Reference no: EM132670076

The Tesco case was discussed in the Week 2 Interactive Tutorial. Companies like Tesco gather a massive amount of data through different loyalty card programs. Typically, the shoppers fill out an application form in the shop and receive a plastic card and a key fob* in the mail that is scanned before they make a purchase. In this way, the companies gather massive amounts of data about their customers' millions of purchases each week. From a company perspective, this is the sales data which plays an essential role in the accounting information system. Then, the data analysts of these companies analyze these sales data and turn it into useful information.

Required:

Problem a) How can this information be used to get a competitive advantage?

Problem b) What else can these companies accomplish from this collected data?

Problem c) What are the risks associated with these types of loyalty cards?