Willingness to Pay for Smart Car Security

Smart cars have become more intelligent and technologically complex; however, consumers have raised concerns about their security because of hacking and technical safety. Although numerous studies have focused on the technological issues of smart cars, there is a need for new perspectives and discussions to examine drivers’ perceptions of smart car security and safety. Understanding drivers’ security perceptions and behaviors in a smart car environment is crucial for enhancing smart car security and driving industrial growth. Therefore, this study analyses the factors affecting drivers’ willingness to pay (WTP) for smart car security based on protection motivation theory and explores the relationship between protective motivations and post-behavior. This study analyses how drivers’ security vulnerabilities and severity perceptions in a smart car environment affect their WTP for security software. In addition, the comparative analysis discusses how security perceptions differ between traditional PC and smart car environments. The results of this study demonstrate that drivers are sensitive to smart car security and are willing to pay to strengthen security. Moreover, the results of this study suggest that the role of security solution companies is important for strengthening smart car security and expanding the market. This study has academic significance because it is an early study discussing driver behavior related to smart car security software on a theoretical basis. It is also significant because it provides practical implications for smart car security market growth and guides the formulation of effective security policies.