Costco company, a major player in the wholesale club industry, has developed a new class of membership, which offers discounts on services - auto, health and home insurance, business credit card processing, real estate services - in exchange for a higher annual fee ($ 100 from $ 40). The case presents two questions: 1) How should the new composition of the market, to whom, and how much should be spent on the effort? and 2) what are the potential risks and benefits for Costco, which generated $ 22 billion in 1997 sales in real terms, in the provision of services? What question is emphasized depends on the business conducted in the marketing and retail of course. "Hide
by David E. Bell, Ann Leamon Source: Harvard Business School 21 pages. Publication Date: September 14, 1998. Prod. #: 599041-PDF-ENG
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