Page 59 - DMGT506_CONSUMER_BEHAVIOUR

Consumer Behaviour

Notes

Case Study Brand Personality and Emerging Categories

rand personality has to be considered along with product personality in an
environment where several categories may just be emerging. Many of them have
Blow penetration and usage levels. Marketers need to be sensitive about how they
create associations for such categories.

When we consider the category of credit and debit cards, several aspects of contemporary
and traditional culture have to be taken into account. In the last decade, the lifestyle of
youth and urban consumers has undergone a tremendous change. Shopping malls,
splurging on consumer durables and personal care and expenditure on health care are just
some of the examples. Consumers use credit cards for a variety of purposes. Credit cards
encourage conspicuous consumption while, at the other end, debit cards are more an
alternative to cash-linked savings accounts.

The challenge for credit card and debit card financial services brands is to sell the concept
to millions of consumers who are prospective consumers.
Several brands of credit cards have used a variety of approaches to broaden the customer
base. Promoting the cards among existing consumers, flashy and lifestyle-oriented
advertisements, using databases and telemarketing efforts, personal selling, providing
free cards, providing cards for family members and targeting students, co-branded cards
and so on are some of the approaches. The credit card product personality is a lot more
aspirational.
However, the challenge for debit cards is about moving current branch banking customers
to lower cost or self-service channels such as ATMs.
Several banks have marketed debit cards along with savings accounts. The debit card
product personality is a lot more rational - savings linked to the balance the consumers
have in their account, and such.
The following are some of the important factors associated with the marketing of credit
and debit cards:

1. Have the consumers understood the concept of credit cards and debit cards and the
key differences between them?
2. Should there be differentiated marketing communications approach for both these
card products? (This aspect may have been addressed to some extent by various
brands but have the various segments clearly understood how the product attributes
benefit the respective segment?)
3. Should positioning and promotional efforts be different for credit and debit cards?
Different banks, private, PSU and foreign banks, apart from providing free or chargeable
debit cards to account holders (in the respective banks), also offer several sales promotional
methods that include foreign trips to enhance card usage.

The dormancy of debit and credit cards is another challenge for marketers. From the
consumer's viewpoint, perceived risk and a savings mindset that inhibits the usage of
credit cards and the comfort level of using money in establishments are barriers to the
diffusion of debit cards.
Contd...

54 LOVELY PROFESSIONAL UNIVERSITY