You just recently joined American Express in their credit card business. More specifically you have assumed the responsibility for the Spanish market. One of the responsibilities is to decide how many versions of a credit card to offer and at what price. Everything is on hold until you decide what to do.

To help you with your decision, you obtained estimates of the market potential for the different versions under consideration and the respective cost of launching the product in the market and deliver the necessary service.

Find below the corresponding segments and their willingness to pay for each of the versions of the credit cards

Segment	Segment size	Standard	Gold
Individuals	200,000	€20	€40
Corporate	100,000	€30	€70

Assume further that the Standard American Express has a marketing expense of €50,000 and a variable cost of €5, and that the Gold American Express has a marketing expense of €150,000 and a variable cost of €15.

If you would have to launch only one product, which one would you launch? At what price?

Answer rating: 100% (QA)

ANS WER I would launch the Standard American Express card at a price ... View the full answer