Accounting Information Systems
a. I think Tesco is gathering its customers names, addresses, household size, ages of
children, dietary preferences, and income levels. As well as using the clubcard to
qualify for the discounts, Tesco computers recorded everything a customer
b. Tesco motivated 12 million customers by offering big spenders’ special
promotions while offering merchandise discounts to customers who sign up and
offers points for every pound spent when they use the card. These points can be
used to reduce the price of future purchases or exchanged for frequent flier miles.
c. Tesco can achieve customer loyalty, better decision making, customized coupons
and promotion, new product rollout and improved supplier relationships by
using the information from the Clubcard data it collects.
d. Some disadvantages of the Clubcard program includes but is not limited to
reduced check out speed which leads to longer lines due to individuals redeeming
points. It could also lead to cheapening of brand value which might cause
customers to think that they aren’t receiving quality product. Customers might
become worried about their privacy, they might feel uncomfortable in the
knowing that their habits are being tracked, believing they are being monitored.
Lastly profits would decrease while sales might increase. Profits would decrease
because loyalty card programs are expensive to maintain.
e. When looking at Tesco and Walmart, it is evident that Tesco is a threat to
Walmart. Tesco is a store based primarily out of the UK and is just beginning to