1999 B.C. Intell. Prop. & Tech. F. 060510

USAGE PROFILES OF USERS OF INTERACTIVE COMMUNICATION TECHNOLOGY: AN EMPIRICAL INVESTIGATION INTO THE SIGNIFICANCE OF SELECTED INDIVIDUAL ATTRIBUTES

Daniel J. Davied
James E. Fisher
Mark Arnold
David Johnsen
fnA

June 4-5, 1999

1. Abstract

This paper explores the usage of household communication technologies and the theoretical relationship of usage intensity, usage context, occupational prestige, and other household characteristics.

Results suggest that public policy makers, regulators, and researchers must look beyond technology ownership and toward technology usage. The traditional perspective on diffusion theory must expand to incorporate not only the adoption of an innovation, but the breadth and depth of its usage. Furthermore, the research presented here proposes that diffusion theory must also focus on the social system in which the product is used. In doing this, we will observe that multiple variables, especially the prestige and income constructs, are critical predictors of consumption of these technologies, and that the amount of variance explained by each variable varies significantly across usage context.

Therefore, public policy makers, regulators and other interested parties must consider the usage context related to the appropriation of communication technology. While government-financed activities to promote technology usage may increase telecommunication technology usage for some purposes, others may languish. Consistent with functional theory that stresses the achievement aspect of education whereby important skills are attained by, those with special merit, these research results support the proposition that those of a high social position may use communication technologies to enhance their social position. Those of low social position may be restricted in their usage of communication technologies more by their access to significant others, ability and aspirations than by family income.


2. Introduction

Communication technologies, perhaps more than any other modern commodity, symbolize the growing availability and influence of new technologies in everyday life. Previous research (c.f. Steinfield, Dutton, and Kovaric 1989) has implied that usage of these technologies has an impact on the family's educational achievement, personal development and family interaction. As these impacts are all socially desirable outcomes, we can understand the desire of public policy makers for the fair and equitable diffusion of communication technologies. Unfortunately, some families will not be able to, or will choose not to, participate in the dawning 'information revolution'.

Several authors have noted the social inequalities in access to telecommunication and information resources and the resulting unevenness in the ability of social and cultural groups to participate in this revolution. Yet, even if social inequalities were erased, integration of a technology into daily family life is not guaranteed; there is still uncertainty over the extent that communication technologies will become integrated into everyday life in the home. Despite ownership data and optimistic forecasts of continued adoption (i.e., increasing ownership), descriptive data are sparse concerning what actually happens after a family acquires the technology. Does it entertain in the living room, facilitate work in the study, or gather dust in the closest? Current research provides little insight into the usage intensity and usage context of communication technologies. Clearly, a greater understanding is needed of the factors that contribute to the intensity and variety of usage of communication technologies.

While research on usage profiles and technology clusters is important to managers, researchers and regulators, a problem exists in the current innovation literature in that no research is available which can be generalized across a product or technology segment, with any degree of confidence. This paper explores the usage of household communication technologies and the theoretical relationship of usage intensity, usage context, and occupational prestige. As multiple technologies are available to satisfy our individual needs, our choice of the 'best' technology(ies) is based on our experience with the medium itself, the social circumstances surrounding its use, and the social standing of the consumer. This study provides greater understanding of the usage profiles for communication technologies and lays the foundation for further theoretical and empirical work.

3. Information Revolution

The information revolution has created a new 'post-industrial paradigm,' transforming the way people work and live and also making possible new products, services and industries (Elliott 1994). Technology has bestowed participants with greater control over their environments and the terms of information exchange. Rosen and Weil (1995) noted that the 'home and office of the 1990s has become a show place for advances in computerized technology.' Williams (1987) adds that communication technologies 'are now becoming so common Ðe.g., cable television, video-cassette machines, new telephones, office technologies, personal computers, ... [and] are having increasing impact upon the social, economic and cultural aspects of our existence.'

The merger of the computer and the telephone is also prompting the emergence of a communications revolution. Traditionally, telephones have served as the medium that links individuals in remote locations. Today, information technologies are changing the way we work, play, and think. Cellular phones and pagers allow us to stay in touch without being tethered to a fixed location Ðoffice or home. Electronic mail is replacing the pen and paper and studies have found that heavy e-mail users are better informed than their colleagues are (Baig 1994). Computers and faxes make it possible for telecommuters to avoid the daily rigors of traveling to the office. New communications and computing technologies allow consumers throughout the world to manipulate and distribute information as never before through the ownership and usage of the newer communication technologies. Furthermore, the explosion in communication capacity and networking technologies (e.g., fiber optics, wireless transmission, satellites, and Infobahns) will put amazing amounts of low-cost, high-speed communications at our disposal (Verity 1994).

4. Social Impacts

The explosion of the information and communication revolution is having a dramatic impact on each of us. Speculation about information technology and its effect on our lives is a subject found in such works as Marc Poratt's analysis of changes in the workplace (The Information Economy 1977), Joseph Pelton's examination of world telecommunications (Global Talk 1981), James Martin's consideration of the social impacts of telecommunication technologies (The Wired Society 1978), Wilson Dizard's evaluation of world information orders (The Coming Information Age 1982) or Williams broad view of communication and changes as described in The Communications Revolution (1982).

As individuals we are confronted with new communication devices almost every day. Arnold (1997) observes that we are in the 'midst of the rapid proliferation of goods and services throughout certain segments of society that facilitate the flow of information and improve interpersonal communication.'

At the same time, some are not participating in the information revolution. To some individuals, the idea of interfacing with a digital, virtual world is daunting. Others have noted that social inequalities may limit those who will participate in the information revolution. Several authors (e.g., Schuler 1994, Nowotny 1982, Calhoun 1986, Robins and Hepworth 1988, Murdock and Golding 1989, Graham and Marvin 1996) have noted the social inequalities in access to telecommunication and information resources, and the resulting unevenness in the ability of social and cultural groups to participate in this revolution.

The world of information technology is a world made for the very fortunate few . . . who sit with their little computers and their telephones and deal with information all over the world. . . . And then they'll be the rest, who don't have access to this technology, who don't know how to use it, who don't know how to make products out of it. (Graham and Marvin 1996, 189)

Ultimately, it will be our collective acceptance of these new technologies and products that will determine the breadth, depth, and tempo of the information revolution and technology diffusion. Yet, even as these products diffuse throughout society, many will be excluded from participation in the information and communication revolutions.


5. Insights from Past Diffusion Research

The diffusion of innovations is one of the most widely researched topics in the behavioral sciences. Dating from the late 1800's in anthropology and later in sociology, research on the diffusion of innovation has been an interest of many scientific disciplines.

Despite the massive research effort represented by the existing body of diffusion research, many observers are critical of the methodology, assumptions and concepts associated with such studies (c.f., Hirschman 1979; Mahajan, Muller and Bass 1990). One specific criticism is that some authors fail to make a distinction between trial (i.e., single use of the product) and adoption (i.e., multiple uses of the product) in discussing innovative behavior. Those studies that did consider usage levels were generally restricted to low technology products. Thus, additional research that explicitly considers the usage level and usage purpose (e.g., business, social, transaction, and entertainment) for higher technology products is warranted.

6. Research Methodology

A survey of technology adoption and usage based upon a fully described sample was conducted. The study utilized a pretest questionnaire and the main survey questionnaires. The data were collected in 1997 from adult participants in a consumer mail panel within the United States. A quota sample approach was used so that the characteristics of the respondents would be comparable to nationally represented census quotas. The quota was balanced against the following five factors: geographic region, household income, respondent age, household size, and population density. The sample consisted of 1155 families. A usable sample size of 840 participants was obtained for a response rate of 72.7 percent.

7. Questionnaire

The eight-page questionnaire was constructed using scales presented in past research (cf., Arnold 1997, Ram and Jung 1990). The wording of demographic questions was based, in part, on past research on family financial stress and strain (e.g., Bruce, 1996). The questionnaire was subjected to a pretest using a separate sample of 30 consumers to determine any problems related to question wording, ambiguity, and so forth.

The questionnaire was mailed to respondents by a commercial market research firm, utilizing its a consumer mail panel. Each subject was asked to complete the questionnaire and indicate ownership, utilization (i.e., how often he or she had used each of the technologies), and the purpose of their usage for 22 communication technologies. Each adult was asked to also provide demographic characteristics.

After the research firm had processed and tabulated all closed-ended questions, the questionnaires and data were returned to the researchers. Open-ended questions were coded by the researchers. Non-response, while generally a significant problem with mail surveys, did not pose significant threats to validity as the response rates for this consumer mail panels was very high (i.e., over 70%).

8. Technology Selection

This study focuses on communication technologies that are still in the process of diffusion throughout society, analogous to Parker and Holder's (1996) "newer information and communication technologies" (NICTs). The technologies selected have experienced increasing market penetration rates over the last 10-15 years, with some of the newer technologies (e.g., Internet) experiencing recent "explosive" growth in popularity. We focus on technologies still in the process of diffusion to ensure variance in ownership and usage exists Ða study examining the traditional telephone would find little variance in ownership as this technology is found in nearly all American households. However, usage intensity and usage variety remain conceptually and analytically isolated from the "newness" of the technology with the exception of immediate post-purchase "bursts" of usage of some products.

Figure 1 illustrates the technologies selected for use in this study. A mixture of both products and services were selected for inclusion in the list of communication goods. However, the products/services were selected and presented in a manner so as to minimize ambiguity.

Interactive Communication

Non-interactive Communication
Technology

Technology



Cordless telephone

Satellite dish
Cellular telephone

CD player
Send/receive pager

Cable TV
Modem

VCR
Fax machine

Police/weather scanner
PC fax card

Camcorder
2nd telephone line

Video disk player
2nd cellular telephone

Answering machine
Call waiting service


Call forwarding service


Voice mail service


On-line service


Internet access service


ISDN service


Personal Computer


Figure 1 ÐCommunication Technologies Data Selection


9. Dependent and Independent Measures

This research uses two categories of dependent measures–ownership and usage–and four independent measures–occupational prestige, income, education and age. These measures are consistent with the research measures used by Arnold (1997).


Ownership

The simplest test of consumption differences is to measure product ownership. Numerous studies have explored product ownership particularly in the earlier product adoption and social class studies (cf., Myers and Mount 1973; Myers, Stanton and Haug 1971, Taylor 1977). This study similarly must establish product ownership.

For the purposes of this study, product ownership is evident if the respondent indicates that he/she either owns or leases a communication good, or subscribes to a communication service. However, in order to isolate the variance that could be caused if the communication good is provided by an employer or some other arrangement (i.e., products not evaluated and selected by the respondent), these goods are excluded from analysis. The exclusion of employer-provided products acts to prevent any possible inflation of the expected relationship between occupational prestige and ownership.


Usage Frequency

While often used because of its simplicity, product ownership is generally regarded as insufficient by itself when examining consumption patterns. Hisrich and Peters (1974) argued that frequency of usage was more suitable than the usage/nonusage (or ownership/nonownership) dichotomy in segmenting a market.

In spite of its superiority as a measure, Ram and Jung (1990) noted that, historically, product usage has been a relatively neglected construct in marketing, as both its conceptualization and measurement have generally been inadequate. The authors defined product usage as consisting of usage frequency and usage variety. Usage frequency, according to Ram and Jung (1990, 68), refers to "how often the product is used (usage time) regardless of the different applications for which the product is used."

Usage variety, on the other hand, refers to the "different applications for which a product is used or the different situations in which a product is used, regardless of how frequently it is used" (Ram and Jung 1990, p. 68). Variations of the usage variety conceptualization have appeared in Gatignon and Robertson's (1985) notion of product width and depth, and Zaichowsky's (1985) conceptualization of depth and breadth of product usage.

Ram and Jung's (1990) usage frequency scale has proved to be highly reliable and of demonstrable convergent validity. This study incorporates Ram and Jung's (1990) scale for measuring usage frequency, and modifies their concept of usage variety to better fit the nature of communication technology. Figure 2 below illustrates the scale used.


At present, how often do you use this product?

1=less than once a month
4=few times a week
2=once a month
5=once a day
3=once a week
6=more than once a day


Figure 2 ÐRam and Jung's (1990) Usage Frequency Scale (reverse coded)


Usage Variety

Usage variety, according to Ram and Jung (1990), includes the different applications for which the product is used or the different situations in which the product is used. This study tailors this conceptualization of usage variety for communication technology products based on three of William's (1987) four usage dimensions of communication technology Ð business, social, transactional Ðand adds a fourth dimension, entertainment.

The key to our understanding of consumer ownership and usage of communication technologies is identifying the motives or needs that elicit behavior (Williams and Dordick 1985). This study is built on the belief that interactive communication technologies facilitate interpersonal communication for business, social and transactional purposes and that this communication is integral to a consumer's social participation and the maintenance of his/her social network and lifestyle. Furthermore, the degree to which the business and social domains coalesce is positively related to a consumer's social standing (Fisher and Boughton 1991, Gilbert and Kahl 1982). Therefore, the purpose of the interpersonal communication and the consumer's social standing will affect the acceptance and usage of interactive communication products.


Occupational Prestige

Otto (1975) noted that, while occupation, education, and income have figured prominently as indicators of social position, occupation has been the most important. Otto noted that whereas classes arise out of common economic interests (i.e., production and acquisition of goods), status is rooted in family experience and stratified according to their 'styles of life' (i.e., consumption of goods). Thus, Otto suggests that the superior approach to measuring family status is by employing occupational prestige: "While occupational prestige certainly does not exhaust the range of status indicators, we propose that it is a summary measure of a family's general social standing within the context of modern societies" (p. 326).

Otto (1975) proposed that occupational prestige is the single, best indicator of a family's social position in modern industrialized societies because of the inadequacy of composite measures of class or status, and because of the extraordinary reliability of the occupational prestige construct. Given the limitations of the composite approach to measurement, many scholars have reached a consensus that occupational prestige is the preferred status indicator and the best single indicator of a family's social status.

Occupation prestige has been shown to be relatively robust construct. The evaluation of occupations has proved to be largely invariant under widely varying methods of measurements (Otto 1975) and occupational prestige has been shown to be a stable phenomenon (Dunkerly l975). Dunkerly (1975) noted that while there had been large changes in both the education and income associated with different occupations between 1925 and 1963, the prestige attached to those occupations has remained virtually unchanged.

Occupational prestige is most simply defined as societal judgment as to the worth of individuals or groups (Montagna 1977, 30) and, as such, refers to differential societal evaluations of occupations according to their social rank or standing. The most common method of measuring occupational prestige in the United States is the reputational approach, where occupations are rank ordered on the basis of their 'general standing' (or social standing, social status, desirability, et cetera) in society. For example, Nakao and Treas (1994) instructed respondents to arrange cards identified with occupational titles on a "ladder" according to what they thought about the "social standing" of the particular occupation. We employed a measurement approach based on Nakao and Treas' occupation category scheme; this approach is discussed in greater detail later.

Family Income

In the tradition of the social class versus income literature, total family income is gathered and treated as a competing explanatory variable in this study. Coleman (1983), Schaninger (1981), and others noted that income was closely related to consumption because it reflects one's ability to buy . Rogers (1983), in his comprehensive review of the diffusion literature, pointed out that the explanation typically offered for the relationship between social class and the adoption of innovations is based largely on the greater financial resources of consumers of higher standing. Other researchers that have specifically investigated communication technologies (cf., Dickerson and Gentry 1983, Rosen and Weil 1995, Steinfield et al. 1989) have reached similar conclusions.

Coleman (1983), in agreement with Schaninger (1981) and others (e.g., Reynolds 1965), suggested that researchers should consider both social class and income when trying to understand the consumer. The thesis developed in this paper relies on the argument that consumption of these goods, while certainly affected by income, is not driven by income in the way it is by the family's social standing.

Consistent with Otto's (1975) definition of family income as one of the "conceptually unambiguous" constructs, total family income is gathered via an item with a categorical response format.

Education
Numerous researchers (e.g., Arber and Ginn 1992; Coleman 1983; Gronhaug and Venkatesh 1986; Lin, Ensel and Vaughn 1981; Seron and Ferris 1995) have trumpeted the significance of education as a moderating factor of product consumption. Education generally correlates positively with the ability to handle more abstract and complex problems and previous exposure to formal training, both of which enable the individual to handle situations involving the use of complex products and services (cf., Dickerson and Gentry 1983). Educational attainment is also a key indicator of cultural capital. Thus, we thus should expect a relationship between education and ownership and usage of communication technologies. Educational attainment is gathered for both husband and wife, and summed to arrive at a total family educational attainment indicator. This is conceptually consistent with measuring the unit of analysis as the family, and consistent with guidance offered in the literature on measuring education (cf., Coleman 1983; Otto 1975).
Age
Dominguez and Page (1981) noted that many of the past studies in social stratification have confounded the effects of intervening variables or ignored them altogether. Otto (1975) encouraged researchers to include other potentially relevant variables, such as age, in addition to occupational prestige, in research studies on social status. Coleman (1983) further noted that other variables, such as income, could vary according to the consumer's location in the age cycle.

Age is an important explanatory variable in any study concerning the investigation of consumption patterns (Arnold 1997) as studies have found an important relationship between age and usage of high technology goods (c.f., Rosen and Weil 1995; Zeithaml and Gilly 1987).

Age has also proven itself a valuable indicator of one's location or position within the family life cycle. A common approach to measuring a family's membership in a life cycle category is based on Wells and Gubar's (1966) suggestion that the family's life cycle position be ascertained from the age of the male head of the household (Wilkes 1995). Gilly and Enis (1982) and other researchers have opted to use the female's age in defining the life cycle categories because they believed that the presence or absence of children was a critical determinant of life cycle stage and that age 35 was an important milestone for women regarding childbearing.

Since we have evidence that both the husband and wife's ages are important and since the unit of analysis for this study is the family, age is gathered for both spouses and averaged before inclusion in the research model.

10. Measurement Approach

The research instrument has two items to record the respondent's occupation. The first is an open-ended response format asking respondents simply to fill in their formal occupational title. The second is a categorical response format allowing respondents to also check the occupational category that most closely corresponds with their occupation. The categorical response incorporated into this instrument was based on Nakao and Treas' (1994) occupational category scheme. The categorical data will be used if a particular occupational title is ambiguous.

When measuring occupational prestige in family research (i.e., considering the family as the unit of analysis), an analytical problem arises regarding how to incorporate the respondent's working spouse's prestige score. Traditional sociological analysis has relied on using the status of the male head of the household as a proxy for the family's social status. This approach has assumed that the husband was the primary breadwinner, that the wife works to provide luxuries for the family, and the family is unaffected by the status normally associated with the wife's occupational position (Philliber and Hiller 1978). However, many contemporary families are chiefly supported by the wife's occupation. Given the changing makeup of the workplace, there definitely appears to be a need to incorporate the prestige of the working wife. Coleman (1983) urged researchers to gather information regarding the wife's occupation and educational attainment, as these variables are indirect measures of the family's social horizons. Philliber and Hiller (1978) suggested that the wife's occupational attainment has significant implications for the social status of the family as a whole and have challenged the traditional assumption that both husband and wife share the same social status. Others (Baxter 1994, Davis and Robinson 1988) have reached similar conclusions.

Otto (1975) addressed the issue of dual income households by noting that the Census "demonstrates sensitivity" to this contemporary structural reality by assigning socioeconomic status to a family on the basis of the family's "chief" earner rather than on the basis of the male earner. Consistent with the Census approach of assigning a family's socioeconomic status, the approach adopted in this study will be to gather information regarding the "chief" earner and define the family's social status based on the occupational prestige score of the 'chief' earner.

After the data are collected, the responses to each of the two occupation items was inspected and an occupational prestige score will be assigned based on Nakao and Treas' (1994) occupational prestige inventory for 889 individual occupational titles. Responses to the open-ended occupation item will be matched with an appropriate occupational title in Nakao and Treas' (1994) inventory and the associated occupational prestige score will be assigned to that case. This approach and additional formalized coding rules for converting occupational titles to occupational prestige scores are outlined by Treiman (1977, 214-222). These rules provide a rigorous framework for coding and suggest remedies for cases that are difficult to code.

11. Hypotheses

The following hypotheses propose a theoretical relationship among usage intensity, usage context and selected family attributes. These premises suggest that these attributes are critical predictors of technology consumption, but that the amount of variance explained by each variable varies significantly across usage context.

Hypotheses 1 through 3

The first three hypotheses suggest a significant, positive relationship exists between prestige and the number of interactive technologies used for a specific purpose. Furthermore, these three hypotheses assert that prestige will be a superior predictor of the number of technologies used than income, age, or education. Multiple regression analysis will be employed to analyze the relationship between a single metric dependent variable and several metric independent variables. Support for the hypotheses will be found if: (1) the regression coefficient for occupational prestige is positive and significant, and (2) the beta coefficient (coefficients resulting from standardized data) for occupational prestige is greater than the beta coefficients for the other variables. These three hypotheses are oriented to testing the influence of occupational prestige upon the usage of a cluster of communication technologies for a specific purpose. As this thesis is focused on the usage profile of users of interactive technology, non-interactive technologies or interactive technologies which are 'not used' for a given purpose will not be tallied.

For Hypothesis 1, a count will be taken of the number of interactive communication devices used for business purposes by a respondent. The count will be weighted according to frequency of usage whereby 'seldom' use, 'occasionally' use, and 'frequently' use are given weights of 2, 3, and 4, respectively. This weighted value of usage frequency will be the dependent variable. The independent variables will be occupational prestige, income, education and age.

In order to eliminate the problem of dealing with different units of measurement and to allow us to later assess the relative impact on the criterion (dependent) variable, the predictor (independent) variables will be transformed or standardized into new measurement variables with a mean of 0 and a standard deviation of 1. According to our thesis, we should see (1) positive significance for occupational prestige after removal of income, education and age effects and (2) the beta coefficient for occupational prestige should be great than that for income, education, or age.

Hypothesis 2 suggests that occupational prestige will have a greater influence on the number of interactive communication devices used for social purposes by a respondent than income, education, or age. The approach here will be similar to that of Hypothesis 2 Ða weighted value of usage frequency will be calculated for interactive communication devices used for social purposes by a respondent and will serve as the dependent variable. The independent variables will be occupational prestige, income, education and age. Support of the hypothesis is provided if there is (1) a positive significance for occupational prestige, after removal of income, education and age effects and (2) the beta coefficient for occupational prestige greater than that for income, education, or age.

Likewise, Hypothesis 3 suggests that occupational prestige will have a greater influence on the number of interactive communication devices used for service transactions by a respondent than income, education, or age. Again, the approach here will be similar to that of Hypothesis 1 Ða weighted value of usage frequency will be calculated for the interactive communication devices used for service transactions by a respondent. This weighted usage value will be the dependent variable. The independent variables will be occupational prestige, income, education and age. Support of the hypothesis is provided if there is (1) a positive significance for occupational prestige, after removal of income, education and age effects and (2) the beta coefficient for occupational prestige is greater than that for income, education, or age.

Hypothesis 4

Hypothesis 4 concerns the relationship between occupational prestige and usage of communication technologies used for entertainment purposes. Specifically, we suggest a significant, negative relationship exists between prestige and the number of interactive technologies used for entertainment purposes. Again, multiple regression analysis is well suited to analyze the relationship between a single metric dependent variable and several metric independent variables. A weighted value of usage frequency will be calculated for the interactive communication devices used for entertainment purposes by a respondent. This value of usage frequency will be the dependent variable and the independent variables will be occupational prestige, education and age. According to our thesis, we should find that the regression coefficient for occupational prestige is negative and significant, after removal of income, education and age effects.


12. Results

Hypotheses 1 through 3

The first three hypotheses suggest that a household's prestige level is positively related to usage of interactive technologies used for a specific purpose. Furthermore, these three hypotheses assert that prestige will be a superior predictor of the intensity of usage for each purpose than income, age, or education. Multiple regression analysis is employed to analyze the relationship between a single metric dependent variable and several metric independent variables.

Hypothesis 1

Hypothesis 1 proposes a positive and significant relationship exists between prestige and business usage level for interactive technology devices. Secondly, Hypothesis 1 proposes that prestige is a relatively superior predictor of business usage than is income, age, or education.

H1: A household's social standing will be a superior predictor for usage of technologies used for business purposes than will be age, education or income.

For Hypothesis 1, the aggregate usage for business purposes was employed as the continuous dependent variable. The standardized values for occupation prestige, age, education, and income were the continuous independent variables. In order to eliminate the problem of dealing with different units of measurement and thus reflect the relative impact on the criterion (dependent) variable, the predictor (independent) variables were transformed into standardized variables with a mean of 0 and a standard deviation of 1.

TABLE 1
REGRESSION RESULTS:
BUSINESS USAGE OF INTERACTIVE TECHNOLOGIES
Variable
Std. Beta
Tolerance
t-stat.
p-value





Prestige
0.2005
.8103
6.199
0.0001
Age
-0.1511
.9744
-5.129
0.0001
Education
0.1061
.7314
3.110
0.0019
Income
0.3313
.7688
9.915
0.0001





Adjusted R 2
.2784



F-Statistic
82.110



(d.f.= 841)




p-value
0.0001



Table 1 shows that occupational prestige is significantly related to the aggregate business usage of interactive technologies after controlling for age, education and income effects. The standardized beta value of 0.2005 for prestige confirms the positive relationship between prestige and overall usage. The t-statistic for prestige (t=6.199) indicates that the relationship is significant at the p<.0001 level. The adjusted R 2 (e.g., adjusted for the number of predictor variables) is 0.2784, indicating that the four predictor variables explain almost 28 percent of the variation in overall usage. We also note that the F-statistic is significant (F=82.110, p<.0001), indicating that the amount of variation explained by the predictor variables was not 'by chance.'

However, Table 1 also shows that the t-statistics for age and income (t= -5.119 and 9.915, respectively) are significant at the p<.0001 level and the t-statistic for education (t= 3.110) is significant at the P<.002 level. Furthermore the standardized beta value of 0.3313 for income is greater than beta value for prestige. As the beta coefficient for income is greater than that for occupational prestige, Hypothesis 1 is not supported.

However, it should be noted that prestige is a superior predictor than either age or education. While previous research has shown that age and education are important factors in product consumption Ðand are significantly related to the aggregate business usage of interactive technologies in this study Ðboth age and education are inferior to occupational prestige as predictors of aggregate business usage. We further observe that, among adults, age is inversely related to the frequency of business usage of telecommunication products.

Hypothesis 2

Hypothesis 2 suggests that occupational prestige will have a greater influence on the number of interactive communication devices used for social purposes than income, education, or age. Like Hypothesis 1, this hypothesis was tested using multiple regression analysis with the aggregate usage for social purposes as the continuous dependent variable and the standardized values for occupation prestige, age, education, and income as the continuous independent variables.

H2: A household's social standing will be a superior predictor for usage of technologies used for social purposes than will be age, education or income.

With references to Table 2, the t-statistic for occupational prestige (t=6.539) indicates that the relationship to aggregate social usage of interactive technologies after controlling for age, education and income effects is significant at the P<.0001 level. The standardized beta value of 0.2144 for prestige confirms the positive relationship between prestige and overall usage. The adjusted R 2 is 0.2638, indicating that the four predictor variables explain over 26 percent of the variation in overall usage. Furthermore the F-statistic (F=76.331) is significant, indicating that the amount of variation explained by the predictor variables was not very likely to occur 'by chance.'

TABLE 2
REGRESSION RESULTS:
SOCIAL USAGE OF INTERACTIVE TECHNOLOGIES
Variable
Std. Beta
Tolerance
t-stat.
p-value





Prestige
0.2140
.8103
6.539
0.0001
Age
-0.2182
.9744
-7.316
0.0001
Education
0.0327
.7314
0.947
0.3441
Income
0.3283
.7688
9.706
0.0001





Adjusted R 2
.2638



F-Statistic
76.331



(d.f.= 841)




p-value
0.0001



However, Table 2 again shows that the t-statistics for age and income (t= -7.316 and 9.706, respectively) are also significant at the p<.0001 level. Finally, the standardized beta value for income (0.3283) is greater than the beta value for prestige. As the beta coefficient for income is greater than that for occupational prestige, Hypotheses 2 is not supported.

We further note that the standardized beta coefficient values for prestige and age (beta= 0.210 and -0.2182, respectively) are almost identical thereby indicating that the magnitude of their respective effects on the dependent variable are similar, although age is inversely related to the social usage frequency of telecommunication products. Furthermore, in a comparison to business usage (see Table 1), we find that the contribution of age as a predictor of social usage has increased (beta of -0.2182 versus -0.1511) while the predictive power of income and prestige are relatively similar for business and social usage. However, in contrast to its significance as a predictor of business usage, education is not a significant predictor of social usage as shown by its t-statistic (t= 0.947).

Hypothesis 3

Hypothesis 3 suggests that occupational prestige will have a greater influence on the number of interactive communication devices used for service transactions by a respondent than income, education, or age. Again, this hypothesis was tested using multiple regression analysis. The aggregate usage for service transactions by a respondent is the continuous dependent variable and the continuous independent variables are the standardized values for occupation prestige, age, education, and income.

Hypothesis 3 proposes the existence of a positive and significant relationship between prestige and the service usage level for interactive technology devices after removal of income, education and age effects. Hypothesis 3 also proposes that prestige is a relatively superior predictor of service usage that is income, age, or education.

H3: A household's social standing will be a superior predictor for usage of technologies used for service purposes than will be age, education or income.

As shown in Table 3, the occupational prestige construct is significantly related (t= 5.174, p<.0001) to the aggregate service usage of interactive technologies after controlling for age, education and income effects. The standardized beta value of 0.1760 for prestige confirms the positive relationship between prestige and overall usage. The adjusted R 2 (0.2074) indicates that the four predictor variables explain almost 21 percent of the variation in overall usage. Finally, the significant F-statistic (F=56.022), suggests that these values were not derived 'by chance.'

However, Table 3 also reveals that age and income are also significant at the p<.001 level

(t= -3.837 and 9.418, respectively). Again, the standardized beta value for income (0.3310)is greater than beta value for prestige.

TABLE 3
REGRESSION RESULTS:
SERVICE USAGE OF INTERACTIVE TECHNOLOGIES
Variable
Std. Beta
Tolerance
t-stat.
p-value





Prestige
0.1760
.8103
5.174
0.0001
Age
-0.1189
.9744
-3.837
0.0001
Education
0.0361
.7314
1.006
0.3146
Income
0.3310
.7688
9.418
0.0001





Adjusted R 2
.2074



F-Statistic
56.022



(d.f.= 841)




p-value
0.0001



Given that the beta coefficient for occupational prestige is less than that for income, hypothesis 3 is not supported with respect to a household's social standing being a superior predictor for service usage than is income. However, support is provided with respect to a household's social standing being a superior predictor for service usage than is age or education.

In a comparison of service usage to business and social usage (see Tables 1 and 2), we find that the contribution of prestige and age as predictors of usage has decreased while the predictive power of income is relatively similar for all three usage contexts. In contrast to its significance as a predictor of business usage, education is not a significant predictor of service usage as shown by its t-statistic (t= 1.006).

Hypothesis 4

Like the previous three hypotheses, hypothesis 4 also addresses the relationship between occupational prestige and usage of interactive communication technologies used for a specific purpose. However, unlike hypotheses 1 through 3, hypothesis 4 proposes a significant, negative relationship exists between occupational prestige and the aggregate usage of interactive technologies utilized for entertainment purposes.

H4: A household's social standing will be negatively related to the aggregate usage of interactive communication technologies used for entertainment purposes.

The aggregate usage for entertainment purposes by a respondent is the continuous dependent variable and the continuous independent variables are the standardized values for occupation prestige, age, education, and income. Again, multiple regression analysis is employed to analyze the relationship between a single metric dependent variable and several metric independent variables.

According to our thesis, the regression coefficient for occupational prestige should be significant as indicated by the t-value and the regression coefficient should be negative, after removal of education and age effects.

Table 4 shows that occupational prestige is significantly related to aggregate usage of interactive technologies for entertainment after controlling for age, education and income effects (t= 4.735, p<.001). However, the standardized beta coefficient of 0.1633 for prestige confirms a positive relationship between prestige and overall usage. The tests for the regression model revealed no serious violations of the underlying assumptions of the regression model. As the regression coefficient for occupational prestige is positive, hypothesis 4 is not supported.

TABLE 4
REGRESSION RESULTS:
ENTERTAINMENT USAGE OF INTERACTIVE TECHNOLOGIES
Variable
Std. Beta
Tolerance
t-stat.
p-value





Prestige
0.1633
.8103
4.735
0.0001
Age
-0.1954
.9744
-6.218
0.0001
Education
0.0577
.7314
1.587
0.1129
Income
0.2670
.7688
7.491
0.0001





Adjusted R 2
.1879



F-Statistic
49.632



(d.f.= 841)




p-value
0.0001



However, the standardized beta coefficients for prestige and income (beta = 0.1633 and 0.2670, respectively) are smaller values than for any other usage context (i.e., business, social, or service). Thus, the contribution of prestige as a predictor of service or entertainment usage is less than that for business or social usage.

13. Discussion

The foregoing research provides additional information on the relationship between a "basket" of communication technologies and occupational prestige, income and other socioeconomic variables. Given the large sample size and data collection methodology, it is felt that the results are significant and relevant.


Theoretical Implications

The theoretical implications of this research emanate from its unique aggregated analysis of the consumption of communication technologies. The findings contribute to several research themes, namely, social stratification theory, diffusion theory, communication technology usage research and the social class versus income debate. The research implications in each of these areas and methodological issues will be addressed in this section.


Social Stratification Theory

It has long been accepted that, throughout the buying and consumption process, various factors Ða person's age, income, social class, and income Ðmay influence buyer behavior (Rachman, Mescon, Bovee, and Thrill 1993). Although geographic and demographic bases for segmenting markets are the most commonly employed (David, 1995), social class has been widely accepted as a basis for segmenting consumer product markets. However, most of the research base cited in support of the usefulness of social class as a segmentation variable is over three decades old (cf. Coleman 1960, Martineau 1958, and Levy 1966).

In the late 1960s, the usefulness of social class as a significant stratification variable was questioned. Critics challenged the value of social class because demographic trends Ðchanges in income, education, leisure time, population shift, and migration to suburbia Ðcut across traditional class boundaries leading some to conclude that social class differences in shopping behavior were diminishing (cf. Rich and Jain, 1968). Other critics contended that the absence of more 'objective status indicators around which classes may crystallize makes consensus regarding class identifications ambiguous if not impossible (Otto, 1975). Finally, because some indicators of social class have failed to demonstrate the existence of groupings or because the standards of living were becoming similar for the upper working and lower middle classes, many critics have argued that the U.S. was becoming 'classless' (cf. Faris 1960, Wilensky 1966).

More recently, proponents have contended that social class is a valuable segmentation base because it captures lifestyle differences that income ignores. However, they admitted that the relative superiority of a given segmentation variable will vary among product classes.

This research builds on the foundation provided by Hisrich and Peters (1974), Schaninger (1981), Arnold (1997) and others. Consistent with Arnold's (1997) findings, we have demonstrated that occupational prestige, as a measure of social standing, is very significant and relevant in explaining the depth of consumption of interactive technologies and we provided support of a linear relationship between usage and socioeconomic variables. However, we found that income also is a significant factor in explaining depth of usage of interactive technologies.


Social Class versus Income

The results suggest that researchers must be cautious and guard against generalizations not supported by the data. Hisrich and Peters (1974), studying entertainment activities, concluded that social class yielded higher correlations than income when frequency was examined. Arnold (1997) found that social class is generally superior to income for influencing consumption of interactive communication technologies. However, this research found income to have a greater influence when the respondent's response was transformed to indicate technology usage on a scale from once a month to 50 times per month.

Schaninger (1981) generalized that social class is a better segmentation basis for low-cost goods that reflect an underlying lifestyle, value, or homemaker role differences not captured by incomes. Schaninger's research, while providing a valuable contribution to the social class versus income controversy, was generally atheoretical in nature. The research methodology was one of selecting an assortment of goods (for example, appliances, soft drinks, mixers, and alcoholic beverages), finding a relationship between these goods and the socioeconomic variables, and then explaining the relationships ex post. Arnold (1997) improved on Schaninger's contribution by preceding the data analysis with a carefully articulated theoretical basis and focusing his investigation on a single product class. However, Arnold implied that the superiority of social class as a determinant of usage could be generalized to all interactive technologies for business and social purposes, although prestige was significant at p<.10 for only six of the fourteen technologies analyzed.

Contrary to Arnold's (1997) and Schaninger's (1981) conclusions, we found that occupational prestige, as a measure of a family's social position, was inferior to income for a class of products that are analyzed as a single cluster of products. The superiority of income was supported for all usage purposes, namely business usage, social usage, transactional or service usage, and entertainment usage.

An analysis of the relationship between social class, income and consumption on a disaggregated basis using ordinary least square regression was completed. It is interesting to observe that occupation prestige is a relatively superior predictor of usage for some technologies. We also observe that occupational prestige is a significant predictor (p<.10) of business usage for five of the technologies and of social usage for 2 technologies, but is significant for only 1 technology for service usage and is not significant for any technologies with regards to entertainment usage. This relationship is summarized in Table 5. From this observation one inference consistent with the data is that occupational prestige is a stronger explanatory factor for communication technology usage only when used for purposes with a social dimension (e.g., business or social purposes) as compared to purposes that are noninteractive in nature (e.g., entertainment). These results based on a disaggregated view of the product class may be interpreted as somewhat consistent with Schaninger's and Arnold' generalization regarding social class effects. This interpretation between an aggregated and disaggregated viewpoint will be discussed in further detail later.

TABLE 5
REGRESSION RESULTS:
SIGNIFICANT PRESTIGE-USAGE RELATIONSHIPS


Usage Context
Technology
Business
Social
Service
Entertainment





Cordless Phone

3.298 a


Cellular Phone
2.751 a



PC Modem
2.496 a



Answering Machine
1.736 b



On-Line Service
1.805 b



Personal Computer
3.693 a

2.594a

Voice Mail Service

-1.786 b







a. p<.05

b. p<.10


Diffusion Theory

As noted earlier, consumers often do not view innovations in isolation but rather as a basket or cluster of products. However, cluster boundaries are often difficult to define. The diffusion literature remains relative silent on the methodology for defining a technology cluster other than recommend that user's perceptions of the innovations should be considered. Diffusion theory attests that consumers with similar characteristics and lifestyles are more likely to share perceptions of a product or group of products. Previous research by Arnold (1997) confirmed that occupational prestige is significantly related to the usage of interactive communication technologies but not significantly related to the usage of non-interactive communication technologies. Thus, the social attributes of an innovation must be considered. Future product adoption models will certainly benefit by recognizing the importance of social stratification in the adoption of certain innovations.

Consistent with the previous research of Arnold (1997), the product cluster examined was defined based on interactivity. However, contrary to Arnold's conclusion based on an analysis of each product individually, our aggregated analysis found social prestige to be inferior to income in its influence of overall usage and usage for four specific purposes of interactive technologies. Based on this discrepancy, we can only assume that viewing all interactive technologies as a single cluster is an oversimplification. Rather, we believe that the cluster must be divided into smaller baskets based on technology type (e.g., voice/data technologies) and product scarcity in order to understand better the product's social meaning and the social prestige of its respective users.

The analysis results provide initial support for our belief that the cluster boundaries must be drawn based on multiple technology attributes (e.g., interactive technology, simulates face-to-face interaction, voice technology, etc.). Furthermore, analysis suggests that the product cluster boundaries are dependent on product attributes and the social context in which the product was used. This later point further testifies to the notion advanced by Fisher and Boughton (1991) and Arnold (1997) that products are often rich with social meaning.

Clearly, the traditional perspective on diffusion theory must expand to incorporate not only the adoption of an innovation, but the breadth and depth of its usage. Furthermore, the research presented here proposes that diffusion theory must also focus on the social system in which the product is used. Finally, this research provides a basis for defining the usage of interactive communication technologies and for assembling these products into unique packages.

Communication Technology

We see from the results of Hypotheses 1 through 4 that social class, measured as occupational prestige, significantly influences the usage intensity of interactive communication technologies. These results further support earlier claims that consumption differences are not restricted to very visible products, but also occur for non-visible low cost items, the consumption of which reflects differences in values, lifestyles, or social interaction.

Furthermore, while occupational prestige is positively and significantly related to the usage of an aggregated cluster of interactive technologies for all four purposes, income had a greater influence on usage for all four purposes studied. Thus, while we agree with those who have suggested that interactive data technologies are increasingly utilized for emotional and interpersonal communication, this research suggests that income is required to reduce the economic constraints on access to interactive technologies.

Hypotheses 1 through 4 analyzed the aggregated usage of interactive technologies. A contrasting of these results against those of Arnold (1997), suggest that a single cluster of 14 interactive technologies may be too broad of product grouping. Division of the 14 technologies into smaller baskets of technologies, for example, voice or data technologies, may uncover some baskets which are influenced predominantly by social class and other baskets which are influenced predominately by income.

Upon examination of a disaggregated analysis of the 14 technologies and the relationship between social class, income and consumption, we note a significant relationship between occupational prestige and business or social usage for individual voice technologies such as the cordless phone cellular phone, voice mail service, and answering machine. Such findings are somewhat consistent with Arnold's proposition that voice technologies used for business and social purposes reinforce the social position of the higher-prestige users.

We also see from the results that prestige is significantly related to business usage for a small set of data devices, namely the PC modem, on-line service, and personal computer. In a business context, these devices provide emotional, immediate, and interpersonal non-oral communication and can dramatically improve access to and control over information while allowing the user to control the amount of time allocated to the communication. It is of further interest that the usage of these data devices for each purpose is best explained by different social-economic variables, for example personal computer usage for social purposes is best explained by age and education, income is the best descriptor of usage of personal computers and on-line services for service transaction, and only age is a significant descriptor of entertainment usage. This finding appears to support Fisher and Boughton's (1991) position that those of a high social position may use communication technologies to enhance their social position, but goes beyond that position and advances the theme that descriptors for usage of a single device must consider the usage purpose.

Public Policy Implications

These findings have implications for regulators who are currently considering options to address the perceived economic and information inequities in the information society.

One of the fundamental issues facing sociologists and regulators, which is likely to have major impacts on both economic and political systems, is the problem of unequal access to information and information systems. There has been considerable concern that the monetary or non-monetary costs facing potential users may wrongly influence the distribution of power within society.

Some (cf. Blake 1978, Schiller 1985) have argued that the current class-based social system is likely to replicate itself as access to information is controlled by the ability to pay. While there exists the possibility that access to information and its corresponding benefit, education, can promote both aspiration and achievement, some regulators are concerned with the possibility that the gaps between the information rich and information poor is apt to increase.

Given the concern of an increasing information gap and the view that access to information is a basic necessity, some regulators are considering the possibility of state subsidies to promote access to information. Such subsidies are already available for basic telephone access under 'life-line' and similar programs.

The present research, consistent with previous research, recommends that regulators should look beyond technology ownership to technology usage. In doing this, regulators will observe that multiple variables, not just family income, determine communication technology usage. Furthermore, regulators should be concerned with the usage context they wish to promote. For example, we note that 26% to 27% of the variance in usage of communication technology devices for business and social purposes is explained by occupational prestige, age and income, while only 18% of the usage variance is explained by these three variables for entertainment usage.

14. Limitations

The present study depends on a sample drawn from the consumer mail panel. Although used frequently in consumer research today and offering many benefits Ðbetter control over sampling, maximum diversity of included subjects, etc. Ðthe consumer mail panel has several drawbacks. One such limitation of mail panels is the potential bias in questionnaire responses and final sample characteristics as participants in mail panels are offered small incentives to respond to questionnaires. As such, the subjects were not randomly selected for inclusion and are not a representative sample of the American society in a statistical sense.

The range of communication technological products and services studied here is narrow with only 14 products and services tested. Future research incorporating a broader array of products and services may provide a more complete understanding of the boundaries around any given cluster and its associated technology attributes, social-economic consumer variables, and usage purpose which determine its usage intensity.

Issues surrounding the measurement of social class remain unresolved. The plethora of social class indicators leaves the individual researcher to choose the best measure of social class. While occupation and occupational prestige are deemed among the most important indicators of social class, 'The distilling of a few relatively homogeneous occupational groups from the many thousands of distinct jobs held in the labor force is a difficult task that probably has no fully satisfactory solution' (Hodge and Siegel, 1968). Thus, any research involving social position and the construct of social class suffers from validity and measurement problems. Nonetheless, occupation prestige has been proven to be a highly reliable construct and achieves appreciable face validity within the particular context for this research.

Finally, the unit of analysis may be considered a limitation. For this research, participants were limited to the traditional married-couple households. This was done to effectively delimit household consumption of technologies, assign family prestige scores, and therein reduce variance associated with household type. However, we acknowledge that a large percentage of today's households are comprised of single adult households. Future research should account for any differences that may exist within other household structures.

15. Directions for Future Research

This study provides important evidence on the relative superiority of selected segmentation variables used to explain the usage intensity of communication technologies across various situations. However, in its contradiction of previous research regarding the superiority of social class as a predictor of product usage, this research opens the door for future research into the depth and breadth of usage of communication technologies.

First, future research should continue to emphasize the frequency of use of many products and services. It is also important that future research explore post-adoption usage patterns. Preferably, studies that investigate patterns of usage should be longitudinal in nature, such that a history of product usage over time may be collected.

Second, research should document the usage context or purpose. This research demonstrated that the usage purpose affected both the usage intensity across products and the significance of certain segmentation variables as correlates of buyer behavior. It is important that future research compose other usage contexts and more potential predictor variables so as to assess the best correlate or correlates for a particular product and context. More predictor variables would allow a more precise understanding of the relationship between the predictor variables and the consumption of these technologies.

Third, replication of this study in another society or country would provide insight into the influence of culture and economic development as moderating variables on the usage of telecommunication products.

Finally, several methodological opportunities exist. This study, employing regression analysis, produced alternate conclusions to those of Arnold (1997) and Schaninger (1981) who used analysis of variance techniques. Such findings raise the question of multiple dependence relationships and suggest the use of a multivariate technique, such as structural equation modeling, that combines aspects of regression analysis and factor analysis to estimate a series of interrelated dependence relationships simultaneously. Structural equation modeling provides for an estimation of multiple and interrelated dependence relationships and the ability to represent unobserved concepts. Leveraging the results of this and other research efforts, a theoretically based model that acknowledges the interrelated dependence relationships could be developed and its causal relationships assessed using structural equation modeling. These steps would be a logical progression toward a fuller understanding of the usage intensity and diversity of communication technologies.


Notes:

[fnA]

Daniel J. Davied
SBC Communications
530 McCullough
San Antonio, Texas 78215
210.886.3127 (voice) 210.886.3236 (fax) dandavied@yahoo.com


James E. Fisher
Saint Louis University
St. Louis, Missouri 63108
314.977.3836 (voice) 314.977.1647 (fax) fisherje@slu.edu


Mark Arnold
University of Central Florida
Orlando, Florida
407.823.3804 (voice) 407.823.3891 (fax) mark.arnold@bus.ucf.edu


David Johnsen
SBC Communications
530 McCullough
San Antonio, Texas 78215
210.886.2061 (voice) 210.886.2098 (fax) research@texas.net

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