Home value, family size, and having a working spouse who travels are also associated with alarm ownership. The decision process involves several stages from need awareness through the gathering and evaluation of information, purchasing an alarm, and post-purchase information. A critical factor determining whether a family buys a security system is if it is affordable. The second factor is whether a neighbor had been burglarized recently. Data from both owners and nonowners suggest that residential homeowners still regard alarm systems primarily as a luxury good, even in very wealthy communities. Thus, to increase installations, the alarm industry must successfully transform the perception of alarm systems from a luxury good to a necessity. Dealers must also understand that they are providing a service consisting of protection and peace of mind rather than equipment. The alarm industry should improve its public relations efforts through mass advertising and personal selling. Promotional messages should emphasize positive factors such as personal protection, increased peace of mind, and possible home insurance savings rather than negative factors such as fear. Alarm associations should also strengthen their ties with insurers and police agencies and ensure quality control. Figures