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

An Examination of Early An Examination of Early Adopter Consumers' Feelings Adopter Consumers' Feelings and Attitudesand Attitudes Toward Wearable Toward Wearable

ComputersComputers

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

a fully functional, self-powered, a fully functional, self-powered, self-contained computer that is self-contained computer that is worn on the body providing access worn on the body providing access to information and interaction to information and interaction with information anywhere and at with information anywhere and at anytime.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 Fully Functioning ComputerComputer

Can offer as much computing Can offer as much computing power as a desktop computer power as 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 Either enhances or supports the

user’s interaction with the user’s interaction with the environment by providing environment by providing additional information additional information

Input DevicesInput Devices

Body-mounted keyboardsBody-mounted keyboards Speech recognition softwareSpeech recognition software Hand-held keyboards (or touch Hand-held keyboards (or touch

screens)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 Self-generated power through shoe

insertsinserts Synthetic fibers that generate power Synthetic fibers that generate power

when exposed to lightwhen exposed to light

Demo of the Demo of the PomaPoma

History of Wearable History of Wearable ComputingComputing

MIT Media Lab’s Wearable MIT Media Lab’s Wearable Computing GroupComputing Group Inventors:Inventors:

Steven Mann Thad Starner

Wearable Computing Wearable Computing IndustryIndustry

Used for defense, intelligence, Used for defense, intelligence, commercial and retail commercial and retail applications.applications.

Recently entered consumer Recently entered consumer marketmarket Xybernaut Corporation - MannXybernaut Corporation - Mann Charmed Technologies - StarnerCharmed Technologies - Starner

Consumer ProductsConsumer Products

Xybernaut's Poma & Charmed Technology’s Xybernaut's Poma & Charmed Technology’s CharmItCharmIt

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 Consumer BehaviorBehavior

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 The “Chasm” between early adopters

and mainstream marketand mainstream market

Adoption Diffusion Curve

Moore’s ChasmMoore’s Chasm

Purchasing DecisionPurchasing Decision

Based on Rogers, five factors that Based on Rogers, five factors that impact adoption:impact 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 Communication channels used to promote

the innovationthe innovation4.4. 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 Extent of the change agent’s promotional

effortsefforts

Gartner Group ModelGartner Group Model

Customer Adoption Roadmap involves: Customer Adoption Roadmap involves:

1. Consumer attitudes and behaviors 2. Market conditions3. 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

Stages of Decision MakingStages of Decision Making

Based on Rogers, the individual passes Based on Rogers, the individual passes through five stages in the process of through five stages in the process of making a purchasing decision:making a purchasing decision:

1. Knowledge of an innovation 2. Forming an attitude toward the

innovation 3. Decision to adopt or reject the

innovation4. Implementation of the new idea5. Confirmation of this decision

Factors that Impact Rate Factors that Impact Rate of Adoptionof Adoption

Rogers discovered that there is a Rogers discovered that there is a 49%-87% variance in the rate of 49%-87% variance in the rate of adoption, which can be explained adoption, which can be explained by the following five attributes: by the following five attributes:

Relative advantageRelative advantage CompatibilityCompatibility ComplexityComplexity TrialabilityTrialability ObservabilityObservability

Consumer Valued Consumer Valued AttributesAttributes

For example, the role social prestige For example, the role social prestige plays in purchasing decisionsplays in 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 Does not account for various other

market factors that will influence rates market factors that will influence rates of adoptionof adoption

Consumer BehaviorConsumer Behavior

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

Theories of MotivationTheories of Motivation

The most familiar human motivation The most familiar human motivation theories are from the works of Marshall, theories are from the works of Marshall, Freud, Veblen, Herzberg and Maslow.Freud, 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 technology products, mass media for easy to understand and adopt for easy to understand and adopt products.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 Forecast based on sampling

consumers and extrapolatingconsumers and extrapolating

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

Focus on gathering consumer Focus on gathering consumer attitudes and behaviors that will attitudes and behaviors that will affect adoption interest and ratesaffect adoption interest 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 Early adopters asked to give their reactions about wearable computing reactions about wearable computing features and applications and interest in features and applications and interest in smart fabricssmart 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 24 questions @ their technology use and interest in wearable computersand interest in wearable computers

Launched December 3, 2003Launched December 3, 2003 A total of 256 people (97 men & 157 A total of 256 people (97 men & 157

women) responded.women) responded. Survey respondents were mostly Survey respondents were mostly

women ages 31-40 who work in the DC women ages 31-40 who work in the DC metro area and make $50,000 to metro area and make $50,000 to $74,999 a year as a trained $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 computer features and integration with smart fabricsfabrics

Launched February 14, 2003Launched February 14, 2003 A total of 90 people responded with 15 men and A total of 90 people responded with 15 men and

78 women. 78 women. Women, 25-40 age range, work in the Women, 25-40 age range, work in the

technology, communications or design technology, communications or design profession, live in the DC metro area, annual profession, live in the DC metro area, annual income of $40K-$75K a year. Currently own income of $40K-$75K a year. Currently own multiple mobile technologies. 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 Joe, a 24-year-old Korean male who lived in the DC metro area. who lived in the DC metro area.

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

He owns a digital camera, laptop, He owns a digital camera, laptop, PDA, smart phone, and MP3 PDA, smart phone, and MP3 player. 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 Feedback about price and

marketingmarketing

Data Collection – Pre-Data Collection – Pre-existing attitudes and existing attitudes and expectationsexpectations

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 Mike commented, “I thought it would be cool

and life changing, and it ended up being and life changing, and it ended up being

mediocre and not that interesting.”mediocre and not 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 Dick Tracy, Star Trek, Matrix, James

Bond (8 out of 256)Bond (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 Exchanging business cards by shaking hands or a really dumb shaking hands or a really dumb hat that tells me temperature and hat that tells me temperature and humidityhumidity..

The geek sitting on the fountain The geek sitting on the fountain scaring the pigeons. scaring 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 Concerns about always being

connectedconnected

Concern –Always Concern –Always ConnectedConnected

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.

Concern – Impact on Concern – Impact on Social InteractionsSocial Interactions

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

represented as a video image.represented as a video image.

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 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 as I was driving. With the device on I had a hard time at times keeping focus even though all I was doing was at times keeping focus even though all I was doing was

driving and trying to avoid paying attention to the driving and trying to avoid paying attention to the screen. It has a way of creating tunnel vision. This screen. It has a way of creating tunnel vision. This

was something that I had noticed earlier when I tried was something that I had noticed earlier when I tried to talk to co-workers with a Word document up. I was to talk to co-workers with a Word document up. I was

able to focus on their face but the rest of their body able to focus on their face but the rest of their body would wash out.” – Joe, daily test subjectwould wash 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 visibility2. Improving the input mechanism3. 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 Focus group and

daily use found it daily use found it impossible to useimpossible to use

Survey respondents Survey respondents were more were more interested in HMD interested in HMD displays than 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 Focus group and daily use participants wanted different input participants wanted different input devicesdevices

““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 wearable, it’s not an augmentation but a tremendous

handicap.” Alex Lightman, Charmed Technologieshandicap.” Alex 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 Features – Operating SystemSystem

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

Interest in Wearable Interest in Wearable Computers + Smart Computers + Smart FabricsFabrics

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

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

fashions changefashions change

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 The

MatrixMatrix))

Interest in PurchasingInterest in Purchasing

No respondent was interested in No respondent was interested in purchasing the Poma without purchasing the Poma without improvementsimprovements

Consumers were thought $1200 was to Consumers were thought $1200 was to high, and were comfortable with a high, and were comfortable with a price range of $400-$700price range of $400-$700

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

Pivotal “Killer App”Pivotal “Killer App”

Ability to access mobile Ability to access mobile InternetInternet

Wireless InternetWireless Internet

The evolution and The evolution and current state of WiFi current state of WiFi and cellular networksand cellular networks

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 Standards are composed of agreed upon rules or models that outline upon rules or models that outline principles and practices to follow principles and practices to follow that will ensure interoperability. that will ensure 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 Electromagnetic waves carry voice and data from the mobile device to a receiver and then from the mobile device to a receiver and then on to another wireless device or the Internet.on to another 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 Electromagnetic waves travel at the speed of light. light.

Higher frequencies (cellular) bounce off Higher frequencies (cellular) bounce off obstaclesobstacles

Wireless Internet - WiFiWireless Internet - WiFi

WiFiWiFi Pros: Pros:

Free accessFree access Ability to support high data transfer Ability to support high data transfer

ratesrates 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 Infrastructure can’t yet support high

data demands or consistent connectiondata demands or consistent connection

Current State of Wireless Current State of Wireless Internet Internet

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

Wearable computing firms should move Wearable computing firms should move toward arranging cellular agreements toward arranging cellular agreements so that consumers will have the ease of so that consumers will have the ease of use associated with cellular supported use associated with cellular supported computing. 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 Features of the Improved Consumer Wearable ComputerConsumer Wearable 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 Is supported by cellular infrastructure

and offers cellular phone featuresand offers 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 Is the Wearable Computing Industry ready for consumers’ Industry ready for consumers’

interestinterest

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