Analysis of the barriers that consumers encounter when smart home service is introduced in South Korea

Recently, smart home services have been highlighted as the Internet of things market grows. Since the smart home services were introduced in the market, they were expected to grow rapidly. However, the smart home market recently experienced chasm, and still remains in early stage. This paper tried to find the possible barriers that consumers encounter when they are faced with smart home services. Based on the resistance theory and perceived risk model, this paper investigates the influence of perceived risk on the resistance using the technological uncertainty and service intangibility as the antecedents of the perceived risk. Dividing the perceived risks into four types of performance risk, financial risk, privacy risk and psychological risk, the empirical results show that these four types of risk are affected by the technological uncertainty and service intangibility on the one hand, and have positive effects on the resistance to smart home on the other hand. When the survey respondents are divided into two groups of postponers and rejecters based on the resistance type, there are no big differences except that the privacy risk becomes unimportant to postpners and the financial risk becomes unimportant to rejecters.