G&S Typesetters PDF proof EUN-JU LEE, JINKOOK LEE,AND DAVID EASTWOOD A Two-Step Estimation of Consumer Adoption of Technology-Based Service Innovations Firms initially offer new technology-based services to a limited number of customers to reduce risks and maximize their returns on the invest- ments in the new technology. Consequently, consumers’ adoption of new technology-based services is restricted by the limited access pro- vided by the businesses. A model of consumer adoption was developed and estimated via a two-step procedure. A significant sample selection bias was found with regard to access when estimating consumer adop- tion of a relatively new innovation, computer banking, but no such bias was found for a mature innovation, ATMs. Recent advances have introduced innovative ways of using electronic technologies to deliver services to consumers (Bitner, Brown, and Meuter 2000; White 1998). Consumers have increasing access to innovative fi- nancial services mediated by electronic banking technologies, ranging from automated teller machines (ATMs) to smart cards and computer bank- ing. Using these innovative services, consumers can conduct fast and con- venient financial transactions and obtain account information without visiting banks (Lee and Lee 2000; Lee, Lee, and Schumann 2002; White 1998). The theory of diffusion of innovations (Rogers 1995) is a well-estab- lished theoretical framework (Gatignon and Robertson 1985) that explains how technological innovations spread across individuals within a social system. Diffusion research is currently at a relatively mature stage (Sultan, Farley, and Lehmann 1990). However, most studies have focused on orga- nizational, rather than consumer, adoption of technological innovations (Frambach et al. 1998; Gauvin and Sinha 1993). With an exception of the 256 THE JOURNAL OF CONSUMER AFFAIRS Eun-Ju Lee is an Assistant Professor in the Department of Marketing, College of Business and Eco- nomics, California State University–Los Angeles. Jinkook Lee is a Professor in the Department of Consumer Science, The Ohio State University. David Eastwood is a Professor in the Department of Agricultural Economics, University of Tennessee. This article is based on the first author’s dissertation that was awarded the 2001 ACCI Dissertation Award. The funding for this project was provided to the second author from the Federal Reserve Board and the U.S. Department of Agriculture. The authors extend their gratitude to Jeanne M. Hogarth, Jane Kolodinsky, and Jeffrey Shue for their inputs on instrument development. The Journal of Consumer Affairs, Vol. 37, No. 2, 2003 ISSN 0022-0078 Copyright 2003 by The American Council on Consumer Interests 04-W2835 10/23/03 10:38 AM Page 256