Get more info on this report!Co-Brand and Affinity Credit Cards: The U.S. and Global Market...
In addition, this report features the results of Packaged Facts’ 2009 proprietaryconsumer survey, which explores co-brande...
The U.S. and Global Markets and Opportunities offers.Plus, you’ll benefit from extensive data, presented in easy-to-read a...
Simmons Experian Surveys     Packaged Facts Conducts Custom SurveyMarket Size and Trends     Consumers’ Payment Preference...
Non-Hispanic Whites and Asians Favor A/S Cards; Blacks and Hispanics Are     Underrepresented     A/S Card Owners More Fin...
Social Networking     Gen Y: the Sweet Spot for Social Network Co-branded Card Marketing     But Do Social Networkers Go O...
Card Issuers Winnow Their Portfolios, Cut Rewards, Homogenize RewardProgramsLasting Impact on U.S. Consumer Spending and C...
Table 2-6: Edgar Dunn Study on Consumers’ Preferred Credit Cards, 2000 vs.     2004 vs. 2006Chapter 3: Co-branding Around ...
Asia: A Patchwork Quilt     Olympics Serve as Springboard for Chinese Market     Hong Kong’s Bank of Communications Seeks ...
Table 4-5: Education Characteristics Favoring Ownership ofAffiliation/Sponsorship Cards, 2008 (index)Table 4-6: Education ...
Table 4-15: Demographic Characteristics Favoring Ownership of     Association/Organization Cards, 2008 (index)     Table 4...
Figure 5-1: Share of U.S. General Purpose Debit, Credit & Charge Card      Purchase Volume, 2008 (percentage)      Figure ...
Since the Spinoff      Going Forward: Global Reach      Performance: Stop and Start Growth      Table 5-4: Discover Financ...
Going (More) Global      Table 5-9: Visa Key Global Metrics 2008      Figure 5-7: Visa’s Regional Markets, 2008 (Share and...
A Great Selling Machine     Figure 6-2: BofA’s Multi-Channel Marketing, 2007     Table 6-4: Affinity Program Success Stori...
Table 6-11: GE Capital Consumer Delinquencies Q2 2008 versus Q1 & Q2 2009      From Pure Private Label to Co-branding Gian...
Figure 7-1: Forms of advertising ranked by changes in levels of trust from April2007 to April 2009With All Those Carefully...
Emerging Email Marketing Paradigm      Viral Email Marketing      Segments, Segments, Segments      Small Business—Lots of...
Co-branding a Mobile Phone?Social NetworkingTop Social Networking SitesTable 8-2: Top Social Networking SitesGen Y: the Sw...
Table 8-5: World Bank Estimates of U.S. GDP and Private Consumption 2007-       2011       Figure 8-3: Co-branded & Affini...
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Co-Brand and Affinity Credit Cards: The U.S. and Global Markets and Opportunities, 3rd Edition

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Co-Brand and Affinity Credit Cards: The U.S. and Global Markets and Opportunities, 3rd Edition

  1. 1.    Get more info on this report!Co-Brand and Affinity Credit Cards: The U.S. and Global Markets andOpportunities, 3rd EditionNovember 1, 2009The market for co-branded and affinity cards is over two decades old. Issuers haveworked to make payment cards more attractive to cardholders through value-addinginitiatives such as rebates and rewards. This has been a major growth driver in the co-branded and affinity card space over the past few years, but there is some evidencethat the pendulum has begun to swing in favor of proprietary bank reward programs.In the U.S., where the market for co-branded and affinity card is extraordinarily mature,experts interviewed by Packaged Facts estimate that between one quarter and one thirdof the plastic held by Americans are co-branded or affinity cards. And because co-branded and affinity credit, payment and debit cards have become such an integral partof the U.S. card industry, the growth of this market cannot be separated from the shift inconsumer payment preferences from paper to plastic and electronic vehicles, and fromthe huge expansion in U.S. consumer indebtedness. Other forms of mobile payments,such as contactless cards, mobile phones and contactless watches are gaining traction.As the U.S. market matures—and possibly plateaus—issuers are seeking new growthopportunities in Europe, Asia and other regions. However, there are wide variations inthe extent to which consumers, issuers and merchant partners in the various nationalmarkets have embraced co-branding.Scope of the ReportPackaged Facts’ 2009 report, Co-Brand and Affinity Credit Cards: The U.S. and GlobalMarkets and Opportunities, 3rd Edition, examines how the market and players havechanged over the past two years, and answers important questions including: • What new products are co-branding partners offering? • What new segments offer the most opportunity? • How are international markets evolving? • How are partners coping with the world’s grim economic realities? • What is the best advice experts have to offer?
  2. 2. In addition, this report features the results of Packaged Facts’ 2009 proprietaryconsumer survey, which explores co-branded and affinity card usage, front-of-wallet,most desired card features, channels and card information sources.Read an excerpt from this report below.MethodologyPackaged Facts’ study of co-branded and affinity cards is based on extensivesecondary research and interviews with industry and regional experts. Secondarysources include data-gathered from relevant trade, business, and government sources,including card industry journals, trade and general press (print and electronic), annualreports and 10(k) filings, company literature, consultancy publications, Packaged Factsreports, websites and white papers.Interviews were conducted with representatives of Discover, Visa, Visa Europe, CapitalOne, Kroll-Info Americas, Maritz Inc., Auriemma Consulting Group and other marketingand consulting firms operating in the co-branded and affinity card space.Packaged Facts’ analysis of consumer behavior and demographics derives from the ourCustom Online Survey of 2,606 adults, Experian Simmons Market Research Bureau’s(New York, NY) adult consumer surveys, which are based on approximately 25,000respondents age 18 or over.About the AuthorAn expert in primary research, Therese (Té) Revesz is the principal of ReveszInternational LLC. She has conducted thousands of in-depth interviews with business,political and labor experts around the world. She was featured in Super Searchers Go tothe Source as one of the U.S.s top primary researchers. Prior to founding ReveszInternational, Té headed the Healthcare and Industrial Practices of FIND/SVPsStrategic Consulting and Research Group and was its International PracticeCoordinator. She was also a Director of FINDs Signia Partners division. Before joiningFIND, Té served at Business International as Director of North American Publications,Editor-In-Chief of its global newsletter, and helped create BIs global risk assessmentproduct. She also worked at Prudential-Baches financial planning group and atCitibanks Washington Representative Office.What You’ll Get in this ReportCo-Brand and Affinity Credit Cards: The U.S. and Global Markets and Opportunities,3rd Edition makes important predictions and recommendations regarding the future ofthis market, and pinpoints ways current and prospective players can capitalize oncurrent trends and spearhead new ones. No other market research report provides boththe comprehensive analysis and extensive data that Co-Brand and Affinity Credit Cards:
  3. 3. The U.S. and Global Markets and Opportunities offers.Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts,tables and graphs.How You Will Benefit from this ReportIf your company is already doing business in the co-branded and affinity credit cardmarket, or is considering making the leap, you will find this report invaluable, as itprovides a comprehensive package of information and insight not offered in any othersingle source. You will gain a thorough understanding of the current market for co-branded and affinity credit cards, as well as projected markets and trends through 2012.This report will help: • Marketing Managers identify market opportunities and develop targeted promotion plans for co-branded and affinity credit cards. • Research and development professionals stay on top of competitor initiatives and explore demand for co-branded and affinity credit cards. • Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel consumers to use co-branded and affinity credit cards. • Business development executives understand the dynamics of the market and identify possible partnerships. • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.Table of ContentsChapter 1: Executive Summary Scope of the Report Overview Definitions: Co-branded versus Affinity Cards Players: Links in the Co-branded and Affinity Cards’ Value* Methodology and Sources Expert Interviews
  4. 4. Simmons Experian Surveys Packaged Facts Conducts Custom SurveyMarket Size and Trends Consumers’ Payment Preferences Credit and Debit Cards in Force Continue to Show a Saturated U.S. Market Forces Driving Consumer Card and Co-branded Card Usage U.S. Consumers Walloped Contracting U.S. Consumer Credit Card Issuers Winnow Their Portfolios, Cut Rewards, Homogenize Reward Programs Reward Programs a Major Co-branded Card Market Driver Figure 1-1: U.S. Rewards-Based Credit Cards versus General Purpose Credit Cards Without Rewards, 2003 vs. 2007 vs. 2011(F) Co-branded Cards in Force One in Five U.S. Cardholders has an A/S Credit Card Packaged Facts Custom Survey Finds More than Half of Consumers Own Co- branded or Affinity Cards Figure 1-2: Ownership of Partnership and Sponsor Cards, February 2009Co-branding Around the World International Payment Trends Table 1-1: Use of Payment Instruments by Non-banks: International Card Payment Trends, 2003 vs. 2007 Europe Co-branding Market: “Hugely Different from the U.S.” Latin America: Growing Middle Class Generates Issuer/Partner Interest Asia: A Patchwork QuiltConsumer Demographics & Psychographics Online Consumers Higher Users of Co-branded and Affinity Cards Figure 1-3: Generational Patterns for Ownership of Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (by percentage and index)
  5. 5. Non-Hispanic Whites and Asians Favor A/S Cards; Blacks and Hispanics Are Underrepresented A/S Card Owners More Financially Secure and Financially Savvy than the Average ConsumerThe Competitive Arena: Brand Networks Credit Card Industry is Undergoing Major Changes Payment Networks and Their Brands Ownership and Use of Co-branded and Affinity Cards Fewer Own Co-branded or Affinity Debit Cards Figure 1-4: Ownership of Network Branded Co-branded and Affinity Cards, 2009Marketing Dynamics Decision Drivers and Information Sources With All Those Carefully Crafted Benefits, What Really Matters to Co-branded and Affinity Card Users? Table 1-2: Features That Drive Acquisition of Co-branded and Affinity Cards versus Standard Cards Where Do Marketers Spend Their Money Branches are Bastion of Card Promotion—the Buzz Word is CRM Communicating with the Consumer via the Internet Email Marketing: Boosting Co-branded Card Use Small Business—Lots of Opportunity for Co-branders Gen Y: Internet Lovers Who Embrace Co-branded and Affinity Cards Boomers—Still Influential, But Saving More and Spending Less Ethnic MarketingGoing Forward Legal Challenges in the U.S. to the Credit Card Reform Act of 2009 Emerging Payment Products: A Structural Break Mobile Payments (mPayments): Are the Golden Days of Plastic Cards Over? Co-branding a Mobile Phone?
  6. 6. Social Networking Gen Y: the Sweet Spot for Social Network Co-branded Card Marketing But Do Social Networkers Go On to Visit Financial Sites? Co-branding and Social Networking The Co-branding Advantage That Issuers Crave Sizing the Future of Co-branding in the U.S.Chapter 2: Market Size and Trends Consumers’ Payment Preferences Table 2-1: U.S. Consumer Payment Preferences, In-store Payment Mix, 2003- 2008 Table 2-2: Consumer Payment Preferences, Internet Payment Vehicles, 2005 versus 2008 Credit and Debit Cards in Force Continue to Show a Saturated U.S. Market Table 2-3: U.S. Credit and Debit Cards, Transactions and Terminals, 2003-2008 Card Usage Growth Tops 12% CAGR Figure 2-1: U.S. Debit and Credit Card Transaction Volume, 2003-2007 Figure 2-2: U.S. Debit and Credit Card Transaction Value, 2003-2007 New Cards Increase and Dormant Cards Awake More U.S. Consumers Using Plastic for Small Payments Forces Driving Consumer Card and Co-branded Card Usage Global Financial Crisis U.S. Consumers Walloped Contracting U.S. Consumer Credit Figure 2-3: Outstanding Consumer Credit, 1990-Q1 2009 Table 2-4: Percentage Change in Outstanding Consumer Credit, 2006-July 2009 Bankruptcies and Credit Card Defaults and Delinquencies Rising Sharply Figure 2-4: U.S. Non-Business Bankruptcy Filings, 2000-2009(F) Figure 2-5: U.S. Credit Card Charge Offs and Delinquency Rates (All Banks), Q1 2000-Q1 2009
  7. 7. Card Issuers Winnow Their Portfolios, Cut Rewards, Homogenize RewardProgramsLasting Impact on U.S. Consumer Spending and Charging?Figure 2-6: U.S. Retail Sales Decline Sharply between Q1-2008 and Q1-2009Consumers Switching from Credit to Debit CardsReward Programs a Major Co-branded Card Market DriverFigure 2-7: U.S. Rewards-Based Credit Cards versus General Purpose CreditCards Without Rewards, 2003 vs. 2007 vs. 2011(F)Sizing the U.S. Co-Branded and Affinity Card MarketConsumer Ownership and Use of Co-branded and Affiliation CardsOne in Five U.S. Cardholders has an A/S Credit CardTable 2-5: Consumer Ownership and Use of A/S Credit Cards by Type, Summer2008Figure 2-8: Trends in A/S Credit Card Ownership and Use, 2004-2008Other SurveysPackaged Facts Custom Survey Finds More than Half of Consumers Own Co-branded or Affinity CardsFigure 2-9: Ownership of Partnership and Sponsor Cards, February 2009Co-branded Cards in ForceFigure 2-10: Co-branded and Affinity Credit Cards Issued in the U.S., 2003-2008Figure 2-11: Co-branded and Affinity Credit Card Transactions, 2003-2008Affinity Card Programs on a Plateau Since 2007In the Wallet, Yes. But Do Consumers Use Them?Figure 2-12: What Kinds of Co-branded and Affinity Cards are Used Regularly?Packaged Facts Survey: 29% of Consumers Keep a Co-branded or Affinity Cardin the Front of their WalletsFigure 2-13: Ownership and Use of Partnership and Sponsor Cards, February2009Proprietary Bank Rewards Programs versus Co-branded and Affinity Cards
  8. 8. Table 2-6: Edgar Dunn Study on Consumers’ Preferred Credit Cards, 2000 vs. 2004 vs. 2006Chapter 3: Co-branding Around the World International Payment Trends Table 3-1: Use of Payment Instruments by Non-banks: Check and E-Payment Trends, 2003 vs. 2007 Table 3-2: Use of Payment Instruments by Non-banks: International Card Payment Trends, 2003 vs. 2007 Table 3-3: Trends in the Use of Payment Instruments by Non-banks, 2003 vs 2007 The Global Economy, Doldrums for Some, Crisis for Others Table 3-4: World GDP and Private Consumption Growth, 2007-2011 Table 3-5: High Income Countries GDP and Private Consumption Growth, 2007- 2011 Table 3-6: Euro Zone GDP and Private Consumption Growth, 2007-2011 Table 3-7: East Asia/Pacific Region GDP and Private Consumption Growth, 2007-2011 Table 3-8: South Asia Region GDP and Private Consumption Growth, 2007-2011 Table 3-9: Middle East and North Africa GDP and Private Consumption Growth, 2007-2011 Table 3-10: Latin America and the Caribbean GDP and Private Consumption Growth, 2007-2011 Europe Co-branding Market: “Hugely Different from the U.S.” France: Visa and MasterCard Enter Co-branding in 2007 Europe’s Co-branding Central Spain: Separation of Credit Lines Turkey Takes a Multi-Partner Route Scattered Activity Elsewhere in Europe The Gulf: Co-branders Target “Distinguished” Customers Latin America: Growing Middle Class Generates Issuer/Partner Interest Mexico: Aggressive Growth Until the Crisis
  9. 9. Asia: A Patchwork Quilt Olympics Serve as Springboard for Chinese Market Hong Kong’s Bank of Communications Seeks Strategic Business Partnerships for Co-branding India: A Growth Magnet for Co-branders Multi-Function Smart Cards Drive Taiwan’s Market Going Their Own WayChapter 4: Consumer Demographics & Psychographics About the Experian Simmons Data Statistically Accurate Cross-Section of the U.S. Population Simmons Survey Data Presented for 12 Credit Card Categories Experian Simmons Surveys Cardholders Attitude on Finances Index System About the Packaged Online Consumer Survey Online Consumers Higher Users of Co-branded and Affinity Cards Figure 4-1: Generational Patterns for Ownership of Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (by percentage and index) A/S Credit Cardholders: First Wave Boomers Go for Travel Cards Table 4-1: Demographic Characteristics Favoring Ownership of Affiliation/Sponsorship Cards, by Type, 2008 (index) A/S Cardholders Tend to be Affluent Table 4-2: Household Income Levels Favoring Ownership of Affiliation/Sponsorship Cards, 2008 (index) Table 4-3: Household Income Levels Favoring Ownership and Use of Affiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (percent) MasterCard Has Highest Percentage of Truly Affluent Table 4-4: Key Household Income Levels for Affiliation/Sponsorship Cards by Brand, 2008 (percent and index) A/S Cardholders Are Well Educated, Managers, Techies, Professionals or Self- Employed
  10. 10. Table 4-5: Education Characteristics Favoring Ownership ofAffiliation/Sponsorship Cards, 2008 (index)Table 4-6: Education Characteristics Favoring Ownership and Use ofAffiliation/Sponsorship Cards vs. Co-branded/Affinity Cards, 2008/2009 (percent)Table 4-7: Employment Characteristics Favoring Ownership ofAffiliation/Sponsorship Cards Overall and by Type, 2008 (index)Northeastern and Pacific Homeowners Favor A/S Cards; the Southwest andSoutheast Are Areas of OpportunityTable 4-8: Regional and Homeownership Characteristics Favoring Ownership ofAffiliation/Sponsorship Cards Overall and by Type, 2008/2009 (index)Non-Hispanic Whites and Asians Favor A/S Cards; Blacks and Hispanics AreUnderrepresentedTable 4-9: Racial/Ethnic Characteristics Favoring Ownership ofAffiliation/Sponsorship Cards Overall and by Type, 2008 (index)A/S Card Owners More Financially Secure and Financially Savvy than theAverage ConsumerTable 4-10: Financial Attitudes of Affiliation/Sponsorship Cardholders, 2008(index)Travel versus Automobile versus Association Card OwnersTravel Card Users: Asian, Educated, White-Collar ProfessionalsTable 4-11: Demographic Characteristics Favoring Ownership of Airline/HotelCards, 2008 (index)Reach Them Through the Financial PressTable 4-12: Financial Attitudes of Affiliation/Sponsorship Cardholders Overall vs.Airline/Hotel Cardholders, 2008 (index)Automobile Card Users: Older, Less Affluent, More Likely to Have ChildrenTable 4-13: Demographic Characteristics Favoring Ownership of AutomotiveCards, 2008 (index)Table 4-14: Financial Attitudes of Affiliation/Sponsorship Cardholders Overall vs.Automotive Cardholders, 2008 (index)Association/Organization Card Users: Well Educated, Affluent Techies andProfessionals
  11. 11. Table 4-15: Demographic Characteristics Favoring Ownership of Association/Organization Cards, 2008 (index) Table 4-16: Financial Attitudes of Affiliation/Sponsorship Cardholders Overall vs. Association/Organization Cardholders, 2008 (index) Factors and Attitudes Differentiating Amex, Discover, MasterCard and Visa Cardholders A/S American Express Cardholders Factors Differentiating A/S American Express Cardholders Table 4-17: Demographic Characteristics Favoring Ownership of American Express Cards Overall vs. Affiliation/Sponsorship American Express Cards, 2008 (index) Don’t Leave Home Without It Table 4-18: Financial Attitudes of American Express Cardholders Overall vs. Affiliation/Sponsorship American Express Cardholders, 2008 (index and percent) A/S Discover Cardholders Table 4-19: Financial Attitudes of Discover Cardholders Overall vs. Affiliation/Sponsorship Discover Cardholders, 2008 (index and percent) A/S MasterCard Owners Table 4-20: Demographic Characteristics Favoring Ownership of MasterCards Overall vs. Affiliation/Sponsorship MasterCards, 2008 (index) Table 4-21: Financial Attitudes of MasterCard Holders Overall vs. Affiliation/Sponsorship MasterCard Holders, 2008 (index and percent) A/S Visa Cardholders Table 4-22: Demographic Characteristics Favoring Ownership of Visa Cards Overall vs. Affiliation/Sponsorship Visa Cards, 2008 (index) Table 4-23: Financial Attitudes of Visa Cardholders Overall vs. Visa Affiliation/Sponsorship Cardholders, 2008 (index and percent)Chapter 5: The Competitive Arena: Brand Networks Overview A Note on Metrics Credit Card Industry is Undergoing Major Changes Payment Networks and Their Brands
  12. 12. Figure 5-1: Share of U.S. General Purpose Debit, Credit & Charge Card Purchase Volume, 2008 (percentage) Figure 5-2: Share of U.S. General Purpose Credit & Charge Card Purchase Volume, 2008 (percentage) Figure 5-3: Share of Global General Purpose Debit, Credit & Charge Card Purchase Volume, 2008 (percentage) Figure 5-4: Share of Global General Purpose Credit & Charge Card Purchase Volume, 2008 (percentage) Ownership and Use of Co-branded and Affinity Cards Figure 5-5: Ownership of Network Branded Co-branded and Affinity Cards, 2009 Fewer Own Co-branded or Affinity Debit Cards At Least Half of Each Network’s Card Holders Keep a Co-branded or Affinity Card Front of Wallet Figure 5-6: Brand by Brand, Half of Co-branded and Affinity Cards Make It to the Front of the Wallet, 2009 Ownership and Usage of Co-branded and Affiliation Cards Brands Table 5-1: Consumer Ownership and Use of A/S Credit Cards by Payment Network Brand and Type, 2008American Express Overview Performance Table 5-2: American Express Financials, for 2006 through Q1 2009 Table 5-3: American Express: Key Global Metrics for 2006 through Q1 2009 “Spend-Centric” Co-branding Travel EntertainmentDiscover Financial Services Corporate Vision—Competitive Differentiator Overview History
  13. 13. Since the Spinoff Going Forward: Global Reach Performance: Stop and Start Growth Table 5-4: Discover Financials for 2006 through Q2 2009 Table 5-5: Discover: Key Metrics for 2006-2008 Co-branding: “It’s All About the Relationship” Building Co-branding Relationships Structuring to Manage Co-branded and Other Cards Managing Partner Relationships Value Beyond the Partner-Specific Reward Creating Reward Programs that are Specific but Generic Giving Consumers an “Edge” on Financial Literacy Alignment of OpportunityMasterCard Worldwide Overview History MasterCard Starts 2009 with a Business Unit Realignment Performance and Key Metrics Table 5-6: MasterCard Financials, for 2006 through Q1 2009 Table 5-7: MasterCard Key Global Metrics for 2006 through Q1 2009 MasterCard’s Co-Branding Differentiators Relationship Rewards ConstructVisa Inc. History Reorganization and Initial Public Offering Performance Table 5-8: Visa Financials, for 2006 through Q1 2009
  14. 14. Going (More) Global Table 5-9: Visa Key Global Metrics 2008 Figure 5-7: Visa’s Regional Markets, 2008 (Share and Growth) Visa’s Three-tiered Consumer Credit Platform Thousands of Visa Co-branding Programs Table 5-10: Visa’s Co-branded and Affinity Cards as of 2007 Visa’s Differentiators: Seamless Solutions “What’s Really New and Different” Brand Globally but Co-brand Locally Building a More Holistic Relationship with the Retailer In the U.S. Getting More Out of What They Have In Europe Getting the Partners on Your Side For the next 2-5 years?Chapter 6: The Competitive Arena: Banks and Non-Bank Issuers………… Figure 6-1: Market Share of U.S. General Purpose Credit Card Issuers Ranked by Purchase Volume, 2008 Top Co-branded and Affinity Card IssuersBank of America Overview Acquisition Spree Performance Table 6-1: Bank of America: Card Services Credit Card Performance “Incredibly Stiff Headwinds” Table 6-2: Global Card Services: Q2 2009 Results Table 6-3: Global Card Services: Key Statistics Beyond the Card: The Birth of Affinity Banking 39% of Q2-2009 Deposits from Affinity Relationships
  15. 15. A Great Selling Machine Figure 6-2: BofA’s Multi-Channel Marketing, 2007 Table 6-4: Affinity Program Success Stories Figure 6-3: BofA Leverages Its Channel Diversity to Balance Growth and Profitability, 2008JPMorgan Chase Chase Card Services Performance Table 6-5: Card Services Performance Numerous Affinity Organizations and Co-brand Partners Table 6-6: Chase Obligations Under Affinity and Co-brand Programs Co-branding is Serious Business at Chase Co-brand Outperforms Chase’s Proprietary Programs Figure 6-4: Chase Brand versus Co-brand/Affinity Performance Concentrating on the Biggest Partnerships Table 6-7: A Chase Affinity Card SamplerBarclays PLC Performance Table 6-8: BarclayCard Performance, 2006-2008 Table 6-9: Key Facts about Barclaycard, 2008 Focus on Co-branding Success in the U.S. U.S.-U.K. Cross FertilizationGE Consumer (né GE Money) Expands Co-branded Card Portfolio Performance: Shrinking Receivables—Rising Defaults Table 6-10: GE Capital Consumer (formerly GE Money) Financials, for 2006 through Q1 2009
  16. 16. Table 6-11: GE Capital Consumer Delinquencies Q2 2008 versus Q1 & Q2 2009 From Pure Private Label to Co-branding Giant Table 6-12: Dual Card Launches and Assets, 2003-2006 Table 6-13: Examples of GE’s Co-branded and Affinity Cards, 2009 GE’s Global Co-branding Reach But GE Doesn’t Love its Credit Card BusinessCapital One Performance Table 6-14: U.S. and International Card Performance, 2006-2009 As Other Issuers Pull Out of the Co-branding Arena, Capital One Sees Opportunity Card Lab - Personalizing Plastic Capital One Creates DIY Affinity Programs for Non Profits How it works USP for Smaller Non-Profits Table 6-15: Capital One Co-branded Credit CardsSmaller Financial Services Companies Enter the Co-branded and Affinity CardSpace Western Alliance Bankcorp Looks to Co-branded and Affinity Cards to Offset Real Estate Woes UMB: The First Do-it-YourselferChapter 7: Marketing Dynamics Decision Drivers and Information Sources Co-branded Card Candidates Resonate with Direct from Partners and Sponsors Table 7-1: Sources of Information Especially Important to Choosing Last Card for Co-branded or Affinity Card Owners versus Owners of Standard Cards Table 7-2: Sources of Information Especially Important to Choosing Last Card for Consumers Who Use Co-branded or Affinity Card Most Frequently versus Standard Cards Trust in Advertising: ’Round the World It’s Word of Mouth
  17. 17. Figure 7-1: Forms of advertising ranked by changes in levels of trust from April2007 to April 2009With All Those Carefully Crafted Benefits, What Really Matters to Co-brandedand Affinity Card Users?Table 7-3: Features That Drive Acquisition of Co-branded and Affinity Cardsversus Standard CardsRewards and Discounts More Important for Acquisition and Frequent Use to Co-branded and Affinity Card Owners than to GPCC OwnersTable 7-4: Features That Drive Acquisition and Use of Co-branded and AffinityCards versus Standard Cards for “Most Frequent” UsersTable 7-5: Considerations in the Acquisition and Use of Co-branded Retailer,Travel, Entertainment and Affinity CardsHanging on to the Old School TieTable 7-6: Students and Alumni Go for Organization and Affiliation Cards. . .And Which Ones Don’t? Rewards Program Cost Cutters Want to KnowWhere Do Marketers Spend Their MoneyDirect Mail Offers PlungingFigure 7-2: Direct Mail Credit Card Offers, Synovate versus Mintel, 2005-2007Shift to Fee-based and Co-branded CardsSpending on Measured Media Fell Off the Cliff in Q4-2008—It’s Still FallingFigure 7-3: Measured Media Spending, 2007, 2008 and Q1 2009Word of Mouth[watering] Marketing Spending Bucks the TrendPrint Media: Co-branded Card Holders Read the Financial PagesTable 7-7: Card Holder Attitudes: I Read the Financial Pages of My NewspaperTable 7-8: “I Find Ads for Financial Services Interesting”Branches are Bastion of Card Promotion—the Buzz Word is CRMFigure 7-4: Bank of America’s Card Sales Mix By Channel, 2004-2007Communicating with the Consumer via the InternetOnline AdvertisingEmail Marketing: Boosting Co-branded Card Use
  18. 18. Emerging Email Marketing Paradigm Viral Email Marketing Segments, Segments, Segments Small Business—Lots of Opportunity for Co-branders Gen Y: Internet Lovers Who Embrace Co-branded and Affinity Cards Boomers—Still Influential, But Saving More and Spending Less Ethnic Marketing Table 7-9: U.S. Population Projections: Share by Ethnic Group Table 7-10: Penetration of Co-branded and Affinity Cards by Ethnic Group Asians Embrace Co-branding African Americans: Worldview Considerations Hispanics Underserved - Try Mobile Outreach Multi-racial Opportunities Loom Figure 7-5: Growing Multi-Racial Population in the U.SChapter 8: Going Forward Legal Challenges in the U.S. to the Credit Card Reform Act of 2009 Table 8-1: Key Provision of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 Impact on Consumers and Issuers Impact on Co-branding Partners Chill Wind Blows on Overdraft Fees Are Interchange Fees Next? Co-branding Partners Square Off Against Banks and Brand Networks Across the Pond Emerging Payment Products: A Structural Break Contactless Cards Smart Cards Mobile Payments (mPayments): Are the Golden Days of Plastic Cards Over?
  19. 19. Co-branding a Mobile Phone?Social NetworkingTop Social Networking SitesTable 8-2: Top Social Networking SitesGen Y: the Sweet Spot for Social Network Co-branded Card MarketingFigure 8-1: Front-of-Wallet Use of Co-branded and Affinity Cards by Age CohortBut Do Social Networkers Go On to Visit Financial Sites?Table 8-3: Method of Gathering Information to Identify Choices for a PotentialPurchaseTweetterers Don’t Fly to Financial Services Sites EitherWomen Turn to Blogs for Info, Advice, RecommendationsCo-branding and Social NetworkingWhither Co-brandingThe Need for Alternate ChannelsLearning from Past MistakesU.S. Co-branding Programs: All Grown Up or Still Growing?Segments: Growing and EmergingHelping the “Bruised Consumer”Rewards Programs: Issuers Cut Back as Beleaguered Consumers IncreaseRelianceTable 8-4: U.K. Credit Card rewards in 2005, 2008 and 2009Are Experiential Rewards Relevant in a Downturn?The Tension Between Co-branded and Proprietary Bank Rewards ProgramsThe Co-branding Advantage That Issuers CraveTo Live Long and Prosper, Co-brand Partners Need to Be Actively Engaged inTheir ProgramsSizing the Future of Co-branding in the U.S.Figure 8-2: Rewards Cards vs. Standard Cards as a Percentage of Total CreditCards, 2007-2012
  20. 20. Table 8-5: World Bank Estimates of U.S. GDP and Private Consumption 2007- 2011 Figure 8-3: Co-branded & Affinity Card Forecast, Cards Outstanding (Total/Per Cardholder), 2007-2012 Figure 8-4: Co-branded & Affinity Card Forecast, Transaction Volume and Value, 2007-2012 Assessing the Game ChangersAvailable immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=1928141   US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004 

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