Sidestepping Interchange Fees With Loyalty Custom Essay

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After reading the information in the Background please read and think about the CASE questions: Case Background: Please read the following article: Ferguson, Rick (2006) Using private label credit cards as a loyalty tool. The Journal of Consumer Marketing. Santa Barbara. 23(7). p. 374. Available in Ebrary on August 10, 2007. Click on to access the article. Case for you to write up: Pathmark Sidestepping Interchange Fees With Loyalty/Payment Combo Card Written by Evan Schuman October 17, 2007 http://storefrontbacktalk.com/story/101707pathmark Directions: (1) Read this case. (2) Review the above article and at least 1 more article from the background section or quality source on the Internet (not wikipedia). Hint: Do an Internet search on “credit and customer loyalty” and/or “credit and CRM.” (3) Choose a retail chain where you have shopped and/or worked. Imagine that you are a VP of Customer Engagement for that store. (4) The CEO has asked you to prepare a memo for the Board of Directors. You are asked to comment on whether the Pathmark strategy ? debit/loyalty cards ? would be appropriate for your store. Your discussion (750-1000 words, excluding title page) should cover these topics. You are encouraged to use sub-headings related to each question. (a) Would this type of card be appropriate for your target market? Why or why not? (b) How can the program be modified to fit your particular retail chain and its target market? Why would your target market be especially responsive? For example, Victoria?s Secret offers its credit card holders a free gift every month with an extra on their birthdays. Their target market is women with discretionary income and a sense of fun, so gifts are appealing to them. Macy’s has sales with an extra 10% off to credit card holders. They have a much broader market than Victoria?s Secret. (Do not use these examples in your own report. Create your own example.) (c) What kind of backlash can you anticipate from this program? What concerns customers (e.g., privacy loss)? Why? Prepare the memo as directed by the end of the module. Checklist for Grading ==> Demonstrate understanding of CRM ==> Directions followed for the assignment (absolutely critical!) ==>Take a strong position (not “we could have some of each”) ==>Logical support for all our points ==>Evidence of use of required references and background materials (necessary for a grade of “B” or higher) ==>Use of APA formatting Guidelines here. ==>Length of 600-800 words (pages not as important as words) ==>Few quotes and absolutely no copying or close paraphrasing from any source without appropriate citation ==>No definitions and no summaries from the text ==>No general statements with “all,” “none,” “must,” “should,” “mandatory,” and similar terms here is the back ground materiel : Module Two Anonymous. 2008. Rewards Programs Pay for Customer Loyalty, But Fail to Engage, According to Allegiance, Inc. Business Wire. New York: Feb 28. http://www.reuters.com/article/pressRelease/idUS151215+28- Feb-2008+BW20080228

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