Essay American Express Case Study

1285 Words Aug 8th, 2013 6 Pages
Brand equity is defined as the name, sign, term, symbol or design of what makes the goods or services different from those competitors and for seller groups. Although, the meaning indicates that it is the added value that has been brought with product or service; reflecting the consumers’ response: satisfaction, expectations, etc.

1) Evaluate American Express in terms of ‘brand equity’
What are the benefits, strengths and weaknesses associated with the company? American Express is an American financial-service, which has been known as the paramount of brands among high-end customers. They have continued to build its brand in a steady and consistent manner which is a strength that the service has. It is known to be one of the
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It has attempted to rebuild toward a more modern appeal to the young mind set. It wants to expand its services to students and teens. Of course it seems logical; as American express is already a family service is wants to “invade” and provide to everyone within the family. With the ability to do this, they are able to gain more loyal customers. For example, I am 20 I get my first American express card; the likelihood of me changing to another financial service would be 99%.

Strong brands are able to hypnotize customers by the power of their brand. Through gaining some sort of control over customers; it can be seen that branding is a sort of restriction of free competition. This is precisely the motivation of brands marketing their product or service: locking consumers in and competitors out.

3) Understanding new needs is the best of our sources. How has American Express leveraged on brand into customer segments and created value through different card and program offerings? The main benefit of American express is "Ownership experience". They have created happier and loyal customers by the "member since" date on their card. It seems that this is important to for the customers and is also a guide to let both parties know when is something is wrong. American express provides a multiple number of categories of cards; charge cards, credit cards and partner cards. Each
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