User Acceptance of IoT Applications in Retail Industry

Abstract

With the rapid advancements in the internet technology, many retailers are embracing internet of things technology to enhance customer experience and improve efficiency. Specifically, many customer-facing IoT technologies such as augmented reality, smart shopping carts, smart displays, and RFID tags are expected to change the way customers experience retailing shopping. Drawing on the technology acceptance model, trust perspective, task-technology fit, and organizational reputation perspective, this study examines the customer adoption of IoT applications in retail setting. Responses collected from 289 actual retail shoppers were analyzed using structural equation modeling. Results reveal that perceived usefulness, perceived ease of use, task-technology fit, retailer reputation, and initial trust are significant predictors of customer attitude and intentions to use IoT in retail stores. The study findings have key implications for academicians and retailers in improving customer acceptance and in delivering superior customer experience.