Are Satisfied Customers Willing to Pay More for Extra Services?: Moderating Effect of Perceived Risk on 5G Technology Acceptance

Are Satisfied Customers Willing to Pay More for Extra Services?: Moderating Effect of Perceived Risk on 5G Technology Acceptance

Xin Su, Xin Ma, Panwei Xiang, Umair Akram
Copyright: © 2022 |Pages: 16
DOI: 10.4018/IJTHI.299359
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Abstract

5G service refers to the mobile services built on the 5th generation telecommunication technology. It enhances end user experience of mobile internet surfing significantly. The high bandwidth of 5G technologies offers vendors opportunities to provide more value-added services to their customers and therefore improve the revenue. However, the competition in this market is intense. In order to survive and finally get some payback, the vendors need to analyze the acceptance of 5G services from their consumers' perspective. In this paper, the authors use the extended TAM model to investigate the 5G service acceptance in China. They conducted a survey to test their model and got the results to support their argument. The study has both theoretical contribution to the people who would like to do research in this area and practical contribution to managers who would like to provide 5G services to their customers.
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Introduction

The birth of 5G, also known as fifth-generation mobile communication technology, will further change people’s lives dramatically in current society (Morgado et al., 2018). As a new generation of mobile communication technology after 4G, its performance is obviously superior to 4G in all aspects. For example, 5G has a higher speed and wider bandwidth, and its transmission rate is expected to be 100 times faster than 4G, with the theoretical downlink peak rate reaching 10 Gbps, and its bandwidth expected to greatly exceed the current 4G standard. Thus, the unique application of 5G includes wide-area wireless voice telephone, mobile internet access, video calls and mobile TV, all in a mobile environment. At the same time, 5G has higher reliability and lower latency, enabling it to meet the needs of specific industries such as autonomous driving and telemedicine (Forge & Blackman, 2017). It is foreseeable that 4G will remain dominant in the next few years and will be further popularized and developed. However, 5G has already appeared and was formally commercialized in 2019. Once it is widely commercialized, the communications industry will surely bring about a new round of development, and also drive multiple trillion-scale emerging industries. In recent years, with the development of the mobile internet and the rise of the Internet of Things (IoT), a series of products and applications that requires extremely high network transmission rates, bandwidth, and reliability is emerging (Asimakopoulos & Whalley, 2017). For example, the rise of VR (Virtual Reality)/AR (Augmented Reality) requires low latency and high speed of the network (Finley et al., 2017), the Internet of Vehicles and the Internet of Things bring huge terminal access and data traffic needs. These diverse applications and increasing demands have driven the development of 5G (Liu et al., 2019). 5G’s low latency, high reliability, large capacity, and low energy consumption are the goals of future mobile communication technologies (Morgado et al., 2018).

With the maturity of 5G technology, the commercialization of 5G will become the main concern of major operators. The cost of 5G packages launched by Korea is as high as $50 or even more. Compared to 4G, this charging standard has been significant lower. Therefore, here comes a question: can consumers accept new communication technology and will they spend more on it? Davis (1989) proposed a technology acceptance model to explore consumer acceptance of technical products. Domestic and foreign scholars have carried out further research on specific problems based on the model. Some scholars have proposed extended TAM model on the study of 4G technology acceptance, and UTAUT model for public Wi-Fi application issue (Aswani et al., 2018), TAM-TTF (Technology Acceptance-Task Technology Fit Model) used for remote information processing (Chen, 2019), and TPB (Theory of Planned Behavior) model used to explain tourist’s intention to access Facebook pages (Leung & Jiang, 2018). As for the study of how mobile operators improve communication service quality and user satisfaction, some scholars tried to explain the consumer’s intention of mobile communication applications through a model integrating the mobile service quality, user habit and satisfaction (Wang et al., 2019). Furthermore, some scholars explain the influencing factors of cloud computing by considering value-sensitive methods (Shin, 2015). Through the comparative analysis of Kakao Talk and Joyn in South Korea, some scholars put forward a theoretical model for mobile instant messaging application users (Oghum et al., 2015), while other scholars analyze the user behavior of mobile applications in developing countries (Hajiheydari & Ashkani, 2018), the statistical social behavior of millions of mobile phone users (Zhang et al., 2018).

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