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The Apple Watch at USC: An analysis of perception Fall 2014 Kate Glazko MKT 402 [email protected]

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The Apple Watch at USC: An analysis of perception Fall 2014

Kate Glazko MKT 402

[email protected]

Table of Contents

I. Executive Summary .............................................. 2

II. Introduction .......................................................... 3

III. Research Methods ................................................. 7

IV. Results .................................................................. 13

V. Limitations ........................................................... 19

VI. Conclusion and Recommendations .................... 20

VII. Appendix A: Relevant Links ............................... 22

VIII. Appendix B: Complete Distributed Apple Watch Survey ....................................................... 22

IX. Appendix C: Statistical Test Results ................... 25

X. Works Cited ......................................................... 28

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 2

Executive Summary

USC students were asked to participate in a survey regarding the upcoming Apple Watch.

Individuals were selected in accordance to a determined quota intended to represent the

overall USC population. Individuals were asked questions regarding their existing usage of

Apple products, the features of the Apple Watch that they considered to be important,

preferences regarding the various Apple Watch lines, and their likelihood in purchasing an

Apple Watch. A total of 38 valid responses were received from a total of 76 attempts to

distribute the surveys to USC students.

The results from the survey are summarized below:

• The majority of students surveyed expressed a likeliness in purchasing the Apple Watch

after its spring 2015 release.

• The most popular line of Apple Watch for USC students surveyed was the Apple

Watch Sport.

• The most important features of the Apple Watch was the ability to send/receive

messages and phone calls and the fitness tracking functionality.

• Existing ownership and active use of an Apple product did not show to be related to

the likeliness of a student to purchase an Apple Watch.

Note: The complete survey questionnaire is included in Appendix B for reference.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 3

Introduction

Background Information Wearables are a quickly evolving new category within the personal technology

industry. In 2014, some 22% of consumers reported purchasing a wearable electronic

device, a noticeable contrast from the historically low ownership of wearable electronics

(Mintel 2014). Stores such as Best Buy and Target have even dedicated special floor spaces

to house electronic wearables such as the Nike Fuelband, Jawbone UP, and Fitbit. The

demand for fitness bands and wearables has begun to fuel a booming industry of $238

million dollars per year (NPD Group 2014). Despite the growth, a concrete prototype for

wearables as a category has not yet been defined. Contenders such as the Pebble, a smart

watch that allows for the relay of text messages and phone calls on the device (Gartner

2014), and Fitbit, a device that tracks your steps and sleeping patterns, both have

developed a steadily growing following (Analyst 2014). However, both devices are

committed to their respective functionality: Pebble, a communication device, and Fitbit, a

fitness device. No company had successfully previously attempted to achieve maximum

functionality within a single wearable device. And then in October 2014, Apple announced

the release of a new product: the Apple Watch.

When Apple announced their new wearable device, many speculated that the Apple

watch could take the lead as the prototype of the wearables category as Apple promised to

combine both the communications aspects and health functionality into one device sold in

three distinctive appearances (ABI Research 2014). The device would be compatible with

the existing iOS ecosystem, allowing for functionality such as being able to view and

respond to text messages and phone calls on the Apple Watch device and sharing collected

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 4

health data such as heart rate and number of steps walked with a companion iPhone app.

The Apple Watch also brings features not currently integrated into the existing competitors

Fitbit and Pebble- such as a full-color touch screen allowing for more robust interaction

with the device, mobile payments capability through Apple Pay, and a walkie-talkie/voice

messaging functionality (Apple 2014).

Market predictions for the Apple Watch show that an expected number of 30

million to 50 million units to be sold within a twelve month period of the Spring 2015

release (JP Morgan 2014).

The Apple Watch is set to debut in three distinct lines: the Watch, the Sport, and

the Edition. While all three of the watches possess the same internal functionality, their

exterior designs vary. For instance, the Sport boasts a durable, anodized silver exterior with

a high-performance fluoroelastomer wrist band, while the Edition sports watches crafted

from 18-K gold with a variety of options bands. These aesthetic differences serve to cater

individuals who live a variety of lifestyles and intend to use their bands for various reasons-

whether it be to express their fashionable side, or to keep track of their work out in the

gym.

Apple has had a historically high rate of penetration at the University of Southern

California. Figures released by the Apple Campus Rep from 2012-2013 showed that nearly

82% of the student body owned an Apple personal computer instead of a P.C. And while

the exact figure is not released, more than 50% of the students on campus own an iPhone

4 or higher (Campus Rep 2013). The USC Bookstore also has a partnership with Apple,

which includes two dedicated floor spaces for displaying Apple products. The USC

Bookstore carries Apple computers, iPads, iPods, and accessories and does not currently

carry phones despite exhibited demand. It is not currently known whether the Apple

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 5

Watch will be carried at the USC Bookstore, but it is known that product endorsement by

the USC Bookstore significantly increases the sales of Apple products at USC (USC

Bookstores 2013).

Research Objectives This research investigates the attitudes and perceptions of the Apple Watch

amongst students at the University of Southern California. Students at the University of

Southern California have historically been proven to embrace Apple technologies, with

82% of computer-owning USC students opting to own an Apple computer. Therefore, the

investigation of attitudes and perceptions of the Apple Watch at USC may vary from that

of other consumers- however, USC students represent a wide range of demographics with

more than 60% of USC students receiving some kind of financial aid, and the school

having the second largest international student population of U.S. universities.

As the Apple Watch is a relatively new product, and Apple does not publish results

of their marketing research, there is currently very little information regarding the

perceptions and attitudes of individuals towards the Apple Watch- and certainly no

information regarding student attitudes towards the Apple Watch at USC. The purpose of

this research report is to:

• Explore the overall perceptions and attitudes of USC students towards the Apple

Watch.

• Attempt to determine which of the three different lines of Apple Watches is most

appealing to USC students.

• Attempt to determine which features of the Apple Watch (overall and per line) are

the most appealing to USC students.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 6

If the prior is examined, it will provide some insights as to the attitudes and

perceptions surrounding the device and allow us to draw insights on the device’s relative

success on the USC campus. While USC students do not represent the entire customer

base for the Apple Watch, they have proven to be loyal to Apple products with Apple

holding a majority share of personal computing devices at USC, and they fall within the

trend-setting millenials demographic which Apple continuously targets with their marketing

campaigns.

Hypothesis It is believed that since USC students have historically embraced Apple products,

they will have a positive perception of the Apple Watch and will have some purchasing

interest. It is hypothesized that a majority of students surveyed will be owners and active

users of Apple products, and because of this, will be more likely to be interested in

purchasing the Apple Watch in the future.

As penetration for fitness bands has been rising significantly in the last years, it is

hypothesized that USC students will be drawn to the Sport line of Apple watches due to its

positioning as a fitness product.

It is also hypothesized that the most important feature of the Apple Watch to USC

students will be the ability to integrate the Apple Watch with their existing iOS devices, as

well as the ultimate “coolness factor” that Apple devices possess. These features are

expected to be more important than other features including fitness tracking, call/message

receiving and responding, innovative hardware, and aesthetic appearance.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 7

Research Methods

Research Design The design of the research study is classified as descriptive research. Surveys are

distributed to USC students to determine interest in the Apple Watch, interest in particular

functionalities and features of the Apple Watch, and interest in a particular line of the

Apple Watch. The descriptive research design is appropriate because it aligns with the

research objectives for this project (please see Introduction: Research Objectives) and

allows us to answer them through data collection and survey.

The descriptive design type for this study is a cross-sectional study. Since the

research objectives include being able to catch the existing attitudes that USC students

have towards the Apple Watch, the cross-sectional study was sufficient because it sampled

the population of USC students once to collect their attitudes and opinions. It would not

be appropriate to use a longitudinal study in this case as time to complete the research (by

December 16th, 2014) is not sufficient, and the upcoming release of the Apple Watch in

spring 2014 will provide information in itself as to whether students at USC have chosen to

purchase the Apple Watch or not.

Survey Design In order to address the research objectives, the survey was designed to be

distributed to the average USC student. Questions about attending the University of

Southern California were not included as a pre-requisite to being given the survey was

being an active and attending USC student. The purpose of the survey was to identify

students and their respective demographics (Male/Female, Race, Graduate

student/Undergraduate student) and determine the holistic attitudes of USC students

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 8

towards the Apple Watch. The survey contained nine questions and was broken into the

following categories:

• Introduction and Purpose: A statement of intent and background for the survey.

• Warm-up questions: Existing Apple products usage, Apple Watch awareness.

• Apple Watch Features questions: Rank and order Apple Watch features.

• Apple Watch Categories questions: Reveal attitudes towards the three Apple Watch

lines.

• Apple Watch Desire to Purchase: Reveal desire to purchase the Apple Watch, and

which line.

• Apple Watch Likeliness to Purchase: Reveal actual likeliness to purchase Apple

watch.

• Demographics: Race, Gender, Graduate/Undergraduate.

The entire survey can be viewed in Appendix B: The Complete Distributed Apple Watch

Survey.

Sampling Plan The survey was distributed as an in-person survey due to a large competition of

participation from other surveys and studies being distributed through social media at the

same time. The plan was to adequately capture the average distribution of the population

of USC students, including both undergraduate and graduate students. In order to

accomplish this, it was planned to distribute the surveys to a variety of student housing

known for housing both undergraduate and graduate students. The La Sorbonne housing

was used to sample graduate students, and Parkside Apartments which houses students in

all different years of undergraduate studies was used to sample undergraduates.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 9

A judgment sampling plan was used when deciding how to distribute the survey. In

order to be an accurate representation of the USC student population, the demographics of

the students surveyed needed to align with those of the general USC population:

• Gender: Female 50%, Male 50%

• Race: Caucasian 37%, Asian 23%, International 13%, Hispanic 13%, African

American 4%, Other 9%.

• Study: Undergraduate 44%, Graduate 54%

Sampling Procedure In order to implement the judgment sampling plan, a modified convenience sample

approach was taken where individuals entering the La Sorbonne and Parkside Apartments

dormitories would be approached as they entered the building and requested to take a

paper survey. Utilizing a judgment-convenience approach allowed for the survey

demographics to resemble the school demographics. The drawback with such an approach

is that reaching out to individuals who are in minority populations is much more difficult,

as there is fewer of them and thus less of an opportunity to receive a response. Therefore,

quotas were specified that required a certain amount of individuals to be from a certain

demographic. If an individual was not encountered during the survey distribution phase,

they would be reached out to later through a convenience survey. Such an approach took

place to ensure a response from the undergraduate, male, African-American segment.

The goal for the survey was to question 76 individuals, of which:

• 38 should be female and 38 should be male.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 10

• 28 Caucasian, 18 Asian, 10 International, 10 Hispanic, 3 African American, and 7

Other.

• 33 Undergraduate students, 43 Graduate students.

While it could not be guaranteed that these quotas would be met precisely due to the

potential for human error while sampling, the quotas provided the surveying team with

estimates of who exactly they should be distributing the survey to.

Data Collection The distribution of the surveys took place on December 2nd, 2014 and December 3rd,

2014 at 7:30 p.m., an hour at which many students were returning from or leaving to go get

dinner. This time was chosen as it was likely to result in a high amount of traffic in and out

of the selected housing options. Also, as it was in the evening time of the day, less students

were expected to be heading to class and thus were more likely to be of relaxed and

agreeable demeanor. Agreeable and relaxed subjects would be more likely to agree to

participate in the survey.

In order to perform the survey, clipboards with the survey and a writing utensil were

distributed to individuals who passed through the La Sorbonne and Parkside Apartments

student housing. Depending on the answers to certain questions, an iPad display

information about the Apple Watch from the Apple website would be distributed to survey

participators as necessary (Please see Appendix A: Relevant Links to view the distributed

materials). As mentioned in the previous section, the surveying team used judgment in

order to decide who to distribute a survey to. Survey participants were informed that the

20-question survey should not take more than five minutes and that it was critical that all

questions were answered during the survey. After the completion of the surveys,

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 11

individuals were thanked for their participation, and the paper surveys were collected and

saved for data analysis.

Measures An earlier discussion of the survey design was done in the sections above, however,

this section will further examine the types of questions asked, and the constructs that these

items intended to measure. Please note that a copy of the survey used has been included in

Appendix B: The Complete Distributed Apple Watch Survey.

1. Question: “Do you currently own an Apple product?” The question is a yes-or-no

question used to establish whether the individual is a current Apple owner.

2. Question: “How often do use Apple products?” The question then provides

intervals starting from “Never” to “Every day” that the individual is to select; this

question establishes what kind how active of a user the individual considers

themselves to be.

3. Question: “Are you aware of an upcoming Apple product called the Apple Watch?”

The question is a yes-or-no question used to establish familiarity with the Apple

Watch. If the respondent stated ‘No’, they would be handed an iPad with relevant

information relating to the Apple Watch.

4. Question: “Based on what you know about the Apple Watch, please assign a

number to each of the following features that represents its importance to you. All

of the numbers assigned to the features should add up to 100. If a feature does not

have any importance to you, please assign a 0 to the feature.” This question

analyzes the importance of various features of the Apple Watch by requiring the

individual to assign a value out of 100, with the sum of all the values to be equal to

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 12

100. In data analysis, this question provided a way to determine whether some

features were more important than others.

5. Question: “Are you familiar with the three different Apple watches lines: The

Watch, The Sport, and The Element?” This question is a yes-or-no question used

to establish familiarity with the Apple Watch. If the respondent stated ‘No’, they

would be handed an iPad with relevant information relating to the three different

lines of the Apple Watch.

6. Question: “Based on what you know about the three different Apple watch lines,

which line are you most likely to consider purchasing if you were to purchase an

Apple Watch?” This question simply requires the individual to select one of the

three different types of Apple Watches that they would consider purchasing.

7. Question: “How likely are you to actually purchase an Apple Watch when it

becomes available for purchase?” The question provides intervals from “Not Likely”

to “Very likely” that the individual is able to select; this question helps to establish

intent of purchase for individuals.

8. Question: “Please select your gender.” This question provides the options “Male”,

“Female”, and “Other”. Some USC students do not conform the existing gender

binary, and providing them with an “Other” option would ensure that the

respondents felt comfortable enough to complete the survey.

9. Question: “Please select a race.” This question provides the list of races specified in

the USC demographics section, and requires students to select one. As “Other” is

an option, individuals with mixed races or unlisted races can feel comfortable when

selecting a choice.

10. Question: “Please select a course of study.” This question allows a student to

express whether they are an undergraduate or a graduate student.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 13

Results

Initial Results Discussion (Pre-Data Analysis) Of the desired 76 participants, only 38 responses were collected and considered to

be fully usable. The respondents included 19 males and 19 females. There were 22 graduate

students and 16 undergraduate students. The racial distribution sampled included 14

Caucasians, 8 Asians, 5 International, 5 Hispanic, 2 African American, and 3 students

designated as other. Such a distribution follows a similar breakdown to the existing USC

Demographics figures, and thus makes it more likely that the sample served as an accurate

representation of the USC population.

The first item examined was whether or not individuals owned an Apple device.

No statistical analysis was done with this question; rather it was compared to the existing

figure of Apple computer ownership at USC to determine whether the survey had

accurately captured Apple ownership at USC. Of the 38 individuals questioned, 36

individuals owned Apple products. This figure, 94% ownership, seemed to be consistent

with the existing estimate that 82% of USC computer-owning students own a Mac- as

students also may own iPads, iPhones, and iPods in addition to or instead of a Mac

computer.

The second item helped to identify active Apple users. Of those surveyed, the

results were as follows:

• 28/38 of Apple owners identified themselves as active Apple users (using Apple

devices every day or every week). (73%)

• 6/38 were occasional users (every month). (16%)

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 14

• 2/38 were rare users (every year). (5%)

• 2/38 had stated that they never use Apple devices. (5%)

The third item revealed that 34 out of the 38 individuals questioned were familiar

with the Apple Watch. That means that only four individuals were given the supplementary

materials displayed on the iPad during this survey collection, and that the majority of the

survey takers were well-informed about the upcoming Apple Watch.

The fourth item asked users to give a rating to the provided traits of the Apple

Watch based on what individuals considered to be important, with all of the cumulative

ratings adding up to 100. The features included in the question were: Text Message/Call

View and Reply, Fitness Tracking (Heart Rate and Pedometer), iOS ecosystem integration,

Innovative hardware (Waterproof, touch screen, microphone), Physical Appearance of the

device (design aesthetic), and the “Coolness Factor”. The mean importance was the

following:

• Text Message/Call View and Reply: 36/100.

• Fitness Tracking: 30/100.

• iOS Ecosystem Integration: 12/100.

• Innovative hardware: 12/100.

• Physical Appearance: 10/100.

• “Coolness Factor”: 0/100.

The fifth item on the questionnaire asked whether the individual was aware of the

three different of Apple watches available. 21/38 students surveyed were aware of the

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 15

three separate product lines. The remaining 17 students were given an iPad with content

regarding the three different lines of Apple watches to read before continuing the survey.

The sixth item on the survey asked individuals to identify which Apple Watch type

they would purchase, if they were to consider purchasing an Apple Watch. The raw results

were as follows:

• Apple Watch: 8/38 (21%)

• Apple Watch Sport: 21/38 (55%)

• Apple Watch Element: 9/38 (24%)

The seventh item on the survey asked individuals to choose their likeliness to purchase

the Apple Watch upon the Apple Watch’s release in the spring of 2015. Of those surveyed,

the raw results were as follows:

• Very likely: 14/38 (37%)

• Somewhat likely: 10/38 (26%)

• Unsure: 5/38 (13%)

• Somewhat unlikely: 7/38 (18%)

• Very unlikely: 1/38 (3%)

The remaining questions in the survey, 8-10, were used to verify the demographics of

sample to ensure that they were representative of the overall USC population.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 16

Statistical Tests Statistical tests were performed to determine the following:

• A test to determine whether the features’ importance varied at a 5% significance

level from the assumption that all of the features are equally important (Chi Square

Goodness of Fit). An expected value of 16.666 (100/6) was used for each of the

features, and the degrees of freedom for the test was 37 (n-1, where n is the size of

the sample). The results of the Chi Square test (See Figure 1 in Appendix C:

Statistical Tests Results for more details) showed a chi-square value of 55.04 and a

p-value of < 0.001. The results of this test show that one can reject the null

hypothesis that all features of the Apple Watch are equally important to USC

students at a 5% significance level.

• A test to determine whether the preferences of USC Apple watch lines varied at a

5% significance level from the assumption that all of the Apple watch lines would

be equally preferred by USC students (Chi Square Goodness of Fit). An expected

value of 12.667 (38/3) was used as an expected value for each of the Apple watch

lines, and the degrees of freedom for the test was 37 (n-1, where n is the size of the

sample). The results of the Chi Square test (See Figure 2 in Appendix C: Statistical

Test Results for more details) showed a chi-square value of 8.26 and a p-value of

0.0161. The results of this test show that one can reject the hypothesis that all of

the Apple Watch lines are equally preferred by USC students at a 5% significance

level.

• A test to determine whether being an active user of an existing Apple device was

related to an individual being more likely to want to purchase an Apple Watch (Chi

Square Test for Independence) at a 5% significance level. The two categorical

variables compared consisted of whether an individual was an active user of an

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 17

Apple device (active Apple users in Question 2) versus non-active users of Apple

devices (Occasional, rare, and non-Apple users in Question 2) and whether an

individual was likely to purchase an Apple Watch device (Very likely and somewhat

likely in Question 7) versus not likely (Unsure, somewhat unlikely, very unlikely in

Question 7). The results of the Chi Square 2x2 test (See Figure 3 in Appendix C:

Statistical Test Results for a complete graphic illustrating the test) yielded a chi-

square value of 0.054 and a p-value of 0.816. Such a p-value is above the 5%

significance level, and thus indicates that one cannot reject the null hypothesis that

being an active user of an Apple device is not related to an individual being more

likely to want to purchase an Apple device.

Analysis

• 63% of the students surveyed claimed to be likely to purchase an Apple Watch

when it is released. This is a relatively high figure seeing as no existing models of

the Apple Watch have been released to Apple Stores, making such a decision to

purchase be based purely on existing information from Apple.

• 55% of students would be most likely to purchase the Apple Watch Sport, 24% are

likely to purchase the Apple Watch Element, and 21% are likely to purchase the

Apple Watch Sport. This does align with the hypothesis that USC students would

be most likely to purchase the Apple Watch Sport.

• The most important features of the Apple Watch were Text Messages/Call

view/reply with a mean of 36/100, and Fitness tracking with a mean of 30/100

importance. This does not align with the hypothesized idea that integration with

iOS and the “coolness factor” would be the most important features of the Apple

Watch to USC students.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 18

• A test to determine whether actively using an existing Apple product was related to

the likeliness to purchase an Apple watch in a future did not show any significance

at the 5% level, thus no relationship between owning an existing Apple product

and likeliness to purchase an Apple watch could be established. This defies the

conventional rationale that brand loyalty plays a factor in determining whether an

individual will decide to buy a product by the same company or not.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 19

Limitations

• The team size of the survey team was too small, and could only survey two

locations for the research. Therefore, the sample resulted in being smaller than

desired, only 38 individuals were interviewed instead of the desired 76.

• Online survey distribution was attempted initially, but failed, due to the survey

team’s lack of network. Less than 20 individuals volunteered to do the online

survey, and the individuals who volunteered to do the online survey did not

represent USC demographics accurately.

• Not all of the individuals surveyed were aware of the Apple Watch, and therefore

the previously described method of showing survey takers an iPad with

information regarding the Apple Watch was implemented. Introducing new

information to survey takers may have led to some introduced bias.

• Only one version of the survey was distributed, so any bias that may have been

introduced due to the order and structure of the survey was not eliminated.

• Statistical analysis did not go into the depth that it could have. Demographic

information including gender, race, and standing in school could have been

analyzed to determine whether they played a significant role in determining an

individual’s attitudes towards the Apple Watch. The size of the research team was

not large enough to accommodate this kind of analysis- additional manpower

would’ve allowed for more in-depth statistical analysis to occur.

• Sampling was not random. Unfortunately, the timeline of the project and the

limited ability for the team to receive responses meant that not enough responses

were collected to implement randomization.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 20

Conclusion and Recommendations

The study done on the Apple Watch at USC provided results that showed potential

for student interest in purchasing the Apple Watch, revealed the students’ perceived most

important features of the Apple Watch, and provided information on what line of the

Apple Watch students were most interested in purchasing. Like the hypothesis, the study

showed that the most preferred Apple Watch line for students was the Apple Watch Sport.

The hypothesis was wrong however about what the most important features of the Apple

Watch were for students, with the predicted iOS integration and coolness factor actually

being some of the least important features. The ability to receive and respond to text

messages and phone calls as well as the fitness functionality of the Apple Watch actually

proved to be the most important features. Surprisingly, the assumption that actively using

existing Apple devices would make students more likely to purchase an Apple Watch was

not supported by statistical tests. The overall perception of the Apple Watch based on the

existing sample appeared to be positive, with 63% of surveyed individuals claiming that

they were likely to purchase an Apple Watch,

In order to expand the conclusions within this survey to the general USC student

population, a secondary distribution of the survey with a larger team and a greater coverage

of USC housing areas would provide a larger sample, and a larger sample would likely

provide more accurate insights towards the general USC population. While the

demographics of this survey matched that of the overall USC demographics, important

factors such as socioeconomic status, school discipline, lifestyle, and more could have been

overlooked by only sampling two distinct dorm areas.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 21

Another area where this research could be expanded on would be to perform

further statistical tests on the existing data by demographic to determine what kinds of

impact an individual’s race, gender, and course of study has on an individual’s preferences

towards the Apple Watch.

The design of this study could have been performed as a longitudinal study if the

research objectives were modified to track student perceptions of the Apple Watch prior to

and after the release of the Apple Watch in spring 2015. Collecting information regarding

individuals’ preferences and desires towards a product could provide valuable information

to a company about how effective their marketing is at targeting various demographics

before a physical product exists, and how preferences change after a physical product exists.

A longitudinal study would allow a closer look at perceptions and expectations of

individuals regarding the Apple Watch- and whether or not those expectations were

fulfilled.

In conclusion, while the study performed provided adequate results both refuting

and supporting the hypothesis and demonstrating an overall positive perception of the

Apple Watch, there are many opportunities for follow-up and improvement regarding the

Apple Watch at USC. The topic was one that the students were interested in, and willingly

contributed time to. Due to the large nature of the USC student body, it is recommended

that further research be conducted with a larger team due to the difficulty of a small team

attempting to collect data to represent the population of USC students. The data collected

in this study can be useful for further analysis regarding to various sectors of the USC

population and their attitudes towards the Apple Watch as well.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 22

Appendix A: Relevant Links

Apple Watch Overview: http://www.apple.com/watch/

• Watch: http://www.apple.com/watch/apple-watch/

• Watch Sport: http://www.apple.com/watch/apple-watch-sport/

• Watch Edition: http://www.apple.com/watch/apple-watch-edition/

Appendix B: Complete Distributed Apple Watch

Survey

Apple Watch USC Student Survey We are conducting a survey to determine attitudes and perceptions of USC students

towards the Apple Watch. We thank you for taking the time and effort to complete this

survey.

Please complete every question of the survey, and follow the instructions carefully. This

survey should not take you more than 5 minutes to complete.

1. Do you currently own an Apple device?

☐ Yes ☐ No

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 23

2. How often do you use Apple products? (Please choose only one)

☐ Every day ☐ Every week ☐ Every month

☐ Every year or less ☐ Never

3. Are you aware of an upcoming Apple product called the Apple

Watch?

☐ Yes (Continue the

survery)

☐ No (Please notify

survey

administrator

before continuing)

4. Based on your existing knowledge of the Apple Watch, please

assign a value out of 100 to each feature below. Make sure that

the total sum allocated is not greater than 100. If a feature has no

importance, please assign a 0.

_____ Text Messaging and Voice View and Response.

_____ Innovative hardware.

_____ Fitness tracker capabilities.

_____ “Coolness Factor”.

_____ Integration with the iOS ecosystem.

_____ Aesthetic design and appearance of watch..

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 24

5. Are you familiar with the three different Apple watches lines: The

Watch, The Sport, and The Element?

☐ Yes (Please

continue the

survey).

☐ No (Please notify

survey

administrator

before

continuing).

6. Based on what you know about the three different Apple watch

lines, which line are you most likely to consider purchasing if you

were to purchase an Apple Watch?

7. How likely are you to actually purchase an Apple Watch when it

becomes available for purchase?

☐ Very likely ☐ Somewhat likely ☐ Unsure

☐ Somewhat unlikely ☐ Very unlikely

8. Please select your gender.

☐ Male ☐ Female

☐ Other

☐ Apple Watch. ☐ Apple Watch

Sport.

☐ Apple Watch

Edition.

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 25

9. Please select your race.

African American ☐

Asian ☐

Caucasian ☐

Hispanic ☐

International ☐

Other ☐

10. Please select your course of study.

☐ Undergraduate ☐ Graduate

Appendix C: Statistical Test Results

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 26

Figure 1: Chi Square Test for Goodness of Fit for Apple Watch features

Figure 2: Chi Square Test for Goodness for the three Apple Watch lines

Figure 3:

Chi

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 27

Square 2x2 Test for Independence for Active Use of Apple products in relation to

likeliness of purchasing an Apple Watch,

THE APPLE WATCH AT USC: AN ANALYSIS OF PERCEPTION - FALL 2014 28

Works Cited

"ABI Research: Apple Watch Will End Android's Smart Watch Dominance." FierceWirelessEurope. N.p., n.d. Web. 16 Dec. 2014. "Apple Watch." Apple. Apple, n.d. Web. 15 Dec. 2014. "Campus Rep Interview." Personal interview. 2013. Interview conducted by USC Campus Rep with Head of Marketing for Apple of Southern California Universities. "Cool Vendors in Wearable Electronics." Gartner, 2014. Web. "Mintel News." Measure Your Stress. Mintel, n.d. Web. 16 Dec. 2014. "NPD Group Analysis of Wearables." Mobihealthnews RSS. NPD Group, n.d. Web. 16 Dec. 2014. "Off the Cuff." Off the Cuff. Mintel, Aug. 2014. Web. 16 Dec. 2014. "USC Bookstore Apple Information." Telephone interview. 2013. An interview conducted by USC student of USC Bookstores interactions and successes working with the Apple Campus Rep. "Wearable Computing to the Rescue?" Analyst Reports. Mintel, 27 Jan. 2014. Web. 16 Dec. 2014. Wolfe, Bryan M. "Morgan Stanley Expects Initial Apple Watch Sales to Top 30 Million." Business Insider. JP Morgan, 20 Nov. 2014. Web.