RFID at the Customer Interface: The Issue of Privacy

Abstract

Data capture technologies like Radio Frequency Identification Devices (RFID) can be a double-edged sword. On the one hand they may be viewed positively as the ultimate enabler of customer personalisation or they may be viewed negatively as a 'Big Brother' tool used to unnecessarily monitor consumer purchases and habits (Juban and Wyld, 2004). RFID could ultimately prove to be the defining facilitator of communication between organisations and their customers. However due to the current lack of education as to how RFID may affect consumers, along with the increasing fears over privacy issues, civil liberty and security both the company and the consumer may miss the rewards of RFID. This paper will outline the many benefits and challenges which RFID holds from a consumer perspective. This paper will suggest a research agenda to study the issue of consumer privacy, and promote a better understanding of what exactly RFID means at the customer interface.

Keywords: RFID, Privacy, Information Technology Ethics, Consumer Privacy, Marketing Ethics

JEL Classification: M31