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Session Overview
11-02: Robert Ciuchita
Saturday, 20/Jul/2019:
3:15pm - 3:40pm

Seminar Room 2-2

Chair: Robert Ciuchita

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Keep on Keeping on: A Configurational Approach to Service Innovation Adoption and Continuance

Authors: Robert Ciuchita (Hanken School of Economics, Finland), Johanna Frösén (Hanken School of Economics, Finland), Dominik Mahr (Maastricht University, the Netherlands), Jaakko Aspara (Hanken School of Economics), Gaby Odekerken - Schröder (Maastricht University, the Netherlands), Martin Wetzels (Maastricht University, the Netherlands)

Consumers today face an abundance of competitive offers in the marketplace, rendering the initial adoption of a service innovation an uncertain indicator of continued usage and long-term market success. To illustrate, the majority of downloaded mobile applications are never used again three months after the initial adoption. Therefore, assessing the long-term market success of service innovation after initial adoption, remains a challenge. Consumers’ tendency to overestimate their likelihood to continue using innovations after adoption during market tests often leads to unreliable estimates to support go / no-go decisions related to large-scale market launches. This is particularly true for new-to-the-market services, which depend on a complex interplay of determinants related to the customer, the service provider, and the enabling service system.

To address this challenge, this paper (1) determines the attitudinal and behavioral drivers of continued usage of a newly introduced service innovation and (2) establishes configurations of drivers that lead to the success or failure of the service innovation among individual consumers. The study draws on a unique quasi field experiment relating to the introduction of contactless mobile payment as a new-to-the-market service. Specifically, we examine the usage behavior of 712 consumers who adopted mobile payment and were incentivized to use it over an initial market test period of 13 weeks. Subsequently, we follow their usage behavior for an additional period of 4 weeks during which they can continue using the service at their own volition. We complement the behavioral data with attitudinal data on how these consumers perceive the network of service providers supporting the new service and themselves as users of the new service, as well as their overall service experience.
We employ zero inflated negative binomial regression to show how behavioral drivers determine individual consumers’ decision to continue their usage of mobile payment, and the extent to which they employ it after the market test period. We then employ fuzzy set qualitative comparative analysis (fsQCA) to determine complex configurations of additional attitudinal and behavioral drivers of usage among diverse groups of consumers.

The findings of this study point to a differing, but complementary role of behavioral versus attitudinal cues in predicting the market success of a service innovation: whereas behavioral measures are better able to predict service innovation continuance, attitudinal measures play a larger role in determining the extent to which individual consumers use the service innovation after a market test. Consequently, this study provides guidelines for managers to better estimate the success of service innovations after a market test and suggests effective ways to tailor the marketing communications related to the test period to best support continued usage by diverse customer segments.

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