A senior manager argues that the negative perception associated with mounting credit card debt will affect StarMart.Which of the following would be the MOST effective measure StarMart could take to address this potential problem?
A) offering to forgive all debt more than 90 days old
B) making it clear that StarMart is a different entity than Axiom-Star
C) pointing out the records and practices of the worst-behaved credit companies
D) extending the expiration date of StarMart reward points
E) extending credit only to those who are very likely to be able to pay their bills

Question

Quizplus · Accepted Answer

E)Getting into the credit business is a risky proposition when credit card companies are unpopular. Having fair policies is a good step toward dealing with the potential for negative feedback. Extending credit only to those who are capable of paying their bills, Choice E, is a good way to avoid making the problem of mounting debt even worse. Choice A would be an invitation to run up large bills and then ignore them. Choices B and C attempt to shift the blame elsewhere, but this would just make StarMart look less ethical. Choice D might make more people sign up for the card, but it wouldn't help address the issue of mounting credit card debt.

A Senior Manager Argues That the Negative Perception Associated with Mounting