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Greenberg, J., Pyszczynski, T. and Solomon, S. (1986) The Causes and Consequences of a Need for Self-Esteem: A Terror Management Theory. Baumeister, R.F., Ed., Springer-Verlag, New York.

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• TITLE: The Baetylus Theorem—The Central Disconnect Driving Consumer Behavior and Investment Returns in Wearable Technologies

  AUTHORS: James A. Levine

  KEYWORDS: Wearable Technology, Consumer Behavior, Investment, Innovation, Entrepreneurship, Physical Activity

  JOURNAL NAME: Technology and Investment, Vol.7 No.3, July 28, 2016

  ABSTRACT: The Wearable Technology market may increase fivefold by the end of the decade. There is almost no academic investigation as to what drives the investment hypothesis in wearable technologies. This paper seeks to examine this issue from an evidence-based perspective. There is a fundamental disconnect in how consumers view wearable sensors and how companies market them; this is called The Baetylus Theorem where people believe (falsely) that by buying a wearable sensor they will receive health benefit; data suggest that this is not the case. This idea is grounded social constructs, psychological theories and marketing approaches. A marketing proposal that fails to recognize The Baetylus Theorem and how it can be integrated into a business offering has not optimized its competitive advantage. More importantly, consumers should not falsely believe that purchasing a wearable technology improves health.