Would you consider the purchase of a card like American Express card a low involvement or a high involvement decision? Give reason for your answer.Involvement refers to how much time, thought, energy and other resources people devote to the purchase process.The purchase of a card like American Express is a high involvement decision.
The first and foremost reason being the high costs associated with the card.Also, this card has promoted its image as a high prestige card having a snob appeal. The other most important factor that makes the customers spend much time in making the purchase decision is the fact that the card is used in everyday life. The degree of involvement is very subjective and varies from person to person and also from country to country.
2. How is the concept of social class relevant to marketing of American Express card?The concept of social class is extremely relevant to the marketing of the American Express Card. The strategy of the company has been to focus on the higher class. It has targeted the higher salaried class.
The distinction lies not in where is it used like at the expensive restaurants or at the small petrol pumps or who uses it. The distinction is the card itself and sets apart the user from the general public.The five factors have been carefully woven together to build its image over a period of time like higher price, higher quality, limited supply, higher qualifications and exclusive reference groups. All these factors make sure that the marketing of the card focuses on the higher class people.
3. How has American Express used the concept of social class in marketing its credit cards?AmEx has pursued a high quality image based on offering more and better services. Also, the card is accepted worldwide at almost 3 million establishments in 130 countries. It has become one of the best known brand names among the consumer businesses.The card has been priced higher than alternative bank cards.
The card has kept its merchant fees higher than other bank cards which ensure that low margin or struggling businesses can not afford the card.The advertising has reinforced the desire exclusive image of the card but also broadened it somewhat through successive campaigns. During the 1970s AmEx ran the “Do you Know Me?” campaign which presented famous-named people who were not recognizable but were accorded importance on using the American Express Card.The company has carefully refined and marketed new ideas by effectively discerning what its present and potential card members want. The further enhancements have been added to the card like automatic car insurance.
AmEx segments card owners by lifestyle and income and then, plans and provides services appropriately for each group such as extra travel insurance for senior citizens or a special magazine for the students. The company has directed its marketing efforts to cardholders only for the services relevant to them.
