1.
Marketing WearableMarketing Wearable
Computers to Consumers:Computers to Consumers:
An Examination of Early AdopterAn Examination of Early Adopter
Consumers' Feelings and AttitudesConsumers' Feelings and Attitudes
Toward Wearable ComputersToward Wearable Computers

2.
What is a WearableWhat is a Wearable
Computer?Computer?
 a fully functional, self-powered, self-a fully functional, self-powered, self-
contained computer that is worn on thecontained computer that is worn on the
body providing access to informationbody providing access to information
and interaction with informationand interaction with information
anywhere and at anytime.anywhere and at anytime.[1][1]
[1] T. Mann Starner, S. Rhodes, B. Levine, J. Healy, J.Kirsch, D. Picard R, and Pentland, A., "Augmented Reality
through Wearable Computing. Presence: Teleoperators and Virtual Environments," in Fundamentals of Wearable
Computing (1997).pp. 6.

3.
Unique FeaturesUnique Features
Different from other mobile devices:Different from other mobile devices:
 Fully Functioning Computers
 Head Mounted Displays
 Always On
 Input Devices
 Power Supply

4.
Fully Functioning ComputerFully Functioning Computer
 Can offer as much computing power asCan offer as much computing power as
a desktop computera desktop computer

5.
Head MountedHead Mounted
DisplaysDisplays
 2 major optical designs2 major optical designs
 2 types of functionality2 types of functionality
 OpticalOptical
 VideoVideo

6.
““Always-On” ComputingAlways-On” Computing
 Computing is not the main taskComputing is not the main task
 Either enhances or supports the user’sEither enhances or supports the user’s
interaction with the environment byinteraction with the environment by
providing additional informationproviding additional information

7.
Input DevicesInput Devices
 Body-mounted keyboardsBody-mounted keyboards
 Speech recognition softwareSpeech recognition software
 Hand-held keyboards (or touch screens)Hand-held keyboards (or touch screens)
 Optical miceOptical mice
 Chording devices
Chording Device: “Twiddler”

8.
Power SupplyPower Supply
 Due to always on functionality,Due to always on functionality,
wearable computers have more powerwearable computers have more power
demands than other mobile devices.demands than other mobile devices.
 Suggestion for increased battery lifeSuggestion for increased battery life
include:include:
 Self-generated power through shoe insertsSelf-generated power through shoe inserts
 Synthetic fibers that generate power whenSynthetic fibers that generate power when
exposed to lightexposed to light

9.
Demo of the PomaDemo of the Poma

10.
History of WearableHistory of Wearable
ComputingComputing
 MIT Media Lab’s Wearable ComputingMIT Media Lab’s Wearable Computing
GroupGroup
 Inventors:Inventors:
Steven Mann Thad Starner

11.
Wearable Computing IndustryWearable Computing Industry
 Used for defense, intelligence,Used for defense, intelligence,
commercial and retail applications.commercial and retail applications.
 Recently entered consumer marketRecently entered consumer market
 Xybernaut Corporation - MannXybernaut Corporation - Mann
 Charmed Technologies - StarnerCharmed Technologies - Starner

12.
Consumer ProductsConsumer Products
 Xybernaut's Poma & Charmed Technology’s CharmItXybernaut's Poma & Charmed Technology’s CharmIt
CharmIt
Poma

13.
Wearable ComputingWearable Computing
ApplicationsApplications
 Sharing Experiences Via VideoSharing Experiences Via Video
 Remembrance ApplicationsRemembrance Applications
 Smart FabricsSmart Fabrics
 GPS Driven InformationGPS Driven Information
 NanoTechnologyNanoTechnology

14.
Predicting:Predicting:
Product Adoption,Product Adoption,
Market Impact &Market Impact &
Consumer BehaviorConsumer Behavior

15.
Product AdoptionProduct Adoption
 Everett RogersEverett Rogers
 Product Adoption TheoryProduct Adoption Theory
 Categories of AdoptersCategories of Adopters
 Factors that Impact AdoptionFactors that Impact Adoption
 Geoffrey MooreGeoffrey Moore
 The “Chasm” between early adopters andThe “Chasm” between early adopters and
mainstream marketmainstream market

16.
Adoption Diffusion Curve

17.
Moore’s ChasmMoore’s Chasm

18.
Purchasing DecisionPurchasing Decision
 Based on Rogers, five factors that impactBased on Rogers, five factors that impact
adoption:adoption:
1.1. Perceived attributes of the innovationPerceived attributes of the innovation
2.2. Number of people involved in the adoptionNumber of people involved in the adoption
decision (individual vs. an organization)decision (individual vs. an organization)
3.3. Communication channels used to promote theCommunication channels used to promote the
innovationinnovation
4.4. Nature of the social system into which theNature of the social system into which the
product is adoptedproduct is adopted
5.5. Extent of the change agent’s promotional effortsExtent of the change agent’s promotional efforts

19.
Gartner Group ModelGartner Group Model
Customer Adoption Roadmap involves:Customer Adoption Roadmap involves:
1. Consumer attitudes and behaviors
2. Market conditions
3. Accelerators and inhibitors
4. Challenges and opportunities for the
industries that participate
5. Opportunities for non-technology marketers
[1][1] Richard Trinker & Brian Smith, "Consumer Technology Adoption Roadmap,"Richard Trinker & Brian Smith, "Consumer Technology Adoption Roadmap," Gartner G2Gartner G2 (2002). pp. 5-6(2002). pp. 5-6

20.
Stages of Decision MakingStages of Decision Making
Based on Rogers, the individual passes throughBased on Rogers, the individual passes through
five stages in the process of making afive stages in the process of making a
purchasing decision:purchasing decision:
1. Knowledge of an innovation
2. Forming an attitude toward the innovation
3. Decision to adopt or reject the innovation
4. Implementation of the new idea
5. Confirmation of this decision

21.
Factors that Impact Rate ofFactors that Impact Rate of
AdoptionAdoption
Rogers discovered that there is a 49%-Rogers discovered that there is a 49%-
87% variance in the rate of adoption,87% variance in the rate of adoption,
which can be explained by the followingwhich can be explained by the following
five attributes:five attributes:
 Relative advantageRelative advantage
 CompatibilityCompatibility
 ComplexityComplexity
 TrialabilityTrialability
 ObservabilityObservability

22.
Consumer Valued AttributesConsumer Valued Attributes
For example, the role social prestige playsFor example, the role social prestige plays
in purchasing decisionsin purchasing decisions
 Malcolm’sMalcolm’s Tipping PointTipping Point
 Law of the FewLaw of the Few
 Stickiness FactorStickiness Factor
 Power of ContextPower of Context

23.
Challenges to Roger’sChallenges to Roger’s
Diffusion ModelDiffusion Model
 Applied to adoption of any innovationApplied to adoption of any innovation
 Does not account for the time that anDoes not account for the time that an
adoption process may takeadoption process may take
 Can not predict the total number ofCan not predict the total number of
innovators and early adoptersinnovators and early adopters
 Does not account for various other marketDoes not account for various other market
factors that will influence rates of adoptionfactors that will influence rates of adoption

24.
Consumer BehaviorConsumer Behavior
Affect the following factors’s impact onAffect the following factors’s impact on
purchasing decision:purchasing decision:
 SocialSocial
 CulturalCultural
 PersonalPersonal
 PsychologicalPsychological

25.
Theories of MotivationTheories of Motivation
 The most familiar human motivation theoriesThe most familiar human motivation theories
are from the works of Marshall, Freud,are from the works of Marshall, Freud,
Veblen, Herzberg and Maslow.Veblen, Herzberg and Maslow.
 Marshall model – motivated by economicMarshall model – motivated by economic
factorsfactors
 Freud – subconscious psychological factorsFreud – subconscious psychological factors
 Veblen –driven by social prestigeVeblen –driven by social prestige
 Herzberg – satisfiers vs. dissatifiersHerzberg – satisfiers vs. dissatifiers
 Maslow – Hierarchy of needsMaslow – Hierarchy of needs

26.
Theories of PerceptionTheories of Perception
 Selective attentionSelective attention
 Selective distortionSelective distortion
 Selective retentionSelective retention

27.
Communication ChannelCommunication Channel
 Interpersonal better for complexInterpersonal better for complex
technology products, mass media fortechnology products, mass media for
easy to understand and adopt products.easy to understand and adopt products.
 Importance of Change AgentsImportance of Change Agents

28.
Predicting Market DemandPredicting Market Demand
Bass ModelBass Model

29.
Prediction Market DemandPrediction Market Demand
 Other Models:Other Models:
 Delphi –convening expertsDelphi –convening experts
Forecast based on a similar marketForecast based on a similar market
 Forecast based on individualForecast based on individual
demographics driven purchasesdemographics driven purchases
 Forecast based on sampling consumersForecast based on sampling consumers
and extrapolatingand extrapolating

30.
Application of Models to PredictingApplication of Models to Predicting
Adoption for Wearable ComputersAdoption for Wearable Computers
 Focus on gathering consumer attitudesFocus on gathering consumer attitudes
and behaviors that will affect adoptionand behaviors that will affect adoption
interest and ratesinterest and rates
 Use of Gartner Group modelUse of Gartner Group model
 Use of consumer behavior andUse of consumer behavior and
motivation theories.motivation theories.

31.
Data CollectionData Collection

32.
Data CollectionData Collection
 4 sources of data4 sources of data
 2 email driven/web based surveys2 email driven/web based surveys
 Early adopters asked to give their reactionsEarly adopters asked to give their reactions
about wearable computing features andabout wearable computing features and
applications and interest in smart fabricsapplications and interest in smart fabrics
 Focus Group with Poma productFocus Group with Poma product
 Daily Use Trial with PomaDaily Use Trial with Poma

33.
Demographic Summary – Survey #1Demographic Summary – Survey #1
 24 questions @ their technology use and24 questions @ their technology use and
interest in wearable computersinterest in wearable computers
 Launched December 3, 2003Launched December 3, 2003
 A total of 256 people (97 men & 157 women)A total of 256 people (97 men & 157 women)
responded.responded.
 Survey respondents were mostly women agesSurvey respondents were mostly women ages
31-40 who work in the DC metro area and31-40 who work in the DC metro area and
make $50,000 to $74,999 a year as a trainedmake $50,000 to $74,999 a year as a trained
professional or self-employed/partner.professional or self-employed/partner.

34.
Demographic Summary – Survey #2Demographic Summary – Survey #2
 16 questions about interest in specific wearable16 questions about interest in specific wearable
computer features and integration with smart fabricscomputer features and integration with smart fabrics
 Launched February 14, 2003Launched February 14, 2003
 A total of 90 people responded with 15 men and 78A total of 90 people responded with 15 men and 78
women.women.
 Women, 25-40 age range, work in the technology,Women, 25-40 age range, work in the technology,
communications or design profession, live in the DCcommunications or design profession, live in the DC
metro area, annual income of $40K-$75K a year.metro area, annual income of $40K-$75K a year.
Currently own multiple mobile technologies.Currently own multiple mobile technologies.

35.
Demographic Summary –Demographic Summary –
Focus GroupFocus Group
 The Poma focus group was held on a February 10,
2003, a weekday night at 7:00 PM in a classroom on
the Georgetown University campus.
 12 participants – most in tech industry
 Ages: 26 to 50, majority in their mid 30s.
 All from greater DC metro area.
 All owned multiple mobile devices

36.
Demographic Summary –Demographic Summary –
Daily Use TrialDaily Use Trial
 Joe, a 24-year-old Korean male whoJoe, a 24-year-old Korean male who
lived in the DC metro area.lived in the DC metro area.
 Joe is a customer service representativeJoe is a customer service representative
at a mutual fund company and is anat a mutual fund company and is an
early adopter.early adopter.
 He owns a digital camera, laptop, PDA,He owns a digital camera, laptop, PDA,
smart phone, and MP3 player.smart phone, and MP3 player.

37.
Data Collection – CommonData Collection – Common
ThemesThemes
 Impact of pre-existing attitudes andImpact of pre-existing attitudes and
expectationsexpectations
 Concern about how the technologyConcern about how the technology
would change their liveswould change their lives
 Feedback about functionality andFeedback about functionality and
applications that would be of useapplications that would be of use
 Product improvement suggestionsProduct improvement suggestions
 Feedback about price and marketingFeedback about price and marketing

38.
Data Collection – Pre-existingData Collection – Pre-existing
attitudes and expectationsattitudes and expectations
 In every situation, their expectations of what the
technology could do and how they would use the
technology did not match their first experiences with
the product.
Focus Group:Focus Group:
 Mike commented, “I thought it would be cool and lifeMike commented, “I thought it would be cool and life
changing, and it ended up being mediocre and notchanging, and it ended up being mediocre and not
that interesting.”that interesting.”

39.
Survey – Pre-ExistingSurvey – Pre-Existing
ConceptsConcepts
 Associations:Associations:
 Mobile Internet (8 out of 256)Mobile Internet (8 out of 256)
 Smart Clothing (36 out of 256)Smart Clothing (36 out of 256)
 Dick Tracy, Star Trek, Matrix, James BondDick Tracy, Star Trek, Matrix, James Bond
(8 out of 256)(8 out of 256)
 Technology Implants (3 out of 256)Technology Implants (3 out of 256)
 PDAs (31 out of 256)PDAs (31 out of 256)
 NegativeNegative

40.
Concepts of “WearableConcepts of “Wearable
Computer”Computer”
 Exchanging business cards by shakingExchanging business cards by shaking
hands or a really dumb hat that tellshands or a really dumb hat that tells
me temperature and humidityme temperature and humidity..
 The geek sitting on the fountain scaringThe geek sitting on the fountain scaring
the pigeons.the pigeons.

41.
Data Collection – CommonData Collection – Common
ConcernsConcerns
 Concern about Impact on SocialConcern about Impact on Social
InteractionsInteractions
 Concerns about user attentionConcerns about user attention
 Concerns about always being connectedConcerns about always being connected

42.
Concern –Always ConnectedConcern –Always Connected
Do we need to be so connected? Really, has
"portable" communication like the cell phone really
made our lives better? Or simply made us more
chained to our jobs etc? I see many people who just
"must" stay connected wasting much time and
increasing their anxiety when not connected.
I think of the benefits it could produce but worry about
the abuses -- the "big brother" effect, or more Spam.

43.
Concern – Impact on SocialConcern – Impact on Social
InteractionsInteractions
I'm disconnected from the real world often enough II'm disconnected from the real world often enough I
don't need to have the real world represented as adon't need to have the real world represented as a
video image.video image.

44.
Concern – User AttentionConcern – User Attention
With a wearable computer, you can work while shopping,With a wearable computer, you can work while shopping,
exercising, and - most frightening of all - drivingexercising, and - most frightening of all - driving
““On my ride, home I broke the rules and wore the device as I wasOn my ride, home I broke the rules and wore the device as I was
driving. With the device on I had a hard time at times keepingdriving. With the device on I had a hard time at times keeping
focus even though all I was doing was driving and trying tofocus even though all I was doing was driving and trying to
avoid paying attention to the screen. It has a way of creatingavoid paying attention to the screen. It has a way of creating
tunnel vision. This was something that I had noticed earliertunnel vision. This was something that I had noticed earlier
when I tried to talk to co-workers with a Word document up. Iwhen I tried to talk to co-workers with a Word document up. I
was able to focus on their face but the rest of their body wouldwas able to focus on their face but the rest of their body would
wash out.” – Joe, daily test subjectwash out.” – Joe, daily test subject

45.
Feedback – Functionality &Feedback – Functionality &
ApplicationsApplications
 Full page, mobile InternetFull page, mobile Internet
 Focus Group:Focus Group:
1. mobile GPS to assist in finding directions and business
locations
2. Communication functionality (cell phone, instant
messaging, email, instant translation)
3. Mobile Internet
4. Contact management

46.
Product ImprovementProduct Improvement
SuggestionsSuggestions
From Focus Group:
1. Improving the screen visibility
2. Improving the input mechanism
3. Removing the wires from the CPU to
mouse and the CPU to the HMD
4. Fixing the fit of the HMD
5. Limited battery life

47.
Improvement of ProductImprovement of Product
Features - HMDFeatures - HMD
 HMDHMD
 Focus group and dailyFocus group and daily
use found ituse found it
impossible to useimpossible to use
 Survey respondentsSurvey respondents
were more interestedwere more interested
in HMD displays thanin HMD displays than
traditional handheldtraditional handheld
or MicroVisionor MicroVision
displaysdisplays

48.
Improvement of ProductImprovement of Product
Features – InputFeatures – Input
 Focus group and daily use participantsFocus group and daily use participants
wanted different input deviceswanted different input devices
““If you’re using up 90% of your brainpower just to work theIf you’re using up 90% of your brainpower just to work the
wearable, it’s not an augmentation but a tremendous handicap.”wearable, it’s not an augmentation but a tremendous handicap.”
Alex Lightman, Charmed TechnologiesAlex Lightman, Charmed Technologies
 Suggestions:Suggestions:
 Pen style input for data entryPen style input for data entry
 Thumb keyboardThumb keyboard
 Voice recognitionVoice recognition

49.
Improvement of ProductImprovement of Product
Features – Operating SystemFeatures – Operating System
 Focus group and daily use participantsFocus group and daily use participants
wanted Pocket PC or Palm interface, notwanted Pocket PC or Palm interface, not
Windows CEWindows CE

50.
Interest in WearableInterest in Wearable
Computers + Smart FabricsComputers + Smart Fabrics
 Industry thinks consumersIndustry thinks consumers
will be more interested inwill be more interested in
wearable computers if theywearable computers if they
are embedded in clothare embedded in cloth
 Consumers sampled for thisConsumers sampled for this
study were not interested instudy were not interested in
smart fabricssmart fabrics
 Too disposable when fashionsToo disposable when fashions
changechange

51.
Marketing the WearableMarketing the Wearable
 Respondent Suggestions:Respondent Suggestions:
 Create an improved productCreate an improved product
 Provide customer testimonialsProvide customer testimonials
 Provide ability to try the product (for ex.Provide ability to try the product (for ex.
demos in Best Buy)demos in Best Buy)
 Highlight the wireless and the mobilityHighlight the wireless and the mobility
 Highlight the softwareHighlight the software
 Use “cool” cultural references (Use “cool” cultural references (The MatrixThe Matrix))

52.
Interest in PurchasingInterest in Purchasing
 No respondent was interested in purchasingNo respondent was interested in purchasing
the Poma without improvementsthe Poma without improvements
 Consumers were thought $1200 was to high,Consumers were thought $1200 was to high,
and were comfortable with a price range ofand were comfortable with a price range of
$400-$700$400-$700
 ““At that price point, no one is going to buy itAt that price point, no one is going to buy it
without trying it one”without trying it one” – focus group– focus group
participantparticipant

53.
Pivotal “Killer App”Pivotal “Killer App”
Ability to access mobileAbility to access mobile
InternetInternet

54.
Wireless InternetWireless Internet
The evolution and currentThe evolution and current
state of WiFi and cellularstate of WiFi and cellular
networksnetworks

55.
Wireless InternetWireless Internet
 Network Economic TheoryNetwork Economic Theory
 Mechanics of Wireless DataMechanics of Wireless Data
TransmissionTransmission
 History and Evolution of WirelessHistory and Evolution of Wireless
Standards: WiFi and CellularStandards: WiFi and Cellular

56.
Network EconomiesNetwork Economies
 Network EffectsNetwork Effects
 StandardsStandards
 InteroperabilityInteroperability

57.
StandardsStandards
 Standards are composed of agreed uponStandards are composed of agreed upon
rules or models that outline principlesrules or models that outline principles
and practices to follow that will ensureand practices to follow that will ensure
interoperability.interoperability.
 Two standards:Two standards:
 Wireless Fidelity (WiFi)Wireless Fidelity (WiFi)
 Poma currently uses this standardPoma currently uses this standard
 2.5-3 G Cellular Standards2.5-3 G Cellular Standards

58.
The Mechanics of WirelessThe Mechanics of Wireless
Data TransmissionData Transmission
 Electromagnetic waves carry voice and data from theElectromagnetic waves carry voice and data from the
mobile device to a receiver and then on to anothermobile device to a receiver and then on to another
wireless device or the Internet.wireless device or the Internet.
 The number of oscillations per second of anThe number of oscillations per second of an
electromagnetic wave is called its frequency, felectromagnetic wave is called its frequency, f
 Frequencies are is measured in Hz (in honor ofFrequencies are is measured in Hz (in honor of
Heinrich Hertz).Heinrich Hertz).
 Electromagnetic waves travel at the speed of light.Electromagnetic waves travel at the speed of light.
 Higher frequencies (cellular) bounce off obstaclesHigher frequencies (cellular) bounce off obstacles

59.
Wireless Internet - WiFiWireless Internet - WiFi
 WiFiWiFi
 Pros:Pros:
 Free accessFree access
 Ability to support high data transfer ratesAbility to support high data transfer rates
 Doesn’t require the firm to create carrierDoesn’t require the firm to create carrier
agreementsagreements
 Cons:Cons:
 Patchy coveragePatchy coverage
 Hard to configureHard to configure

60.
Wireless Internet - CellularWireless Internet - Cellular
 Pros:Pros:
 Expansive coverageExpansive coverage
 Easy for user to configureEasy for user to configure
 Cons:Cons:
 Requires formal carrier arrangementRequires formal carrier arrangement
between hardware and cellular providerbetween hardware and cellular provider
 Infrastructure can’t yet support high dataInfrastructure can’t yet support high data
demands or consistent connectiondemands or consistent connection

61.
Current State of WirelessCurrent State of Wireless
InternetInternet
 Neither standard had enough of a footprint orNeither standard had enough of a footprint or
enough infrastructure support to support trueenough infrastructure support to support true
mobile computingmobile computing
 Wearable computing firms should moveWearable computing firms should move
toward arranging cellular agreements so thattoward arranging cellular agreements so that
consumers will have the ease of use associatedconsumers will have the ease of use associated
with cellular supported computing.with cellular supported computing.

62.
ConclusionsConclusions
 Early Adopter consumers are ready forEarly Adopter consumers are ready for
the concept of wearable computingthe concept of wearable computing
 They are not interested in the PomaThey are not interested in the Poma
 The “Killer App” is the ability to accessThe “Killer App” is the ability to access
full page Internet content while mobilefull page Internet content while mobile
 Consumers don’t want “always-on”Consumers don’t want “always-on”
computingcomputing

63.
Features of the Improved ConsumerFeatures of the Improved Consumer
Wearable ComputerWearable Computer
 Uses new MicroOptical eyewear for HMDUses new MicroOptical eyewear for HMD
 Palm OS or Pocket PC OSPalm OS or Pocket PC OS
 Is supported by cellular infrastructure andIs supported by cellular infrastructure and
offers cellular phone featuresoffers cellular phone features
 Pen based inputPen based input
 Provides GPS-driven contentProvides GPS-driven content
 Appealing softwareAppealing software
 Longer battery lifeLonger battery life
 DurableDurable

64.
Is the Wearable Computing IndustryIs the Wearable Computing Industry
ready for consumers’ interestready for consumers’ interest
 No. Keep an eye out for systemNo. Keep an eye out for system
integrators that combine technologiesintegrators that combine technologies
and market the combined product (likeand market the combined product (like
International Imaging System’s SecondInternational Imaging System’s Second
Reader).Reader).