Collection of Consumer Information: Loyalty Cards

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Collection of Consumer Information Loyalty Cards

• Drew Fleming

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Privacy Basics

• What is Privacy?
• Definition The quality of being secluded from
  the presence or view of others.
• Why is privacy important?
• Gives us the power to remain anonymous.
• It helps us to keep our autonomy.

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How is our Privacy Threatened

• Data Collection.
• Businesses collect data and use it for marketing
  and or they sell it to third party
  establishments.
• Data collected by business varies.
• Companies retrieve this information via several
  devices such as credit cards or loyalty cards,
  among other things.
• Hackers.
• Sometimes hackers are able to hack into databases
  and retrieve information.

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Introduction to Loyalty Cards

• What are they?
• They are a marketing tool used to retain
  customers by establishing a customer loyalty.
• They typically offer a savings on some items when
  the card is used.
• How they work.
• A customer will apply for a card and receive the
  card.
• Their information is stored on a database at the
  corporate center.
• Whenever the card is scanned, not only are the
  savings applied but data is sent to and from the
  register as well.

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Introduction to Loyalty Cards

• What are they used for?
• Grocery stores use the information to use target
  marketing toward certain users, among other
  things.
• This is done by storing what the customers
  actually buy.
• Once the information is analyzed, certain coupons
  will be printed for each user, as well as using
  the information to send certain types of mailings
  to the user.
• Are they dangerous to privacy?
• Yes and no. The data is protected and kept
  private but there is always a risk of loss of
  data in addition to unethical uses of the data.

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Thesis

• I propose that although the cards serve a useful
  purpose to the grocers, they risk the privacy of
  the customers, and thus the current model should
  not be used. Alternatively, a card can be issued
  without the use of personal data that serves the
  same purpose.

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Cons of Frequent Shopper Cards

• Ethical Issues.
• Data collected can inadvertently exclude those
  that arent as wealthy.
• Data may be bought and sold which may result in
  undesired uses of said data.
• Takes business away from local grocers.
• Savings is sometimes superficial.
• Privacy Issues.
• Data collected is not guaranteed to be safe.

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Local Impact

• Roanoke Natural Foods Co-op.
• Talked with Manager, Bruce Phlegar.
• He believed that Kroger in General (and
  vicariously the cards) do not affect his
  business.
• Although the crowd they cater to would never go
  for a card.
• In fact, he also believed that most all customers
  of the co-op were hybrid shoppers, that is they
  shop multiple places for their groceries.

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Why Makes them worth keeping?

• Savings.
• Card does offer legitimate savings.
• Cart full of random grocerys saves about 50.
• Specials.
• Card compiles useful points on savings on
  prescriptions and gasoline.
• Data is Secure.
• Personal data is not available to anyone except a
  few people at corporate.
• Even law enforcement must subpoena to get data.
• Business is not taken from local grocers.

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Conclusions

• Cards arent an evil thing.
• They provide savings (may be legitimate or
  illegitimate).
• Available to all that want them.
• Data does not need to be collected in that
  manner.
• Shopping mean method a new and interesting
  approach to customer cards.

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Additional Work For my paper

• Interview Kroger Headquarters.
• Read research papers on consumer shopping habits.
• Find another local grocer in the Roanoke Valley.
• Try and see if the BBB has any useful information
  on the subject.

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Bibliography

• Albrecht, Katherine, and John Vanderlippe.
  Supermarket Loyalty Programs Rewards for the
  Wealthy. 3 Apr. 2007 lthttp//www.nocards.org/essay
  s/discrimination.shtmlgt.
• Albrecht, Katherine. "Consumers Against
  Supermarket Privacy Invasion and Numbering."
  Nocards. 2004. 3 Apr. 2007 lthttp//www.nocards.org
  /gt.
• Gordon, Zelda. "Loyality -- the Big Lie of Club
  Cards. Albuquerque Amador. 3 Apr. 2007
  lthttp//www.amadorbooks.com/nocardsm.htmgt.
• Gordon, Zelda. The Club Card Double-Pricing Scam.
  Albuquerque Amador. 3 Apr. 2007
  lthttp//www.amadorbooks.com/nocardsh.htmgt.
• Phlegar, Bruce. Personal interview. 31 Mar. 2007.
• Shepherd, Chris. Personal interview. 31 Mar.
  2007.
• Spraker, Brian. Personal interview. 31 Mar. 2007.
  
• "The Kroger Co." Kroger. 30 June 2004. 3 Apr.
  2007 lthttp//www.kroger.com/privacy.htmgt.