Assignment 1 Consumer Behaviour

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Assignment # 01

Subject:
Consumer Behaviour
Submitted To:
Dr. Orangzab
Submitted By:
Bilal yousaf. (SP21-BBA-002)
Bilal Aslam (SP21-BBA-001)
Mukadas khushi (SP21-BBA-006)
Sana (SP21-BBA-007)
Khuram Shahzad (SP21-BBA-009)

COMSATS University Islamabad,


Vehari Campus
Assignment #1

Topic: Technology Acceptance Model

History of Technology Acceptance Model:


•The Technology Acceptance Model (TAM) was developed in the late 1980s by Fred Davis to explain how users come to accept and use new technology.
• TAM has been widely used to study user behavior towards various technologies, helping researchers and organizations understand what encourages or hinders the adoption of new systems.
•Important for developers and marketers. Helps improve technology design and implementation.
Define Technology Acceptance Model:

The Technology Acceptance Model (TAM) is a framework that helps explain how users come to accept and use a new technology.
It focuses on two main factors:
•Perceived usefulness
•Perceived ease of use

Importance of TAM:
Importance of TAM Provides insights into technology adoption. Helps in designing user-friendly systems. Guides marketing strategies for tech products. Reduces implementation resistance. Informs policymakers about technology
Key components of TAM:
Perceived Ease of Use: The degree to which using a technology is easy.
Perceived Usefulness: The degree to which a technology enhances job performance.

Attitude Towards Use: User’s feelings about using the technology. Behavioral Intention to Use: User’s intention to use the technology.

Actual System Use: The actual usage of the technology.


Example: Learning management systems in education.
Perceived Ease of Use:
Easy to learn and operate. Less training required for users. Increases user satisfaction. Reduces resistance to new technology. Encourages wider
adoption.
Example: Smartphone apps with user-friendly interfaces.

Perceived Usefulness:
Enhances productivity and efficiency. Helps achieve personal or organizational goals. Increases overall satisfaction. Improves task performance.
Influences user’s acceptance decisions.

Example: Email tools that streamline communication.

Attitude towards use:


User’s overall evaluation of the technology. Influenced by perceived ease of use and usefulness. Positive attitude leads to higher adoption rates.
Negative attitude can lead to rejection. Critical in shaping user experience.
Example: Users’ feelings about a new social media platform.
Behavioral Intention to use:
Indicates user’s willingness to use technology. Strong predictor of actual usage. Influenced by attitude and perceived usefulness. Can be measured
through surveys. Essential for predicting technology adoption.
Example: Intent to use a new e-commerce website.

Actual System Use:


The real-world application of the technology. Measured through usage statistics. Reflects the success of the technology. Influenced by behavioral
intention. Critical for assessing technology effectiveness.
Example: Number of users actively engaging with a fitness app.
External Variables:
Factors that influence perceived ease of use and usefulness. Includes social influence, training, and support. Affects user experience and
satisfaction. Relevant in different contexts and settings. Can be both positive and negative.

Example: Technical support provided for software.


TAM in different Content:
TAM applies to various fields: education, healthcare, and business. Can be modified for specific technologies. Helps identify factors influencing
acceptance. Adaptable to new technologies. Provides a framework for researchers.
Example: Adoption of telemedicine in healthcare.

TAM in Education:
Used to evaluate e-learning tools. Helps understand student acceptance of online learning. Focuses on usability and effectiveness. Guides the
design of educational technologies. Informs policy decisions on technology integration.

Example: Students’ acceptance of an online course platform.


TAM in Healthcare:
Evaluates acceptance of health IT systems. Important for electronic health records (HER). Influences patient engagement technologies. Guides
healthcare providers in system implementation. Assists in improving patient care.

Example: Adoption of patient portals by healthcare facilities.


TAM in Business
Used to assess enterprise software acceptance. Guides decision-making in technology investments. Influences employee training programs.
Enhances organizational productivity. Shapes customer relationship management systems.

Example: Adoption of a new customer management tool.

Critiques of TAM:
Overemphasis on ease of use and usefulness. May not account for social or cultural factors. Limited in explaining complex adoption scenarios.
Requires contextual adaptations. Can oversimplify user behavior.

Example: Users adopting technology due to peer influence.

Extension of TAM:
TAM2: Adds social influence and cognitive instrumental processes. UTAUT (Unified Theory of Acceptance and Use of Technology):
Incorporates additional factors like age and gender. Adapts to emerging technologies (e.g., mobile apps, AI). Broadens the scope of technology
acceptance studies. Enhances predictive accuracy.
Example: Using UTAUT to study smartphone app adoption.
Real-Life Application: E-Learning:
Evaluates student acceptance of online platforms. Focuses on ease of navigation and perceived benefits. Influences course design and content
delivery. Enhances student engagement and performance. Informs educators on technology integration.
Example: Students using platforms like Moodle or Canvas.
Real-Life Application: Social Media:
Studies users’ acceptance of new platforms. Focuses on perceived usefulness for communication. Influences marketing strategies for businesses.
Evaluates impact on social interactions. Guides platform development based on user feedback.

Example: Adoption of Tiktok among younger audiences.

Real-Life Application: Health Apps:


Assesses user acceptance of fitness and health tracking apps. Focuses on ease of use for monitoring health. Influences user engagement and
retention. Guides developers in enhancing app features. Informs health practitioners about patient technology use.

Example: Users tracking workouts with apps like MyFitnessPal.

Measuring Technology Acceptance:


•Surveys to assess perceived ease of use and usefulness. Analyzing usage data to determine actual usage. Interviews and focus groups for
qualitative insights. Pre- and post-implementation studies for impact evaluation. Feedback loops for continuous improvement.

Example: Conducting surveys after implementing a new software tool.

Future Trends in Technology Acceptance:


•Increasing importance of mobile technology acceptance. Integration of AI and machine learning in user experiences. Focus on personalized
technology solutions. Social media influence on technology adoption. Importance of user-centric design in tech development.

Example: Growth of AI-powered personal assistants.


Strength of TAM:
1:User-Friendly: TAM is easy to understand and apply, making it accessible for researchers and businesses. Example: A smartphone app that
allows users to easily navigate through features without a steep learning curve encourages more downloads.
2:Focus on Perception: It emphasizes how users’ perceptions of technology impact their acceptance and use. Example: Consumers are more
likely to use a streaming service if they perceive it as user-friendly and convenient.
3:Predictive Power: TAM can predict how likely people are to adopt new technologies based on perceived ease of use and
usefulness.Example: If a new fitness tracker is seen as easy to use and beneficial for health, more people will likely buy it.
4:Adaptability: The model can be applied to various technologies and industries, making it versatile. Example: TAM can be used to
understand consumer acceptance of both online shopping platforms and new home appliances.
5:Guides Development: It helps developers design technologies that meet user needs and preferences. Example: A company creating an
online banking app may prioritize intuitive design and features that enhance security to attract users.
6:Enhances Marketing Strategies: Understanding TAM can improve marketing approaches by highlighting benefits that resonate with
consumers. Example: A marketing campaign for an electric vehicle might focus on its environmental benefits and low running costs,
appealing to consumers’ perceived usefulness.

Marketing Implication of TAM:


Tailoring marketing strategies based on user acceptance. Focusing on features that enhance PU and PEOU. Engaging users through targeted
campaigns.

Example: Promoting ease of use in product advertisements.

TAM and User adoptation:


•Understanding user segments to tailor adoption strategies. Building trust through transparent communication. Offering trials to reduce perceived
risk.

Example: Free trials in software as a service (SaaS).


Conclusion:
TAM is crucial for understanding technology acceptance. Emphasizes the role of ease of use and usefulness. Applicable in various fields and
contexts. Guides the development and marketing of technologies. Helps improve user experiences and technology effectiveness.

Example: Companies adapting to remote work technologies post-pandemic.

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