Kudler Fine Foods Frequent Shopper Program: Case Study

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Service Request SR-kf-013 Scott Barron BSA/310 January 26, 2014 Sharon Foreman Ph.D. Service Request SR-kf-013 Frequent shopper programs are becoming increasingly popular and necessary for businesses to compete and retain customers. The Kudler Fine Foods Frequent Shopper Program could contain some possible issues and vastly have an effect on your organizational structure, along with potential legal, ethical and information security concerns. It is important for management to be aware that issues might occur based on a frequent shopper program; therefor it is my position to help you understand all aspects of such a program and make the transition to such a program as seamless as possible. I understand with any new project, especially the frequent shopper program…show more content…
Customers are trusting each merchant not to release their personal information to anyone, or entity that could potentially use their address or phone numbers in a harmful way. As stated by Valdez (2014), “Loyalty programs depend on the collection of customer information, which is used to personalize marketing campaigns, recommendations and discounts.” (para. 1). Therefore, customers should not be placed on a mailing list or calling list unless they approve the release of information to third parties with their signature of understanding and confirmation. Ethical Concerns Valdez (2014) advises, “Loyalty programs that reward decision makers may run into ethical issues when the decision maker is separate from the payer.” (para. 4) Frequent shopper programs must avoid kickbacks of any sort. If a customer is being rewarded twice, from a business and personal aspect, this can be considered a kickback. It is important to list the personal shopper depending if they are shopping for their business or employer versus personal use. Information Security

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