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ACCA Strategic Professional · Strategic Business Leader · Cloud, mobile and smart technology

Marlow Retail launches a mobile app that lets customers order, pay and receive personalised offers based on their location. The board wants to use mobile business to strengthen competitive position. Which implication is most directly linked to the location-based feature?

Location-based offers give targeted marketing and differentiation opportunities, but location data is personal data. The company therefore faces privacy and consent risks and the board must put data protection governance in place, since collecting the data brings legal and reputational obligations.

  1. AIt removes the need for a data protection and consent policy because data is held on the customer's phone
  2. BIt converts the business model to a pure cost-leadership strategy
  3. CIt creates opportunities for targeted marketing but raises privacy and consent risks that governance must addressCorrect
  4. DIt eliminates the need for a website because mobile channels replace all others

Explanation

Location data allows real-time targeted offers, adding value and differentiation. It is also personal data, so consent, transparency and data protection compliance become governance issues. Holding data on the phone does not remove the company's obligations once it collects it.

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