The Guest Loyalty Rewards information system aims to record transactions by members and track points awarded to customers. It stores member data such as name, contact details, transactions, points awarded and redemptions. Using QR codes on membership cards provides a convenient, efficient and reliable way to input transaction data compared to ledgers. Scanning the QR code inputs data which is then validated, processed by adding points, and stored. Additional security could involve requesting a PIN or photo verification when redeeming points. Reports showing points redemption patterns can help motel managers with planning by identifying popular locations. If a customer requests their data be removed, GLR must delete personal information while retaining transactional data for business purposes.

1. Exam Preparation Day
QUESTION 1 – INFORMATION SYSTEMS

2. Scenario
Guest Loyalty Rewards (GLR) offers discounts and other incentives, such as free meals and
drinks to regular customers. Guest Loyalty Rewards issues membership cards containing a
QR Code (Quick Response Barcode) to be scanned by businesses to add points and record
transactions.
Guest Loyalty Rewards is run by a computer based information system.
It is essential to read and understand the scenario – refer back to this with every answer

3. a.
◦ State the aim of the Guest Loyalty Rewards information system.
An aim is a general purpose or function
To record transactions by members.
To track points awarded to customers.

4. b.
◦ Suggest 4 pieces of data that would stored by Guest Loyalty Rewards Information System:
Member name, member contact, business name, transaction type/date, points awarded, use
by date, where earned
(among others)

5. c.
◦ Discuss the advantage of using a QR code by customers over more traditional methods of
customer identification.
Reliability, effectiveness, efficiency – discuss means you need to give a reason/explain or
example as well as the advantage
QR code card convenient for customer and business, with efficient fast transactions and a
reliable interface of data input is much more efficient then a general ledger.

6. d.(i)
◦ Outline the appropriate hardware that will allow the data from the QR code to be read.
Optical scanner (imaging device) with QR code recognition capability. The use of a camera
built into a device such as an iPad will be able to capture the QR code.

7. d.(ii)
◦ From your answer in part (i), discuss the flow of data as the information system processes
and adds points for a transaction.
QR code is scanned (INPUT), the matching membership is identified and validated by
comparing the ID of the QR code and the central members database (VALIDATE), if ID validated
(yes back) then details of transaction sent to GLR where points calculated (PROCESSING) and
stored (STORING), could also be communicated back and printed on receipt (OUTPUT).
Information systems involve gathering, inputting, validating, processing, storing, retrieving,
outputting, communicating, and disposing of data

8. e.
◦ Suggest an additional security precaution to prevent unauthorised use of the card when
redeeming discounts and incentives.
The system could request a PIN as well as display of card. Or email out a redeem QR code.
The card could also have a photo and personal details such as name and mobile number on
the card itself.
When a QR code is scanned for the use of points, your image could be displayed on the device
for vendors to confirm.
A way to authenticate the member

9. Guest Loyalty Rewards (GLR) computer based information system is attached to a motel-chain’s main
booking information system.
f.
◦ Suggest one output that may be generated by the two computer-based information system and
discuss how this output will assist motel managers in their planning.
Motel managers can run a report showing how often points are bring redeemed and where
they are collected. The managers can see if the cards are helping with repeat business or
encouraging people to use the system at all.

10. h.
◦ A customer has become disgruntled with the Guest Loyalty Rewards (GLR) business and
would like all their information removed. Discuss the implications for the customer and Guest
Loyalty Rewards (GLR) business.
Through the Privacy Act of 1988, customers have the right to privacy. The customer has the right
to demand all personal information not directly related to sales/billing be deleted as this is their
personal information. As GLR requires information to run their business, all information about
transactions and and points are retained by the business and can be linked back to a customer
number not identifying the individual.