Rfid In Apparel Retail

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  • Rfid In Apparel Retail

    1. 1. Consumer Perspective of RFID in Apparel Retail Sanchit Tiwari VICS/AAFA RFID EPC Committee Meeting January 16th, 2007
    2. 2. RFID and the Consumer <ul><li>Consumer interaction with RFID at the retail level </li></ul><ul><li>For higher acceptance, businesses need to: </li></ul><ul><ul><li>maximize consumer benefits </li></ul></ul><ul><ul><li>minimize consumer risks (price, privacy etc) </li></ul></ul><ul><ul><li>Increase observability and awareness of the technology amongst consumers </li></ul></ul>
    3. 3. Current State of RFID: The Chasm <ul><li>Technology Adoption Life Cycle (Moore 1991) </li></ul>
    4. 4. Consumer Benefits of RFID <ul><li>Garment tracking within a store </li></ul><ul><li>Real-time replenishment prevents stock outs </li></ul><ul><li>Faster self-checkout due to multiple item scanning </li></ul><ul><li>RFID loyalty cards for customer specific shopping reminders and promotions </li></ul><ul><li>Magic mirrors and RFID closets for detailed information about the garment </li></ul>
    5. 5. Consumer Risks/Issues <ul><li>RFID tags can used as tracking devices </li></ul><ul><li>Shopping information stored on RFID enabled loyalty cards invade privacy </li></ul><ul><li>RFID infrastructure and tags lead to increased item price </li></ul>
    6. 6. Research Question <ul><li>Can consumer knowledge of RFID technology and applications increase the overall acceptance of the technology? </li></ul>
    7. 7. Theory of Innovation Diffusion (Rogers, 1995) Risk Relative Advantage Simplicity Trialability Observability Compatibility
    8. 8. Research Methods <ul><li>Case studies </li></ul><ul><li>Online survey </li></ul>
    9. 9. Case Studies <ul><li>Development of case studies on RFID initiatives in apparel retail </li></ul><ul><ul><li>Marks & Spencer </li></ul></ul><ul><ul><li>Prada </li></ul></ul><ul><ul><li>Benetton </li></ul></ul>
    10. 10. Online Survey <ul><li>Online survey of a random, representative sample of men and women across the US (n = 150) </li></ul><ul><ul><li>Sample purchased from a Connecticut-based sampling firm </li></ul></ul><ul><li>Experiment design </li></ul><ul><li>Pre-test  Treatment (information)  Post-test </li></ul>
    11. 12. Expected Results <ul><li>Consumer perceptions of RFID benefits and issues </li></ul><ul><li>Effect of RFID on consumer shopping behavior </li></ul><ul><li>Target consumer segments for RFID based on demographic, geographic and behavioral variables </li></ul>
    12. 13. Acknowledgements <ul><li>Prof. Suzanne Loker </li></ul><ul><li>Professor and J.Thomas Clarke Professor of Entrepreneurship and Personal Enterprise </li></ul><ul><li>Department of Textiles & Apparel </li></ul><ul><li>Cornell University </li></ul>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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