Consumers’ acceptance of domestic Internet-of-Things: The role of trust and privacy concerns

Domestic Internet-of-Things (IoT) devices such as smart speakers and lights are a rapidly growing segment of the personal technology market, yet our understanding of what drives consumers to adopt these devices is limited. Using data from a large-scale survey of a representative sample 930 New Zealanders, this research examines the drivers of IoT adoption and usage, and the role of privacy concern and trust. The results from our Structural Equation Model (SEM) demonstrate that perceived usefulness and trust in the IoT provider are key factors driving domestic IoT adoption. Moreover, drivers of intention to use IoT differed between consumers who had already adopted IoT and those who had not. Although consumers expressed having privacy concerns, these did not influence intention to use IoT. Our findings suggest the presence of a privacy paradox with respect to domestic IoT and provide managerial insights into what drives adoption and usage of IoT devices.