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.
