THE ROLE BRAND LOYALTY PLAYS IN THE INTENTION TO ADOPT NEW TECHNOLOGIES DOI: 10.5585/RAI.2010504

Abstract

The process of adopting a new technology is characterized by asymmetric information, where the manufacturer is fully aware of the technology’s characteristics, but the end-user, to whom this technology is designed, has little access to information. In order to minimize asymmetry, hence reducing the uncertainty and risks inherent in this process, companies can send signals via robust and trusted brands, which may relay information about product quality on to their consumers. This study’s principal objective is to analyze the influence of brand loyalty in the adoption process of new technologies in business-to-consumer (B2C) exchanges. Therefore, we applied the Unified Theory of Acceptance and Use of Technology (UTAUT) model, proposed by Venkatesh et al. (2003). Brand loyalty was measured using the scale developed and validated by Delgado-Ballester et al. (2003). Data was collected via a survey administered to 348 respondents, coupled with data analysis performed using Structural Equation Modeling (SEM). The results demonstrated that trust based on brand intentions, which is related to consumer expectations regarding future firm behavior in solving problems associated with the consumption of the product, has significant bearing on the consumer's intention to adopt a new technology. In addition, the constructs previously submitted into the UTAUT model, i.e., social influence, the expectation of i) performance and ii) effort, were confirmed.