STOCK OPTIONS 1992 : AN EXAMINATION OF FACTORS INFLUENCING ADOPTION PATTERNS

Abstract

Stock options will be launched for the second time in the history of the Stock Exchange of Singapore (SES) in 1992. This launch presents an invaluable opportunity for furthering research in the adoption and diffusion of innovations. Studies of the adoption and diffusion process have to date concentrated on products and services that have already been well diffused in the social system in question. This has lead to certain critcisms, notwithstanding the fact that some research has also been done on products that were in the process of diffusing. As such, it was felt that an attempt ought to be made in profiling the potential adopter by means of establishing certain possible correlates of new product adoption by the intention to adopt In this case, the relevant group of potential adopters were those who invested regularly in the SES, as they were the final "consumers" of such a product A survey using a self-administered questionnaire was undertaken. Several hypotheses were posited and tested using selected statistical techniques. A comparison was made between early and late adopters with regard to their psychographics, behavioural profile as well as their demographics. The effect of a change agent on the adoption profile of later adopters was also tested under three given scenarios. The dissertation concludes by developing some implications for the SES and the broking houses with regard to the launch of the said stock options.