A large electronics manufacturer wishes to issue a new “wearable.” The company wants to design it such that it will make money with the purchase of the unit, of course, but that it will also make money as its customers use it. In addition, the company would like to capture data about the customers' profiles, in terms of their activities, spending patterns, etc.

Wearables vary in many ways, and initially, the brand management team proposed to issue a design that looked like a small smartphone, to be worn on the user's wrist. Given the still relative novelty of such units, they thought they'd charge on the high end, about $100, maybe even instituting a small annual fee. To get supplementary data, they thought they'd issue periodic surveys, about once a quarter, via the unit or via e-mail.

The youngest marketer, newest to the team asked, “Well, that's good for us, but how is it attractive to our customers? Why would they want this unit—when there are plenty of others out there?” One old manager shot out a withering look. Well, that'll teach the young person to speak up in the meeting. But the senior-most manager spoke up and said, “Well, you're right, we're only looking at it from our point of view. What would this wearable look like that our customers would want—and that can be profitable to us?”

What would help these marketers? What steps could they take to design a wearable that would be both optimally appealing to its customers (and perhaps attract new customers), as well as optimally profitable?

A wearable could vary on many parameters, such as whether it would be worn on the wrist like a watch, or as an earbud like music headphones or smartphone speakers, or as an add-on unit to glasses. Early prototypes suggested that while earbuds or eyeglass designs were good at capturing GPS, they weren't as versatile in supporting multiple apps, and they weren't as precise as exercise (step) counters (for example, the head didn't move as distinctly as the user's wrist while walking). That is what led the brand managers to ask the designers to create a wrist-wearable.

Even so, there were many possibilities: Should the unit look like a small smartphone or like a nice classic wristwatch in design? Should the apps be accessed by touch only or should the apps also be voice-activated? Should there be an annual licensing fee? Should they allow co-branding with affiliations (e.g., a professional sports team or one's college alma mater)? Which features should be recommended as the unit is designed?

This electronics firm has little experience in marketing research as well, so the older managers were uncertain as to how to proceed. One mentioned a focus group, another suggested an ethnography, and a third mentioned surveys. The information that is sought, as well as the method by which the information would be obtained, are both to be determined. Naturally, the company wants to roll out the new wearable as soon as possible, so while the research project could be well-funded, they would face time pressure and would have to be judicious in their choice of research avenues.

Case Discussion Questions

Are the old managers right? A lot of other wearables focus on counting steps or enabling apps. Is that what this group should design, so as to be seen as a legitimate competitor and not confuse customers, or should they design something different to be seen as innovative?

Are the people in the room a good proxy for their customers? Are the young managers a better proxy than the older managers?

What additional information would be helpful to strengthen a recommendation?

How would that information best be obtained?

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