Technology Acceptance Model (TAM) – Overview & Application

 The Technology Acceptance Model (TAM) is a framework used to understand how users accept and adopt new technologies. It was developed by Fred Davis in 1989 and is widely used in information systems, finance, fintech, e-banking, and digital adoption research.

🔹 Key Components of TAM

The model consists of two primary factors that influence user acceptance of technology:

1️⃣ Perceived Usefulness (PU) – "Will this technology improve my performance?"

  • The extent to which a user believes that using a particular system will enhance their efficiency or job performance.
  • Example: A user thinks mobile banking will make transactions faster and more convenient.

2️⃣ Perceived Ease of Use (PEOU) – "Is this technology easy to use?"

  • The degree to which a person believes that using a system will be effortless.
  • Example: A user finds that UPI payments require minimal steps and are user-friendly.

🔄 Relationship Between TAM Factors

PU and PEOU influence a person’s Attitude Toward Using (ATU) a technology, which then affects:
✔ Behavioral Intention to Use (BI) → Will they adopt the technology?
✔ Actual System Use (AU) → Do they end up using it?

📌 TAM suggests that if a system is perceived as useful and easy to use, people are more likely to adopt it.

🔹 Extended Versions of TAM

Over time, researchers have modified TAM to include external variables such as:

✅ TAM2 (Venkatesh & Davis, 2000) – Added social influence & cognitive factors.
✅ TAM3 (Venkatesh & Bala, 2008) – Included trust, experience, and perceived risk.
✅ UTAUT (Unified Theory of Acceptance & Use of Technology, 2003) – Combined TAM with other models for a broader framework.

🔹 Applications of TAM in Finance & Business

TAM is widely used in:

✔ FinTech Adoption – How users accept digital banking, mobile wallets, UPI, blockchain, AI in finance.
✔ E-commerce & Digital Payments – Customer adoption of Razorpay, Paytm, Google Pay, PhonePe.
✔ Stock Market Apps & Robo-Advisors – Investor adoption of Zerodha, Groww, Upstox.
✔ Cryptocurrency & Blockchain – Studying trust and risk perception in crypto adoption.

📌 Example Research Topic: “Factors Influencing the Adoption of Digital Payment Systems in India: An Extension of the TAM Model.”

🔹 How to Use TAM in Research?

If you’re writing a research paper using TAM:

1️⃣ Define the technology/system under study.
2️⃣ Identify key TAM variables (PU, PEOU, BI, ATU, etc.).
3️⃣ Use questionnaires/surveys to collect user responses.
4️⃣ Apply statistical models (SPSS, AMOS, PLS-SEM) for analysis.

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