The Impacts of Privacy Rules on Users' Perception on Internet of Things (IoT) Applications: Focusing on Smart Home Security Service

Abstract

As communication and information technologies advance, the Internet of Things (IoT) has changed the way people live. In particular, as smart home security services have been widely commercialized, it is necessary to examine consumer perception. However, there is little research that explains the general perception of IoT and smart home services. This article will utilize communication privacy management theory and privacy calculus theory to investigate how options to protect privacy affect how users perceive benefits and costs and how those perceptions affect individuals’ intentions to use of smart home service. Scenario-based experiments were conducted, and perceived benefits and costs were treated as formative second-order constructs. The results of PLS analysis in the study showed that smart home options to protect privacy decreased perceived benefits and increased perceived costs. In addition, the perceived benefits and perceived costs significantly affected the intention to use smart home security services. This research contributes to the field of IoT and smart home research and gives practitioners notable guidelines.