Exploring how security and privacy affect IoT device purchase behaviour

Abstract

Given the significant privacy and security risks of IoT devices, it seems desirable to nudge consumers towards buying more secure devices and taking privacy into account when purchasing these devices. In order to support this goal, this study has examined the effect of security and privacy on IoT device purchase behaviour and assessed whether these effects are sensitive to framing with a mixed methods approach. The first part of the study focuses on quantifying the effect of security and privacy compared to the effect of other device attributes such as the price or functionality by testing a causal model with choice models that have been developed from stated choice data. The second part aims to reveal the underlying mechanisms that determine the effect of privacy and security on purchase behaviour by means of a qualitative survey. The results suggest that security and privacy can strongly affect purchase behaviour, under the circumstances that privacy and security related information is available and communicated in an understandable manner that allows consumers to compare devices. Moreover, the results show that a description of security that focuses on gains is more effective in nudging consumers towards buying more secure devices. Future efforts could build upon this study by comparing the effect of security and privacy to more device attributes, such as ease of use or cost reduction or providing a technical, institutional or process design for a collaboratory effort to nudge users towards buying more secure devices and taking privacy into account when purchasing devices.