Case Name :      Dexit–A Marketing Opportunity

Authors :           Robin Ritchie, Lalani Sohail, Sohail Lalani

Source :             Ivey Publishing

Case ID :            905A02

Discipline :        Marketing

Case Length :    17 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Dexit is a new electronic payment system that offers a convenient alternative to cash for small-value retail transactions. The chief executive officer is faced with some critical target market and marketing mix decisions as she prepares for launch. The situation is complicated by the fact that action is needed on two fronts: Dexit must not only recruit end consumers for the service, it also must convince merchants to install the payment terminals. Because paying with cash is free, the company needs to persuade both groups that the added convenience of Dexit justifies a transaction fee. Although the concept appears to have good potential, recent test market failures of two similar offerings suggest that success is far from guaranteed. Reinforces the importance of solid consumer analysis when selecting a target market, demonstrates the concept of value to the customer, and provides a basis for discussing push vs. pull marketing strategies.