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Questions for Secondary Research Costco
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Question 1 by Daniyar
What loyalty system do they currently use? 

Contribution by Yerlan: __**Types of membership:**__
 * Executive** (All Executive Members enjoy a 2% Reward (up to $750 per year) on most Costco purchases, as well as additional benefits and greater discounts on our suite of services. );
 * Business** (Business Membership, available for business owners and managers, allows the purchase of products for business, personal and resale use. Business members may also add up to six additional card holders to their account for an additional $55 each, includes household membership. );
 * Gold star** (Gold Star Membership is available for individuals who want to purchase products mainly for personal use. ).

MEMBERSHIP CARDS AND FEES

 * Membership fee is for one twelve (12)-month period from the date of enrollment of the primary cardholder.
 * Your card is valid at any Costco warehouse worldwide.
 * You will be requested to show your card when entering Costco warehouses and when checking out at the register.
 * Your membership card must have a card number and your photo to be valid. If your photo is not on your card, stop by the membership counter to have your photo taken and added to your card.
 * If your card is ever lost or stolen, your picture prevents unauthorized use.
 * Report lost or stolen cards to any Costco membership counter immediately, or call 1-800-774-2678.
 * Memberships may be terminated at Costco's discretion. Cards remain the property of Costco and must be returned upon request.
 * <span style="color: #333333; font-family: 'Trebuchet MS',sans-serif; font-size: 10.5pt;">Cards are not transferable.
 * <span style="color: #333333; font-family: 'Trebuchet MS',sans-serif; font-size: 10.5pt;">A free Household Card is available to a primary or add-on cardholder's spouse, domestic partner, or immediate family member over the age of 18 and living at the same address. Household Cardholders will be asked to present proof that they live at the same address as either the primary or add-on cardholder.
 * <span style="color: #333333; font-family: 'Trebuchet MS',sans-serif; font-size: 10.5pt;">Limit one Executive Membership per household or business.
 * <span style="color: #333333; font-family: 'Trebuchet MS',sans-serif; font-size: 10.5pt;">You may bring up to two guests in the warehouse each time you shop, though only Costco members may purchase items.

<span style="color: #000fff; font-family: Arial,Helvetica,sans-serif;">Question 2 by Daniyar
<span style="font-family: Arial,Helvetica,sans-serif;">What are the features of the scheme? <span style="font-family: Arial,Helvetica,sans-serif;">For example: Do customers gain points, vouchures for points, discounts etc? media type="youtube" key="1LHAGpLsrOE" width="560" height="315" align="center"

<span style="background-color: #f8f8f8; color: #424347; font-family: Arial,sans-serif; font-size: 17px;">“Claim your Free $500 Costco Voucher Now. Only a few left”

<span style="background-color: #f8f8f8; color: #424347; font-family: Arial,sans-serif; font-size: 17px;">Costco appears to be offering you a $500 gift voucher.

<span style="background-color: #f8f8f8; color: #424347; font-family: Arial,sans-serif; font-size: 17px; line-height: 0px; overflow: hidden;">

<span style="font-family: Arial,Helvetica,sans-serif;">What are the benefits for the customer?

<span style="font-family: Arial,Helvetica,sans-serif;">For example: what do they get out off the scheme and how does it make their shopping experience better?


 * 1) **Executive Membership card**
 * When the customer buys card, additionally he'll get the 2nd card for free. Which implies one for the customer, and the second for his spouse or a family member.

> monthly spending is really high, it can turn out for lovely perks.
 * This card also gives back 2% of his money that customer has spent at Costco. For example, let's say that member of Costco buys TV for 2000$, he will get 40$ back. If his

2. **The Gold Star Member card**


 * ==== If that card is too much, this Gold Star is 2 times less. ====
 * ====The savings are the same as in Executive Membership, but no 2% reward for bought products.====
 * ====It is for those who are less likely to buy a lot of product, but still wants a card.====



Executive Gold Star Membership (110$/year)

 * Cash Back at U.S. Restaurants with The TrueEarnings® Card: 2% Cash Back
 * Cash Back at U.S. Stand-alone Gas Stations, including at Costco with The TrueEarnings® Card: 3% Cash Back
 * Cash Back on Eligible Travel Purchases including Costco Travel with The TrueEarnings® Card: 2% Cash Back
 * Cash Back on Other Purchases, including at Costco with The TrueEarnings® Card: 1% Cash Back
 * Costco Services: Executive Members receive additional benefits and greater discounts on our suite of Costco Services including Costco Travel.
 * Membership Reward: Annual 2% Reward (up to $750) on qualified Costco purchases

**Gold Star Membership (55$/year)**

 * Cash Back at U.S. Restaurants with The TrueEarnings® Card: 2% Cash Back
 * Cash Back at U.S. Stand-alone Gas Stations, including at Costco with The TrueEarnings® Card: 3% Cash Back
 * Cash Back on Eligible Travel Purchases including Costco Travel with The TrueEarnings® Card: 2% Cash Back
 * Cash Back on Other Purchases, including at Costco with The TrueEarnings® Card: 1% Cash Back
 * Costco Services: Most Costco Services, including Costco Travel

Question 4 by Alen
How does the system work? For example: include diagrams and bulleted text on how the loyalty card system works in the company you are studying. <span style="background-color: #ffffff; color: #333333; display: block; font-family: Arial,Tahoma,Helvetica,FreeSans,sans-serif; font-size: 14.8500003814697px;">About the cards:

<span style="background-color: #ffffff; color: #333333; display: block; font-family: Arial,Tahoma,Helvetica,FreeSans,sans-serif; font-size: 14.8500003814697px;">1. The first that they have is the Executive Membership. It costs $110.00 to buy for a year membership but it has its perks. You get 2 cards, one for you and another for a spouse or family member, which is always an added bonus. It saves you from having to go out and buy another. It also gives you back 2% of all of the money that you spend at Costco. Let’s say that you spent $2000 on a new TV from Costco. You would get $40 back from that. If you shop at Costco a few times a month, the savings could really add up over time. The initial price you pay is high, but in the long run it will pay itself off in the end. <span style="background-color: #ffffff; color: #333333; display: block; font-family: Arial,Tahoma,Helvetica,FreeSans,sans-serif; font-size: 14.8500003814697px;"> <span style="background-color: #ffffff; color: #333333; display: block; font-family: Arial,Tahoma,Helvetica,FreeSans,sans-serif; font-size: 14.8500003814697px;">Think that is too much? Well they have another one:

<span style="background-color: #ffffff; color: #333333; display: block; font-family: Arial,Tahoma,Helvetica,FreeSans,sans-serif; font-size: 14.8500003814697px;">2. The Gold Star Member Card is available for purchase and costs $55.00 to buy. It is valid worldwide and also gets you into the store. You share the same savings on products as the Executive Membership, unfortunately though you don’t get the 2% back on all purchases. If you are less likely to spend a lot of money at Costco but still want the card, then this is the one for you!

<span style="color: #000fff; font-family: Arial,Helvetica,sans-serif;">Question 4 Additional Contribution by Kenzhe
<span style="color: #000fff; font-family: Arial,Helvetica,sans-serif;">media type="youtube" key="pVAlb5F2NC4" width="560" height="315" Costco Loyalty Ipad Kiosk (ArmorActive). Retrieved 30 January 2015 from https://www.youtube.com/watch?v=pVAlb5F2NC4

Question 5
What are the drawbacks/issues with the system? You should include the current problems that the company face with this system e.g. losing market share with another company?

Question 6 by Alen
Include any illustrations/pictures of the loyalty card/system For example: what information is stored on the card?



There is a name of owner, his photo and membership number on a card. In general terms, personal information means any information about an identifiable individual. For example, this includes your name, postal and email address, telephone number, credit card number, the photograph included on your Costco membership card, demographic information and purchasing history. A special category of personal information is “personal health information” Personal health information means any information relating to your physical or mental health collected or generated in the course of our providing you with the health services you request, such as optical, pharmacy and hearing aid services, and prescription profiles for fulfillment of pharmacy orders. Examples of personal health information may include your medical history, drug prescription information, eyeglass prescription information, or health insurance information, which we may require in order to provide you with pharmacy, hearing aid, optical and other health-related services. It may also include information you provide to Costco health services personnel when receiving counselling or advice, or when contacting Costco with a comment, question or complaint about our health services.

=Additional Contribution by Nurym:=

media type="youtube" key="MNijgL3HKiM" width="560" height="315"

Question 7
This is section 4 from CUSTOMER PRIVACY POLICY - JANUARY 1, 2015, which describes how COSTCO WHOLESALE CANADA LTD. collects personal information about their customers

4. WHEN WE COLLECT PERSONAL INFORMATION.
We only collect such personal information as is strictly necessary for the purposes outlined in Section 5. We collect personal information when you: Please note that the Costco Services may be provided by third party suppliers. We collect from such third party suppliers a list of our customers who have signed up for Costco Services and information about the use our customers make of such Costco Services (for example, frequency of use and customer feedback). We may also take video footage on our properties to protect the rights, property or safety of Costco, its customers, employees, or the public.
 * apply for membership (including information about your credit history that may be collected, used, or disclosed if you choose to pay by cheque);
 * apply for a Costco co-branded credit card;
 * renew your membership;
 * contact us with questions, inquiries, comments, complaints or requests;
 * sign up for certain products and services (such as rebates, the Costco Services program and other business and consumer services, collectively the “Costco Services”);
 * use our Sites;
 * participate in any of our programs;
 * place orders, make purchases, return or exchange items, or seek further information about our products and services;
 * place orders or make purchases, return or exchange items, or seek further information through our affiliated companies, including Costco Wholesale Corporation (Costco and its affiliates are referred to collectively as the “Costco Affiliates”);
 * enter into a contest or sweepstakes or respond to one of our surveys; and
 * ask us to place you on a “Do Not Email” list so that we can ensure that your wishes are respected.

In the further section of customer privacy policy, we can find out how company uses personal data:

5. HOW WE USE PERSONAL INFORMATION.
As part of our business operations, we hold and use certain personal information pertaining to you in order to process your requests, provide you with Costco Services, and to understand your needs so that we can serve you better. Specifically, we may use personal information for the following purposes:
 * Notifying you of recalls or safety issues;
 * Approving you as a member when you apply for membership;
 * Managing the provision of goods, services and privileges to you, including monitoring your membership, processing exchanges or returns, to conduct a credit check if you choose to pay by cheque, to determine your credit status and for fraud detection and identification purposes;
 * Managing invoicing, accounting and information security services related to our transactions with you;
 * Monitoring your satisfaction with our programs, including the Executive Membership Program, the services offered by our suppliers of Costco Services and contacting you regarding the status of such programs and services (for example, to inform you of changes to or the termination of particular Costco Services);
 * Protecting against harm to the rights, property or safety of Costco, its customers, employees, or the public;
 * Internal management purposes, including planning, resource allocation, policy development, quality improvement, monitoring, audit, evaluation and reporting
 * Managing our “Do Not Email” lists

Customer privacy policy (2015), COSTCO WHOLESALE CANADA LTD. Retreived from http://www.costco.ca/privacy-policy.html __Toma__

Question 8
There are many benefits that customer can have when company collects his personal information. As it was described in the section above, company uses collected data to notify clients if needed and to check whether client is satisfied with company's services or not. This can provide easier way for customers to be aware of different sales and promotions that can help to save some money. Collected information also helps to manage stock levels, so that customers will have permanent access to the products they always need.

__Toma__

Question 9 by Alen
What analysis does the company conduct on the data it collects and for what purposes? We use personal information and personal health information:
 * to facilitate and monitor certain features of the Sites that you choose to interact with, such as online forums, feeds and chatrooms;
 * to respond to your questions and concerns and to understand your needs and preferences;
 * to conduct surveys and other research;
 * to provide you with customized Site content and advertising;
 * to fulfill your online orders for products and services and to facilitate product deliveries, pickups and returns;
 * to detect, prevent, or otherwise address fraud, security or technical issues; or
 * to protect against harm to the rights, property or safety of Costco, its users or the public as required or permitted by law.

Question 10 by Alen
What policies does Costco have to save private information of customers

Question 11 by Yerlan
In what ways customer can protect his/her private information from being shared to third parties?

Question 12 by Daniyar
What is the benefit of giving gift cards, vouchers and loyalty cards for customers?

<span style="font-family: Arial,Helvetica,sans-serif;">This section is further explanation with images and perhaps videos that further define the concept. Label images/videos Figure 1, Figure 2, etc with a title and place the APA citation at the bottom of the page.

Put your contribution above with the appropriate question number
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Resources

 * use APA style for all content (i.e. text, diagrams, charts, images and videos)
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