Electronic commerce or e-commerce means conducting business online. Generally accepted that e-commerce is a class of electronic business. The e-commerce refers to the transaction of business, and more narrowly the sales and purchase of goods and services using computers. Electronic commerce is usually via the Internet, even though e-commerce may be conducted over private networks or intranets. Electronic commerce can fall into a number of classifications. Two of the main categories are business to consumer (B2C) and business to business (B2B) (electronic commerce, 2009).
Kudler Fine Foods Company wants to implement the frequent shopper program to their website. The legal, ethical and security aspects are important subjects in the development of the frequent shopper program. Customers would feel more comfortable buying products at a company that cares about consumer’s security and necessities.
Companies that want to develop marketing programs like the frequent shopper program should ensure that the program incorporate an information practices guideline. The company should inform their customers who are interested in participating in the store’s frequent shopper program that information about their purchases will be collected and stored electronically in the company’s database (Consumer privacy program implementation guide, 2000). Customers should be informed that the data will be used to create promotion programs tailored around the products they purchased. The frequency of their store visits and the quantity of the purchases also should be used in promotions.
The company is responsible to inform the customer that the only data that will be shared with third parties for marketing related purposes will be non-personally information. The customers should be informed about:
• The terms of the program.
• What personally information is collected from them...