1. What value does the Chase Sapphire Reserve card deliver to customers?

 According to the article and head of the Ultimate Rewards department, Lorraine
Hansen, their values depend on their customers, they want to provide their
consumers with the superior choice and value while also managing the economics
of the program itself.
 As a whole the company’s mission statement, according to their website, is to
basically give all of the customers a chance to move up the economic ladder.
 I believe that the promotions provided with Chase Sapphire Reserve card is
definitely what caught the customers eye.
 Applying for this card is obviously a no brainer.
 The more you spend the more points you get, the more points you get the more
“free money” you receive as well, money you can use and redeem on flights
and/or gift cards.
 I feel as if the company can end up losing a lot of money overtime, yes this is
bringing in customers, but these customers are only spending $450 every year to
renew when they can literally earn so many points, worth up to thousands of
dollars in rewards that is more than half of what they pay the company.
 One change I’ll do would be to increase the annual renewal fee in hope to
maximize profit.

2. How is the Chase Sapphire Reserve card differentiated from competitors?

 Exclusive marketing efforts

 Affluent Customers
 High amount of retained credit card members
 100,000-points sing on bonus (Increased sign on bonus points)
 Travel and dining benefits
 Customer satisfaction
 Transparency with customer base
 Increasing customer lifetime value through how the customer wants to use the
credit card

3. What value does the Chase Sapphire Reserve card deliver to the company?

 Overall, I feel as if the card and its benefits are amazing!

 Although with all of this positive feedback from the public, I believe that this is
not as such of a good product for JPMorgan Chase because although the company
did really good with getting consumers attention to sign up for this card, the
 promotions attached to it at first cost the company more money than they were
actually receiving with the 100,000-point system.

 On the other hand, for the Sapphire brand, I think this product pretty much just
too it to another level, again the impact and attention received from this product
really gave the company a very positive
platform.

4. Was the 100,000-point offer a good acquisition investment for Chase? Why or why
not?

Arguments for Good Investment Argument for Bad Investment

Attracts more customers
Customers enjoy the benefits that come
along with the card, giving the card and
the company more recognition
Competitive advantage
Positive media feedback
Losing money by giving our easy points
Cannibalize the other two cards,
Sapphire and Sapphire reserve.
Not making up for lost money as fast as
they should.
More money is invested than what they
are receiving back.

5. How successful will Chase be at retaining Chase Sapphire Reserve customers into
their second year? Why? What would you suggest they do to improve their odds of
retaining their customers?

 I feel as if they will be very successful for their “Travel Lovers” customers
because of all of the extra benefits they are provided with the Reserve card but for
their customers who don’t really care much or have time to travel so often they
might switch over as the $450 renewal fee seems a little too high compare to
others.
 One suggestion, I’ll say is maybe lowering their renewal fee. It’s a bit absurd how
it jumps from a $95 annual fee to a $450 annual fee for small changes in benefits
besides the travel
luxuries.

6. Over time, the Sapphire brand has evolved from a single product (Sapphire launched
in 2009) to a three-item product line as shown in case Exhibit 5. Going forward, how
would you manage the Chase Sapphire product portfolio?
 I feel as if the Chase Sapphire Brand and products should only provide two types
of cards, so that consumers can really tell the difference among both and see what
better suits their needs.
 Sapphire and Sapphire Preferred should be combined into just 1 as their benefits
are extremely similar showing no differentiation among either that can later on
cause cannibalization among those two.
 For example, both provide the same exact benefits for airfare, dinning,
entertainment and everyday spending, $0 in travel credits and no additional perks,
while one charges $0 annual fee and the other charges $95 which eventually can
cause consumers to not even take the Sapphire Preferred into consideration as it
doesn't really provide them with any extra benefits.