ABSTRACT
In this chapter, we discuss the far-reaching applications of a wireless tracking technology, radio frequency identification (RFID), and how it could affect customers’ relationships with supply chains. Despite gains for many stakeholders in the retailing sector, as the literature review shows, we still know little about consumers’ attitudes toward privacy, ethical implications and perceived rewards. An exploratory survey ascertained consumers’ attitudes toward RFID adoption regarding the benefits it might provide, by enhancing loyalty schemes and rewards, as well as guarantees of privacy. This survey suggests that the lack of knowledge about what RFID does and what companies do with the information gathered is a problem: Privacy issues are a principal matter of concern. Because the benefits such a technology would bring are unclear, the level of dissatisfaction 246about the rewards from loyalty schemes is high. In our opinion, more research exploring consumers’ beliefs about the possible adoption of RFID would benefit our understanding of consumers’ attitudes.
We will briefly review literature detailing RFID technology and its applications, as well as issues associated with its adoption; discuss privacy, trust and risk-perceptions in connection with consumer acceptance; analyse and discuss the findings of a consumer survey in the United Kingdom; and provide conclusions and recommendations for those stakeholders involved with RFID technology.
