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AAFA/VICS RFID EPC Committee Meeting Consumer Perspective of RFID in Apparel Retail Sanchit Tiwari VICS/AAFA RFID EPC Committee Meeting January 16th, 2007
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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
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AAFA/VICS RFID EPC Committee Meeting Current State of RFID: The Chasm Technology Adoption Life Cycle (Moore 1991)
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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
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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
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AAFA/VICS RFID EPC Committee Meeting Research Question Can consumer knowledge of RFID technology and applications increase the overall acceptance of the technology?
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AAFA/VICS RFID EPC Committee Meeting Risk Relative Advantage Simplicity Trialability Observability Compatibility Theory of Innovation Diffusion (Rogers, 1995)
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AAFA/VICS RFID EPC Committee Meeting Research Methods Case studies Online survey
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AAFA/VICS RFID EPC Committee Meeting Case Studies Development of case studies on RFID initiatives in apparel retail –Marks & Spencer –Prada –Benetton
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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
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AAFA/VICS RFID EPC Committee Meeting
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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
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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
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