American Express manages a wide variety of products but their cards can be classified in two main card types if cards: personal and business cards. For each card type they offer a wide range of different utilities and privilege and can be sub divided in credit and charge cards. The difference between the credit and the charge cards available in each category is that the credit cards charge the card holder at the end of the month while the charge cards charge the card holder instantly.
The American express business model is aimed at a very narrow premium customer base, which frequently make large transactions. As their customer base is narrow they are able to provide a higher customer service than their competitors (pp). The AmEx brand also holds a huge cultural value. Because of the brands positioning and corporate branding being the owner of an AmEx automatically improves this persons role as opinion leader for the personal social group. Personal Cards
The range of personal AMEX cards is designed for personal use. The holder pays an annual fee depending on their card and in return they get the corresponding American Express services. Generally such services include no preset spending limits and luxury rewards for collecting points. Other cobranded American Express cards such as the British Airways American Express card also offer additional travel related advantages such as travel insurance or priority on waiting lists. (American express.com Target market
In comparison to some of its competitors such as Visa and Mastercard, American express does charge for its services. This naturally shifts it away from these competitors and into a segment of its own. The target market of the personal AMEX cards are high earning individuals, because they are high earners they are likely to be individuals professionally hold roles of responsibility. Their personality is extravagant, extroverted and exploring yet sophisticated lifestyle. Small Business Cards
The small business card range is designed by American Express to help small businesses manage their finances and reduce stress of running a business. The card holder is expected to pay a monthly fee and in return get the American Express services of no preset spending limit, the card can be extended to other business employees, access to airport lounges and a generous membership reward program. Target Market
As the card types name suggests American Express targets small businesses segment with this range of cards. But they don’t target the whole of the small business segment. The card is designed for those businesses that regularly need to make payments for business purposes. The co-branded American Express and British Airways card suggests that they are targeting businesses whose employees are frequently traveling and would like to centrally control their company expenses. Missing segments,
The existing range of AMEX cards target the high profile person and business that need to make large and regular payments. Though the product range can also be use online it’s mainly intended to be used offline with the physical card. Many of today’s payment transactions are made via the world wide web of which services such as Pay Pal and Citadel EFT. These 3rd party services are sometimes considered to be unreliable and no provide the exclusivity that American Express provides. This can withhold AMEX users from using their AMEX card online. An exclusive online payment service for AMEX users to provide payment services can increase the company’s online presence and stimulate the cards use.
2. How has American Express been able to help consumers shift their attitude toward usage of the card? Is...