In this paper I am going to discuss the potential legal, ethical, and information security concerns related to the Kudler Fine Foods frequent shopper program and how any of this may or may not have an effect on the overall organizational structure on Kudler Fine Foods.
First, what is the Kudler Fine Foods frequent shopper program? This is program that is made up by the marketing departments and Kudler Fine foods to track customer purchase patterns and offer shopper incentives through a loyalty point programs. The beginning of this program will assist the Kudler Fine Food in inspiring customer loyalty and react to customer shopping orientations. For the customers of Kudler Fine Foods, specialty items are more vital than the price of the items they are intended to purchase, so in this case rather than offering daily discounts for purchase frequency, the company has united with a loyalty points program to reward customers with redeemable points for high-value gift items, airline advances or other specialty foods.
The prominent goals of the Kudler Fine Foods Frequent Shopper program is to encourage customer loyalty, to better react to customer's buying demands and to augment food governing skillfulness. A successful implementation of the program should augment revenue over time by modifying loyalty and meeting customer needs and decrease costs by amending inventory procedures.
At first glance I see great potential on legality issues and great potential to improve Kudler Fine foods. In regards to legality issues I notice that with tracking customer’s purchases could get into a privacy issue with the customer. Personally, I would not want my purchases to be cataloged and made into some report for a company. I also see a possible issue at how the word of mouth/solicitation of this program goes out. This is to be solicited by targeting high-income zip codes which in my opinion has great potential to be a big discrimination battle if word gets out. This would be a...