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URN etd-0704106-175118 Statistics This thesis had been viewed 2664 times. Download 2130 times. Author Cheng-Chao Leo Author's Email Address firstname.lastname@example.org Department Management Business Administration Year 2005 Semester 2 Degree Master Type of Document Master's Thesis Language English Page Count 102 Title THE IMPACT OF DIFFERENT ACQUISITION CHANNELS AND PROMOTION STRATEGIES ON CREDIT CARD EFFECTIVENESS – A CASE STUDY OF A CARD ISSUING ORGANIZATION IN TAIWAN Keyword Promotion Strategies Acquisition Channels Credit Card Effectiveness Effectiveness Credit Card Acquisition Channels Promotion Strategies Abstract Due to the growing demand of the consumers market in Taiwan, as well as the continuing and strong investment by local industries into foreign markets, the business of the traditional banking industry has moved from corporate banking into consumers banking in recent years. This has resulted the rapid growth of the consumers banking market which expedited the fast expansion of the organization structure of the commercial banks in Taiwan. Consumers banking has thus replaced the corporate banking and become the major source of banks’ profitability. For most of the banking organizations, credit card business is considered highly important among their consumers businesses. The effectiveness of the credit cards issued directly impact the financial performance of the banks.
The rapid growth of Taiwan credit card market has created an extremely competitive environment which has urged all the players to take their stands as early as possible. The dilemma of how to rapidly increase market share to achieve economies of scale so as to reach break even point, while dealing with declining or diminishing profitability arose from the execution of expeditious new card acquisition strategy, is becoming an important subject for card issuers in Taiwan. From the execution perspective, identification of acquisition channels and promotion strategies that can bring in profitable card base helps credit card issuers to formulate their overall acquisition strategies.
The objective of this study is to investigate and analyze the effectiveness (namely, cancellation, spending and revolving behaviors) of the credit cards acquired by different acquisition channels and/or under separate promotion strategies, and to understand the degree of effectiveness and their value contribution to credit card issuers. In the meantime, based on the findings, this study attempts to identify effective mixture of channels and promotions to recommend better solutions to card issuers.
This study analyses the actual data of a well-known credit card issuer by means of two different angles: the variance of the spending and credit behaviors of the existing credit accounts that were acquired through different sales channels and promotion activities. The key directions analyzed are the cancellation behavior, average spending on card, utilization of the revolving credit.
The conclusions of this study are:
? Credit card issuers need to consider an integrated acquisition channel mix when they formulate their acquisition strategies.
? Planning of an effective acquisition channel mix should be corresponding to the short and long term objectives of the card issuer.
? Promotion strategy should pursue long term customer value in order to create long term benefit for credit card issuers.
Advisor Committee Nan-Hong Lin - advisor
James C. Chan - co-chair
Pi-Chuan Sun - co-chair
Files Date of Defense 2006-06-15 Date of Submission 2006-07-04