Discontinuous Innovation and Market Chasm: The Case of Digital Convergence Services

This study explores the phenomenon of chasm in the marketing process of discontinuous inno vations. Drawing on Moore’s concept of chasm crossing, an empirical analysis is performed using the data gathered from a survey of potential users of satellite DMB. First, the demand of satellite DMB is forecasted. Then, the demand changes in different innovation adopter groups are deter mined from the continuous innovation perspective relying on Rogers’ technology adoption life cycle model. Finally, the diffusion process of this high-tech service is re-examined from the perspective of discontinuous innovation in order to identify the market gap and elaborate strategies to overcome the chasm. In the analysis, time points of innovation adoption are used as the basic unit of analysis for the purpose of shifting the analytical focus from market diffusion to consumer accep tance. This study is expected to provide a useful methodological framework for future empirical applications in this field.