Marketing Wearable Marketing Wearable Computers to Consumers:Computers to Consumers:

An Examination of Early Adopter An Examination of Early Adopter Consumers' Feelings and AttitudesConsumers' Feelings and Attitudes

Toward Wearable Computers Toward Wearable Computers

What is a Wearable What is a Wearable Computer?Computer?

a fully functional, self-powered, self-a fully functional, self-powered, self-contained computer that is worn on the contained computer that is worn on the body providing access to information body providing access to information and interaction with information and 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.

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

Fully Functioning ComputerFully Functioning Computer Can offer as much computing power as Can offer as much computing power as

a desktop computer a desktop computer

Head MountedHead Mounted Displays Displays

2 major optical designs2 major optical designs 2 types of functionality2 types of functionality

Optical Optical VideoVideo

““Always-On” ComputingAlways-On” Computing Computing is not the main taskComputing is not the main task Either enhances or supports the user’s Either enhances or supports the user’s

interaction with the environment by interaction with the environment by providing additional information providing additional information

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”

Power SupplyPower Supply Due to always on functionality, Due to always on functionality,

wearable computers have more power wearable computers have more power demands than other mobile devices.demands than other mobile devices.

Suggestion for increased battery life Suggestion for increased battery life include:include: Self-generated power through shoe insertsSelf-generated power through shoe inserts Synthetic fibers that generate power when Synthetic fibers that generate power when

exposed to lightexposed to light

Demo of the PomaDemo of the Poma

History of Wearable History of Wearable ComputingComputing

MIT Media Lab’s Wearable Computing MIT Media Lab’s Wearable Computing GroupGroup Inventors:Inventors:

Steven Mann Thad Starner

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

Consumer ProductsConsumer Products

Xybernaut's Poma & Charmed Technology’s CharmItXybernaut's Poma & Charmed Technology’s CharmIt

CharmIt

Poma

Wearable Computing Wearable Computing ApplicationsApplications

Sharing Experiences Via VideoSharing Experiences Via Video Remembrance ApplicationsRemembrance Applications Smart FabricsSmart Fabrics GPS Driven InformationGPS Driven Information NanoTechnologyNanoTechnology

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

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 and The “Chasm” between early adopters and

mainstream marketmainstream market

Adoption Diffusion Curve

Moore’s ChasmMoore’s Chasm

Purchasing DecisionPurchasing Decision

Based on Rogers, five factors that impact Based on Rogers, five factors that impact adoption:adoption:

1.1. Perceived attributes of the innovationPerceived attributes of the innovation2.2. Number of people involved in the adoption Number of people involved in the adoption

decision (individual vs. an organization)decision (individual vs. an organization)3.3. Communication channels used to promote the Communication channels used to promote the

innovationinnovation4.4. Nature of the social system into which the Nature of the social system into which the

product is adopted product is adopted 5.5. Extent of the change agent’s promotional effortsExtent of the change agent’s promotional efforts

Gartner Group ModelGartner Group Model

Customer Adoption Roadmap involves: Customer Adoption Roadmap involves:

1. Consumer att itudes and behaviors 2. Market condit ions3. Accelerators and inhibitors 4. Challenges and opportunit ies for the

industries that part icipate 5. Opportunit ies 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

Stages of Decision MakingStages of Decision MakingBased on Rogers, the individual passes through Based on Rogers, the individual passes through

five stages in the process of making a five stages in the process of making a purchasing decision:purchasing decision:

1. Knowledge of an innovation 2. Forming an att itude toward the innovation 3. Decision to adopt or reject the innovation4. Implementation of the new idea5. Confirmation of this decision

Factors that Impact Rate of Factors 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 following which can be explained by the following five attributes: five attributes:

Relative advantageRelative advantage CompatibilityCompatibility ComplexityComplexity TrialabilityTrialability ObservabilityObservability

Consumer Valued AttributesConsumer Valued Attributes

For example, the role social prestige plays For example, the role social prestige plays in purchasing decisionsin purchasing decisions

Malcolm’s Malcolm’s Tipping PointTipping Point Law of the Few Law of the Few Stickiness Factor Stickiness Factor Power of Context Power of Context

Challenges to Roger’s Challenges to Roger’s Diffusion ModelDiffusion Model

Applied to adoption of any innovationApplied to adoption of any innovation Does not account for the time that an Does not account for the time that an

adoption process may takeadoption process may take Can not predict the total number of Can not predict the total number of

innovators and early adopters innovators and early adopters Does not account for various other market Does not account for various other market

factors that will influence rates of adoptionfactors that will influence rates of adoption

Consumer BehaviorConsumer Behavior

Affect the following factors’s impact on Affect the following factors’s impact on purchasing decision:purchasing decision: SocialSocial CulturalCultural PersonalPersonal Psychological Psychological

Theories of MotivationTheories of Motivation

The most familiar human motivation theories The 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 economic Marshall 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

Theories of PerceptionTheories of Perception

Selective attentionSelective attention Selective distortionSelective distortion Selective retentionSelective retention

Communication ChannelCommunication Channel Interpersonal better for complex Interpersonal better for complex

technology products, mass media for technology products, mass media for easy to understand and adopt products.easy to understand and adopt products.

Importance of Change Agents Importance of Change Agents

Predicting Market DemandPredicting Market Demand

Bass ModelBass Model

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 individual Forecast based on individual

demographics driven purchases demographics driven purchases Forecast based on sampling consumers Forecast based on sampling consumers

and extrapolatingand extrapolating

Application of Models to Predicting Application of Models to Predicting Adoption for Wearable ComputersAdoption for Wearable Computers

Focus on gathering consumer attitudes Focus on gathering consumer attitudes and behaviors that will affect adoption and behaviors that will affect adoption interest and ratesinterest and rates

Use of Gartner Group modelUse of Gartner Group model Use of consumer behavior and Use of consumer behavior and

motivation theories.motivation theories.

Data CollectionData Collection

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 reactions Early adopters asked to give their reactions about wearable computing features and about 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

Demographic Summary – Survey #1Demographic Summary – Survey #1

24 questions @ their technology use and 24 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 ages Survey respondents were mostly women ages

31-40 who work in the DC metro area and 31-40 who work in the DC metro area and make $50,000 to $74,999 a year as a trained make $50,000 to $74,999 a year as a trained professional or self-employed/partner.professional or self-employed/partner.

Demographic Summary – Survey #2Demographic Summary – Survey #2

16 questions about interest in specific wearable 16 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 78 A 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 DC communications 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.

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

Demographic Summary – Demographic Summary – Daily Use TrialDaily Use Trial

Joe, a 24-year-old Korean male who Joe, a 24-year-old Korean male who lived in the DC metro area. lived in the DC metro area.

Joe is a customer service representative Joe is a customer service representative at a mutual fund company and is an at 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.

Data Collection – Common Data Collection – Common ThemesThemes

Impact of pre-existing attitudes and Impact of pre-existing attitudes and expectationsexpectations

Concern about how the technology Concern about how the technology would change their liveswould change their lives

Feedback about functionality and Feedback 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

Data Collection – Pre-existing Data 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 life Mike commented, “I thought it would be cool and life

changing, and it ended up being mediocre and not changing, and it ended up being mediocre and not

that interesting.”that interesting.”

Survey – Pre-Existing Survey – 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 Bond Dick 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

Concepts of “Wearable Concepts of “Wearable Computer”Computer”

Exchanging business cards by shaking Exchanging business cards by shaking hands or a really dumb hat that tells hands or a really dumb hat that tells me temperature and humidityme temperature and humidity..

The geek sitting on the fountain scaring The geek sitting on the fountain scaring the pigeons. the pigeons.

Data Collection – Common Data Collection – Common ConcernsConcerns

Concern about Impact on Social Concern about Impact on Social InteractionsInteractions

Concerns about user attentionConcerns about user attention Concerns about always being connectedConcerns about always being connected

Concern –Always ConnectedConcern –Always ConnectedDo 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.

Concern – Impact on Social Concern – Impact on Social InteractionsInteractions

I'm disconnected from the real world often enough I I'm disconnected from the real world often enough I don't need to have the real world represented as a don't need to have the real world represented as a

video image.video image.

Concern – User AttentionConcern – User AttentionWith 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 was On 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 keeping driving. With the device on I had a hard time at times keeping

focus even though all I was doing was driving and trying to focus even though all I was doing was driving and trying to avoid paying attention to the screen. It has a way of creating avoid paying attention to the screen. It has a way of creating tunnel vision. This was something that I had noticed earlier tunnel vision. This was something that I had noticed earlier

when I tried to talk to co-workers with a Word document up. I when 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 would was able to focus on their face but the rest of their body would

wash out.” – Joe, daily test subjectwash out.” – Joe, daily test subject

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

Product Improvement Product 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

Improvement of Product Improvement of Product Features - HMDFeatures - HMD

HMDHMD Focus group and daily Focus group and daily

use found it use found it impossible to useimpossible to use

Survey respondents Survey respondents were more interested were more interested in HMD displays than in HMD displays than traditional handheld traditional handheld or MicroVision or MicroVision displaysdisplays

Improvement of Product Improvement of Product Features – InputFeatures – Input

Focus group and daily use participants Focus group and daily use participants wanted different input deviceswanted different input devices““If you’re using up 90% of your brainpower just to work the If 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

Improvement of Product Improvement of Product Features – Operating SystemFeatures – Operating System

Focus group and daily use participants Focus group and daily use participants wanted Pocket PC or Palm interface, not wanted Pocket PC or Palm interface, not Windows CEWindows CE

Interest in Wearable Interest in Wearable Computers + Smart FabricsComputers + Smart Fabrics

Industry thinks consumers Industry thinks consumers will be more interested in will be more interested in wearable computers if they wearable computers if they are embedded in clothare embedded in cloth

Consumers sampled for this Consumers sampled for this study were not interested in study were not interested in smart fabricssmart fabrics Too disposable when fashions Too disposable when fashions

changechange

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))

Interest in PurchasingInterest in Purchasing No respondent was interested in purchasing No 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 of and were comfortable with a price range of $400-$700$400-$700

““At that price point, no one is going to buy it At that price point, no one is going to buy it without trying it one”without trying it one” – focus group – focus group participantparticipant

Pivotal “Killer App”Pivotal “Killer App”

Abil i ty to access mobile Abil i ty to access mobile InternetInternet

Wireless InternetWireless InternetThe evolution and current The evolution and current state of WiFi and cellular state of WiFi and cellular

networksnetworks

Wireless InternetWireless Internet Network Economic TheoryNetwork Economic Theory Mechanics of Wireless Data Mechanics of Wireless Data

TransmissionTransmission History and Evolution of Wireless History and Evolution of Wireless

Standards: WiFi and CellularStandards: WiFi and Cellular

Network EconomiesNetwork Economies Network EffectsNetwork Effects StandardsStandards InteroperabilityInteroperability

StandardsStandards Standards are composed of agreed upon Standards are composed of agreed upon

rules or models that outline principles rules or models that outline principles and practices to follow that will ensure and 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

The Mechanics of Wireless The Mechanics of Wireless Data TransmissionData Transmission

Electromagnetic waves carry voice and data from the Electromagnetic waves carry voice and data from the mobile device to a receiver and then on to another mobile 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 an The 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 of Frequencies 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

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 carrier Doesn’t require the firm to create carrier

agreementsagreements Cons:Cons:

Patchy coveragePatchy coverage Hard to configureHard to configure

Wireless Internet - CellularWireless Internet - Cellular Pros:Pros:

Expansive coverageExpansive coverage Easy for user to configureEasy for user to configure

Cons:Cons: Requires formal carrier arrangement Requires formal carrier arrangement

between hardware and cellular providerbetween hardware and cellular provider Infrastructure can’t yet support high data Infrastructure can’t yet support high data

demands or consistent connectiondemands or consistent connection

Current State of Wireless Current State of Wireless Internet Internet

Neither standard had enough of a footprint or Neither standard had enough of a footprint or enough infrastructure support to support true enough infrastructure support to support true mobile computingmobile computing

Wearable computing firms should move Wearable computing firms should move toward arranging cellular agreements so that toward arranging cellular agreements so that consumers will have the ease of use associated consumers will have the ease of use associated with cellular supported computing. with cellular supported computing.

ConclusionsConclusions

Early Adopter consumers are ready for Early 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 access The “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

Features of the Improved Consumer Features 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 and Is 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

Is the Wearable Computing Industry Is the Wearable Computing Industry ready for consumers’ interestready for consumers’ interest

No. Keep an eye out for system No. Keep an eye out for system integrators that combine technologies integrators that combine technologies and market the combined product (like and market the combined product (like International Imaging System’s Second International Imaging System’s Second Reader).Reader).