**3. Mobile RFID**

#### **3.1. Definition**

**•** *Tag (Transponder):* It consists of an antenna and a microchip. Microchip stores data about the tagged item. Antenna transmits the data about the tagged item to the reader by means

**•** *Reader (Transceiver):* It is a device that communicates with tags through radio waves and

**•** *RFID Middleware:* It is a type of software that is used to consolidate, aggregate, process and filter raw RFID data, which are received from multiple readers, in order to generate useful information for end-users. It transmits also the processed data to backend enter‐

**•** *RFID System Software:* It is software for the communication between tags and readers in order to read tags, write on tags, detect and fix erroneous data as well as to realize au‐

**•** *Backend Enterprise Service:* This service helps to receive filtered RFID data from the mid‐ dleware and integrate these with existing applications such as ERP, SCM or CRM systems

**NFC:** This technology can be seen as an evolution of RFID technology [15]. It is a combina‐ tion of RFID and interconnection technologies [21]. NFC is compatible with RFID. Both of them use the same working standards and radio frequencies for communication [15]. The

**•** RFID operates in a long distance range compared to NFC. There is an eavesdropping risk for data exchange. NFC has a short transmission range. That is why NFC-based transac‐

**•** RFID allows only one mobile interaction method, according to which a reader reads or writes a predefined tag. NFC enabled devices allow three different mobile interaction methods. According to the first alternative, NFC enabled mobile device initiates the data transfer by sending a RFID signal to the tag. The tag responds and sends the information it contains back to the mobile device. This type of interaction is congruent with the inter‐ action in RFID systems. According to the second type of interaction, the NFC enabled de‐ vice acts as a tag (or a smart card). Information on the device can be read by a reader at an interaction point. According to the last type of interaction, direct communication between

NFC has two basic elements: Initiator (called reader in RFID) and target (called tag in RFID). Initiator begins and controls the information exchange. Target responds to the requirements of the initiator. Two modes of operation exist for NFC: active and passive. In the active oper‐ ation, initiator and target generate their own field of radio frequency to transmit data. In the passive operation, only one of these devices generates the radio frequency field. The other

tions are inherently secure and there is almost no risk of eavesdropping [8], [15].

through Application Programming Interfaces (APIs) [19].

differences between these technologies can be listed as follows:

two NFC enabled mobile devices is possible [8].

device is used to load modulation for data transfer [21].

of radio waves [17].

reads data on them [18].

250 Radio Frequency Identification from System to Applications

prise applications [19].

thentication for security [20].

Two main ways exist to integrate RFID with a mobile phone, which is a commonly used mo‐ bile device for physical mobile interaction: a mobile phone with RFID tags and a mobile phone with a RFID reader [10].

A mobile phone with a RFID tag is a mobile device that includes a RFID chip with some identification information programmed on it. Besides a cell phone antenna used for connec‐ tion to the network operator, the phone contains a RF antenna for communication with RFID readers. When RF tag equipped phone and reader are within an appropriate range for interaction, the tag information is sent to the reader, and the reader can write some informa‐ tion back to the phone's RFID tag [22].

A mobile phone with a RFID reader is a mobile device that includes a RFID reader. This reader collects data from fixed or mobile RFID tags. The phone also includes an antenna. The phone should have an appropriate reader software for reading and writing tags [22]. The rest of this study focuses on mobile devices that are integrated with RFID readers.

A mobile RFID system works as follows [8], [23]:


Below an artificial scenario, that was developed in the context of PERCI-project (PERvasive ServiCE Interaction)1 , is illustrated, in order to highlight how mobile RFID functions. The scenario supports mobile ticketing and payment services. Two posters are used in the sce‐ nario that are associated with Web services for mobile ticketing. The first poster allows users to purchase movie tickets for appropriate options like movie title, cinema name, number of tickets and preferred timeslots. The second poster enables to ticket purchases for a public transportation system and offers options like station to start the journey, destination, num‐ ber of passengers, duration of journey to suggest appropriate tickets. Each option on the posters has a NFC tag and a visual marker. Tags and markers contain or reference the infor‐ mation that the option represents (e.g. name of a cinema) [1], [12]. On the posters action and

<sup>1</sup> PERCI-project is a project of the collaboration between University of Munich and NTT DoCoMo Euro-Labs [1] and is funded by the latter. The goal of the project is to investigate and develop new methods for mobile interactions with the Internet of Things [24].

parameter tags are used. Action tags contain URLs of different services. Parameter tags pro‐ vide parameter-values for the invocation of service. In order to determine the service that is to be used (e.g. ordering a movie ticket), an action tag has to be selected first. Then the corre‐ sponding parameter tag has to be selected for the invocation of the previously selected serv‐ ice (e.g. movie title or time slot) [1]. Users interact with the posters with their NFC enabled mobile phones that support interaction techniques pointing, touching and direct input [1], [6]. A user can buy a movie and a transportation ticket by pointing and touching his NFC enabled mobile phone on the posters. His mobile phone displays his selections and presents him a payment form. The user enters his credit card details on his phone to proceed and re‐ ceives an electronic confirmation. The user shows the electronic confirmation on his phone to the transport controller and cinema officer [6].2

Applications from thirteen references are reviewed in this study, in order to determine the possibilities concerning commercial utilization of mobile RFID. Below, each work is sum‐

Commercial Utilization of Mobile RFID http://dx.doi.org/10.5772/53480 253

Study of reference [15] is one of the few studies that considers directly the use of mobile

**1.** Applications for education: RFID tags are used to enable learner to access learning con‐

**2.** Applications for health: Using mobile RFID for tagged medicines, RFID based patient smartcards, medical RFID patches enable easy access to patient's information and to

**3.** Applications for entertainment and culture: Mobile RFID is used to enhance visits to

**4.** Commercial applications: Using mobile RFID for any commercial activity such as ticket‐

**1.** Applications for location based services zone: Services related to customer's current lo‐ cation are provided. Service providers deploy RFID tagged items/devices in a location that provide instant real-time information about services available at that location. Downloading bus routes by scanning RFID tagged buses, downloading prices of RFID tagged goods at stores, downloading movie information, trailers, show timings and the nearest theater locations by scanning RFID tagged movie posters, downloading current menu being served at a restaurant by scanning its RFID tag are some examples for ap‐

**2.** Applications for enterprise zone: Mobile RFID applications support company's mobile staff like inventory checkers, field engineers, maintenance and repair staff, and security guards. It supports them in terms of inventory management in real-time, work attend‐ ance log, instructions on how to operate tagged items and demonstrating of staff pres‐

**3.** Applications for private zone: Mobile RFID assists users in their private spaces like home, garden, garage etc. For example, it helps users to make an instant call or send an instant message by scanning RFID tagged photographs and business cards. By scanning RFID tagged household items with a mobile phone, information (e.g. information about the expiration date of milk in the refrigerator or about the last watering time of a RFID

Report of reference [22] focuses mainly on the enterprise market. However, a few consumer applications are presented to show the potential of the technology in the consumer market.

marized briefly.

RFID and proposes four application categories:

monitor the health of patients.

tent of an object according to the surrounding context.

museums and art galleries, particularly for guided visits.

Reference [25] groups mobile RFID applications into the following zones:

ing, banking or purchasing goods and services.

plications concerning location based services.

ence at certain locations etc.

tagged plant) can be obtained quickly.

Mobile RFID applications are categorized in five groups:

#### **3.2. Mobile RFID applications**

#### *3.2.1. Related work*

Applications of mobile RFID span across multiple areas including enterprises, consumer markets, public sector and even private lives. Among the reviewed references, which stud‐ ied the application possibilities of mobile RFID, some references have a general classification of all possible application areas and some concentrate on a few, special application areas. In order to analyze the references, the reviewed applications are grouped into a classification framework for mobile RFID that considers three main application groups: *Public*, *Business* and *Private* (see Figure 4). *Public* applications include non-commercial applications for pub‐ lic use such as applications for education and health. *Private* applications are also non-com‐ mercial applications of RFID based appliances and focus on using RFID in connection with mobile devices in houses or in offices (e.g. RFID tagged food items in smart refrigerators). *Business* applications cover all commercial and non-commercial applications in a business organization such as applications for Supply Chain Management, Customer Relationship Management or Workflow Management.

**Figure 4.** Classification framework for mobile RFID applications

<sup>2</sup> As mentioned in Section 2.4, NFC technology is an evolution of RFID technology and besides two additional mobile interaction methods, it uses an interaction method that is also used by RFID technology. According to this method, a reader reads or writes a predefined tag. NFC tags of the illustrated scenario of PERCI-project use the mentioned meth‐ od. In this context, it can be denoted that NFC tags of the scenario do not differ from RFID tags and the scenario of PERCI-project can be used as an example to highlight how mobile RFID functions.

Applications from thirteen references are reviewed in this study, in order to determine the possibilities concerning commercial utilization of mobile RFID. Below, each work is sum‐ marized briefly.

parameter tags are used. Action tags contain URLs of different services. Parameter tags pro‐ vide parameter-values for the invocation of service. In order to determine the service that is to be used (e.g. ordering a movie ticket), an action tag has to be selected first. Then the corre‐ sponding parameter tag has to be selected for the invocation of the previously selected serv‐ ice (e.g. movie title or time slot) [1]. Users interact with the posters with their NFC enabled mobile phones that support interaction techniques pointing, touching and direct input [1], [6]. A user can buy a movie and a transportation ticket by pointing and touching his NFC enabled mobile phone on the posters. His mobile phone displays his selections and presents him a payment form. The user enters his credit card details on his phone to proceed and re‐ ceives an electronic confirmation. The user shows the electronic confirmation on his phone

Applications of mobile RFID span across multiple areas including enterprises, consumer markets, public sector and even private lives. Among the reviewed references, which stud‐ ied the application possibilities of mobile RFID, some references have a general classification of all possible application areas and some concentrate on a few, special application areas. In order to analyze the references, the reviewed applications are grouped into a classification framework for mobile RFID that considers three main application groups: *Public*, *Business* and *Private* (see Figure 4). *Public* applications include non-commercial applications for pub‐ lic use such as applications for education and health. *Private* applications are also non-com‐ mercial applications of RFID based appliances and focus on using RFID in connection with mobile devices in houses or in offices (e.g. RFID tagged food items in smart refrigerators). *Business* applications cover all commercial and non-commercial applications in a business organization such as applications for Supply Chain Management, Customer Relationship

Mobile RFID Applications

PUBLIC BUSINESS PRIVATE

2 As mentioned in Section 2.4, NFC technology is an evolution of RFID technology and besides two additional mobile interaction methods, it uses an interaction method that is also used by RFID technology. According to this method, a reader reads or writes a predefined tag. NFC tags of the illustrated scenario of PERCI-project use the mentioned meth‐ od. In this context, it can be denoted that NFC tags of the scenario do not differ from RFID tags and the scenario of

to the transport controller and cinema officer [6].2

252 Radio Frequency Identification from System to Applications

**3.2. Mobile RFID applications**

Management or Workflow Management.

**Figure 4.** Classification framework for mobile RFID applications

PERCI-project can be used as an example to highlight how mobile RFID functions.

*3.2.1. Related work*

Study of reference [15] is one of the few studies that considers directly the use of mobile RFID and proposes four application categories:


Reference [25] groups mobile RFID applications into the following zones:


Report of reference [22] focuses mainly on the enterprise market. However, a few consumer applications are presented to show the potential of the technology in the consumer market. Mobile RFID applications are categorized in five groups:

**1.** Applications for getting real time product information: For example, a service techni‐ cian touches the machine to service with his smartphone, and up-to-date service infor‐ mation (for example last service date, instructions for additional service) is downloaded at his device.

**9.** Shopping: facilitating checkout procedures etc.

information about the advertised product.

mobile phone is in a hospital, it will be blocked.

provide automatic login to a system.

ble utilization of mobile RFID in this study.

applications.

tour sites.

spired by Nokia:

a mobile phone.

porting presence in the office).

Reference [27] defines seven scenarios for mobile RFID applications, which are partly in‐

Commercial Utilization of Mobile RFID http://dx.doi.org/10.5772/53480 255

**1.** Information retrieval: Mobile device helps to receive information on tagged items. In‐ formation would be stored in a database, which is accessed via mobile network. For ex‐ ample, a mobile phone user sees an advertisement on a poster and wants to get more

**2.** Data transmission: Means data transfer, for example for reading of electricity meters via

**3.** Automated messaging: Messages will be transmitted when the tags are read (e.g. for re‐

**5.** Device integration: Information retrieved from tags in the environment can indicate to the mobile phone, which could then activate certain functions. For example, when a mobile phone is placed in a car, support for hands-free can be activated or when the

**6.** Presence indication: RFID tag on the phone enables readers in the environment to iden‐ tify the phone. For example, the location data of a person in a building can be used to

In reference [8] two scenarios for physical interaction are introduced. The first one is a Smart Environment, according to which the user at home can interact with his personal electronic devices. The second one is about Information Heavy Situations, which can be applied for museum visits and guided tours. Transactions in supermarkets and fashion stores, buying car parking tickets, getting tourist information and using active posters are defined as possi‐

In reference [28], literature on mobile commerce (m-commerce) applications are reviewed. The result of this review reveals that location based services, mobile advertising, mobile en‐ tertainment services and games, mobile financial applications, product locating and search‐ ing, m-commerce in individual companies or industries are the possible m-commerce

Reference [4] defines mobile RFID as a service using mobile devices to download informa‐ tion from RFID tags containing information of a specific area like stores, restaurants and

Reference [29] executes a wide study about the utilization of mobile RFID. It describes many applications for RFID (e.g. buying electronic tickets, mobile payment, getting data about products, transportation, stock-trading, services like car rental, bike rental, car parking, taxi

**7.** Mobile payment: RFID tags in the mobile device store information for payment.

**4.** Voice services: Through tagged items making phone calls simplifies.


Reference [5] analyses commercial applications based on mobile RFID technology and de‐ fines three areas for it:


Reference [26] examines the utilization of RFID in mobile supply chain management and groups the application areas as follows:


**9.** Shopping: facilitating checkout procedures etc.

**1.** Applications for getting real time product information: For example, a service techni‐ cian touches the machine to service with his smartphone, and up-to-date service infor‐ mation (for example last service date, instructions for additional service) is downloaded

**2.** Applications for collecting real-time information: For example, sending specific time and location information about a position or status for some calculations like meter measurement for pricing (measurement is sent for pricing by touching a tag attached on a meter with the mobile device) or like recording travel expenses (a tag attached on the

**3.** Applications for automatic asset tracking: Instead of counting devices manually on re‐ mote sites, mobile phone can collect info from RFID tags on equipment (PCs, desks,

**4.** Applications for consumer marketing: Pointing onto a poster enables buying a video, a

**5.** Applications to initiate a call: A tag attached on a person's photo can be used to make

Reference [5] analyses commercial applications based on mobile RFID technology and de‐

**1.** Product ordering: RFID tags are used for getting the latest information about products

**2.** Transportation management: RFID tags are used to provide basic information of trans‐

**3.** Products receiving: RFID tags are used for checking the expected quality of the received

Reference [26] examines the utilization of RFID in mobile supply chain management and

**4.** Medical and pharmaceutical applications: identification and determining the location of

**7.** Public sector: passports, driver's licenses, counterfeit protection for bank notes, library

**2.** Security and access control: tracking people, controlling access to restricted areas.

and for ordering them in case of a positive buying decision.

ported products and to record exception information.

**1.** Transport and logistics: toll management, tracking of goods.

**3.** Supply chain management: item tagging, theft-prevention etc.

**6.** Agriculture: tracking animals, quality control etc.

**8.** Sports and leisure: tracking runners etc.

staff and patients, asset tracking, counterfeit protection for drugs. **5.** Manufacturing and processing: streamlining assembly line processes etc.

car dashboard sends the starting and ending mileage for an expense report).

chairs etc.) and send this information to the centralized tracking application.

at his device.

254 Radio Frequency Identification from System to Applications

song etc.

an automatic call.

fines three areas for it:

products.

systems etc.

groups the application areas as follows:

Reference [27] defines seven scenarios for mobile RFID applications, which are partly in‐ spired by Nokia:


In reference [8] two scenarios for physical interaction are introduced. The first one is a Smart Environment, according to which the user at home can interact with his personal electronic devices. The second one is about Information Heavy Situations, which can be applied for museum visits and guided tours. Transactions in supermarkets and fashion stores, buying car parking tickets, getting tourist information and using active posters are defined as possi‐ ble utilization of mobile RFID in this study.

In reference [28], literature on mobile commerce (m-commerce) applications are reviewed. The result of this review reveals that location based services, mobile advertising, mobile en‐ tertainment services and games, mobile financial applications, product locating and search‐ ing, m-commerce in individual companies or industries are the possible m-commerce applications.

Reference [4] defines mobile RFID as a service using mobile devices to download informa‐ tion from RFID tags containing information of a specific area like stores, restaurants and tour sites.

Reference [29] executes a wide study about the utilization of mobile RFID. It describes many applications for RFID (e.g. buying electronic tickets, mobile payment, getting data about products, transportation, stock-trading, services like car rental, bike rental, car parking, taxi ordering, admissions to museums, musical and sports events, automatic call of a technical service hotline) and demonstrates them with case studies.

**Mobile RFID Applications**

Commercial Utilization of Mobile RFID http://dx.doi.org/10.5772/53480 257

PUBLIC **BUSINESS** PRIVATE

Ýn-house B2B **B2C**

As it is seen in Table 1, mobile RFID makes an important contribution to the execution of mobile commerce [5]. M-commerce is a subset of e-commerce and is defined "*as any transac‐ tion with monetary value that is conducted via a mobile network"* [33]. Through m-commerce, in‐ teraction between supplier and customer is facilitated not only by a mobile network, but also by a mobile customer device. Possible mobile networks for m-commerce are conven‐ tional mobile carrier networks, WiFi networks or networks of local frequency technologies for unique identification capabilities for goods (e.g. RFID) (see Figure 6). That is to say, mo‐ bile RFID is one of the possible supporting technologies for m-commerce. According to mcommerce supported by mobile RFID, commercial interaction and transaction between suppliers and customers are realized through physical mobile interaction as described

**Figure 5.** Extended classification framework for mobile RFID applications

**E-COMMERCE**

Network: Internet (HTTP)

Network:

Device: PC

**Figure 6.** E-commerce vs. M-commerce

**M-COMMERCE**

• Mobile carrier network

This study focuses on B2C m-commerce applications enabled by mobile RFID. As a result of

**• Mobile marketing:** Mobile marketing is a sales approach that helps manufacturers, shop‐ ping malls, and service agencies to promote their products and services through interac‐

• Local frequency (RFID/NFC)

Device: Mobile device

• WiFi

this the m-commerce applications concerning B2C in Table 1 are defined closer:

above.

Using mobile RFID in B2B sector is considered in references [30], [31], [32]. Reference [30] provides information about a B2B case study in the retail industry supported through RFID technology and demonstrates that the RFID network can improve all relevant supply chain processes. In reference [31], mobile RFID technology is used to track and trace a product during supply chain activities (e.g. mobile product authentication service for consumers or an alert service for manufacturers). In reference [32], mobile RFID is used to manage prod‐ uct arrival inspection and loading in the context of transport management.

In Table 1, all applications found in the reviewed references are categorized according to the framework for mobile RFID applications.


**Table 1.** Mobile RFID applications in categories

#### *3.2.2. Commercial use of mobile RFID*

*Public* and *Private* applications of the mobile RFID classification framework are out of the scope of this study. In order to define commercial applications and the advantages of mobile RFID, this study focuses on *Business* applications. *Business* applications differentiate among *in-house-*applications, *B2B* and *B2C* applications. *In-house*-applications deal with the execu‐ tion of internal, non-commercial processes in enterprises. *B2B* applications comprise mainly commercial applications in supply chain management with business partners as well as ap‐ plications for logistic processes. *B2C* processes aim to sell goods to end-consumers. Figure 5 includes an extended classification framework for mobile RFID applications.

**Figure 5.** Extended classification framework for mobile RFID applications

ordering, admissions to museums, musical and sports events, automatic call of a technical

Using mobile RFID in B2B sector is considered in references [30], [31], [32]. Reference [30] provides information about a B2B case study in the retail industry supported through RFID technology and demonstrates that the RFID network can improve all relevant supply chain processes. In reference [31], mobile RFID technology is used to track and trace a product during supply chain activities (e.g. mobile product authentication service for consumers or an alert service for manufacturers). In reference [32], mobile RFID is used to manage prod‐

In Table 1, all applications found in the reviewed references are categorized according to the

**Public Voice Services** [22, 27], **Identity Management** [29], **City Information** (bus routes, train

**Business Mobile Commerce**: *Mobile Advertising* [4, 27, 28] via active posters [8, 22, 27, 29],

work attendance logs) [22, 25, 27, 28, 29]

**Sports and Leisure** (tracking runners) [26]

includes an extended classification framework for mobile RFID applications.

**Private Smart Living Environment** (presence indication, device integration, appliance

*Public* and *Private* applications of the mobile RFID classification framework are out of the scope of this study. In order to define commercial applications and the advantages of mobile RFID, this study focuses on *Business* applications. *Business* applications differentiate among *in-house-*applications, *B2B* and *B2C* applications. *In-house*-applications deal with the execu‐ tion of internal, non-commercial processes in enterprises. *B2B* applications comprise mainly commercial applications in supply chain management with business partners as well as ap‐ plications for logistic processes. *B2C* processes aim to sell goods to end-consumers. Figure 5

schedules, restaurants, stores) [4, 8, 15, 25, 29], **Mobile Learning** [15], **Health Services and Information** [15, 26], **Mobile Entertainment Services** [25, 28],**Agriculture**

reservation, ski area acess [29], renting a car, bike etc. [29]), *Mobile Payment* [8, 15, 27, 28, 29], **Asset Management** (inventory control) [5, 8, 22,26], **Transportation Management** (arrival inspection, loading, locating, searching, alert service) [5, 26, 29, 30, 31, 32], **Location Based Services** (data transmission for meter readings/pricing, progress reports,

monitoring) [8, 25, 27, 29], **Asset Tracking** [22], **Voice/Messaging Services** [22, 25],

*Product Ordering* [5, 15, 26, 28, 29] (e.g. electronic tickets for buses, car parking, museums, events, [8, 15, 29]), *Service Ordering* (e.g. taxi, technical service, hotel

uct arrival inspection and loading in the context of transport management.

service hotline) and demonstrates them with case studies.

**Management** [26]

framework for mobile RFID applications.

256 Radio Frequency Identification from System to Applications

**Application Areas Application Types**

**Table 1.** Mobile RFID applications in categories

*3.2.2. Commercial use of mobile RFID*

As it is seen in Table 1, mobile RFID makes an important contribution to the execution of mobile commerce [5]. M-commerce is a subset of e-commerce and is defined "*as any transac‐ tion with monetary value that is conducted via a mobile network"* [33]. Through m-commerce, in‐ teraction between supplier and customer is facilitated not only by a mobile network, but also by a mobile customer device. Possible mobile networks for m-commerce are conven‐ tional mobile carrier networks, WiFi networks or networks of local frequency technologies for unique identification capabilities for goods (e.g. RFID) (see Figure 6). That is to say, mo‐ bile RFID is one of the possible supporting technologies for m-commerce. According to mcommerce supported by mobile RFID, commercial interaction and transaction between suppliers and customers are realized through physical mobile interaction as described above.

**Figure 6.** E-commerce vs. M-commerce

This study focuses on B2C m-commerce applications enabled by mobile RFID. As a result of this the m-commerce applications concerning B2C in Table 1 are defined closer:

**• Mobile marketing:** Mobile marketing is a sales approach that helps manufacturers, shop‐ ping malls, and service agencies to promote their products and services through interac‐ tion with customers via their mobile devices [34]. Kotler [35] defines two basic marketing communications strategies: push and pull strategies. Push-based mobile marketing refers to any content sent by marketers to a mobile device, whether the consumer requests it or not and includes audio, short message service (SMS), e-mail, multimedia messages, or any other pushed advertising content [36]. While push marketing is marketer-initiated, pull marketing is consumer-initiated. Pull-based mobile marketing is defined as any con‐ tent sent to the mobile consumer upon request [37]. Consumer requests information about products and services that interest him. For classical m-commerce applications enabled by mobile device's Internet or Wifi, both of the mobile marketing communications strategies are applicable. Sending a SMS advertisement to consumer's mobile phone is an example for push mobile marketing. Searching the Internet for a product via a mobile phone is an example for pull mobile marketing. For m-commerce applications enabled by mobile RFID pull marketing strategy is viable. Only if the consumer wants to get more informa‐ tion about a product or a service, or if consumer wants to buy a product or get a service of the RFID tagged item, he can request it. Furthermore, the pull marketing strategy of RFID supported m-commerce is more effective than by classical m-commerce. Because in classi‐ cal m-commerce, getting information via mobile device's Internet service takes a lot of time and energy of consumer, while through RFID tags information gathering is very quick and convenient [5]. Advertising is an important method for the marketing mix ele‐ ment "communication" (see Section 4). Mobile RFID enables mobile advertising. Through active posters augmented with RFID tags, which advertise a product or a service, or through the tagged items themselves, marketers try to catch consumers' attention. If de‐ sired, information about goods is "pulled" very easily via a mobile device. In case of in‐ terest, the designated products and/or services can be ordered. Active posters can also be used for location-based mobile advertisements. By using their mobile devices equipped with RFID readers, consumers can read RFID tags, which are placed on boards, and get information about nearby services or products such as restaurants, cinemas [4].

*IT*- Advantages

Commercial Utilization of Mobile RFID http://dx.doi.org/10.5772/53480 259

*RFID*- Advantages *Mobilizing Business* - Advantages

IT-adoption enables organizations to increase efficiency through the automation of process‐ es and information management. As a special IT system, mobile RFID inherits this advant‐ age. RFID technology is a radical innovation in terms of business processes. It does not only automate business processes more efficiently, but it also changes them radically [37]. In ad‐ dition, it reduces inaccuracy of information caused by transaction errors (e.g. shipment er‐ rors, delivery errors etc.) [38], [39]. Substitution of expensive human work through a fully automatic identification system like RFID leads to an increase in information quality, higher data availability and higher speed of process execution, thereby to higher productivity, per‐ formance and cost savings [37], [38], [39], [40]. All of these advantages of RFID technology belong also to mobile RFID, which is a RFID-based technology. Mobile business solutions give users the flexibility to operate in a wireless computing environment anywhere [41] and anytime. Users can take advantage of information systems linking business processes among different departments within a company and among companies at remote locations [41]. Ability of accessing a corporate network anywhere and anytime is the primary motive

There are also some specific advantages of using mobile RFID in B2C applications. These

**• Advantages concerning Marketing Mix:** "*The marketing mix is a combination of tactical mar‐ keting tools that a firm uses to satisfy the target market* [44]". Four Cs marketing mix model, which is adopted in this study,3 groups the marketing tools into four categories: customer needs and wants, cost to customer, convenience and communication. According to the four Cs marketing mix model firms should sell only products that customers need and want. Consumers are more concerned with total costs of ownership of a product rather than its price. Convenience means the ease of buying and finding the product as well as finding information about the product. Consumers should be provided with the most convenient way possible for purchasing. Under communication, any form of communica‐ tion (e.g. advertising, public relations, personal selling, viral advertising) between a firm and its consumers is understood [45]. Using mobile RFID has a positive impact on the fol‐

3 Today's firms tend to execute their activities customer-oriented. Thus, the study adopts customer-focused marketing

*Mobile RFID* - Advantages

**Figure 7.** Inheritance classification for mobile RFID advantages

for adopting mobile enterprise solutions [42], [43].

lowing elements of four Cs marketing mix model:

mix model four Cs instead of product-oriented four Ps marketing mix model.

can be listed as follows:


### **4. Advantages gained by mobile RFID**

Advantages of using mobile RFID for B2C applications can be grouped as in Figure 7. Mo‐ bile RFID is a RFID-based mobile IT application. That is why, the advantages resulted from its characteristics of being an IT system, a mobile solution and a RFID-based technology have to be considered initially.

**Figure 7.** Inheritance classification for mobile RFID advantages

tion with customers via their mobile devices [34]. Kotler [35] defines two basic marketing communications strategies: push and pull strategies. Push-based mobile marketing refers to any content sent by marketers to a mobile device, whether the consumer requests it or not and includes audio, short message service (SMS), e-mail, multimedia messages, or any other pushed advertising content [36]. While push marketing is marketer-initiated, pull marketing is consumer-initiated. Pull-based mobile marketing is defined as any con‐ tent sent to the mobile consumer upon request [37]. Consumer requests information about products and services that interest him. For classical m-commerce applications enabled by mobile device's Internet or Wifi, both of the mobile marketing communications strategies are applicable. Sending a SMS advertisement to consumer's mobile phone is an example for push mobile marketing. Searching the Internet for a product via a mobile phone is an example for pull mobile marketing. For m-commerce applications enabled by mobile RFID pull marketing strategy is viable. Only if the consumer wants to get more informa‐ tion about a product or a service, or if consumer wants to buy a product or get a service of the RFID tagged item, he can request it. Furthermore, the pull marketing strategy of RFID supported m-commerce is more effective than by classical m-commerce. Because in classi‐ cal m-commerce, getting information via mobile device's Internet service takes a lot of time and energy of consumer, while through RFID tags information gathering is very quick and convenient [5]. Advertising is an important method for the marketing mix ele‐ ment "communication" (see Section 4). Mobile RFID enables mobile advertising. Through active posters augmented with RFID tags, which advertise a product or a service, or through the tagged items themselves, marketers try to catch consumers' attention. If de‐ sired, information about goods is "pulled" very easily via a mobile device. In case of in‐ terest, the designated products and/or services can be ordered. Active posters can also be used for location-based mobile advertisements. By using their mobile devices equipped with RFID readers, consumers can read RFID tags, which are placed on boards, and get

information about nearby services or products such as restaurants, cinemas [4].

product specific network as is done in the classical mobile commerce.

like in classical m-commerce.

258 Radio Frequency Identification from System to Applications

have to be considered initially.

**4. Advantages gained by mobile RFID**

**• Product and service ordering:** Activities concerning product/service ordering do not dif‐ fer from classical mobile commerce applications. In the context of mobile commerce ena‐ bled by mobile RFID, ordering is carried out via a mobile device on Internet or on a

**• Mobile payment:** Payment for product or service ordering occurs also via a mobile device

Advantages of using mobile RFID for B2C applications can be grouped as in Figure 7. Mo‐ bile RFID is a RFID-based mobile IT application. That is why, the advantages resulted from its characteristics of being an IT system, a mobile solution and a RFID-based technology

IT-adoption enables organizations to increase efficiency through the automation of process‐ es and information management. As a special IT system, mobile RFID inherits this advant‐ age. RFID technology is a radical innovation in terms of business processes. It does not only automate business processes more efficiently, but it also changes them radically [37]. In ad‐ dition, it reduces inaccuracy of information caused by transaction errors (e.g. shipment er‐ rors, delivery errors etc.) [38], [39]. Substitution of expensive human work through a fully automatic identification system like RFID leads to an increase in information quality, higher data availability and higher speed of process execution, thereby to higher productivity, per‐ formance and cost savings [37], [38], [39], [40]. All of these advantages of RFID technology belong also to mobile RFID, which is a RFID-based technology. Mobile business solutions give users the flexibility to operate in a wireless computing environment anywhere [41] and anytime. Users can take advantage of information systems linking business processes among different departments within a company and among companies at remote locations [41]. Ability of accessing a corporate network anywhere and anytime is the primary motive for adopting mobile enterprise solutions [42], [43].

There are also some specific advantages of using mobile RFID in B2C applications. These can be listed as follows:

**• Advantages concerning Marketing Mix:** "*The marketing mix is a combination of tactical mar‐ keting tools that a firm uses to satisfy the target market* [44]". Four Cs marketing mix model, which is adopted in this study,3 groups the marketing tools into four categories: customer needs and wants, cost to customer, convenience and communication. According to the four Cs marketing mix model firms should sell only products that customers need and want. Consumers are more concerned with total costs of ownership of a product rather than its price. Convenience means the ease of buying and finding the product as well as finding information about the product. Consumers should be provided with the most convenient way possible for purchasing. Under communication, any form of communica‐ tion (e.g. advertising, public relations, personal selling, viral advertising) between a firm and its consumers is understood [45]. Using mobile RFID has a positive impact on the fol‐ lowing elements of four Cs marketing mix model:

<sup>3</sup> Today's firms tend to execute their activities customer-oriented. Thus, the study adopts customer-focused marketing mix model four Cs instead of product-oriented four Ps marketing mix model.

**•** *Customer Needs and Wants*: It is essential to offer products that meet customer needs and wants. In order to determine needs and wants of customers, marketers need a good cus‐ tomer database. They may use mobile tags to provide links to specific mobile sites in which through various tools (e.g. questionnaires, voting) information about the needs and wants of customers are collected. The captured information are then analyzed and used to determine offerings for the target customer [46].

All of the listed advantages have positive impacts on the increase of customer satisfaction, keeping existing customers and thereby increasing customer loyalty as well as on gaining new customers. As customer satisfaction, customer loyalty and an increase in the number of new customers impact directly the revenue of a company, it is not wrong to conclude that

Commercial Utilization of Mobile RFID http://dx.doi.org/10.5772/53480 261

Although RFID is not a new technology, mobile RFID applications are still in their infancy and their business impact is still unproven. Most of the studies about mobile RFID in the relevant literature are limited to the realization techniques, application possibilities or to case studies. Commercial advantages gained by mobile RFID have not been discussed com‐ prehensively. In this study, based on a literature review B2C applications of mobile RFID are analyzed and commercial advantages of using mobile RFID for B2C applications are il‐ lustrated. In this context, first physical mobile interaction concept was defined. Following, mobile RFID was introduced as a supporting technology for physical mobile interaction. Af‐ ter the categorization of mobile RFID applications in the relevant literature, the possible B2C applications enabled by mobile RFID were defined. Finally, commercial advantages of using

This study sheds an insight into the business value of mobile RFID from a commercial view‐ point. Certainly, findings of this theoretical study have to be concretized and validated

1 Turkish-German University, Faculty of Economics and Administrative Sciences, Depart‐

2 Marmara University, Faculty of Administrative Sciences, Department of Business Infor‐

[1] Broll G., Siorpaes S., Rukzio E., Paolucci M., Hamard J., Wagner M., Schmidt A. Comparing Techniques for Mobile Interaction with Objects from the Real World. In:

mobile RFID has an essential impact on the revenue increase of a company.

**5. Conclusion**

mobile RFID were illustrated.

**Author details**

matics, İstanbul, Turkey

**References**

through case studies in future research.

Ela Sibel Bayrak Meydanoğlu1\* and Müge Klein2

ment of Business Administration, İstanbul, Turkey

\*Address all correspondence to: meydanoglu@tau.edu.tr


All of the listed advantages have positive impacts on the increase of customer satisfaction, keeping existing customers and thereby increasing customer loyalty as well as on gaining new customers. As customer satisfaction, customer loyalty and an increase in the number of new customers impact directly the revenue of a company, it is not wrong to conclude that mobile RFID has an essential impact on the revenue increase of a company.
