Bundling Could Overcome Cost Barriers to Smart Home Adoption: Parks

Of the 42% of U.S. broadband households that don’t own or plan to buy a smart home device, 17% say they would likely buy one if the cost were lower, reported Parks Associates Monday. "Price is a major barrier to smart home adoption, especially among younger heads of household, who recognize the value but feel priced out," said analyst Patrice Samuels. Discounting product prices and bundling products to bolster value are ways manufacturers can attract consumers who rank affordability in their top three purchase considerations, Samuels said. Bundling of smart home devices such as plugs, light bulbs or thermostats with a smart speaker can introduce the automated home experience to consumers through a leading entertainment device that can be used to stream music and control smart home functions, said Samuels. More than 50% of broadband customers who don’t own or intend to purchase a smart home device, led by older consumers, say they don’t see benefits to such products. "Familiarity with devices is increasing, but value perception is not,” she said. Brands should emphasize pragmatic value propositions such as energy savings, loss prevention and safety, Samuels said.