Exploring Consumer Privacy Concerns and RFID Technology: The Impact of Fear Appeals on Consumer Behaviors

Although the financial costs associated with radio frequency identification (RFID) technology implementation have been documented, our understanding of the relational costs that accompany implementation is limited. This study focuses on these costs through an examination of the effects of RFID implementation on existing retailer-consumer relationships. The study utilizes an experimental design wherein respondents' relational perceptions are assessed both before and after the introduction of an RFID-oriented fear appeal. Study results indicate that trust in the retailer and privacy expectations drive respondents' threat perceptions, which in turn drive a combination of attitudinal and behavioral outcomes. Managerial and theoretical implications are discussed along with avenues for future research in the area.