A segment-based analysis of Internet service adoption among UK households

Technology policy analysis and implementation depend on knowledge and understanding of the “adoption gap” in information technologies among different groups of consumers. Factors that explain the so-called “digital divide” also need to be quantified. Using survey data collected in the UK, our focus is an understanding of the key factors involved in the choice of residential Internet service. These choices are analysed using a discrete choice model, which reveals that socio-demographic factors strongly influence the adoption of Internet services. Price elasticity effects also vary between different types of households: those households with members who are wealthier and better educated are found to be less sensitive to the price of Internet services than households whose member come from the other end of the socio-demographic scale. This finding is important for market planners and policymakers who wish to understand and quantify the impact of these factors on the digital divide across household types.