The Adoption of Digital Information Products: an Integration of Network effect and bandwagon effect

This study examines consumers’ adoption behaviour of digital information products involving network effect and bandwagon effect simultaneously. Smartphone is selected as a typical object. We propose that perceived number of users is the common measurement of both effects. In addition, perceived complementarily is another factor of network effect, and bandwagon effect consists of popularity and social influence. Perceived product quality and perceived price fairness are also factors under consideration. We have completed a survey and collected 241 valid questionnaires from actual users, and 277 valid questionnaires from potential users. After the statistics analysis with SPSS and structural equation modelling with LISREL, the data and instruments have good reliability and validity, and the theoretical model fits well. The results indicate that, perceived number of users, perceived complementarily, perceived price fairness and perceived product quality have significant effect on actual users’ consumer satisfaction; perceived price fairness, perceived complementarily, popularity and social influence have significant effect on potential users’ behavioural intention. In conclusion, network effect impacts both actual users and potential users, while bandwagon effect only impacts potential users.