Frontiers in Business, Economics and Management ISSN: 2766-824X | Vol. 13, No. 3, 2024 386 Research on Consumer Purchasing Factors of Smart Home Jingting Shen, Ziheng Zhang Xiamen University Tan Kah Kee College, Zhangzhou, Fujian, 363000, China Abstract: With the continuous development of science and technology, smart home products have been widely used in daily life. The purpose of this paper is to explore smart home consumer purchasing factors and to gain insight into the main considerations of consumers in purchasing smart home products by analysing current market data. The findings show that privacy and security, compatibility with other products, ease of installation and use, cost-effectiveness and brand reputation are the main factors influencing the purchase decision of smart home products. Meanwhile, consumers' income level and willingness to spend budget for them also have some influence on their purchase intention. Keywords: Smart home, consumer purchase factors. 1. Introduction In recent years, as a newborn industry, smart home is at the tipping point between the introduction period and the growth period, and the consumption potential of the smart home market is huge once consumers' usage habits have been cultivated. According to statistics, the consumption ability of Chinese netizens is constantly expanding, and the consumption structure is also upgrading along with it, presenting a shift in consumption from focusing on the satisfaction of quantity to the pursuit of quality improvement, from tangible material goods to more service consumption, and from replicated platoon consumption to differentiated and diversified consumption. The definition of smart home equipment is also more diversified in the consumer centre. With the rapid development of information technology, smart home products have become an indispensable part of people's daily life. The popularity and application of smart home products have brought a lot of convenience to people's lives, such as smart home equipment can be used as a small assistant in life, freeing up the hands of consumers to share their chores and bring a lot of convenience; smart home systems can be used to remotely control the home's lighting, air conditioning, TV and other equipment through mobile phones, and smart security systems can monitor home security in real time. In addition can also be used as a close friend, with new consumers more intimate companionship. However, what factors do consumers consider when buying smart home products? 2. The Current Situation of The Smart Home Market from The Perspective of Consumers 2.1. Smart home is gradually entering the field of vision of the majority of consumers With the rapid development of the current smart home market, consumers' attention to the smart home has also increased, but also showed a high degree of concern for the smart home market, now such as more people in the new house renovation to choose a home, but also the smart home into consideration, which is enough to show that the smart home is entering the lives of people, will become the new trend. From iiMedia Research (iMedia Consulting) data show that in 2021, the surveyed consumers to buy home furnishings is the most concerned about the top five factors are product quality (47.9%), whether the price is reasonable (42.2%), whether the environmental protection (40%), whether it is easy to clean and take care of (39%), and home furnishing style with (37.8%). In terms of the channels through which consumers learnt about smart homes, most consumers learnt about smart homes through social or e-commerce grass-roots platforms, 24% through brands' offline geo-promotional activities, 17% through recommendations from interior designers, and 13% through recommendations from friends. 2.2. Consumers' preferred product interaction method for the current smart home consumption Consumers for smart home requirements more convenient to solve a variety of problems in life, and improve the quality of life. From the smart home consumer preference for product interaction shown in Figure 2, in the use of smart home consumers in China, 47% of consumers have more experience for voice interaction, 28% of consumers are using mobile phone APP way, most of the current domestic smart home brands also use this kind of interaction, 20% of consumers are automatically adjusting the way, the above kinds of interaction are brought to the life of consumers. Interaction methods have brought great convenience to consumers' lives, making life more comfortable and easy, and also reflecting that consumers are satisfied with the smart home experience. 2.3. Consumers' top factors of concern for smart home products Further to the survey, Figure 3 shows the results of the survey on the top factors of concern for products in the smart home market. 47% of consumers said that privacy and security are the top factors they focus on when choosing smart home products, 19% of consumers focus on the compatibility with other products, such as Xiaomi's smart home products have broad compatibility and can be seamlessly connected to a wide range of mainstream smart home platforms on the 387 market; 13% of consumers focus on whether smart home products are convenient to install and use; 12% of consumers said they focus on the cost-effectiveness of smart home products; and 9% of consumers focus on smart home brands. Consumers focus on whether the installation and use of smart home products is convenient; 12% of consumers said they focus on the cost-effectiveness of smart home products; 9% of consumers focus on how the reputation of smart home brands. The results of this survey show that the current smart home products still give consumers a better shopping and use experience, allowing consumers to enter the smart home experience, but most of the current concerns are focused on privacy and security, and need to be upgraded to satisfy the needs of consumers. 2.4. Consumer budget for smart home products From the survey results, 33% of consumers buy smart home budget in more than 10,000 yuan (including 10,000 yuan), most of the budget for the 5,000-10,000 yuan range, for most ordinary consumers, smart home products still belong to the "luxury". Currently on the market smart home or belong to the high cost of the situation, after the maintenance and care costs for consumers is also an unpredictable. In this regard, the high price of smart home products is still the most important factor influencing consumers to buy. 2.5. Diversified consumer demand for smart home products From the survey results, consumers for intelligent security detection (at any time to monitor the gas leakage, water pipe leakage and other security risks, but there are security issues occurring immediately send an alarm) accounted for 39%, indicating that the most critical needs of consumers or smart home product safety performance, the other items are remote control of household appliances and electronic products, remote control of the house scene state (such as lights, curtains switch, etc.) Intelligent security alarm (e.g., through intelligent door locks, windows and doors, and other equipment such as identifying strangers to enter) 3. The Development Prospects of The Smart Home Market With the rapid development of Internet technology, the entire smart home industry has also developed, through the Internet and the Internet of Things technology, the smart home will be connected to a variety of devices at home, providing home appliance control, lighting control, telephone remote control, indoor and outdoor remote control, burglar alarm, environmental monitoring, HVAC control and other functions and means. The smart home industry is not only facing many challenges, but also many difficulties to overcome. From the current market situation: smart home mainly by two parts of the manufacturers to assume the main role, part of the Huawei, millet and other large companies, they create and research and development of smart home products through their own, to attract more companies to join the smart home products market, and jointly promote the development of the smart home market; the other part of the home appliance giant enterprises, they manufacture their own products at the same time, and actively respond to the call for the smart home market construction to contribute a part. smart home market construction. The upgrading and creation of smart home products not only provides consumers with various conveniences in life, but also improves the safety index in life and meets the spiritual needs of consumers. It also contributes to the bad environment of environmental protection and energy saving, and also responds to the call of the moment. Looking to the future, the smart home industry will usher in a broader space for development, but also with the needs of consumers, combined with the application of artificial intelligence technology and scenarios to upgrade to promote the further development of the smart home industry. Acknowledgment Fund projects: Xiamen University Tan Kah Kee College 2023-2024 College Students Innovation and Entrepreneurship Training Program University-level Project (199) References [1] Liao L , Liang Y , Li H ,et al.A systematic review of global research on natural user interface for smart home system [J]. SSRN Electronic Journal, 2023.DOI:10.2139/ssrn.4075563.. [2] Dionysis S , Chesney T , Mcauley D .Examining the influential factors of consumer purchase intentions for blockchain traceable coffee using the theory of planned behaviour [J]. British food journal, 2022.. 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