Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: INTRODUCTORY OFFER SEGMENT
CHOICE 3 COMPONENT: SET A PRICE CAP
| No. | SIC | Year | Notes |
| 1 | 6141 | 2003 | J.P. Morgan Chase and Morgan Stanley are both offering some customers 0% rates for life on balance transfers. Other companies are offering long-term low-rates. They hope that this will prevent customers from switching from low-rate introductory offers after the rate has been increased. These cards are ideal for diligent customers as late fees are very high and can cause the rate to jump from 0% to up to 19%. Many of the cards also require two new transactions per month and charge interest on these new balances. Payments go towards the original balance, causing interest to accrue on these charges. |
| 2 | 6211 | 1991 | Fidelity Spartan currently charges fees equal to .35% of assets and has promised not to top .45% through 1995. It began charging .05% in the spring of 1989. |
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