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Shanahan, Colleen C.

Community Development and Applied Economics

2005

MS

Using two theories, the Diffusion of Innovations (Rogers, 1962) and the Technology Acceptance Model (Davis, 1989), this thesis attempts to answer two questions: 1) Are small food businesses taking advantage of greater markets by adopting the Internet as a marketing tool and 2) Who is entering online markets. This thesis uses explicit models to look at interrelationships among small food businesses and web presence. Using both research and knowledge of statistical modeling, we can forecast within a measured level of confidence the rate of adoption of a web presence among small food businesses (Pindyck & Rubinfeld, 1997).
With millions of people connected to the Internet, Chapter 2 explores the question, "Are small food businesses taking advantage of greater markets by adopting the Internet as a marketing tool?" This study examines factors that affect the adoption of or the intent to adopt a web presence in small food businesses. Using data collected from small food business owners, the study finds that relative advantage, compatibility, complexity, and observability are factors associated with adoption of the Internet as a marketing tool.
In Chapter 3 we use a diffusion of innovation approach to understanding small food entrepreneurs and their adoption of the Internet as a marketing tool. Our underlying purpose is to answer, "Who is entering online markets?" The premise of the study is to see what business characteristics and what perceptions and opinions are shared along the continuum of adopters to non-adopters. Using an interdependent analysis approach, we clustered our sample into five groups: "innovators," "capitalizers," "informedunderskilled," "non-opportunists" and "resisters."