Taking into consideration these value proposition of

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.

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.