Dexit is a new electronic payment system, which offers a convenient alternative to cash for small value retail operations. Chief executive officer is facing a critical target market and marketing mix decisions, as it prepares to launch. The situation is complicated by the fact that action is needed on two fronts: Dexit must not only set the end users for the service, it also has to convince merchants to install payment terminals. Because free cash payment, the company must convince both groups Dexit justifies the added convenience fee per transaction. While the concept seems to have good potential, the ultimate test of market failure of two similar proposals suggest that success is far from assured. Stresses the importance of a strong analysis of consumers when choosing a target market, demonstrates the concept of value to the customer, and provides a basis for discussing a push against the pull marketing strategies. "Hide
by Robin Ritchie, Lalani Sohail, Sohail Lalani Source: Richard Ivey School of Business Foundation 17 pages. Publication Date: April 4, 2005. Prod. # 905A02-PDF-ENG
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