Effects of new payment regulations on mobile phone diffusion in TURKEY


Dereli T., Toğa G., Durmuşoğlu A.

44th International Conference on Computers and Industrial Engineering and 9th International Symposium on Intelligent Manufacturing and Service Systems, İstanbul, Turkey, 14 - 16 October 2014, pp.1883-1893

  • Publication Type: Conference Paper / Full Text
  • City: İstanbul
  • Country: Turkey
  • Page Numbers: pp.1883-1893
  • Erciyes University Affiliated: Yes

Abstract

Technology Diffusion (TD) investigates how, why and to what extent a new technology has spread within a social system. Some innovations diffuse in a social system successfully, but some of them fail. The explanation to the question “Why does an innovation diffuse successfully?” depends on very different factors such as the complexity, simplicity, and compatibility, etc. of the new technology as defined in the diffusion literature. The purchasing power of an individual is also another important factor in the diffusion of an innovation. Many different diffusion models have been developed to model the adoption process of an innovation. Generally, cumulative adoption of a new technology is called an S curve; this starts slowly, then speeds up and reaches saturation after a period of time. Some interventions such as public regulations relating to the diffusion can speed up the process or affect it even though an innovation is at the saturation phase. In this study, we aimed to investigate the effects of the payment regulations which were invoked on February 1, 2014 in TURKEY on the diffusion process. The Banking Regulation and Supervision Agency of TURKEY rescinded installment payments for mobile phone purchase with this legal arrangement. For this purpose, in this study the mobile phone diffusion process in TURKEY is modeled by using Gompertz and Logistic curves and the effects of these new regulations on the diffusion process is analyzed.