The rapid growth of Taiwan credit card market has created an extremely competitive environment which has urged all the players to take their stands as early as possible. The dilemma of how to rapidly increase market share to achieve economies of scale so as to reach break even point, while dealing with declining or diminishing profitability arose from the execution of expeditious new card acquisition strategy, is becoming an important subject for card issuers in Taiwan. From the execution perspective, identification of acquisition channels and promotion strategies that can bring in profitable card base helps credit card issuers to formulate their overall acquisition strategies. The objective of this study is to investigate and analyze the effectiveness (namely: cancellation, spending and revolving behaviors) of the credit cards acquired by different acquisition channels and/or under separate promotion strategies, and to understand the degree of effectiveness and their value contribution to credit card issuers.

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