Abstract
Radio frequency identification (RFID) has become an increasingly widespread technology. However, there has been limited research on it with regard to customer-related issues. This paper proposes a theoretical model to investigate customer perceptions of privacy risk and trust for the retail stores with all RFID tagged items. The results suggest that customers with high sensitivity to privacy risk have a lower degree of trust in RFID applications. However, benefits to customers are incentives for retailers to both mitigate customer worries about their privacy being invaded and increase their trust in retailers. One way to do this is by implementing strong data security systems. This research thus presents a set of guidelines to help retailers successfully apply this technology in their stores.
Highlights
Radio frequency identification (RFID) has been widely and successfully adopted in inventory management and implemented large-scale solutions throughout the entire supply chains by a number of world-class retailers and even planning item-level, i.e., for all items, deployment in consumer goods
This paper proposes a theoretical model to investigate customer perceptions of privacy risk and trust for the retail stores with all RFID tagged items
The results suggest that customers with high sensitivity to privacy risk have a lower degree of trust in RFID applications
Summary
RFID has been widely and successfully adopted in inventory management and implemented large-scale solutions throughout the entire supply chains by a number of world-class retailers and even planning item-level, i.e., for all items, deployment in consumer goods. Retailers claim that such applications can improve customer services, including allowing real-time inventory control and locating, reducing time spent in customer checkout lines, and even providing customized shopping information during and after sales. The purpose of this study is to propose a model which explains the impacts of retail RFID settings on customer trust
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