Question

Why do customers have privacy concerns about frequent shopper programs that supermarkets offer, and what can supermarkets do to minimize these concerns?

Answer 1

When customers use the card at the supermarket, the firm can associate the transaction information with the descriptive information to identify customers and develop various strategies, including promotions targeted specifically to those customers. These data and analysis help retailers make a wide range of strategic decisions, including store location and merchandising. Specifically, their privacy concerns may come from the perception that they have little control over their personal information. Besides, they may not know and not be able to control how retailers use such information and whether the retailer would share this information with other parties? Moreover, customers may be vary about who would safeguard the customers' interest if the information is used by parties that the customer does not even know or with whom the customer does even care for relationship.