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

2. AAFA/VICS RFID EPC Committee Meeting 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. AAFA/VICS RFID EPC Committee Meeting Current State of RFID: The Chasm Technology Adoption Life Cycle (Moore 1991)

4. AAFA/VICS RFID EPC Committee Meeting 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. AAFA/VICS RFID EPC Committee Meeting 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. AAFA/VICS RFID EPC Committee Meeting Research Question Can consumer knowledge of RFID technology and applications increase the overall acceptance of the technology?

7. AAFA/VICS RFID EPC Committee Meeting Risk Relative Advantage Simplicity Trialability Observability Compatibility Theory of Innovation Diffusion (Rogers, 1995)

8. AAFA/VICS RFID EPC Committee Meeting Research Methods Case studies Online survey

9. AAFA/VICS RFID EPC Committee Meeting Case Studies Development of case studies on RFID initiatives in apparel retail –Marks & Spencer –Prada –Benetton

10. AAFA/VICS RFID EPC Committee Meeting 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. AAFA/VICS RFID EPC Committee Meeting

12. 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

13. AAFA/VICS RFID EPC Committee Meeting 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