TCU Neeley Professor of Marketing offers insights into the benefits and challenges of credit cards with rewards.
September 25, 2021
By Erin Smutz
Robert Leone, the J. Vaughn and Evelyne H. Wilson Chair and professor of marketing, was featured on WalletHub for his insights into shopping with credit cards that offer rewards to customers.
Leone explains that credit cards with rewards on groceries and travel appeal differently to customers based on their income group.
“For someone who is in the lower tier income category, their focus would be much more on grocery savings unless travel included gas,” he said. “For those in the upper-income tiers, travel would be a bigger incentive.”
When it comes to co-branded store credit cards, Leone states that major grocery store chains face a challenge with customer loyalty.
“Stores can get a lot of data from their customers with a rewards card,” he said. “However, it is very hard to get in someone’s wallet as one of their few credit cards without some pretty big differentiation.”
Read the full article on the WalletHub website here.