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RFID EXPERIENCE AND PRIVACY IN THE RETAIL ENVIRONMENT. INDICATIONS FOR IN-STORE CONSUMER RESEARCH

Final Report Summary - REXPIRE (RFID EXPERIENCE AND PRIVACY IN THE RETAIL ENVIRONMENT. INDICATIONS FOR IN-STORE CONSUMER RESEARCH.)

A main target for many innovations based on mobile and RFID technologies is the retail environment. Behaviour can be monitored, data can be gathered, services and advertising can be delivered to consumers during their shopping activities upon request, according to their location and as a consequence of certain behaviours such as products observation and choice. However, despite the variety of their potential applications, barriers to mass adoption as well as many questions on their implications on people behaviours and perceptions still remain to be addressed.

This research project merged social-psychology research with computer technologies developments in the built environment to advance the current understanding of the barriers to the adoption of retail technologies and their implications on consumers’ behaviours and perceptions. First, it explored the social-psychological dimensions of privacy concerns toward RFID-enabled services. Second, it investigated the impact of retail technologies such as self-scanning machines on consumer emotions and on the overall consumer experience. This second goal was pursued by means of a research partnership with one of the main retailers of the UK. The partnership with the retailer Sainsbury’s also served the complementary scope to elaborate indications for the design of a novel device for in-store consumer research. The first two research goals drew on emerging questions in the ICTs and Consumer Psychology literatures whereas the third one provided indications for the development of a new retail technology for the measurement of consumer experience. Data analysis accounted for age differences in order to identify special key issues for the elderly segment as compared with the younger segment.
An important goal of this research project was the test of the hypothesises of the impact of control perceptions on privacy concerns and, second, to elaborate key information for possible guidelines. After reviewing retail technology case histories and interviewing the directors of main retailers in the UK the researcher decided to extend the focus of the research to various retail technologies, including self-scanning machines and QR codes. 40 qualitative interviews have been conducted on Sainsbury’s clients on attitudes, concerns and perceptions of retail technologies, with a focus on RFID, QR codes, mobile devices and self-scanning machines. Qualitative data were analysed by means of Grounded Theory. Data confirmed the hypothesis that technology adoption can be empowering. However this empowering effect appeared to be highly moderated by risk awareness, personal experience and familiarity with the technology. Consumers who appeared to feel more in control with the technology also described retail technology as potentially beneficial and empowering. Perceived control over the technology seemed to overlap with overall personal control beliefs, which in turn also appeared to be inversely related to the age of the interviewees. Privacy concerns were associated to unwillingness to adopt new technology with respect to RFID and mobile self-scanning tools only. Perceived control beliefs were inversely related with privacy concerns for these technologies and always appeared to be a potential important predictor for the adoption of all retail-technologies. Positive attitudes among the youngest consumers were accompanied to higher emotional involvement toward novelty and new technologies.

Based on the results of the qualitative interviews a questionnaire has been designed to test the emerged hypothesis on a quantitative sample. The interview data suggested that the ideal research outcome was the further test of a predictive behavioural model. Data have then been collected on an adequate sample size of 400 people. Questionnaires were administered to Sainsbury’s clients in seven different store locations in London and across the UK. The research focused on the relative impact of emotions, individual differences and self-efficacy believes on the adoption of self-checkouts and on the consumer experience. Results showed the role of age and of Self-Efficacy Believes on technology adoption. A Structural Equation Model (SEM) was tested that showed the impact of the use of self-scanning machines on both the activation of consumers’ emotions and the store experience. The model indicated the moderator effect of age, where younger consumers showed a stronger emotional involvement with the technology, which in turn affected their satisfaction and shopping experience. Conversely, older consumers showed a lower affective involvement and their self-efficacy beliefs explained acceptance and attitudes toward the in-store technology.

A final goals of the project has been the development of a mobile application for the measurement of experience and the concurrent integration of behavioural and socio-demographic data. Based on the SEM results, age has been taken into account for the evaluation of the target audience and potential usability and acceptability implications. The researcher has collaborated extensively with the Sainsbury’s management to make possible the integration of different data sources including socio-demographics and shopping patterns (Nesta data – Sainsbury’s fidelity card), for the in-store test of sensory technology, and for the development of the mobile APP. After reviewing the latest location based and retail mobile applications, two focus groups with two age groups (<45 and >45) have been conducted for the lab test of three prototypes of app storyboards and evaluation of technology acceptance. The design of the mobile App has been finalised in collaboration with the Sainsbury’s Information Technology and Consumer Services management teams. The App has been tested in store for the integration of spatial data through Bluetooth technology. This last research work has important implications for the advancement of in-store consumer research methodologies and for the application of social science to big data systems. This research is particularly relevant for all the communities of scholars and professionals who are involved in retail technology innovation.