Theory of Planned Behavior (TPB) & Diffusion of Innovation (DOI) – Overview & Application

 Both TPB (Theory of Planned Behavior) and DOI (Diffusion of Innovation) are widely used behavioral theories in finance, technology adoption, and consumer behavior research.

🔹 1. Theory of Planned Behavior (TPB) – Ajzen (1991)

The Theory of Planned Behavior (TPB) explains how attitudes, social norms, and perceived control influence a person’s intention to perform a behavior.

🔸 TPB Model Components

✅ Attitude Toward the Behavior (ATB) – "Do I have a positive or negative view of using this technology?"
✅ Subjective Norms (SN) – "Do others expect me to use it?"
✅ Perceived Behavioral Control (PBC) – "How easy or difficult is it for me to use?"
✅ Behavioral Intention (BI) – The person’s willingness to perform the behavior.
✅ Actual Behavior (AB) – Whether they actually adopt the technology or not.

📌 Example in Finance:

  • A study on cryptocurrency adoption can use TPB to analyze how attitude, peer influence, and ease of investment affect trading behavior.
  • A research topic could be: “Factors Influencing the Adoption of Stock Market Trading Among Young Investors in India: A TPB Approach.”

🔹 2. Diffusion of Innovation (DOI) – Rogers (1962)

The Diffusion of Innovation (DOI) Theory explains how new technologies, financial services, or products spread across a population.

🔸 Five Categories of Adopters in DOI Model

1️⃣ Innovators (2.5%) – Tech enthusiasts, early adopters of new fintech (e.g., Bitcoin in 2011).
2️⃣ Early Adopters (13.5%) – Opinion leaders who influence others (e.g., investors trying robo-advisors early).
3️⃣ Early Majority (34%) – Adopt when the product is proven (e.g., growth of UPI payments after 2016).
4️⃣ Late Majority (34%) – Adopt due to social pressure (e.g., using digital wallets during COVID-19).
5️⃣ Laggards (16%) – Resistant to change (e.g., people still preferring cash over digital payments).

📌 Example in Finance:

  • A study on FinTech adoption in rural India can use DOI to analyze how digital payments like UPI, Paytm, and Aadhaar-linked banking are spreading.
  • A research topic could be: “Diffusion of Digital Banking Services Among Rural Entrepreneurs in Jharkhand: A DOI Perspective.”

🔹 TPB vs. DOI: Key Differences

Feature

TPB (Theory of Planned Behavior)

DOI (Diffusion of Innovation)

Main Focus

Individual’s intention to adopt a technology

How innovation spreads in society

Key Factors

Attitude, Subjective Norms, Perceived Behavioral Control

Innovators, Early Adopters, Majority, Laggards

Application

Fintech adoption, investment behavior, consumer finance

Market penetration, fintech diffusion, e-banking growth

Best For

Understanding why individuals adopt

Understanding how & when technology adoption happens

🔹 How to Use TPB or DOI in Research?

1️⃣ Choose the right model based on research focus:

  • Use TPB if you are studying individual decision-making in finance (e.g., why people invest in stocks or crypto).
  • Use DOI if you are studying mass adoption trends (e.g., how digital banking spreads in rural India).

2️⃣ Design Surveys/Questionnaires

  • TPB: Measure attitude, social influence, ease of use, and intention.
  • DOI: Identify adopter categories and barriers to adoption.

3️⃣ Use Statistical Tools

  • Regression analysis (SPSS, AMOS) for TPB.
  • Structural Equation Modeling (SEM) & Adoption Curves for DOI

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