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Consumer Value Trumps Perceived Privacy Risk: Item-Level RFID Implementation in the FMCG Industry

Consumer Value Trumps Perceived Privacy Risk: Item-Level RFID Implementation in the FMCG Industry
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Author(s): Wesley A. Kukard (University of Otago, New Zealand) and Lincoln C. Wood (University of Otago, New Zealand & Curtin University, Australia)
Copyright: 2019
Pages: 21
Source title: Handbook of Research on the Evolution of IT and the Rise of E-Society
Source Author(s)/Editor(s): Maki Habib (The American University in Cairo, Egypt)
DOI: 10.4018/978-1-5225-7214-5.ch009

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Abstract

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.

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