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Kudler Fine Foods - Frequent Shopper Program

Essay by   •  January 12, 2012  •  Case Study  •  676 Words (3 Pages)  •  1,534 Views

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Kudler Fine Foods

Frequent Shopper Program

University of Phoenix

Introduction

Kudler Fine Foods is an organization, owned by Kathy Kudler, which focuses on providing customers with the opportunity to purchase higher-end food products. Their objective is to reward customers for their continued loyalty so that they may continue to receive outstanding service and great products. The best way to reward them is to provide loyalty points for their increased purchases and visits to the store, thus creating the name, Frequent Shopper Program. The purpose of this program is to increase store earnings and track what items the customers are purchasing so they can always be available in the store. With a program such as this, there will concerns that will need to be addressed.

Legal Concerns

First, legal concerns are very important in maintaining the integrity of any program. This program will consist of customers providing their personal information in an effort to win various prizes. Kudler Fine Foods is responsible for the privacy and confidentiality of each and every person's information. Any breach in the privacy of a customer's information could lead to lawsuits. Lawsuits could lead to loss of revenue and customers. Staying within the integrity of the program, Kudler Fine Foods should also ensure that the agreement is respected by both customer and the organization. The customer should respect the agreement by giving the correct information and the organization should rest the agreement by adhering to whatever prizes are stated in the agreement. In addition to the integrity of the program, legal teams would need to be on stand-by for issues such as customers injuring themselves in the store or on store property in any kind of way. This is a concern because with increase traffic and attention that the store will be bringing in, more accidents can happen. Kathy has a sister-in-law named Anne Shousha whom she uses as her legal advisor on all issues brought to her attention. This minimizes her legal costs because she is only charged a minimal fee. The legal teams are only used if Anne advises her to do so.

Ethical Concerns

Second, displaying a strong business ethics and moral ethics could separate one business from another, profit-wise and customer-wise. Having ethics means that there is a strong belief in doing things the right way and holding ourselves accountable for what we do and how we treat other people. In developing the Frequent Shopper Program, the organization must ensure that they follow the rules, be honest, and uphold any and all statements in the agreement. "Consumers are willing to pay more for ethically-produced

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