RFID Radio Chip Technology & Marketing
Imagine zipping through a supermarket check-out without unloading the cart full of groceries. Simply approach the cashier, listen for a beep and pay within a matter of seconds. This realistic scenario showcases the use of radio frequency identification (RFID). The inventory management system makes product tracking and purchasing simple, speedy and accurate.
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Features
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The Federal Trade Commission's online article "RFID Applications and Implications for Consumers" describes a RFID tag as a computerized chip, usually made of silicon, and a tiny antenna packaged together. An electronic product code (EPC) embedded in the chip simulates a bar code. A mobile or stationary reader uses radio wave technology to scan a RFID tag. The scanner then lists detailed information about the product, including price, location in the store, and quantities. Central databases such as a cash register system or directory of information link to the tag and reader system.
Uses
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RFID technology makes everyday tasks run smoothly. A librarian can scan a cart of books in seconds. Cars with pre-paid RFID window stickers cruise through toll booths. Pharmacists scan bottles of medication to validate their contents and ensure accurate orders. Scanning lost pets labeled with RFID technology links rescuers to a database, helping to reunite the pet with his family. Retailers can scan an item and instantly know on-hand quantities without searching the shelves.
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Benefits
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RFID technology streamlines inventory management according to the University of Arkansas RFID Research Center. Retailer JCPenny has noted increased precision and accuracy when counting products. RFID tags lead to fewer out-of-stock products. Keeping shelves full results in increased sales and a positive shopping experience for customers.
Marketing
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RFID technology makes direct, customized marketing simple. Retailers can track purchases and customize the shopping experience for the buyer. Imagine receiving an email from the supermarket with coupons for the top five items you regularly purchase. Clothing retailers can send out notices when the shoes that match the outfit you bought last week go on sale.
Concerns
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Participants at an FDA workshop cited privacy as their most significant concern regarding RFID technology. Concerns included the sharing of data to third party companies, increase of unsolicited correspondence, and the possibility of government surveillance. Credit cards and retail loyalty club cards embedded with RFID tags may lead to customer profiling by store management. Customers with a history of high-dollar purchases may be given preferential treatment, while thrifty spenders are ignored.
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References
Resources
- Photo Credit warehouse image by Niki from Fotolia.com
