Kudler Frequent Shopper Program Essay

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5/2/13 BSA/310 Frequent Shopper Program Kudler Fine Foods created a frequent shopper program which gives customers incentives to continue shopping there. Their rewards are determined by how much is spent on groceries and how frequent purchases are made. “Frequent Shopper Program proves the ability to gather data for marketing programs and run promotions for the loyal customers.” (Frequent Shopper). Web based advertising would allow for major cost reduction and provide helpful and effective consumer awareness about said products. In order for Kudler Fine Foods to develop a functioning frequent shopper program, it must track and monitor consumers shopping behavior. The drive of market research is to collect data on consumers and prospective consumers. The collected statistics support business decision making, which therefore diminishes the risks involved in making these conclusions. This type of research would also benefit the consumer by lowering the cost on items bought most, while giving them personalized incentives to return. As a result, legal matters concerning privacy of the consumer has risen and established far more attention. Kudler Fine Foods, as with any company, must consider consumers privacy and how to handle consumer information that will benefit the company, but also protect the consumer. Employees of such a company must also be trained properly regarding consumer privacy. Since the development of electronic commerce, there has been an increase in sales while also reducing cost. Because electronic commerce offers consumers a wide range of shopping options, there would also be a broader customer base, which in turn contributes to overall profit margins. Electronic databases also cause alarm to the public regarding privacy issues. The company must adhere to certain privacy policies and provide education for employees on the ethical and
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