1. What other benefits does CVS provide to Extra care customers? Provide examples of both utilitarian and hedonic value.
• Additional special offers print on your store receipt frequently throughout the year. • Receive special savings exclusively at CVS/pharmacy when you sign up for email offers. • Turn everyday purchases into college savings with Upromise . • The more you use your Extra Care card, the more rewards you will receive. Upromise is a shop online or in store with an earning of 3% towards college saving when you purchase an item in CVS. • Create a college savings service that harnesses the purchasing power of parents, extended family, family, and students to make it easier to pay for college.
2. Suppose a major competitor launches its own customer value card program. How might CVS respond? What recommendations would you give CVS to improve the ExtraCare program?
If one CVS’S major competitors launch its own customer value card program then CVS would most likely respond by adding extra incentives to their existing ExtraCare program. CVS has done an excellent job of staying ahead of its competition’s attempts compete with their customer value program with ExtraCare. The major competitor of CVS is Walgreens. The Walgreen’s Prescription Value Card is the closest thing to CVS’s ExtraCare program but is only designed to offer savings for employees and hardly comparable to CVS’s program. Only CVS has a free rewards card with which customers can earn the equivalent of cash back to spend on their next trip. CVS ExtraCare is one of the largest rewards program promotions ever offered by a retailer. Cardholders receive 2% back on nearly every dollar spent in the store. When an ExtraCare cardholder makes a purchase at CVS pharmacy, he or she will receive a coupon for a free product. This instant reward coupon will appear on the receipt during each shopper's...
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