Consumers ' choice of credit/charge card
Lim, Susan Gim Peng
Low Wee Choo
Date of Issue1993
College of Business (Nanyang Business School)
The purpose of this research is to uncover the factors that affect consumers' choice of credit or charge card. Recent developments have indicated that the intensity of competition in the card market has increased. Therefore, part of the objectives of the current study would be to identify those benefits that cardholders consider as important and which would likely affect their evaluation of the cards to apply for. Other areas of study were on developing demographic profiles of the responding cardholders based on the nature of card held, on whether these demographic variables have significant effects on their card choice and on how often credit settlement was used for a variety of activities like the purchase of food items, non-food items and travel and entertainment etc. The results from the analysis indicated that certain benefits like a flexible repayment plan and waiver of membership fee offered by the issuers were considered important while other benefits such a.S discount on car rentals and fast cash service drew mixed reactions. The usage frequency for most of the respondents were considered low (about 1 to 4 times per week). However, most cardholders used the card very frequently to settle payments for dining and travelling purposes. The demographic profiles for Visa and MasterCard cardholders were almost identical while American Express cardholders were a distinct group on their own. The report ends with some recommendations on the areas for future research and how this research study can be further improved in terms of measurement scales and underlying constructs.
Final Year Project (FYP)
Nanyang Technological University