Nudging purchase intention towards more secure domestic IoT: The effect of label features and psychological mechanisms

The domestic Internet of Things market is flooded with unsecure devices and yet, the demand rises. This study aimed to find ways for labels to nudge consumers into purchasing safer devices. Two studies were conducted, one with a Dutch student sample (N = 193) and one with a UK population sample (N = 278). Multiple labels were presented to participants to test potential effects of security degree (high vs. low), framing (positive vs. negative) and label type (grade format vs. informative format), in interaction with initial attitude towards smart devices and trust in the label, on purchase intention. Furthermore, we investigated the antecedents of trust in the label. Findings for both studies indicated significant positive effects of high security degree, positive framing, initial attitude and trust in the label on purchase intention. Both studies find that the positive effect of security degree on purchase intention was stronger when initial attitude was higher and when trust in the label was higher. The informative label was both more trusted and more preferred, so therefore recommended to be used. Overall, security information is effective in steering people towards purchasing safer IoT, and higher trust in the label increases the effectiveness of the label.