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BSA 310 Frequent Shopper Program


BSA 310 Frequent Shopper Program fin571

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BSA 310 Frequent Shopper Program
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This 0 page Study Guide was uploaded by an elite notetaker on Wednesday November 11, 2015. The Study Guide belongs to fin571 at Kaplan University taught by in Fall 2015. Since its upload, it has received 29 views.


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Date Created: 11/11/15
Frequent Shopper Program University of Phoenix Frequent Shopper Program The development of Kudler Fine Foods frequent shopper program is designed to reward loyal customers based on their frequency and spending levels Frequent shopper programs are marketing strategies that are enabled by pointofsale technology to record and store customer purchases in exchange for rewards Appel p 156 2006 Further development of the frequent shopper program will focus on web based consumer shopping otherwise known as a businesstoconsumer program Web based advertising will contribute to cost reduction and provide effective consumer awareness The sales and marketing team have established a sustainable frequent shopper program in an effort to increase revenue by almost 5 Implementation of this program will have a straightforward approach that is attainable within a 12 month period To successful implement the frequent shopper program Kudler foods must evaluate all legal ethical and security considerations of the new program Legal Considerations In order to develop a fully functioning frequent shopper program Kudler Fine Foods must track and monitor shopping behaviors of consumers The gathering analysis and redistribution of information about consumer behaviors have many commercial benefits and can provide a better shopping experience Market research and demographic data can be used to better target products and produce better or customized products such data are becoming increasingly valuable National Research Counsil p 156 1994 As a result legal issues concerning privacy of consumers has received much more attention Kudler Fine Foods must consider privacy issues and how to properly treat private consumer information in order to protect public interest The use of personal information for any other use than specified by Kudler Fine Foods may lead to legal actions To protect company and public interest Kudler Fine Foods must properly train employees regarding all legal aspects Ethical Considerations The development of electronic commerce has proven to increase sales while reducing cost Electronic commerce can provide Kudlers Fine Foods customers with a wide range of shopping options Purchasing opportunities for a broader customer based will contribute to Kudler Fine Foods overall profit margins The use of electronic databases to facilitate routine business operations increasingly creates public concern over privacy Information system technology will allow Kudler Fine Foods to gather personal data about customer bases and use it to support vital business functions such as the authentication of individuals requesting service verification of credit and accounting information delivery of services and goods marketing decisionmaking and law enforcement Appel p 156 2006 Kudler Fine Foods must educated company employees about the ethical and social responsibility of handling sensitive personal information Security Considerations The development of database design often pays little attention to personal privacy concerns Unauthorized access to personal information that is not sufficiently protected can lead to identify theft or fraud Numerous incidents involving frequent buyer programs have indicated personal data was shared with manufacturers insurance and pharmaceutical companies and in some cases employers Appel 2006 Another major security concern is the ability to link consumers with specific purchases The problem many consumers face is the manipulation of personal information in undisclosed ways To ensure Kudler Fine Foods follows all ethical expectations proper development of secure databases must be implemented to accommodate the e commerce service Financial Analysis The frequent shopper program will require minimal funding to begin operation Advertising can be conducted electronically orally and through the use paper fliers The program will use a partner organization to reward loyal consumers The Rajiv and Bell argue that customer retention costs are generally lower than customer acquisition costs companies are better off focusing attention on their more loyal customers especially since the top 20 of customers account for 80 of revenues and often more than 100 of profits p180 2003 Kudler Fine Foods frequent shopper program will reduce marketing expenses by focusing attention toward retaining loyal customers and receiving sales increase based on loyal customer spending Conclusion Attracting new customers can be a daunting task for any business The frequent shopper program can be an effective tool for building a loyal consumer base at Kudler Fine Foods Offering reward points that can be trade for luxury items will influence customer loyalty To ensure a positive response from the public Kudler Fine Foods should develop a proactive approach to privacy concerns Keeping consumers involved and aware of how their information will be recorded and used will help prevent conflict Security and privacy of personal information should be the number one concern for Kudler Fine Foods frequent shopper program Reference Appel F 2006 The study of database design must address privacy concerns Info Comm amp Ethics in Society 43 155161 Retrieved May 17 2009 from httpwwwemeraldinsidhtcomlnsiqhtViewContentServlet Filenamepublishedemeraldfulltextarticlepdf3640040304pdf National Research Council 1994 Realizing the information future the Internet and beyond Retrieved May 17 2009 from httpbooksdoodlecombooks idTJConfSAszampDrintsecfrontcover RajivL amp Bell D 2003 The Impact of Frequent Shopper Programs in Grocery Retailing Quantitative Marketino amp Economics 12 179202 Retrieved May 18 2009 from EBSCOhost database Business Source Complete httpsearchebscohostcomquinasox directtrueampdbbthampAN16399192ampsiteehostIive


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