MARKET SEGMENTATION IN CERDIT CARDS

sunandaC

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The market segmentations in credit cards are as follows.
 The very rich would like to posses a credit card for its snob appeal along with the use that it facilitates.
 Corporate houses which are interested in the charge and corporate cards as these aid in the payment to the employees.
 The middle class who look for ease of purchase and possible source of credit in plastic cards.
 While evaluating the attractiveness of the markets, companies have found that all the three market segments are equally profitable. However, they are clustered preference centers and each has to be catered to in a different manner. For instance, the rich need to be wooed with exclusive cards that offers special privileges.
 To cater to specific segments, the companies so for have offered three of cards.

a. The premium card
b. The employer agreement card
c. The popular card.

Each card is targeted at the specific segment. For instance, the Stanchart Gold card provides special teledraft facility, free purchase assistance and special privileges at the select hotels, hospitals and the medical check ups. However to be eligible for the card the minimum gross annual salary of the person should be Rs 1,20,000.
The popular or the classic card on the other hand, has lower eligibility criteria, but offers fewer services, thus targeting the individual who prefers to use his/her credit card merely as a substitute.
 
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