Citibank: Launching the Credit Card

Credit cards have become increasingly popular world-wide, making it easier to buy now and pay later but are they actually helping or hindering someone’s credit? “Maxed Out” by James D. Scurlock demonstrates how credit cards can hurt someone’s credit, while “Why Won’t Anyone give Me a Credit Card” by Kevin O’Donnell demonstrates how someone may have financial stability to pay off a credit card, but still be consistently denied one by the credit card companies. Owning credit cards is not the problem; the problem is being irresponsible with it.

The purpose of usury laws was to regulate the maximum interest rates of loans. This law was created to protect borrowers from excessively high interest rates. It insured that lenders could not put the borrower in a situation where they were not able to fully pay off their debt. However, as said on investopedia.com, “In the United States, individual states are responsible for setting their own usury laws.”

* Opportunities also exist in the Asia Pacific region for online sales. Company has to keep an eye on the future opportunities and possible consumers. The region could be their next step ahead to become a continental corporation.

The main area where Canada can maximize in expanding their market is with the Asian Countries.

operate and connect with Asian markets. We will work to make the region more open

There are various companies which try to reach and set up in the international market. Certain establishments find success while other prove unsuccessful. Some enterprises own the ability to open anywhere, nonetheless there holds circumstances in which need further discussions into their overall strategic plan. Also, lots of challenges and options generated through starting a new business abroad will present itself.

On Thursday, September 29, 2016, Costco switched their store credit cards from American Express to Visa. Approximately 11.2 million credit cards were transferred to visa cards. With the change in credit card carriers 1.1 million other customers applied for the credit card of which 730,000 new accounts had been activated. The switch between the two credit card bands didn’t go smoothly. The problems the incurred by the company are now behind them, and now Costco is benefiting by not paying as high of fees with Visa. By Friday, Costco’s share prices were up by four percent, and their quarterly earnings were higher than Wall Street predicted. Compared with last year, Costco is still down by five percent and is not doing as well as previous

In May 2009, President Obama stated, “The credit card act was intended to uphold basic standards of fairness, transparency, and accountability (Lindow).” Is this to say that credit card companies were deliberately deceiving consumers to capitalize on profits? Unfortunately, the answer is yes: profit was not the concern of this act, as the banks had abnormally high profit margins. What was in question, however, was the approach of generating these favorable profits for banks (Warren). The Credit Card act provides protection for young consumers with specific provisions such as: fix interest rates, 21 day grace period, the right to opt out of adverse changes in terms, a 21 year age requirement and clearer agreements for transparency.

In terms of interest shown in our product by other countries, I will suggest we research into sales opportunities in Japan for the reasons that Japan has a high population and number of lawyers compared to most of the other countries, geographically Japan also allows us to establish a hub in Asia so that we can establish a footprint in this region. However, deciding on a method of entry into this market will require gathering special information and understanding the Japan market. This research will need to be done prior to deciding a similar method of entry as was suggested for the U.K. market.

I think it has become a habit for us, Americans to spend more than what we have. We tend to rely on credit cards to purchase things ahead of time, even though our financial situation might not allow it. Take my sister for example, she just entered college this year and from what I saw, she already in debt just based on her shopping alone. Unlike other countries, the credit card system in America is too attractive and hard to pass up, especially for the average Americans. Benefits like sigh-up cash bonuses, cash back and retail purchase protection will continue to bring in consumers and that consumer debt will remain prevalent in our society.

4. What targeting strategy will you use to in the international markets? Your answer should also discuss this in relation to the current targeting strategy as defined in the Marketing Plan? You should also identify and discuss the cultural appropriateness of the targeting strategy in relation to the international market you have identified.

Chapters six and seven are about consumer credit, with a focus on credit cards. I am more hesitant to use credit cards than I am to use a debit card. I know that credit cards and other forms of consumer credit can be useful because it can give me cash immediately. However, can be easy to overuse credit and become indebted. If default occurs, it can lead to bankruptcy and financial ruin for a long period of time. If I will purchase credit, I will get a card with a low APR, but most importantly I will make sure that I pay all bills on time.

Three countries of different characteristics have been chosen as target markets. The choice of these countries has been based on their market characteristics but also on their geographical position. China has been one of the most powerful markets in the context of the international community. The particular country has attracted firms by almost all countries, as a result of the prospects that the Chinese market offers in terms of long term growth. Moreover, China is located near to Japan, a fact that would be taken

Citibank should launch the card product in Asia for several reasons. Firstly, Citibank can ride on the rapid economic development in the region via credit card products. Secondly, it is also an excellent way to overcome distribution limitations imposed on foreign banks in the region. Thirdly, it allows Citibank to expand its customer base from the upper income segment to include the rapidly growing middle-income households, which is consistent with its global growth strategy and mission in Asia Pacific. Fourthly, by introducing credit cards, Citibank will be able to cross-sell other product lines such as Auto Loans and Ready Credit

Commercial products of multinational companies are being marketed to people from different cultures owing to an increased growth in the world economy (Lin, 2012). Samli (1995) states that in most cases, consumer attitudes are largely driven by the framework of their culture. Mooji points out that global marketing strategies are not culture-free and should not be because its influence on consumer behavior is profound (1998, 2005) .In his article “The Globalization of Markets”, Levitt (1983) argued that customers can be persuaded by the same advertising appeals and values, irrespective of the culture they belong to.