Question 2
With the introduction of smartwatches, consumers now have an additional choice when it comes to buying watches. However, not everybody will actually want to buy a smartwatch. The consumer’s eventual purchase decision is influenced by a combination of factors which will lead to the development of brand and product preferences (Rani, 2014).
One main factor that may have a significant influence on a consumer’s decision to purchase anything is his reference groups. This includes the people he interacts with and the people he looks up to. The influencing reference group differs for early adopters and common consumers. The early adopters of smartwatches are generally those who keep up with the latest technological trends, and/or influential …show more content…
As smartwatches gain popularity, consumers don’t just face the pressure to conform. They also start to develop the fear of losing out, which can be a significant driving factor for purchase decision, even if it meant style over practicality. This fear and pressure is due to the consumer’s ideal self-concept that can change in relation to what is considered desirable by society. Consumers with an inferiority complex may start to feel more confident about themselves as they fit in after purchasing the smartwatch. On the other hand, early adopters generally purchase smartwatches due to their curiosity and tendency towards gadgets, and their desire to be one of the first few to try a new gadget “before it became …show more content…
There are three groups of income levels: the high income group, the middle income group and the lower income group. Generally speaking, the high income earners tend to have a bigger disposable income leading to greater purchasing power. With this, they are free to purchase products with a bigger price tag as they can afford it, whereas the lower income earners may not have this freedom to choose. Due to its hefty price tag, companies should market their luxury watches to those who can afford it – the high income groups. This also helps to retain the exclusivity of luxury products. In contrast, a smartwatch normally cost a tenth of a luxury watch. Seeing as it is more affordable for the middle and upper lower income groups to purchase, companies should market and fine tune the retail prices of their smartwatches to these groups. However, marketing a smartwatch to the lower income group may not prove to be effective either. If high income earners tend to have bigger disposable incomes, then lower income earners tend to have smaller disposable incomes leading to weaker purchasing power. This group will face the common shopping dilemma of want versus
With the introduction of smartwatches, consumers now have an additional choice when it comes to buying watches. However, not everybody will actually want to buy a smartwatch. The consumer’s eventual purchase decision is influenced by a combination of factors which will lead to the development of brand and product preferences (Rani, 2014).
One main factor that may have a significant influence on a consumer’s decision to purchase anything is his reference groups. This includes the people he interacts with and the people he looks up to. The influencing reference group differs for early adopters and common consumers. The early adopters of smartwatches are generally those who keep up with the latest technological trends, and/or influential …show more content…
As smartwatches gain popularity, consumers don’t just face the pressure to conform. They also start to develop the fear of losing out, which can be a significant driving factor for purchase decision, even if it meant style over practicality. This fear and pressure is due to the consumer’s ideal self-concept that can change in relation to what is considered desirable by society. Consumers with an inferiority complex may start to feel more confident about themselves as they fit in after purchasing the smartwatch. On the other hand, early adopters generally purchase smartwatches due to their curiosity and tendency towards gadgets, and their desire to be one of the first few to try a new gadget “before it became …show more content…
There are three groups of income levels: the high income group, the middle income group and the lower income group. Generally speaking, the high income earners tend to have a bigger disposable income leading to greater purchasing power. With this, they are free to purchase products with a bigger price tag as they can afford it, whereas the lower income earners may not have this freedom to choose. Due to its hefty price tag, companies should market their luxury watches to those who can afford it – the high income groups. This also helps to retain the exclusivity of luxury products. In contrast, a smartwatch normally cost a tenth of a luxury watch. Seeing as it is more affordable for the middle and upper lower income groups to purchase, companies should market and fine tune the retail prices of their smartwatches to these groups. However, marketing a smartwatch to the lower income group may not prove to be effective either. If high income earners tend to have bigger disposable incomes, then lower income earners tend to have smaller disposable incomes leading to weaker purchasing power. This group will face the common shopping dilemma of want versus