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Smart services in healthcare: A risk-benefit-analysis of pay-as-you-live services from customer perspective in Germany

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  • Rouven-B. Wiegard

    (Leibniz Universität Hannover)

  • Michael H. Breitner

    (Leibniz Universität Hannover)

Abstract

The recent boom in wearable technologies generates enormous vital data sets, which are the ideal starting point for new service offers by Big Data Analytics. In a Pay-As-You-Live (PAYL) service, insured track activities, transfer current data on the lifestyles of users, who receive rewards from their insurance companies. The aim of this study is to investigate the readiness of customers to adopt PAYL services using wearable technology by comparing perceived privacy risks and perceived benefits. The research model is developed on a basis of a literature review and expert interviews. By conducting an online survey involving 353 participants, a structural equation modelling approach is used to test the research model. The results show that current privacy risk factors dominate the perceived value of an individual to use PAYL services. Insurance companies, service providers and manufacturers of wearables must therefore primarily work together and offer solutions for greater data security and data protection before focusing on gamification and functional congruence.

Suggested Citation

  • Rouven-B. Wiegard & Michael H. Breitner, 2019. "Smart services in healthcare: A risk-benefit-analysis of pay-as-you-live services from customer perspective in Germany," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(1), pages 107-123, March.
    • Handle: RePEc:spr:elmark:v:29:y:2019:i:1:d:10.1007_s12525-017-0274-1
    DOI: 10.1007/s12525-017-0274-1
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    References listed on IDEAS

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    Cited by:

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    2. Tran, Cong Duc & Nguyen, Tin Trung, 2021. "Health vs. privacy? The risk-risk tradeoff in using COVID-19 contact-tracing apps," Technology in Society, Elsevier, vol. 67(C).
    3. Angela Zeier Röschmann & Matthias Erny & Joël Wagner, 2022. "On the (future) role of on-demand insurance: market landscape, business model and customer perception," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(3), pages 603-642, July.
    4. Martin Eling & Irina Gemmo & Danjela Guxha & Hato Schmeiser, 2024. "Big data, risk classification, and privacy in insurance markets," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 49(1), pages 75-126, March.
    5. Rainer Alt & Haluk Demirkan & Jan Fabian Ehmke & Anne Moen & Alfred Winter, 2019. "Smart services: The move to customer orientation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(1), pages 1-6, March.
    6. Christiane Lehrer & U. Yeliz Eseryel & Annamina Rieder & Reinhard Jung, 2021. "Behavior change through wearables: the interplay between self-leadership and IT-based leadership," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(4), pages 747-764, December.
    7. Shang, Dawei & Wu, Weiwei & Schroeder, Daniel, 2023. "Exploring determinants of the green smart technology product adoption from a sustainability adapted value-belief-norm perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    8. Rainer Alt, 2021. "Electronic Markets on platform complexity," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(4), pages 737-742, December.
    9. Nora Nahr & Marikka Heikkilä, 2022. "Uncovering the identity of Electronic Markets research through text mining techniques," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1257-1277, September.
    10. Davide Lanfranchi & Laura Grassi, 2022. "Examining insurance companies’ use of technology for innovation," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(3), pages 520-537, July.

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    More about this item

    Keywords

    Pay-As-You-Live service; Wearable technologies; perceived privacy risk; perceived benefit; intention to use;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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