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7<br />

Unaffordable Cell Phone<br />

Prices and Maintenance<br />

7%<br />

6% 8%<br />

8 Miscellaneous Financial<br />

Reasons<br />

13% 16% 32%<br />

9 Poverty 12% 5% 1%<br />

10 Costly<br />

Upbringing and<br />

Education of Children<br />

11 Miscellaneous Nonfinancial<br />

Reasons<br />

3%<br />

9% 6%<br />

8% 5% 14%<br />

4.3 Perceived Consequences of and Incentives<br />

for Cell Phone Adoption<br />

Anticipated and desirable consequences of adopting cell phones<br />

were as follows. Ninety-five percent of respondents think that<br />

their status in the family would improve if they started using cell<br />

phones. Ninety eight percent of respondents believe that cell<br />

phone usage will lead to personal development. Table 3 presents<br />

respondents’ top perceived incentives for cell phone adoption.<br />

Social networking with family, relatives, friends, and neighbors<br />

emerged as the most important incentive for cell phone adoption.<br />

Table 3. Perceived Incentives for Cell Phone Adoption<br />

# Incentives for First Second Third<br />

Cell Phone Adoption N = 334 N = 327 N = 271<br />

1 Easy to make calls to<br />

anybody any time<br />

3% 3% 1%<br />

2 For expanding business 25% 28% 17%<br />

3 To maintain social contact<br />

with family, relatives,<br />

friends, and neighbors<br />

55% 51% 62%<br />

4 To seek out help in<br />

emergency situations<br />

17% 17% 19%<br />

5 Entertainment 0% 1% 1%<br />

5. CONCLUSION<br />

The lack of cell phone ownership among female slum-dwellers<br />

was largely based on unfavorable socioeconomic and financial<br />

conditions and not driven by choice as is the case with laggards.<br />

Poor female slum-dwellers are the victims of socioeconomic<br />

conditions in rural and urban India, discouraging them from<br />

adopting cell phones. Table 4 lists the differences between three<br />

key characteristics of laggards identified by the diffusion of<br />

innovation theory and the current study findings.<br />

Table 4. Differences in Theory and Study Findings<br />

# Theoretical Views<br />

for Laggards<br />

1 Laggards are<br />

conservative<br />

their outlook.<br />

in<br />

Current Study Findings<br />

In the male-dominant Indian<br />

society, business of selling services<br />

and products forms the topmost<br />

source of income for poor female<br />

slum-dwellers. Respondents are<br />

financially independent microentrepreneurs<br />

with modern<br />

205<br />

2 Laggards are not<br />

part of any social<br />

network with very<br />

limited exposure to<br />

the outside world.<br />

3 Laggards do not<br />

believe in<br />

innovations, hence<br />

are suspicious of<br />

innovations.<br />

outlook.<br />

Social networking with friends and<br />

family members emerged as the<br />

topmost incentive for slumdwellers<br />

to adopt cell phones.<br />

100% of respondents expressed<br />

their confidence in the utility of<br />

cell phones. They were not<br />

suspicious about the value created<br />

by adopting cell phones.<br />

Findings based on responses from 334 poor laggards suggest<br />

hypotheses for predicting cell phone adoption by the remaining<br />

poor laggards in India, who do not own and use cell phones. The<br />

hypotheses are as follows.<br />

H1: Demographic variables (e.g., education, age, marital status,<br />

family characteristics, and facilities at home) do not influence cell<br />

phone adoption.<br />

H2: Low or insufficient income is the main barrier for cell phone<br />

adoption.<br />

H3: Improvement in social status is the most evident perceived<br />

consequence of cell phone adoption.<br />

H4: Social networking is the major perceived incentive for cell<br />

phone adoption. Hence, H4a: Respondents are more likely to<br />

adopt cell phones, if they have family, friends, relatives, or<br />

neighbors who own and use cell phones.<br />

In addition, future research focusing on personal characteristics<br />

and communication patterns of laggards without cell phone<br />

ownership would equip us better for predicting cell phone<br />

adoption by laggards in India.<br />

Practical implications for cell phone manufacturers are as follows.<br />

Cell phone features supporting the “business of selling services<br />

and products” could increase the cell phone adoption by<br />

microentrepreneurs in India. In addition, mobile applications<br />

facilitating social networking with appropriate user interfaces<br />

designed for illiterate and semi-literate cell phone users would be<br />

an additional incentive for poor laggards to adopt cell phones.<br />

6. ACKNOWLEDGEMENT<br />

We would like to thank the University of Tennessee at Knoxville<br />

for funding this study.<br />

REFERENCES<br />

[1] ITU. International Telecommunications Union<br />

Retrieved from www.itu.int/ on December 21, 2011.<br />

[2] Rogers, E. Diffusion of Innovations (4th ed.).<br />

New York: Free Press. 1995.<br />

[3] Sinha, C. Effect of Mobile Telephony on Empowering Rural<br />

Communities in Developing Countries, Conference on Digital<br />

Divide, Global Development and the Information Society<br />

(Tunis, Tunisia, 2005), 2005.<br />

[4] TRAI. Telecom Regulatory Authority of India<br />

Retrieved from http://www.trai.gov.in/ on October 23, 2011.<br />

[5] US Census Bureau. US Census Bureau’s Intl. Database,<br />

Retrieved from http://www.census.gov on May 1, 2010.

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