Question

In your mind is AMEX still a premium card? Perceptions of different levels, such as the standard green card, gold, or platinum cards? Why do we think card companies offer these different levels and are they still relevant in today's social and economic culture? Why do you think these companies are starting to issue metal cards for their premium members? One last thought, aside from Chase, what strides have other card offers could be a threat to AMEX? And does this matter to the younger generations?

Answer 1

In my view, all American Express cards do not qualify or meet the standard of a premium card. In fact, the standard and gold card can not be considered as a premium card, only the premium card can be considered as a premium card. A premium card with a host of exclusive features and attracts a heavy annual fee. A different class of cards is still relevant as being identified as an exclusive group of people has actually increased in today's social and economic culture. People are looking forward to owning the things which give them a distinct status and includes them in an exclusive class.

Metal cards are seen as a premium card and it becomes easy to identify the people who are using the metal cards, with added weight to the card, and easy to be identified as premium card, user members feel privileged to use such cards, that is why companies have started issuing metal cards for premium customers.

For the young generation, the cards should offer the benefit and privilege which will be used by the young generation and the cards which are making a stride towards offering the exclusive benefits to the young generation that matches with their lifestyle will be able to attract the young generation to become a member of premium cards. And such strategy being followed by other cards can be considered as a thret to the AMEX.