Brand Equity

Case Studies

Prof. Dr. Bernd Skiera Goethe-University skiera@skiera.de

04.10.2012

Case Study: "Pilgrim Bank (A): Customer Profitability" (HBS: 9-602-104)

• Work either alone or together with one other student and submit a presentation for the case "Pilgrim Bank (A)". Please do not use more slides than you would use in a 15 minute presentation (about 15 slides).

1. How does Pilgrim Bank make money from their customers? How much variation in profitability is observed across customers and how could Pilgrim best deal with this variability? 2. Based on the 1999 sample of customers, what can Green conclude about the average profitability of Pilgrim Bank customers? 3. Is the difference in average profitability between online and offline customers in the sample indicative of a meaningful difference in profitability across these groups in the entire population of Pilgrim Bank’s customers? 4. What is the role of customer demographics in comparing online and offline profitability? 5. Can cause and effect be established between online usage and customer profitability? 6. Would Pilgrim Bank make more money if they had fewer customers?

04.10.2012

1

Case Study: "Information-Based Credit Card Design" (1/2)

Work either alone or together with one other student . • Grading of this assignment will be linked to the profits of your decisions. You need to make sure that your solution is submitted before the start of the class. • You will have to describe your strategy in class. • The exercise is the following: There are 750,000 people in the database; 250,000 in each of three groups (150, 200, and 250). You are invited to send AT MOST one solicitation to each of these people. • Each solicitation will offer one and only one of the 12 available products, but you may send different solicitations (products) to different people. • You may send your solicitations in two separate mailings (the first one will be called a test and the second will be called a roll out). Or...