An empirical study of the anticipated consumer response to RFID product item tagging

Abstract

PurposeThis empirical study of consumer/shopper response to radio frequency identification (RFID) product item tagging anticipates what is likely to take place in the retail marketplace. Using the theories of procedural justice/fairness, expected utility, and prior literature on personal privacy the purpose of this study is to use the survey method to measure consumer willingness to purchase RFID‐tagged product items within the Canadian context. Procedural justice/fairness is operationalized using the implementation of the Personal Information Protection and Electronic Documents Act (PIPEDA) enacted in Canada on January 1, 2004.Design/methodology/approachThis study used the survey questionnaire method after the sample participants (N=381) were exposed to an experimental treatment. Students and faculty members of the Faculty of Business Administration, University of New Brunswick Fredericton, Canada participated in this study.FindingsConsumers responded positively to the procedural justice concept using PIPEDA law in Canada. The less privacy sensitive group valued the specific RFID benefits, was willing to buy the tagged items to obtain specific benefits, was willing to pay more for these items, and was also less concerned about selected RFID issues.Practical implicationsPractical suggestions are given to retailers thinking of implementing product item RFID tagging to make their initiatives more successful.Originality/valueThis is one of the first empirical studies on the likely consumer response to product item tagging based on solid theoretical foundations.