Consumer Perception and Purchase Intention towards Smartwatches

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IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 1. Ver. IV (Jan. 2017), PP 26-28
www.iosrjournals.org
DOI: 10.9790/487X-1901042628 www.iosrjournals.org 26 | Page
Consumer Perception and Purchase Intention towards
Smartwatches
Dr. P. Kishore Kumar1, V. Venkateshwarlu2
1,2Associate Professor, Department of Management SVS Group of Institutions Bheemaram Hanamkonda,
Warangal Telangana State
Abstract: The smartwatches is an innovative gadget launched in the recent years. This paper describes about
the perception and purchase intention of consumers about smartwatches. A structured questionnaire had been
used for primary data collection and statistical tools like descriptive statistics and frequency analysis have been
used for data analysis. It is found from this study people who are aware about smartwatches are having positive
purchase intention. This paper helps the marketers to design effective marketing strategies with regard to
smartwatches.
Keywords: Smartwatches, purchase intention, perception, attitude, wearable
I. Introduction
The technological advancements in the recent years have changed the functionality of electronic
products. The traditional mobile phones have become smartphones and similarly watches have become
smartwatches. A smartwatch is a wearable device with features like smartphone in addition to its basic
functionality like a watch. The smartwatch is synchronized with smartphone so that it can used to attend mobile
calls, access notification alerts and used to store health records etc. In the modern world, smartwatch is one of
the high technology products. By 2021the smartwatch shipments grow at an annual rate of 18 percent and may
reach 70 million units (Beaver, 2016). It is also anticipate that Apple will continue to drive a large portion of the
overall market, however, Android wearable devices will quickly catch up as emerging markets begin to adopt
the technology. The top five vendors of smartwatches are Apple, Samsung, Lenovo, LG Electronics and Garmin
etc (IDC, 2016). The research about consumer perception and behavior about smartwatches is in beginning stage
and the present study is an attempt to fulfill the research gap. The primary aim of this study is to provide
knowledge for marketers of smartwatches, academicians and researchers.
II. Literature Review
Smartwatches is in early stage of diffusion and perceived usefulness and visibility are important factors
for adoption of smartwatches (Chuah, Rauschnabel, Krey, Nguyen, Ramayah, & Lade, 2016). The ease of use is
more important factor for enhancing consumers’ attitude and adoption intention towards smartwatches. Further
gender does not play a vital in adoption intention of smartwatches (Wu, Wu, & Chang, 2016). According to
Choi and Kim (2016) smartwatch is fashion product and consumers who need uniqueness are more interested to
use smartwatch. (Choi & Kim, 2016). Consumers give more importance to features of smartwatches than brand
image and price of the product (Jung, Kim, & Choi, 2016). The behavioral intention of smartwatch users is
negatively influenced by privacy risk because smartwatches collects lot of physical activity data during usage.
The smartwatch had also being used for helping to consumers from the perspective of health and medical related
applications (Kalantarian & Sarrafzadeh, 2015). Many researchers have developed their research models based
on technology acceptance model (TAM), unified theory of acceptance and use of technology (UTAUT), theory
of planned behavior (TPB) and innovation diffusion theory (IDT) etc. Smartwatch is often referred as wearable
technology product and also high technology product in the present era. According to Kim (2016) among round
screen and square screen of smartwatches, the users prefer round screen smartwatches. At the same time
controlling features are more convenient on square screen smartwatches (Kim, 2016). According to Kim and
Shin (2015) the cost and sub-cultural appeal have an impact on consumers’ attitude and intention to use
regarding smartwatches. (Kim & Shin, 2015)
III. Research Methodology
A structured questionnaire had been used for collecting primary data and the sample size is 130.
Multistage random sampling method had been implemented while collecting primary data. In first stage the
respondents were enquired about their awareness smartwatch. In second stage only respondents who are aware
about smartwatches are given opportunity to participate in the survey. The SPSS software version 20.0 had been
used for data analysis. The frequency analysis and descriptive statistics had been used for data analysis. The
items related to perception, norms, attitude and purchase intention were measured on 5-point Likert type scale.

Consumer Perception and Purchase Intention towards Smartwatches
DOI: 10.9790/487X-1901042628 www.iosrjournals.org 27 | Page
The first part of the questionnaire collects data about demographic profile with three variables like age group,
gender and occupation. In second part of the questionnaire 9 items were used. The items which are measured
with 5-point Likert type scale are shown in Table 5.
IV. Data Analysis
Out of 130 respondents 70 percent are female and 30 percent are male. The detailed demographic
profile is shown in Table 1. Large portion of the respondents belong to ‘20-29 years’ age group. Out of total
respondents 38.5 percent of the respondents are employees and 34.6 percent are students. It is observed from
Table 2, that majority of the respondents are thinking Smartwatch is ‘want’ i.e. 48.5 percent and approximately
20 percent are treating it is as ‘need’.
Table 1: Demographic Characteristics of Respondents
S.No
Variable
Characteristic
Percent
1
Gender
Male
30.0
Female
70.0
2
Age group
20 - 29 Years
41.5
30 - 39 Years
37.7
40 - 49 Years
17.7
Above 49 Years
3.1
3
Occupation
Employee
38.5
Self-employed
22.3
Student
34.6
Others
4.6
Source: Primary data
Table 2: Perception about Smartwatches
Frequency
Percent
Both need and want
Need
Want
Total
40
30.8
27
20.8
63
48.5
130
100.0
Source: Primary data
According to Table 3 it is found that 13.8 percent of respondents have stated that ‘easy music or video
selection’ is attractive feature of smartwatches. Majority of the respondents stated that notification alerts is more
attractive feature i.e. 37.7 percent and approximately 30 percent stated opined that smartwatches are
fashionable. According to Table 4 it can be stated that majority of the respondents i.e. 51.5 gained knowledge
about smartwatches through internet followed by friends and family which is approximately 27 percent.
Table 3: Opinion about Smartwatches
Frequency
Percent
Easy music or video selection
Fashionable
More convenient
Notification alerts
Total
18
13.8
38
29.2
25
19.2
49
37.7
130
100.0
Source: Primary data
Table 4: Source of information
Frequency
Percent
Friends and Family
Internet
News paper ads
Others
Television advertisements
Total
35
26.9
67
51.5
10
7.7
8
6.2
10
7.7
130
100.0
Source: Primary data
Table 5: Descriptive Statistics for Scale Items
S.No
Items
Mean
SD
1
How likely are you to purchase smartwatch in future? (Purcahse Intention)
4.11
0.80
2
Smartwatch is essential for completing professional and personal tasks. (Personal Norm)
3.95
0.83
3
My family and friends expects me to use Smartwatch (Social Norm)
3.77
0.92
4
I like smart watch (Attitude)
4.40
0.63
5
I believe that Smartwatches are reasonably priced (Price perception)
3.72
1.03
6
In future I will purchase Smartwarch (Purchase Intention)
4.07
0.84
*SD = Standard Deviation, Source: SPSS Output

Consumer Perception and Purchase Intention towards Smartwatches
DOI: 10.9790/487X-1901042628 www.iosrjournals.org 28 | Page
The mean value for purchase intention of smartwatch is 4.11 is shown in Table 5. It means that
respondents agree to own a smartwatch in future. The mean value for personal norms with regard to
smartwatches is 3.95 with standard deviation (SD) of 0.83. The means value for social norms of respondents is
3.77 with SD of 0.92. According to Table 5, the means value for attitude is 4.40 with SD of 0.63. The mean
value for future purchase intention is 4.07 and SD is 0.84. The price perception mean value is 3.72 with SD
1.03.
V. Discussion And Conclusion
Smartwatches are perceived as ‘want’ and consumers are likely to have smartwatches for notification
alerts. Since smartwatches can be synched with smartphones the email, messages from social networking sites
can be accessed through it. The internet had created lot of awareness about smartwatches than other media. It is
also found from this study that consumers have opined that smartwatches can be used to complete personal and
professional tasks very conveniently. The consumers are thinking that smartwatches are reasonably priced based
on its features. From this study it can be concluded that consumers are likely own a smartwatch in future to
perform variety of tasks. The results of this research are consistent with previous studies regard smartwatches.
Limitations
There are many other factors like perceived behavioral control and ease of use etc have not been
considered in this study. In this study the perception of consumers who have already awareness are analyzed but
there is chance that people who are educated about smartwatch may likely to purchase it.
Future Research
The customer satisfaction levels regarding wearable devices need to be studied in future. The users of
smartwatches should be enquired about in different geographical locations. The impact of education level,
gender and income level on consumer attitude towards smartwatches should be researched in future.
References
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