How does Price and Familiarity of a Smartwatch Brand Affect Consumers’ Perception of Quality, Risk, Value for Money, Brand Image and Purchase Intention? A Value-Based View
In a world where infusion of technology into everyday life is no more a fantasy, but a reality, smartwatches are becoming a ubiquitous part of consumers’ attire serving different functions for different aspects of life from work to workout. Since smartwatches have been identified by prior research as being both a technology and fashion related product, research in this arena of consumption has garnered increasing attention. This study tests the impact of price (low, medium and high) and familiarity of brand (well-known and unknown) on consumer perception of risk, quality, value for money, brand image and purchase intention of these smartwatches. The findings suggest that perception of quality, value for money and purchase intention changed with change in price points for both well-known and unknown brands. Price affects each of the five variables differently when comparing their effects in well-known and unknown brands. Discussion and implication of results are provided.