How Consumer Values Shape Perception and Cognition in Smart City Development

Abstract

Despite increasing investments in smart city initiatives, a key research gap remains in aligning technological development with citizen-centric values and preferences. This study aims to (1) identify the smart city domains that residents in Taiwan perceive as most critical; (2) evaluate how consumer values—functional, social, emotional, novelty, and contextual—affect perception; (3) determine which values influence willingness to live in smart cities; and (4) offer policy recommendations aligned with public expectations. A structured questionnaire was designed, incorporating Likert-scale items across five smart city domains and five consumer value categories. Responses from 450 residents across all six municipalities in Taiwan were analyzed using structural equation modeling (SEM). The model tested 15 hypotheses, examining relationships between smart city components, perceived values, and behavioral intention. The SEM analysis involved confirmatory factor analysis, path modeling, and bootstrapping for mediation effects. The findings indicated that smart transportation and smart governance most strongly drove positive perceptions of smart city development. Among consumer values, only functional and contextual value significantly influenced residents’ willingness to live in or recommend smart cities. This study contributes a value-based framework to smart city planning, providing empirical insights for designing resident-driven, sustainable urban environments.