, Volume 7, Issue 1, pp 143-166

Comparative analysis of innovative diffusion in the high-tech markets of Japan and South Korea: a use–diffusion model approach

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Abstract

In recent years, many scholars and practitioners have raised doubt as to whether or not conventional research on the diffusion of innovation can explain and predict the needs and behavioral patterns of consumers in the raiding and converging market environment. Thus, it has been suggested that the use–diffusion model would be a good alternative framework to study innovation diffusion. This study explores whether the new model is effective in explaining and predicting the needs and innovative behavioral patterns of consumers in the Internet Protocol Television (IPTV) market in Japan and South Korea. Nation-wide surveys were conducted in Japan and South Korea for data collection, resulting in a large random sample (n = 500 in Japan and n = 500 in South Korea). Important findings of the study are: (1) product experience and sophistication of technology were found to be the most important factors in explaining the innovative diffusion process among IPTV users; (2) functional similarity, complementarity, and substitution effect were also main determinants for enhancing users’ satisfaction with IPTV services; (3) complexity and relative advantage were crucial measures of IPTV’s current technological level, functional performance, and quality with regard to services; and (4) a comparative analysis of diffusion patterns of IPTV between Japan and South Korea indicated that IPTV users in Japan appeared to be still in the phase of early adopters, while South Korean users have gone beyond to the phase of early majority in the adoption cycle.