Facial Pattern Recognition in Retailing: Acceptance by shoppers personal targeting and profits of fashion retailers
(R2024-122505)

AUTHORS

Amir Heiman, Hebrew University; Udo Wagner, University of Vienna

ABSTRACT

This study analyzes the adoption of facial pattern recognition (FPR) technologies within the fashion retail sector. FPR technologies enable retailers to personally target product assort-ments offered to customers’ socio-demographic, and physical profiles. In addition to segmen-tation, the technology is capable of identifying mood states, thereby potentially influencing mood-based unplanned purchases. While better product matching, which is based on FPR, can reduce the likelihood of returns, the increased probability of unplanned and uncontrolled purchases due to emotional manipulation increasing the number of product returns. The cur-rent study develops a theoretical model to analyze the effects of adopting FPR on consumer choices and retailer profitability.