The Impact of Consumer Perceptions of Information Privacy and Security Risks on the Adoption of Residual RFID Technologies

In today’s global competitive environment, organizations face a variety of challenges. Continuous improvement in organizational efficiencies and improving the entire supply chain are necessary to stay competitive. Many organizations are adopting radio frequency identification technologies (RFID) as part of their information supply chains. These technologies provide many benefits to the organizations that use them. However, how these technologies affect the consumer and their willingness to adopt the technology is often overlooked. Many of these RFID tags remain active after the consumers purchase them. These RFID tags, placed in a product for one purpose and left in the product after the tags have served their purpose, are residual RFIDs. Residual RFID technology can have many positive and negative effects on consumers’ willingness to buy and use products containing RFID, and thus, on the business’s ability to sell products containing RFID. If consumers refuse to buy products with residual RFID tags in them, the business harm is greater than the business benefit, regardless of any gain in supply chain efficiency. In this study, we outline some of the advantages and disadvantages of Residual RFID from the consumer perspective, then follow up with an in depth survey and analysis of consumer perceptions. Using structural equation modeling (SEM) we demonstrate that consumers’ perceptions of privacy risk likelihood and privacy risk harm negatively impact their intentions to use this technology. The implications of these findings need to be considered before the pending implementation of residual RFID technologies in the supply chain on a mass scale

Consumers' perceptions of item-level RFID Use in FMCG: A balanced perspective of benefits and risks

This research explores how perceived consumer benefits affect the perceived privacy risks from implementation of Radio Frequency Identification (RFID) tags at an item-level in the Fast Moving Consumer Goods (FMCG) industry. Two new categories measure the benefits and risks: in-store and after-sales. These specific categories allow the respondents' willingness to accept RFID to be evaluated using a quantitative survey focused on the primary household grocery purchasers within the USA. The results suggest differences in perceptions of the in-store and after-sales risks and benefits of RFID use. While consumers are aware of privacy risks while using RFID technology, they would be willing to use the technology if sufficient benefits are available. This research moves the discussion away from a focus on consumer privacy issues to a balanced privacy/benefits approach for consumers and how that might affect their technology acceptance, suggesting that careful management of consumer benefits might allow FMCG firms to introduce RFID technology to support their global supply chains

The Impact of Proximity Marketing on Consumer Reactions and Firm Performance: A Conceptual and Integrative Model

Firms are increasingly using “Proximity Marketing”, an emerging form of marketing built upon advances in wireless and social technology. This paper draws upon the literature in technology innovation, marketing and psychology to propose an integrative research model that combines technological and consumer characteristics in an adoption model that draws heavily on consumer values as an important antecedent of Proximity Marketing adoption. Few studies have focused on the impact of Proximity Marketing from a marketing perspective and none by combining the inherent technological characteristics of automatic identification technology with individual consumer traits such as their values. The model also contributes by simultaneously proposing adoption consequences both for the consumer and the firm

Intention to use RFID-enabled services : theoretical review and case study

This thesis attempts to shed some light over the antecedents of customer’s intention to use Radio Frequency Identification (RFID)-enabled services. Former research has primarily been concerned with the acceptance and implementation of RFID systems in cost-conscious businesses mainly focusing on enhancing efficiency in supply managements or the logistics process. As RFID-technology is increasingly introduced into the world of the consumers, little research has been conducted in the pursuit to understand these intention and adoption processes. A research model is proposed. Theoretically founded on the Unified Theory of Acceptance and Use of Technology (UTAUT), the model is extended with three additional direct determinants namely; Perceived Risk Harm, Emotions, and Experience. The extension is based on empirical studies and additional affective theories. In addition, situational context and perception of control are selected as moderators. The potential influences of moderating variables have up until now been poorly investigated, and by adding these to the model a more holistic picture of the adoption processes is suggested. 560 independent survey respondents make up the data material from which the conclusions have been drawn. The results indicate that extending UTAUT with the suggested antecedents of intention does not significantly add to the predictive validity of the model, with only experience as an added antecedent posing any influence on intention. Only two UTAUT determinants were reported to exert any significant influence on intention. Performance expectancy (system characteristic) and anxiety (personality trait) were found to be robust determinants of intention unaffected by both situational context and perception of control

Explaining Adoption of Pervasive Retail Systems with a Model based on UTAUT2 and the Extended Privacy Calculus

The advent of e-commerce puts traditional retail companies under a lot of pressure. A way retailers try to attract more customers to their physical stores is by offering online services on the retail sales floor. Such services are enabled through pervasive retail systems. These systems, however, do not only offer new opportunities but also bear risks for retailers because they heavily depend on privacy-related data, which customers could perceive as a potential privacy threat. In the present paper, we thus investigate the antecedents of customers’ usage intention towards such systems and the trade-off between the perceived benefits and the perceived privacy costs that are associated with their use. To this end, we propose a model based on the most recent version of the Unified Theory of Acceptance and Use of Technology (UTAUT2) and the Extended Privacy Calculus Theory. We validate our model considering a smart fitting room application and show that the model is able to explain 67.1% of the variance in the behavioral intention to use the system and 43.1% of the variance in a person’s willingness to disclose private information. Our results can be leveraged to design pervasive systems that are perceived as valuable instead of privacy threatening

Semantic discovery and reuse of business process patterns

Patterns currently play an important role in modern information systems (IS) development and their use has mainly been restricted to the design and implementation phases of the development lifecycle. Given the increasing significance of business modelling in IS development, patterns have the potential of providing a viable solution for promoting reusability of recurrent generalized models in the very early stages of development. As a statement of research-in-progress this paper focuses on business process patterns and proposes an initial methodological framework for the discovery and reuse of business process patterns within the IS development lifecycle. The framework borrows ideas from the domain engineering literature and proposes the use of semantics to drive both the discovery of patterns as well as their reuse

Understanding the Organizational Impact of Radio Frequency Identification Technology: A Holistic View

The adoption and deployment of radio frequency identification technology (RFID) in retail supply chains results in an influx of data, supporting the development of better information and increased knowledge. This impacts not only an organization’s information technology infrastructure, but also the quality and timeliness of its business intelligence and decision-making. This paper provides an introduction to RFID technology and surveys a variety of its applications, then examines and discusses the impact of RFID technology on organizational IT infrastructure, business intelligence, and decision-making. Propositions are advanced to provide the basis for the development of specific hypotheses to be empirically tested in future studies, and a conceptual research framework for understanding the organizational impact of RFID technology is proposed. Available at: https://aisel.aisnet.org/pajais/vol2/iss2/3

A study of the relationship between radio frequency identification (RFID) technology and lean manufacturing

The primary purpose of this research effort is to investigate the relationship between Radio Frequency Identification (RFID) technology and reducing waste in a manufacturing setting where a lean manufacturing system has been implemented. This research identifies implementation areas where RFID can have the greatest impact on work-in-progress management, inventory management, manufacturing assets tracking and maintenance, and manufacturing control in lean manufacturing environments. The study specifically focuses on how RFID can help identify, reduce, and eliminate the seven common types of waste identified by Taiichi Ohno in the Toyota Production System. These seven include overproduction, waiting time, inefficient transportation, inappropriate processing, unnecessary inventory, unnecessary motion, and rejects & defects. The study expands the knowledge of manufacturing waste reduction through the use of RFID technology. Through the use of a forty-question survey, this research involved the collection, review, analysis, and classification of the perceptions of participants across six U.S. manufacturing industries regarding where RFID can have the greatest impact on lean manufacturing. Data collection involved a structured survey administered to 1900+ members of the Society of Manufacturing Engineers (SME). Based on the perceptions of the respondents, RFID technology can be used in several areas/functions/locations within manufacturing that helps to identify and reduce the seven types of manufacturing waste and that RFID technology may improve work-in-progress management, inventory management, and manufacturing control. The study concluded that the reduction of manufacturing waste can be achieved through the deployment of RFID technology in 23 of 35 potential applications. This study fulfills an identified need to study the implementation areas where RFID can have the greatest impact and add value within lean manufacturing settings. The research includes implications for industry practitioners, RFID suppliers, researchers and scholars by providing a better understanding of the benefits of RFID in manufacturing

The Influence of Technology Characteristics on Privacy Calculus: A Theoretical Framework

The notion of privacy calculus has been used to explain the risk-benefit analysis information technology users perform when asked to provide personal information. This study extends the privacy calculus model by proposing a theoretical framework in which technology characteristics (radicalness and complexity) have moderating effects on the benefit-value and risk-value relationships. The framework also suggests that perceive benefit is a multidimensional construct formed by utilitarian, hedonic, and social benefits. This study is contextualized for smartphone users who are faced with the decision to allow access to their personal information in order to use mobile applications. Propositions to guide future research are developed and implications of the proposed framework are discussed