Service Request SR-kf-013
University of Phoenix
Nathan Branham
Joseph Duer
Monday, July 30, 2012
BSA/310
Kudler Fine Foods is looking to expand its market and establish a frequent-
shopper-program. There are several pitfalls that come with setting up a frequent-
shopper-program such as issues of privacy which raise questions about ethics, legality,
and protection of personal information.
First lets look at the ethical issues behind any establishment gathering information
about its patrons. It makes sense for companies to conduct market research. However it
all comes down to what kinds of information the company is storing in their databases.
Not only that there is also the problem of how the company might make use of this
information. Junk mail from the company is one thing that a customer might be forced to
deal with, but there is also the possibility that the company might decide to sell off the
customer 's information. Ethics must be upheld in order for the company to proceed with
their plans to begin a frequent-shopper-program. On another note, there is also a
possibility that the company might discriminate against poorer patrons because of their
inability to spend as much as wealthier customers. Good customer service must also be
upheld to prevent the loss of customers, and frivolous lawsuits. This brings me to my
next point.
The legal troubles could be tremendous if the frequent-shopper-program is not
handled properly. The problem exists that customers may view the way that a company
has handled their data as a violation of privacy. It is extremely unethical to do so, but
some companies will even sell off certain forms of data to third parties. Discrimination
of any kind is terrible, but running a loyalty program sort of builds in a discrimination
toward people of more modest means. Another issue is that if a company is keeping
information, then it must be held on a
References: ICLP the global loyalty agency. (2010). International Customer Loyalty Programmes Plc. Retrieved on October 25-26, 2011 from http://www.iclployalty.com/homePage?q=frequent-shopper-program Kudler Fine Foods Intranet (2011) Frequent Shoppers Program. Retrieved October 24-26, 2011 from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/intranet/sm/salesPlan.htm