ICT product diffusion in US and Korean markets

Abstract

Purpose – The purpose of this paper is to identify how adoption drivers change before and after key milestones of ICT product adoption (i.e. critical mass point (CMP) (adoption rate 16 percent), market saturation point (MSP) (50 percent) and new generation release point (NGRP)) based on actual subscriber data of the mobile communications industry that represents the ICT market, so that it has implications for the rejuvenation of ICT product adoption that has rarely been addressed in earlier studies. Design/methodology/approach – This study examined the overall characteristics of ICT product diffusion by tracking the actual patterns of US and Korean mobile market subscribers using the Bass diffusion model. Findings – This study found that innovation effects gain influences on ICT product diffusion after CMP, MSP and NGRP; imitators are becoming innovators by repeated rejuvenation experiences; and cultural differences have significant influences on imitators’ ICT product adoption, but not on innovators. Originality/value – These findings imply that rejuvenation enabled by technology innovation is a key success strategy to dominate the ICT market where the number of innovators, who have strong desires for new generation products, is constantly growing.