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WalletHub featured Lubin Professor Larry Chiagouris in "2021 Capital One Savor Review"
WalletHub featured Lubin Professor Larry Chiagouris in "2021 Capital One Savor Review"
Larry Chiagouris
Ph.D., Professor of Marketing, Lubin School of Business, Pace University
Why do you think bonus credit card rewards for dining and entertainment are becoming increasingly popular?
Because this is still a relatively new initiative from the credit card industry sector. Innovations always bring an increase in consumer interest and trial.
Do you think people generally assume the best (a broad definition) or the worst (strict limitations) when faced with vague rewards categories such as “dining” and “entertainment”?
It depends on the individual. Some are optimists. Some are pessimists. But generally, when there is any ambiguity or vague rewards, most consumers that the rewards are not worth their effort. Remember that there is quite a lot of inertia in the adoption of a new service or credit card.
How should people choose between two versions of a credit card offer, when one has better rewards but charges an annual fee?
It is all based on their expected level of usage. Heavy users will experience overall savings even with an annual fee. Light users are better off choosing a no-fee or low-fee option.
