The impact of IoT security labelling on consumer product choice and willingness to pay

Abstract

The Internet of Things (IoT) brings internet connectivity to everyday electronic devices (e.g. security cameras and smart TVs) to improve their functionality and efficiency. However, serious security and privacy concerns have been raised about the IoT which impact upon consumer trust and purchasing. Moreover, devices vary considerably in terms of the security they provide, and it is difficult for consumers to differentiate between more and less secure devices. One proposal to address this is for devices to carry a security label to help consumers navigate the market and know which devices to trust, and to encourage manufacturers to improve security. Using a discrete choice experiment, we estimate the potential impact of such labels on participant's purchase decision making, along with device functionality and price. With the exception of a label that implied weak security, participants were significantly more likely to select a device that carried a label than one that did not. While they were generally willing to pay the most for premium functionality, for two of the labels tested, they were prepared to pay the same for security and functionality. Qualitative responses suggested that participants would use a label to inform purchasing decisions, and that the labels did not generate a false sense of security. Our findings suggest that the use of a security label represents a policy option that could influence behaviour and that should be seriously considered.

Online self-exclusion from multiple gambling venues: Stakeholder co-design of a usable and acceptable self-directed website

“…It was important to incorporate security measures and to promote the existence of these to end users via website content, thus reassuring them that the system is safe to use. Our findings are consistent with e-commerce and behavioral economics studies indicating higher consumer confidence and engagement with websites displaying security or ‘trust’ badges ( Johnson et al, 2020 , Nong and Gainsbury, 2019 ). Beyond the current website, these findings may be extended to inform efforts to improve the uptake of eHealth programs that require sensitive end user data; specifically, by highlighting the importance of transparent communication of security information to end users in a format that is easy to interpret ( Van Gemert-Pijnen et al, 2011 ).…”

Do desire, anxiety and personal innovativeness impact the adoption of IoT devices?

“…Cyber security is an area of interest for not only researchers in the area of Computer Science or Information Systems but also for those in consumer behavior or marketing (Johnson et al , 2020; Pham et al , 2020). Given its multidisciplinary relevance, the adoption of IoT assistive devices must be examined from different perspectives.…”

Responsible innovation for digital identity systems

“…Developing trust requires a two-way information flow to ensure individuals and organizations understand each others requirements and limitations. Interventions and artifacts built through stakeholder participation, such as security enhancing labeling practices, provide an avenue to enhance trust in digital technology ecosystems (Johnson et al, 2020). Greater stakeholder participation in the development and deployment of eID systems, can help build trust in the digital ecosystem, address contextually relevant ethical concerns, ensure safety and security of individuals as well as achieve collective socioeconomic benefits.…”