Kudler Fine Foods Frequent Shopper Program

Kudler Fine Foods

Frequent Shopper Program

Matthew Eubanks

BAS/310

October 10, 2012

Brian Davis

Frequent Shopper Program

Kudler Fine Foods is an “upscale specialty food store” that has come to us with a request to develop and implement a frequent shopper program for them. Kudler Fine Foods currently has three locations in the San Diego area, and we will be implementing the program at all three locations. Kudler Fine Foods wants to increase profits while rewarding loyal customers who come to the store regularly. By implementing a frequent shopper program Kudler Fine Foods can track customer shopping habits and offer rewards, such as discounts and prizes for loyal customers when they reach a certain number of points and develop a list of the top-grossing items per person, and the company would then be able to see what is popular at specific times of the year and be able to market coupons and special incentives to entice customers to buy some of the less grossing items.

To gauge the cost effectiveness and risk of the project I am going to examine the legal, ethical, and informational security concerns of Kudler Fine Foods developing a frequent shopper program. The main goal is to make sure that when the program is put into effect there will be no negative feedback from the consumers and that it will develop a sense of loyalty between the store and its customers.

Legal

By implementing a frequent shopper program Kudler Fine Foods opens themselves up to legal and privacy concerns, which includes identity theft, matching, and discrimination. Loyalty programs collect customer information and store it in a database giving people the opportunity to abuse the information and system in place. I will go over several of the issues and concerns to see how we can best negate the problem.

Identity Theft

Identity theft is a major concern to consumers in today’s market, and a valid issue that needs to be addressed. Identity theft can be a major issue to a...