Professional Documents
Culture Documents
Krzysztof Prugar
2008-04-10
Topic
Introduction
New advances in technology called RFID and biometrics has created new tools
for marketers and retailers to better target consumers specifically based on their "profile".
Among other things, a profile includes the person's tastes, styles, class, and preferences.
The idea behind RFID chips is to physically tag each product in a retailer’s inventory.
These chips are micro-transmitters and can be scanned at a distance potentially replacing
the barcode system. Traditionally, as inventory arrived in crates and pallets to a retailer,
each individual item needs to be scanned. With RFID, however, entire pallets can be
scanned recording the quantity instantaneously. When consumers buy the product at the
register, it is scanned again and deducted from the retailer’s inventory, which notifies the
supplier to prepare another shipment. In addition to refining the "just in time" process,
retailers can track the trends and behaviors in consumption and quantify the relationships.
Walmart has been a large proponent of RFID but is disappointed the technology is
not being adopted more readily. They've recently increased the pressure on their suppliers
to adopt tagging of their products by charging a $2 fee for each pallet that doesn't include
the chips (Techweb 2008). Another application for products that are tagged is to develop
a market for "smart appliances" such as a refrigerator or rubbish-bin that lets you know
when your down to the last soda can (McGoldrick and Barton 2). This way you'll never
forget to buy more the next time you go shopping. Market researchers are also using
reading behavior of people in a waiting room. Each page was tagged and could track
when it was turned or how long it took before a page was turned (Riley 2).
build a larger profile on consumers by using fingerprints, retinal scans, and facial
recognition systems. TiVo and Microsoft filed patents for a TV remote that scans the
thumbprint of the user and identify the member of the household who is currently
watching (Spangler). Similar to that, Comcast has leaked its intentions to develop facial
recognition software included in the TV or cable box which recognizes the person or
people in the living room and react base on their preferences. According to Gerard
Kunkel, Comcast’s senior VP of user experience, "this type of monitoring is the “holy
grail” because it could help serve up specifically tailored ads" (Albrecht). Others are
experimenting with a newly developed biometric mouse and keyboard, which scan the
user's fingerprint. The prints are used to associate online and offline computer activity to
a specific individual (Pons 4). Everything you do during your daily routine, whether
watching TV, surfing the net, or purchasing groceries would be tracked and recorded. The
next time you log-off your computer and turn on the television to watch your favorite
shows, you could see an advertisement for the items you had just recently browsed for
online.
Analysis
Some of the challenges proponents of RFID and biometric face are resistance from
consumers and vendors alike. The main source of hesitation is for concern over privacy
issues but are ensured that anonymity between the consumer and the marketers would be
preserved. Also, these technologies' supporters attempt to entice vendors by stating it will
help create a competitive advantage and a more efficient target marketing campaign.
Depending on the particular application, some firms could greatly influence the
consumers decision process capitalizing off both impulse and routine shopping behaviors.
Although the talk seems to advocate the technology's advantages, it’s worth briefly
discussing the alternative implications. There is a natural conflict of interests between the
marketers or vendors, and the consumer. Its not the desire of an individual person to feel
'targeted' at every place they go whether inside or outside their home. Personalized
advertisements might reduce the tension, but the ubiquity still feels intrusive. Trust is a
major factor as well. These technologies record extremely sensitive information that is
still perceived as an invasion of privacy. Marketers and retail outlets are not the only ones
deploying RFID and biometric technologies. Federal government agencies are employing
private contractors to compile biometric databases that contain retinal, facial, print, and
DNA samples in addition to passing legislation in an attempt to outfit every citizen with
an RFID chip through the RealID Act. Increased executive orders have granted federal
subpoena in which a company is forced to comply and release private information. With a
rapidly growing surveillance society, it’s becoming more difficult to go in public without
surveilled, the corporation's products and policies serve as the next logical stepping stone
Works Cited
"Biometric Marketing: Targeting the Online Consumer." Communications of the ACM
49.8 (2006): 61-5.
<http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=21638982&site
=bsi-live>.
McGoldrick, Peter J., and Peter M. Barton. "High-Tech Ways to Keep Cupboards Full."
Harvard business review 85.3 (2007): 21-2.
<http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=23925561&site
=bsi-live>.
Spangler, Todd. "Microsoft's TV Ads That Watch You". MultiChannel News. 3 August
2007. 06 April 2008
<http://www.multichannel.com/blog/100000410/post/860012686.html>