Khóa luận tốt nghiệp: A solution for self-checkout system in smart shopping

To Investigate RFID Technology: This research will delve into the fundamentals ofRFID technology, examining its principles, components, and various applications.To Analyze Self-Checkout

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY

UNIVERSITY OF INFORMATION TECHNOLOGY ADVANCED PROGRAM IN INFORMATION SYSTEMS

HO CHI MINH, 2023

ADVISOR COMMENTS

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We would like to express our deepest gratitude to our supervisor,Ph.D Cao Thi Nhan, for her invaluable guidance, unwavering support,and insightful feedback throughout the entire process of researching andwriting this thesis Her expertise and encouragement have not onlymotivated us in all the time of our academic research, but have alsoenriched our understanding of the subject matter We are very fortunate

to have her not only being our mentor but also a source of inspiration.Her belief in our team's potential and the project's significance has been

a driving force behind our journey The mentorship provided has notonly contributed to the academic knowledge of this thesis but has alsoinfluenced my approach to future scholarly endeavors

Moreover, we would also like to thank all the lecturers in the

University of Information Technology — VietNam National University —

Ho Chi Minh City, especially the lecturers in the Faculty of InformationSystems, who have provided us invaluable knowledge throughoutacademic years

Beyond the academic realm, we are indebted to our family for theirunwavering support and understanding Their encouragement duringchallenging moments and celebration during milestones have been asource of motivation To our friends, who provided not only supportiveenergy but also occasional distractions that brought much-neededbalance during intense periods of research

This thesis is a collective achievement, a testament to thecollaborative spirit of our team and the guidance of Ph.D Cao Thi Nhan

We are thankful for the enriching experience and the opportunity to workwith such dedicated individuals

TABLE OF CONTENTS

Chapter1 INTRODUCTION 2

1.1 Motivation 21.2 Objectives 21.3 Scope of the research 31.4 Advantage and disadvantage 51.5 Structure of thesis 10Chapter 2 LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT 11

2.1 Self-Service Technology 112.2 Consumer motivation to use SST 13

2.2.1 Technology and SST adoption 132.2.2 SST and attributes 142.2.3 SST users and non-users 152.2.4 SST benefits and motivations 162.2.5 Situational factors 182.3 Self-Service in Retailer 19

2.3.1 Mobile payment 192.3.2 Interactive Screens 202.3.3 Self-Scanning Service 202.4 Behavioral Theoretical Background 21

2.4.1 Technology Acceptance Model 222.4.2 TAM Extensions 25

Chapter 3 Research Context and Methodology

Advantage of RFID in comparison to barcode3.3 Application of RFID in Retail

3.4.1

3.4.2

3.4.3

UniqloDecathlonAmazon3.5 IOT devices

3.5.1 Component RFID in IOT Development

Low-Frequency Tags (LF)High-Frequency Tags (HF) - Most widely used around the world

3.6 Technology used

3.6.1 Backend

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3.6.2 — Frontend3.6.3 IOT

3.6.4 — Database3.6.5 _ Integrated checkout SystemChapter 4 | Construct A sample RFID Checkout Models

4.1 System Analyze and Design

4.1.1 | Use-case model4.1.2 Use-case specification and activities diagram4.1.3 | Sequence Diagram

4.1.4 — Class Diagram

4.2 Database Structure

4.2.1 Database schema

4.2.2 — Database description4.3 Development model for Self Checkout in Smart Shopping

4.3.1 User4.3.2 AdminChapter 5 Conclusion

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LIST OF FIGURES

II›ns-020ÿ.0/00i0:1.00101707Ề77 ồ 23Figure 3-1: HOW RFID WOTkS -«-+cs<c+xrtxrkttrrttrrttrirtiiiiiririiriiriiiriiie 30Figure 3-2: “Smart Label Inlays” adapted by Stefan Hofmayr 31Figure 3-3: “RFID-tag Gistinction” essssesssssssseessstescsseessnteessneeseseessnteesseessneeesneeesneessasess 31Figure 3-4: Commercially exploited bands of the radio-frequency spectrum 32Figure 3-5: “Electronic Product Code TType Í” -e-cceereeeiriiririirirre 34Figure 3-6: UNIQLO RFID tags are embedded with UHF RFID tags 45 Figure 3-7: Slim UHF Tag u scesssssssesssesssecsssesssesssessssesseessssessseessessssessueesssessueesasessessusesseesneesases 46Figure 3-8: Omnidirectional RFID Label eesseeesseesssessssessesssstesseessteesseesntessteesntessteesneesaass 46Figure 3-9: Good directional RFID labelL e cssreerxeersreerrrxrirrrrerrree 46Figure 3-10: UNIQLO smart SCr€CM seeseeessesseesecstesstesseeseesteeneessesstessessseesteestesseesesatesseenseess 47Figure 3-11: UNIQLO self-checkout proC@dUTG -.«« cceecrrxerrrrrrrrrerrrrrrree 49Figure 3-12: UNIQLO revenue in 24h on 11-11-2018 ‹e«eeccxeeeee 51 Figure 3-13: DECATHLON HEADQUARTER sscc ii 52Figure 3-14: Herve D’Halluin, leader of RFID at Decathlon - 52Figure 3-15: Amazon just walk out S€CtÏOII 5cccSreekerkireiriirrre 55Figure 3-16: Amazon implemented RFID tag -se-cccsersreerrrerrrrrrrrrree 56Figure 4-1: Admin USE CASE -cccsccrtetrrrrtrrrrttrtrtrriertrirrrriirrrrirrirrrrirrrrrrrreree 74Figure 4-2: Write item data to RFID tag detail US€ CaS@ -cc-ccceereee 75Figure 4-3: Manage inventory detail USC CAS@ «series 75Figure 4-4: Manage product detail US€ CASE essesssssessesstsssstesseesntesseesntessiessntessteenneesaaes 75Figure 4-5: Mange profile detail USC CaSC seesssssssesseestesstsssstesseesntessteesntesstessntessteesneesaass 75Figure 4-6: Mange order detail US€ CaSe esseesssesssecssesssesssessssessseessserseesssesseessssesseessneessses 76Figure 4-7: CUStOMEL USEC CASE essessecsectesesstecstesecstecstessecseecntssseesteesessseestecatesseestesatesseenseess 76Figure 4-8: View product detail US€ CaSC seesssessesstesesstsssstesssessstesseesntessiessseessteesneesaaes 77Figure 4-9: Manage mobile cart detail USC CaSC ssssssesssscsssesssessssesseessssesseessseesssessneessees 77 Figure 4-10: Self checkout detail uS€ CaSC sesssessstesssesssntesssteersntessseersneessseessntessasess 77

Write item data to RFID tag e-csceeerrirrrriirriirrririrrrrree 82 [nSert DFOdUCT -scc vi th tr rrrrriey 84 Update pFOUC cty nykt 85Delete prOdUCE ccs<ccrkeerrrkrtrrrirttrirrrriirrrirrrrirrrirrirrrrerrierrie 86Search DFOdUCE c-+cc+crkstrkrtErirttirtkrirtririiiiiriiiriiriirrrrrie 87View order ni ẻ 88SearCh OTT - «-©55<+xtExktEEEEEk HH HH1 1H11 rie 89

Scan RFID item tO CATE cccsccrvecrektstrirrriikirtrirrrirrrirrirrrree 90

Delete item from Mobile Carta eseecsseessseccsteessseeesteesseecssteeeseeesneeeeneeeees 92View product information -.c-ccccssreereekrirtirtrkiirierree 95

TM POT INVENCOLY eeeeseecseecseesseeseeseesseenseeseessesteceatesseenseeaeesseeneenteeaeeneesneesaeenseess 96

Inventory CHECK v ccesscsssecsssetessesssccsssaseessscsensesssecessesssesssecessessseecssessusesseessaessseees 97Add item to ChecKOUt CaF ccsccscsccrersrertrrirrrriirtrrirrrrerrrirree 98Delete item from checkoutf CaFĂ -ccccsexrrseretrrrrrrrrrrree 100Change DASSWOFC s c5+sSkE TH HH re 101View product inforImatÏOI ee ccxererrerrrrerrrrirrrrrrrriirrrrrerrrre 102Search product detalÌ, -ccsecerrerrrrrrrrirtrirrrrrirrrrirrrirrriree 103Register MEMbETSHIP eecseccssecseecseecseesssecsseessseesseeseesseessseesssessueesseersseeses 104 Membership get Point eesscsssecsssecssecsessssecsessssecssessssecssessseeestecsseessseeseesss 105

SCCULILY Sate sesseecssecsesstecseecsessseeseesseesseestessessseestessessseestesseeseestesseeneesseenseeaseeaes 106

Sequence Sign in for AMIN -cccecerieerirrrririrririirrree 107Sequence Write item data to RFID tag -.-. c-ceree 108

Sequence IMPOrt INVENOTY eee sen Ha ườu 109

Sequence Inventory CheCÌK «-sxsccveekxeekreertetkriitrrrrrrirrierrree 110 Sequence Insert Product sscsssecssccssecseecssecseesssecsseessseeseesseessseeseesseeeseesss 111

SEQUENCE SCCULILY Ø4f@ s-cc+crsrrrrrirrrirrirtrirrrirrirrirrrrrrrrirrrree 126

Class admin manageImennt -‹ xeecxeereerreekrtetkrrtrrrrrrrrree 127 Class MANAGE pFOdUC -cs-cs<SSxteeEeEEkitkrirtrkrtkrirtrirrrrrrrrrrke 128Class MANAGE OT@F -+xxcsrketkkrttrirtriitkiirrririiiiiriiiirrree 128Class manage ÏnV€TOFV c-‹ +ckrtkretEkiiiEirriiiiiiiiiirie 129Class manage mobile CaFĂ -cssscccverrrrrrrrterrrrrrrrrrrrrrrrrrrrree 130C]ASS CUSCOMEL c c<ccrsErrtErrttrirttrirttrirtiriiririiiirririrree 131Database SCHEMA.L sesssesesssescsstessnteesstecssteeesneecsnseecsneessaeeesatessaeessatessnneessaees 132 Customer Scan QR code to access Mobile Cart 137Mobile Cart with imstructions Ì -«-. -ceerreerrrireree 138Mobile Cart with instructions 2 ecereeeriririirirree 139Product details MOA] eessssssessescsecsessssesseesstecseesssesstessaeesstesseessteesieesse 140Mobile Cart Ít€rms -cccxkrerrirtrirriiriiiiiriiiiriiiree 141Checkout Counter Home Page -cecccveerteeerieerirerrirrrrrree 142 Checkout Counter with Scanned ÏItem -c-secessxersess 143

Figure 4-97: Security pop up for verifying Ïtem «-cceecseexceerreerree 164 Figure 4-98: Security gate show product need to be VerlfY - 165Figure 4-99: List of item verified successfulÌy -rserirriirre 166Figure 4-100: The gate locked after an unpaid item detected 167Figure 4-101: List of Unpaid item c-s«cerxeerrrierrrrirtrrirrrrrirrirrrrrrrrierrrre 167Figure 4-102: The gate unlocked after all item Verified 168

LIST OF TABLES

Table 3-1: RFID-Frequencies Sources: „Operating Frequencies “by

Electro-Com: 2004, Intermec 2004 wc ccccscscscsssscssesscscsssssesssssecssssesssssesssseseevecssesesesesessssenerevessseseeeeeaes 34

Table 3-2: Advantage of RFID over baFCO@ cce-ccesererrkrrererrrterirrrkrkke 37Table 4-1: List Of aCEOTS 5-52 HH HH HH HH gà này 78Table 4-2: List Of USC CAS© -S+ HH HH HH H111 ghi 79Table 4-3: Database description for Order- -c-crscxrrerrirrrirrrreree 133Table 4-4:Database description for PrOducct cssssssssessssssssesssessssesseessseesssessseesssessseeses 134 Table 4-5: Database description for OrderÏte1m -‹«‹cceecxeexeeeereerree 134Table 4-6: Database description for RFID tag -ccsereexrrsrrirerre 135Table 4-7: Database description fOr S€TF sc5ceeceserveereextserteerexrserreerxee 135Table 4-8: Database description for Cart Ïfem « c«ecccsrveerxeeereerrerrree 136Table 4-9: Database description for MemberShiip -.-. ‹«-cccvececeeeerrsee 136

LIST OF ACRONYMS AND ABBREVIATIONS

The integration of Radio Frequency Identification (RFID) technology into retail

environments has led to the development of efficient and convenient self-checkoutsystems This research conducts an in-depth development of a self-checkout systemenhanced by RFID tag technology The system leverages RFID tags attached to eachretail item to enable seamless and automated transaction processes By utilizing RFIDtechnology, the self-checkout system eliminates the need for manual barcodescanning, reducing customer wait times and enhancing the overall shoppingexperience The checkout turnover rate increases because the checkout desk work onthe store side is reduced When it is crowded with people, it is possible to preventcongestion at the checkout counter by installing multiple payment machines.Eliminating congestion at the checkout counter increases customer satisfaction andprevents crowds around the checkout counter The system architecture includesREID readers; a web site system receives the data from RFID reader and process thepayment of shopping session By studying methodologies like Communicationbetween Web system and IOT device through MQTT protocol and automaticshopping smart system, the result will be a fully automatic system of shopping andpayment Furthermore, the research addresses potential challenges such as tagreadability, privacy concerns Overall, this study demonstrates the transformativepotential of integrating RFID tags into self-checkout systems, paving the way for

more efficient, customer-centric retail experiences

Chapter 1 INTRODUCTION

In the fast-paced world of modern retail, convenience and efficiency areparamount With the emergence of self-checkout systems, consumers have beenempowered to take control of their shopping experience, reducing wait times andstreamlining the transaction process One technology that has played a pivotal role inenhancing the self-checkout experience is Radio-Frequency Identification (RFID)

RFID has emerged as a transformative force, offering numerous advantages in

inventory management, loss prevention, and customer satisfaction within the retailindustry

This thesis explores the integration of RFID technology into self-checkoutsystems, shedding light on the profound impact it has had on the retail landscape As

self-checkout becomes increasingly prevalent in supermarkets, department stores,

and other retail environments, understanding the role of RFID in optimizing this

process is essential This introduction provides an overview of the motivations,

objectives, and structure of this thesis, setting the stage for a comprehensiveexamination of the subject

1.1 Motivation

The motivation behind this research lies in the growing significance of RFID

technology within the realm of retail As the global retail industry continues to evolve,

it faces various challenges, including inventory inaccuracies, shoplifting, and theneed to enhance the overall shopping experience Self-checkout systems have become

a popular solution to address these challenges, but their efficiency depends on theaccuracy of inventory management RFID, with its ability to provide real-time data

on product location and availability, offers a promising solution to these issues

1.2 Objectives

This thesis aims to achieve several key objectives:

To Investigate RFID Technology: This research will delve into the fundamentals ofRFID technology, examining its principles, components, and various applications.

To Analyze Self-Checkout Systems: A critical analysis of self-checkout systemswill be conducted, including their evolution, advantages, and limitations

To Explore RFID Integration: The primary focus will be on the integration of RFIDtechnology into self-checkout systems, considering how it enhances inventorymanagement, reduces losses, and improves the customer experience

To Assess Real-World Implementations: Case studies and examples of real-worldimplementations of RFID in self-checkout systems will be examined to provide

practical insights

1.3 Scope of the research

The scope of the research on RFID in self-checkout systems is broad and

encompasses several key areas

RFID Technology:

The research covers an in-depth exploration of Radio-Frequency Identification

(RFID) technology, including its principles, components, and various applications

beyond self-checkout systems

A primary focus of the research is the integration of RFID technology into

self-checkout systems This includes understanding how RFID enhances inventory

management, reduces losses (e.g., through theft or misplacement), and potentiallyimproves the overall customer experience

Real-World Implementations:

The research explores real-world implementations of RFID in self-checkoutenvironments This may involve case studies and practical examples from variousretail settings to provide insights into how RFID is used effectively

Impact on Retail Operations:

The study assesses the impact of RFID integration on retail operations Thisencompasses evaluating the efficiency gains, cost savings, and potential revenueincreases resulting from RFID technology in self-checkout systems

Challenges and Limitations:

The research also acknowledges and examines any challenges, limitations, ordrawbacks associated with RFID integration in self-checkout systems This could

include issues related to cost, technology compatibility, and privacy concerns

Practical Implications:

The research explores the practical implications of RFID technology for both retailersand consumers It may discuss how RFID affects store operations, staffing

requirements, and the shopping experience from the customer's perspective

Future Trends and Recommendations:

The scope extends to considering future trends in RFID technology and self-checkoutsystems It may offer recommendations for retailers looking to implement or enhanceRFID-based self-checkout systems in their stores

Interdisciplinary Insights:

Depending on the depth of the research, it may incorporate insights from variousdisciplines, such as technology, business, and consumer behavior, to provide acomprehensive view of the subject

Geographical and Industry Variations:

The research may also consider geographical variations in the adoption of RFID inself-checkout systems and potential differences across various retail industries.

Ethical and Privacy Considerations:

Ethical and privacy considerations related to RFID usage in self-checkout systems

are within the scope, including discussions on data security and customer privacy

concerns.

Comparative Analysis:

Depending on the research's objectives, it may involve a comparative analysis ofdifferent technologies used in self-checkout systems, including RFID, barcode

scanning, and mobile app-based solutions

The scope of this research is comprehensive, aiming to provide a well-rounded

understanding of how RFID technology is transforming self-checkout systems in the

retail sector and the implications of this transformation on various stakeholders Theresearch may also highlight areas for further study and development within this field

1.4 Advantage and disadvantage

Advantages

Efficiency and Speed: RFID technology significantly reduces checkout times

Customers can quickly scan multiple items simultaneously, resulting in shorter

queues and enhanced shopping experiences

In a retail store using RFID for self-checkout, customers can place their entireshopping basket on the scanner at once RFID readers quickly identify all itemssimultaneously, making the checkout process much faster compared to traditionalbarcode scanning This efficiency reduces wait times and enhances the overallshopping experience

Inventory Management: RFID enables real-time inventory tracking Retailers can

monitor stock levels accurately, reduce overstocking or understocking issues, and

improve supply chain management

Consider a retail store implementing RFID for inventory management Each product

is equipped with an RFID tag, allowing for real-time tracking As items are sold,

RFID readers update the inventory automatically This enables the store to monitorstock levels continuously and promptly restock popular items The accuracy andspeed of RFID contribute to efficient inventory management, helping the store

maintain optimal stock levels and improve overall operational effectiveness

Loss Prevention: RFID tags can help reduce theft and fraud Alarms can be triggered

if an item with an active RFID tag leaves the store without being properly scannedand deactivated

In a retail environment utilizing RFID for loss prevention, each item is equipped with

an RFID tag As customers exit the store, RFID readers at the exit gates detect any

items that haven't been properly deactivated or paid for If an item with an activeRFID tag passes through without being processed, an alarm is triggered, alerting storestaff to potential theft This real-time monitoring and instant identification ofunprocessed items enhance loss prevention efforts, deterring theft and improving

overall security in the store

Reduced Labor Costs: Self-checkout systems with RFID technology can reduce theneed for human cashiers, leading to potential cost savings for retailers

In a retail setting employing RFID technology, the automation of tasks contributes to

significant labor cost reduction Instead of manually scanning each item duringrestocking or inventory checks, RFID readers can quickly and accurately identifymultiple items simultaneously This reduces the need for extensive manual labor inthese processes, allowing staff to focus on more complex tasks, improving overalloperational efficiency, and lowering labor costs for routine activities

Customer Empowerment: Self-checkout with RFID allows customers to havegreater control over their shopping experience, from scanning items to paying forthem.

In a retail store embracing RFID technology, customers are empowered with a

seamless and efficient shopping experience RFID-enabled self-checkout stationsallow customers to place their items on the scanning area, and the RFID readersquickly identify and register each item This hands-on approach empowers customers

to complete their transactions independently, avoiding long queues and delays Theuser-friendly nature of RFID technology enhances customer satisfaction, providingthem with more control over their shopping process and contributing to an overallpositive shopping experience

Enhanced Data Analytics: RFID generates valuable data on customer behavior,helping retailers understand shopping patterns, preferences, and trends, which caninform marketing and inventory decisions

Each item with an RFID tag provides detailed information about its movement withinthe store, including popular product areas and customer preferences With accurateand real-time data, retailers can analyze buying patterns, optimize productplacements, and make informed decisions to improve the overall shopping

experience This empowers retailers to tailor their strategies based on comprehensive

insights, leading to better customer satisfaction and increased operational efficiency

Convenience: RFID-equipped self-checkout systems are user-friendly, as customersdon't need to locate and scan barcodes individually This convenience can lead toincreased customer satisfaction

Disadvantages:

Cost: Implementing RFID technology can be expensive for retailers, as it involves

purchasing RFID tags, readers, and infrastructure Smaller businesses may find the

initial investment prohibitive

Consider a retail business looking to implement RFID technology for inventorymanagement and checkout The initial costs include purchasing RFID readers, tags,and upgrading the existing systems For instance, investing in RFID-enabled scanners

at checkout and RFID tags for every product can be a significant upfront expense.The implementation costs might involve training staff to use the new technology andpotentially modifying the store layout While the long-term benefits are substantial,the initial investment can pose a challenge for smaller businesses with limitedbudgets, impacting the decision to adopt RFID technology

Technical Challenges: RFID technology may encounter technical issues, such asinterference from other devices or signal range limitations Ensuring reliable system

performance can be challenging in certain environments

For instance, metal shelves or certain materials may obstruct RFID signals, affectingthe accuracy of item detection Addressing such technical challenges requiresongoing maintenance, troubleshooting, and possibly investing in additionaltechnology to mitigate signal interference These technical hurdles underscore the

importance of thorough planning and continuous monitoring to ensure the seamless

operation of RFID systems in a retail setting

Privacy Concerns: RFID tags contain unique identifiers that could potentially be

linked to individual shoppers, raising privacy concerns Retailers must handle this

data responsibly to protect customer privacy

For instance, customers may feel uneasy about the potential for their shopping habits

to be tracked and analyzed Retailers must implement robust privacy policies, securedata handling practices, and transparent communication to address these concerns.Failure to address privacy issues could result in a negative perception amongcustomers, impacting trust and potentially leading to resistance or hesitancy toembrace RFID-enabled services

Initial Setup and Maintenance: Installing and maintaining RFID systems can be

complex and require specialized knowledge and resources

For instance, if RFID readers are not regularly maintained, they may fail to accurately

detect tags, leading to inventory discrepancies or checkout errors Routinemaintenance tasks may include checking and updating software, replacing faultyRFID readers or tags, and ensuring that the entire system is functioning optimally

Training Requirements: Employees may need time to become familiar with RFIDself-checkout systems, and retailers must invest in training to ensure a smoothtransition

For instance, employees responsible for inventory management and checkout

processes need to be trained on how to use RFID readers, troubleshoot common

issues, and interpret data generated by the system Training programs should coverthe basics of RFID technology, its applications, and any procedural changes in dailytasks

Limited Item Compatibility: Not all products are suitable for RFID tags Itemsmade of certain materials or containing liquids or metals can interfere with RFIDsignals

Retailers may need to address these challenges by exploring alternative tag designs,

experimenting with placement strategies, or considering supplementary technologies

for items with limited RFID compatibility Recognizing and mitigating suchlimitations is crucial to ensuring the broad applicability of RFID systems acrossdiverse product types in a retail setting

Dependency on Technology: Any system outage or technical glitch can disrupt checkout operations, leading to frustration for both customers and retailers

self-Potential for Errors: While RFID is generally accurate, there is still a possibility oferrors, such as missed scans or tag malfunctions, which can affect inventory accuracy

and revenue

In summary, RFID technology in self-checkout systems offers numerousadvantages, including increased efficiency, improved inventory management, and

enhanced customer experiences However, it also comes with challenges, such ashigh initial costs, privacy concerns, and technical issues Retailers must carefullyweigh these pros and cons when considering the implementation of RFID in theirself-checkout processes.

1.5 Structure of thesis

The thesis unfolds across a structured framework designed to address the researchobjectives and contribute to the existing body of knowledge The following chaptersdelineate the path of this research:

Chapter 2: Literature review and hypothesis development:

Delving into the existing research, this chapter critically reveals relevant theories and

studies It identifies gaps, conflicts, and trends that provide the foundation for thecurrent research Theoretical and conceptual frameworks shaping the study are alsoelucidated

Chapter 3: Research context and methodology:

A detailed context of the research design This chapter provides insight into therationale behind the chosen technology and emphasizes realistic considerations Acomprehensive understanding of these aspects is essential for contextualizing thesubsequent findings

Chapter 4: Construct a sample RFID checkout model:

Presenting the result of the research, this chapter utilizes tables, figures to illustratethe model The models are systematically analyzed and interpreted in the context ofthe research questions, forming the basis for subsequent conclusions

Chapter 5: Conclusion:

Summarizing the key findings, this chapter emphasizes the contributions of the study

to the practical applications It outlines recommendations based on the researchoutcomes and reflects on the overall significance of the study

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Chapter 2 LITERATURE REVIEW AND HYPOTHESIS

convenience (Safaei Manesh et al., 2021), and enhance service delivery for customers

and service providers alike (Walker et al., 2002)

This transformation began several decades ago with the introduction of the

Automated Teller Machine (ATM) (Dean, 2008) The aviation industry, according to

research, was among the pioneers in utilizing technology to offer swift and seamless

customer service, ultimately improving organizational productivity (Bitner et al.,2000; Walker et al., 2002) Airlines were among the first to introduce online ticketbooking and reservation systems, easing the travel-related stress for passengers(Wang et al., 2010) Over time, various industries have recognized the significance

of technology (Meuter et al., 2000) and have followed the example set by airlines,

adopting Self-Service Technologies (SSTs) to boost efficiency and profitability

In the realm of restaurants, SSTs have empowered management to betterunderstand their customers, customize services, and enhance customer satisfaction(Ansel and Dyer, 1999) Examples of SSTs in various industries encompass onlinebanking apps for transactions, ATMs for cash deposits and withdrawals, self-servicecheckout systems, hand-held scanners for supermarket purchases, mobile phone-based ticket purchases for buses, trams, and trains, and mobile payments for parkingtickets (Wang et al., 2010) The list extends to online stock brokerage transactions,pay-at-the-pump service at gas stations, in-room hotel checkout (Dean, 2008), andinnovations like Amazon's Just-Walk-Out technology, which allows customers toshop and pay seamlessly, eliminating the need for long checkout lines (Amazon)

11

Retail environments have undergone a significant transformation with the advent

of technology, redefining the interaction between customers and businesses Thesetechnologies come in various forms and sizes, offering a range of functionalities,including interactive catalogs, virtual fitting rooms, Point of Sale (POS) devicessupporting contactless payments, and even robotic companions serving as customerguides (Panano and Vannucci, 2019)

The adoption of SSTs offers numerous benefits, with customers’ willingness touse them influenced by factors such as personal technology anxiety (Collier andSherrell, 2009), complexity and ease of use (López-Bomilla and Lépez-Bonilla,

2013), long waiting times (Kokkinou and Cranage, 2015), and service quality (Wang

et al., 2010) Research indicates that customers often find face-to-face serviceencounters dissatisfying (Gupta and Sharma, 2021) SSTs are now prevalent invarious industries, playing a pivotal role in service delivery, benefiting customers,

employees, and service industry management (Walker et al., 2002) As consumerscontinue to embrace these new technologies, retailers are exploring innovative

technologies to enhance their strategies and drive growth (Walker et al., 2002)

According to Bitner et al (2000), retailers can significantly reduce costs related to

human resources by utilizing SSTs

As technology advances, retailers have introduced a variety of SSTs, but not allcustomers have warmly welcomed these advancements Resistance to technologyadoption can stem from a desire for interpersonal connections and social interactions

during service delivery, particularly among individuals who are less inclined to use

SSTs (Dabholkar and Bagozzi, 2002; Lee and Yang, 2013) Another group ofindividuals may resist adopting technology due to feelings of incompetence in usingand learning new technologies, a category often associated with older consumers(John and Cole, 1986)

In summary, the retail industry is undergoing a significant shift away fromtraditional service delivery models, where retailers solely provided services, toward

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a model where technology enhances in-store service delivery, allowing customers toactively participate in transactions and service delivery alongside retailers Examples

of this shift include interactive self-service kiosks and self-checkout systems in retailstores (Turner and Shockley, 2014) This service delivery approach has proven highlyprofitable and enhances customer retention (Porter, 1996) Retailers primarily adoptSSTs to improve the customer experience, leaving a positive and lasting impressionwhile enabling customers to co-create value (Amit and Zott, 2001)

2.2 Consumer motivation to use SST

2.2.1 Technology and SST adoption

Dabholkar (1996) was one of the pioneers in the exploration of servicequality within the context of Self-Service Technologies (SSTs), particularlyon-site options like self-service food ordering kiosks (Dabholkar, 1996) Sheintroduced the overall affect model, suggesting that assessments of servicequality are not solely determined by the attributes of SSTs but are influenced

by two primary predispositions: one's attitude toward using technological

products and the need for interaction with service employees (Dabholkar,1996)

Subsequently, Meuter et al (2003), similar to the TechnologyAcceptance Model (TAM) proposed by Venkatesh (2000), emphasized twoconsumer predispositions as highly relevant to SST usage: the need forinteraction, as initially proposed by Dabholkar (1996), and technology anxiety(Dabholkar, 1996; Meuter et al., 2000) Meuter defined technological anxiety

as a state of mind concerning the user's willingness and ability to usetechnology-related tools (Meuter et al., 2000, p 2)

In the context of technological predispositions among SST users, someauthors (e.g., Dabholkar & Bagozzi, 2002; Kinard et al., 2009) have extendedthis perspective to consider social anxiety as another significant characteristic.They argue that social anxiety can lead to a sense of losing control over SSTs

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when used in the presence of other customers (Dabholkar & Bagozzi, 2002).Customers might experience anxiety when being observed by others, whichcan lead them to believe that SSTs are not user-friendly, thus reducing theirintention to use SSTs (Dabholkar & Bagozzi, 2002; Kinard et al., 2009).Consequently, social anxiety can cause customer disorientation and make SSTusage more challenging.

2.2.2 SST and attributes

In addition to the overall affect model, Dabholkar (1996) introduced theattribute-based model, which outlines how consumers evaluate service qualityusing specific attributes related to Self-Service Technologies (SSTs) Theseattributes consist of five key characteristics:

e Speed of Delivery: This pertains to how quickly the service is provided.

e Ease of Use (Effort and Complexity): This aspect concerns how

user-friendly and straightforward the SST is, a concept corroborated by W

Lee et al (2012)

e Reliability (Accuracy): Reliability refers to the dependability and

precision of the SST This aligns with the work of Bitner (2001) and

Davis et al (1989)

e Control: This attribute relates to the level of control the user has when

using the SST, as proposed by Bateson (1985)

e Enjoyment: This dimension explores the extent to which users find the

interaction with the SST enjoyable

Bitner (2001), drawing from an analysis of 823 critical incident

encounters with SSTs conducted by Meuter et al (2000), highlighted twocritical attributes that influence the success of SSTs:

e Reliability: This includes both dependability and user-friendliness,

aligning with Dabholkar's attribute-based model

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e Advantage: This refers to the benefit provided by the SST, such as time

or cost savings, or the delivery of some other customer advantage

e Walker and Johnson (2006) synthesized factors that influence the

adoption and use of SSTs based on previous research Their list includes:

e Personal Capacity: This involves the user's self-belief that they are

capable of successfully using the machine

e Perceived Risk: This relates to the extent to which the device is

considered reliable and secure in protecting personal information

e Relative Advantage: This assesses the degree to which SSTs are viewed

as more convenient and faster compared to traditional face-to-face

encounters.

e Preference for Personal Contact: This gauges the consumer's preference

for human interaction over interaction with a machine

These models and attributes provide valuable insights into the factors thatshape consumer perceptions and behavior regarding SSTs

2.2.3 SST users and non-users

Research on the profiles of users versus non-users of Self-ServiceTechnologies (SSTs) has primarily focused on gender, demographics, and age,with age being the most revealing factor Several studies have shed light onhow age influences consumer preferences for SSTs:

Dean's study in 2008 supported the findings of a study by Simon andUsunier in 2007 Both studies concluded that as consumers age, theirpreference for SST over employee contact diminishes Older participantstended to prefer human interaction, displaying a behavioral predisposition toavoid SST Elderly consumers are often associated with reduced confidence

in their ability to use SSTs, a preference for human interaction, and a belief

that SSTs primarily benefit the company rather than the consumer Not

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surprisingly, older consumers reported significantly less willingness to pay a

premium for express checkout (Dean, 2008)

H.-J Lee et al (2010) conducted an empirical exploration of the

relationships among demographic factors (gender, age, education, and

income), consumer traits (technology anxiety, need for interaction, technologyinnovativeness), and the intention to use retail self-checkouts Their study didnot reveal strong direct correlations between demographics and the intention

to use SSTs, but it did show indirect relationships The authors concluded thatdemographic factors indirectly influence the intention to use retail self-checkouts through consumer traits In other words, individual differences inthe use of retail self-checkouts can be attributed to consumer traits that, tosome extent, are influenced by demographic factors

Subsequently, H.-J Lee et al (2013), in a reanalysis of genderdifferences, found that most of the processes related to perceived servicequality and usage of SSTs were similar between males and females However,

they empirically established differential effects on ease of use and the need forinteraction across gender

In summary, age appears to be a significant determinant of consumerpreferences for SSTs, with older individuals showing a stronger inclinationtoward human interaction and less confidence in using self-servicetechnologies Gender and other demographic factors indirectly influence theintention to use SSTs through consumer traits, and the impact of gender variesacross different aspects of SST usage

2.2.4 SST benefits and motivations

Cetto et al (2015) offer a unique and insightful perspective on themotivations behind the use of Self-Service Technologies (SSTs), emphasizingthat SSTs provide various perceived benefits that lead to both utilitarian and

hedonic motivations They suggest that human motivations can be categorized

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into cognitive (utilitarian) and affective (hedonic) dimensions, primarilyaimed at individual gratification and satisfaction, which serves as thetheoretical foundation for understanding why people engage with SSTs(McGuire, 1974) Their approach differentiates and recognizes both types ofmotivations Reflecting on the literature, they identify the essential utilitarianbenefits of SST usage, including:

Time Savings: SSTs ideally allow transactions to be performed morequickly than with a service employee, thus enabling customers to save

time

Control: SST usage provides the user with a sense of control over the

service delivery process

Reliability: Customers prefer SSTs that are perceived as accurate and

dependable, as this reduces the likelihood of errors compared to humanservice employees

Ease of Use: This aspect relates to the effort and complexity usersexperience when using SSTs A smoother and more straightforwardexperience encourages utilization

Avoidance of Service Employees: The ability to avoid interactions withservice employees, which may be inevitable at traditional service counters,

is seen as a benefit, particularly by those who prefer self-service

These utilitarian benefits align with the idea that SSTs serve as a means to

accomplish desired ends

On the other hand, Cetto et al (2015) propose hedonic benefits, including:

Enjoyment: Customers are more likely to use SSTs if they find theexperience enjoyable and fun

Novelty-Seeking: The novelty and challenge of trying new things and newapproaches with technology motivate some users to engage with SSTs

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e Feeling Challenged: The challenge provided by an activity is a key

predictor of flow, where users experience satisfaction by successfully

engaging with technology

The focus on benefits in their framework is justified by the Means-End

Chain (MEC) theory, which posits that customers perceive services and

products in terms of attributes that serve as means to achieve desiredoutcomes As positive feelings and satisfaction arise from benefits, thesedesired ends can be understood as benefits Therefore, the utilization ofservices and products is driven by the values and benefits they offer The MECtheory establishes the connection between utilitarian and hedonic benefits andvalues

In summary, this comprehensive perspective provides a deeperunderstanding of why people choose to use SSTs, considering both cognitiveand affective dimensions, and how the perceived benefits are central to theirdecision-making process

2.2.5 Situational factors

Situational factors play a significant role in shaping individuals’ attitudesand motivations toward using Self-Service Technologies (SSTs), and variousresearchers have explored these factors in-depth:

e Collier et al (2015): They conducted research focusing on several

situational factors, including Location Convenience, Employee Presence,Tolerance to Wait, and Order Size The impact of these factors wastranslated into Perceived Time Pressure and Shopping Effectiveness,which ultimately influenced attitudes toward using SSTs Factors like howconvenient the location is, the presence of employees, one's tolerance forwaiting, and the size of the order can all influence the perceived timepressure and shopping effectiveness when considering SST usage

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® Demoulin & DJelassi (2016): They analyzed situational variables such as

Time Pressure, Small basket, Coupons, Queue Length at SSTs, and Queue

Length at the Self-Service checkout They concluded that all of thesefactors have an impact on the use of SSTs Situational factors like timeconstraints, the size of the shopping basket, the availability of coupons, andthe length of queues can all influence the decision to use SSTs

e Morimura & Nishioka (2016): These researchers took a different approach,

categorizing situational factors into three distinct categories: socialinjustice, unattractiveness, and distraction Social injustice considerswhether the customer's wait is explained and socially justified.Unattractiveness relates to the physical environment of a checkout counterand how it contributes to negative evaluations and feelings Distractionmeasures the level of distraction perceived during the waiting period, oftenlinked to the presence of information-providing facilities around thecheckout counter

These studies highlight the complex interplay between situational factorsand individuals’ choices regarding SST usage Factors such as convenience,

waiting times, the environment, and distractions in the shopping context all

contribute to customers' attitudes and motivations in utilizing SSTs

Self-Service in Retailer2.3.1 Mobile payment

The traditional shopping experience involves customers selecting their

desired items, placing them in a shopping basket, and then proceeding to the

cashier for payment, which can be done with methods like credit cards or cash

However, in the contemporary shopping landscape, customers have the option

to make payments through mobile payment systems This method involvesscanning a QR code at the checkout using a store-specific mobile app.Retailers often introduce incentives, such as bonus points or discounted rates,

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specific to this mobile payment method to encourage higher acceptance andusage (references: ICA, Betala med mobilen, 2014; Guardavaccaro and

Venanzetti, 2016) This approach not only provides convenience but also

offers additional benefits to encourage customers to adopt mobile paymentsolutions

2.3.2 Interactive Screens

Interactive screens, as the name suggests, serve as a means forcustomers to engage interactively with Self-Service Technologies (SSTs).This type of SST is commonly deployed in the fruit and vegetable sections ofgrocery stores It is primarily used to weigh the fruits and vegetables thatcustomers select, and then a label with the item's weight information isautomatically generated Customers can then affix this label to thecorresponding fruits or vegetables At the self-checkout point, the barcode onthis label is scanned, facilitating a seamless and efficient process (references:ICA, Betala med mobilen, 2014; Guardavaccaro and Venanzetti, 2016) This

technology simplifies the weighing and checkout process for both customers

and retailers, enhancing the overall shopping experience

2.3.3 Self-Scanning Service

A self-scanning device empowers the customer to actively participate

in the service creation process, allowing them to operate it using a based device (Marzocchi and Zammit, 2006) Self-service scanning representsthe new generation's approach to making payments in stores, offeringefficiency, time-saving, and convenience In the case of ICA Gruppen, thereare three options for self-scanning services: self-checkout cashier, self-scanning with dedicated scanners, and self-scanning using a smartphone Thefirst two options are commonly available in grocery and retail storesthroughout Sweden (ICA, "Sjalvscanna med mobilen")

technology-20

Amazon's "Just-Walk-Out" technology provides a similar solution,offering one of the world's most advanced shopping technologies thateliminate the need for customers to wait in queues This checkout-free solutionallows customers to enter any Amazon Go store, where they scan their deviceusing the Amazon Go app at the entry point The technology thenautomatically detects when products are taken off the shelf and returned totheir respective places, tracking them in a virtual cart within the Amazon Goapp Once the shopping is completed, customers simply walk out of the store,and payment is made directly through their Amazon account (Amazon) Thisinnovative approach revolutionizes the shopping experience by streamliningthe checkout process and making it more efficient for customers.

2.4 Behavioral Theoretical Background

The incorporation of behavioral theories, such as the Technology AcceptanceModel (TAM), is crucial for understanding and predicting the relationships between

behavioral intention, actual behaviors, intention to use, and usage behaviors in thecontext of technology adoption TAM, in particular, has been widely utilized andcited as a valuable framework for explaining users' intentions to use specifictechnologies It provides valuable insights into understanding the customerperspective on the adoption of self-service technologies (SSTs), including self-checkout systems (SCSs)

A brief summary of the key points mentioned:

e Theory Background: TAM is rooted in the Theory of Reasoned Action

(TRA) and also shares similarities with the Theory of Planned Behavior

(TPB) These theories provide a foundation for understanding how beliefs,attitudes, and intentions influence technology adoption

e Relevance to SST Research: TAM has been extensively adopted by

researchers studying SSTs, as it offers a robust framework to explore andexplain customer behavior and attitudes regarding these technologies

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e Customer Perspective: TAM is well-suited for investigating customers'

intentions and actual usage of SCSs, which aligns with the focus of yourstudy on self-checkout systems in a grocery retail store.

By using TAM in our research, we can gain valuable insights into customers'perceptions, attitudes, and behavioral intentions related to SCSs It allows us toexplore how factors like perceived usefulness and ease of use influence theirintentions and actual usage This model serves as a strong theoretical foundation forunderstanding the dynamics of technology adoption from a customer perspective,making it an appropriate choice for our study

2.4.1 Technology Acceptance Model

The Technology Acceptance Model (TAM), developed by Davis,Bagozzi, and Warshaw in 1989, is a widely recognized framework forexplaining the behavioral intention and usage behavior of technology TAM

has been subject to several longitudinal studies aimed at predicting behaviors

and understanding the adoption of technology (references: Dabholkar &

Bagozzi, 2002; Weijters, Rangarajan, Falk, & Schillewaert, 2007; Bert

Weijters, Devarajan Rangarajan, Tomas Falk, 2007; Elliott, Meng, & Hall,2012; H Lee et al., 2010; Blut, Wang, & Schoefer, 2016; Lai, 2017)

TAM originated from the Theory of Reasoned Action (TRA) and is aninformation systems theory that suggests a relationship between attitudes,behaviors, and intentions (Fishbein & Ajzen, 1975) However, TAM differsfrom TRA by excluding subjective norms and focusing on the criticaldeterminants of behavioral intention The primary goal of TAM is tounderstand how external factors impact beliefs, attitudes, and intentionsrelated to technology use It posits that a consumer's beliefs about theusefulness and ease of use of technology will form their attitude toward thattechnology and subsequently influence their behavioral intention to use it

External variables, including technical characteristics, | consumer

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psychographics, and demographics, affect behavioral intentions through theintermediate variables of perceived usefulness (PU) and perceived ease of use

(PEOU) (Davis et al., 1989)

In TAM, as illustrated in Figure 2-1 (Davis et al., 1989), the model

extends TRA by introducing two constructs: perceived usefulness (PU) andperceived ease of use (PEOU) Perceived usefulness is expected to have adirect effect on behavioral intention (BI) to use technology, while perceivedease of use is supposed to influence perceived usefulness TAM suggests thatactual system use is determined by behavioral intention (BI), and this intention

is influenced by attitudes (A), which are defined by the two constructs, PU andPEOU, toward the use of technology (Davis et al., 1989) Recentinvestigations have supported the idea that both PEOU and PU directlyinfluence behavioral intention and attitude towards the adoption of newtechnologies (Smit, Roberts-Lombard, & Mpinganjira, 2018) This modelprovides valuable insights into the factors that drive the acceptance and use oftechnology

(E)

Figure 2-1: TAM model.

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Source: Davis, Fred & Bagozzi, Richard & Warshaw, Paul (1989) UserAcceptance of Computer Technology: A Comparison of Two TheoreticalModels Management of Science 35 982-1003 10.1287/mnsc.35.8.982.

The Technology Acceptance Model (TAM) is considered an attribute-based

model, and it has demonstrated better generalizability in comparison to othermodels like the Theory of Reasoned Action (TRA) and the Theory of PlannedBehavior (TPB) TAM has been successful in explaining a significant portion

of the variability in use intention and behavior, typically accounting for around40% of the variance (Venkatesh & Davis, 2000) It has received extensiveempirical support and has been widely applied in understanding technologyadoption and usage

However, TAM is not without its limitations and criticisms:

e Lack of Direct Relationship to Actual Use: In 2007, Bagozzi raised

concerns about the direct relationship between intention to use and actual

use He argued that, apart from intentions, various other factors maydetermine the use of technology by individuals, and the connectionbetween these two variables is not always straightforward In other words,the model may not fully capture the complexities of technology adoptionand usage

e Challenges to Variable Relationships: In 2009,Chuttur criticized the

relationships between the variables in TAM She pointed out that these

relationships may not be universally supported in all settings, and otherfactors, such as system experience, education, and age, can have a directimpact on system usage This challenges the core theoretical foundation

underlying the TAM model and suggests that the model may need to be

adapted or supplemented to account for these additional factors

e Applicability to Organizational Technology Acceptance: Ajibade (2018)

argued that TAM may be more suitable for explaining individualtechnology use and acceptance, as opposed to technology acceptancewithin organizations The context and factors influencing technologyacceptance may differ significantly between individual users andorganizational settings, which could limit TAM's applicability in certain

contexts.

In summary, while TAM has been a valuable model for understandingtechnology acceptance and use, it is not without its criticisms and limitations

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Researchers and practitioners should be aware of these constraints andconsider them when applying TAM in different contexts or when exploringtechnology adoption in more complex scenarios.

2.4.2 TAM Extensions

The development and extension of the Technology Acceptance Model(TAM) over the years reflect ongoing efforts to address its limitations andprovide a more comprehensive framework for understanding technologyacceptance Here are some of the key developments and extensions of TAM:

e TAM 2: Venkatesh and Davis (2000) introduced TAM 2 as an extension

of the original TAM In TAM 2, they added the concept of subjective normfrom the original Theory of Reasoned Action (TRA) Subjective normrepresents the influence of social norms and the perception of what othersexpect It has a direct impact on the intention to use a system, beyond theeffects of perceived ease of use (PEOU) and perceived usefulness (PU)

e TAM 3: Building on TAM 2, Venkatesh and Bala (2008) extended the

model further by dividing PEOU into two constructs: anchoring andadjustment Additionally, they introduced six new constructs to provide amore comprehensive understanding of technology acceptance

e Unified Theory of Acceptance and Use of Technology (UTAUT):

Venkatesh, Morris, Davis, and Davis (2003) proposed the UTAUT, which

integrates various determinants of technology acceptance, including

performance expectancy, effort expectancy, social influence, andfacilitating conditions UTAUT also considers moderating factors that caninfluence the relationship between these determinants and usage behavior

e TRAM (Technology Readiness and Acceptance Model): Lin, Shih, and

Sher (2007) introduced the TRAM, which integrates the concept oftechnology readiness (TR) with TAM Technology readiness encompasses

an individual's readiness and openness to adopting new technologies Thisextension seeks to provide a more holistic view of technology acceptance.These extensions and models were developed to address specificlimitations of TAM and provide a more comprehensive understanding oftechnology acceptance in various contexts

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Chapter 3 Research Context and Methodology

3.1 Internet of thing

The Internet of Things (IoT) is a concept that refers to the connection of everyday

physical objects or "things" to the internet These objects are embedded with sensors,software, and other technologies that allow them to collect and exchange data withother devices and systems over the internet Some brief information about the history,real-life examples, advantages, and applications of IoT:

In Real Life:

IoT is already a part of everyday life, and you may encounter it in various forms, such

as:

Smart Home Devices: Smart thermostats, lights, and security systems that can

be controlled remotely via smartphone apps

Wearable Devices: Fitness trackers, smartwatches, and health monitoringdevices that track and transmit data about your health and activities

Connected Cars: Modern vehicles are equipped with IoT technology fornavigation, entertainment, and safety features

Industrial ToT (HoT): Manufacturing plants and factories use IoT forpredictive maintenance, process optimization, and monitoring equipment

performance

Agriculture: IoT is used in precision farming to monitor soil conditions, crop

health, and automate irrigation

Smart Cities: IoT helps in managing urban infrastructure, including smarttraffic lights, waste management, and environmental monitoring

Advantages:

IoT offers several advantages, including:

e Efficiency: Automation and data collection can improve efficiency in various

sectors, from manufacturing to agriculture

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