RFID based ubiquitous commerce and consumer trust
| Date | 29 May 2007 |
| DOI | https://doi.org/10.1108/02635570710750381 |
| Published date | 29 May 2007 |
| Pages | 605-617 |
| Author | Sang M. Lee,Sang‐hyun Park,Seong No Yoon,Seung‐jun Yeon |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
RFID based ubiquitous commerce
and consumer trust
Sang M. Lee, Sang-hyun Park and Seong No Yoon
College of Business Administration,
University of Nebraska – Lincoln, Lincoln, Nebraska, USA, and
Seung-jun Yeon
Electronics and Telecommunications Research Institute (ETRI),
Daejon, South Korea
Abstract
Purpose – This paper aims to investigate processes of how RFID-enabled systems affect consumers’
trust and acceptance of u-commerce, emphasizing a feedback loop where consumers’ post-transaction
trust affects their initial trust.
Design/methodology/approach – A simulation model using system dynamics (SD) is developed to
show the importance of trust issues involving RFID technology, decomposing complex processes of
trust building in u-commerce into a set of feedback loops with a causal-loop diagram.
Findings – The results of simulation runs indicate that well-established policies, especially for
current privacy issues, should be in place to increase consumers’ acceptance of u-commerce.
Originality/value – The research provides insights into the development of RFID-based consumers’
trust in u-commerce, and policies to increase consumers’ trust in u-commerce. The research model was
developed and verified using SD.
Keywords Radio systems,System monitoring, Commercial services,Trust
Paper type Research paper
1. Introduction
Internet access continues to grow, with the current estimate of 1,043 million internet
users worldwide as of June 30, 2006 and estimated 227 million users in the USA alone
(Internet World Stats, 2006). As the world has become more interconnected and flat
(Friedman, 2005), the internet has become an essential tool in today’s business
environment. The continuous rapid growth of online retailing, 50.8 percent increase in
2003, 23.8 percent in 2004 and 22.2 percent in 2005, implies that e-commerce has
become a common medium for businesses to generate revenue (ClickZNetwork, 2006).
Along with the growth of e-commerce, advances in information and communication
technologies (ICTs) have accelerated an emerging new type of commerce with features
overcoming the limitations of space and time: ubiquitous commerce (u-commerce)
through mobile commerce (m-commerce) (Junglas and Watson, 2003). U-commerce is
defined as “the use of ubiquitous networks to support personalized and uninterrupted
communications and transactions between an organization and its various
stakeholders to provide a level of value over, above, and beyond traditional
commerce” (Watson et al., 2002).
Radio frequency identification (RFID) refers to a technology that enables identifying
an object using a radio signal. An RFID system typically includes an RFID tag,
a reader, and a database storing the product information. According to a report of
the US Department of Commerce (2005), RFID market for related consulting,
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm
Ubiquitous
commerce and
consumer trust
605
Industrial Management & Data
Systems
Vol. 107 No. 5, 2007
pp. 605-617
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570710750381
To continue reading
Request your trial