Economic Feasibility Assessment of Smart Space Development Projects: A User-Centered Value Evaluation Using Price Sensitivity Measurement

This study aims to empirically evaluate the economic feasibility of smart space development projects— promoted as part of national smart city policies—by applying the Price Sensitivity Measurement (PSM) method to identify users' perceived value and acceptable price range. While most previous studies have focused on technology-driven approaches, this research places emphasis on a user-centered perspective, quantitatively measuring willingness to pay (WTP) and identifying optimal price points. The analysis was based on survey data collected from 80 participants across three regions— Jeungpyeong, Dangjin, and Pocheon—selected as part of the 2024 Smart City Solution Expansion Program by the Ministry of Land, Infrastructure and Transport. All participants had engaged in Living Lab activities in their respective regions. The study conducted separate PSM analyses for smart space construction and service provision. Results indicate that the acceptable price range for smart space construction lies between KRW 315,000 and KRW 1,080,000, with an optimal price point of KRW 425,000. For smart services, the acceptable range was between KRW 35,000 and KRW 50,000, and the optimal price point was KRW 45,000. These findings provide practical implications for setting policy-level budgets, designing differentiated service models, and justifying investment decisions. In particular, the study contributes to smart city policy by offering a quantifiable, demand-based reference for determining cost-effectiveness and securing public acceptance.