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The cap’s flat RFID tag was activated when she paid at the register, linking her identity to her purchase (amount spent, items purchased, size, and payment method). On her next visit to a KK store, readers mounted at the entrance would recognize the tag and greet her by name. Video screens would direct her to clothes in her favorite styles and size. Her ID would also trigger discounts and automatically contribute the savings to a tax-free college account that she controls.

Mastering Market Entry: KK Forges’ Guide to Expansion Strategies

But privacy advocates objected, and the government began to regulate RFID use. KK could face fines and lawsuits, and it might lose customers. Dante hoped to show KK that the benefits of RFID outweighed the risks.

Dante urged KK to focus on truly informed consent and to communicate clearly with consumers about what the tags did. He recommended educational outreach to parents, who might not frequent KK stores or see its ads, and children, who may not fully grasp the technology. He also suggested KK should offer shoppers the choice of buying comparable tagged and untagged products. KK’s transparency might lead to higher sales and a more trustworthy relationship with its customers.