Taking into consideration these value proposition of smart watch we have

Taking into consideration these value proposition of

This preview shows page 2 - 4 out of 12 pages.

Taking into consideration these value proposition of smart watch we have conducted a market research on the pricing perception of a smart watch and consumer characteristics analysis given certain features. This was done with the help of Discriminant Analysis and Van Westordorp Pricing model.
Image of page 2
Literature Review A smartwatch is a computerized wristwatch with functionality that goes beyond timekeeping . The earlier models of smartwatch could perform basic tasks like calculations , games and translations . The ones introduced since 2010 can be effectively called ‘ wearable computers . Many are now capable of running app lications , using a mobile OS . Some also function as portable media players , with playback of audio and video files via USB or Bluetooth . Some models also incorporate full mobile phone capabilities including making or answering phone calls or text messages . Like computers , a smartwatch may also collect information from internal or external environment via sensors and it may control, or retrieve data from, other instruments or computers. Some serve as sport watches while some others may serve as full GPS watches . A smartwatch may act as a standalone device and may also serve as an user interface for a remote system like a smartphone , communicating with it through wireless technologies. In the present day scenario, smartwatches are seen as socially acceptable in this modern digital world, and are considered as an alternative interface for information access. This is a dense market of technical consumers who possess the buying power and this has managed to attract many advertisers. However, the idea of strapping a computer to one's wrist is not new. But the initial days saw an expensive technology which was not powerful enough to provide a varied range of functionalities as compared to the non-digital watches. The smartwatches are now advancing, especially in their designs, health related applications and battery capacity. Smartwatches offer capabilities that go far beyond the ordinary wristwatch, yet they are sold and marketed as mere modernized versions of the historically ancient time-device. Smart watches also allow for the convenience of always having available information access on the wrist. Despite the pool of advantages that the smart watches offer, there are some noticeable limitations and drawbacks that needs to be addressed. One such area is the power consumption which was mainly due to the Graphical User Interfaces (GUI’s) and Operating Systems (OS’s) used. Amidst all these, to know how to market the smart watch, it is very important to study the mindset of the people. Smartwatch being a very popular concept amongst the young and middle generation of our country, it is imperative to understand how much a consumer is willing to spend on a smartwatch given the availability of certain features. Categorising this price range into categories of expensive and inexpensive price is of prime importance to understand the optimal pricing of the product.
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 12 pages?

  • Winter '17
  • Prof Natwar Lal
  • Debt

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture