Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: INTRODUCTORY OFFER SEGMENT / DISCOUNT A NEW PRODUCT TO NEW CUSTOMERS
CHOICE 3 COMPONENT: OFFER A TRADE-IN ALLOWANCE
| No. | SIC | Year | Notes |
| 1 | 6141 | 1997 | Revenues are under pressure from increased competition. Issuers have been resorting to massive discounting in net interest margins, primarily through introductory ("teaser") rates that in some cases are now as low as 0 percent. Meanwhile, annual fees have fallen by roughly 60 percent since 1991 to less than $4.30 per account. Issuers have tried to compensate with such hidden charges as higher penalties for late payments and reduced grace periods before which interest starts accruing, these have gone only part of the way. |
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