When Smart Products Become Dumb (Again): Voluntary and Legally Required Service Updates and Their Impact on Consumers’ Purchase Intention

Abstract

Ultimately, it is the software that makes and keeps products smart. Accordingly, the peculiarities of the provision of service updates (i.e., regular software updates allowing all functions of a smart product to work properly) can affect consumers’ purchase intention. In our research, we investigate the following: (1) whether the seller’s commitment to delivering service updates for a certain time affects consumers’ purchase intention, (2) whether it makes a difference if the provision of service updates is mandatory (i.e., legally required) or voluntary, and (3) whether it could be an advisable strategy to complement a mandatory provision by incorporating a voluntary extension. To gain such insights, we conducted two experimental studies in the context of a durable consumer product (i.e., a smart dog collar) in Germany. Our results can be valuable for managers who are responsible for the market introduction of smart offerings.