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The impact of discontinuance on the subsequent adoption of an innovation: Theoretical foundation and empirical analysis
Abstract
The goal of this dissertation is to understand why individuals stop using products and what impact their decision to do so has on the subsequent sales/diffusion of the product in question. In keeping with this objective, a theory of discontinuance (or disadoption) is developed within the overall diffusion paradigm. The discontinuance pattern, in conjunction with the diffusion pattern, enables the determination of the actual size of the active user base at any given point in the life-cycle. This is of greater importance than the cumulative number of initial adopters because the active users of a product are more likely to initiate positive word of mouth about the product than those who have discontinued. In addition, active users are also likely to be the repeat purchasers of a product. Based on this theory, four types of discontinuances--replacement, disenchantment, underutilization, and snob--are identified, and their impact on the subsequent diffusion (sales) of a product examined both at the aggregate level (e.g., negative impact on subsequent adoption) as well as the individual decision level (e.g., stages of the discontinuance-decision process for different types of discontinuers). To test this theory empirically, data collected from subscribers of computer-based online network services were analyzed. Results support the notion that individuals who discontinue because of disenchantment are more likely to initiate negative word-of-mouth which, subsequently, could manifest itself in a retarded diffusion pattern. The notion that different types of discontinuers behave differently with respect to the discontinuance-decision process is also largely supported. The managerial implications of this dissertation are substantiial, especially with regard to: (1) the negative effect of discontinuance on sales, profits, and image, (2) methods to control discontinuance, (3) situations in which discontinuance is likely to be high, and (4) the types of discontinuances that are likely to be the most detrimental to subsequent sales of a new product.
Subject Area
Marketing
Recommended Citation
Parthasarathy, Madhavan, "The impact of discontinuance on the subsequent adoption of an innovation: Theoretical foundation and empirical analysis" (1995). ETD collection for University of Nebraska-Lincoln. AAI9604433.
https://digitalcommons.unl.edu/dissertations/AAI9604433