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Competitive Strategy for Credit Card Companies

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What competitive strategy are the credit card companies pursuing?
How do information systems support that strategy?
What are the business benefits of analyzing customer purchase data and constructing behavioral profiles?
Are these practices by credit card companies ethical?
Are they an invasion of privacy? Why or Why not?

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Solution Summary

The expert examines competitive strategies for credit card companies pursuing.

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Credit Card companies are teaming up with stores and businesses that have loyalty programs as one competitive strategy. This allows them to have access to information about the buyers and the products they are purchasing as well as the frequency and amounts spent.

The information systems support the data mining of the customers to determine what they are purchasing and how often they make purchases. It also helps to determine they types of products and services the person is purchasing. The IT can also group the people in ...

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