Exploring Determinants of Smartwatch Diffusion Using a Value Adoption Model

Contrary to predictions, the market diffusion of smartwatch is proceeding slowly. Smartwatch companies should pursue new strategies to overcome this so-called chasm; however, little is known about smartwatch attributes valuable for target consumers. This study investigates beneficial and sacrificial features influencing overall perceived value of smartwatch, which in turn affects usage intention, and considers moderating effect of personal innovativeness. A total of 323 usable data were analysed using partial least squares. The results show that two benefits (utilitarian and hedonic) and three sacrifices (usability, performance, and finance) significantly impact on usage intention via perceived value. A significant effect of personal innovativeness as a moderator is also observed. Interestingly, the influence of social benefits on perceived value is not supported, which means strengthening image improvement strategies might not be appropriate for the diffusion. In order to overcome the chasm, suitable strategies should be used, and focusing on consumers who are highly innovative are strongly recommended.