Around 1994, competition in the credit card market was based on the price (for example, interest rates and annual fees). After Chase and American Express launched a loyalty point program in 1993, HSBC was forced to follow in 1994. The original program was aimed at high-income consumers as a luxury brand purchase. Competition and consumers reacted quickly learned to expect the items in the program as a standard feature. Again, HSBC differentiate their products credit cards, adding a wide range of subjects of redemption, and the reduction of maturity. Problems arose in 1997-1998, the program has become a source of complaints because of operational difficulties in the implementation and the lack of competitive advantage in the market. In 1999, credit card HBSC was rated poorly, mainly due to problems with the system point bonus. Studies have been used to understand consumers and revive the program. Significant changes were made to the features improved performance and enhanced choice of redemption items. By 2002, the program has been rated as one of the best in the industry. The problem is, "Where is HSBC's next?" "Hide
by Robert J. Fisher Source: Richard Ivey School of Business Foundation 22 pages. Publication Date: September 17, 2008. Prod. # 908A17-PDF-ENG
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