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Consumer Perspective of RFID in Apparel Retail

Consumer Perspective of RFID in Apparel Retail. VICS/AAFA RFID EPC Committee Meeting January 16th, 2007. Sanchit Tiwari. RFID and the Consumer. Consumer interaction with RFID at the retail level For higher acceptance, businesses need to: maximize consumer benefits

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Consumer Perspective of RFID in Apparel Retail

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  1. Consumer Perspective of RFID in Apparel Retail VICS/AAFA RFID EPC Committee MeetingJanuary 16th, 2007 Sanchit Tiwari

  2. RFID and the Consumer • Consumer interaction with RFID at the retail level • For higher acceptance, businesses need to: • maximize consumer benefits • minimize consumer risks (price, privacy etc) • Increase observability and awareness of the technology amongst consumers

  3. Current State of RFID: The Chasm Technology Adoption Life Cycle (Moore 1991)

  4. Consumer Benefits of RFID • Garment tracking within a store • Real-time replenishment prevents stock outs • Faster self-checkout due to multiple item scanning • RFID loyalty cards for customer specific shopping reminders and promotions • Magic mirrors and RFID closets for detailed information about the garment

  5. Consumer Risks/Issues • RFID tags can used as tracking devices • Shopping information stored on RFID enabled loyalty cards invade privacy • RFID infrastructure and tags lead to increased item price

  6. Research Question Can consumer knowledge of RFID technology and applications increase the overall acceptance of the technology?

  7. Relative Advantage Risk Compatibility Observability Trialability Simplicity Theory of Innovation Diffusion (Rogers, 1995)

  8. Research Methods • Case studies • Online survey

  9. Case Studies • Development of case studies on RFID initiatives in apparel retail • Marks & Spencer • Prada • Benetton

  10. Online Survey • Online survey of a random, representative sample of men and women across the US (n = 150) • Sample purchased from a Connecticut-based sampling firm • Experiment design Pre-test  Treatment (information)  Post-test

  11. Expected Results • Consumer perceptions of RFID benefits and issues • Effect of RFID on consumer shopping behavior • Target consumer segments for RFID based on demographic, geographic and behavioral variables

  12. Acknowledgements Prof. Suzanne Loker Professor and J.Thomas Clarke Professor of Entrepreneurship and Personal Enterprise Department of Textiles & Apparel Cornell University Mr. Paul Chamandy V.P. New Business Development Apparel Systems Paxar Americas, Inc., Graduate Student Funding College of Human Ecology Cornell University

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