Q&A+Loyalty+Cards+and+more

13. Describe how a smart card could be used for employees of La Vianda in terms of clocking in and out. What issues may arise from this use? What other ways could this card be used?  __Use of smart card to secure transaction:__ Not every customer pays by cash or cheque though. Many now opt to pay by a debit card such as Switch or Delta. In these cases the customer’s card is swiped through the card reader which reads the information (such as the account number and date of expiry) held on the magnetic strip on the back of the card. The latest in store development has been the arrival of smart card readers at the EPOS. A debit card with a smart chip is placed in the reader and the customer then enters their PIN to authorise the money being taken out of their account. This is much more secure than signing a docket as it cannot be forged. __Use of smart cards for loyalty program:__ Customers will collect digital coupons by inserting their cards into small readers on shelves, then present the cards to cashiers when they check out to receive discounts. Using smart card for loyalty program uses greater integrity of the data in terms of both accuracy and security, the greater resilience of the system, the flexibility, and last, but by no means least,
 * SMART CARDS, LOYALTY CARDS, BIOMETRICS and PRIVACY **
 * __14. __** **__Describe how a smart card could be used by the customers of La Vianda__**

**__15. __** **__Compare the advantages and disadvantages, of using smart cards in supermarkets.__** __Advantage:__ - Uses smart card for tracking products will prevent chances of shoplifting, and improve product and stock control for the supermarket. - Provide customer and staff with instant access to the updated information about the product. - Allow faster transaction compared to cards that uses magnetic strip. - It is much more secure as it is less likely to be become forged. - Smart card for loyalty program will allow the customer to gain discounts benefits, and the ability for the supermarket to gather data about the customer which could be used for market research. __Disadvantage__ - Use of smart card for the loyalty program will allow the supermarket to gather information about the customer. This brings up privacy concern for the customer. This information could be sold off to third party. - Smart card can be very expensive. Firstly, the smart card itself can be much more expensive than the traditional barcode system. Also, in order for the system to work networking and other system infrastructures needs to be built, these systems can be much more expensive.

They can get into contact with their customers through e-mailing them on the latest promotions or discounts. They could even post their weekly flyers to them on the items that are on sale for that particular week.
 * 16. ****Explain how Supermarkets can get in more contact with customers.**

They can advertise some of their products perhaps like the healthy products in health centers to attract customers or remind their old customers. They can put up their latest promotion they are offering on billboards. At the same time they could advertise their schemes they are offering to their customers like benefits they may get with a loyalty card.

Advantages to the supermarkets: ·  Supermarkets believe that customers with loyalty cards will shop at their stores more frequently and are less likely to try another supermarket. · Increase the amount customers spend as they are keen to get their loyalty points · Build up a profile of their typical customer e.g. age, gender, average spend etc.  ·  Track customer spending habits · Offer special promotions in partnership with other companies e.g hotel discounts · Reduce the likelyhood of fraud · Measure the results of special offer campaigns · Encourage customers to buy their more profitable items rather than their 'value' items. Advantages to the consumers: ·  Entire scheme is free for the customers in many cases ·  Customers can earn a discount by using a loyalty card when shopping and saving on money.
 * 17. Describe the advantages of Loyalty cards to the supermarkets and to the Consumer **

18. Describe how biometrics could be used by La Vianda customers.
 * They can use their fingers and eyes instead of credit cards when paying for their purchases.
 * Furthermore, they can use the biometrics for security e.g. for their warehouse.
 * Also they can use for the protection of their network. E.g. when accessing it.

19. Describe how biometrics can be used to reduce shoplifting.
 * Basically, they have better security then credit cards or other means of payment such as cash. Credit cards can be stolen and used. Cash can be fake. However, Biometrics are much more reliable because they cant be forged or stolen unless someone cuts of a finger!.

20. <span style="COLOR: black; FONT-FAMILY: 'Calibri','sans-serif'">To what extent is privacy an issue when customers handout about themselves information to supermarkets?
 * Possibility of the database being hacked and information being sold to third party companies.
 * Also shopping habits may be sold on to third-party - customers concerned as to where their personal and shopping details will end up.
 * The customer may end up entering the ‘world of junkmail’
 * If hackers get information such as a customers address, it might be very dangerous for the customer because they might get robbed, bombed or blackmailed.