Frequent Shopper Program Research Paper

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Kudler Fine Foods Frequent Shopper Program Research Paper Ken Brown BSA/310 BUSINESS SYSTEMS Kudler Fine Foods Frequent Shopper Program Research Paper Kudler Fine Foods has several retail locations within the California and sells a variety of domestic and international foods from fresh bakery goods to specialty diary items. Kudler’s overall goal is to continue their growth potential by the expansion of services, increase the purchase cycle of their consumers by the incrementally raising customer loyalty and profitability and improve operation efficiency levels. Kudler Fine Foods seeks to establish a Frequent Shopper Program to facilitate the growth in loyalty and profitability to its consumer base…show more content…
In addition, Kudler Fine Foods is seeking to follow in the successful footsteps of the various retail services to implement a program of their own. A Frequent Shopper Program requires many steps in order to successfully implement. For example, the retail location that uses this program would require the development of a point of sale or POS system to integrate the capabilities of tracking order history through an online database and provide any discounts to a consumers frequent shopping with the store. However, there are several considerations, such as, legal, ethical and information security to evaluate before implementing a Frequent Shopper Program. The legal concerns that need to be addressed when considering implementing a Frequent Shopper Program are as follows • Protect any credit or medical information that pertains to the consumer, outside of this regulation there are “No laws prevent a supermarket from accumulating and selling information concerning the identity of customers and the products they purchase. The right to have personal information kept private, whether by state or federal law or regulation, extends only to credit and medical information, and it is not an absolute right.” (1999, August 25). The Augusta…show more content…
It is said that the “lack of security is the biggest threat to consumer privacy from external sources. Selling consumer data without the customer knowledge or permission is the major internal threat to consumer privacy” Marchany, R., & Tront, J. (2002). The concluding evidence of implementing a Frequent Shopper Program for Kudler Fine Foods demonstrates a few concerns to consider, the legal, ethical and information security issues. First, consider whether or not the data collected will pose legal ramifications for Kudler. Are we as an organization going to implement security controls to protect the consumer’s credit information, such as, credit card numbers, customer name and billing address? Are we going to utilize the purchase cycle data to analyze the habits of our consumers to market more products? Are we going to sell any of this information to marketing companies to help us to conduct ad campaigns for Kudler Fine Foods? Second, how do we deal with the ethical challenges that come with a Frequent Shopper Program, such as, Kickbacks? What type of preventative measures do we implement for our accounting and finance departments? Do we conduct bi-yearly training sessions to help educate our
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