RFID based ubiquitous commerce and consumer trust

Abstract

Purpose This paper aims to investigate processes of how RFID‐enabled systems affect consumers' trust and acceptance of u‐commerce, emphasizing a feedback loop where consumers' post‐transaction trust affects their initial trust. Design/methodology/approach A simulation model using system dynamics (SD) is developed to show the importance of trust issues involving RFID technology, decomposing complex processes of trust building in u‐commerce into a set of feedback loops with a causal‐loop diagram. Findings The results of simulation runs indicate that well‐established policies, especially for current privacy issues, should be in place to increase consumers' acceptance of u‐commerce. Originality/value The research provides insights into the development of RFID‐based consumers' trust in u‐commerce, and policies to increase consumers' trust in u‐commerce. The research model was developed and verified using SD.