ANALYSIS OF POWER DISCOUNT PROGRAM AS STRATEGY OF BANK X TO COMPETE IN INDONESIAN CREDIT CARD MARKET

• Main Author: WIJAYA (NIM: 29107013), ANDRI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/11816
• Institution: Institut Teknologi Bandung

In the last few years, credit card as one of the payment instruments has been widely accepted by Indonesian people. This fact is supported by the increasing numbers of credit card that being published every year. Financial profit that can be generated from this business has made many institutions interested to joining in, thus made competiton tighten than ever. The form of competition is to invite cardholder's candidate and to retain the existing cardholder. Therefore, every card issuer institution needs strategy to compete in this market.<p>Bank X is one of the five top card issuer instituions that have largest numbers of cardholder in Indonesia. Bank X uses a unique strategy but it is started being imitated by its competitors, which is Power Discount program. This program provides discount up till 50% or more, when its cardholder make transaction with participant merchant using Bank X credit card in certain period of time. In some cases, this program has certain rules and condition, such as minimum order requirement or valid to selected items only.<p>This thesis is conducted to examine whether Power Discount program or similar program is the effective strategy to compete in Indonesian market at this time. Therefore, the study of : external condition of Indonesian credit card market, internal condition of Bank X, mechanism of Power Discount program (rights and obligations of each party), benefits and risk from the program, and the influences of the program to the society, need to be done. Power Discount program can change perception and enthusiasm of society about Bank X credit card and Bank X itself, and behavioral change in shopping while using this program could also occur. This kind of program offers economic value and gives brand experiences. The economic value (discount) invite enthusiasm in society and when they join the program then they will have positive experience (purchase product/sercvice at discounted price) thus bonding them emotionally and create customer loyalty. Their loyality can be seen from their willingness to recommend this program to their relatives thus create word of mouth marketing in the society.