ISE EBook Online Access for Essentials of Marketing by Perreault William; Cannon Joseph; McCarthy E. Jerome

Author:Perreault, William; Cannon, Joseph; McCarthy, E. Jerome
Language: eng
Format: epub
Publisher: McGraw-Hill US Higher Ed ISE

Credit raises ethical concerns

There are also ethical concerns about credit card companies and retailers that make it too easy for consumers to buy things they really can’t afford. The problem becomes worse when an unpaid balance on a credit card carries a very high interest rate. This can significantly increase the price a consumer pays. Even worse, it leaves many low-income consumers trapped in debt.

Retailers face a challenge when a customer wants to buy something but doesn’t quite have all the money at that moment. Sometimes the customer may not have a credit card. When that happens, some retailers nudge customers toward a purchase with Afterpay. Afterpay splits a purchase into four equal installments—paid every two weeks. For some customers, that $100 dress looks a lot more affordable when it is made in four payments of $25 over the next two months. Credit approval is instant and (for better or worse) customers get instant gratification when they can buy instantly.

Source: Afterpay

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