MINI-CASE How to Design an Attractive Wearable Redux Recall from Chapter 1, an e
ID: 391648 • Letter: M
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MINI-CASE How to Design an Attractive Wearable Redux Recall from Chapter 1, an electronics firm was contemplating what attributes would appeal to its customers if it were to issue a new wearable. The features that the brand team focused on, and the dummy variable codes, were these small smartphone(1stwatch (0) touch (1) s0 (1) Design appearance: voice (0) $20 (0) no (0) .Apps activated by Annual Fee: .Co-branding with teams yes (1) They ran a conjoint study on every 10th customer who came into one of their retailer partner's stores until they had a sample of 100, The 4 factors listed above result in 16 combinations (2 × 2 × 2 × 2 = 16). Each person rated the 16 possibilities from 1 (would not consider buying such a wearable) to 100 (would definitely purchase such a unit). The regression results follow: Wearable attractiveness 0.6 design 0.2 activation 0.9 fee0.1 co-branding. Case Discussion Questions 1. What features matter to customers, and which do not? 2. What would the optimal wearable look like? If you were to cluster the customers first, and then run a separate conjoint on each cluster, do you think the results would vary? Could the company create different wearables to satisfy multiple segments? 3. Are you worried at all about the sample-are customers who visit the retailer representative of those who might purchase online? 4. What features do you wish the company had included that might appeal to customers more?Explanation / Answer
1. Among the features stated, the customer would focus on design and fee.
As we can see from the equation itself, the fee is the primary factor when it comes to decision making. 0.9 means that out of 100 test customers, 90 will go for small smartphone kind of design primarily because of $0 charges.
coming onto 2nd factor, Design, 60 customers are interested in smartphone arrangement, but it could be changed. We can launch a wristwatch which has features of the smartphone and allows to customize the dials.
Lower deciding factors are Activated apps and co-branding. As a customer is looking for a wristwatch here, he would be going to least bother about what co-branding the firm is preferring. Next, is activated apps, unless you are not restricting their own apps in the device, they will be Ok with whatever pre-installed apps you are offering.
2. Optimal wearable is somewhat looking like a wristband which has basic functioning features of the smartphone with advanced features related to fitness and mobile device connectivity.
Yes, results would vary if we cluster the customers first and then run a separate conjoint, it would give us an idea of better segment targeting and product positioning.
As we can see from the equation stated, fee the highest deciding factor. We can create different wearables on price segmentation and accordingly features can be managed.
3. Wristwatch buying customers are majorly offline buyers, even if they do get the deals online but a wristwatch is something which is personal to people and they do visit the offline store to make the final purchase.
4. Additional which could appeal to customers more is:
a. customizable dials
b. activity tracking (steps/calories)
c. Bluetooth connectivity
d. heart-rate monitor
e. pedometer
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