In smartness we trust: consumer experience, smart device personalization and privacy balance

Abstract

Purpose

Drawing on the personalization–privacy paradox and guided by means–end analysis, this study explores how consumers balance their concerns for privacy and the benefits of smart home device personalization and the role that trust plays in the process. More specifically, this study aims to investigate how perceptions of smart device personalization and privacy concerns are shaped by consumers’ experiences and the role of trust in the deliberation process.

Design/methodology/approach

In-depth interviews were conducted across diverse demographic groups of smart device users to shed light on the balancing act between personalization and privacy.

Findings

The study found that product experience, ownership type, perceived value of convenience and control and quality of life via “smart things” are key motivators for product usage. The benefits of tailored recommendations and high relevance are balanced against the risks of echo chamber effects and loss of control. The results also show the role of active involvement in the privacy calculus and trust level. The study points to the significance of an ecosystem-based service/business model in gaining consumer confidence when they balance between personalization and privacy.

Originality/value

Although many studies have explored trust, privacy concerns and personalization in an artificial intelligence (AI)-related context, few have addressed trust in the context of both smart devices and the personalization–privacy paradox. As such, this study adds to the existing literature by incorporating the concept of trust and addressing both privacy concerns and personalization in the AI context.

Citation

Chan-Olmsted, S., Chen, H. and Kim, H.J. (2024), "In smartness we trust: consumer experience, smart device personalization and privacy balance", Journal of Consumer Marketing, Vol. 41 No. 6, pp. 597-609. https://doi.org/10.1108/JCM-12-2021-5072