Technology Readiness for Innovative High-Tech Products: How Consumers Perceive and Adopt New Technologies Dr. Ahmet Emre Demirci, Anadolu University, Turkey Dr. Nezihe Figen Ersoy, Anadolu University, Turkey ABSTRACT The products and services companies offer sometimes become commodities long before they are diffused and adopted at desired levels by their target audiences. Shortening life cycles of products and services as well as rapidly shrinking technology s-curves are forcing businesses to better structure their innovation efforts. While these trends are vital to business sustainability and survival, understanding potential customers’ technology readiness and their perceptions concerning certain products and services could provide businesses with a leading-edge position in their domain. This study is a replication and an extension of Parasuraman’s study on the Technology Readiness Index (TRI). Our research aims to uncover the possible differences between the number and the structure of factors with regard to the technology readiness of potential customers. INTRODUCTION As the intensity of competition is rapidly increasing, more companies are offering technology-based products and services to satisfy and exceed the ever-changing expectations of the customers. While the number of innovative high-tech products and services is increasing as we speak, consumers’ experiences with these products and services are becoming a focal point for companies striving to survive in today’s digital world. Thus, the question of “why do certain individuals adopt new technologies, whereas others don’t?” is highly important for companies offering technology-based products and services (Tsikriktsis, 2004). The answer to this question has a direct relevance to the diffusion and adoption of innovative products. Because innovations that are perceived by receivers as having greater relative advantage, trialability, compatibility, observability and less complexity will be adopted more rapidly compared to other innovations without these qualities (Rogers, 1983). Among many research streams that have dealt with this question, scholars and companies have increasingly been giving the notion of technology readiness more attention recently. Before we extend our discussion, a framework of what technology is ought to be given. The American Heritage Dictionary of the English Language (2000) defines “technology” as: 1. Systematic treatment of an art or craft: a. The application of science, especially to industrial or commercial objectives. b. The scientific method and material used to achieve a commercial or industrial objective. 2. Electronic or digital products and systems considered as a group: a store specializing in office technology. According to Bush (McOmber, 1999) “Technology is a form of human cultural activity that applies the principles of science and mechanics to the solution of problems. It includes the resources, tools, processes, personnel, and systems developed to perform tasks and create immediate particular, and personal and/or competitive advantages in a given ecological, economic, and social context .” From the perspective stressing the commercial value of technology, high technology products and services can be considered as the output of a planned industrial approach, research and development, and ongoing innovation efforts. While these innovative products and services are offered to targeted consumer groups, the relationship between technology, innovation and consumers’ adoption processes should be underlined. Diffusion of Innovations Diffusion is a process whereby an innovation spreads across a population of potential adopters over time through various channels (Fichman and Kemerer, 1999). Thus, diffusion of innovation refers to how, why, and at what rate new ideas and technology spread through different cultures. Individuals within the cultures are not passive recipients of innovations. Although it varies in terms of the extent, they seek innovations, experiment with them, evaluate them, develop feelings about them, complain about them, and gain experience with them often through dialogue with other users (Greenhalgh et al., 2004). Experiences of customers and the perceived value of innovations are among the main factors causing some innovations to spread more quickly than others. Also the characteristics of an innovation have a major impact on its rate of adoption among members of a social system