Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at email@example.com , with comments or suggestions.
Tuesday, January 16, 2007
Featured Entry - Incentives for using an AmEx
I read an article from BusinessWeek called “AmEx’s Holiday Gift Fever” that discusses American Express’s simulated Black Friday. They created a website that allows customers to buy sought after and expensive items for cheaper prices than retail. This program, available only to certain American Express customers, will create incentive not only to buy more products, but also to get an AmEx credit card for the benefits it provides its elite customers. AmEx also hopes to build brand loyalty among its card holders. They want to do something that competitors cannot match so that card holders appreciate the company and its benefits. Brands such as Porsche and Sony participate in the website, giving them exposure and advertisement to all American Express customers. This provides incentive for companies to offer things up for sale on the site. This year is not the first time the wish list site has existed, however membership has been growing rapidly. In 2004, membership was 235,000 while in 2005 it grew to over 400,000. Clearly, the site is having the anticipated and desired response. It is a great idea, I think, because everyone benefits. The site helps consumers, producers, and its sponsor—American Express.