Beyond classical economics: Exploring the impact of social-psychological factors on preference for speed over price and willingness to pay for a faster wireless service plan

With the rapid adoption of Internet and wireless technology, the demand for a faster and reliable speed has been dramatically increasing. Identifying influential factors in consumers wireless technology adoption and willingness to pay for a faster Internet speed across various settings has been an important and focal interest in wireless communication for both researchers and practitioners. By using both experimental and survey methods, this study empirically tested the impact of social influence and demographics factors on individuals preference for Internet speed over price and willingness to pay for a faster plan. Results of the experiment showed that friends preference for a slower but cheaper Internet significantly decreased peoples own willingness to pay for a faster Internet. Results of path modeling further revealed that perceived usefulness of Internet led to a higher level of preference for speed, which in turn led to a higher level of willingness to pay. Computer self-efficacy had a small and negative relationship with willingness to pay for a faster Internet; people with a liberal political orientation reported stronger willingness to pay for a faster Internet. This study makes contribution to the theoretical and empirical understanding of consumers adoption intention and willingness to pay for a specific wireless service.