Smart Phones and Their Substitutes: Task-Medium Fit and Business Models

Drawing on data from a longitudinal field study, this paper investigates the influence of existing, better and stand-alone technology substitutes on the use of smart phones. By applying prospect theory, media richness theory, and business model literature, the purpose of this paper is to improve our understanding of the role of substitutes, device content fit issues, and implications for business models by asking the question: What is an effective business model to address the relationship between user preference and the fit of the smart phone and everyday task? The field study data suggest the need for business models to recognize that adoption decisions are reference-dependent and strongly influenced by the fit between task and smart phone.