Q3) For demographic segmentation, it is appropriate to apply the income variable to compare the likely target market segments between the two watches. A smartwatch will likely to attract customers earning an annual income of USD$20,000 - USD$1,000,000. Meanwhile, a luxury watch is expected to entice customers earning an annual income of USD$1,000,000 and more. According to TechTimes.com, the most expensive smartwatch in the market belongs to LG’s G Watch R which costs around USD$400 (http://www.techtimes.com/articles/17546/20141009/lgs-g-watch-r-is-the-most-expensive-smartwatch-on-the-market.htm). The most expensive designer watch? The Hublot Classic Fusion Haute Joaillerie – USD$1,000,000 (http://www.watchtime.com/blog/million-dollar-watches/).
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It can be further segmented into two different groups in the higher sources category, namely experiences and innovators. Consumers belonging in the lower resources group are unlikely to demand for smartwatches and luxury watch due to the combination of personality traits (conservative, practical,passive,) as well as their demographic factors (age,income level). Consumers who are highly successful, goal-oriented, impulsive, sophisticated, young and financially stable are likely to buy these watches. However, the key differences lies in the type of group that each watch belongs to. Experiencers consumers are likely to buy a smart watch while an Innovators will buy a luxury watch. Experiencers consumers seek variety and excitement as well as spending comparatively high proportion of their income in entertainment and socialising. A smartwatch can be considered “exciting” as it is new wearable technology which is arriving in the watch industry. Different types of smartwatches provides different kinds of high technology functions. As such, users will be desperate to find the right smartwatch to fit into their identity and will use it as a mean to socialize and interact with one another. On the other hand, innovators usually purchased goods which reflects their sophisticated taste for the niche-oriented products and wealthy status. A luxury watch which costs …show more content…
A luxury watch and smartwatch could not be substitute with each other. For example, an IT proffessional who relies on his smartwatch to check his meetings and create schedules could not simply switch to a luxury watch. Wearing a luxury watch means that he has to adjust his lifestyle and use other devices for carrying out his work. Similarly, a tycoon who is known for wearing Rolex watches could not simply switch into wearing a smartwatch and hope that it could produce the same high status symbol to its peers. However, the growth of the smartwatch industry could ignite the interest of people in terms of wearing a watch as a fashion statement. Consumers who previously do not wear watches will likely try to wear a smartwatch. Wearing a smartwatch will allow users to use their smartphones lesser as most of its critical functions can be done on their wrists. The different varieties of smartwatches in the market will allow consumers to choose the right watch that fit together with their personality. Over time, the convenience factor of the smartwatch might turn into an aesthetic factor. If these consumers now view watches as a fashion statement, then the lure of the smartwatch may diminish and they would turn into wearing luxury watches to showcase their social status. In conclusion, both of these watches cater to different
It can be further segmented into two different groups in the higher sources category, namely experiences and innovators. Consumers belonging in the lower resources group are unlikely to demand for smartwatches and luxury watch due to the combination of personality traits (conservative, practical,passive,) as well as their demographic factors (age,income level). Consumers who are highly successful, goal-oriented, impulsive, sophisticated, young and financially stable are likely to buy these watches. However, the key differences lies in the type of group that each watch belongs to. Experiencers consumers are likely to buy a smart watch while an Innovators will buy a luxury watch. Experiencers consumers seek variety and excitement as well as spending comparatively high proportion of their income in entertainment and socialising. A smartwatch can be considered “exciting” as it is new wearable technology which is arriving in the watch industry. Different types of smartwatches provides different kinds of high technology functions. As such, users will be desperate to find the right smartwatch to fit into their identity and will use it as a mean to socialize and interact with one another. On the other hand, innovators usually purchased goods which reflects their sophisticated taste for the niche-oriented products and wealthy status. A luxury watch which costs …show more content…
A luxury watch and smartwatch could not be substitute with each other. For example, an IT proffessional who relies on his smartwatch to check his meetings and create schedules could not simply switch to a luxury watch. Wearing a luxury watch means that he has to adjust his lifestyle and use other devices for carrying out his work. Similarly, a tycoon who is known for wearing Rolex watches could not simply switch into wearing a smartwatch and hope that it could produce the same high status symbol to its peers. However, the growth of the smartwatch industry could ignite the interest of people in terms of wearing a watch as a fashion statement. Consumers who previously do not wear watches will likely try to wear a smartwatch. Wearing a smartwatch will allow users to use their smartphones lesser as most of its critical functions can be done on their wrists. The different varieties of smartwatches in the market will allow consumers to choose the right watch that fit together with their personality. Over time, the convenience factor of the smartwatch might turn into an aesthetic factor. If these consumers now view watches as a fashion statement, then the lure of the smartwatch may diminish and they would turn into wearing luxury watches to showcase their social status. In conclusion, both of these watches cater to different