Chase Sapphire Reverse Case questions:

Q.1 Identify the core issue:

Ans: The Chase Sapphire Reserve Card was launched in August 2016, and the card exceeded its 12-
month sales target in two weeks. The response was truly phenomenal and its biggest supporters were
millennials who welcomed it with open arms. As the company approached the one-year anniversary
of the Reserve launch, the core issue before them was- how would they retain the customers so that
they would remain with the brand and renew their cards for another year. The company leaders had
to decide on a product strategy which would make use of the momentum of the launch to drive value
for their customers

Q2. Which problem according to you is the most pressing?

Ans: The team had to think on how to reinforce the total value of the product and present more
opportunities for customers to engage with the brand. They had to strike a balance between the
rewards program. They had reduced the points to 50000 after the first year and wondered what
impact it would have on existing customers and new customer acquisition as well. Now they had to
ensure that the flood of new customers became profitable to the firm.

Q3. How is the company using conditioning?

The company is using both forms of conditioning: Classical and Operant. For classical it used
influencers to advertise its credit cards so that When the influencer(unconditioned stimulus) would
promote Chase(conditioned stimulus) it would provoke a positive response(conditioned response )

Also it used Operant conditioning that is a method of learning that occurs through rewards and
punishments for behaviour. The points and cashback were used as a positive reinforcement which
would entice the consumer to use the card more and more in order to get rewards ad collect points.
The card offered the consumers to earn 3 points per dollar spent on travel and dining, a 1.5% points-
to-dollar conversion rate toward travel on Ultimate Rewards redemptions, a $300 annual travel credit,
and access to the Chase Experiences platform.