Besides tracking: Simulation of RFID marketing and beyond

Usmani, Zeeshan-ul-Hassan, Alghamdi, Fawzi Abdulkhaliq, Tariq, Amina, & Puri, Talal Naveed (2010) Besides tracking: Simulation of RFID marketing and beyond. In Sobh, Tarek, Elleithy, Khaled, & Mahmood, Ausif (Eds.) Novel Algorithms and Techniques in Telecommunications and Networking. Springer, Netherlands, pp. 143-148.

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This paper asks a new question: how we can use RFID technology in marketing products in supermarkets and how we can measure its performance or ROI (Return-on-Investment). We try to answer the question by proposing a simulation model whereby customers become aware of other customers' real-time shopping behavior and may hence be influenced by their purchases and the levels of purchases. The proposed model is orthogonal to sales model and can have the similar effects: increase in the overall shopping volume. Managers often struggle with the prediction of ROI on purchasing such a technology, this simulation sets to provide them the answers of questions like the percentage of increase in sales given real-time purchase information to other customers. The simulation is also flexible to incorporate any given model of customers' behavior tailored to particular supermarket, settings, events or promotions. The results, although preliminary, are promising to use RFID technology for marketing products in supermarkets and provide several dimensions to look for influencing customers via feedback, real-time marketing, target advertisement and on-demand promotions. Several other parameters have been discussed including the herd behavior, fake customers, privacy, and optimality of sales-price margin and the ROI of investing in RFID technology for marketing purposes. © 2010 Springer Science+Business Media B.V.

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ID Code: 93925
Item Type: Book Chapter
Additional URLs:
DOI: 10.1007/978-90-481-3662-9_24
ISBN: 9789048136612
Divisions: Current > QUT Faculties and Divisions > Faculty of Health
Current > Institutes > Institute of Health and Biomedical Innovation
Current > Schools > School of Public Health & Social Work
Copyright Owner: Copyright 2010 Springer Science+Busniness Media B.V.
Deposited On: 15 Apr 2016 00:40
Last Modified: 19 Apr 2016 01:02

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