RFID's Perceived Influence on the Marketing Mix in the Logistics Industry : An exploratory study

Abstract: The logistics industry is known to be one of the main players for integrating Radio Frequency Identification (RFID) into their supply chain. By reflecting radio waves, RFID allows any item to become an intelligent part of an organization’s information infrastructure. RFID can create greater efficiency and effectiveness as it provides real-time information, and thus has the possibility to heavily increase logistics companies’ performance. RFID is also suggested to create marketing opportunities for companies as it facilitates customer value creation. However, little is known of RFID’s true influence on marketing. To fully understand what influence RFID has on marketing, companies must seek insight into what influence RFID has on the four P’s; Product, Price, Place and Promotion. By understanding this, companies can gain an increased knowledge of how to utilize RFID to increase their customer value and hence increase their competitive advantage in the targeted market. This study investigates what perceived influence RFID has on the four P’s within the logistics industry in Scandinavia. This was achieved by performing an exploratory research, and both primary and secondary data was collected in order ensure the validity and reliability of the study. The primary data was gathered by conducting in-depth interviews together with eight logistics companies located in Scandinavia. The findings from the interviews conducted suggested that the perception of RFID’s influence on the logistics industry’s offered product is positive. According to the findings, the use of RFID technology improved the logistic solution offered which also resulted in an increased perceived customer value. The findings also show that RFID has a positive perceived influence on price as well as promotion and place. In conclusion, the authors suggest that for RFID to have positive influence on the four P’s it must not only be successfully implemented into the logistics process, but it also requires the implementing company to reach a certain economy of scale, as well as hold a certain level of expertise about the technology to see the full potential of RFID. If these criteria are met there are several benefits to gain from use of RFID in marketing purposes in the logistics industry.