Direct Marketing
Currently, the continued development of various communication technologies has contributed to increased use of direct marketing channels by rural consumers. Direct marketing is a growing at a rapid pace. During the decade of the 1980s, the various forms of direct marketing sales grew at twice the per annum rate of traditional retail sales at stores (Bullock, 1985; Advisory Commission on Intergovernmental Relations, 1991). The growth in direct marketing sales results in smaller tax revenues for local municipalities, counties, and state governments (Mowen, Wiener, & Young, 1990; Newman, 1996). Estimates indicate that the tax loss to local governments attributable to direct marketing has increased from $2 billion in 1988 to over $4 billion in 1997 (Advisory Commission on Intergovernmental Relations, 1991; National Governors Assoc., 1997).

The impact of the continued development of Internet shopping technologies alone is predicted to increase to over $1.5 trillion per year by the year 2002 (NGA, 1997). Decreased patronage of local retail stores and increased patronage of direct marketing modes could continue the adverse affects of technology on the viability of existing rural retailing (Newman, 1996; National Governors Assoc., 1997). More information about rural family expenditures on food and fiber products at local retailers and via alternative shopping modes is needed to help prepare rural communities for the 21st Century.

Internet Shopping. Internet use is growing at a rapid rate. Netscape Store (1997), which provides software for merchants who offer products on the Internet, has generated over $1 million in sales. In 1995 Nielsen Media Research reported that 37 million people, over age 16 and with incomes in excess of $80,000, had access to the Internet in the US and Canada. Of over 24 million on-line over five hours per week, 34% were women, and 2.5 million had made a purchase using the World Wide Web. In 1993, Bickle and Shim found that 95% of electronic shoppers were male, indicating that demographics of Web shoppers are continually changing.

Although projections for Internet shopping predict rapid growth, recent reports are that only about 10% (Maney & Dugas, 1997) to 12% ("Special Report," 1996) of the population of the US uses the Internet regularly for any activity. In the Current Population Survey conducted in 1994, items were included regarding computer and modem ownership and usage ("Falling Through," 1995). Only about 1% of poor rural respondents had computers and modems. However, young rural household members with computers and modems were using the Internet for information search purposes (e.g., 21.7% of those with PCs and modems take courses via Internet, and 10.7% search classified ads).

According to research conducted by Management Horizons, products expected to sell well on-line include staples such as groceries, large and small home appliances, prescription drugs, jewelry, and toys (Reda, 1995). Forrester Research recently queried consumers about what they are buying via the Web. Computer hard and software (58%) and books and music (46%) were most often purchased. Apparel and footwear comprised 17.3% of reported purchases (Weinman, 1997). The Internet is also used as an information source about products and services. For example, Murphy, Forrest, and Wotring (1996) analyzed how restaurants are using Web pages.

To evaluate the Internet's commercial effect on traditional retailers, MasterCard International conducted several surveys (Special Report," 1996); based on these or similar surveys only about 1-1.5% ("IBM Move," 1997) of consumers in the US were estimated to be using the Internet to shop. However, at the time of the surveys about 30% of the respondents who were not using the Internet planned to access it in the coming year. Two barriers to commercial on-line growth were identified: (1) consumer concerns related to merchant legitimacy and (2) limited consumer experience with using the Internet. Thus, while Internet shopping would seem to be a great convenience for rural shoppers and retailers, there are perceived disadvantages to shopping via the Internet that will have to be overcome before it is widely accepted.

In addition, both research (Maignan & Lukas, 1997) and popular press sources (Maney & Dugas, 1997; Murphy, 1997) highlight consumer security concerns with using credit cards over Internet. Maignan and Lukas (1997) found that even though the ability to purchase on-line was considered a plus, interviewees were reluctant to use credit cards over the Internet. Another problem that consumers suspect when using the commercial sites on the Internet is violation of privacy (Maignan & Lukas, 1997; Maney & Dugas, 1997). Both of these concerns are also relevant to catalog and television shopping; however, consumers perceive Internet shopping to pose more risk in relation to card security and privacy of purchase record (Maney & Dugas, 1997).

On the other hand. Internet shopping can offer consumers an almost infinite amount of information about products and services and ease in comparing a variety of product offerings (Alba et al., 1997; Maignan & Lukas, 1997). In their analysis of the electronic marketplace Alba et al. (1997) discuss the tradeoffs involved in shopping in a variety of retail formats. They suggest that the attractiveness of non-store retail formats would be enhanced in areas of the country lacking a well-developed retail industry structure (i.e., rural areas). Another benefit associated with Internet shopping, as well as all types of in- home shopping, is personal safety (Alba et al., 1997). Malls and downtown shopping areas are perceived by some consumers to present greater risks of theft and violence due to juvenile delinquency.

Currently, Internet shoppers must have access to a PC, modem, and Internet access provider. However, it should be noted that as set-top boxes or Net appliances (Cortese, Hamm, & Hot, 1997) are perfected and made available at low prices, they will enable computer-phobic consumers to access the Internet via their televisions hooked into phone lines. Internet shopping may then accelerate beyond currently expected levels (Lesly, Cortese, Reinhardt, & Hamm, 1997; Roush, 1993). In the interim, it has been suggested that public schools, libraries, and other community centers should provide a means of access for individuals without PCs and modems ("Falling Through," 1995).

Television Shopping. Another direct marketing channel of distribution is television shopping via home-shopping channels. Television shopping is dominated by QVC and Home Shopping Network (Underwood, 1996). QVC's sales were $1.8 billion in 1996 and averaged 113,000 orders per day (Maloof, 1997). Estimated gross sales for all shopping channels combined was $4 billion in 1995 and is expected to grow to $5 billion by 2005. Television shopping channels are also growing globally, with channels in China, Japan, Russia, Europe, and now Korea. San Diego-based Intel-national Shopping Network (ISN) began broadcasting to China in 1995 ("Home Shopping Concept," 1994). While television shopping is spreading globally, there are still areas of the US in which home shopping channels are unavailable ("Shopping from the Sofa," 1997).

American television shoppers are most frequently married and between 35 and 54 years old ("The New Competition," 1994); they are most likely to buy and live in the eastern section of the US ("Shopping from the Sofa," 1997). In addition, television shoppers are likely to be catalog shoppers (Stanforth & Lennon, 1996). Stanforth and Lennon (1996) found in a survey of 988 TV shoppers that the majority (62%) were from urban areas. In spite of comparatively high incomes, television shoppers are not buying expensive items ("Shopping from the Sofa," 1997); the average sale for this group of shoppers is $125. Also, as television shopping is difficult to plan, it is not surprising that two-thirds of purchases via television are unplanned ("Shopping from the Sofa," 1997).

Although it is a relatively new mode of acquiring goods, some researchers have focused their attention on television shopping (Donthu & Gilliland, 1996; Grant, Guthrie, & Ball-Rokeach, 1991; Salomon & Koppelman, 1992; Stanforth & Lennon, 1996). For example. Grant et al. (1991) explained that one advantage to product sellers is that the cost of selling products via television shopping shows is much lower than the cost of selling the product via national network advertising; thus, it is not necessary to sell large quantities to be profitable.

Catalog Shopping. Unlike electronic shoppers, heavy catalog shoppers tend to be both rural and urban. Spiegel (O'Malley, 1992) reported that its biggest catalog shopping market was in the densely populated areas of New York State, but its second-biggest market was the sparsely populated state of Alaska. O'Malley suggested that people moving to rural areas are accustomed to having good products and services. If they cannot get them, they will purchase through mail order or travel hundreds of miles to get what they want. Mail order shopping has long been a facet of rural product acquisition and was well-developed by Sears and Roebuck and other firms back in the 1800s and early 20th century.

Today, apparel is a product that is often purchased via catalog, with a 26% catalog market share (Michals, 1997). Research focusing on apparel catalog shoppers found that over 40% of them purchased six or more times annually (Eastlick & Feinberg, 1995) and many of them (62%) had incomes in excess of $50,000 (Abraham-Murali & Littrell, 1995). In addition, Jasper and Lan (1992) found that apparel shoppers who purchased frequently via catalogs tended to be more highly educated and older than those who purchased infrequently. As with other types of in-home shoppers, catalog apparel shoppers perceive fewer risks in shopping for apparel in-home (Kwon, Paek, & Arzem, 1991; Simpson & Lakner, 1993).

Diffusion Theory
Innovation diffusion theory (Rogers, 1995) provides a framework for studying rural consumer attitudes toward and adoption of emerging Internet and TV-shopping technologies. Rogers identified five stages that consumers experience when deciding to adopt or reject a new innovation. During the first stage, Knowledge, an individual builds an understanding of an innovation and its functions. Pre-existing consumer characteristics such as previous experience with forerunners of the innovation (in our case mail order buying and computer usage in general), consumption needs, innovativeness, and technology orientation will influence knowledge formation. In the second stage. Persuasion, consumers develop positive or negative attitudes toward the new innovation based on knowledge they built in the earlier stage and continuing exposure to and experience with the new innovation. During this attitude formation stage, innovation characteristics such as convenience (of access and of product acquisition through Internet or TV sources), perceived risks in using the innovation (i.e., credit card safety or merchant legitimacy concerns), and relative benefits (i.e., access to greater product variety or tavonte brands, time savings, and enjoyment of programs or graphics) are critically important.

In the third Decision stage, consumers make decisions regarding whether to adopt or reject Internet shopping or TV shopping based on their emerging attitudes. According to Rogers (1995), most individuals try out a new technology on a partial basis first, then, if they find a certain degree of relative advantage in using it, they will go ahead and fully adopt the innovation. Prior researchers (Hooks, Napier, & Carter, 1983; Klonglan & Coward, 1970; Nowak, 1987; Taylor & Miller, 1978) also recognized the importance of relative advantage confirmation in this stage. The perceived relative advantages encouraging Internet or TV shopping adoption include market incentives related to monetary value (i.e., discounted price offers), time value (i.e., fast delivery and reduced shopping time), and effort value (i.e., convenient, no-hassle shopping atmosphere, easy returns).

In the fourth Implementation stage, consumers finally decide to adopt or reject the innovation and, if adopting, become frequent or committed users of Internet or TV shopping. Finally, in the Confirmation stage, consumers reconsider the innovation based on satisfaction or dissatisfaction with a sum of shopping experiences and make decisions regarding whether they will continue to use these technologies for future shopping.

Adoption Barriers. A number of studies have described barriers to adoption of particular technologies. Glynn and McDonald (1993) note that the literature on adoption barriers describes two major types: structural factors and individual factors. Structural factors include access to the innovation or information about the innovation, government policies affecting the innovation, the immediate and continuing costs associated with adoption, and the increased effort required to maintain the innovation. Individual factors which influence adoption are related to perceptions and beliefs about costs and benefits, and personal characteristics of the individual, such as age, education and income. In addition, such personal characteristics as attitudes toward the innovation or toward specific aspects of the innovation may prove to be factors in adoption (McDonald & Glynn, 1994, Sorensen, 1991; Thomas et al., 1990).

There may also be additional complications that are related to the nature of the innovation itself. For particularly complex innovations, such as Integrated Pest Management, researchers have suggested a "bundling" of technologies that has to occur. In addition, "selective adoption" has been used by a number of researchers to describe a process by which certain parts of the innovation are adopted and other parts are adopted at a slower rate or not adopted at all (McDonald & Glynn, 1994; Ridgley & Brush, 1992; Sorensen, 1991; Wearing, 1988). For example as previously noted. Internet usage (e.g., shopping or information search) may accelerate if set-top boxes become widely available, as people may be more comfortable using a TV and a remote rather than using a PC, modem, and keyboard (Cortese, Hamm, & Hof, 1997).

Adoption of Electronic Technology. Recent studies examined telecommunications and computer adoption by rural midwest businesses, libraries, schools, hospitals and clinics, and government offices and have found increasing use of these technologies in rural areas (Gregg, Abbott, & Korsching, 1996; Leistritz, Johnson, Alien, Olsen, & Sell, 1996; Pellerin. Gregg, Ramsey, Abbott, & Korsching, 1996; Ramsey, Gieseke, & Abbott, 1996; Roberts, Premkumar, Ramsey, Quinn, & Korsching, 1996). However, no research could be located that examined, in depth, rural consumer adoption of computer or TV technology for access to goods and retail services. However, in the future rural retailing will be increasingly influenced by public policy and by the adoption of consumer based technologies, as rural consumers increase interaction with retail suppliers on the information superhighway (Sherman & Topol, 1996).

The study of the diffusion of new technologies used for retail shopping by rural households encompasses why some rural households and individuals adopt technological innovations before others. A standard taxonomy for classifying adopters of innovations by order of adoption through time is: (1) innovators, (2) early adopters, (3) early majority, (4) late majority, (5) laggards (Brown, 1992; Rogers, 1995). Previous studies show there are significant demographic and lifestyle differences between early and later adopters of computer products (Higgins & Shanklin, 1992). With respect to the Internet as a shopping mode used by households, little is known about the diffusion process through time, although general factors affecting the rate of adoption have been identified (Miller, 1993; Herbig & Kramer, 1994; Mehta & Sivadas, 1995; Walker, 1995). Although numerous studies of the general population have been conducted, there has been no major study conducted which focuses on the effect of the newer technologies on-rural consumers.

Rural consumers are not a homogeneous mass that acquires goods and services in conforming patterns. We expect to find diverse segments of rural consumers that vary in use of Internet and other technologies for shopping. Forrester Research, Inc., has identified 12 different "technology types" or consumer segments that vary in use of and attitudes toward computers (Hines, 1997)'. Some segments use computers primarily for entertainment, others use the Web for information acquisition and communications (via e-mail), while other computer user segments use the technology for social interaction and status seeking. Among the segments that are likely to use the Internet, attitudes toward purchasing items over the Web are likely to vary. Other variables that may distinguish segments of users, non-users, and composite users of Internet shopping and TV buying technologies include age, income, education, occupation, willingness to try new things, attitudes toward shopping, distance from regional and urban shopping centers, lifestyle, and time demands. Individual factors which influence adoption are related to perceptions and beliefs about costs and benefits, and personal characteristics of the individual, such as age, education and income. In addition, such personal characteristics as attitudes toward the innovation or toward specific aspects of the innovation may prove to be a factor in adoption (McDonald & Glynn, 1994, Sorensen, 1991; Thomas, Ladewig, & McIntosh, 1990).