Consumer valuation of the wearables: The case of smartwatches

Abstract

Wearable devices indicate objects encompassing both mobile computing and fashion characteristics. Although the combination of the two characteristics is relatively new, consumers’ recognition of smartwatches, one type of wearable, is increasing. However, despite the heightened interest in smartwatches, sales are growing more slowly than expected. In order to comprehend this, we should understand potential consumers’ perceptions of smartwatches. This study explored how much potential consumers value various smartwatch attributes by examining their preference structure of the wearable. The preference structure was generated from a conjoint analysis including five smartwatch attributes: brand, price, standalone communication, display shape, and display size. We also compared findings by user group (current wristwatch users vs. non-users). Results showed that display shape and standalone communication are more critical factors influencing respondents’ smartwatch choices than brand and price for both types of users. Results also revealed that a curved display shape is most preferred