Technology Acceptance Model (TAM)

Firstly, TAM is a theoretical framework that has been used to explain why some people adopt technology and others do not. The theory aims to demonstrate the key factors which influence new technologies. The model assumes that the success of a system can be determined by user acceptance of the system, measured by the perceived usefulness of the system and the perceived ease of use of the system (Davis, 1989). Perceived usefulness is defined as “the degree to which a person believes that using a particular system would enhance his or her job performance. ”Perceived ease of use refers to “the degree to which a person believes that using a particular system would be free of effort” (Davis, 1989, p. 320). According to the model, a user’s perceptions about a system’s usefulness and ease of use result in an intention to use (or not use) the system (Davis, 1989; Venkatesh, Speier & Morris, 2000).

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Figure 4.2 Technology Acceptance Model Source: Davis, (1989)

However, despite the findings generally consistent with the TAM, there are reasons to believe that the theory’s application in respect of older people may be different. TAM does not fully influence the adoption of e-commerce. This is because of the differences in the individual characteristics between older people and the mostly young people (mostly university students) that have been used to test the model so far (see, for example, Gefen et al., 2003). TAM does not fully influence e-commerce as shown by McCloskey (2006)’s study which modified TAM by adding trust. The study then examined the impact attitudes has concerning ease of use, usefulness, and trust in using e-commerce. McCloskey (2006)’s findings showed that usefulness and trust were found to have a positive, direct affect on usage. Ease of use had a significant impact on usefulness while trust had a significant impact on both ease of use and usefulness. This shows that while older people may have no concerns with browsing on the internet or sending an email, (i.e., which relates to TAM) they are not eager to share their personal information or credit card details with a stranger, i.e. (which relates to e-commerce).

Another study which showed that TAM does not fully influence e-commerce was by McCloskey and Lepper (2010) who investigated the impact of age on e-commerce participation and its antecedents: usefulness, ease of information access, and trust. Their results showed that while ease of information access had a positive impact on usefulness, it had no direct impact on e-commerce participation. Greater perceptions of trust and

Perceived Usefulness External Variables Perceived Ease of Use Attitude

towards Behavioral _intention to use

Actual System

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usefulness were found to be positively related to e-commerce participation. The results also showed that the older people had the highest perception of the usefulness of e-commerce but the lowest perceptions of trust. Older people perceived less ease of information access and were less likely to participate in e-commerce than the younger age group. Also, the trust had positive impacts on ease of information access and usefulness.

Another study in Korea by Ryu et al. (2008) investigated older people specific constructs of an online user’s intention to participate in video user-created content (video UCC), and the relationship between these constructs and the constructs from the TAM were then tested. Although there was significant support for perceived benefit, perceived ease of participation, and perceived enjoyment Ryu et al. (2008)’s results showed that the extent of a match with their existing value, needs, and lifestyle (compatibility) do not directly affect the intention of participating in a video UCC, but are rather mediated by believed ease of participation and benefits. The results also showed that if older people have much experience in using similar services and that their experience was positive, they will expect the use of video UCC as being more beneficial for them.

In the USA, Gefen et al. (2003)’s study investigated two aspects of the decision why consumers return to a website, thereby examining the relationship between trust and TAM on intentions to purchase. The participants were mainly undergraduate and graduate business students. Gefen et al. (2003) found that online customers are influenced by their trust in the e-businesses, technological aspects of the website interface and that consumer trust is increased by aspects of the interaction. Also their results found that the more useful and easy to use the website in enabling the customers to accomplish their tasks, the more it will be used. The results also showed that experienced consumers' intentions to transact with the last online shop from whom they purchased depend on both trust and the two beliefs identified by TAM, perceived usefulness (PU) and perceived ease of use (PEOU). Gefen et al. (2003) also found out that having a conventional and familiar site increases its perceived ease of use and the effect of familiarity on trust was fully mediated.

Therefore, there is a need for researchers to come up with a theory or model which directly influence e-commerce, probably a modification of existing theories mainly TAM. Existing studies have used TAM (Gefen et al., 2003; McCloskey, 2006; McCloskey & Lepper, 2010) Innovation Diffusion Theory (IDT) (Ryu et al., 2008; Slyke et al., 2004) to explain e-

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commerce adoption by older people. However, these theories were originally developed to explain technology adoption in general (e.g., Davis, 1989) but not e-commerce. There are some reasons why the theories may and may not apply to the explanation of e-commerce adoption by the general population and specifically by the older people. For example, TAM may be applicable to e-commerce adoption to the extent that e-commerce requires the use of technology and as long as the individual concerned are comfortable with the use of technology (i.e., they have adopted technology), e-commerce adoption is a natural extension of the use of the computer for other purposes, e.g. browsing the internet, emailing, etc. However, it may also be argued that TAM may not apply in explaining or influencing e- commerce adoption because even if most older people are comfortable with browsing the internet, they may not be comfortable giving their credit card details on the internet.

Therefore, even if a website is useful and eases to use as implied by TAM, the trust may prevent people from adopting e-commerce. This is particularly so for older people given that existing research shows that older people are less trusting than the younger generation (McCloskey & Lepper, 2010). Consistent with this argument, McCloskey, (2009) found that trust was a more important issue than perceived easy of use and usefulness. So, for this reason, it is not at all clear whether TAM and other theories can explain e-commerce adoption by the elderly. Trust was also found to be important in a study by McCloskey and Lepper (2010) who investigated the impact of age on e-commerce, and their results revealed that greater perceptions of trust and usefulness were found to be positively related to e- commerce participation. The results also showed that even though the older people had the highest perception of the usefulness of e-commerce they had the lowest perceptions of trust making them less likely to participate in e-commerce compared to the younger age group.

4.2.4.2 Diffusion of innovations theory

Diffusion of innovations theory is another theory used in technology adoption. The theory examines the how, why, and at what rate new ideas and technology spread through cultures (Rogers, 1992). Diffusion is the process by which a new idea is communicated through specific channels over time among the members of a social system, and innovation is an idea, practice, or object perceived as new by an individual or another unit of adoption (Rogers, 2003). The four main elements which influence the spread of a new idea are the innovation, communication channels, time and a social system. Previous studies which