Your grandmother might have used a typewriter or even a telex machine. Suddenly computers started to be introduced.
Businesses were having difficulty persuading companies to adopt this new technology and Fred Davis, a researcher at the University of Michigan in the United States, was exploring ways to predict system usage by testing the adoption of new technology based on positive attitudes towards the perceived client benefit and the user experience. His measurement framework is called the Technology Acceptance Model (TAM) (Davis, 1989) and it is shown in Figure 2.2.
TAM was originally designed to ‘explain computer usage behaviour’ (Davis et al., 1989, p. 987), although more recently it has been adapted to measure the adoption of new technology. The model considers positive attitudes towards two specific measures: (a) perceived usefulness; and (b) perceived ease of use.
Figure 2.2 Technology Acceptance Model (TAM)
Source: Davis, Bagozzi and Warshaw, 1989
The origins of TAM can be found in the ‘Theory of Reasoned Action’ (see Chapter 10, Building the Digital Marketing Plan), developed by Ajzen and Fishbein (1980). Davis used this as the initial concept but wanted an easier model that could be applied in the workplace. This feature is also one of the major criticisms of this model – its simplicity, as it is seen as being too basic. TAM has been used by many researchers in digital marketing who have added elements to make it more complicated and more relevant to today's environment. However, TAM is still recognised as a leading model in explaining users’ behaviour towards technology and the original model continues to be used and widely understood.
People accept or reject different technologies and Davis’ research explained that people will use an application that they feel will help them perform their job better. This was named ‘Perceived Usefulness’ and was originally suggested by other researchers.
At the same time, Davis stated, if the application is too difficult to use, the benefits may be outweighed by the effort of using the application. This was called ‘Perceived Ease of Use’. Davis explained that a TAM should discover the impact of external factors; and so the model starts with the external variables which could include items such as individual or group training and user guides. The flow of the model is shown in Figure 2.2 and this initial framing from the external variables contributes towards the perceptions of usefulness and ease of use, which in turn lead towards the attitude toward using the system. Finally, positive attitudes contribute to a behavioural intention to use the system.
The different constructs are measured through a series of questions to identify the advantages, disadvantages and any factors associated with using the technology. It requires some statistical input to take the model through to the final conclusion.
In his 1989 research, Davis explored electronic mail (or email) and he asked 14 questions to assess the Perceived Usefulness and Perceived Ease of Use at a time when it was more usual to use traditional mail. These are shown in Table 2.2 and I have added bold type to the words electronic mail to indicate how these could be replaced with another type of technology such as augmented reality, personal drones or specific apps.
Table 2.2
Source: Davis, 1989
Thinking back to when Davis developed this model, many people were concerned that computers would take away their jobs. The concern about email was that it could replace the need for some letters and that people would not need secretaries any more. This is partly true and what has really happened is that we have ended up with a greater amount of communication instead of less and we have all developed secretarial skills – typing correspondence, booking diary appointments and managing our contacts.
The issue is the fear of the unknown. We are witnessing this with the idea of robots taking away other jobs. What is likely to happen is that robots will perform mundane, repetitive tasks and employees in these roles will gain training to focus on other tasks.
In both cases, respondents rate the scale items which are subsequently ranked on a ‘highly likely’ to ‘highly unlikely’ scale, to deliver a statistically recognised measure. The numerical analysis is great if you have access to statistical packages (and know how to use them!) and if not, the model can be adapted and the questions used in a survey format.
The Technology Acceptance Model is a good foundation to test the development of new apps as it enables companies to create more useful and easier to use systems. TAM was an antecedent of measuring user experience and the questions applied in the original study are still valid today although they require some adaptation.
Activity 2.1 Application of the Technology Acceptance Model
1 Think of a technology, an app or a device that has failed.
2 In Table 2.2 replace electronic mail with your selected technology.
3 Use the questions in Table 2.2 and score the items using a 5-point scale with ‘highly likely’, ‘likely’, ‘neither likely nor unlikely’, ‘unlikely’ and ‘highly unlikely’.
4 Analyse the factors: what is the overall perceived usefulness? And the perceived ease of use?
5 Which specific factors do you feel contributed to the failure of the technology, app or device?
6 Discuss with classmates.
2.3 Changing digital behaviour
Whilst we are more accepting of technology there have been other behaviours that have evolved within a digital environment, including:
Consumer power
The rise of the prosumer
Second screening
Showrooming and webrooming
Liquid consumption
These are discussed in the following parts.
2.3.1 Consumer Power
The power has moved from company to consumer and we have seen an increase in consumer power. Gillian Naylor, writing in the aptly named Journal of Consumer Satisfaction, Dissatisfaction and Complaining