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Bsa 310 Frequent Shopper Program Essay

970 words - 4 pages

Frequent Shopper Program
December 2, 2010

Table of Contents

Table of Contents 2
Information about Frequent Shopper Program 3
Legal Considerations 3-4
Ethical Considerations……………………………………………………………………......4
Security Considerations…………………………………………………………………….4-5
Financial Analysis……………………………………………………………………………5

Conclusion 5
Reference page 6
Turnitin Originality Report…………………………………………………………………...7-8-9

Information about Frequent Shopper Program
Kudler Fine Foods frequent shopper program was designed to reward customer loyalty. The program is based on the frequency of shopping and a shopper’s spending levels. Such programs are used as ...view middle of the document...

It is important that Kudler consider these legal issues and treat the information collected to protect both themselves and the public interest. The information collected must be employed for only the specified purposes, or legal action may ensue. This requirement demands that employees handling information be trained about all aspects of the legal issues at hand.

Ethical Considerations
Electronic commerce applications have been demonstrated to reduce costs as well as increasing sales. E-commerce also can provide Kudler’s customers with additional shopping opportunities, leading to better profit margins for Kudler. However, there are increased concerns regarding privacy issues when electronic databases, such as these, are maintained. Kudler wishes to use the IT system 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, decision-making and law enforcement” (Appel, p. 156, 2006). In order to do so effectively Kudler’s employees must be well-trained in those duties which limit access to and use of personal information.

Security Considerations
Database design and development are not usually focused on the concerns of access to and protection of personal information held in those databases. This information is sensitive as it may be used for identity theft and other types of fraud. Frequent buyer programs have been shown to release information to manufacturers, pharmaceutical companies, insurance companies, and even employers. (Appel,2006). An individual’s purchases have to be considered as information that is to be held private and secure. This all stems from the concern an individual’s information may be used in undisclosed and unauthorized ways. Kudler must design and develop their database and e-commerce sites to be fully secure, so that they meet the ethical expectations of their customers and the marketplace.

Financial Analysis
The cost for startup of the frequent shopper program is minimal. Electronic, word-of-mouth and paper fliers are all inexpensive forms of advertising that may be...

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