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Maslow’s Hierarchy of Needs and ICT: Challenges of End-User Adoption of Digital Life

Francis Pereira, Ph.D. Director, Industry Research Institute for Communication Technology Management (CTM). Maslow’s Hierarchy of Needs and ICT: Challenges of End-User Adoption of Digital Life. 47 th European Congress of FITCE London, United Kingdom September 23, 2008. Hierarchy of Needs.

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Maslow’s Hierarchy of Needs and ICT: Challenges of End-User Adoption of Digital Life

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  1. Francis Pereira, Ph.D.Director, Industry ResearchInstitute for Communication Technology Management (CTM) Maslow’s Hierarchy of Needs and ICT: Challenges of End-User Adoption of Digital Life 47th European Congress of FITCE London, United Kingdom September 23, 2008

  2. Hierarchy of Needs Why We Do the Things We do Maslow’s Hierarchy of Needs Individuals must satisfy lower level of needs before higher levels. Requires sufficient income to satisfy lower needs. Once threshold point is attained, consumption levels remain constant or decrease.

  3. Hierarchy of Needs Why We Do the Things We do Maslow’s Hierarchy of Needs What is the empirical evidence (U.S.)? What are the implications for infocomm technologies? Can infocomm technologies address Maslowian needs? Why is this important? What does CTM’s research show?

  4. Consumer Spending Trends Consumer spending patterns have been stable for household types (ethnicity, age, income, occupation) across time Addressing Maslowian Needs U.S. Bureau of Labor Statistics, 2006

  5. Hierarchy of Needs Role of InfoComm Technologies Maslow’s Hierarchy of Needs Tele-Health, Electronic Health Records, etc Tele-Education Multimedia Virtual Work Outsourcing Tele-Work Interactive Multimedia Messaging, Conferencing Multimedia Education Monitoring E-government service

  6. Defining Life-Segments Use of information communication technologies on the “Grid” (percentage use”) LOW Intensity of ICT Use BASIC LIFE BASIC COMMUNITY DIGITAL HOME-LIFE DIGITAL WORK-LIFE DIGITAL LIVING DIGITAL COMMUNITY HIGH

  7. Mapping Key Consumer Life-Segments to Maslow

  8. Sources of Entertainment • The Internet is equally important to all demographics. • The Internet is more important to those starting a business in the last 12 months, first generation citizens, and those not born in the United States. • Cell phones and smart-phones are more important to parents, those living in urban areas, first generation citizens, and those not born in the United States. • Pay TV is more important to those with higher incomes.

  9. Value of Internet Technologies Bill payment, banking services and money management are viewed as valuable Remote desktop connections and VPNs are not viewed as valuable Q. 10 How valuable are the following technologies to you? (1=Not valuable at all; 10=Very valuable

  10. Hierarchy of Needs and ICT Comfort With Use of Online Technologies As many of younger respondents as older respondents are comfortable with use of online technologies.

  11. Hierarchy of Needs and ICT Use of Online Technologies

  12. Hierarchy of Needs and ICT Usefulness of Online Technologies in Addressing Challenges of Everyday Life Only about 30% of all respondents across all age groups see online technologies as useful in addressing the daily challenges they face

  13. Hierarchy of Needs and ICT Ranking of Top 5 Concerns

  14. Hierarchy of Needs and ICT Concerned about the cost of healthcare Concerend about the health of my family members Concerned about the quality of healthcare system Concerned about paying my bills Concerned about the quality of education Concerned about the cost of education 0% 20% 40% 60% 80% 100% Agree Neutral Disagree Respondents View on Importance of Issues

  15. Hierarchy of Needs

  16. Hierarchy of Needs Importance of Life-Goals Life-Goals are similar across all age groups.

  17. Willingness to Pay/Try Applications

  18. Conclusions • Current consumer expenditure patterns and CTM survey data support the view that for most end-users, physiological needs still remain key concerns in their everyday lives, absorbing most of their attention and focus. • The survey results also suggest that the majority of end-users are in the basic-life category: ICT applications and services are predominantly used for communications and entertainment, only. • ICT applications that address these physiological needs, specifically tele-health and to some degree tele-education, are more likely to be provide greater relative value and experience faster adoption.

  19. Thank You fife@marshall.usc.edu pereira@marshall.usc.edu Institute for Communications Technology Management Marshall School of Business University of Southern California www.marshall.usc.edu/ctm

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