Kudler Fine Foods Case Study
Kudler foods has presented a program to increase their revenue by tracking purchase behavior of individual customers and providing incentives to those customers that continue to come back. They are calling these customers “loyal” or “preferred” customers (Sales, 2014).
I wanted to discuss some of the legal, ethical, and information security aspects of such a program. As well as give some input to the structure of the organization to include a stronger information security team. The legal issues that management should be aware of in something like a loyalty, or preferred customer program are things like customer confidentiality. In order to determine who is a preferred customer and who Kudler Foods isn’t will house personal information on customers in a data base outside of actual building...
Costs for housing such information should include things like servers, encrypting data …show more content…
Management should be aware of financial loss, bad word of mouth, and possible probation periods if any leaks of customer information should take place. I believe management should consider a policy similar to that of the European Commission’s Directive on Data Protection. In this policy customers must give their consent for their personal information to be taken and used. This not only means that the customers we do have are actually “loyal”, but that this provides much more protection in the case of some kind of leak of personal info (Loudon, 2010). Next I would like to address the ethical issues with having a preferred customer program. Management should understand that defining what customers get into such programs and which do not may have unintended consequences. Ethically it would seem to create a system where each customer is still rewarded some kind of incentive, just ones may receive
I wanted to discuss some of the legal, ethical, and information security aspects of such a program. As well as give some input to the structure of the organization to include a stronger information security team. The legal issues that management should be aware of in something like a loyalty, or preferred customer program are things like customer confidentiality. In order to determine who is a preferred customer and who Kudler Foods isn’t will house personal information on customers in a data base outside of actual building...
Costs for housing such information should include things like servers, encrypting data …show more content…
Management should be aware of financial loss, bad word of mouth, and possible probation periods if any leaks of customer information should take place. I believe management should consider a policy similar to that of the European Commission’s Directive on Data Protection. In this policy customers must give their consent for their personal information to be taken and used. This not only means that the customers we do have are actually “loyal”, but that this provides much more protection in the case of some kind of leak of personal info (Loudon, 2010). Next I would like to address the ethical issues with having a preferred customer program. Management should understand that defining what customers get into such programs and which do not may have unintended consequences. Ethically it would seem to create a system where each customer is still rewarded some kind of incentive, just ones may receive