Although diffusion models have been successfully used to predict the adoption patterns of new products and technologies, little research has examined the psychological processes underlying the individual consumers adoption decision to new products with network externalities. This paper studied network externalities, which increased perceived innovation, comprehensive and perceived advantage, and influenced the consumer adoptions preference. This paper also uses the knowledge transfer paradigm, studied often in the context of analogies, to demonstrate that subject network knowledge are major factors influencing the consumers adoption process. In the experiments, this study demonstrates that the relationship between subject network knowledge and adoption process. Specifically, this paper's findings indicate that subject network knowledge reduces comprehension, benefits, and therefore lower preferences for innovations resulting from network externalities.