Taking into consideration these value proposition of smart watch we have conducted a market researchon 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.
LiteratureReviewAsmartwatchis acomputerizedwristwatch with functionality that goes beyondtimekeeping. The earliermodels of smartwatch could perform basic tasks likecalculations,games and translations. The onesintroduced since 2010 can be effectivelycalled ‘wearable computers’. Many are now capable ofrunningapplications, using amobile OS. Some also function asportable media players, with playback ofaudio and video files via USB or Bluetooth. Some models also incorporate fullmobile phonecapabilitiesincluding making or answering phone callsortext messages. Like computers, a smartwatch may alsocollect information from internal or external environment via sensors and it may control, or retrieve datafrom, other instruments or computers.Some serve as sport watches while some others may serve asfullGPS watches. A smartwatch may act as a standalone device and may also serve as an user interfacefor 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 technicalconsumers 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 expensivetechnology which was not powerful enough to provide a varied range of functionalities as compared tothe non-digital watches. The smartwatches are now advancing, especially in their designs, health relatedapplications and battery capacity. Smartwatches offer capabilities that go far beyond the ordinary wristwatch, yet they are sold andmarketed as mere modernized versions of the historically ancient time-device. Smart watches also allowfor the convenience of always having available information access on the wrist. Despite the pool ofadvantages that the smart watches offer, there are some noticeable limitations and drawbacks thatneeds to be addressed. One such area is the power consumption which was mainly due to the GraphicalUser 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 ofthe people. Smartwatch being a very popular concept amongst the young and middle generation of ourcountry, it is imperative to understand how much a consumer is willing to spend on a smartwatch giventhe availability of certain features. Categorising this price range into categories of expensive andinexpensive price is of prime importance to understand the optimal pricing of the product.