What is security worth to consumers? Investigating willingness to pay for secure Internet of Things devices

John M Blythe,Matthew Manning,Shane D Johnson

doi:10.1186/s40163-019-0110-3

John M Blythe, Matthew Manning + Show 1 more

Open Access

https://doi.org/10.1186/s40163-019-0110-3

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Abstract

The Internet of Things (IoT) is considered the next technological revolution. IoT devices include once everyday objects that are now internet connected, such as smart locks and smart fridges, but also new types of devices to include home assistants. However, while this increased interconnectivity brings considerable benefits, it can and does increase people’s exposure to crime risk. This is particularly the case as most devices are developed without security in mind. One reason for this is that there is little incentive for manufacturers to make devices secure by design, and the costs of so doing do not encourage it. The principle aim of the current paper was to estimate the extent to which consumers are willing to pay for improved security in internet connected products. The second aim was to examine whether this is conditioned by their exposure to security-related information. Using an experimental design, and a contingent valuation method, we find that people are willing to pay for improved security and that for some devices, this increases if they are exposed to information about security prior to stating their willingness to pay. The implications of our findings for industry and the secure by design agenda are discussed.

Highlights

The internet has transformed society, generating new opportunities for social interaction, business opportunities, and communication
We investigate the extent to which consumers care about security by estimating the extent to which: (i) they are willing to pay for the security of consumer Internet of Things (IoT) devices; (ii) their willingness to pay (WTP) is influenced by the level of improvement in security offered; and (iii) their WTP is influenced by exposure to security-related information
To what extent are consumers willing to pay for the security of different Internet connected products? Second, is WTP influenced by the percentage improvement in security afforded and third, is WTP influenced by exposure to security-related information? To test the hypotheses, we use data collected through an online survey that examined consumers’ WTP for improved security in IoT devices

Summary

Introduction

The internet has transformed society, generating new opportunities for social interaction, business opportunities, and communication. Manufacturers have taken advantage of the interconnectivity that the internet facilitates to produce electronic products that can send and receive data over the internet, and be controlled remotely. Such devices are collectively known as the Internet of Things (IoT) and include internet connected security cameras, thermostats, toys, and even fridges. Like the internet itself, such devices have the potential to improve our lives in a variety of ways. Internet connected security cameras allow us to monitor our homes remotely, making them more secure.

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