Sociable robots or focused speakers? Transforming customer experience with communication style and embodiment type in smart home devices adoption

The rising demand for AI-powered smart home solutions has produced a recent surge in the adoption of smart home devices (SHDs). SHDs are uniquely situated within private, personal environments, and understanding the impact of device design on users' parasocial relationship, privacy perceptions, and overall adoption is crucial; however, the literature lacks a satisfactory exploration of this essential facet of integrating intelligent devices into everyday living. This study addresses this deficit by analysing the nuanced interplay between device design features and user adoption intentions. An online experiment was conducted using a 2 (communication style: task-oriented vs. social-oriented) x 3 (embodiment type: application voice vs. virtual animation vs. physical robot) between-subjects design (N = 297). The findings indicate that SHDs employing a social-oriented communication style, while promoting stronger parasocial interactions, are simultaneously correlated with increased perceptions of privacy risk when compared to those utilising a task-oriented communication style. The more embodied the SHDs, the stronger the perceived parasocial interaction. Furthermore, higher perceived privacy risks negatively affect purchase intention. The findings provide novel insights into the design of SHDs that not only address privacy concerns but also create positive user experiences in IoT-based smart homes, thereby fostering long-term adoption.