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The focus of RFID is at pallet level but, according to a report from Cap Gemini Ernst & Young, even though item level tagging won't arrive for several years, consumer buy-in is essential well before the time. The study concludes that an early understanding of the consumer mindset is critical to set the stage positively for item level tagging.
The recent survey of 1,000 North American consumers conducted by Cap Gemini Ernst & Young (CGEY) provided a picture of consumers' awareness and perceptions of RFID, their willingness to purchase RFID-enabled products, and their views regarding the potential benefits of the technology, as well as their concerns and issues with the technology.
What consumers think
While only one-quarter of consumers had heard of RFID, they are bullish on its potential but are looking for more information:
- While only 23% of consumers have heard of RFID technology, 42% of those have a favourable perception of it, while 10% have unfavourable views, and 48% either don't know or have no opinion.
- Consumers who had heard of RFID said they got their information from a variety of sources, primarily being the media and word-of-mouth.
- Although approximately half of all consumers surveyed either use or have heard of existing RFID applications such as Mobil's Speedpass or highway toll devices such as E-ZPass, some 80% were not aware that these applications use RFID technology.
What pleases consumers
In terms of consumer attitudes to the security, safety, and savings related to RFID technology, the survey found that:
- The top 5 potential benefits from RFID that are most important to consumers are:
1. Faster recovery of stolen items;
2. Better car anti-theft capabilities;
3. Savings from reduced product costs;
4. Better prescription drug security;
5. Faster, more reliable product recalls.
- The benefits that are least important to consumers include better access to more products, instant recognition of preferences that lead to faster or better service, and instant in-aisle companion product suggestions.
- Many consumers said they would be willing to buy an RFID-enabled product to get the benefits that are most important to them. However, a smaller proportion would consider paying more to receive those benefits.
- When consumers were asked in an open-ended question to consider what might lead them to buy an RFID-enabled product, they identified factors such as lower prices, convenience, improved security, awareness of benefits, privacy assurances, and a better shopping experience.
- Demonstrating a clear lack of industry-driven consumer education, many also said they would like more information about RFID before buying such a product.
What worries consumers
The study also found that when consumers were asked about their concerns about RFID technology, the top 5 potential issues were:
- Use of consumer data by a third party;
- An increase in targeted direct marketing;
- Tracking of consumers via their product purchases;
- Health issues;
- Environmental impact.
Additionally, many respondents said that they were unsure of which issue was most important to them due to their lack of knowledge about RFID technology. Most consumers, however, expect the impact of RFID on personal privacy to be greater than, or the same as, other consumer-facing technologies such as mobile telephones, credit and debit cards, ATMs, and frequent shopper loyalty cards.
Looking ahead
Consumers' views were very mixed regarding when they believe RFID tags will appear on most of the products they buy:
- 11% said within one year;
- 21% said within 2 years;
- 33% said within 2-5 years;
- 11% said more than 5 years;
- 21% were unsure when it would happen;
- 3% said it would never happen.
Similarly, respondents offered mixed opinions as to when they would like RFID tags to appear on most of the products they buy:
- 12% said within 1 year;
- 16% said within 2 years;
- 19% said within 2-5 years;
- 9% said more than 5 years;
- 30% were unsure;
- 14% said never.
The study was conducted in October 2003 using an internet panel of more than 1,000 US consumers aged 18 or older. The composition of the consumer sample was based on a projectable national sample representative of the population from the standpoint of age, gender, education, and residential location. Consumers were asked to complete a questionnaire that included a brief explanation of RFID and a wide range of questions regarding the technology, as well as basic demographic questions such as gender, age and education.
Source: Cap Gemini Ernst & Young
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