3. How can marketers reassure consumers about privacy concerns if RFID comes into widespread use?

As mentioned in the chapter, some analysts predict bar codes may soon be replaced by a wireless technology called radio-frequency identifi cation (RFID). RFID is a system of installing tags containing tiny computer chips on, say, supermarket items. These chips automatically radio the location of the item to a computer network where inventory data are stored, letting store managers know not only where the item is at all times but also when and where it was made and its color and size. Proponents believe RFID will cut costs and simplify inventory tracking and reordering. It may also allow marketers to respond quickly to shifts in demand, avoid under- and overstocking, and reduce spoilage by automatically removing outdated perishables from the shelves. Privacy advocates, however, think the chips provide too much product-preference information that might be identifi ed with individual consumers.
In the meantime, Walmart is requiring its major suppliers to begin using the new technology on products stocked by the giant retailer.