Dexit Company

Renah Persofsky, CEO of Dexit, Inc. (Dexit) has to make several critical decisions of the

company's new electronic payment system for retail transactions. First, she and her team would

have to decide which merchants and consumers the Dexit service would target. Second, she had

to determine whether any additions or changes needed to be made to the product itself. Third, she

had to decide on a pricing strategy and finally, she needs to come-up with a promotional plan to

reach target audience and decide between a regional launch or a national launch in several major

Canadian Cities. In essence, she has to come-up with a concrete marketing plan for Dexit.

2.0 RELEVANT FACTS AND ISSUES

The following relevant facts are obtained form the case study.

* Dexit's service would allow customers to pay for goods and services by waiving an

electronic tag near specialized reader. This fact is relevant because it decreases the

transaction time to less than three seconds, which would facilitate fast, no-hassle, and

tractable payments for end users, who can monitor and manage their low-end purchases.

The proposed system would be based on Radio Frequency Identification (RFID) technology.

The choice of this system is critical for this product because it would enable a wireless

payment system that would decrease the transaction time compared to a traditional credit

card processing time.

* Even though the credit and debit transactions were embraced by the "big-ticket purchasers",

ENM 380.3: Case Study: DexitPage 3

no effective solution was developed for "small-ticket purchasers" in Canada in late 2002.

Therefore, cash was used as the preferred choice for small transactions.

* Market research by Dexit and others indicated that cash purchases would grow to $270

billion by 2003. Also, it was identified that more than 350,000 retailers in Canada accepted

payment using debt card