Francis Pereira, Ph.D. Director, Industry Research Institute for Communication Technology Management (CTM) Maslow’s Hierarchy of Needs and ICT: Challenges.

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Presentation transcript:

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

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

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

6 Use of information communication technologies on the “Grid” ( percentage use”) Defining Life- Segments BASIC LIFE BASIC COMMUNITY DIGITAL HOME-LIFE DIGITAL WORK-LIFE DIGITAL LIVING DIGITAL COMMUNITY Intensity of ICT Use LOW 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 Respondents View on Importance of Issues 0%20%40%60%80%100% Concerned about the cost of education Concerned about the quality of education Concerned about paying my bills Concerned about the quality of healthcare system Concerend about the health of my family members Concerned about the cost of healthcare AgreeNeutralDisagree Hierarchy of Needs and ICT

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.

Institute for Communications Technology Management Marshall School of Business University of Southern California Thank You