1. Analyze and explain the value proposition First USA offers to end users (card holders), retail partners (merchants) and marketing affiliates.
Value Proposition to End Users:
• First USA offered the most appropriate offer from its line of 2,200 products to new customers. This was achieved through their expertise in data mining.
• Based on the customer's spending patterns and other specific and unique traits, First USA would offer exciting packages catered to their existing customer. This was because First USA had a strong retention (portfolio marketing program) as opposed to other credit card issuers and wanted to become a trusted agent for the end user.
• First USA offered the customers rebates and coupons at participating retail partners (merchants.)
• Offered "instant credit" at time of purchase at participating stores like Dell.
Value Proposition to Retail Partners (Merchants):
• The first USA e-card offered end users a 5% rebate on purchases at a participating merchant and thereby increased merchant sales.
• First USA advertised the merchant in the First USA direct mail and statement insert programs thereby advertising to their large customer base.
• First USA offered co-branded cards which increased partner's brand exposure and enabled the merchant to build a long term relationship with the end user.
Value Proposition to Marketing Affiliates:
• First USA signed long term, expensive and exclusive contracts with marketing affiliates. This enabled the affiliate to focus on more constructive options as opposed to seeking out other partners who usually ...