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Consumer Behavior
MotivationtobuyWEARABLE
DEVICES
Table of Contents
Introduction ...................................................................................................................... 4
Project Objective ............................................................................................................... 4
Qualitative Research: ........................................................................................................ 4
LiteratureReview..............................................................................................................5
Motivation Theory ............................................................................................................ 5
SATISFACTION/DISSATISFACTION...............................................................................................6
Equity..................................................................................................................................... 7
Need Achievement ................................................................................................................ 7
Expectancy-Value Models ..................................................................................................... 7
INDUSTRY ANALYSIS .......................................................................................................... 7
Classification of wearable smart devices ............................................................................... 8
Healthcare & fitness............................................................................................................... 8
Wearable cameras................................................................................................................. 9
Smart glasses ........................................................................................................................ 9
Smart Watches ...................................................................................................................... 9
Others.................................................................................................................................. 10
Wearables Market Today ......................................................................................................... 10
World Wide market share for Wearable devices ....................................................................... 11
Growth Accelerators ................................................................................................................ 13
Growth Inhibitors ..................................................................................................................... 13
Currentresearch.............................................................................................................14
New wearables in market................................................................................................ 15
LIVE by EarlySense .................................................................................................................... 16
Ava........................................................................................................................................... 16
Rapael Smart Glove .................................................................................................................. 17
Rapael Smart Board .................................................................................................................. 17
K’Track Glucose ........................................................................................................................ 17
Fever Scout .............................................................................................................................. 18
Vivobarefoot smart shoes ........................................................................................................ 18
Conclusion ....................................................................................................................... 19
Attractiveness is the key to driving demand........................................................................ 19
Security................................................................................................................................... 19
Wearable technology means different things to different businesses............................... 19
The time has come for smart watches.................................................................................. 20
Limitless potential ................................................................................................................. 20
References .............................................................................................................. 21
Introduction
The latest innovations in hardware technology in recent years has opened doors to new
immersive experiences. “SMART” is not a buzzword for phone anymore with advent of
SMART Wearables – Watches, fitness bands, Glasses etc. Smart-industry is an industry
focusing on researching and developing smart devices or smart technologies which have an
ordinary look but possess special abilities or functions by having sensors, computer chips or
ways to communicate to support users. In the next few years, smart technologies will be integral
part of our lives just like SMART PHONES are these days. In our project we have focussed on
wearable devices.
We will begin with introducing variety in wearable devices. Next we review the current
ecosystem of wearable industry. We will do a literature for some of motivation theories and
apply them to understand the consumer motivations for buying wearable devices. We are
planning to conduct a focus group discussion to get qualitative data. As part of this study we
will be analysing secondary data and conduct a primary qualitative survey to understand
customer behaviour in choosing and using wearable smart devices.
Project Objective
The objective of the study is:
To study factors influencing purchase of a Smart wearable device
The research will be carried out in two phases.
The first phase consisted of a qualitative analysis. For the formulation of the research
objectives, the authors relied on their own experience, and by forming a general view of what
consumers expect from their smart wearable device. This, along with a literature review on
the problem, helped in making appropriate research objectives.
Qualitative Research:
The next step in Phase 1 consisted of conducting Focused Group Discussions (FGD) among
regular working men and women as well as IIM-L students. To conduct these, an FGD guide
was framed in which the authors framed questions to explore in detail each research objective.
The interviewees were asked questions indirectly, through personification tests, and
projective techniques. We also conducted personal interviews of people in our known circle
to understand needs of the working and non-working segment like. This gave us keyinsights
on buying pattern of non-users and the working women in known circle. We then understood
customers’ needs by asking them about their needs to use smart wearable’s, their satisfiers
and dissatisfiers being users of the product, their fears and concerns regarding security and
privacy, if they were satisfied from their current wearable device through a qualitative
exercise.
Literature Review
Motivation Theory
Motivation is the driving force within individuals that impels them to action. Motivation is the
activation or energization of goal-oriented behavior. Motivation may be intrinsic or extrinsic.
The term is generally used for humans but, theoretically, it can also be used to describe the
causes for animal behavior as well. According to various theories, motivation may be rooted
in the basic need to minimize physical pain and maximize pleasure, or it may include specific
needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it
may be attributed to less-apparent reasons such as altruism, morality, or avoiding mortality.
Model of the Motivation Process:
The motivational process is the steps that you take to get motivated. It is a process, that when
followed produces incredible results. It is amazing what you can do if you are properly
motivated, and getting properly motivated is a matter of following the motivational process.
Like any other process it takes a little work and foresight and planning on your part. However,
the return on your investment of time is significant, and it is important when needing extra
motivation that you apply the motivational process.
SATISFACTION/DISSATISFACTION
Consumer satisfaction/dissatisfaction studies will benefit from the two-factor need theories
(Maslow, 1965; Alderfer, 1969; Herzberg, 1966). Brands possess two types of attributes. The
first type of attributes (inhibitors) give rise to dissatisfaction, if their level is below a certain
threshold. A car that is insufficiently safe causes dissatisfaction, while no satisfaction is derived
from a car that is sufficiently safe. The second type of attributes (facilitators) give rise to
satisfaction, is their level is above a certain threshold. Similar to the deprivation/domination
principle, the presence of inhibitors causes dissatisfaction and (extending the above principle)
this dissatisfaction cannot be compensated for by facilitators. If no inhibitors are present, a
"zero point" has been reached. Consumer satisfaction can only be obtained through the absence
of inhibitors and the presence of facilitators.
Cognitive motivation models fall into three broad categories: equity, need
achievement and expectancy-value models. The commonality of the models is that the units of
framework are of cognitive, subjective nature, and that they include hypothetical constructs as
perceived equity, need achievement, expectation, and values.
Equity
The concept of equity may be explicitly stated as the even exchange of values such that what
is received is presumed to be equal to what is given (Adams, 1965). Equity operates within a
range, with a lower and upper limit. Inputs ("what is given") are defined as "what a person
perceives as his contributions to the exchange for which he expects a just return" (Walster and
Walster, 1975). Apparently, equity theory may be applied to social relations such as
management-worker and seller-buyer. Further, the concept of power seems to be related to
perceived and subjective equity.
Need Achievement
The concept of need achievement (McClelland, 1961) is basically another variation of the
expectancy-value approach. Need achievement resembles Maslow's (1970) self-actualization
motive in a number of ways. The main difference, however, is that it includes the probability
of attaining a goal and a probability of failure. The need achievement model (Table 1) attributes
the strength of motivation to the cognitive expectation that the action will result in the
consequence. Stated somewhat differently, the tendency to engage in an activity is determined
by the desired goal of the action.
Expectancy-Value Models
The basis for expectancy models has been made by Tolman (1932) and Lewin
(1938). Expectancy theory states that the desire or motive to engage in a certain behavior is a
composite of the expected outcome of that behavior and the value or evaluation of that
behavior.
INDUSTRY ANALYSIS
The term wearable computing implies that the device operates in a hands-free fashion and the
user can readily put it on and take it off. This precludes implanted objects that are permanently
affixed to the users. Moreover, we include only those devices that are designed to be worn and
used on the body and exclude those that can be used when removed from the body.
"Computing" means that it is capable of digitally processing data. Essentially, it must have
logic onboard to gather and process information. Finally, to be considered a wearable
computing device, it must wirelessly connect to a network, either directly (via cellular or WiFi)
or through a smart compute device (such as a PC, tablet, or smartphone via Bluetooth) to
transfer data. Wearable smart devices are technological products that possess sensors or
computing chips and let users wear, attach on his/her body or clothes.
Classification of wearable smart devices
Wearable devices can be divided into the following categories based on their appearances:
• Healthcare & fitness trackers
• Wearable cameras
• Smart glasses
• Smart watches
• Others (include: smart rings, smart helmet, smart headgear,etc.)
Healthcare & fitness
There are different kinds of wearable devices existing on the market currently such as fitness
trackers, wristbands and smartwatches which have special functions for health tracking. These
gadgets can measure our heartbeat, energy consumed, steps taken and distance travelled or
more especially some of them can be used for medical treatment. Wearable technologies come
and open a new way in collecting, analyzing data in large-scale. Results measured not only can
be checked by the end customers after work-out or shared worldwide as motivation (Nike+ for
application) but also can be analyzed by doctors, experts and involved in earlier diagnosis and
treatment, research and development in the future.
Wearable cameras
The most important differences that make wearable cameras being more special than cameras
existing on the markets are mobility and flexibility. These elements create more interesting
ways for consumers to use the device to interact with the world. First-person videos are made
and shared more frequently on the Internet. These can be undeniable proves for this new
technology.
There are two types of wearable camera existing on market at the moment: the first ones are
small cameras which can easily be attached on the users’ bodies or clothes or can be worn on
ears and the second type are bigger cameras which need sticker mounts to fix them on helmets.
Smart glasses
Nowadays, glasses are no longer being used only for eye diseases or luxury fashion accessories
but also can be turned into smart devices which can provide information, notifications,
entertainment and a special point of view such as virtual reality space in three-dimension (3D)
mode. Smart glasses on the market can be arranged into two types: with and without smart
phones. In other words, dependent smart glasses (Samsung VR Gear) need to cooperate with
smart phones to create virtual reality images or videos. Users must use smart phones to play
images or videos, then use smart glasses to look at them to see virtual things. In the opposite
site, some other smart glasses, such as Oculus Rift, will have to connect wired to source devices
(PCs or X- Box) to receive images then transfer and display on screens of the glasses.
Smart Watches
A smart watch is a wristwatch enhanced with functionality of a personal digital assistant device
and can be programmed to execute more tasks than only telling time, i.e. it can be defined by
three characteristics:
1. Worn on the wrist
2. Able to indicate time
3. Able to wirelessly connect to the Internet”
Even though the smart watch can be connected directly to the Internet via integrated mobile
phone technology, so called “standalone” smart watches, the most common way for
connectivity is via Bluetooth to a smartphone. This means smart watches are more or less
dependent on being synchronised to a smartphone, and a large part of their functionality is
based on this connection to the smartphone. These smart watches, connected to smartphones,
are called “companion” smart watches.
The concept of smart watches, or at least to strap a computer onto your body, is not as new as
it may seem. Already during the middle of the 20th century there were plenty of examples of
wearable technology in science fiction movies. The first digital watches were released in the
1970s when Pulsar invented and introduced the calculator watch. The trend of digital watches
continued during the 1990s and companies kept producing watches containing many different
technology functions. Examples are the IBM/Citizen WatchPad and the Fossil wrist PDA.
However, around that time the popularity started to diminish, due to expensive and technology
that was not powerful enough.
It was not until 2012 that the consumer demand for gadgets, such as smart watches, was clearly
declared again. Pebble Technology raised more than 10 million dollars with their extremely
successful crowdfunding campaign, and they exposed both the need and want for a smart watch
on the market. Samsung, Motorola and Sony soon followed in Pebble’s direction and at the
2014 Consumer Electronics Show in Las Vegas, the wrist revolution was declared. Apple and
Google launched the smart watch variants. Today primarily Apple Watch and Android based
smart watches are popular platforms.
Others
Besides top well-known products in wearable technology industry named above, there are other
smart wearable devices existing on the market: smart rings, smart headphones, smart headgears
and some products which have the ability to treat or diagnose diseases, etc. These devices take
a tiny piece in the market share cake but still provide significant achievements.
Wearables Market Today
Wearables have yet to penetrate the mass consumer market. At the moment, fitness trackers —
such as Fitbit or Xiaomi's Mi Band — are the primary drivers behind adoption. This is due in
part to the commoditization of personal health. Advances in technology and widespread
ownership of smartphones have given users greater ability to collect their own health data.
Rapidly growing demand in emerging markets like China and India, spurred by increasing
smartphone penetration, is quickly closing the gap. These two countries will begin to account
for a greater share of total wearable shipments. Greater adoption of wearables could help pave
the way for adoption of smartwatches in emerging markets, as consumers look for better
functionality than can be offered by less expensive fitness and health trackers.
World Wide market share for Wearable devices
According to IDC report following companies have the top market share with FitBit leading
the pack. The worldwide wearables market saw a quick and sudden slowdown toward the end
of 2016. According to IDC, the market is preparing for a return to growth. Smartwatches with
cellular connectivity, hybrid watches disguising wearable technology underneath, smart
earwear and smart clothing, and more meaningful health and fitness insights all sowed their
seeds in 2016, and in 2017 we should also see them bear fruit. This will help shore up the base
of wearable device users and entice those who have been considering, but have not yet
purchased, a wearable device.
Worldwide Wearable Shipment by Vendor, 2015 and 2016
2015 2016
Shipment (M) Share (%) Shipment (M) Share (%)
2015–2016
Growth (%)
Fitbit 21.3 26.0 22.3 21.8 4.7
Xiaomi 12.0 14.7 15.7 15.3 30.8
Apple 11.6 14.2 10.7 10.4 -7.8
Garmin 5.8 7.1 6.1 6.0 5.2
Samsung 3.2 3.9 4.4 4.3 37.5
Other 28.0 34.2 43.2 42.2 54.3
Total 81.9 100.0 102.4 100.0 25.0
Growth Accelerators
• Vendor participation. The wearables market clearly benefits from the participation of
more vendors, which leads to greater reach and increased competition. Ultimately, this
leads to a growing market year over year.
• Device selection. Building upon the driver stated in the previous bullet, greater device
selection allows for choice, different experiences, and a wide range of price point. This
leads to greater adoption and, ultimately, a growing market year over year.
• Uncovering new insights about the user. Clearly, the device by itself is not enough.
Having information revealed to the user is the greater benefit that drives usage and
attracts newcomers.
• Convenience. This is especially true of smartwatches that bring notifications in from
the smartphone. Users can view and respond to messages faster and sooner on a
smartwatch instead of a smartphone.
• A growing application ecosystem. The value of a smart wearable increases with the
number of applications a user owns on a smartwatch, keeping the experience sticky and
utility high. This drives adoption and raises overall volumes.
Growth Inhibitors
• Unclear value proposition. Perhaps the greatest inhibitor to the wearables market is that
in the minds of potential users, the value proposition behind them remains unclear.
What do I need this for? Why do I need this when I already have a smartphone? For
fitness trackers, the value proposition is a bit clear: to help owners lead healthier and
fitter lives. For smartphones, the
• value proposition is less clear. To stay connected? To get notifications? To entertain?
This is perhaps why fitness trackers remained a popular option compared with
smartwatches in 2016.
• Price. Wearables represent another expense for users and compete for share of wallet
against other IT-related purchases: smartphones, tablets, PCs, applications, and so
forth. Although prices have come down for some wearables (fitness trackers), they have
not come down for all wearables (e.g., smartwatches). We expect prices to decrease
over time, but not sharply enough in the near term to spark faster growth.
• Vendor exodus. The exit of vendors, both large and small, have a negative impact on
the overall wearables market. While this allows less competition from those companies
already active in the market, it takes away selection and pricing alternatives from
customers.
Current research
Technological developments are continuing to impact and change the daily lives of people
around the world at an ever growing pace, with recent technological advances such as
electronic chips, GPS, Wi-Fi systems, the internet, sensors, and nanotechnologies in particular
reshaping our world in a hitherto unseen way. One of the products most noticeably influenced
by these technological advances are wearable technologies. The combination of internet
services with wearable articles – in other words, granting such items the ability to connect to
the internet – have given wearable technologies a whole new level of importance. Wearable
technologies have been used for quite some time in the healthcare sector, which continues to
be the area where they are the most widely used. With the recent development of hardware and
devices designed specifically to be portable, wearable technologies have started to become
widespread not only in the area of healthcare, but also in other areas of everyday social life,
which has contributed significantly to their growing popularity.
One of the most comprehensive definitions of wearable technology is “an application enabled
computing device which accepts and processes inputs.” Such devices are generally fashion
accessories usually worn or attached to the body. The device can either work independently or
be tethered to a smartphone, allowing some kind of meaningful interaction with the user. The
wearable product can be worn on the body (like a smart patch) or around the body (like a
wristwatch or a headband), or installed within the body (like an identification sensor embedded
under the skin, or a sensor attached to the heart to monitor cardiac aberrations)”.
Since the wearable consumer electronics are yet at an introductory stage, attitudes towards
wearable consumer electronics and motivation to purchase can be studied instead, rather than
looking at actual consumer behavior. Perceived value, which is an important and strategic
concept not only for marketers but also for consumers refers to the consumer’s overall
assessment of the utility of a product based on perceptions of what is given and received. It is
considered as one of the key determinants of attitude and purchase intention. In general,
perceived value consists of four dimensions which are monetary value, social value, emotional
value and functional value. Emotional value refers to the benefits associated with the emotions
triggered by a certain product, while social value refers to the benefit associated with the
product’s ability to enhance social identity. Monetary/financial value, on the other hand, refers
to the perceived benefit associated with short- and long-term decrease in costs/expenses
enabled by the product. Finally, functional value refers to the benefit associated with the
perceived quality and expected performance of a product. Functional value is the benefit
associated with the functions, uses and physical performance of a product. The existence of
this value depends on whether the customers purchasing a product (or service) can actually
obtain the physical and/or psychological benefit they expected from it.
New wearables in market
Consumers are adopting wearables at a fast pace, with improving health as their primary
motiva- tor for buying devices, according to the 2016 PwC Consumer Intelligence Series that
focuses on wearables. The study, which surveyed 1,000 consumers in March 2016, found that
health organizations, including doctors, hospitals and health insurance companies, are the most
trusted when referring wearables to their customers. This provides a big opportunity for
healthcare organizations to partner with technology companies to make unique connections
with consumers. The wearable technology market grew 29% in 2016, with 101.9 million units
sold, according to the International Data Corporation(IDC) Worldwide QuarterlyWear-
able Device Tracker. The organiza- tion projects that the wearable market will reach more than
213 billion units sold by 2020. The most popular units continue to be wristbands and watch-
like devices, though clothing and eyewear are gaining traction.
“Watches and bands are and always will be popular, but the market will clearly benefit from
the emergence of additional form factors, like clothing and eyewear, that will deliver new
capabilities and experiences,” says Jitesh Ubra- ni, senior research analyst for IDC Mobile
Device Trackers. “Eyewear has a clear focus on the enterprise as it stands to complement or
re- place existing computing devices, particularly for workers in the field or on the factory
floor. Mean-
LIVE by EarlySense
This remote monitoring device monitors sleep and vital statistics for bedridden patients. The
piezoelectric sensor disk plugs into an outlet and slides under a patient’s
mattress. Real time patient vitals can be monitored by caregivers and
clinicians through a mobile application. The device,
previously only available in hospitals, was made available to
consumers in January 2017. The device is 92.5%
accurate when detecting sleep patterns, heart rate,
breathing, movement, and other potential stressors,
according to clinical studies. A monthly subscription is
required to monitor the device.
Ava
The Ava bracelet is an FDA-approved medical device that monitors a woman’s fertility and
menstrual cycle.
The device contains sensors that collect up to 3 million data points that
correlate with the rise of reproductive hormones. These parameters
include resting pulse rate, skin temperature, sleep, perfusion,
bioimpedance, breathing and sleep. The combination of the data points
can predict 5.3 fertility dates within a woman’s cycle with 89%
accuracy, according to clinical studies. Users only wear the device at night,
and the data syncs with a mobile application. Ava’s creators hope that the device will take the
place of ovulation strips and BBT thermometers that women cur- rently use to track ovulation.
Rapael Smart Glove
The Rapael Smart Glove has an exoskeletal design that helps stroke
patients and others with neurological and musculoskeletal injuries regain
mobility in their hands. Using a Blue- tooth sensor, the glove measures
the patient’s motion through a 30-minute exercise, and creates an
exercise schedule based on the patient’s needs. The glove includes game
software, allowing patients to simulate playing ping pong, chopping
food and catching a baseball.
A version of the smart glove has been avail- able in hospitals since 2014,
but a new home edition is available for patients who need help with
mobility. The glove is available to patients to rent for $99 and is
reimbursable through many health plans.
Rapael Smart Board
This device helps patients improve shoulder and elbow
mobility. Using game-based technology, the device creates
exercises based on a patient’s ability and performance.
It includes a board with a hand grip, and allows patients to
increase conditional exploration, point-to-point reaching, and
shape drawing
through exercise. The real-time assessment of patient data includes range, speed, smoothness
and harmony of motion.
K’Track Glucose
Painless and accu- rate glucose monitoring is the goal of many health technology companies.
The watch-like K’Track Glucose monitor aims to be the solution for people with type 1 and
type 2 diabetes by using technology that uses micro needles to collect and analyze
fluid right below the skin surface. The needles are less than 0.5 mm.
The micro needles are a part of a replaceable cartridge that lasts 30
days, but can take unlimited readings in the time period. Users
push a button on the device to check their glucose levels, and it
takes a minute for results to display on the face of the device. All
results over time are synced to a mobile app.
Fever Scout
The Fever Scout is a flexible patch that can track a user’s temperature over time and share it
with clinicians or caregivers. The remote monitoring device can be placed near the user’s
armpit, and smartphone alerts can let caregivers know if there’s a fever
or spike in temperature. The continuous temperature
monitoring device can be used for babies and young
children, post-operative patients, cancer patients, and
seniors. Fever Scout syncs with a smartphone app when
it’s within 25 feet to 30 feet of the phone. With a signal
amplifier, the device can monitor a user’s temperature up
to 130 feet away.
Vivobarefoot smart shoes
Billed as a fitness shoe with a built-in computer, the Vivobarefoot will track vital signs of
runners with hopes to reduce injury in the future. The shoe monitors real time speed, pace,
cadence, foot landing, time on the ground, impact, asymmetry and toe engagement. The shoe’s
creators hope to use this data for business and academic purposes to make
running and walking more safe and efficient. The shoe is being created
through a partnership with Sensoria, a fitness garment company, and
Vivobareboot, a running shoe company. Two removable cores embedded in a thin 5 mm
outsole connect to four pressure points in the foot. An accompanying mobile app houses all the
data tracked during a run.
Conclusion
Attractiveness is the key to driving demand
One of the things that really jump out of this report is that style is becoming more and more
important in the wearable technology market. It’s no longer enough to focus purely on creating
functional apps for functional devices. Analysts, manufacturers and journalists are all agreed
that the next generation of wearable technology needs to put more emphasis on being
aesthetically pleasing, visually appealing increasing hedonism.
There are lots of ways that businesses in the wearable technology sector could help to boost
the desirability of their products. For example, they could actively target celebrity
endorsements and brand partnerships. However, in the fast-moving worlds of technology and
fashion, they need to make sure that they keep abreast of the latest developments in both
industries to avoid the risk of launching concepts that are already out of date. And to free up
time to focus on creating really visually arresting apps, they should look for cross-platform
synergies at every opportunity.
Security
There can be no doubt that the privacy issues around wearable technology are real and must be
acknowledged by the wearable technology industry Legal counselors have been frequently
voicing their worries about the potential legitimate ramifications of our turn towards
technology-driven lifestyles The overall population reflects these states of mind to some
degree. Generally 50% of customers feel security fills in as an obstruction to the selection of
wearable innovation, and threat to their own privacy. Interestingly, however, the research also
appears to suggest that people who own one or more devices overwhelmingly believe the
technology has enhanced their lives.
As a matter of fact, these findings demonstrate that organizations in the wearable innovation
space must do all that they can to teach imminent clients. Companies must reach out to
everyone from politicians and industry groups to journalists and consumers. Additionally,
managers that are thinking about presenting wearable innovation at work would be very much
encouraged to maximize their chances of securing buy-in. And lastly, it’s crucial for companies
in this field to be transparent about what data is being collected and how it will be used.
Wearable technology means different things to different businesses
Some sectors obviously have greater potential than others though. Top of the pile are the EMC
[entertainment, media and communications] industries, followed closely by health, retail and
technology. We’ve found that the general public is relatively comfortable with the idea of
doctors using wearable technology to record medical examinations, but there’s much greater
concern surrounding the prospect of teachers or builders bringing wearable technology into
their lives.
The time has come for smart watches
Wearable technology is an incredibly diverse category covering a range of products such as
smart glasses, smart watches, fitness trackers, smart clothing, smart wristbands, smart jewelry,
smart shoes, gadget gloves and virtual reality headsets. Some may always have limited
adoption rates but others are showing all the signs of breaking into the mainstream in 2017.
For some time now, fitness trackers have surged ahead in the popularity stakes and there’s
plenty of research confirming that by far the most people own one of these. Times are changing,
however, and from late 2016 onwards we’ve suddenly started to see more consumers reporting
that they want a smart watch than anything else.
Limitless potential
In truth, wearable technology can transform our lives in so many ways from influencing our
psychology to helping us do everyday tasks more efficiently, yet we’ve barely scratched the
surface. Many people still don’t know enough about wearable technology or fully understand
the issues around it. Customer education is the prime factor for success.
References
1 Motivation, cognition, learning—basic factors in consumer behaviour, James a.
Bayton, Journal of Marketing
2 Motivation-need theories and consumer behaviour, K. Fred vari Raaij, Kassaye
Kandwossen, Advances in consumer research
3 The Wrist-Worn Revolution Fails to Materialize, eMarketer report
4 https://intelligence.businessinsider.com/the-wearable-computing-market-report-
growth-trends-consumer-attitudes-and-why-smartwatches-will-dominate-2014-10
5 THE SMARTWATCH REPORT: Forecasts, adoption trends, and why the market isn't
living up to the hype (https://intelligence.businessinsider.com/the-wearable-
computing-market-report-growth-trends-consumer-attitudes-and-why-smartwatches-
will-dominate-2014-10)
6 The Wearable Future, (http://www.pwc.com/us/en/technology/publications/wearable-
technology.html)
7 Worldwide Wearables Market Shares, 2016: Fitbit Retains Leadership
(https://www.idc.com/getdoc.jsp?containerId=IDC_P29207)
8 MARBURY D. New wearables to watch. Managed Healthcare Executive [serial
online]. March 2017;27(3):22-24. Available from: Business Source Corporate,
Ipswich, MA. Accessed May 5, 2017
Smart Wearable Survey
1 What is your gender?
Male Female
2 Whatis youragegroup?
17 or younger 18-24 25-34
35-44 44-55 55+
3 What is your maritalstatus?
Single Married
4 What is thehighestlevelofeducationyouhavecompleted?
Bachelor's Degree
High School or Equivalent
Master Degree
Doctorate Degree
5 Which smartphone brand youuse?
Apple Samsung Moto
OnePlus
Other (Please Specify)
6 Do you own any smart wearable like Apple Watch, Samsung VR headset, Fitbit etc?
Yes No
7 If yes which smart wearableyouown?
Apple Watch Android Watch Samsung VR Headset
FitBit MiBand
Other (Please Specify)
8 If yes what motivated you to buy this product?*
Features Compatibility with phone Health/Fitness tracking
Receivephonecalls/messages Control music onphone Price/good deal
Monitor Sleep quality
Other (Please Specify)
9 Wheredoyou use the technology/ smart wearabledevice more?
Personal Life Professional Life Both
10 Do youshareyourhealthactivities trackedonSocialmedia(likesharingyourjoggingtrack onFacebook)?
Yes No
11 If you have a chance to take part in a test for real experience about wearable technologies in 1 week for free, would you
willing to get involved in?
Yes No
12 If yes, which wearable device(s) do you want to have?
VR Headset Fitness Band Smart Watch
Smart Ring
Other (Please Specify)
13 What is ideal price for a wearable device?
Less than 10k 10-15k 15-20k
20-30k
14 Reasons that you want to buy wearable device(s) are:
Experience new technology Fitness tracking Gift it to my family/friends
Fear of missing out on new technology Value for money product I don't have a reason but still I want to own
one
Other (Please Specify)
15 Do you see any privacy concerns usingthe smart wearables?
16 Do you see any difference in how, when and where consumers will use smart watches in 5 years, compared to today?
ReportAbuse
Quick Report
What is your gender?
Male Female Standard Deviation Responses
All Data
13
(62%)
8
(38%)
2.5 21
Male Female
What is your age group?
17 or younger 18-24 25-34 35-44 44-55 55+ Standard Deviation Responses
All Data
0
(0%)
1
(5%)
13
(62%)
7
(33%)
0
(0%)
0
(0%)
4.92 21
17 or younger 18-24 25-34 35-44 44-55 55+
What is your marital status?
Single Married Standard Deviation Responses
All Data
6
(29%)
15
(71%)
4.5 21
Single Married
What is the highest level of education you have completed?
Bachelor's Degree High School orEquivalent Master Degree Doctorate Degree Standard Deviation Responses
All Data
9
(43%)
0
(0%)
12
(57%)
0
(0%)
5.36 21
Bachelor'sDegree HighSchoolorEquivalent Master Degree DoctorateDegree
Which smartphone brand you use?
Apple Samsung Moto One Plus Other (Please Specify) Responses
All Data
6
(30%)
5
(25%)
0
(0%)
3
(15%)
7
(35%)
20
Text Responses
Lava
Mi
None
Xiaomi
LG Nexus 5
Xiaomi
Nexus
Do you own any smart wearable like Apple Watch, Samsung VR headset,Fitbit etc?
Yes No Standard Deviation Responses
All Data
7
(35%)
13
(65%)
3 20
Yes No
If yes which smart wearable you own?
Apple Watch Android Watch Samsung VR Headset FitBit MiBand Other (Please Specify) Responses
All Data
2
(15%)
1
(8%)
0
(0%)
4
(31%)
4
(31%)
2
(15%)
13
Text Responses
Na
None
If yes what motivated you to buy this product?*
Features
Compatibility
with phone
Health/Fitness
tracking
Receive phone
calls/messages
Control music
on phone
Price/good
deal
Monitor
Sleep
quality
Other
(Please
Specify)
Responses
All Data
4
(27%)
2
(13%)
7
(47%)
2
(13%)
1
(7%)
5
(33%)
2
(13%)
5
(33%)
15
Text Responses
Heart rate and bp
Na
i don't have
Got it as a gift
Don't have it. U don't have NA option. Also the below questions should be disabled. M forced to answer them. Grrr..
Where do you use the technology/ smart wearable device more?
Personal Life Professional Life Both Standard Deviation Responses
All Data
8
(44%)
1
(6%)
9
(50%)
3.56 18
Personal Life Professional Life Both
Do you share your health activities tracked on Social media (like sharing your jogging track on
Facebook)?
Yes No Standard Deviation Responses
All Data
2
(11%)
16
(89%)
7 18
Yes No
Ifyouhaveachancetotakepartinatestforrealexperienceaboutwearabletechnologiesin1
week for free,would you willing to get involved in?
Yes No Standard Deviation Responses
All Data
15
(71%)
6
(29%)
4.5 21
Yes No
If yes, which wearable device(s) do you wantto have?
VR Headset Fitness Band Smart Watch Smart Ring Other (Please Specify) Responses
All Data
7
(44%)
5
(31%)
10
(63%)
2
(13%)
0
(0%)
16
Text Responses
What is ideal price for a wearable device?
Less than 10k 10-15k 15-20k 20-30k Standard Deviation Responses
All Data
12
(57%)
3
(14%)
4
(19%)
2
(10%)
3.96 21
Less than 10k 10-15k 15-20k 20-30k
Reasons that you want to buy wearable device(s) are:
Experience
new
technology
Fitness
tracking
Gift it to my
family/friends
Fear of missing out
on new technology
Value for
money
product
I don't have a reason but
still I want to own one
Other
(Please
Specify)
Responses
All Data
15
(71%)
10
(48%)
2
(10%)
2
(10%)
3
(14%)
0
(0%)
1
(5%)
21
Text Responses
Do not want one
Do you see any privacy concerns using the smart wearables?
Text Responses
No
no
No
yes Serious issues
No
No
No
no
No
No
No
No
Yes. Companiescanchargemoremoneytomeonthebasisof my data. Theycanemotionallyblackmailme. I willshoot themintheheadthen.
Personal data should not be shared.
No
Doyouseeanydifferenceinhow,whenandwhereconsumerswillusesmartwatchesin5
years, compared totoday?
Text Responses
No
yes, deviceswillbemoreconnectedtohome,carandwork
Yes
No
Can't say
no
Yes, Thesedevicesgetmoreinvolvedindaytodayactivitiesofthepeopleincomingyears.
Yes
Yes
Yes. We willbeslaveto these smart devices. Our brainwillbelikedeadwood. Useless as it willbeonlyusedto see, hearandtaste. We willexpect onlydatato answerourqueries. m/
watchmayberedundantandmoreinteractiveformofdevicemaycomeup
in manufacturing, architechtural firms
We conducted qualitative research to uncover consumer’s subconscious or hidden motivations.
Based on the premise the consumers are not always aware of the reasons for their actions,
motivational research attempted to discover underlying feelings, attitudes, and emotions
concerning product, service, or brand use.
We used Direct (Non- disguised) qualitative procedure using focus groups and depth
interviews and Indirect (disguised) qualitative procedures using projective techniques to
measure motives to buy smart wearable:
1. Association techniques via Word Association
2. Completing techniques
3. Construction techniques via Drawing pictures
4. Expressive techniques via Story telling
Direct qualitative procedure questionnaire:
1. The Consumer: Getting to know the consumer and the brand/brand
values that matter to him/her-
1. What is your gender?
2. What is your age?
3. Which smartphone brand you use?
4. What is your marital status?
5. What is the highest level of education you have completed?
6. In your free time what kinds of things do you like to do?
7. How do you see yourself in 5/10 years from now?
8. Do you own any smart wearable like Apple Watch, Samsung VR headset,Fitbit
etc?
9. Which smart wearable you own?
10. If yes what motivated you to buy this product?*
11. Do you share your health activities tracked on Social media (like sharing your
jogging track on Facebook)?
12. If you have a chance to take part in a test for real experience about wearable
technologies in 1 week for free, would you willing to get involved in?
13. If yes, which wearable device(s) do you want to have?
14. What is ideal price for a wearable device?
15. Reasons that you want to buy wearable device(s) are:
16. What does Apple stand for ?
17. How do you like products of Samsung, Google?
In- Direct qualitative procedure questionnaire
2. The Emotion: Pulsing the Emotion and discovering the various layers of
the emotion
2.a. Appeal for the proposition ofSMART
2.a.1. Association and appeal for the emotion/idea of “Smart”:
As you know there can be so many thoughts that come to mind when we think of a single
word.. so tell me all the words/phrases/associations that come to mind when you hear the word
“mother”
Similarly, I would like you to share your first thoughts, words, and feelings on hearing the
word “ SMART”. Tell me whatever comes to your mind to describe this emotion.
What do you feel about having a smart watch? Is it something of interest to you? If yes ,in what
way ? If not what is in it that doesn’t connect with you?
2.a.2. Synergy of Emotion and Consumer’s life
What aspects of your life do you think go well with the idea of having a smart watch/ wearable?
What makes these aspects link themselves with this idea?
Are there any aspects of your life that just don’t go with idea?
2.b. VISUALIZATION OF THE PROPOSITION “SMART”
Image association
What word comes to your mind when you think about this “SMART”?
What colors do you see? What is the link of these colors with the idea of SMART?
Measuring Consumer’s feeling and emotions about smart wearable’s (specially smart
watches)
Since you are a smart watch user, we would appreciate it if you would identify how your life
was impacted after using the product? For each of the words below mark an “X” in the box
corresponding to how your life’s impacted by use of smart watch/wearable.
Very/Not at all Relaxed
Multi tasking
Health conscious
Younger
Paying attention to detail
Ease of clicking pictures
Talking while driving
Continuous access to gps
Semantic differential scales measuring consumer’s attitudes towards Smart wearables
Compared to traditional watches, your self-owned watch is:
Vogue
Appealing to others
Must have device
Pleasant
Health centric
Consumer Reality and Idea/Proposition
Situations/Memories
I would like each of you to share/describe a situation in your lives which depicts Being SMART
Where was this?
When did this happen?
Who were with you?
What were you eating/drinking?
What was the experience like?
People and Proposition
What kind of people would love this? Who would want to be a part of this idea of “Being
SMART”?
What are they thinking about?
What qualities attract them to this?
Do they have any concerns about being a part of this?
Describe this person to me:
Age
Gender
Nature
Personality
Hobbies
Activities involved in
Types of friends
What will they be drinking usually?
Products he/she owns?
His/her prized possessions?
Attire
Category /Product link with proposition
Tradition watch Vs Smart watch user

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Smart wearable motivation

  • 2. Table of Contents Introduction ...................................................................................................................... 4 Project Objective ............................................................................................................... 4 Qualitative Research: ........................................................................................................ 4 LiteratureReview..............................................................................................................5 Motivation Theory ............................................................................................................ 5 SATISFACTION/DISSATISFACTION...............................................................................................6 Equity..................................................................................................................................... 7 Need Achievement ................................................................................................................ 7 Expectancy-Value Models ..................................................................................................... 7 INDUSTRY ANALYSIS .......................................................................................................... 7 Classification of wearable smart devices ............................................................................... 8 Healthcare & fitness............................................................................................................... 8 Wearable cameras................................................................................................................. 9 Smart glasses ........................................................................................................................ 9 Smart Watches ...................................................................................................................... 9 Others.................................................................................................................................. 10 Wearables Market Today ......................................................................................................... 10 World Wide market share for Wearable devices ....................................................................... 11 Growth Accelerators ................................................................................................................ 13 Growth Inhibitors ..................................................................................................................... 13 Currentresearch.............................................................................................................14 New wearables in market................................................................................................ 15 LIVE by EarlySense .................................................................................................................... 16 Ava........................................................................................................................................... 16 Rapael Smart Glove .................................................................................................................. 17 Rapael Smart Board .................................................................................................................. 17 K’Track Glucose ........................................................................................................................ 17 Fever Scout .............................................................................................................................. 18 Vivobarefoot smart shoes ........................................................................................................ 18 Conclusion ....................................................................................................................... 19
  • 3. Attractiveness is the key to driving demand........................................................................ 19 Security................................................................................................................................... 19 Wearable technology means different things to different businesses............................... 19 The time has come for smart watches.................................................................................. 20 Limitless potential ................................................................................................................. 20 References .............................................................................................................. 21
  • 4. Introduction The latest innovations in hardware technology in recent years has opened doors to new immersive experiences. “SMART” is not a buzzword for phone anymore with advent of SMART Wearables – Watches, fitness bands, Glasses etc. Smart-industry is an industry focusing on researching and developing smart devices or smart technologies which have an ordinary look but possess special abilities or functions by having sensors, computer chips or ways to communicate to support users. In the next few years, smart technologies will be integral part of our lives just like SMART PHONES are these days. In our project we have focussed on wearable devices. We will begin with introducing variety in wearable devices. Next we review the current ecosystem of wearable industry. We will do a literature for some of motivation theories and apply them to understand the consumer motivations for buying wearable devices. We are planning to conduct a focus group discussion to get qualitative data. As part of this study we will be analysing secondary data and conduct a primary qualitative survey to understand customer behaviour in choosing and using wearable smart devices. Project Objective The objective of the study is: To study factors influencing purchase of a Smart wearable device The research will be carried out in two phases. The first phase consisted of a qualitative analysis. For the formulation of the research objectives, the authors relied on their own experience, and by forming a general view of what consumers expect from their smart wearable device. This, along with a literature review on the problem, helped in making appropriate research objectives. Qualitative Research: The next step in Phase 1 consisted of conducting Focused Group Discussions (FGD) among regular working men and women as well as IIM-L students. To conduct these, an FGD guide was framed in which the authors framed questions to explore in detail each research objective. The interviewees were asked questions indirectly, through personification tests, and projective techniques. We also conducted personal interviews of people in our known circle to understand needs of the working and non-working segment like. This gave us keyinsights
  • 5. on buying pattern of non-users and the working women in known circle. We then understood customers’ needs by asking them about their needs to use smart wearable’s, their satisfiers and dissatisfiers being users of the product, their fears and concerns regarding security and privacy, if they were satisfied from their current wearable device through a qualitative exercise. Literature Review Motivation Theory Motivation is the driving force within individuals that impels them to action. Motivation is the activation or energization of goal-oriented behavior. Motivation may be intrinsic or extrinsic. The term is generally used for humans but, theoretically, it can also be used to describe the causes for animal behavior as well. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, morality, or avoiding mortality. Model of the Motivation Process: The motivational process is the steps that you take to get motivated. It is a process, that when followed produces incredible results. It is amazing what you can do if you are properly motivated, and getting properly motivated is a matter of following the motivational process. Like any other process it takes a little work and foresight and planning on your part. However, the return on your investment of time is significant, and it is important when needing extra motivation that you apply the motivational process.
  • 6. SATISFACTION/DISSATISFACTION Consumer satisfaction/dissatisfaction studies will benefit from the two-factor need theories (Maslow, 1965; Alderfer, 1969; Herzberg, 1966). Brands possess two types of attributes. The first type of attributes (inhibitors) give rise to dissatisfaction, if their level is below a certain threshold. A car that is insufficiently safe causes dissatisfaction, while no satisfaction is derived from a car that is sufficiently safe. The second type of attributes (facilitators) give rise to satisfaction, is their level is above a certain threshold. Similar to the deprivation/domination principle, the presence of inhibitors causes dissatisfaction and (extending the above principle) this dissatisfaction cannot be compensated for by facilitators. If no inhibitors are present, a "zero point" has been reached. Consumer satisfaction can only be obtained through the absence of inhibitors and the presence of facilitators. Cognitive motivation models fall into three broad categories: equity, need achievement and expectancy-value models. The commonality of the models is that the units of framework are of cognitive, subjective nature, and that they include hypothetical constructs as perceived equity, need achievement, expectation, and values.
  • 7. Equity The concept of equity may be explicitly stated as the even exchange of values such that what is received is presumed to be equal to what is given (Adams, 1965). Equity operates within a range, with a lower and upper limit. Inputs ("what is given") are defined as "what a person perceives as his contributions to the exchange for which he expects a just return" (Walster and Walster, 1975). Apparently, equity theory may be applied to social relations such as management-worker and seller-buyer. Further, the concept of power seems to be related to perceived and subjective equity. Need Achievement The concept of need achievement (McClelland, 1961) is basically another variation of the expectancy-value approach. Need achievement resembles Maslow's (1970) self-actualization motive in a number of ways. The main difference, however, is that it includes the probability of attaining a goal and a probability of failure. The need achievement model (Table 1) attributes the strength of motivation to the cognitive expectation that the action will result in the consequence. Stated somewhat differently, the tendency to engage in an activity is determined by the desired goal of the action. Expectancy-Value Models The basis for expectancy models has been made by Tolman (1932) and Lewin (1938). Expectancy theory states that the desire or motive to engage in a certain behavior is a composite of the expected outcome of that behavior and the value or evaluation of that behavior. INDUSTRY ANALYSIS The term wearable computing implies that the device operates in a hands-free fashion and the user can readily put it on and take it off. This precludes implanted objects that are permanently affixed to the users. Moreover, we include only those devices that are designed to be worn and used on the body and exclude those that can be used when removed from the body. "Computing" means that it is capable of digitally processing data. Essentially, it must have logic onboard to gather and process information. Finally, to be considered a wearable computing device, it must wirelessly connect to a network, either directly (via cellular or WiFi) or through a smart compute device (such as a PC, tablet, or smartphone via Bluetooth) to
  • 8. transfer data. Wearable smart devices are technological products that possess sensors or computing chips and let users wear, attach on his/her body or clothes. Classification of wearable smart devices Wearable devices can be divided into the following categories based on their appearances: • Healthcare & fitness trackers • Wearable cameras • Smart glasses • Smart watches • Others (include: smart rings, smart helmet, smart headgear,etc.) Healthcare & fitness There are different kinds of wearable devices existing on the market currently such as fitness trackers, wristbands and smartwatches which have special functions for health tracking. These gadgets can measure our heartbeat, energy consumed, steps taken and distance travelled or more especially some of them can be used for medical treatment. Wearable technologies come and open a new way in collecting, analyzing data in large-scale. Results measured not only can be checked by the end customers after work-out or shared worldwide as motivation (Nike+ for application) but also can be analyzed by doctors, experts and involved in earlier diagnosis and treatment, research and development in the future.
  • 9. Wearable cameras The most important differences that make wearable cameras being more special than cameras existing on the markets are mobility and flexibility. These elements create more interesting ways for consumers to use the device to interact with the world. First-person videos are made and shared more frequently on the Internet. These can be undeniable proves for this new technology. There are two types of wearable camera existing on market at the moment: the first ones are small cameras which can easily be attached on the users’ bodies or clothes or can be worn on ears and the second type are bigger cameras which need sticker mounts to fix them on helmets. Smart glasses Nowadays, glasses are no longer being used only for eye diseases or luxury fashion accessories but also can be turned into smart devices which can provide information, notifications, entertainment and a special point of view such as virtual reality space in three-dimension (3D) mode. Smart glasses on the market can be arranged into two types: with and without smart phones. In other words, dependent smart glasses (Samsung VR Gear) need to cooperate with smart phones to create virtual reality images or videos. Users must use smart phones to play images or videos, then use smart glasses to look at them to see virtual things. In the opposite site, some other smart glasses, such as Oculus Rift, will have to connect wired to source devices (PCs or X- Box) to receive images then transfer and display on screens of the glasses. Smart Watches A smart watch is a wristwatch enhanced with functionality of a personal digital assistant device and can be programmed to execute more tasks than only telling time, i.e. it can be defined by three characteristics: 1. Worn on the wrist 2. Able to indicate time 3. Able to wirelessly connect to the Internet” Even though the smart watch can be connected directly to the Internet via integrated mobile phone technology, so called “standalone” smart watches, the most common way for connectivity is via Bluetooth to a smartphone. This means smart watches are more or less dependent on being synchronised to a smartphone, and a large part of their functionality is based on this connection to the smartphone. These smart watches, connected to smartphones, are called “companion” smart watches.
  • 10. The concept of smart watches, or at least to strap a computer onto your body, is not as new as it may seem. Already during the middle of the 20th century there were plenty of examples of wearable technology in science fiction movies. The first digital watches were released in the 1970s when Pulsar invented and introduced the calculator watch. The trend of digital watches continued during the 1990s and companies kept producing watches containing many different technology functions. Examples are the IBM/Citizen WatchPad and the Fossil wrist PDA. However, around that time the popularity started to diminish, due to expensive and technology that was not powerful enough. It was not until 2012 that the consumer demand for gadgets, such as smart watches, was clearly declared again. Pebble Technology raised more than 10 million dollars with their extremely successful crowdfunding campaign, and they exposed both the need and want for a smart watch on the market. Samsung, Motorola and Sony soon followed in Pebble’s direction and at the 2014 Consumer Electronics Show in Las Vegas, the wrist revolution was declared. Apple and Google launched the smart watch variants. Today primarily Apple Watch and Android based smart watches are popular platforms. Others Besides top well-known products in wearable technology industry named above, there are other smart wearable devices existing on the market: smart rings, smart headphones, smart headgears and some products which have the ability to treat or diagnose diseases, etc. These devices take a tiny piece in the market share cake but still provide significant achievements. Wearables Market Today Wearables have yet to penetrate the mass consumer market. At the moment, fitness trackers — such as Fitbit or Xiaomi's Mi Band — are the primary drivers behind adoption. This is due in part to the commoditization of personal health. Advances in technology and widespread ownership of smartphones have given users greater ability to collect their own health data. Rapidly growing demand in emerging markets like China and India, spurred by increasing
  • 11. smartphone penetration, is quickly closing the gap. These two countries will begin to account for a greater share of total wearable shipments. Greater adoption of wearables could help pave the way for adoption of smartwatches in emerging markets, as consumers look for better functionality than can be offered by less expensive fitness and health trackers. World Wide market share for Wearable devices According to IDC report following companies have the top market share with FitBit leading the pack. The worldwide wearables market saw a quick and sudden slowdown toward the end of 2016. According to IDC, the market is preparing for a return to growth. Smartwatches with cellular connectivity, hybrid watches disguising wearable technology underneath, smart earwear and smart clothing, and more meaningful health and fitness insights all sowed their seeds in 2016, and in 2017 we should also see them bear fruit. This will help shore up the base of wearable device users and entice those who have been considering, but have not yet purchased, a wearable device. Worldwide Wearable Shipment by Vendor, 2015 and 2016
  • 12. 2015 2016 Shipment (M) Share (%) Shipment (M) Share (%) 2015–2016 Growth (%) Fitbit 21.3 26.0 22.3 21.8 4.7 Xiaomi 12.0 14.7 15.7 15.3 30.8 Apple 11.6 14.2 10.7 10.4 -7.8 Garmin 5.8 7.1 6.1 6.0 5.2 Samsung 3.2 3.9 4.4 4.3 37.5 Other 28.0 34.2 43.2 42.2 54.3 Total 81.9 100.0 102.4 100.0 25.0
  • 13. Growth Accelerators • Vendor participation. The wearables market clearly benefits from the participation of more vendors, which leads to greater reach and increased competition. Ultimately, this leads to a growing market year over year. • Device selection. Building upon the driver stated in the previous bullet, greater device selection allows for choice, different experiences, and a wide range of price point. This leads to greater adoption and, ultimately, a growing market year over year. • Uncovering new insights about the user. Clearly, the device by itself is not enough. Having information revealed to the user is the greater benefit that drives usage and attracts newcomers. • Convenience. This is especially true of smartwatches that bring notifications in from the smartphone. Users can view and respond to messages faster and sooner on a smartwatch instead of a smartphone. • A growing application ecosystem. The value of a smart wearable increases with the number of applications a user owns on a smartwatch, keeping the experience sticky and utility high. This drives adoption and raises overall volumes. Growth Inhibitors • Unclear value proposition. Perhaps the greatest inhibitor to the wearables market is that in the minds of potential users, the value proposition behind them remains unclear. What do I need this for? Why do I need this when I already have a smartphone? For fitness trackers, the value proposition is a bit clear: to help owners lead healthier and fitter lives. For smartphones, the • value proposition is less clear. To stay connected? To get notifications? To entertain? This is perhaps why fitness trackers remained a popular option compared with smartwatches in 2016. • Price. Wearables represent another expense for users and compete for share of wallet against other IT-related purchases: smartphones, tablets, PCs, applications, and so forth. Although prices have come down for some wearables (fitness trackers), they have not come down for all wearables (e.g., smartwatches). We expect prices to decrease over time, but not sharply enough in the near term to spark faster growth. • Vendor exodus. The exit of vendors, both large and small, have a negative impact on the overall wearables market. While this allows less competition from those companies
  • 14. already active in the market, it takes away selection and pricing alternatives from customers. Current research Technological developments are continuing to impact and change the daily lives of people around the world at an ever growing pace, with recent technological advances such as electronic chips, GPS, Wi-Fi systems, the internet, sensors, and nanotechnologies in particular reshaping our world in a hitherto unseen way. One of the products most noticeably influenced by these technological advances are wearable technologies. The combination of internet services with wearable articles – in other words, granting such items the ability to connect to the internet – have given wearable technologies a whole new level of importance. Wearable technologies have been used for quite some time in the healthcare sector, which continues to be the area where they are the most widely used. With the recent development of hardware and devices designed specifically to be portable, wearable technologies have started to become widespread not only in the area of healthcare, but also in other areas of everyday social life, which has contributed significantly to their growing popularity. One of the most comprehensive definitions of wearable technology is “an application enabled computing device which accepts and processes inputs.” Such devices are generally fashion accessories usually worn or attached to the body. The device can either work independently or be tethered to a smartphone, allowing some kind of meaningful interaction with the user. The wearable product can be worn on the body (like a smart patch) or around the body (like a wristwatch or a headband), or installed within the body (like an identification sensor embedded under the skin, or a sensor attached to the heart to monitor cardiac aberrations)”. Since the wearable consumer electronics are yet at an introductory stage, attitudes towards wearable consumer electronics and motivation to purchase can be studied instead, rather than looking at actual consumer behavior. Perceived value, which is an important and strategic concept not only for marketers but also for consumers refers to the consumer’s overall assessment of the utility of a product based on perceptions of what is given and received. It is considered as one of the key determinants of attitude and purchase intention. In general, perceived value consists of four dimensions which are monetary value, social value, emotional value and functional value. Emotional value refers to the benefits associated with the emotions triggered by a certain product, while social value refers to the benefit associated with the
  • 15. product’s ability to enhance social identity. Monetary/financial value, on the other hand, refers to the perceived benefit associated with short- and long-term decrease in costs/expenses enabled by the product. Finally, functional value refers to the benefit associated with the perceived quality and expected performance of a product. Functional value is the benefit associated with the functions, uses and physical performance of a product. The existence of this value depends on whether the customers purchasing a product (or service) can actually obtain the physical and/or psychological benefit they expected from it. New wearables in market Consumers are adopting wearables at a fast pace, with improving health as their primary motiva- tor for buying devices, according to the 2016 PwC Consumer Intelligence Series that focuses on wearables. The study, which surveyed 1,000 consumers in March 2016, found that health organizations, including doctors, hospitals and health insurance companies, are the most trusted when referring wearables to their customers. This provides a big opportunity for healthcare organizations to partner with technology companies to make unique connections with consumers. The wearable technology market grew 29% in 2016, with 101.9 million units sold, according to the International Data Corporation(IDC) Worldwide QuarterlyWear- able Device Tracker. The organiza- tion projects that the wearable market will reach more than 213 billion units sold by 2020. The most popular units continue to be wristbands and watch- like devices, though clothing and eyewear are gaining traction. “Watches and bands are and always will be popular, but the market will clearly benefit from the emergence of additional form factors, like clothing and eyewear, that will deliver new capabilities and experiences,” says Jitesh Ubra- ni, senior research analyst for IDC Mobile Device Trackers. “Eyewear has a clear focus on the enterprise as it stands to complement or re- place existing computing devices, particularly for workers in the field or on the factory floor. Mean-
  • 16. LIVE by EarlySense This remote monitoring device monitors sleep and vital statistics for bedridden patients. The piezoelectric sensor disk plugs into an outlet and slides under a patient’s mattress. Real time patient vitals can be monitored by caregivers and clinicians through a mobile application. The device, previously only available in hospitals, was made available to consumers in January 2017. The device is 92.5% accurate when detecting sleep patterns, heart rate, breathing, movement, and other potential stressors, according to clinical studies. A monthly subscription is required to monitor the device. Ava The Ava bracelet is an FDA-approved medical device that monitors a woman’s fertility and menstrual cycle. The device contains sensors that collect up to 3 million data points that correlate with the rise of reproductive hormones. These parameters include resting pulse rate, skin temperature, sleep, perfusion, bioimpedance, breathing and sleep. The combination of the data points can predict 5.3 fertility dates within a woman’s cycle with 89% accuracy, according to clinical studies. Users only wear the device at night, and the data syncs with a mobile application. Ava’s creators hope that the device will take the place of ovulation strips and BBT thermometers that women cur- rently use to track ovulation.
  • 17. Rapael Smart Glove The Rapael Smart Glove has an exoskeletal design that helps stroke patients and others with neurological and musculoskeletal injuries regain mobility in their hands. Using a Blue- tooth sensor, the glove measures the patient’s motion through a 30-minute exercise, and creates an exercise schedule based on the patient’s needs. The glove includes game software, allowing patients to simulate playing ping pong, chopping food and catching a baseball. A version of the smart glove has been avail- able in hospitals since 2014, but a new home edition is available for patients who need help with mobility. The glove is available to patients to rent for $99 and is reimbursable through many health plans. Rapael Smart Board This device helps patients improve shoulder and elbow mobility. Using game-based technology, the device creates exercises based on a patient’s ability and performance. It includes a board with a hand grip, and allows patients to increase conditional exploration, point-to-point reaching, and shape drawing through exercise. The real-time assessment of patient data includes range, speed, smoothness and harmony of motion. K’Track Glucose Painless and accu- rate glucose monitoring is the goal of many health technology companies.
  • 18. The watch-like K’Track Glucose monitor aims to be the solution for people with type 1 and type 2 diabetes by using technology that uses micro needles to collect and analyze fluid right below the skin surface. The needles are less than 0.5 mm. The micro needles are a part of a replaceable cartridge that lasts 30 days, but can take unlimited readings in the time period. Users push a button on the device to check their glucose levels, and it takes a minute for results to display on the face of the device. All results over time are synced to a mobile app. Fever Scout The Fever Scout is a flexible patch that can track a user’s temperature over time and share it with clinicians or caregivers. The remote monitoring device can be placed near the user’s armpit, and smartphone alerts can let caregivers know if there’s a fever or spike in temperature. The continuous temperature monitoring device can be used for babies and young children, post-operative patients, cancer patients, and seniors. Fever Scout syncs with a smartphone app when it’s within 25 feet to 30 feet of the phone. With a signal amplifier, the device can monitor a user’s temperature up to 130 feet away. Vivobarefoot smart shoes Billed as a fitness shoe with a built-in computer, the Vivobarefoot will track vital signs of runners with hopes to reduce injury in the future. The shoe monitors real time speed, pace, cadence, foot landing, time on the ground, impact, asymmetry and toe engagement. The shoe’s creators hope to use this data for business and academic purposes to make running and walking more safe and efficient. The shoe is being created through a partnership with Sensoria, a fitness garment company, and Vivobareboot, a running shoe company. Two removable cores embedded in a thin 5 mm outsole connect to four pressure points in the foot. An accompanying mobile app houses all the data tracked during a run.
  • 19. Conclusion Attractiveness is the key to driving demand One of the things that really jump out of this report is that style is becoming more and more important in the wearable technology market. It’s no longer enough to focus purely on creating functional apps for functional devices. Analysts, manufacturers and journalists are all agreed that the next generation of wearable technology needs to put more emphasis on being aesthetically pleasing, visually appealing increasing hedonism. There are lots of ways that businesses in the wearable technology sector could help to boost the desirability of their products. For example, they could actively target celebrity endorsements and brand partnerships. However, in the fast-moving worlds of technology and fashion, they need to make sure that they keep abreast of the latest developments in both industries to avoid the risk of launching concepts that are already out of date. And to free up time to focus on creating really visually arresting apps, they should look for cross-platform synergies at every opportunity. Security There can be no doubt that the privacy issues around wearable technology are real and must be acknowledged by the wearable technology industry Legal counselors have been frequently voicing their worries about the potential legitimate ramifications of our turn towards technology-driven lifestyles The overall population reflects these states of mind to some degree. Generally 50% of customers feel security fills in as an obstruction to the selection of wearable innovation, and threat to their own privacy. Interestingly, however, the research also appears to suggest that people who own one or more devices overwhelmingly believe the technology has enhanced their lives. As a matter of fact, these findings demonstrate that organizations in the wearable innovation space must do all that they can to teach imminent clients. Companies must reach out to everyone from politicians and industry groups to journalists and consumers. Additionally, managers that are thinking about presenting wearable innovation at work would be very much encouraged to maximize their chances of securing buy-in. And lastly, it’s crucial for companies in this field to be transparent about what data is being collected and how it will be used. Wearable technology means different things to different businesses Some sectors obviously have greater potential than others though. Top of the pile are the EMC [entertainment, media and communications] industries, followed closely by health, retail and
  • 20. technology. We’ve found that the general public is relatively comfortable with the idea of doctors using wearable technology to record medical examinations, but there’s much greater concern surrounding the prospect of teachers or builders bringing wearable technology into their lives. The time has come for smart watches Wearable technology is an incredibly diverse category covering a range of products such as smart glasses, smart watches, fitness trackers, smart clothing, smart wristbands, smart jewelry, smart shoes, gadget gloves and virtual reality headsets. Some may always have limited adoption rates but others are showing all the signs of breaking into the mainstream in 2017. For some time now, fitness trackers have surged ahead in the popularity stakes and there’s plenty of research confirming that by far the most people own one of these. Times are changing, however, and from late 2016 onwards we’ve suddenly started to see more consumers reporting that they want a smart watch than anything else. Limitless potential In truth, wearable technology can transform our lives in so many ways from influencing our psychology to helping us do everyday tasks more efficiently, yet we’ve barely scratched the surface. Many people still don’t know enough about wearable technology or fully understand the issues around it. Customer education is the prime factor for success.
  • 21. References 1 Motivation, cognition, learning—basic factors in consumer behaviour, James a. Bayton, Journal of Marketing 2 Motivation-need theories and consumer behaviour, K. Fred vari Raaij, Kassaye Kandwossen, Advances in consumer research 3 The Wrist-Worn Revolution Fails to Materialize, eMarketer report 4 https://intelligence.businessinsider.com/the-wearable-computing-market-report- growth-trends-consumer-attitudes-and-why-smartwatches-will-dominate-2014-10 5 THE SMARTWATCH REPORT: Forecasts, adoption trends, and why the market isn't living up to the hype (https://intelligence.businessinsider.com/the-wearable- computing-market-report-growth-trends-consumer-attitudes-and-why-smartwatches- will-dominate-2014-10) 6 The Wearable Future, (http://www.pwc.com/us/en/technology/publications/wearable- technology.html) 7 Worldwide Wearables Market Shares, 2016: Fitbit Retains Leadership (https://www.idc.com/getdoc.jsp?containerId=IDC_P29207) 8 MARBURY D. New wearables to watch. Managed Healthcare Executive [serial online]. March 2017;27(3):22-24. Available from: Business Source Corporate, Ipswich, MA. Accessed May 5, 2017
  • 22. Smart Wearable Survey 1 What is your gender? Male Female 2 Whatis youragegroup? 17 or younger 18-24 25-34 35-44 44-55 55+ 3 What is your maritalstatus? Single Married 4 What is thehighestlevelofeducationyouhavecompleted? Bachelor's Degree High School or Equivalent Master Degree Doctorate Degree 5 Which smartphone brand youuse? Apple Samsung Moto OnePlus Other (Please Specify) 6 Do you own any smart wearable like Apple Watch, Samsung VR headset, Fitbit etc? Yes No 7 If yes which smart wearableyouown? Apple Watch Android Watch Samsung VR Headset FitBit MiBand Other (Please Specify)
  • 23. 8 If yes what motivated you to buy this product?* Features Compatibility with phone Health/Fitness tracking Receivephonecalls/messages Control music onphone Price/good deal Monitor Sleep quality Other (Please Specify) 9 Wheredoyou use the technology/ smart wearabledevice more? Personal Life Professional Life Both 10 Do youshareyourhealthactivities trackedonSocialmedia(likesharingyourjoggingtrack onFacebook)? Yes No 11 If you have a chance to take part in a test for real experience about wearable technologies in 1 week for free, would you willing to get involved in? Yes No 12 If yes, which wearable device(s) do you want to have? VR Headset Fitness Band Smart Watch Smart Ring Other (Please Specify) 13 What is ideal price for a wearable device? Less than 10k 10-15k 15-20k 20-30k 14 Reasons that you want to buy wearable device(s) are: Experience new technology Fitness tracking Gift it to my family/friends Fear of missing out on new technology Value for money product I don't have a reason but still I want to own one Other (Please Specify)
  • 24. 15 Do you see any privacy concerns usingthe smart wearables? 16 Do you see any difference in how, when and where consumers will use smart watches in 5 years, compared to today? ReportAbuse
  • 25. Quick Report What is your gender? Male Female Standard Deviation Responses All Data 13 (62%) 8 (38%) 2.5 21 Male Female
  • 26. What is your age group? 17 or younger 18-24 25-34 35-44 44-55 55+ Standard Deviation Responses All Data 0 (0%) 1 (5%) 13 (62%) 7 (33%) 0 (0%) 0 (0%) 4.92 21 17 or younger 18-24 25-34 35-44 44-55 55+ What is your marital status? Single Married Standard Deviation Responses All Data 6 (29%) 15 (71%) 4.5 21 Single Married
  • 27. What is the highest level of education you have completed? Bachelor's Degree High School orEquivalent Master Degree Doctorate Degree Standard Deviation Responses All Data 9 (43%) 0 (0%) 12 (57%) 0 (0%) 5.36 21 Bachelor'sDegree HighSchoolorEquivalent Master Degree DoctorateDegree
  • 28. Which smartphone brand you use? Apple Samsung Moto One Plus Other (Please Specify) Responses All Data 6 (30%) 5 (25%) 0 (0%) 3 (15%) 7 (35%) 20 Text Responses Lava Mi None Xiaomi LG Nexus 5 Xiaomi Nexus
  • 29. Do you own any smart wearable like Apple Watch, Samsung VR headset,Fitbit etc? Yes No Standard Deviation Responses All Data 7 (35%) 13 (65%) 3 20 Yes No If yes which smart wearable you own? Apple Watch Android Watch Samsung VR Headset FitBit MiBand Other (Please Specify) Responses All Data 2 (15%) 1 (8%) 0 (0%) 4 (31%) 4 (31%) 2 (15%) 13 Text Responses Na None
  • 30. If yes what motivated you to buy this product?* Features Compatibility with phone Health/Fitness tracking Receive phone calls/messages Control music on phone Price/good deal Monitor Sleep quality Other (Please Specify) Responses All Data 4 (27%) 2 (13%) 7 (47%) 2 (13%) 1 (7%) 5 (33%) 2 (13%) 5 (33%) 15 Text Responses Heart rate and bp Na i don't have Got it as a gift Don't have it. U don't have NA option. Also the below questions should be disabled. M forced to answer them. Grrr..
  • 31. Where do you use the technology/ smart wearable device more? Personal Life Professional Life Both Standard Deviation Responses All Data 8 (44%) 1 (6%) 9 (50%) 3.56 18 Personal Life Professional Life Both Do you share your health activities tracked on Social media (like sharing your jogging track on Facebook)? Yes No Standard Deviation Responses All Data 2 (11%) 16 (89%) 7 18 Yes No
  • 32. Ifyouhaveachancetotakepartinatestforrealexperienceaboutwearabletechnologiesin1 week for free,would you willing to get involved in? Yes No Standard Deviation Responses All Data 15 (71%) 6 (29%) 4.5 21 Yes No If yes, which wearable device(s) do you wantto have? VR Headset Fitness Band Smart Watch Smart Ring Other (Please Specify) Responses All Data 7 (44%) 5 (31%) 10 (63%) 2 (13%) 0 (0%) 16 Text Responses
  • 33. What is ideal price for a wearable device? Less than 10k 10-15k 15-20k 20-30k Standard Deviation Responses All Data 12 (57%) 3 (14%) 4 (19%) 2 (10%) 3.96 21 Less than 10k 10-15k 15-20k 20-30k Reasons that you want to buy wearable device(s) are: Experience new technology Fitness tracking Gift it to my family/friends Fear of missing out on new technology Value for money product I don't have a reason but still I want to own one Other (Please Specify) Responses All Data 15 (71%) 10 (48%) 2 (10%) 2 (10%) 3 (14%) 0 (0%) 1 (5%) 21 Text Responses Do not want one
  • 34. Do you see any privacy concerns using the smart wearables? Text Responses No no No yes Serious issues No No No no No No No No Yes. Companiescanchargemoremoneytomeonthebasisof my data. Theycanemotionallyblackmailme. I willshoot themintheheadthen. Personal data should not be shared. No Doyouseeanydifferenceinhow,whenandwhereconsumerswillusesmartwatchesin5 years, compared totoday? Text Responses No yes, deviceswillbemoreconnectedtohome,carandwork Yes No Can't say no Yes, Thesedevicesgetmoreinvolvedindaytodayactivitiesofthepeopleincomingyears. Yes Yes Yes. We willbeslaveto these smart devices. Our brainwillbelikedeadwood. Useless as it willbeonlyusedto see, hearandtaste. We willexpect onlydatato answerourqueries. m/ watchmayberedundantandmoreinteractiveformofdevicemaycomeup in manufacturing, architechtural firms
  • 35. We conducted qualitative research to uncover consumer’s subconscious or hidden motivations. Based on the premise the consumers are not always aware of the reasons for their actions, motivational research attempted to discover underlying feelings, attitudes, and emotions concerning product, service, or brand use. We used Direct (Non- disguised) qualitative procedure using focus groups and depth interviews and Indirect (disguised) qualitative procedures using projective techniques to measure motives to buy smart wearable: 1. Association techniques via Word Association 2. Completing techniques 3. Construction techniques via Drawing pictures 4. Expressive techniques via Story telling Direct qualitative procedure questionnaire: 1. The Consumer: Getting to know the consumer and the brand/brand values that matter to him/her- 1. What is your gender? 2. What is your age? 3. Which smartphone brand you use? 4. What is your marital status? 5. What is the highest level of education you have completed? 6. In your free time what kinds of things do you like to do? 7. How do you see yourself in 5/10 years from now? 8. Do you own any smart wearable like Apple Watch, Samsung VR headset,Fitbit etc? 9. Which smart wearable you own? 10. If yes what motivated you to buy this product?* 11. Do you share your health activities tracked on Social media (like sharing your jogging track on Facebook)? 12. If you have a chance to take part in a test for real experience about wearable technologies in 1 week for free, would you willing to get involved in? 13. If yes, which wearable device(s) do you want to have? 14. What is ideal price for a wearable device?
  • 36. 15. Reasons that you want to buy wearable device(s) are: 16. What does Apple stand for ? 17. How do you like products of Samsung, Google? In- Direct qualitative procedure questionnaire 2. The Emotion: Pulsing the Emotion and discovering the various layers of the emotion 2.a. Appeal for the proposition ofSMART 2.a.1. Association and appeal for the emotion/idea of “Smart”: As you know there can be so many thoughts that come to mind when we think of a single word.. so tell me all the words/phrases/associations that come to mind when you hear the word “mother” Similarly, I would like you to share your first thoughts, words, and feelings on hearing the word “ SMART”. Tell me whatever comes to your mind to describe this emotion. What do you feel about having a smart watch? Is it something of interest to you? If yes ,in what way ? If not what is in it that doesn’t connect with you? 2.a.2. Synergy of Emotion and Consumer’s life What aspects of your life do you think go well with the idea of having a smart watch/ wearable? What makes these aspects link themselves with this idea? Are there any aspects of your life that just don’t go with idea? 2.b. VISUALIZATION OF THE PROPOSITION “SMART” Image association What word comes to your mind when you think about this “SMART”? What colors do you see? What is the link of these colors with the idea of SMART? Measuring Consumer’s feeling and emotions about smart wearable’s (specially smart watches) Since you are a smart watch user, we would appreciate it if you would identify how your life was impacted after using the product? For each of the words below mark an “X” in the box corresponding to how your life’s impacted by use of smart watch/wearable.
  • 37. Very/Not at all Relaxed Multi tasking Health conscious Younger Paying attention to detail Ease of clicking pictures Talking while driving Continuous access to gps Semantic differential scales measuring consumer’s attitudes towards Smart wearables Compared to traditional watches, your self-owned watch is: Vogue Appealing to others Must have device Pleasant Health centric Consumer Reality and Idea/Proposition Situations/Memories I would like each of you to share/describe a situation in your lives which depicts Being SMART Where was this? When did this happen? Who were with you? What were you eating/drinking? What was the experience like? People and Proposition What kind of people would love this? Who would want to be a part of this idea of “Being SMART”? What are they thinking about? What qualities attract them to this?
  • 38. Do they have any concerns about being a part of this? Describe this person to me: Age Gender Nature Personality Hobbies Activities involved in Types of friends What will they be drinking usually? Products he/she owns? His/her prized possessions? Attire Category /Product link with proposition Tradition watch Vs Smart watch user