Influencing factors on risk perception of IoT-based home energy management services

Abstract

This study examines factors influencing the risk perception of Internet of Things (IoT) services in the home energy management sector. We focus on investigating the effects of the various types of perceived risks and individuals’ propensities on the overall risk perception of the IoT services and explore some demographic variables. The perceived risks include perceived financial risk, perceived performance risk, perceived security/privacy risk, and perceived electromagnetic radiation (EMR) risk. The individuals’ propensities include the sensitivity to electricity price changes, environmental destruction, and new technology acceptance. As a result, this study confirms the existence of various influencing factors in the risk perception of the IoT-based home energy management services. Perceived EMR risk is the most influential one among the various types of perceived risks of the services, followed by perceived performance risk and perceived security/privacy risk. In general, experts point out cybersecurity threats as a weakness of ICT services, but users are more likely to have fear of the EMR. Moreover, sensitivity to electricity price changes and sensitivity to new technology acceptance are significant factors. This study has a significance in that we explore various factors affecting the risk perception of IoT services in the energy management sector in detail and comprehensively. Particularly, we discuss not only perceptions about the IoT services, but also individuals’ propensities. This work may contribute not only to studies on perceived risk and technology acceptance but also to stakeholders trying to market the IoT services to consumers.