Question

21 which of the following is a way that credit card companies encourage young college students to sign up for a credit card?

by offering a free gift just for signing up
by offering the opportunity to skip a payment
by offering no interest for the first few months
by offering the opportunity to consolidate debt

Explanation:

Analyze marketing tactics

Using the Credit Card Marketing knowledge point

• Credit card issuers frequently target college students on or near campuses.
• A classic incentive to attract young adults with limited financial experience is offering immediate, tangible rewards like a free t-shirt, water bottle, or food item just for filling out an application.

Evaluate the options

• Option 1: Offering a free gift directly targets college students' immediate desires and is a well-documented promotional strategy.
• Option 2: Skipping payments is not a standard introductory sign-up incentive.
• Option 3: Low or zero introductory interest rates are common but are generally marketed to broader audiences with established credit profiles rather than specifically to young college students.
• Option 4: Debt consolidation is aimed at individuals who already carry significant debt, not students opening their first cards.

Answer:

• (A) By offering a free gift just for signing up (Correct answer)
• (B) By offering the opportunity to skip a payment
• (C) By offering no interest for the first few months
• (D) By offering the opportunity to consolidate debt