SMART WATCH USAGE IN 2020 - A STUDY OF USAGE BEHAVIOURS AND THE DEVELOPMENT OF THE MARKET FOR SMART WATCHES CECILIA ENGELBERT - DIVA
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DEGREE PROJECT IN MEDIA TECHNOLOGY 300 CREDITS, SECOND CYCLE STOCKHOLM, SWEDEN 2016 Smart Watch Usage in 2020 A STUDY OF USAGE BEHAVIOURS AND THE DEVELOPMENT OF THE MARKET FOR SMART WATCHES CECILIA ENGELBERT KTH ROYAL INSTITUTE OF TECHNOLOGY SCHOOL OF COMPUTER SCIENCE AND COMMUNICATION
Smart Watch Usage in 2020
- A study of usage behaviours and the development
of the market for smart watches
Användning av Smarta Klockor 2020
- En studie om användarbeteenden och utvecklingen
av marknaden för smarta klockor
CECILIA ENGELBERT
ceen@kth.se
Master’s Thesis in Media Technology
School of Computer Science and Communication (CSC)
Royal Institute of Technology, Stockholm
Supervisor: Christopher Rosenqvist
Examiner: Haibo Li
Work commissioned by: Nepa
Date of submission: 2016-02-01
Abstract The$technology$development$during$the$last$few$years$have$led$to$increased$use$of$wearable$ technology$devices.$Studies$show$a$growing$interest$for$the$smart$watch$functionality$and$ projections$are$that$wearable$devices$will$become$mainstream$during$the$next$years.$This$imply$ that$the$smart$watch$functionality$will$most$likely$have$an$impact$on$both$companies$and$ consumers,$since$new$technologies$and$devices$can$affect$and$change$current$consumer$ behaviours.$Exactly$how$smart$watches$will$affect$consumer$usage$behaviours$is$still$an$ uncertainty$since$the$technology$is$relatively$new,$and$this$study$aims$to$research$this$area$in$ order$to$predict$how$the$market$for$smart$watches$will$appear$in$2020.$$ A$literature$study$was$conducted$to$provide$a$theoretical$basis$for$the$thesis,$including$a$ description$of$the$current$smart$watch$market$and$models$on$consumer$acceptance$related$to$ technology.$A$qualitative$study$in$form$of$expert$interviews$was$conducted$with$the$aim$to$gain$ insights$regarding$trends$and$development$factors$influencing$the$market.$The$study$identifies$ personal$identity,$monitoring$and$comfort$as$the$three$main$motivations$to$why$consumers$use$ smart$watches.$The$three$main$situations$are$using$smart$watches$as$extensions$of$the$smart$ phone,$in$health$purposes$and$for$personal$advantages.$Technology$and$consumer$behaviour$ related$trends$are$also$identified,$as$well$as$a$series$of$challenges$for$future$market$development.$$ The$main$conclusions$from$this$research$are$that$the$value$proposition$of$smart$watches$lies$ within$sensor$performance$and$that$smart$watches$will$be$used$primarily$for$monitoring$and$ professional$use.$The$development$pace$of$the$market$is$also$affected$by$social$norms$and$ consumer$habits,$and$in$order$for$smart$watches$to$become$mainstream,$a$functioning$ecosystem$ consisting$of$network$operators,$device$manufacturers$and$application$developers$is$needed.$$ $ $
Sammanfattning De$senaste$årens$teknikutveckling$har$inneburit$ökad$användning$av$bärbar$teknik.$Studier$visar$ ett$ökat$intresse$för$smarta$klockors$funktionalitet$och$prognoser$förutspår$att$bärbara$enheter$ kommer$att$bli$allt$mer$vanliga$de$kommande$åren.$Det$betyder$att$smarta$klockors$ funktionalitet$troligen$kommer$att$ha$en$inverkan$på$både$företag$och$konsumenter$eftersom$ nya$tekniker$och$enheter$kan$påverka$och$förändra$nuvarande$konsumentbeteenden.$Exakt$hur$ smarta$klockor$kommer$påverka$konsumenters$användarbeteenden$är$ännu$inte$klargjort$ eftersom$tekniken$är$relativt$ny.$Därför$är$syftet$med$denna$studie$att$undersöka$det$här$ området$för$att$kunna$förutspå$hur$marknaden$för$smarta$klockor$kommer$att$se$ut$år$2020.$$ En$litteraturstudie$genomfördes$i$syfte$att$ge$en$teoretisk$bas$till$uppsatsen,$och$inkluderar$en$ beskrivning$av$den$nuvarande$marknaden$för$smarta$klockor$samt$modeller$angående$ konsumentacceptans$för$teknik.$En$kvalitativ$studie$i$form$av$expertintervjuer$genomfördes$för$ att$få$insikter$angående$trender$och$faktorer$som$påverkar$marknaden.$Studien$identifierar$ personlig$identitet,$övervakning$och$bekvämlighet$som$de$tre$huvudsakliga$motiven$till$varför$ konsumenter$använder$smarta$klockor.$De$tre$huvudsakliga$användningsområdena$är$att$ använda$smarta$klockor$som$en$förlängning$av$smarttelefoner,$i$hälsosyfte$och$för$personliga$ fördelar.$Trender$relaterade$till$teknik$och$konsumentbeteenden$är$också$identifierade,$liksom$ ett$antal$utmaningar$för$framtida$utveckling$av$marknaden.$$ De$huvudsakliga$slutsatserna$i$denna$studie$är$att$smarta$klockors$värdeproposition$är$ sensorernas$prestanda,$samt$att$smarta$klockor$kommer$användas$främst$för$övervakning$och$ professionell$användning.$Marknadens$utvecklingstakt$påverkas$också$av$sociala$normer$samt$ konsumenters$vanor,$och$för$att$smarta$klockor$ska$bli$vedertagna$att$använda$så$måste$det$ finnas$ett$fungerande$ekosystem$bestående$av$nätverksoperatörer,$produkttillverkare$och$ applikationsutvecklare.$$ $ $
Acknowledgements
This$master’s$thesis$was$conducted$during$the$autumn$of$2015,$and$I$am$proud$to$say$that$it$
represents$the$absolute$last$challenge$in$my$education.$I$could$not$have$done$it$alone,$and$I$
would$like$to$thank$everyone$who$helped$me$during$this$process.$$
A$large$thank$you$to$each$and$all$of$the$interviewees$who$dedicated$their$time$to$participate$and$
help$me$with$my$thesis$work.$Your$knowledge$has$been$of$great$value$and$this$thesis$would$not$
have$been$complete$without$your$insights.$
Dr.$Christopher$Rosenqvist$for$inspiration$to$find$a$subject$and$supervision$during$the$thesis.$$
Andreas$Nordfors$for$supervision$and$the$opportunity$to$perform$the$thesis$at$Nepa.$$$
Dr.$Haibo$Li,$examiner$of$the$degree$project.$$
I$would$also$like$to$thank$Jimmie$Paloranta$for$great$company,$interesting$discussions$during$the$
process$and$for$always$holding$on$to$the$three$o’clockT“fika”.$$
$
$
$
$
Cecilia$Engelbert$
$ $
1 INTRODUCTION 1 1.1 BACKGROUND 1 1.2 RESEARCH PROBLEM 1 1.3 PURPOSE AND OBJECTIVES 2 1.4 DELIMITATIONS 2 1.5 DEFINITIONS 2 1.6 ABOUT NEPA 2 2 THEORY 3 2.1 WEARABLE TECHNOLOGY 3 2.2 THE SMART WATCH 4 2.2.1 DEFINITION 4 2.2.2 HISTORY 5 2.3 CURRENT MARKET FOR SMART WATCHES 6 2.3.1 MARKET GROWTH TRENDS 6 2.3.2 FIELDS OF USE FOR A SMART WATCH 7 2.3.3 TECHNOLOGY CONSTRAINTS 9 3 METHODOLOGY 11 3.1 LITERATURE REVIEW 11 3.1.1 PURPOSE OF SEARCH 11 3.1.2 SEARCH METHODS AND RESULTS 12 3.2 QUALITATIVE STUDY 12 3.2.1 DIFFERENT TYPE OF INTERVIEWS 12 3.2.2 PURPOSE OF EXPERT INTERVIEWS 13 3.2.3 METHODS USED TO CONDUCT AND ANALYSE THE INTERVIEW DATA 14 4 CONSUMERS AND TECHNOLOGY 16 4.1 CONSUMER ACCEPTANCE 16 4.1.1 TAM/TAM2 16 4.1.2 UTAUT 18 4.2 ACCEPTANCE FOR SMART WATCHES 19 5 RESULTS 21 5.1 SMART WATCH USAGE 21
5.1.1 CONSUMER MOTIVATIONS 21 5.1.2 IDENTIFIED USAGE SITUATIONS 22 5.2 IDENTIFIED TRENDS 23 5.2.1 TECHNOLOGY TRENDS 24 5.2.2 CONSUMER BEHAVIOUR TRENDS 25 5.3 CHALLENGES FOR FUTURE DEVELOPMENT 26 5.3.1 TECHNOLOGICAL BARRIERS 27 5.3.2 CONSUMER ATTITUDES 27 5.3.3 SOCIETY ISSUES 28 5.4 SUMMARY OF RESULTS 30 6 DISCUSSION 31 6.1 GENERAL OBSERVATIONS 31 6.1.1 THE SMART WATCH IS A NEW DEVICE 31 6.1.2 FUTURE USAGE SITUATIONS 33 6.1.3 DEVELOPMENT VARIABLES 34 6.2 METHOD CRITICISM 36 7 CONCLUSION 37 7.1 ANSWERING THE RESEARCH QUESTIONS 37 7.2 FUTURE RESEARCH 38 8 REFERENCES 39 9 APPENDICES 43 9.1 APPENDIX A: INTERVIEW QUESTIONS 43 $ $ $ $ $ $
$
1 Introduction
This%chapter%gives%an%introduction%to%the%research%problem%explored%in%the%thesis.%It%includes%a%
background,%research%problem%and%purpose,%delimitations,%some%definitions,%and%a%brief%description%
of%the%company%Nepa,%for%which%the%research%is%carried%out.%%
1.1 Background
Technology$is$an$everTevolving$area,$and$new$technologies$bring$new$devices$to$consumers.$
During$the$last$few$years,$one$of$the$trends$spotted$is$the$increased$usage$of,$and$interest$for,$
wearable$technology$devices.$They$are$worn$on$the$body$and$connected$to$the$Internet,$and$
examples$of$these$devices$are$smart$watches,$bracelets,$glasses$and$so$on.$Many$are$also$starting$
to$offer$biometric$measurements,$which$may$open$up$for$interesting$business$opportunities$in$
the$future.$As$of$now,$these$devices$are$more$common$within$the$health$and$fitness$industries$in$
form$of$activity$trackers$and$bracelets.$However,$studies$show$that$consumers$have$an$increased$
interest$in$the$smart$watch$functionality$and$projections$are$that$wearable$devices$will$become$
more$mainstream$during$the$coming$years$(Pew$Research$Center,$2014).$Sales$could$reach$148$
million$units$in$2019,$compared$to$the$33$million$units$sold$in$2014,$which$imply$an$enormous$
market$growth$(Barbera,$2015).$$
The$growing$interest$in$the$smart$watch$functionality$will$most$likely$have$an$impact$on$both$
companies$and$consumers,$since$new$technologies$and$devices$can$affect$and$change$current$
consumer$behaviours.$Mobile$devices,$including$smartphones$and$tablets,$are$proof$of$that$as$
they$rapidly$changed$consumer$usage$behaviours$and$created$new$needs$for$connectivity$and$
entertainment$consumption.$The$popularity$and$demand$for$mobile$devices$on$the$market,$led$to$
new$opportunities$and$challenges$for$whole$industries,$which$were$forced$to$adapt$their$
businesses$to$wishes$of$the$consumers.$$
Exactly$how$smart$watches$will$affect$consumer$usage$behaviours$within$a$few$years$is$still$
difficult$to$determine$since$the$technology$is$relatively$new$on$the$market.$This$study$aims$to$
research$this$area,$in$order$to$predict$how$the$market$for$smart$watches$will$appear$in$2020.$$
1.2 Research problem
This$master’s$thesis$revolves$around$one$central$research$question,$which$together$with$three$
additional$subTquestions$will$be$analysed,$discussed$and$answered$in$this$thesis.$$
The$main$question$is:$$
• How%will%the%market%for%smart%watches%appear%in%2020?%
1$$
The$additional$subTquestions$are:$$
• Which%are%the%main%drivers%for%consumers%using%smart%watches?%
• What%trends%are%relevant%for%the%development%of%the%smart%watch%market?%
• How%will%these%trends%affect%the%usage%behaviour%for%smart%watches%within%5%years?%%
1.3 Purpose and objectives
The$purpose$of$this$thesis$is$to$examine$the$existing$and$future$market$for$the$smart$watch$and$
to$examine$consumer$behaviour$related$to$the$technology.$The$intention$is$to$identify$the$drivers$
and$motives$behind$the$usage$of$the$smart$watch$as$well$as$important$trends,$which$will$have$an$
impact$on$the$development$of$the$smart$watch$market.$The$study$also$aims$to$identify$any$
possible$barriers$that$can$affect$the$development$of$the$market$and$to$examine$what$
opportunities$and$challenges$this$might$imply$for$businesses$within$other$industries.$$
1.4 Delimitations
The$aim$of$this$research$is$to$examine$the$market$for$one$specific$wearable$device:$the$smart$
watch.$Other$wearable$technology,$for$example$wristbands,$activity$trackers,$wearable$clothing,$
jewellery$and$glasses$will$not$be$taken$into$account$for$this$study,$not$is$it$a$comparative$study$
between$different$wearable$devices.$$
1.5 Definitions
TERM% EXPLANATION%
FoMO$ Fear%of%Missing%Out%
ICT$ Information%and%Communications%Technology%
IoT$ Internet%of%Things%
TAM$ Technology%Acceptance%Model%
UTAUT$ The%Unified%Theory%of%Acceptance%and%Use%of%Technology%
QS$ Quantified%Self%
1.6 About Nepa
Nepa$is$a$media$research$company$founded$in$2006$working$across$many$different$industries:$
retail,$media$and$entertainment,$brands$and$communication,$telecom,$and$fastTmoving$consumer$
goods$(FMCG).$They$use$technology$and$industry$expertise$to$develop$innovative$and$efficient$
research$solutions$that$go$beyond$insights$and$enable$action.$Nepa$combine$survey,$behavioural$
and$business$data$and$by$analysing$what$consumers$say$with$what$they$actually$do,$they$help$
their$customers$to$become$truly$customer$focused.$$
2$$
2 Theory
This%chapter%will%provide%the%theory%needed%to%understand%the%thesis%work.%First%is%a%brief%overall%
description%of%wearable%technology,%followed%by%a%presentation%of%the%wearable%device%chosen%for%
this%research:%the%smart%watch.%The%current%market%for%the%smart%watch%is%also%described,%including%
growth%trends,%fields%of%use%and%technology%constraints.%%
2.1 Wearable technology
Steve$Mann$is$one$of$the$pioneers$in$the$area$of$wearable$computing,$and$he$describes$wearable$
technology$as$the$study$or$practice$of$inventing,$designing,$building,$or$using$miniature$bodyT
borne$computational$and$sensory$devices$(Mann,$2013).$In$other$words,$wearable$technology$is$
a$category$of$technology$devices$that$can$be$worn$on$the$body$either$as$an$accessory$or$as$part$of$
material$used$in$clothing.$It$is$in$other$research$commonly$referred$to$as$fashionable$technology,$
wearable$devices$or$fashion$electronics.$There$are$many$different$types$of$wearable$technology,$
including$wearable$cameras,$smart$clothing,$wearable$application$platforms,$smart$glasses,$
health$and$happiness$wearable$devices,$activity$trackers,$3D$motion$sensors,$and$smart$watches$
(Nagtegaal,$Verzijl$and$Dervojeda,$2015).$A$few$examples$of$wearable$technology$sectors,$
applications$and$products$are$shown$in$Figure$1.$$
$
Figure%1.%Examples%of%wearable%technology%applications,%adapted%from%Nagtegaal,%Verzijl%and%Dervojeda%(2015).%%
Wearable$devices$can$be$classified$according$to$two$standards$(Jiang$et$al.,$2015).$The$first$
standard$is$based$on$the$product%form,$and$the$categories$are$as$following:$headUmounted,$bodyU
dressed,$handUworn$or$footUworn%devices.$The$second$standard$is$based$on$the$product$function,$
3$$
with$the$following$categories:$healthy%living,$information%consulting$and$somatosensory%control.$
The$different$classification$standards$can$be$seen$in$Table$1$below.$$
Table%1.%Different%wearable%technology%classification%standards.%
STANDARD% CATEGORY% DEVICES%
• Helmets%
HeadTmounted$
• Glasses%
BodyTdressed$ • Different%types%of%clothing%
• Watches%
Product%form%
HandTworn$ • Bracelets%
• Gloves%
• Shoes%
FootTworn$
• Socks%
• Sport%wristbands%
Healthy$living$
• Smart%bracelets%
Product%function% • Smart%glasses%
Information$consulting$
• Smart%watches%
Somatosensory$control$ • Somatosensory%controller%
2.2 The smart watch
2.2.1 Definition
For$a$product$to$be$classified$as$“smart”,$it$has$to$be$embedded$with$smart$components$such$as$
processors,$sensors,$software$and$connectivity$(Porter$and$Heppelmann,$2014).$These$
components$allow$for$data$to$be$transferred$between$the$product$and$its$environment,$user,$
other$products,$and$so$on.$When$looking$into$previous$research$on$smart$watches,$however,$
there$is$not$one$general$definition$of$what$a$smart$watch$is.$Different$studies$use$different$
definitions.$Two$similar$definitions$are$those$written$by$Edwards$(2013)$and$Smartwatch$Group$
(2013),$and$a$combination$of$these$two$is$used$in$this$research$to$define$a$smart$watch.$
The$definition$chosen$for$this$research$is$as$follows:$
“A%smart%watch%is%a%wristwatch%enhanced%with%functionality%of%a%personal%digital%assistant%device%
and%can%be%programmed%to%execute%more%tasks%than%only%telling%time,%i.e.%it%can%be%defined%by%three%
characteristics:%%
1. Worn%on%the%wrist%
2. Able%to%indicate%time%
3. Able%to%wirelessly%connect%to%the%Internet”%
4$$
The$connection$to$the$Internet$can$be$accomplished$in$different$ways.$Even$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.$
(Smartwatch$Group$2013)
2.2.2 History
Throughout$history,$the$role$of$watches$has$evolved$many$times.$The$earliest$wristwatches$were$
produced$in$the$16th$century$and$served$the$purpose$of$being$accessories$worn$mostly$by$
women.$During$the$19th$century$they$got$yet$another$purpose,$when$military$men$wore$them$as$
portable$time$telling$pieces$due$to$the$importance$of$synchronizing$manoeuvres$during$war.$
Later$on,$they$became$a$piece$of$jewellery$and$objects$of$selfTexpression.$The$role$has$now$been$
redefined$once$again$with$the$arrival$of$smart$watches.$(Kracheel,$Bronzi$and$Kezemi,$2014)$
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.$(Rawassizadeh,$Price$and$
Petre,$2015;$Sethuram$and$Lakshmi,$2015)$This$type$of$watch$became$very$trendy$during$the$
1980s.$At$that$time,$Casio$was$the$lead$manufacturer$as$their$watch$series$had$the$functionality$
of$a$calculator,$and$also$could$store$names,$appointments,$phone$numbers$and$addresses$
(Sethuram$and$Lakshmi,$2015).$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$enough.$
(Rawassizadeh,$Price$and$Petre,$2015).$$
$
Figure%2.%From%left:%Pulsar%calculator%watch,%Casio%calculator%watch,%IBM/Citizen%WatchPad,%Fossil%Wrist%PDA.%
5$$
When$the$new$millennium$arrived,$so$did$the$technology$shift$where$cell$phones$became$
smartphones,$and$with$them$came$new$wearable$headsets$and$Bluetooth$technologies$to$take$
the$devices$out$of$the$hands$of$the$consumers.$Trends$revolved$around$ways$to$augment$already$
existing$devices$and$the$wearable$devices$had$no$features$of$their$own.$Also,$companies$were$
unsure$about$introducing$new$gadgets,$or$rather$if$the$consumer$demand$would$support$the$
implied$cost.$(Barbera,$2015)$
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.$$(Kracheel,$Bronzi$and$Kezemi,$2014;$Barbera,$2015).$Samsung,$Motorola$and$
Sony$soon$followed$in$Pebble’s$direction$and$at$the$2014$Consumer$Electronics$Show$in$Las$
Vegas,$the$wrist$revolution$was$declared$(Kracheel,$Bronzi$and$Kezemi,$2014).$$
Today$after$more$than$40$years$of$technological$development,$the$smart$watches$are$starting$to$
head$in$the$same$direction$as$mobile$phones$(Rawassizadeh,$Price$and$Petre,$2015).$They$are$
finally$becoming$a$commercial$product$that$many$technology$companies,$including$Google$and$
Apple,$show$a$large$interest$in$(Isacson,$2015).$$
2.3 Current market for smart watches
2.3.1 Market growth trends
There$seem$to$be$no$hesitation$that$the$popularity$of,$and$demand$for,$wearable$technology$will$
continue$to$grow$during$the$next$years.$Several$studies$show$an$increased$shipment$rate$of$
wearable$devices$and$the$smart$watch$will$be$the$leading$product$category.$This$means$smart$
watches$will$take$an$increasingly$large$share$of$the$shipments.$(Danova,$2014;$IHS,$2012;$Jiang$et$
al.,$2015;$Nagtegaal,$Verzijl$and$Dervojeda,$2015)$$
According$to$Danova$(2014),$the$global$market$for$wearable$devices$will$grow$at$a$compound$
annual$rate$of$35$%$over$the$next$five$years.$With$33$million$units$shipped$in$2014,$this$means$
that$shipments$will$reach$148$million$units$in$2019.$The$shipments$for$the$smart$watch$alone$
will$grow$at$a$compound$annual$rate$of$41$%$over$the$next$five$years.$Since$the$smart$watch$
accounted$for$59$%$of$the$shipments$in$2014,$that$share$will$expand$to$just$over$70$%$of$all$
shipments$by$2019.$Figure$3$show$an$estimation$of$global$wearable$devices$shipment$rates$over$
the$next$few$years.$$
6$$
$
Figure%3.%An%estimation%of%global%wearable%devices%shipment%rates%(Danova,%2014).%%
Over$the$past$years,$consumers$have$often$considered$wearable$devices$to$be$fun$novelties$and$
interesting$gadgets,$but$an$increasing$number$of$analysts$consider$that$the$technology$have$more$
disruptive$potential$than$that.$They$are$believed$to$change$existing$industries,$create$new$
markets$and$generate$new$jobs.$(Nagtegaal,$Verzijl$and$Dervojeda,$2015)$$
2.3.2 Fields of use for a smart watch
Smart$watches$are$capable$of$telling$time$as$regular$watches,$but$due$to$the$possibility$to$
incorporate$advanced$technologies$such$as$different$sensors,$they$are$also$capable$of$doing$much$
more.$So$what$other$purposes$can$they$be$used$for?$Some$of$the$research$done$in$this$field$is$
presented$below.$$
Previous$research$shows$that$health$management$is$one$of$the$areas$where$smart$watches$show$
great$usefulness.$Several$smart$watch$applications$have$been$developed$and$evaluated$
successfully,$for$example$a$diabetes$diary$and$a$cardiopulmonary$resuscitation$(CPR)$monitor.$
The$diabetes$diary$allows$users$to$monitor$blood$glucose,$insulin$injections,$physical$activity$and$
dietary$information$and$has$proved$very$useful$for$people$with$diabetes$(Årsand$et$al.,$2015).$
The$CPR$application$is$able$to$monitor$the$frequency$and$depth$of$CPR$and$provide$interactive$
and$corrective$feedback,$and$the$application$has$showed$significant$improvement$in$participants’$
performance$when$doing$CPR$(Gruenerbl$et$al.,$2015).$
7$$
$
Figure%4.%Input%functions%of%the%Diabetes%Diary%application%(Årsand%et%al.,%2015).%
$
Figure%5.%The%different%feedback%interfaces%in%the%CPR%monitor%application%(Gruenerbl%et%al.,%2015).%
Another$study$conducted$by$Lockman,$Fisher$and$Olson$(2011)$is$focused$on$epilepsy$and$the$
problem$of$unTwitnessed$seizures,$which$can$cause$injury$and$even$death.$The$conclusion$is$that$
smart$watches$equipped$with$motion/accelerometer$sensors$can$be$used$to$detect$tonicTclonic$
seizures,$and$should$allow$caretakers$of$people$with$tonicTclonic$seizures$to$be$alerted$when$a$
seizure$occurs.$$
Other$research$has$discussed$if$smart$watches$can$help$users$save$time$by$making$processes$
more$efficient$compared$to$those$on$a$smartphone,$because$according$to$a$news$article,$users$
check$their$smartphones$an$average$of$150$times$a$day$(Pradhan$and$Sujatmiko,$2014;$Spencer,$
2013).$It$is$also$a$common$benefit$of$smart$watches$to$help$users$notice$incoming$calls,$messages$
and$other$notifications$more$frequently.$An$investigation$shows$that$a$wristTmounted$system$
was$significantly$faster$to$access$than$a$device$stored$in$a$pocket$or$mounted$on$the$hip$
(Ashbrook$et$al.,$2008).$$
As$this$chapter$shows,$the$smart$watch$is$promoted$as$being$capable$of$performing$many$
different$tasks.$However,$there$seem$to$be$two$key$advantages$to$the$smart$watch$in$comparison$
to$other$devices:$their$mount$location$and$the$continual$connection$to$the$skin$(Rawassizadeh,$
Price$and$Petre,$2015).$$
8$$
2.3.3 Technology constraints
The$position$on$the$wrist$is$clearly$shown$to$be$an$advantage$from$the$previous$chapter,$and$
growth$trends$show$increased$popularity$and$rising$sales.$However,$there$are$still$technology$
issues$that$need$solutions$before$the$smart$watch$can$become$a$mainstream$device.$Danova$
(2014)$means$that$smart$watches$must$become$standalone,$computing$devices$with$more$robust$
functionalities.$Rawassizadeh,$Price$and$Petre$(2015)$also$state$in$their$research$that$there$are$
mainly$two$complications$when$keeping$a$device$small$enough$to$wear$on$the$wrist:$the$small%
screen%size,$and$the$limited%battery%capacity.$
Display size
The$small$display$size$results$in$restricted$input$and$output$capabilities$as$well$as$limited$
opportunities$to$display$multimedia$such$as$videos$and$images.$For$instance,$fitting$a$keyboard$
on$a$smart$watch$screen$is$even$more$challenging,$not$to$say$impossible,$than$fitting$one$on$a$
smartphone,$which$is$why$many$studies$have$researched$alternative$methods$for$interacting$
with$a$smart$watch.$The$researched$methods$include$alternative$text$input$methods,$gesture$
interaction$and$extended$interaction$surfaces,$such$as$keyboards$on$wristbands$and$even$virtual$
buttons$on$the$skin$of$the$user$(Funk$et$al.,$2014;$Knibbe$et$al.,$2014;$Komninos$and$Dunlop,$
2014;$Kracheel,$Bronzi$and$Kezemi,$2014;$Porzi$et$al.,$2013;$Xiao,$Laput$and$Harrison,$2014).$
Also,$screens$that$are$curved$around$the$wrist$have$been$discussed$as$an$option$to$address$the$
size$issue,$but$it$is$still$not$enough$for$keyboard$integration.$(Rawassizadeh,$Price$and$Petre,$
2015)$
$
Figure%6.%Example%of%gesture%based%interaction%with%a%smart%watch%(Porzi%et%al.,%2013).%
$
Figure%7.%One%smart%watch%with%keyboard%on%the%wristband,%and%one%with%extended%interaction%surface%(Funk%et%al.,%
2014;%Knibbe%et%al.,%2014).%
9$$
Battery
The$small$hardware$leads$to$weaker$computing$capabilities$and$especially$limited$battery$
capacity$in$comparison$to$larger$devices,$and$most$smart$watches$today$only$last$for$a$few$days$
before$they$need$to$be$recharged$(Donelan,$2015;$Pradhan$and$Sujatmiko,$2014).$Some$
applications,$for$instance$GPS$systems,$are$also$more$power$requiring$than$other$and$localization$
services$try$to$overcome$this$problem$by$relying$on$a$combination$of$technologies$such$as$GSM,$
WiTFi,$and$GPS.$Another$way$of$overcoming$the$battery$capacity$problem$is$to$offload$power$
consuming$sensing$and$computing$operations$to$the$smartphone$and$to$use$the$smart$watch$
only$as$a$convenient$user$interface.$This$solution$is$commonly$used$for$companion$smart$
watches.$(Rawassizadeh,$Price$and$Petre,$2015)$
Other issues
Even$though$battery$capacity$and$screen$size$are$the$most$important$technical$factors$that$will$
affect$the$future$development$of$the$smart$watch$market,$there$are$other$factors,$which$will$also$
have$an$impact.$Kracheel,$Bronzi$and$Kezemi$(2014)$discuss$the$breakthrough$of$the$smartphone$
as$not$only$dependent$on$smooth$interaction$with$the$device,$but$also$on$application$developers$
and$the$community$support.$They$claim$that$the$same$will$be$true$for$the$smart$watch,$i.e.$the$
whole$ecosystem$of$device$manufacturers,$application$developers$and$community$must$be$in$
place$for$the$smart$watch$to$unlock$its$full$potential.$$
$ (
10$$
3 Methodology
The%methodology%for%this%thesis%consisted%of%two%parts,%a%literature%review%and%a%qualitative%study,%
which%are%both%explained%in%this%chapter.%A%literature%review%was%conducted%to%provide%a%theoretical%
basis%explaining%wearable%technology,%the%market%for%smart%watches%and%theories%on%consumer%
acceptance%regarding%technology.%To%gain%deeper%knowledge%about%current%trends%and%factors%
influencing%the%market%for%smart%watches,%interviews%were%conducted%with%industry%experts.%
3.1 Literature review
A$comprehensive$literature$review$was$conducted$for$this$thesis.$The$search$was$divided$in$two$
parts,$which$will$be$explained$below.$$
3.1.1 Purpose of search
The$first$part$was$focused$on$finding$literature$explaining$what$wearable$technology$is,$and$how$
the$current$smart$watch$market$appears.$The$purpose$of$this$was$to$provide$a$good$theoretical$
basis$for$the$thesis,$to$find$previous$research$that$was$relevant$for$this$topic$and$to$get$a$good$
overview$of$existing$knowledge$in$the$area.$The$keywords$used$for$this$part$of$the$literature$
review$are$found$in$Table$2,$and$the$findings$are$found$in$chapter$“2$Theory”.$$
Table%2.%Keywords%used%for%the%first%literature%search.%
• Acceptance% • Healthcare% • Smartphone%
• Applications% • History% • Trends%
• Challenges% • Interaction% • User%behaviour%
• Definition% • Internet%of%things% • User%needs%
• Development% • Market% • Wearable%
• Devices% • Opportunities% • Wearable%computing%system%
• Everyday%uses% • Smart%clothes% • Wearable%technology%
• Gestures% • Smart%watch% • WristUworn%
The$purpose$of$the$second$part$of$the$literature$review$was$to$study$consumer$acceptance$
regarding$different$technologies.$The$purpose$was$also$to$identify$different$consumer$
motivations$and$drivers$when$choosing$to$use$a$new,$and$preferably$wearable,$technology.$It$was$
based$on$previous$research$containing$theories$and$models$of$consumer$acceptance$related$to$
technology.$The$most$common$models$identified$in$this$part$are$presented$in$the$next$chapter,$“4$
Consumers$and$technology”,$and$the$identified$drivers$and$motivations$are$presented$in$chapter$
“5$Results”$together$with$the$results$from$the$qualitative$study.$$The$keywords$used$for$this$part$
of$the$literature$review$are$found$in$Table$3.$%
11$$
Table%3.%Keywords%used%for%the%second%literature%search.%
• Acceptance% • Technology%
• Consumer%acceptance% • Technology%acceptance%model%
• Information%technology% • Unified%Theory%of%Acceptance%and%
• New%technology% Use%of%Technology%
• Smart%watch% • User%motives%
• Smart%products% • UTAUT/UTAUT2%
• TAM/TAM2! • Wearable%
3.1.2 Search methods and results
The$literature$review$was$first$characterised$by$a$wide$and$general$search$approach,$which$was$
narrowed$down$along$the$process$as$more$relevant$research$papers$were$identified.$The$
different$keywords$were$used$alone$or$in$combination$“and”/”or”.$Journals,$books$and$other$
published$works$in$the$search$results$were$first$evaluated$by$title$and$abstract,$and$if$they$
contained$relevant$information$for$the$area$researched,$they$were$saved$for$future$use.$To$keep$
the$research$structured,$the$relevant$results$were$sorted$into$different$categories.$Since$
wearable$technology$and$smart$watches$are$relatively$new$areas$of$research,$the$search$was$
stretched$to$also$include$news$articles$and$online$sources.$$
Different$databases$were$used$for$finding$literature,$including$KTHB$Primo,$Google$Scholar,$
Elsevier$Scopus$and$IEEE$Xplore$Digital$Library$as$well$as$the$Google$search$engine.$References$
from$relevant$literature$and$articles$were$also$used$to$further$extend$the$search. (
3.2 Qualitative study
The$second$part$of$the$study$was$a$qualitative$study$based$on$expert$interviews.$The$interviews$
were$conducted$with$representatives$from$companies$associated$with,$or$with$an$interest$for,$
the$wearable$technology.$$
3.2.1 Different type of interviews
There$are$many$different$types$of$interviews$and$a$common$way$to$decide$which$type$to$use$is$
by$determining$the$amount$of$structure$desired.$Merriam$(2014)$describes$three$types$of$
interviews;$highly$structured,$semiTstructured$and$unstructured.$$
• The$highly%structured%interview$type$is$described$as$an$oral$form$of$a$written$survey.$The$
format$is$commonly$used$when$gathering$for$example$common$socioTdemographic$data$
from$the$respondents.$$
12$$
• SemiUstructured%interviews$have$a$less$structured$format$and$assume$that$individual$
respondents$define$the$world$in$unique$ways.$Such$an$interview$contains$more$flexibly$
worded$questions$and$allows$the$researcher$to$respond$to$the$situation$at$hand.$
• Unstructured%interviews$are$described$as$essentially$exploratory$and$are$very$useful$
when$the$researcher$does$not$know$enough$about$a$phenomenon$to$ask$relevant$
questions.$This$type$is$often$used$in$the$early$stage$of$a$qualitative$study,$since$one$of$the$
goals$with$this$type$of$interview$is$to$learn$enough$about$a$situation$to$be$able$to$
formulate$questions$for$subsequent$interviews.$$
In$this$research,$the$conducted$interviews$were$semiTstructured.$The$interviews$contained$openT
ended$questions$and$different$probes$were$used$to$gain$a$deeper$understanding$of$the$topics$
discussed.$Probes$are$defined$as$questions$that$the$researcher$ask$in$response$to$what$the$
interviewee$say,$and$according$to$Collis$and$Hussey$(2014),$the$data$analysis$state$begin$when$
using$probes$in$unstructured$or$semiTstructured$interviews.$The$probes$used$during$the$
interviews$are$listed$below.%
Table%4.%A%list%of%probes%used%during%the%interviews.%
TYPE%OF%PROBE% PROBE%
• Do%you%have%any%examples%of%this?%
Clarity%
• Can%you%explain%what%you%mean?%
Depth% • Can%you%give%a%more%detailed%explanation?%
Dimension% • Do%you%think%that%is%a%common%opinion?%
• How%important%is%this%issue/factor?%
Significance%
• What%issue/factor%is%the%most/least%important?%
3.2.2 Purpose of expert interviews
To$gain$valuable$insights$regarding$important$trends$and$development$factors$influencing$the$
market$for$smart$watches,$interviews$were$conducted$with$industry$experts$rather$than$with$
consumers.$The$interviewees$currently$or$recently$worked$at$companies$within,$or$with$an$
interest$for,$the$smart$watch$market.$The$companies,$with$which$the$interviewees$were$
associated,$were$chosen$carefully$to$represent$different$positions$along$the$wearable$technology$
value$chain.$The$choice$of$interviewing$representatives$from$companies$with$wide$spread$
positions$on$the$market$was$also$taken$to$examine$if$observations$of$the$smart$watch$market$
varied$depending$on$the$different$market$positions.$$
13$$
$
Figure%8.%Value%chain%for%wearable%technologies,%adapted%from%Nagtegaal,%Verzijl%and%Dervojeda%(2015).%
3.2.3 Methods used to conduct and analyse the interview data
Preparation of the interviews
Before$conducting$the$interviews,$several$questions$were$defined$with$the$aim$of$covering$the$
interviewees’$opinion$on$past,$current,$and$future$development$within$the$smart$watch$market.$
The$questions$were$sent$to$the$participants$in$advance$in$order$for$them$to$understand$the$aim$
of$the$interview.$The$interview$questions$can$be$found$in$Appendix$A.$$
In$total,$six$interviews$were$conducted$and$the$operating$area$of$the$company,$the$position$of$the$
interviewee$and$the$interview$index$character$is$presented$in$Table$5.$All$interviews$were$
conducted$in$Swedish$and$the$results$and$quotes$have$been$translated$to$English$in$this$thesis.$$
Table%5.%A%list%of%the%expert%interviews%conducted.%
AREA% POSITION% INTERVIEW%
Product$solutions$ Product%Manager% A$
Service$provider$ Business%Developer% B$
Service$provider$ Software%Developer% C$
Network$provider$ Networked%Society%Evangelist% D$
Media$group$ Business%Developer% E$
Media$measuring$company$ Founder% F$
Analysis of data
All$interviews$took$between$35T80$minutes$each$to$conduct.$The$audio$during$each$interview$
was$recorded,$and$the$interviews$were$transcribed$in$a$later$stage$for$easier$data$analysis.$The$
transcriptions$were$methodically$analysed$and$interesting$words,$notions$and$sentences$was$
highlighted$in$each$of$the$transcriptions,$in$order$to$identify$consumer$usage$situations$and$
trends.$The$highlights$were$then$compared$to$each$other$in$order$to$determine$what$usage$
situations$were$most$common,$and$which$trends$were$most$important.$The$data$from$the$
interviews$was$also$analysed$in$relation$to$the$consumer$technology$acceptance$models$to$
identify$consumer$motivations$for$using$smart$watches.$
14$$
Scenario analysis
The$data$from$the$interviews$was$also$discussed$with$inspiration$from$the$scenario$analysis$
method.$The$purpose$of$this$was$to$examine$how$consumer$usage$behaviours$might$have$
changed$within$the$next$five$years$and$what$that$might$imply$for$the$development$of$the$market.$
Grant$(2010)$describes$scenario$analysis$as:$
$“A%systematic%way%of%thinking%about%how%the%future%might%unfold%that%builds%on%what%we%know%
about%current%trends%and%signals”.%$
This$analysis$is$presented$in$chapter$“6.1.2$Future$usage$situations”.$$
$
15$$
4 Consumers and technology
As%mentioned%in%the%previous%chapter,%this%part%is%where%some%of%the%previous%research%on%consumer%
acceptance%for%different%technologies%will%be%presented.%The%Technology%Acceptance%Model%(TAM)%
and%the%Unified%Theory%of%Acceptance%and%Use%of%Technology%(UTAUT)%will%be%explained,%as%well%as%
an%acceptance%model%for%smart%watches.%%
4.1 Consumer acceptance
When$reading$previous$research$on$consumer$acceptance$regarding$technology,$there$are$in$
particular$two$models$that$are$frequently$used$and$referred$to:$the$Technology%Acceptance%Model$
(TAM/TAM2)$and$the$Unified%Theory%of%Acceptance%and%Use%of%Technology$(UTAUT/UTAUT2).$$
Mayer$et$al.$(2011)$developed,$based$on$the$UTAUT,$a$structural$model$of$technology$acceptance$
to$study$the$acceptance$of$smart$products$in$a$kitchen$environment.$Another$study$conducted$by$
Chen$and$Shih$(2014),$researched$the$key$factors$influencing$usage$intention$and$usage$
behaviour$of$wearable$technology.$They$applied$UTAUT$to$be$the$evaluating$model$of$
acceptance.$The$same$model$was$also$used$in$a$research$paper$investigating$the$factors$
associated$with$consumer$intentions$to$adopt$wearable$technology$in$healthcare,$where$it$was$
part$of$an$acceptance$model$consisting$of$several$integrated$models$and$theories$(Gao,$Li$and$
Luo,$2015).$Other$research$papers$have$also$proposed$new$models$based$on$TAM$and$other$
theories$to$gain$a$better$understanding$of$technology$acceptance$for$different$purposes$(Yi$et$al.,$
2006;$Kulviwat$et$al.,$2007).$$
To$gain$a$deeper$understanding$of$TAM,$UTAUT$and$factors$influencing$consumer$acceptance$
regarding$technology,$both$of$the$models$are$presented$in$one$section$each$in$this$chapter.$$
4.1.1 TAM/TAM2
The$technology$acceptance$model$was$first$introduced$in$1985$and$suggests$that$when$users$are$
presented$with$a$new$technology,$a$number$of$factors$influence$their$decision$on$how$and$when$
they$will$use$it.$The$model$was$developed$with$two$major$objectives$in$mind.$$
1) It$should$improve$the$understanding$of$user$acceptance$processed,$and$provide$new$
theoretical$insights$into$the$successful$design$and$implementation$of$information$
systems.$$
2) It$should$provide$the$theoretical$basis$for$a$“user$acceptance$testing”$methodology$to$
help$evaluate$proposed$new$systems.$$
16$$
The$model$in$its$original$form$includes$the$following$constructs:$perceived$usefulness,$perceived$
ease$of$use,$attitude$towards$using,$and$actual$use.$The$perceived$usefulness$and$perceived$ease$
of$use$will$affect$the$attitude$towards$using$the$technology,$which$in$turn$will$affect$if$the$
consumer$actually$will$use$the$system.$The$model$is$shown$in$Figure$9,$where$the$arrows$
represent$casual$relationships.$(Davis,$1986)$
$
Figure%9.%The%original%Technology%Acceptance%Model%(Davis,%1986).%%
Within$10$years$from$the$introduction,$the$model$became$established$as$robust$and$powerful$for$
predicting$user$acceptance.$Numerous$studies$found$that$TAM$consistently$explained$a$
significant$proportion$of$the$variance$in$usage$intention$and$behaviour.$Some$research$has$been$
done$to$model$the$determinants$of$perceived$ease$of$use,$but$according$to$Venkatesh$and$Davis$
(2000),$the$determinants$of$perceived$usefulness$were$rather$disregarded.$Hence,$they$proposed$
an$new$version$of$the$TAM.$$
The$goal$with$the$new$model,$TAM2,$was$to$include$additional$key$determinants$of$the$TAM’s$
perceived$usefulness$and$usage$intention$constructs,$and$to$understand$how$the$effects$of$these$
determinants$changed$with$increased$user$experience$over$time$with$the$target$system.$TAM2$
includes$two$additional$theoretical$constructs$to$better$understand$the$determinants$of$
perceived$usefulness,$and$they$are$listed$in$Table$6.$(Venkatesh$and$Davis,$2000)$
Table%6.%List%of%TAM2's%additional%constructs%and%their%determinants.%
CONSTRUCT% % DETERMINANTS%
• Subjective%norm%
Social%influence%processes% • Voluntariness%
• Image%
• Job%relevance%
• Output%quality%
Cognitive%instrumental%processes%
• Result%demonstrability%
• Perceived%ease%of%use%
17$$
The$first$construct$is$social$influence$processes,$i.e.$subjective$norm,$voluntariness$and$image.$
This$means$that$individuals$closely$related$to$the$consumers,$i.e.$friends$and$family,$can$affect$the$
perceived$usefulness$of$a$system.$The$second$construct$is$cognitive$instrumental$processes,$i.e.$
job$relevance,$output$quality,$result$demonstrability,$and$perceived$ease$of$use.$This$means$
consumers$will$be$affected$by$if$the$system$is$suitable$for$their$personal$and$professional$goals$
they$want$to$accomplish.$The$new$model,$TAM2,$is$shown$in$Figure$10.$
$
Figure%10.%TAM2,%an%extension%of%the%TAM%(Venkatesh%and%Davis,%2000).%%
4.1.2 UTAUT
The$Unified$Theory$of$Acceptance$and$Use$of$Technology$model$was$first$proposed$in$2003$with$
the$aim$to$provide$a$useful$tool$for$measuring$the$likelihood$of$success$for$new$technology$
introductions.$The$researches$that$introduced$the$model$argued$that$Information$Technology$
acceptance$research$had$generated$many$competing$models,$each$with$a$different$set$of$
acceptance$determinants,$why$a$unified$model$was$needed$(Venkatesh$et$al.,$2003).$$
The$process$for$coming$up$with$this$model$included$4$steps:$$
1) Reviewing$user$acceptance$literature$and$discussing$eight$prominent$models.$
2) Empirically$comparing$the$models$and$their$extensions.$
3) Formulating$a$unified$model$that$integrates$elements$across$all$eight$models.$
4) Empirically$validating$the$unified$model.$$
18$$
$
Figure%11.%UTAUT%(Venkatesh%et%al.,%2003).%
The$model$consists$of$four$constructs$that$play$significant$roles$as$direct$determinants$of$user$
acceptance$and$usage$behaviour:$$
• Performance%expectancy:$the$degree$to$which$an$individual$believes$that$using$the$system$
will$help$him$or$her$to$attain$gains$in$job$performance.$
• Effort%expectancy:$the$degree$of$ease$associated$with$the$use$of$the$system.$$
• Social%influence:$the$degree$to$which$an$individual$perceives$that$important$others$
believe$he$or$she$should$use$a$new$system.$$$
• Facilitating%conditions:$the$degree$to$which$an$individual$believes$that$an$organisational$
and$technical$infrastructure$exists$to$support$use$of$the$system.$
The$model$also$includes$four$key$moderators$that$moderate$some$or$all$of$the$constructs:$gender,$
age,$voluntariness$and$experience.$(Venkatesh$et$al.,$2003)$
4.2 Acceptance for smart watches
The$area$of$researching$smart$watches$and$other$wearable$devices$is$relatively$new$ground,$why$
there$is$difficult$to$find$specific$and$commonly$used$acceptance$models$for$this$technology.$
However,$one$of$the$first$research$papers$in$this$field,$which$attempts$to$predict$usage$of$smart$
watches,$is$written$by$Kim$and$Shin$(2014).$The$findings$from$their$research,$including$their$
extended$technology$acceptance$model$suitable$to$measure$consumer$acceptance$for$smart$
watches,$are$presented$below.$$
19$$
The$key$psychological$quality$factors$for$smart$watches$are$the$following:$affective%quality,$
relative%advantage,$mobility,$availability$and$subcultural%appeal.$The$research$suggests$that$the$
affective$quality$and$the$relative$advantage$of$smart$watches$are$associated$with$the$perceived$
usefulness,$while$the$mobility$and$availability$of$smart$watches$are$associated$with$the$perceived$
ease$of$use.$The$research$also$suggests$that$the$devices’$subcultural$appeal$will$affect$which$
attitude$consumers$will$have$towards$the$technology,$and$that$the$cost$will$affect$the$intention$to$
use$it.$
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Figure%12.%The%proposed%user%acceptance%model%for%smart%watches%(Kim%and%Shin,%2014).%
In$the$user$acceptance$model$for$smart$watches,$TAM$and$the$findings$from$the$paper$are$
integrated,$and$the$model’s$overall$explanatory$power$is$found$to$be$relatively$high:$80$%$of$the$
variance$in$user$attitude$and$81$%$in$intention$(Kim$and$Shin,$2014).$$
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20$$
5 Results
Based%on%the%second%part%of%the%literature%study,%as%well%as%the%data%from%the%qualitative%study,%a%few%
areas%have%been%identified%that%are%relevant%for%the%development%of%the%smart%watch%market.%The%
results%are%presented%in%the%three%subchapters:%“Smart%watch%usage”,%“Identified%trends”,%and%
“Challenges%for%future%development”.%%
5.1 Smart watch usage
5.1.1 Consumer motivations
Consumer$motivations$are$based$on$needs$or$goals,$i.e.$they$are$based$on$the$desire$to$satisfy$a$
need$or$to$reach$a$goal.$It$is$the$desire$that$motivates$consumers$to$take$certain$choices.$To$
understand$the$consumer$motivations$for$using$smart$watches,$a$series$of$needs$have$been$
identified$from$the$expert$interviews$and$all$of$the$constructs$from$the$models$on$consumer$
acceptance.$The$models$measure$the$likelihood$of$consumers$accepting$and$using$a$technology$
system,$and$therefore$the$different$constructs$can$also$be$explained$as$drivers$when$consumers$
actually$accept$to$use$a$technology.$$
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Figure%13.%Chart%of%identified%need%states%for%using%smart%watches.%
Personal identity
This$is$the$need$for$personal$expression.$It$is$the$desire$to$feel$unique,$to$not$be$part$of$a$
mainstream$crowd,$and$it$can$also$be$the$underlying$need$when$consumers$choose$to$use$
technology$products$that$are$considered$premium$products$or$cool$gadgets.$It$can$also$be$the$
underlying$need$when$consumers$use$the$beta$versions$of$products,$which$is$commonly$seen$in$
the$target$group$called$“early$adopters”.$The$need$for$personal$identity$is$also$characterised$by$
the$wish$to$modify$the$appearance$of$the$different$parts$on$the$smart$watch.$$
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Monitoring
This$need$can$be$described$as$the$desire$of$being$well$informed.$It$is$the$wish$for$having$constant$
access$to$knowledge$and$other$information,$and$also$to$continuously$stay$connected$with$what$
others$are$doing.$It$is$related$to$FoMO,$i.e.$“Fear$of$Missing$Out”$and$is$often$characterised$by$
consumers$using$the$smart$watch$to$always$stay$up$to$date$on$what$is$happening$around$them.$
The$need$for$monitoring$is$also$about$the$consumers$being$in$control$of$their$lives.$It$can$be$
characterised$by$a$desire$to$measure$the$body$in$different$ways$to$stay$in$control$of$health$and$
body$related$issues.$
Comfort
This$need$is$about$keeping$routines$and$habits$that$the$consumers$already$have,$as$well$as$to$
achieve$goals$with$minimal$effort.$The$consumers$appreciate$the$ergonomic$position$of$the$smart$
watch$and$that$the$transition$from$wearing$a$traditional$watch$to$wearing$a$smart$watch$is$
minimal.$The$need$for$comfort$is$also$characterised$by$the$perceived$usefulness$of$the$smart$
watch,$as$well$as$consumers$perceive$that$the$functionality$of$the$smart$watch$will$help$them$
reach$their$life$goals$easier.$$
5.1.2 Identified usage situations
In$the$previous$subchapter,$the$research$on$consumer$acceptance$was$analysed$in$combination$
with$the$data$from$the$expert$interviews$and$resulted$in$three$distinct$consumer$motivations$
based$on$three$needs,$explaining$why$consumers$use$smart$watches.$By$analysing$the$needs$in$
relation$to$the$data$from$the$expert$interviews,$three$usage$situations$for$smart$watches$have$
been$identified.$The$identified$usage$situations$and$the$related$needs$are$found$in$Table$7.$They$
are$also$further$explained$below.$$
Table%7.%The%identified%usage%situations%and%related%needs.%
USAGE%SITUATIONS% RELATED%NEEDS%
Extension%of%the%smartphone% Monitoring,%comfort%
Health%purposes% Monitoring,%comfort%
Personal%advantages% Personal%identity,%monitoring,%comfort%
Extension of the smartphone
Using$the$smart$watch$as$an$extension$of$the$smartphone$has$the$purpose$of$satisfying$the$
consumers$monitoring%and%comfort%needs.$Applications,$as$well$as$the$connection$to$the$Internet,$
are$transferred$from$the$smartphone$into$the$smart$watch$and$it$is$primary$used$to$be$informed$
of$what$is$happening$for$the$users$family,$friends,$network$and$the$outside$world.$Due$to$the$
22$$
instant$and$continuous$notifications$from$the$smart$watch,$consumers$become$more$informed$
and$it$also$helps$reducing$the$consumers’$feeling$of$missing$out$on$things.$The$beneficial$position$
of$the$smart$watch$also$makes$accessing$it$quick$and$easy,$in$comparison$to$picking$up$the$
smartphone$from$wherever$it$is$contained.$It$is$therefore$very$time$effective$and$comfortable$to$
get$notifications$and$perform$simple$interactions$with$the$smart$watch,$and$it$is$very$useful$for$
this$purpose.$$
Health purposes
This$usage$situation$is$also$connected$to$the$consumers$monitoring%and%comfort%needs.$The$
situation$is$characterised$by$consumers$achieving$personal$health$related$goals$by$using$smart$
watches$as$monitoring$assistants.$To$use$the$smart$watch$in$this$purpose$also$make$the$
consumers$feel$in$control$of$their$own$body$by$encouraging$exercise$and$in$the$long$term$
prevent$health$related$diseases.$The$smart$watch$has$builtTin$sensors$that$among$other$things$
can$measure$pulse$and$movement.$This$is$useful$in$health$applications,$which$consumers$use$to$
collect$data$and$statistics$over$when$and$how$they$exercise,$in$order$to$keep$track$of$their$health.$$$
Personal advantages
This$is$perhaps$the$most$nonTspecific$usage$situation,$but$it$relates$to$all$of$the$aboveTmentioned$
needs:$personal%identity,$monitoring$and$comfort.$This$situation$is$about$when$smart$watches$
help$consumers$to$achieve$something$that$cannot$be$achieved$by$any$other$product.$It$is$about$
satisfying$consumers’$individual$values.$This$type$of$usage$situations,$which$were$mentioned$
during$the$interviews,$were$for$example$when$the$smart$watch$is$substituting$different$keys,$or$
when$it$is$used$only$as$a$fun$gadget$(Interview$B;$Interview$D).$During$one$of$the$interviews,$this$
situation$was$also$referred$to,$as$“It%is%the%little%things%that%emerge%when%testing%it%for%two%weeks,%
and%then%realising%its%potential.%It%is%simply%the%personal%experience.”$(Interview$A).$$
5.2 Identified trends
Based$on$the$expert$interviews,$a$few$trends$that$are$relevant$for$the$future$development$of$the$
smart$watch$market$have$been$identified.$The$trends$are$categorised$into$technology$and$
consumer$behaviour$trends$and$will$be$described$below.$To$create$a$better$overview$of$the$
identified$trends,$they$are$also$summarised$in$Table$8.$$
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