The effect of perceived intrusion on consumers’ attitude towards using an RFID-based marketing program

PurposeSeveral retailers are currently implementing marketing programs based on RFID. This paper questions in a general manner whether consumers are ready to adopt RFID in an everyday setting and if they are willing to interact with the technology during their shopping experience.DesignData from 388 respondents was collected through an experimental design with scenarios based on RFID programs currently being tested or used in retail stores worldwide. An ANOVA was calculated on the consumer's perceived intrusion and a structural equation model was performed on the most intrusive scenario.FindingsFindings reveal that a basic RFID loyalty program will not generate more perceived intrusion than a regular loyalty program which indicates that consumers are ready to carry RFID tags that identify them at a distance by retailers. However, by increasing the program's intrusion factor, a surprisingly elevated threshold is found beyond which the consumer's attitude towards adopting the program will be negatively affected