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Marketing Science 2011

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

Anja Lambrecht1; Katja Seim2; Catherine E. Tucker3,4

1 London Business School · 2 University of Pennsylvania · 3 MIT Sloan School of Management, Cambridge, Massachusetts 02142 · 4 MIT Sloan School of Management, Cambridge, Massachusetts 02142#TAB#

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.

DOI
10.1287/mksc.1100.0613
Sources
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