Challenges and opportunities for credit cards: strategies for low-income markets

Authors

  • Renata Giovinazzo Spers Fundação Instituto de Administração
  • James Terence Coulter Wright USP; FEA
  • Alexandre Cheruti USP; FEA
  • Bernardo Jacques Vieira Pinto USP; FEA
  • Glauber Fonseca USP; FEA
  • Marcelo de Moraes Lima USP; FEA

DOI:

https://doi.org/10.5700/issn.2177-8736.rege.2008.36651

Keywords:

Credit card, Low-income Market, Credit for bottom-of-the pyramid markets

Abstract

The low-income market in Brazil presents great opportunities for companies including the credit card sector. Bottom-of-the-pyramid customers look for quality which is, however, compatible with their budgets and needs. For this purpose an analysis was made of the critical aspects and opportunities in question. Literature disclosed eight factors that were analyzed in a qualitative survey and with in depth interviews. Variables relevant to business profitability in general were also presented. Results disclosed the possibility of competitive pricing advantages by offering simpler services and lower cost products. Brands offered to higher income brackets should be adapted with technologies for simplification and more attractive pricing. Partnerships should then be made with retail store networks to increase the use of credit cards.

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Published

2008-12-01

How to Cite

Spers, R. G., Wright, J. T. C., Cheruti, A., Pinto, B. J. V., Fonseca, G., & Lima, M. de M. (2008). Challenges and opportunities for credit cards: strategies for low-income markets . REGE Revista De Gestão, 15(4), 19-35. https://doi.org/10.5700/issn.2177-8736.rege.2008.36651

Issue

Section

Estratégia Empresarial