The National Technology Readiness Survey: Technology Readiness and Key Trends

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The National Technology Readiness
SurveyTechnology Readiness and Key Trends

• Charles L. Colby
• President
• Rockbridge Associates, Inc.
• 703-757-5213 ccolby_at_rockresearch.com

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Major Points

• Expect an e-Service Revolution (You aint seen
  nothing yet!)
• Major barriers to e-Service are confidence,
  affordability and training
• Despite barriers, Internet and e-Service usage is
  pervasive and growing

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Our Research Program

• National Technology Readiness Survey
• Authored by Parasuraman and Rockbridge
• Replicated in 1999, 2000 and 2001
• Nationally representative telephone survey
• Sponsored by the University of Maryland Center
  for e-Service
• Other efforts in Austria, Sweden and Singapore

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The Book

• Techno-Ready Marketing How and Why Your
  Customers Adopt Technology (Parasuraman Colby
  Free Press, April 2001)

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5 years of Research
What are we learning about the consumer behavior
of technology adoption?
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What is Technology Readiness? (TR)

• TR refers to peoples propensity to embrace and
  use new technologies for accomplishing goals in
  home life and at work
• TR reflects an overall state-of-mind it is not a
  measure of competence
• TR is determined by optimism, innovative
  tendencies, insecurity and discomfort

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Technology Readiness IndexDistribution
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Drivers of Technology Readiness
Innovativeness
Optimism
Technology Readiness
Discomfort
Insecurity
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TR Dimensions

• Optimism Positive view of technology belief
  that it offers increased control, flexibility and
  efficiency
• Innovativeness Tendency to be a technology
  pioneer and thought leader
• Discomfort Perceived lack of control over
  technology and a feeling of being overwhelmed by
  it
• Insecurity Distrust of technology and skepticism
  about it working properly

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Technology Segmentation
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Characteristics of Technology Segments

• Optimism Innovative- Dis- Insecur- ness co
  mfort ity
• Explorers High High Low Low
• Pioneers High High High High
• Skeptics Low Low Low Low
• Paranoids High Low High High
• Laggards Low Low High High

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Implications for Marketing e-Service
from Techno-Ready Marketing

• Acquiring Customers
• Technology Evangelism
• Future-Ready Design
• Proving Benefits

• Retaining Customers
• Customer-focused Design
• Responsive Customer Support
• Reassuring Communication

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2001 NTRS

• What are we learning about the e-Service
  marketplace?

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In the 2000s, e-Service will grow, powered by the
user
Company
1990s
Technology
2000s
Employees
Customers
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Enabling users to access e-service in their homes
Important Technologies

• Technologies
• Instant Internet Access
• Customization
• Broadband
• Home networks
• Wireless networks
• Firewalls
• E-Wallets
• Home Videoconferencing
• Voice over Internet

• Benefits
• Convenience
• Speed
• Security
• Time savings

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Examples of Corporate Initiatives

• Credit Card Company allows its customers to
  service accounts online
• Brewery creates an online game to build loyalty
  among young males
• Oil company provides an online coupon program for
  card members
• Student loan provider markets new products
  through an exclusive online customer website
• Mortgage company originates loans online
• Long distance company signs up new customers on
  the web
• Network marketing goes online, creating an
  leading e-commerce business

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Hold Everything!
Didnt the Internet crash and burn with the
dot.coms?
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Continued Growth

• NTRS shows consistent growth in the past three
  waves
• Penetration is projected to hit 90 by 2006

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E-Service Keeps Growing
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Shifting Paradigms Make way for .gov, .org, .edu

• E-Service usage among those online (2001)
• 61 researched health information
• 60 purchased goods and services online
• 55 visited a government web-site
• 38 checked bank account info
• 37 visited a .org website
• 21 did business with a government
• 20 moved funds across accounts online
• 11 took a course online
• 10 bought or sold securities

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Insecurity and Discomfort are Significant
Barriers to Adoption
Do not consider it safe giving out a credit
card number over a computer Technology systems
not designed for use by ordinary people Do not
consider it safe to do any kind of financial
business online
99 00 01 77 73 69 67 65
61 58 59 56
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The Technology Divide
72 of adults have a computer at home
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A Socio-economic Link
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Reasons for the Divide

• Lower TR consumers are less secure and less
  confident about technology
• Most of those who do not own computers would
  accept one if offered to them for no cost
• Affordability is a major obstacle
• Most have nots feel they need training to use
  computers

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Critical Mass
Do barriers really stop people from taking
advantage of interactive technology?
58 have home internet access
21 can get access elsewhere
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The Internet is a Pervasive Medium
79 of adults get online somewhere, although 10
go somewhere besides home or work. Where do
they go?

• Friend or relatives house 70
• Public library 41
• College campus 26
• School 14
• Portable device 13
• Government office 9
• Cyber café 6

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Conclusions

• We should be prepared for a boom in e-services
• We should expect that nearly all consumers will
  benefit from and use e-services
• For all consumers, we need to find ways to make
  technology easier to use, safer and more
  reassuring
• For have nots, we need to address issues of
  affordability and training
• We should not underestimate the drive to use
  technology when it becomes essential