CONSUMER ACCEPTANCE OF INTERACTIVE COMMUNICATION TECHNOLOGY: AN EMPIRICAL INVESTIGATION INTO THE SIGNIFICANCE OF SOCIAL STRATIFICATION Mark J. Arnold Assistant Professor of Marketing University of Central Florida Orlando, Florida James E. Fisher Associate Professor of Marketing Director, Emerson Electric Center for Business Ethics Saint Louis University St. Louis, Missouri Abstract Communication technology has advanced rapidly in the past several years, and consumers throughout the U.S. and across the world are becoming more "connected" through the ownership and usage of the newer communication technology. Yet, speculation persists that the benefits of this "revolution" are unevenly distributed, and the lack of access to communication technology contributes to the widening gulf between socioeconomic classes. The proliferation of communication technology, which plays a powerful role in the access to and control of information, thus appears to have a distinct social dimension. This study examines consumer acceptance of interactive household communication technology through the social stratification prism. Drawing upon the rich traditions of diffusion theory and social class research, the research presented here compares the explanatory power of a consumer's occupational prestige with income for the detailed patterns of ownership and usage of communication technology. The guiding research thesis is relatively straightforward: technology that facilitates the flow of information and improves interpersonal communication will find greater acceptance among consumers of higher social standing (Fisher and Boughton 1991). This is in part due to the reality that higher social standing suggests wider, more heterogeneous, and more geographically dispersed social networks than does lower social standing, which is typically characterized by networks that are largely kin-oriented and geographically restricted (Coleman 1983). Consumers of higher social standing maintain social networks of larger size and greater heterogeneity in large part because of the "merging" of their work and leisure spheres (Gilbert and Kahl 1982), typically resulting in patterns of interpersonal communication that are as much business-oriented as they are social. Consumers of higher social standing are also better prepared to effectively utilize this technology because they possess resources above and beyond those considered financial (Fisher 1987). Better access to and control of the flow of information further perpetuates social class divisions and limits social mobility. Thus, ownership and usage of certain communication technologies can disproportionately benefit those of higher social standing by facilitating social participation, which itself further solidifies class position and limits social mobility of those in lower classes. We suggest that the interactivity inherent in certain communication technologies is the mechanism that facilitates interpersonal communication and the flow and control of information. Thus, rather than examine a broad variety of consumer goods, we focus our attention on one specific class of goods--interactive communication technologies. If consumption of these technologies is driven in part by a consumer's social standing, and not by income as is so commonly assumed in other research, then we have evidence of the role communication technology may play in a growing social inequality between the information "haves" and "have-nots." Development of the survey instrument entailed extensive background research and consultation with several research institutions, input from the Workgroup on Economics and Social Issues commissioned by the Emerson Electric Center for Business Ethics, and one local and one nationwide pretest. Data for the main sample were collected from a nationwide consumer mail panel in January 1997, by Market Facts, Inc., a professional research firm. The data were then coded and purified, and subjected to a variety of analysis of covariance techniques. Results support the research hypotheses, suggesting that the prestige construct is considerably more important than income as a predictor of consumption of these technologies. The strong relationship between prestige and consumption of communication technology, after controlling for education and age effects, suggests that communication technology, as a specific class of goods, reinforces the privileged position of those higher on the social hierarchy, and contributes to the growing rift between the information haves and have-nots. Note: Additional details about this research will be presented at the upcoming Second Annual Ethics and Technology Conference. This research was made possible by the generous financial support of the Emerson Electric Center for Business Ethics, GTE Laboratories, and the Direct Marketing Policy Center at the University of Cincinnati.