Net Valence Model Perspective on Indonesian Adoption of Korean Smart Health Monitoring Devices: The Moderating Role of Income

Abstract

This study examines Indonesian consumers' adoption of Korean smart health-monitoring devices by investigating how perceived benefits and perceived risks influence intention to use, with income as a key moderating variable. Using survey data from 224 respondents and analyzing the model through PLS-SEM, the findings show that performance expectancy, effort expectancy, compatibility, and image significantly enhance perceived benefits, while privacy, security, performance, time, and financial risks substantially increase perceived risk. Both perceived benefits (β=0.431, t=7.319) and perceived risk (β=0.506, t=8.755) strongly predict intention to use, indicating that consumers simultaneously evaluate value and uncertainty when considering these devices. Income significantly moderates these relationships by strengthening the effect of perceived benefits (β=0.129, t=2.041) and reducing the impact of perceived risk (β=- 0.151, t=2.288), indicating that consumers with higher income prioritize functional benefits and are less discouraged by potential risks. Theoretically, this study extends the Net Valence Model to an emerging-market context and demonstrates the importance of socioeconomic differences in benefit and risk evaluation. Practically, the findings highlight the need for differentiated market strategies that emphasize innovation for higher-income consumers and affordability and data-security assurances for lower-income groups.