Question

MasterCard managers are motivated to increase (1) the number of individuals who have and use a MasterCard credit card, (2) the number of banks and other clents who issue MasterCards to customers and/or employees, and (3) the number of locations that accept MasterCard payments. Discuss how MasterCard could use its data warehouse to help it expand each of these customer bases.

Answer 1

MasterCard could use the data warehousing strategy by making its cards acceptable for any transaction in any place.

Data warehouse plays an important role in the competitive market for MasterCard. As the data has been turned into Business Intelligence (BI), which enables individuals, banks and companies to make strong decisions with regard to payment through electronic means.

The data warehousing could be used by MasterCard to gain a distinct advantage over its competitors. As previously Visa represents around 50% of charges for products sold overall while MasterCard was only at 25%.

An example of using Data warehousing is such that banks can issue MasterCard which if used on Aircraft or Restaurants then these banks can use this data to arrange offers and other benefits to motivate cardholders to spend more with their MasterCard. They could even offer limited time openings such as to pay for room or buy exclusive items during shopping.