The RFID Value Proposition

Radio Frequency Identification (RFID) has the potential to revolutionize the retail industry, yet the linking of this automatic identification (auto-ID) technology to consumer goods has resulted in widespread concern over the potential privacy threats, primarily due to the aspect of traceability it could impose on consumers. As a consequence, privacy has come to be perceived as a barrier stopping RFID adoption in retail in its tracks. When investigating other complex information and communication technologies (ICT), it becomes apparent that consumers often sacrifice privacy in order to take advantage of some form of value afforded by the technology. This interplay between value and privacy is seen as a balance which must be favorable to the consumer to encourage acceptance. This study is focused on exploring this balance, with the addition of control as another important factor. The paper presents a review of literature, commencing with RFID technology itself and subsequently the value proposition that RFID offers retailers and consumers. It will investigate the privacy debate, looking at commonly expressed privacy concerns and the meaning of privacy. This will provide a basis for discussion of potential solutions that have been proposed.