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While there are monetary costs associated with the use of credit cards such as the interests for balances and other associated fees, the nonfinancial costs still clearly rise into existence. First, there is the risk associated with students giving away their personal information to companies who could use it for several purposes and could easily give it to others for a cost (United States General Accounting Office [US GAO] 2001).

In exchange for promotional items, students easily give their contact and other personal information and this increases the risk for them as the address, phone number, and others are easily identified and disclosed to other groups or individuals aside from those whom they have given it to.

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This also affects the family finances wherein “students from wealthier families are often bailed out by their parents [and those] whose parents can’t afford to help have to work more hours at their jobs” (Bijlefld & Zoumbaris 2000: 3). This means either a decrease in the number of subjects taken that result to longer years spent in school or, worse, students who can not afford to pay have to stop schooling and work full-time to get their selves out of debt (Bijlefelt & Zoumbaris 2000).

Inevitably, there is already an impact with regard to the academic achievements and success of the students that also hamper the knowledge pool of the nation wherein there is less and less students receiving a diploma and affects the quality of the labor force.

There are several issues which are the dominant discussion subjects within the last several years. Those issues are: the fear of credit cards due to concerns regarding marketing credit cards to students, the lack of necessary information for marketers, weak credit regulations and lack of customer centric credit designs.

Internal issue

– Recruitment (selection issues) Hire qualified staff with banking experience

– Training (customer relationship)

External issue

-Competitive market

-New banks opening

-Restricted bank policy

Culture

UAE environment as Muslim country which has mixed Islamic culture and other cultures

Marketing Issues

– Marketing Plan

– SWOT Analysis

– Market design

            There are several suggested strategies for credit card companies in selling their products as following:

  • Focus on Student Credit Cards. From the marketing perspective, marketing to high school students are perceived as unethical. High school students and college students generally get trapped into debt due to unethical marketing practices.
  • The Global Teenager! Teenagers are market segments that love to shop. Therefore, they pose as the most attractive markets for credit cards companies if they can add attractive features such as fixed installment plans for paying their debts.
  • Developing new products in the Banking Industry – To invent them the natural way is to add more features. New products include fix payment
  • Consumer economics of downsizing – Get less; pay more – value to a satisfied customer. Under such strategies, credit cards companies can have value added for their credit card holders such as free airport lounges etc.

From the strategic perspective, it is identified that marketer’s lack necessary information that supposes to guide them in targeting customers. Thus, marketers are aiming at customers mostly by measuring their likelihood to accept the credit card offer and measurements regarding whether or not those customers are the best customers for the bank.

In addition to the consideration of credit cards marketing issues, credit marketers have also stated that today’s credit products are not customer centric in nature. In the sense that they are more in tune to the financial opportunities that exist within the market for the bank rather than in tune with the needs of would be customers (Jurgens 2007).

The origin of the problem is actually the core problem of our banking environment (problem which also led to the subprime credit crisis), which is marketing credits to people that are actually unqualified to receive them. This problem led into another problem which now makes marketing credit cards more difficult. People become afraid of credit cards and their high interest rates (Parziale 2006; Silver Greenberg 2007).

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