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

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  • Schleef, Melina
  • Bilstein, Nicola
  • Schrader, Paul T.
  • Stummer, Christian

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.

Suggested Citation

  • Schleef, Melina & Bilstein, Nicola & Schrader, Paul T. & Stummer, Christian, 2023. "When Smart Products Become Dumb (Again): Voluntary and Legally Required Service Updates and Their Impact on Consumers’ Purchase Intention," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 7(1), pages 52-65.
  • Handle: RePEc:nms:nomsmr:10.5771/2511-8676-2023-1-52
    DOI: 10.5771/2511-8676-2023-1-52
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    Cited by:

    1. Bilstein, Nicola & Stummer, Christian, 2023. "Editorial – Special Issue: Managing Smart Services and Smart Service Systems," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 7(1), pages 2-6.

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