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Applying RFID technology in the retail industry – benefits and concerns from the consumer’s perspective

Author

Listed:
  • Ádám Novotny

    (Institute of Economic Science, Eszterházy Károly College)

  • Lóránt Dávid

    (Institute of Economic Science, Eszterházy Károly College)

  • Hajnalka Csáfor

    (Institute of Economic Science, Eszterházy Károly College)

Abstract

This paper discusses the benefits and costs of RFID (Radio Frequency Identification) technology in the retail sector. RFID is an enabling technology for the Internet of Things (IoT) concept, which constitutes a new vision of the Internet as a medium and forum that expands into our everyday lives and connects us virtually to all of the objects that surround us. This paper gives a balanced view of RFID in retailing by showing its current and potential benefits and costs, in particular from the consumer’s perspective. The authors also present the findings of a survey that examined the attitudes of Hungarian consumers towards the potential threats of RFID, and conclude that these attitudes are part of a larger psychological construct, which embraces opinions and attitudes towards new information and communications technologies in general. Significant relationships between consumer demography and attitudes towards RFID applications were also revealed. The paper suggests a solution to the privacy problem of current RFID applications, which has been elaborated by researchers of the IoT Research Institute at the Eszterházy Károly College in Hungary: if RFID technology were integrated with NFC-enabled mobile phones that included a user interface, consumers would be able to gain control over radio frequency communication.

Suggested Citation

  • Ádám Novotny & Lóránt Dávid & Hajnalka Csáfor, 2015. "Applying RFID technology in the retail industry – benefits and concerns from the consumer’s perspective," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(39), pages 615-615, May.
    • Handle: RePEc:aes:amfeco:v:39:y:2015:i:17:p:615
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    References listed on IDEAS

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    1. Heather E. Sill & Sandra L. Fisher & Michael E. Wasserman, 2008. "Consumer reactions to potential intrusiveness and benefits of RFID," International Journal of Information Technology and Management, Inderscience Enterprises Ltd, vol. 7(1), pages 76-97.
    2. Ngai, E.W.T. & Moon, Karen K.L. & Riggins, Frederick J. & Yi, Candace Y., 2008. "RFID research: An academic literature review (1995-2005) and future research directions," International Journal of Production Economics, Elsevier, vol. 112(2), pages 510-520, April.
    3. Müller-Seitz, Gordon & Dautzenberg, Kirsti & Creusen, Utho & Stromereder, Christine, 2009. "Customer acceptance of RFID technology: Evidence from the German electronic retail sector," Journal of Retailing and Consumer Services, Elsevier, vol. 16(1), pages 31-39.
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    Citations

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    Cited by:

    1. Hu, Sen & Hu, Bin & Cao, Ya, 2018. "The wider, the better? The interaction between the IoT diffusion and online retailers’ decisions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 509(C), pages 196-209.
    2. Chaang-Iuan Ho & Tzong-Shyuan Chen & Chin-Pei Li, 2023. "Airbnb’s Negative Externalities from the Consumer’s Perspective: How the Effects Influence the Booking Intention of Potential Guests," Sustainability, MDPI, vol. 15(11), pages 1-28, May.
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    5. Tan, Weng Chun & Sidhu, Manjit Singh, 2022. "Review of RFID and IoT integration in supply chain management," Operations Research Perspectives, Elsevier, vol. 9(C).
    6. Ana Brochado & Paula Rodrigues & Ana Sousa & Ana Pinto Borges & Mónica Veloso & Mónica Gómez-Suárez, 2023. "Resilience and Sustainable Urban Tourism: Understanding Local Communities’ Perceptions after a Crisis," Sustainability, MDPI, vol. 15(18), pages 1-21, September.

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    More about this item

    Keywords

    Internet of Things (IoT); RFID; retail sector; customer value; consumer privacy;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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