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

30 Pages Posted: 28 Oct 2007 Last revised: 20 Dec 2013

See all articles by Anja Lambrecht

Anja Lambrecht

London Business School

Katja Seim

University of Pennsylvania

Catherine E. Tucker

Massachusetts Institute of Technology (MIT) - Management Science (MS)

Date Written: October 15, 2010

Abstract

Many firms have introduced internet-based customer self-service applications, such as online payments or brokerage services. Despite high initial signup rates, not all customers actually shift their dealings online. We investigate whether the multi-stage 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.

Keywords: Online Banking, Technology Adoption, Adoption Process, Adoption Funnel, Online Security, Self-Service Technology

JEL Classification: M3, M30, M31, L1, L16, L86

Suggested Citation

Lambrecht, Anja and Seim, Katja and Tucker, Catherine E., Stuck in the Adoption Funnel: The Effect of Interruptions in the Adoption Process on Usage (October 15, 2010). NET Institute Working Paper No. 07-40. Available at SSRN: https://ssrn.com/abstract=941697 or http://dx.doi.org/10.2139/ssrn.941697

Anja Lambrecht (Contact Author)

London Business School ( email )

Regent's Park
London, NW1 4SA
United Kingdom

Katja Seim

University of Pennsylvania ( email )

3641 Locust Walk
Philadelphia, PA 19104-6372
United States

Catherine E. Tucker

Massachusetts Institute of Technology (MIT) - Management Science (MS) ( email )

100 Main St
E62-536
Cambridge, MA 02142
United States

HOME PAGE: http://cetucker.scripts.mit.edu

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