When an established incumbent already exists in the market, new entrants may consider special entrance strategies for entering that market. Disruptive innovation theory suggests that new entrants may start from a low-end market and then expand into mainstream markets. A recent debate on the theory has questioned its generalizability, but such controversy originates from the attempt to apply it to any business success by a new entrant. However, different innovations require the application of different theories. Therefore, this article identifies a profitable niche market for startups and small- and medium-sized companies based on consumer preferences and determines whether disruptive innovation is likely to emerge in a particular market context. Specifically, this article investigates whether the low-end market is the profitable niche market for market entrance. It uses a choice experiment and a hierarchical Bayesian normal mixture model capable of capturing preference heterogeneity at both the individual and the segment levels to predict market entry implications in an ex-ante fashion for the wearable device market in South Korea. The characteristics of the identified niche market segment and entry product design imply that startups and small and medium-sized companies should be cautious when applying disruptive innovation theory in this context.