A behavioral economic analysis of smartwatches using internet‐based hypothetical demand

Hypothetical purchase tasks (HPTs) and operant demand analyses provide a promising methodology to determine how consumers value new products. This study used a demand analysis to determine value differences between Apple or Fitbit smartwatches and those same watches with hypothetical “added‐value” features. There were no differences between baseline smartwatches and those with additional features. However, participants who owned Apple products had significantly higher demand for Apple smartwatches, while this difference did not exist for Fitbit users. HPTs and demand analyses were sensitive enough to determine differences related to brand loyalty, but did not detect differences in added‐value of hypothetical features.