As mentioned in the chapter, some analysts predict barcodes maybe replaced by a wireless technology called radio-frequency identification (RFID). RFID is a system of installing tags containing tinycomputer chips on, say, supermarket items. These chips automatically radio the location of the item to a computer network whereinventory data is stored, letting store managers know not onlywhere the item is at all times but also when and where it was madeand its color and size. Proponents believe RFID cuts costs and simplifies inventory tracking and reordering. It may also allow marketersto respond quickly to shifts in demand, avoid under- and overstocking, and reduce spoilage by automatically removing outdated perishables from the shelves. Privacy advocates, however, think thechips provide too much product-preference information that mightbe identified with individual consumers. In the meantime, Walmartrequires its major suppliers to use the new technology on productsstocked by the giant retailer.1. Do you think RFID poses a threat to consumer privacy? Why orwhy not?2. Do you think the technology’s possible benefits to marketers outweigh the potential privacy concerns? Are there alsopotential benefits to consumers? If so, what are they?3. How can marketers reassure consumers about privacy concerns if RFID comes into widespread use?
As mentioned in the chapter, some analysts predict barcodes may
be replaced by a wireless technology called radio-frequency identification (RFID). RFID is a system of installing tags containing tiny
computer chips on, say, supermarket items. These chips automatically radio the location of the item to a computer network where
inventory data is stored, letting store managers know not only
where the item is at all times but also when and where it was made
and its color and size. Proponents believe RFID cuts costs and simplifies inventory tracking and reordering. It may also allow marketers
to respond quickly to shifts in demand, avoid under- and overstocking, and reduce spoilage by automatically removing outdated perishables from the shelves. Privacy advocates, however, think the
chips provide too much product-preference information that might
be identified with individual consumers. In the meantime, Walmart
requires its major suppliers to use the new technology on products
stocked by the giant retailer.
1. Do you think RFID poses a threat to consumer privacy? Why or
why not?
2. Do you think the technology’s possible benefits to marketers outweigh the potential privacy concerns? Are there also
potential benefits to consumers? If so, what are they?
3. How can marketers reassure consumers about privacy concerns if RFID comes into widespread use?
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