Tracking customer behaviour in fashion retail using RFID

Abstract

Purpose The purpose of this paper is to explore how tracking of products by the use of radio frequency identification (RFID) technology may describe customer behaviour in real-time. Design/methodology/approach The study was conducted as a field experiment, where a commercially available RFID platform was deployed in the fitting rooms of a fashion retail store. Findings The study demonstrates an application of in-store RFID tracking to describe customer behaviour, and some practical challenges of utilising such technology. An example typology of four fitting room traits was constructed based on the data collected. Practical implications Different customer types most likely require and respond differently to attention from the personnel operating the fitting room area. By identifying customer behaviour in real-time, it is possible to deliver “best practice” shop stewardship and create a more personalised retail experience. Originality/value The study is based on real-life retail settings, rather than anecdotal management observations or economic and demographic indicators. To the best of the authors’ knowledge, few contributions combine RFID and consumer behaviour outside conceptual work or laboratory experiments.

To what extent luxury retailing can be smart?

“…The benefits emerging from smart retailing are (i) greater availability of products, services, and information (i.e. the usage of apps for locating products in the physical stores allow retailers to collect data on consumers' behaviour within the store in terms of searched products (Landmark and Sjøbakk, 2017); (ii) knowledge sharing between firms and consumers (such technologies as mobile apps allow firms to create and submit personalized offer for each consumer) (Blázquez, 2014); and (iii) smart partnerships among retailers, sellers (e.g. frontline employees), and consumers through the building of smart partnerships (which overcome traditional vendorclient relationships) (Pantano and Timmermans, 2014).…”

Human-Computer Interaction in Physical Retail Environments and the Impact on Customer Experience: Systematic Literature Review and Research Agenda

“…Smart fitting rooms can support product choices by providing additional product information and recommendations [27]. The technology in the background of smart fitting rooms is the combination of RFID chips attached to the price tags of fashion articles and sensors installed in fitting rooms [18,27]. The sensors are able to detect the products and display detailed information on the monitor, such as the brand's name and logo, as well as the price of the product [27].…”

“…For example, Roy et al [11] investigated the moderating effect of technology readiness on the customer's attitude and behavioral intentions when using smart technologies, such as smart checkouts, personal shopping assistance, and augmented reality. Other researchers examined the application, functionality, and adoption of RFID (Radio Frequency Identification) equipped retail stores in a complex field study [18]. Willems et al [12] extensively reviewed and summarized 54 digital retail technologies from various manufacturers along the customer's path of purchase.…”

Reshaping of the retail environment due to internet as a global competitor

“…Paradoxically, the answer can be found in the field of mobile marketing. Despite the fact that smartphones and other mobile devices caused a decrease in retail sales and thus a large distance of customers from the physical point of sale, mobile marketing is currently offering a solution to such a problem [2]. There are two areas of mobile marketing whose concept is based on the location and proximity of the customer to the physical point of sale, that is, to the retail store.…”