Consumer Value Trumps Perceived Privacy Risk

Author(s):  
Wesley A. Kukard ◽  
Lincoln C. Wood

This chapter reviews past radio frequency identification (RFID) literature within the fast-moving consumer goods (FMCG) industry and the impact of consumer benefits on the perceived risks of item-level RFID. Two new categories are used to measure this impact; the separation of consumers' interactions with the technology to in-store and after-sales allows the consumers expectation of privacy to changes depending on the surrounding environment. A quantitative survey on primary household grocery purchasers within the USA revealed that while consumers are aware of the associated privacy risks after sale, they would be willing to use the technology, given sufficient benefits. This important step in RFID literature changes the conversation from a privacy risk management focus to a balanced integration of the technology, focusing on consumer benefits to manage the roll-out within the FMCG industry.

Author(s):  
Wesley A. Kukard ◽  
Lincoln C. Wood

This chapter reviews past radio frequency identification (RFID) literature within the fast-moving consumer goods (FMCG) industry and the impact of consumer benefits on the perceived risks of item-level RFID. Two new categories are used to measure this impact; the separation of consumers' interactions with the technology to in-store and after-sales allows the consumers expectation of privacy to changes depending on the surrounding environment. A quantitative survey on primary household grocery purchasers within the USA revealed that while consumers are aware of the associated privacy risks after sale, they would be willing to use the technology, given sufficient benefits. This important step in RFID literature changes the conversation from a privacy risk management focus to a balanced integration of the technology, focusing on consumer benefits to manage the roll-out within the FMCG industry.


2017 ◽  
Vol 25 (1) ◽  
pp. 21-42 ◽  
Author(s):  
Wesley Kukard ◽  
Lincoln Wood

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.


2019 ◽  
pp. 1384-1407 ◽  
Author(s):  
Wesley Kukard ◽  
Lincoln Wood

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.


2008 ◽  
Vol 3 (1) ◽  
pp. 55-70
Author(s):  
Dharmaraj Veeramani ◽  
Jenny Tang ◽  
Alfonso Gutierrez

Radio frequency identification (RFID) is a rapidly evolving technology for automatic identification and data capture of products. One of the barriers to the adoption of RFID by organizations is difficulty in assessing the potential return on investment (ROI). Much of the research and analyses to date of ROI in implementing RFID technology have focused on the benefits to the retailer. There is a lack of a good understanding of the impact of RFID at upper echelons of the supply chain. In this paper, we present a framework and models for assessing the value of RFID implementation by tier-one suppliers to major retailers. We also discuss our real-life application of this framework to one of Wal-Mart’s top 100 suppliers


2012 ◽  
pp. 196-220
Author(s):  
May Tajima

The apparel industry is one of the most rapidly growing sectors of the radio frequency identification (RFID) market, and within it, large retailers have been driving RFID adoption. However, the continuation of this industry’s fast-paced growth is questionable due to the uncertainty associated with how manufacturers, especially small ones, would react to the retailer-led RFID initiative. The literature suggests that the relationship between small manufacturers and large retailers could promote or inhibit RFID adoption among the manufacturers. In order to study the impact of the relationship between small manufacturers and large retailers on the small manufacturers’ RFID adoption decisions, this research develops a 2×2 (two-by-two) game model and conducts outcome stability analysis. The results show that, in the 2×2 game framework, (i) the retailer’s opportunistic behavior is unlikely to occur due to the strong stability associated with the manufacturer’s do-nothing option; (ii) the do-nothing option, however, may lead to missed opportunities for both parties; (iii) the retailer’s pressure tactic is not effective in persuading the small manufacturer to adopt RFID; and (iv) the retailer’s collaborative strategy also does not guarantee the manufacturer’s RFID adoption. The discussion of these results concludes with specific suggestions for how to encourage RFID adoption among the small apparel manufacturers.


Author(s):  
May Tajima

The apparel industry is one of the most rapidly growing sectors of the radio frequency identification (RFID) market, and within it, large retailers have been driving RFID adoption. However, the continuation of this industry’s fast-paced growth is questionable due to the uncertainty associated with how manufacturers, especially small ones, would react to the retailer-led RFID initiative. The literature suggests that the relationship between small manufacturers and large retailers could promote or inhibit RFID adoption among the manufacturers. In order to study the impact of the relationship between small manufacturers and large retailers on the small manufacturers’ RFID adoption decisions, this research develops a 2×2 (two-by-two) game model and conducts outcome stability analysis. The results show that, in the 2×2 game framework, (i) the retailer’s opportunistic behavior is unlikely to occur due to the strong stability associated with the manufacturer’s do-nothing option; (ii) the do-nothing option, however, may lead to missed opportunities for both parties; (iii) the retailer’s pressure tactic is not effective in persuading the small manufacturer to adopt RFID; and (iv) the retailer’s collaborative strategy also does not guarantee the manufacturer’s RFID adoption. The discussion of these results concludes with specific suggestions for how to encourage RFID adoption among the small apparel manufacturers.


2006 ◽  
Vol 25 (1) ◽  
pp. 24 ◽  
Author(s):  
Jay Sing ◽  
Navjit Brar ◽  
Carmen Fong

<span>The adoption of Radio Frequency Identification (RFID) technology by libraries promises a solution that could make it possible to inventory hundreds of thousands of items in their collections in days instead of months. In addition, it would allow patrons to check out and return library property automatically at any time of the day. Besides speeding up checkouts, keeping collections in better order, and alleviating repetitive strain injuries among librarians, RFID promises to provide a better control on theft, nonreturns, and misfiling of a library’s assets. With an estimated 35 million library items tagged worldwide in more than three hundred libraries, this technology is generating ever-increasing interest. In October and November 2004, the industrial technology department and the Robert E. Kennedy Library at Cal Poly State University, San Luis Obispo, surveyed participating libraries, RFID electronic discussion groups, and Library and Information Technology Association (LITA-L) electronic discussion group subscribers to collect information with regards to the implementation of RFID systems in libraries. Opinions were gathered regarding such topics, actual or estimated, as RFID implementation costs and time; the impact of the technology on operations such as handling of volumes and security; and RFID system features adopted such as conversion stations, self-checkout units, and security systems. Information on the various RFID library components and the results from the survey are presented in this paper.</span>


2013 ◽  
pp. 774-791
Author(s):  
Peter J. Hawrylak ◽  
George Louthan ◽  
Jeremy Daily ◽  
John Hal ◽  
Mauricio Papa

This chapter describes how to use attack graphs to evaluate the security vulnerabilities of an embedded computer network and provides example cases of this technique. Attack graphs are powerful tools available to system administrators to identify and manage vulnerabilities. Attack graphs describe the steps an adversary could take to reach a desired goal and can be analyzed to quantify risk. The systems investigated in this chapter are embedded systems that span hardware, software, and network communication. The example cases studied will be (1) radio frequency identification (RFID), (2) vehicle networks, and (3) the Smart Grid (the next generation power and distribution network in the USA).


Author(s):  
Ming K. Lim

Radio-frequency identification technology (RFID) is a popular modern technology proven to deliver a range of value-added benefits to achieve system and operational efficiency, as well as cost-effectiveness. The operational characteristics of RFID outperform barcodes in many aspects. Despite its well-perceived benefits, a definite rationale for larger scale adoption is still not so promising. One of the key reasons is high implementation cost, especially the cost of tags for applications involving item-level tagging. This has resulted in the development of chipless RFID tags which cost much less than conventional chip-based tags. Despite the much lower tag cost, the uptake of chipless RFID system in the market is still not as widespread as predicted by RFID experts. This chapter explores the value-added applications of chipless RFID system to promote wider adoption. The chipless technology’s technical and operational characteristics, benefits, limitations and current uses will also be examined. The merit of this chapter is to contribute fresh propositions to the promising applications of chipless RFID to increase its adoption in the industries that are currently not (or less popular in) utilising it, such as retail, logistics, manufacturing, healthcare, and service sectors.


Author(s):  
Peter J. Hawrylak ◽  
Nakeisha Schimke ◽  
John Hale ◽  
Mauricio Papa

Electronic healthcare or E-Health promises to offer better care at lower cost. This is critical as the cost of healthcare continues to increase and as the population ages. Radio Frequency Identification (RFID) technology is one form of wireless technology that will be part of the E-Health environment. RFID provides the ability to identify, track, and monitor patients and staff members. This enables better resource allocation, reduction of medical errors, and increased independence for patients. One part of E-Health is the Electronic Medical Record (EMR). New developments in RFID technology now enable the storage of all or part of the EMR on an RFID tag that remains with the patient. This chapter investigates the use of RFID in E-Health, how RFID can be used to store the EMR, and the security and privacy risks associated with using RFID to store the EMR.


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