Kudler Fine Foods Frequent Shopper Program

Frequent Shopper Program Review

The necessity to track consumer purchases has come into question. The goal of the project being reviewed is to have a Frequent Shopper Program created, then implemented in order to track consumer purchases and award them with loyalty point. These points can then be redeemed by the consumer for various items. Before venturing further into the project there are concerns that need to be addressed prior to implementing such a creation.

Legal and Ethical concerns

Two of the top concerns with the formation of a frequent shopper program include both legal issues and ethical issues. Several of the legal issues can be addressed from an information security standpoint, but other concerns still linger. Kudler Fine Foods will need to implement a disclaimer on the site as well as clearly stated terms of use section that all shoppers must agree to prior to joining the program. Upon agreement to participate in the program, the signing of the agreement binds the consumer and Kudler Fine Foods legally to adhere to the terms of use as indicated in the agreement. The agreement should provide details concerning what is expected of both parties involved; including how loyalty points are obtained, delivered, and redeemed. Another area that will need to be covered is that the frequent shopper program is unbiased based on race, religion, or geographic location. Privacy is also called into play since consumer information will be stored within the company’s databases. This disclosure needs to be upfront and clear to the consumer that information obtained will not be used or sold to third parties for any reason.

Ethical concerns are stemming from this since Kudler Fine Foods is aiming direct mail promotional literature to high-income zip codes. This alone sends the wrong message to those shoppers in lower income areas that want to be a part of the program. There will be times that Kudler Fine Foods will be faced with is what type of data they...