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Social Science Computer Review
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Between Extreme Rejection and Cautious Acceptance

Consumers' Reactions to RFID-Based IS in Retail

Matthias Rothensee

Humboldt University, Berlin, Germany, rothensee{at}wiwi.hu-berlin.de

Sarah Spiekermann

Humboldt University, Berlin, Germany, sspiek{at}wiwi.hu-berlin.de

RFID (radio frequency identification) is one of the most important technologies underlying ambient intelligence. It will enable myriad information services on retailers' shop floors and after sale. However, embedding chips in everyday products has stirred a considerable debate about people's privacy. So far it is unclear what the attitudes toward privacy in ambient intelligence are and whether they will affect the reputation of the retailer and acceptance of RFID-based information services. This article presents two empirical studies with 642 participants who saw an introductory film and subsequently evaluated the technology and potential privacy protection mechanisms. Results show that people are moderately privacy aware and that their privacy awareness is negatively related to their acceptance of the service. A group of "extreme rejecters" is identified, which hold highly negative attitudes toward RFID and significantly bias group means. The characteristics of this group are explored and privacy protection measures are evaluated.

Key Words: ambient intelligence • privacy enhancing technology • retail • reputation • RFID

This version was published on February 1, 2008

Social Science Computer Review, Vol. 26, No. 1, 75-86 (2008)
DOI: 10.1177/0894439307307687
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