Objectives of knowledge management

Factors governing e-commerce service adoption
It is useful for digital business managers to understand the different factors that affect how 
many people actively use the Internet, so that action can be taken to overcome some of these 
barriers. For example, marketing communications can be used to reduce fears about the 
value proposition, ease of use and security. Chaffey 
et al.
(2009) suggest that the following 
factors are important in governing adoption of any e-commerce service:
1 
Cost of access. This is certainly a barrier for those who do not already own a home computer. 
The other main costs are the cost of using an ISP to connect to the Internet and the cost of 
using the media to connect. Free access would certainly increase adoption and usage.
Malware
Malicious software 
or toolbar, typically 
downloaded via the 
Internet, which acts 
as a ‘trojan horse’ by 
executing unwanted 
activities such as 
keylogging of user 
passwords or viruses 
which may collect email 
addresses.
Behavioural ad 
targeting
Advertisers target ads 
at a visitor as they move 
within or between sites 
dependent on their 
viewing particular sites 
or types of content that 
indicate their preferences.
Social and legal factors
Activity 4.2
Understanding enablers and barriers to consumer adoption
Purpose
To identify reasons why businesses or consumers may be encouraged online 
or may resist.
Activity
Access a recent survey of attitudes to the Internet in your country. In particular, you 
should concentrate on reasons why customers have used the Internet or have not 
used the Internet at all. Figure 4.2 gives an example for 27 countries in the EU27 in 
Europe. Note that different activities such as posting updates to social media vary 
significantly by age, although we see the Internet as ubiquitous.
It’s not practical to present the latest data from all countries, so please access 
the latest data using this compilation of 10 key research resources about the Internet 
and technology adoption which we have prepared at www.smartinsights.com/
digital‑marketing‑statistics.
Questions
1 
Summarise and explain the reasons for the levels of usage of the medium for differ‑
ent activities.
2 
What are the main enablers and barriers to higher levels of adoption of these differ‑
ent activities and which actions should organisations take to increase adoption?
Alternatively, devise an 
ad hoc
survey to investigate attitudes to, and use of, the Internet 
using friends, family or classmates as respondents. Example questions might include 
the following: What have you bought online? If nothing, why not? How many hours do 
you spend online each month? How many emails do you receive or send? What stops 
you using the Internet more? What aspects of the Internet are you concerned about?
Answers to activities can be found at
www.pearsoned.co.uk/chaffey
visit the
www
M04_CHAF6542_06_SE_C04.indd 131
7/23/14 12:18 PM

---

132