Consumers’ resolution of credit card problems and exit behaviors
Abstract
Using data from the Survey of Consumers, this study focuses on consumer’s resolution efforts with credit card problems and the likelihood of “exiting” – that is, discontinuing the use of a given credit card or of the financial institution associated with the card. Among all households with a problem, nearly two‐thirds (63 percent) were able to resolve their problem, while over half (55 percent) exited. Exit was associated with marital status, race, how dissatisfied the consumer was, number of problems related to credit cards, and attribution. Holding all else constant, consumers who were likely to resolve their problem were only half as likely to exit. Thus, credit card companies need to carefully and quickly address their customers’ problems and resolve their complaints.
Keywords
Citation
Hogarth, J.M., Hilgert, M.A. and Kolodinsky, J.M. (2004), "Consumers’ resolution of credit card problems and exit behaviors", Journal of Services Marketing, Vol. 18 No. 1, pp. 19-34. https://doi.org/10.1108/08876040410520681
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited