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HOME IS WHERE THE TECH IS: SYNCHING UP WITH CONSUMERS ON THE SMART HOUSE

Marketplace Insights

October 2014

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WE ASKED:

ARE CONSUMERS READY TO WELCOME SMART

TECHNOLOGY INTO THEIR HOMES?

Technology has grown roots in nearly all aspects of our lives— it’s

omnipresent in the classroom, at work, in the car, in stores, and

even outdoors. We use it to track progress, remember tasks,

connect with loved ones, and stay organized. With more and more

smart home products entering the market each day, we wondered

if consumers have a technology threshold. We explored:

1 Would consumers be willing to invite technology into all

aspects of their homes, or is there anywhere in particular that

they feel it would be an unwelcomed guest?

2 What do consumers view as the most beneficial aspects of a

smart home, and what could they do without?

3 Finally, what companies would consumers trust to produce

high-quality smart home products and systems, and where

would they seek these products out?

PROJECT OBJECTIVE

?

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WE FOUND:

CONSUMERS ARE 110% READY FOR SMART HOME

TECHNOLOGY, WITH GUIDANCE FROM A TRUSTED SOURCE.

Consumers, from Millennials to Boomers and everything in

between, are not only ready for the smart home – they’re excited

and already envisioning the ways that they could put the

technology to use. While they’re intrigued by the ability to automate

daily tasks and chores, the perks of a smart house are seen as

most beneficial when consumers are absent from their homes.

They’re ready to purchase smart home technology, but don’t have

a “go-to” brand or store to turn to. Consumers feel that they’d

benefit from a fair amount of guidance as they dive into uncharted

waters. We talked to consumers about how they might use the

technology in their daily lives, and in the process, uncovered their

perceptions of smart homes, their likelihood to adopt the new

technology, and their expectations from brands during the purchase

process.

PROJECT DISCOVERY

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CONSUMER UNDERSTANDING:

It’s a product! It’s a system! It’s… both?

ENTRY TO THE MARKET:

The most enticing initial purchase might surprise you.

SHOPPING BEHAVIORS:

Consumers are open to all options, but partial to none.

SECURITY:

Safety vs. skepticism.

USE IN DAILY LIFE:

I’ll use it all day, every day, from anywhere.

IMPLICATIONS FOR BRANDS

APPENDIX

TABLE OF CONTENTS

1

2

3

4

5

6

7

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CONSUMER UNDERSTANDING

It’s a product! It’s a system! It’s… both?

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While consumers’ visions for the smart home range from something out of The Jetsons to a more informed and accurate portrayal, all consumers struggle to envision the details of the technology. Regardless of their level of understanding, consumers appreciate the technology’s ability to act as a behind-the-scenes task master that works to keep their home secure, comfortable, and clean when they’re away.

Consumers fall into three groups:

IT’S A LIVING, BREATHING, ALL-IN-ONE SYSTEM

Some who are just beginning to grasp the concept envision something like The Jetsons – an all-in-one, whole home system that lives in the walls.

NOT SURE WHERE TO START, IS THERE A GUIDE?

The majority of consumers simply don’t know what a smart home would entail - would it be a whole house system or a series of devices? Who would offer the products and services, and where would they buy them? In the absence of information, they imagine that this new and valuable technology would be quite expensive.

OR… IS IT A SERIES OF PRODUCTS?

Others (mainly those familiar with products that are available now) see a smart home as a series of devices from different manufacturers that they would set up and maintain themselves. In order to make sense of the technology, consumers expect help from the manufacturers via video tutorials, phone resources, online chats and apps.

What I can envision are companies who

can put all (or at least part of) the pieces

together and act as a service company for

you. I see this being done now with

companies like Comcast, AT&T, or Verizon.

I'm sure other companies will enter the

realm eventually, perhaps a Home Depot or

something. - MALE, BABY BOOMER

It would feel like The Jetsons, where simple

things are now in the hands of robots and

machinery. - MALE, GEN XER

LIKE THE JETSONS, IT LIVES IN WALLS

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Consumers view the solutions as valuable, mainly due to the fact that they frequently encounter the problems at hand. Most often,

they could benefit from the remote control aspects that allow them to turn on or off appliances and lights while they’re away.

IT WOULD PROBLEM SOLVE FOR ME

Forgetting to turn the lights off when leaving home 65%

70% Forgetting what to buy at the store

72% Worrying that an appliance was left on

Needing to let someone into the house 47%

Concern with high electric or heating bill 71%

Concern that a dark house is inviting to thieves 58% 61% Not having the time to clean or maintain the house

53% Forgetting to start an appliance

Worrying about pets, belongings or loved ones while away 65%

FINANCIAL

STRAIN

SECURITY

FEARS

HELPFUL

REMINDERS

TIME

SAVINGS

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CONSUMERS HAVE ENCOUNTERED THE FOLLOWING PROBLEMS:

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Male, Baby Boomer

IS WILLING AND ABLE TO INVEST IN TECHNOLOGY

IS SMART

VALUES TIME AND COST SAVINGS

IS ENVIRONMENTALLY CONSCIOUS

IS BUSY

IS TECH-SAVVY

PRIORITIZES SECURITY

IS A TREND-SETTER

The majority of consumers identify with the benefits of smart home technology, and believe there's a place for it in their own homes.

When asked what type of person would buy a smart home, consumers envision someone like themselves. Especially when it comes to

being tech-savvy and up on the latest and greatest, Millennials agree that they fit this mold. Baby Boomers and Generation Xers are less

sure they can navigate the technology.

IS FREQUENTLY AWAY FROM HOME

A SMART HOME OWNER IS TECH-SAVVY, SMART, AND JUST LIKE ME

SMART HOME OWNERS = LIKE ME

A SMART HOME OWNER IS SOMEONE WHO….

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ENTRY TO THE MARKET

The most enticing initial purchase might surprise you.

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CONSUMERS ARE READY AND EXCITED

Consumers foresee the arrival of the smart home to be more imminent than smart cars (that use sensors and cameras to alert drivers

and even autonomously navigate routes with ease), or smart body wearable technology (that tracks heat, light, and movement,

collecting data which can be used to improve the health and fitness of the wearer). Consumers are also more comfortable and excited

for the smart home’s arrival – 91% of consumers say they are excited by the idea of the smart home.

I think this is the future of how all people will

use technology to improve their daily lives.

-FEMALE, GEN XER

I think it is a great idea and will be a common

thing in the future.

-MALE, MILLENNIAL

91% 89% 82%

Smart Home Smart Car Smart Body

Very exciting

Somewhat exciting

Not very exciting

Not exciting at all

8% 11% 18%

EXCITEMENT

84% 84% 74%

Smart Home Smart Car Smart Body

Very comfortable

Somewhat comfortable

Not very comfortable

Not comfortable at all

15% 17% 25%

COMFORT

Percentages refer to total number of consumers, Top 2 and Bottom 2 box NET

THE SMART HOME IS INEVITABLE

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SOME ARE CONCERNED ABOUT THE RELIABILITY OF SMART

HOME PRODUCTS, AND WONDER IF THEY WILL WORK AS

ADVERTISED. THEY WORRY THAT:

• Adding a layer of internet and data coverage to their home’s manual

systems could result in being shut out of even simple light switches if the

Wi-Fi is acting up. They want reassurance that manual operation will

still be available to them in the event of internet, power, or cellular

outages.

• Multiple devices from several providers working on the network of yet

another company could create roadblocks. They want to know that all of

their devices and services will play nicely together.

If something were to break down, it may

be difficult to sort out and go back.

Technology is amazing but is also

prone to glitches and subject to the

desires of customers. If products are

rushed or superficial, real damage can

be done. -MALE, GEN XER

Power outages would cause a problem.

A smart home can't function without

power. Without power, you can't use

many functions in your home.

-FEMALE, MILLENNIAL

56% 44%

TWO KEY SMART HOME ELEMENTS MANUAL OPERATION + SMOOTH SYNCHING ARE ESSENTIAL

• The new technology could have glitches, as many new technologies

do, prompting some to say they’ll wait until the bugs are worked out

before they adopt smart home technology.

Imagine smart home

devices from different

manufacturers would be

able to integrate and work

together

Think only smart home

devices from the same

manufacturer would

be able to integrate

and work together

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THE PRICE FACTOR

AFFORDABILITY is the primary motivator in deciding whether or not to

invest in smart home technology. The purchase price, operating costs, and

PRICE of installation all play a role in determining whether or not it’s time to

make the leap. However, consumers also realize that smart home tech

allows them greater control over their energy usage, opening the door to

REDUCE UTILITY BILLS and SAVE MONEY in the long run.

THE TRUST FACTOR

Consumers are strongly attracted to the smart home’s ability to offer them

PEACE OF MIND. With this technology, they would no longer need to

FEAR their house burning down because an appliance was left on or worry

that they forgot to lock their front door.

THE SIMPLICITY FACTOR

CONVENIENCE and ability to remotely access smart home technology

would save consumers time and make their lives easier. Along this same

vein, they want the technology to be EASY to incorporate into their homes–

easy to install, easy to maintain, and easy to operate.

Consumers would be most motivated to buy smart

home technology if it were offered at an affordable

price.

Smart technology allows consumers to save

money and reduce their utility bills.

Smart home features offer consumers

peace of mind and the knowledge that

their home will be safe from danger.

THEMES AND THEIR RELATIVE WEIGHT

The convenience of smart

home technology makes

consumers' lives easier.

Consumers want

smart home

technology to be easy.

KEY MOTIVATORS TO PURCHASE

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While close to 7 in 10 consumers don’t currently

own any smart home products, most have at least

heard of the smart home products that are

currently available.

Those who own smart home technology most often

cite a thermostat as their first piece of smart home

technology. The thermostat is also the item non-

owners say they’d like to adopt first.

I would like to begin with the smart

thermostat, and gradually add more smart

devices such as appliances and home

security. It would be a good way to start

saving money and get me introduced to

the concept. - MALE, BABY BOOMER

THERMOSTATS: THE GATEWAY DRUG HOW IT ALL BEGINS WITH SMART HOME TECHNOLOGY

OWN OR USE SH

PRODUCTS/SERVICES

WOULD

START USING

FIRST

(NON

OWNERS)*

STARTED

USING FIRST

(USERS)*

Smart

thermostats 18% 36% 44%

Smart lighting 13% 15% 18%

Smart home

surveillance

systems

12% 23% 17%

Smart door locks 7% 12% 7%

Smart air

conditioners 7% 6% 4%

Smart

appliances 6% 3% 3%

Smart

refrigerators 5% 3% 6%

Don’t own SH

products

68%

*Sum of percentages ≠ 100 due to rounding and “other” responses

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Turning off the AC on the weekends and turning it back on before I get home would save me a lot of money as opposed to just

leaving it on all day. That is 80% of my electricity bill in the summer. -MALE, MILLENNIAL

CONTROL IN THE PALM OF YOUR HAND

The idea of controlling your home’s systems via an external

device such as your smartphone is just cool. It appeals to those

who hope to be on the cutting edge of technology, and want to try

out new gadgets.

While thermostats may not be the edgiest smart home product to

hit the market, consumers reach for them first because they

embody the core perceived benefits of smart home technology:

CONSTANT COMFORT:

Works diligently while you’re away; prepares for your arrival to

ensure comfort

ENERGY EFFICIENCY:

Reduces your environmental impact – and your monthly utility

bills

DISASTER PREVENTION:

Gives you the ability to monitor and receive alerts; might prevent

a costly occurrence like a burst pipe

I think it would offer energy cost savings. I think it

would offer the ability to enjoy life by having my

home be comfortable when I arrive home and

possibly be cleaner without having to spend hours

on the upkeep. -FEMALE, MILLENNIAL

Better control over the things you've worked for, plus

saving a ton of money. Well, the smart home should

be able to sense when there's nobody home and

therefore not use so much energy. Plus at anytime

you can notify the "house" to let it know you're on the

way and to warm or cool things off!

-MALE, BABY BOOMER

SMART THERMOSTATS ARE BRILLIANT

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SHOPPING BEHAVIORS Consumers are open to all options, but partial to none.

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COMPANIES THAT ARE TRUSTED TO PROVIDE

TECHNOLOGY THAT WORKS WELL

(TOP TWO BOX)*

Electronics manufacturers (Sony, Apple, Panasonic) 93%

Home appliance companies (GE, Whirlpool, Phillips) 91%

Software companies (Google, Microsoft) 89%

Computer companies (Dell, Toshiba) 87%

Telecommunications companies (AT&T, Verizon, Sprint) 83%

Cable/Internet companies (Comcast, Verizon Fios) 76%

Emerging companies (Nest, Quirky) 61%

ESTABLISHED NAMES LEND CREDIBILITY TO THE

NEW TECHNOLOGY

Consumers trust a wide array of companies to provide

effective smart home technology. Although thermostats are

seen as the ideal entry point into smart house technology,

consumers pointed to emerging companies (such as

thermostat powerhouse Nest) as companies that need to

convince consumers that they can reliably provide a working

product or service.

Millennials are more likely to trust software companies and

emerging companies when compared to Generation Xers and

Baby Boomers.

I would not trust a new company unless they were affiliated with a company that had an established reputation.

-MALE, BABY BOOMER

ESTABLISHED BRANDS = CREDIBLE

*Percentages refer to total number of consumers that trust each company type (Top 2 box NET)

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MEDIA SOURCES

FIND OUT

ABOUT NEW

TECHNOLOGIES

SEEK OUT

MORE

INFORMATION

From friends or family 57% 38%

General news websites 46% 35%

Social media sites (Facebook,

Twitter, etc.) 35% 24%

Technology themed news websites 31% 46%

YouTube 25% 18%

Manufacturer websites 22% 40%

Technology themed news blogs 19% 23%

General news blogs 19% 12%

General television shows (news

programs, etc.) 43% 20%

Technology themed television shows 24% 19%

Technology magazines 24% 27%

Newspaper 23% 16%

General magazines 22% 12%

Word of mouth is most often the way that

people find out about new technologies,

followed by general news sites and TV

shows.

Regardless of where they first hear of new

technology, consumers turn to technology

themed news sites and manufacturer sites

to learn more.

Millennials are significantly more likely to use

news blogs, social media, and YouTube for

both learning and seeking information.

ON

LIN

E

TV

P

RIN

T

WORD OF MOUTH AND ONLINE WHILE WORD OF MOUTH DRIVES DISCOVERY, CONSUMERS SEEK OUT MORE INFORMATION ONLINE

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WHERE WOULD YOU SHOP FOR SMART HOME

PRODUCTS?

Electronics store (Best Buy, Radio Shack, etc.) 69%

Home improvement store (Home Depot, Lowes, etc.) 69%

General online retailer (Amazon, etc.) 51%

Manufacturer website 40%

Discount store (Walmart, Target, etc.) 34%

Specialty online retailer 29%

No retailer or venue stands out as consumers’ one-stop location

for all of their smart home needs. Consumers are just as likely to

shop at an electronics store like Radio Shack or a home

improvement store such as Home Depot as they are to peruse

the selection of an online retailer like Amazon. Although

Millennials also shop at brick and mortar locations, they are more

likely to shop at general online retailers.

In-store demonstrations are paramount to get consumers on

board with the new technology. In order to emerge as a go-to

location, stores should allow consumers the opportunity to learn

how the technology works in person, by a person. This is

especially true among Baby Boomers.

IT’S AN OPEN STAGE NO RETAILER VIEWED AS “THE GO-TO” FOR SMART HOME PRODUCTS

Find in-person store demonstrations helpful

when making a purchase decision

Find store displays helpful when making a

purchase decision

70%

36%

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SECURITY: SAFETY VS. SKEPTICISM

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WHEN ASKED ABOUT THE ADVANTAGES OF A

SMART HOME, NEARLY EVERYONE TALKS ABOUT

THE PEACE OF MIND IT WOULD OFFER.

First and foremost, people want to have more control over

their house when they’re away from it. Some go so far as to

say it’s the only time a smart home would be beneficial. Even

the very few that view smart home technology as lazy and

cold admit that it would be useful while they're out.

They say they’d like to:

• PEEK IN on their homes via cameras, sensors, or the like

to calm their worries about their loved ones, their pets, or

just the nagging suspicion that they left the stove on.

• REMOTELY CONTROL their home and its security –

turning on and off things that they forgot (such as the

alarm or stove), locking the doors from afar, switching the

lights on and off to deter thieves, regulating temperature

via the thermostat and blinds.

• RECEIVE ALERTS about costly problems, such as a

security breach or a drastic change in temperature that

may lead to a burst pipe.

It gives an added security blanket, knowing you can check

on your home from practically anywhere. If you have kids

like I do, they leave lights on all the time. You can use the

cameras if you have a security system to see what is

going on in your house, not just wonder about it. Allows

you to relax while you’re away. -MALE, GEN XER

I travel a lot but being able to actually control my lights so

I can turn them on and off at random would make people

think I am home in case someone was watching my

house. And the door locking, well sadly in my family we

are famous for "did anyone lock the doors?“… Gotta go

back home and check. -FEMALE, GEN XER

WHY SECURITY IS INVALUABLE THE PEACE OF MIND AFFORDED BY BETTER SECURITY IS ALWAYS WORTH IT

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THE SURVEILLANCE ASPECT OF THE SMART HOME HITS AN

EMOTIONAL CHORD WITH CONSUMERS.

Many of those that we spoke to have a loved one in mind when they speak

to the value of being able to monitor a home from away – whether it’s an

aging parent, a child, or a pet.

The ability to be constantly keyed into information such as the status of

appliances and temperature of the house is invaluable to those leaving

loved ones at home. They appreciate the ability to alleviate their worries

and reassure themselves that nothing is amiss from the palm of their hand,

regardless of how far away they might be. Furthermore, if something were

to go wrong, consumers appreciate the ability to act swiftly (and alert

emergency services if needed).

[Home life is] shelter from the storm--a soft place to land. [A Smart Home] could increase comfort--and ease adjustment by

handling automatic things, I guess it would make everyone's lives more comfortable. -FEMALE, BABY BOOMER

7%

As a parent, there is nothing more important than your kids, so having that peace of mind would enable them to concentrate on work…I have an aging parent so being able to check on them would give me great peace of mind.

-FEMALE, GEN XER

If one is away and there is a water line burst, it would be amazing to be able to shut off water to home on a smartphone. I

can just see a scenario where I get an alert of a spike in temperature in a certain room on my phone like a notification and

I can alert the fire department for possible fires. This might save my home and pets if I am away.

-MALE, GEN XER

SECURITY HITS AN EMOTIONAL CHORD

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68% 64%

58%

46% 40%

34% 33%

10% 7%

Cost Data security Homesecurity

Reliability Manualoperation if

fails

Cohesion -productsworkingtogether

Difficult toinstall

Style Cold anduninviting

Consumers are unsure of the technology’s capabilities to keep both their physical and online selves safe from thieves and hackers. In

particular, younger people, smart home owners, and those who are more familiar with the technology are looking for privacy and security

assurances to help build trust. Consumers worry about:

PHYSICAL SECURITY

If they can access their door locks and alarm systems, what’s to stop a thief from doing the same?

DATA SECURITY

Realizing that a smart home would passively collect a large amount of data – and very personal data at that – about a family and their

habits makes consumers feel vulnerable to hackers and identity theft. No matter where the smart home technology lives in their home,

they want to be sure their information isn’t being exploited or shared with a third party.

CO

NC

ER

NS

SECURITY $ WILL IT WORK? AESTHETICS

SECURITY IS A MAJOR CONCERN BENEFITS ASIDE, SECURITY WEIGHS HEAVILY ON CONSUMERS’ MINDS

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USE IN DAILY LIFE I’ll use it all day, every day, from anywhere.

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A DAY IN THE LIFE

MORNING ROUTINE DAY TIME SECURITY NIGHT ROUTINE

NO

TECH

NEEDED

SMART

HOME

TECH

DESIRED

Alarm clock goes

off and the coffee

pot starts running

Stovetop

turns on to

heat skillet

for breakfast

Shower turns on to

reach the perfect

temperature

Remotely turn on

the lights in

daughter’s room to

get her out of bed

Turn off all of the

lights with a click

of the button and

rush out the door

Get ready for

work and make

breakfast for

the family

Drop daughter off

at school and

head to work

Check that the

stove was turned

off via an app

Remotely close the

garage door that was

accidentally left open

Access video feed

to make sure the

dog’s not getting

into any trouble

Smart vacuum

activates and starts

cleaning the carpet

Remotely change

thermostat so that

the house is the

ideal temperature

when arriving home

Remotely set the

oven to preheat

Hop into bed

for a night of

well-deserved

sleep

Leave work and

head home

Prepare dinner

for the family

Spend quality

time with the

family

Turn off all of the

lights with the click

of a button.

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TECHNOLOGY IS WELCOMED INTO THE HOME

Consumers describe their homes as loving, comfortable, relaxing

and stress-free “shelters from the storm” surrounded by loved

ones. Although technology sometimes has the reputation of

creating cold or sterile environments, this simply isn’t the case

with smart home products – only 7% are concerned that too much

technology will make their home feel “cold” and uninviting.

Instead, they view it as something that would grant them the

ability to spend more precious time with family– a resource that is

in short supply in today’s hectic, always-on-the-go lifestyle.

As a working and traveling father, my time at home is limited. Add in homework, baths, dinner, and cleanup and my evenings

with my family are miniscule. Smart Home technology can help me by saving little bits of time throughout the day and allow

me to spend more quality and relaxed time with my family. Such time increases my happiness and the happiness of those

around me. –MALE, GEN XER

Family. Being home with my family is the most important thing to me. Sitting around doing nothing with my family is "home

life.” I feel a Smart Home would give me more time to enjoy my family and also make me feel more safe. –FEMALE, GEN

XER

FAMILY TIME = PRICELESS

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DOES IT IMPROVE QUALITY OF LIFE? THEN, IT’S WELCOME

Most consumers agree that no room of the house should be off limits for

smart home technology, but there are a few who share concerns about it being

integrated into certain activities.

IT SHOULD CREATE FAMILY TIME, NOT DISTRACT FROM IT They mainly worry about family and personal time. They don’t want to force

technology into the time they enjoy interacting with others – at the dinner table,

hanging out with their kids, and … intimate moments. Surprisingly, only a few

mention the bathroom as being off limits.

DON’T MESS WITH MEAL PREP, THAT’S PERSONAL

A handful mention cooking as an activity that they’d like to remain relatively

untouched by smart home technology because they want control over the foods

they eat. Along those lines, consumers explain that everything would need the

ability to be overridden. They want less automation and want the technology to

respond to their directions.

My interactions with my family. I think technology is best left out because it's easy to become distracted. I want my full

attention on them when we're having family time. –MALE, MILLENNIAL

As long as information is controlled with confidence and the products work as they are supposed to, I have no opposition to

any area being improved by Smart Technology. –MALE, GEN XER

I always prepare my meals for the family from scratch. I like the convenience and help of an appliance, but think it’s much

better to make your own meal. –FEMALE, MILLENNIAL

FEW ACTIVITIES ARE OFF-LIMITS

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IMPLICATIONS FOR BRANDS

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IMPLICATION SUMMARY

BRAND LOYALISTS ARE UP FOR GRABS

More than any other smart product, smart homes are seen as inevitable. Consumers are

excited and comfortable with the idea of a smart home – and welcome the solutions that it offers

to problems that are nearly universal. There’s really no place in the home that’s off limits; the

technology adds to the comfort and security of their home life and isn’t seen as cold or

impersonal. That said, there is little brand loyalty in this new landscape. Brands who come to

the market prepared to educate and support consumers through the technology adoption

process will rise to the top as trusted brands.

UNDERSTAND THEIR APPRECIATION, AND FEAR, OF THE ROLE OF SECURITY

IN A SMART HOME

Adding smart home technology is a very attractive prospect, but while it closes (and locks) a

door, it also opens a window to possible exploitation. Remote control of their home’s systems

and the ability to monitor from afar will make consumers feel much more secure and relaxed.

But they worry that the automation of systems and gathering of data provides an opportunity for

thieves to gain access to their home and personal information. It is essential for brands to

provide consumers with reassurance that their loved ones, possessions, and personal data will

be safe.

PLAY UP TIME, EFFORT, AND ENERGY SAVINGS – ALL OF WHICH ARE

UNIVERSALLY APPRECIATED

People primarily see a smart home as a benefit while they’re away, but some do talk about

automating routines while they’re home. Saving time and effort when it comes to household

chores means more quality time with their family and a more comfortable home. The most

compelling benefit of energy savings is the potential to save money on utility bills – an idea that

all consumers can get on board with. Consumers may be willing to spend more on a product up

front if the perceived energy savings are substantial enough to help pay off the investment.

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IMPLICATION SUMMARY CONTINUED

IF YOU DON’T WANT TO START MAKING THERMOSTATS, EMULATE THE VALUE

THAT THEY PROVIDE

The thermostat blends a lot of benefits that people say they like about a smart home – saves them

money, works in the background while they’re away from the house, adds to their comfort, and

avoids problems. It could prove to be the best starter product for those who want to take the smart

home plunge. While not every product will be as all-encompassing, products with the most holistic

benefits will be the most valued and sought after – even if they aren’t the most stylish.

INVEST THE TIME TO EDUCATE CONSUMERS

Because it is a relatively new concept, people are unsure what form a smart home could take.

Quite a few see it as a whole-home system that lives inside the walls and needs costly installation

and upkeep. Even those who understand the basic premise of the technology are unsure of the

functionality of the system and its parts. This uncertainty leads to wild speculation about cost,

putting adoption off the table for many. Offering up the idea that one can start small, with one

device at a much lower cost, could help hesitant consumers gain the courage to explore the

market.

IN-STORE DEMONSTRATIONS ARE VITAL

By seeing the products in action, consumers are better able to understand and envision how they

could implement these technologies in their own homes. Consider creating a demonstration house

that showcases the ability of different products to work together. Additionally, as those more familiar

with smart home technology worry about technical issues, an established problem resolution

system could be very beneficial to educate consumers early on in the process.

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APPENDIX

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METHODOLOGY

PROJECT SPECIFICS:

iModerate conducted a survey with 300 consumers and followed up with

61 for one-on-one conversations (average duration of 30 minutes).

TARGET CONSUMER CRITERIA:

Age 18-74

HHI of $25K or more

Have some kind of interest in new technology

Own a smartphone or tablet

THOUGHTPATHTM

Our qualitative research is based on a cognitive approach called

ThoughtPath. Drawing on three select cognitive theories, ThoughtPath

enables our skilled moderators to get into each consumer’s head and

discover what’s most important to them, what’s not, and why.

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NOW YOU’RE CONSUMER SMART iModerate Research Technologies | 720 S Colorado Blvd. Suite 500 N |

Denver CO, 80246 | www.imoderate.com | 303.333.7880