Customer acceptance of RFID technology: Evidence from the German electronic retail sector

Abstract

Radio frequency identification (RFID) represents a novel technology that promises to deliver various benefits for customers in retail settings. However, up until now RFID technology has seldom been tested and drivers of customer acceptance remain unclear. Against this background, the present multi-method study seeks to explore customer acceptance of RFID technology at a German electronic retail corporation with regard to the technology acceptance model (TAM). Our results add to the literature as follows. First, RFID technology has predominantly been analyzed in business-to-business settings, whereas we analyzed an electronic retailing company and explored the customers’ point of view. Second, the TAM could be confirmed on the basis of a stratified random sample of 206 costumers for the present retail setting. In particular, we show that ease of use and security concerns are relevant. Third, despite the overall appropriateness of the TAM, refinements to the model seem to be needed. Therefore, we identify the overall attitude of customers toward novel technologies and data security to be of particular importance. Implications are discussed and future research options are sketched out.