Privacy-value-control harmonization for RFID adoption in retail

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. Disciplines Physical Sciences and Mathematics Publication Details This article was originally published as Renegard, BD & Michael, K, The privacy-value-control harmonization for RFID adoption in retail, IBM Journal of Research and Development, 53(2), 2009, 1-16. Original journal information available here This journal article is available at Research Online: http://ro.uow.edu.au/infopapers/713 Title: The privacy-value-control harmonization for RFID adoption in retail Authors: B.D. Renegar, K. Michael Abstract: Over the past decade organizations have aggressively pursued the use of radio frequency identification (RFID) as a means to better identify, control and track stock throughout the supply chain. RFID has the potential to revolutionize the retail industry. However the application of this automatic identification (auto-ID) technology to consumer goods has resulted in widespread concern over potential privacy threats, primarily due to the aspect of subject-to-object traceability. As a consequence, privacy has come to be perceived as a barrier to RFID adoption in retail, as consumers seek to control data about themselves. When investigating other complex technologies, it becomes apparent that consumers often sacrifice perceived privacy and control to take advantage of some form of value afforded by the given technology (e.g. the mobile telephone). The interplay between privacy, value, and control must be harmonious to encourage future acceptance of RFID by consumers. Through the investigation of multiple case studies of auto-ID technologies and services this study aims to discover the factors influencing the development of the privacy-value-control (PVC) trichotomy. The case studies are supported by an online survey which aims to explore the role education and awareness play in influencing perceptions towards RFID’s value proposition and its potential privacy threats. Over the past decade organizations have aggressively pursued the use of radio frequency identification (RFID) as a means to better identify, control and track stock throughout the supply chain. RFID has the potential to revolutionize the retail industry. However the application of this automatic identification (auto-ID) technology to consumer goods has resulted in widespread concern over potential privacy threats, primarily due to the aspect of subject-to-object traceability. As a consequence, privacy has come to be perceived as a barrier to RFID adoption in retail, as consumers seek to control data about themselves. When investigating other complex technologies, it becomes apparent that consumers often sacrifice perceived privacy and control to take advantage of some form of value afforded by the given technology (e.g. the mobile telephone). The interplay between privacy, value, and control must be harmonious to encourage future acceptance of RFID by consumers. Through the investigation of multiple case studies of auto-ID technologies and services this study aims to discover the factors influencing the development of the privacy-value-control (PVC) trichotomy. The case studies are supported by an online survey which aims to explore the role education and awareness play in influencing perceptions towards RFID’s value proposition and its potential privacy threats.