A two-step estimation of consumer adoption of technology-based service innovations

Firms initially offer new technology-based services to a limited number of customers to reduce risks and maximize their returns on the investments in the new technology. Consequently, consumers' adoption of new technology-based services is restricted by the limited access provided by the businesses. A model of consumer adoption was developed and estimated via a two-step procedure. A significant sample selection bias was found with regard to access when estimating consumer adoption of a relatively new innovation, computer banking, but no such bias was found for a mature innovation, ATMs.