Credit Card Companies

Credit Card Companies - the customer wanted the purchase to...

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Case Study Questions 1. Credit card companies are using customer profiling based on purchases to gain a competitive edge. Information Systems support this strategy by logging sales into a massive data repository allowing credit card companies to gain detailed information about the customers. 2. It helps credit card companies to target customers for future promotions and to flag customers with poor payment history or those who go over their credit limits. This helps to protect them from high risk customers. 3. It is unethical to profile customers based on the products or services that customer’s purchase. It is not an invasion of privacy because the customer is using a credit card to make a purchase. If
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Unformatted text preview: the customer wanted the purchase to be private they would use cash. Law enforcement cannot profile by law so credit card companies should not be able to do so either. You should not be able to penalize customers just because they shop at a certain store to save money. MIS In Action 1. I do not have a credit card. I have an ATM card only. Credit card companies cannot learn anything from me because I have no credit card history. 2. This information does not benefit the credit card companies because I have no spending history with a credit card. No other companies would be interested because there is no information. Credit card companies may target me to try to get me to open a credit card account....
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