Kudler and E-Commerce
University of Phoenix
Kulder and E-Commerce
The dawn of the internet brought many changes to our world. We now use the internet in almost every aspect of our daily lives and itâ€™s only going to become more prevalent in the future. As soon as companies realized the potential for money making and increasing of their customer based, business on the internet exploded. According to the 1997 National Small Business United/Arthur Andersen survey of small- and mid-sized companies showed that small business with web pages nearly doubled from the years 1996 to 1997 (Applegate 1998). This is the direction that Kulder Fine Foods wishes to go.
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Building a website and running a frequent shopper program will require an investment on the part of Kulder. The good news about this is that once an internet site is up and running is doesnâ€™t take much money after that to operate it. The same can also be said for the frequent shopper program, even though gifts and items need to be bought for the promotion. The frequent shopper program is expected to increase revenue by just .25% in the first quarter and rises to 1.75% by the third quarter. The total increased revenue from the program is 4.75% in the first year alone (Kulder, 2006). This program will increase sales, customers and help the sales department determine which products to keep in the stores. This will also continue to build sales well after the first year and that should also be taken into consideration.
There are several legal concerns that come with starting a frequent shopper program. One of the first things that need to be done would be to have a disclaimer written. It would describe what the program does and excludes any liability. These contracts are often called terms of service agreements (book 3). There is also the choice to opt-out or opt-in that the company can give to the consumer. The opt-out choice allows consumer information to be given out or sold to other companies (book 3).
Business ethics plays a bigger role today then ever before. Collecting consumer data is a tricky game and if not handled proper can get a company into a lot of trouble. In 2002 there was as many as 80 privacy law before Congress (Pemberton, 2002). This means that the government is defiantly out to protect the consumer. Important questions should be asked who has access to this information. However I see little to question when it comes to ethics and a frequent shopper program. How a company uses information internally that it gathers from its consumers...