The Adoption of New, More Efficient Technologies and Consumer Behavior: The Case of Home Video Entertainment in Mexico

Abstract

In recent years, there has been a growing pressure on consumers to adopt energy-efficient electronic devices as a way to reduce CO2 emissions. Although Blu-ray high definition disc players (BD) are viewed as better electronic devices than the standard DVD players, they have not yet massively pervaded. That is because the penetration of this new, more efficient technology is determined by factors such as the cost-benefit of BD players as well as the advantages consumers still attribute to the incumbent technology. This paper analyzes the barriers that consumers face to adopt the newer DVD technology in the case of Mexico. Drawing on a survey on Mexican users of DVD technology, it was possible to identify the main factors that deter users from buying BD players. According to the empirical analysis, the chief deterrents are the higher price of Blu-ray combos (players and discs), the lack of information regarding this technology, and, quite surprisingly, the confidence users said to have with the former technology. These results might suggest that Mexico’s demand for standard DVDs will continue unabated in years to come in spite of the better quality attributes and energy-efficient features of the Blu-ray technology.