Customers Acceptance of Virtual Fitting Technology - Term Paper Example

CHAPTER 2 RESEARCH BACKGROUND This chapter consists of two parts; first part covered the current market trends of Virtual Dressing Technology and a general background of the companies who provided such type of technology, as well as the apparel e retailing who adopt it. Second part of this chapter focused on one specific type of VDT technology; MyVirtualModel in terms of its operations and adoptions. Issues facing e-tailers in adopting the MVM technology have also been discussed in this chapter. 2.1 Virtual Dressing Technology in E-retailing 2.1.2 What is VDT? As online apparel sales continue to grow, e-tailers are looking for ways to improve services or website usability to ensure success in a highly competitive environment. However problems associated with online shopping for apparel, such as the inability of providing real shopping experiences for customers to shop online (Cho, 2007), are seen as a major obstacle for apparel e-tailers to move their businesses forward. To overcome this limitation, some e-commerce companies introduced a virtual reality technology, which aims to allow consumers to create a virtual model to personalize and try clothes online. This type of virtual experience is generally named as Virtual Dressing Technology (Cho, 2007; Stephen et al, 2007) Some companies that have more advanced technology can combine body-scanning function, or customers can key in individual body measurement to create the virtual model, which can more accurately reflect themselves. This type of technology is also known as Virtual Fitting Technology. 2.1.2 Adoption of VDT in apparel E-retailing There are few terms used in the literature to refer to this type of virtual technology used in e-retailing: Virtual Dressing Technology (VDT), Virtual Fitting Technology (VFT), Apparel Dress Model Technology, Size prediction or Virtual Models (Cho, 2007;Chapman, 2001; Lin, 2007; Lawler and Joseph, 2006; Stephen et al, 2007). Depending on the individual researchers, the terms usually have similar meaning, which is to allow customers to create a virtual version of themselves to “try on” clothes or mix-and-match the items before they make a purchase decision. 2.1.3 Perceived benefits of implementing VDT The implementation of the VDT in online apparel shopping site has claimed to benefit both the customers and e-tailers. From the customers’ point of view: 1) VDT can increase the interactivity between both parties since customers are allowed to personalised the virtual model and try-on the apparel through the website. Jordan (2003) claimed that the Virtual Models offer convenience and sense of empowerment to shoppers by making e-retailing more interactive by helping customers to make purchasing decision. In addition, Wolfinbarger and Gilly (2000) stated that it was found that the increase in customer retailer interactivity could attract more online shoppers. 2) Since e-tailers who adopt VDT technology are providing customers with extra services, online shopping experiences is continuously being improved. 3) The customers are able to visualize clothes online, getting suggestions on better fitting solution. These functions eliminate the problems associated with online purchase of apparel related to accuracy of fit. Interactivity, shopping experiences, visualising clothes and purchasing apparel with best fitting are important since these are the values that are being looked for by the customers (Goldsmith and Flynn, 2004). The customers concern the values of the products or services offered by the e-tailers and all the abovementioned benefits will boosts the customers’ interest since it is through those benefits that they will get the value for their money. From the e-tailers prospective, implementation of VDT would be an increase in sales and reduction of the product return rate. Lands’ End, Inc. is an example of successfully implementing the VDT technology on its online shopping site. APR Newswire (2001) report indicated its improvement on online profitability in 2002. Through the years, this company was able to enhance their bottom-line profitability by increasing revenues while cutting costs. Costs are reduced because of more spending or buying by clients and low return of items which directly lowered shipping as well as handling costs. (Newswire, 2001). 2.2 Empirical evidence and adoption of VDT in E-retailing A report named “Sizing up Virtual Fit Technology” written by Chapman (2001) found on the techexchange.com stated that over 30% of the apparel brought online are returned to the e-tailers due to fit problems. More and more e-tailers are implementing VDT on their websites aiming to attract more shoppers to visit and shop on their site, and most importantly to reduce the return rates of products. According to Chapman (2001), there are three major types of VDT available on the Internet. These are: 1) 3-D mannequin with fixed measurement; Browzwear, Clarity Fit, DigiBits Interactive, Ezsize and myfit.com have similar data input requirements and visual effects. Customers are asked to register their account on these sites and set up their individual profile with fixed measurement. These vary from 5 measurements (youfit.com) to 32 measurements (Enfashion). Aside from this, Enfashion considers also the clothing manufacturers’ DFX image of the characteristics of the fabric such as weight, strength, elasticity and others (Fan et al., 2004). All of these sites provide instructions and illustrations to help customer to understand the proper method of measurement and how the system functions. Apparel E-tailers which signed contract with these companies include Gap, Saks and Ann Taylor. 2) 3D Mannequin with customer’s individual measurement; The second type of VDT is similar to the first , but instead of fixed measurement, customers enter their individual measurement which makes the virtual model more accurately reflecting the real figure of the customer, hence more realistic. Companies such as MyVirtualModel and Imaginarix are offering this type of service. Imaginarix’s virtual dressing room solution called “Click & Dress” even allows the users to upload their own images to try on the garments (Just-style, 2001). Apparel E-tailers adopting such technology include Otto-Versand, landsEnd, JCPenny, Adidas, and Sears e.t.c. 3) Fit prediction and recommendation; The third type of VDT requires the client to give their own best-fitting, most-liked clothes. Afterwards, the company will return a list of the apparels that most likely fits the given profile. Companies such as Right size and Virtue 3D are providing such function. However, this type of function is not widely accepted by the apparel e-tailers because this function can only predict patterns in clothing and fitting (Kravetz, 2000). The outcome may not be as accurate as the 3D mannequin function mentioned above. Table 1 below was adapted from the “Online Virtual Fit Technology Comparison Chart” found on the Techexchange website. Researcher modified the table to make sure information is up to date since some clients has withdrawn the service from their websites. Table 1: Online Virtual Fit Technology Comparison Chart (Source: http://www.techexchange.com/thelibrary/resources/VirtualFitChart.html, Adapted and modified on 25 Nov, 2007) 2.3 MyVirtualModel 2.3.1 What is MyVirtualModel? Among all types of VDT technology mentioned above, MVM is the most comprehensive virtual online shopping application (Kravetz, 2000) found on the Internet. The technology was invented in 1990 when Guay and St-Arnaud joined forces to start a multimedia firm called Public Technologies Multimedia Inc. (PTM), it provided multimedia services to corporations (innovationstrategy, 2007) and had been considered as a breakthrough in online customer service (fashiontech.wordpress.com). The company works like a department store where various clothing lines are displayed and one can actually do the fitting on-line. By plugging in the values of the geometric features of an individual, such as height, weight and a few general body characteristics customers can try on different apparels and see the combination of different garments (Tedeschi, 2007; Senanayake, 2001) In addition, customers can also modify the hair appearances, skin tone and other details to make the virtual model look more realistic. Apparel E-retailers, which signed a contract with MVM can choose between the My Virtual Model™ Dressing Room and My Fit systems, some companies use both. These two major functions enables customer to try on the clothes on their individually personalized model and MyFit function offers customers with suggestion on whether the garments are in correct sizes and best fits. The apparel retailers using this technology includes Marie Claire, Lands’ End, Sears, Speedo, Adidas and H&M (MVM.com, 2007) 2.4 Issues in adopting MyVirtualModel for apparel E-retailing The invention of MVM technology was claimed to increase customers shopping experience. According to Lawler and Joseph (2006), factors such as website functionality, advance richness of technology, accessibility, convenience and website security are key factors impacting customers’ experience during online shopping. Benefits that MVM offers have an impact on customers’ online shopping experience in terms of its website usability, richness of media and others. However, factors such as accuracy of fit will not count as benefits brought by MVM because it is hard to predict an accurate fit. Chapman (2001) addressed that the accuracy of fit prediction offered by MVM is still a concern for some customers. Writer claimed that while some shoppers enjoyed the luxury of online shopping, others had hesitations due to fit issues. These “would-be” customers are concerned with the accuracy in the prediction of the virtual models available on the site. Jordan (2003) also stated that even online shoppers are instructed to create virtual models of themselves, these commercially viable models are always misleading for the customers. The inaccuracy may due to texture and actual fitting of the garments. Certain garments may look good online but does not feel good in real. Lack of touch is still an issue E-tailers cannot overcome at this stage. In addition, costs for implementing MVM is a main concern for e-retailers. Although no reports review the price of implementing this technology, researcher speculates that the price is high since only very small portions of well known large apparel e-retailers have adopt such technology. According to Fiore and Jin (2003), this kind of interactivity functions requires an extensive database for storing the images, as they need “turn the garment” into digital images. The success of MyVirtualModel.Inc depends on how many apparel e-retailers are willing to implement this technology. E-retailers’ decision on implementing the technology based on how many customers are demanding and willing to use this technology. Factors such as the real usefulness, ease of use as well as functionality of what MyVirtualModel can offer can be critical factors impacting customers’ decision to use it. Next chapter gives an in-depth literature review aiming to investigate what are the determinants on the customers’ acceptance of the MVM technology. Read More