1. What competitive strategy are the credit card companies pursuing? How do information systems support that strategy?

The credit card company need to find a way for customers to choose their own company credit card.

Credit card company will use each purchase is assigned a four-digit category code that describes the type of purchase that was made shopping can also be recorded in this category,the code for each type of store are to be separated to show the difference.

These codes allow credit card companies to learn a great deal about each of its customers at a glance overall,the credit card company use various methods to understand all of the card holder’s spending habits,and timely adjustment of the company to level of cooperation and alliances business help enhance the credit card companies more accurate quality of service.

2.What are the business benefits of analyzing custom er purchase data and constructing behavioral profiles?

Credit card companies use the customer database storing purchase information,analysis will be most beneficial to the company’s chosen strategy and customer.

Analysis of the information in the database can also be a possible inability to repay debt and to evaluate the purchasing power of different customers.

Credit card companies can use the important information for these customers to credit card application rejected or reduce customers can use the scope of the money.

3.Are these practices by credit card companies ethical? Are th ey an invasion of privacy? Why or why not?

We believe that the kind of behavior is more convenient but some immoral because the cardholder will have the feeling of privacy violation.

Yes, Everything the customers want to buy will be monitored, seem it also use to show the customer’s good or bad affect the willingness to lend money.