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Privacy-value-control harmonization for RFID adoption in retail

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2 Author(s)
Renegar, B.D. ; IBM Global Business Services, IBM Centre, 601 Pacific Highway, St. Leonards, NSW, Australia 2065 ; Michael, K.

Privacy concerns have, at least in part, impeded the adoption of radio frequency identification (RFID) in retail. The adoption of other automatic identification (auto-ID) applications shows that consumers often are willing to trade their privacy or their control of personal information against some value afforded by the application. In this paper, the interplay between privacy, value, and control is examined through a literature survey of four auto-ID applications: mobile phone, electronic toll collection, e-passports, and loyalty programs. The consumer value proposition for the use of RFID in retail is investigated through an online survey exploring end-user perceptions. The results of the survey are: 1) the customer value proposition has not been communicated well to customers; 2) privacy concerns are higher than other previously adopted applications despite similar privacy issues; and 3) harmonization of privacy, value, and control is likely to be achieved only after adoption, when customers will be educated through experience with the application.

Note: The Institute of Electrical and Electronics Engineers, Incorporated is distributing this Article with permission of the International Business Machines Corporation (IBM) who is the exclusive owner. The recipient of this Article may not assign, sublicense, lease, rent or otherwise transfer, reproduce, prepare derivative works, publicly display or perform, or distribute the Article.  

Published in:

IBM Journal of Research and Development  (Volume:53 ,  Issue: 2 )