This document summarizes a presentation on consumers' perspectives of RFID technology in apparel retail. It discusses maximizing consumer benefits and minimizing risks to increase acceptance. Potential consumer benefits include item tracking, inventory management, and personalized shopping experiences. However, consumers risk privacy issues from item tracking and higher prices. The presentation proposes studying how educating consumers about RFID applications affects technology acceptance, using case studies and a survey. It aims to identify consumer segments most open to RFID based on demographics and shopping behavior.

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

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

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

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. 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