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Book part
Publication date: 1 August 2017

Larry D. Compeau

To examine bad credit experiences in the context of identity to understand the entanglement between bad credit and the deformation of identity.

Abstract

Purpose

To examine bad credit experiences in the context of identity to understand the entanglement between bad credit and the deformation of identity.

Methodology/approach

A qualitative method using depth interviews and hermeneutical analysis.

Findings

Bad credit is a major life event and plays a critical role in identity. By restricting or eliminating identity construction and maintenance through consumption, identities are deformed. Consumer identities are deformed as they are consumed by the identity deformation process as normal patterns of consumption that have built and supported their identities are disrupted and demolished. Bad credit is overwhelmingly consumptive of consumers – it consumes their time, energy, patience, lifestyle, relationships, social connections, and perhaps most importantly, it consumes their identity as it deforms who they are.

Research limitations/implications

Researchers need to examine more closely not just the creation and maintenance of identity, but also how identity is deformed and deconstructed through consumption experiences that can no longer be enjoyed.

Social implications

Government agencies may want to reexamine policies toward the granting of credit to reduce the incidence of loading up consumers with credit they are not able to pay for. The deformation of identity may result in anti-social behavior, although our study does not address this directly.

Originality/value

This study is different from previous work in several ways. We focus on identity deformation due to bad credit. By analyzing a crisis response that transcends the specific impetus of bad credit, we extend identity theory by developing an insight into “identities-in-crisis.” We also provide a theoretical framework and explore how consumers’ identities are deformed and renegotiated.

Details

Qualitative Consumer Research
Type: Book
ISBN: 978-1-78714-491-0

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Article
Publication date: 29 June 2020

Farah Diba M.A. Abrantes-Braga and Tânia Veludo-de-Oliveira

This study aims to develop and test a parsimonious theoretical model of risky indebtedness behaviour, a facet of over-indebtedness that refers to the behavioural tendency…

Abstract

Purpose

This study aims to develop and test a parsimonious theoretical model of risky indebtedness behaviour, a facet of over-indebtedness that refers to the behavioural tendency of often assuming hazardous debt levels.

Design/methodology/approach

The authors administered an online survey to credit card owners (n = 1,288) in an emerging economy in which consumer credit is characterized by extremely high interest rates (i.e. Brazil). The authors used covariance-based structural equation modelling to analyse the data and test for mediation effects.

Findings

Individuals who inadvertently consider their credit limits a part of their current income or are typically anxious about money are prone to engage in impulsive buying and, consequently, risky indebtedness behaviour. By engaging in such indebtedness behaviour, individuals weaken their financial preparedness for emergencies, which potentially jeopardizes their overall financial well-being.

Research limitations/implications

As indebtedness is a highly sensitive issue, the self-report measures used may have produced social desirability bias.

Practical implications

This study discusses the responsibility of financial institutions to support consumers in building awareness on how to adequately use financial services and to provide credit access to high-risk consumers. Policymakers need to ensure that those in the private sector play fairly.

Originality/value

This study adds new knowledge about how destructive financial behaviours operate and impact marketing and consumers’ financial well-being. It theorizes about indebtedness by critically examining existing and newly developed concepts in the financial services marketing literature.

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Article
Publication date: 3 October 2016

Christopher E.C. Gan, David A. Cohen, Baiding Hu, Minh Chau Tran, Weikang Dong and Annie Wang

The purpose of this paper is to investigate the impact that several of these factors have on a consumer’s decision to hold a credit card, as well as those involved in…

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1424

Abstract

Purpose

The purpose of this paper is to investigate the impact that several of these factors have on a consumer’s decision to hold a credit card, as well as those involved in determining the level of credit card limit.

Design/methodology/approach

Potential explanatory variables were identified in the literature, then used to build a binary logit model to test the impact of the card and consumer characteristics on credit card ownership. Data were collected via a structured interview of 409 consumers living in Hebei Province, China.

Findings

The results indicate that convenience in use, level of credit card interest rates, the application process, number of people in the household, a rewards programme, marital status, credit limit and age influence the likelihood of the respondent holding a credit card. Further, an anaylsis shows that the number of credit cards held, duration of holding a credit card, monthly credit card purchasing volume and having a degree at the tertiary level, are significantly and positively related to different levels of credit limit.

Originality/value

In summary, in order to attract more consumers to credit card use, the banks and credit card companies should consider making it more convenient for consumers to use their credit cards. Moreover, banks can increase their networking and degree of cooperation with merchants to increase the acceptance of payment by credit card. The most heavily used businesses such as supermarkets and smaller retailers, where consumers purchase goods frequently, would be good targets for banks’ attention. In addition, banks might also improve credit card reward programmes to make these more efficient and perhaps increase the size of the rewards customers can earn through card use.

Details

International Journal of Bank Marketing, vol. 34 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Content available
Article
Publication date: 24 August 2020

Hoang Nam Trinh, Hong Ha Tran and Duc Hoang Quan Vuong

The purpose of this study is to develop a theoretical model for consumer behavioral intention by integrating the technology acceptance model (TAM) and the theory of…

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2469

Abstract

Purpose

The purpose of this study is to develop a theoretical model for consumer behavioral intention by integrating the technology acceptance model (TAM) and the theory of perceived risk, which is tested on the intended use of credit cards in Vietnam.

Design/methodology/approach

The data were collected from 485 bank customers through a nationwide online survey. An exploratory and confirmatory factor analyzes were performed to validate the factor structure of the measurement items while structural equation modeling was used to validate the proposed model and testing the hypotheses.

Findings

The results of structural equation modeling reveal that perceived risk, perceived usefulness, social influence and perceived ease of use were significant determinants of consumer intention to use a credit card. Of them, only perceived risk discouraged the intended use of a credit card, which was synthesized from psychological, financial, performance, privacy, time, social and security risk.

Research limitations/implications

This study measured the first-order risk dimensions based on the payment function of the credit card only; these measurements missed potential losses relevant to credit function of credit cards.

Practical implications

This study can be beneficial to banks enacting policies to attract more consumers and to help decide how to allocate resources to retain and expand their customer base.

Originality/value

The study adds value to the literature on consumer behavior by confirming the impact of second-order perceived risk on the intended use of credit cards, which most previous studies have not demonstrated. The research also provides an empirical evidence to the academic research platform on e-banking services in Vietnam, especially related to the credit card industry.

Details

Asian Journal of Economics and Banking, vol. 4 no. 3
Type: Research Article
ISSN: 2615-9821

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Article
Publication date: 5 October 2010

Zafar U. Ahmed, Ishak Ismail, M. Sadiq Sohail, Ibrahim Tabsh and Hasbalaila Alias

Despite the spread in usage and ownership of credit cards, few studies have examined its effect on consumer debt in developing nations. The main purpose of this paper is…

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11129

Abstract

Purpose

Despite the spread in usage and ownership of credit cards, few studies have examined its effect on consumer debt in developing nations. The main purpose of this paper is to understand consumers' attitude and spending behavior using credit cards.

Design/methodology/approach

This study is based on a questionnaire survey conducted in Malaysia. Based on an extensive review of literature, a model is developed to identify the psychographic factors that influence the consumer attitudes toward using credit cards.

Findings

The paper found support for some of the theoretical expectations and lends support to some of the earlier deviations reported in the literature.

Practical implications

The findings are likely to be important to banks and financial institutions issuing credit cards, as they help managers to have a better understanding of cardholders in Malaysia and their attitude and behavior toward usage of credit cards.

Originality/value

This paper makes a valuable contribution given the fact that there is a dearth of empirical studies of this nature focusing on Malaysia.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 22 no. 4
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 28 February 2019

Liqiong Lin, Mohamad Dian Revindo, Christopher Gan and David A. Cohen

The rapid growth of credit card use in China poses the potential for card overuse and the accumulation of increased debt. The purpose of this paper is to report on an…

Abstract

Purpose

The rapid growth of credit card use in China poses the potential for card overuse and the accumulation of increased debt. The purpose of this paper is to report on an investigation into the determinants of overall credit card spending and card-financed debt by Chinese consumers.

Design/methodology/approach

This study focusses on two dependent variables: credit card monthly spending and card debt. The spending measure is based on consumer outlay for the month preceding the survey. Card debt is the consumers’ outstanding credit card debt when the survey was conducted. Three groups of independent measures are used: socio-demographic characteristics, card features and consumer attitude towards money. Both card spending and card debt are estimated with OLS methods. Data was obtained from the 2013 China Household Finance Survey of 1,920 households in 29 provinces and 262 counties across China that used credit cards over the survey period.

Findings

The empirical findings suggest consumers’ attitude towards money is more important in explaining card spending and debt variation than socio-demographic characteristics and card features. The credit limit set for a card, obligations to other loans and the method of paying for ordinary shopping exhibit positive effects on both card spending and card debt, while age exhibits a negative effect. Further, card spending is positively correlated with card debts, but the factors that determine card spending do not necessarily affect card debt and vice versa. Minimum card debt payments, cash advances, card tenure and interest-bearing debt have no effect on card spending but have positive effects on card debt. In addition, gender and income have opposite effects on card spending and debt.

Practical implications

The relationships we have documented suggest several actions the Chinese Government could consider dealing with credit card debt risk. Controlling the aggressive promotional campaigns that card issuers use to attract consumers and aggressive credit policies should be a focus of attention. The Chinese Government might, for example, impose minimum age and income requirements for granting credit cards and prohibit issuance of new cards to applicants who are already in debt with other types of credit. In addition, more stringent criteria to curb increases in card limits and tighter control over cash advances made on cards should be applied. Minimum payment amounts can also be increased in order to reduce credit card debt risk.

Originality/value

Despite ample documentation of consumerscredit card behaviour, the literature is deficient in at least two areas of enquiry. First, most previous research has investigated either credit card spending behaviour or card debt, but not both. Second, with few exceptions, most research has investigated a range of specific factors that affect credit card use. In contrast, this study investigates card spending as well as card debt behaviour using a wide variety of consumer dimensions particularly relevant to credit card use and resulting debt. In addition, this study focusses on Chinese consumers, who traditionally prefer to save first and delay spending. The impact of the rapid growth of credit card use on this traditional Chinese orientation towards spending is dynamic. Documenting the influence of the individual factors examined in this study is likely to be of value to both policy makers and institutions that offer and manage credit in this changing environment.

Details

International Journal of Bank Marketing, vol. 37 no. 2
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 20 April 2015

Jakob Cakarnis and Steve Peter D'Alessandro

This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and…

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1801

Abstract

Purpose

This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and knowledge on selection of the appropriate credit card.

Design/methodology/approach

This study uses survey research and partial least squares to investigate credit card behaviors of students versus young professionals.

Findings

In a comparative study of young professionals and students, it was found that consumer knowledge, as expected, leads to better consumer selection of credit cards. Materialism was also found to increase the motivation for more optimal consumer outcomes. For more experienced consumers, such as young professionals, it was found that despite them being more knowledgeable, they were more likely to select a credit card based on impulse.

Originality/value

This paper examines how materialism may in fact encourage some consumers to make better decisions because they are more motivated to develop better knowledge. It also shows how better credit card selection may inhibit impulse purchasing.

Details

Young Consumers, vol. 16 no. 1
Type: Research Article
ISSN: 1747-3616

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Article
Publication date: 1 January 1976

The Howard Shuttering Contractors case throws considerable light on the importance which the tribunals attach to warnings before dismissing an employee. In this case the…

Abstract

The Howard Shuttering Contractors case throws considerable light on the importance which the tribunals attach to warnings before dismissing an employee. In this case the tribunal took great pains to interpret the intention of the parties to the different site agreements, and it came to the conclusion that the agreed procedure was not followed. One other matter, which must be particularly noted by employers, is that where a final warning is required, this final warning must be “a warning”, and not the actual dismissal. So that where, for example, three warnings are to be given, the third must be a “warning”. It is after the employee has misconducted himself thereafter that the employer may dismiss.

Details

Managerial Law, vol. 19 no. 1
Type: Research Article
ISSN: 0309-0558

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Article
Publication date: 3 June 2014

Sandra Awanis and Charles Chi Cui

Prior research suggests that payment mechanisms are imbued with cues that affect purchase evaluation and future spending behavior. Credit cards are distinguished from…

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4067

Abstract

Purpose

Prior research suggests that payment mechanisms are imbued with cues that affect purchase evaluation and future spending behavior. Credit cards are distinguished from other payment mechanisms as they elicit greater willingness to spend, prompt weaker recollections of past credit expenses and overvaluation of available funds – a phenomena the authors call as “credit card effect.” Little is known about the individuals’ differential exposure to the credit card effect. The purpose of this paper is to present a new concept and measure of susceptibility to the credit card misuse and indebtedness (SCCMI).

Design/methodology/approach

The study focussed on young credit card users (aged 18-25) from Malaysia, Singapore, and the UK as they represent varying levels of credit card issuance and consumer protection regulations. The authors conducted confirmatory factor analysis and invariance tests to assess the validity, reliability and parsimony of the proposed scale in the three countries. Further, the authors examined the prediction power of SCCMI on consumer tendency to become a revolving credit card debtor.

Findings

Results show that the SCCMI scale is valid, reliable and parsimonious across the multi-country context. The paper provided additional validity support through known-group comparison among various payers of credit card bills.

Research limitations/implications

The convenience sampling used for the study is the main limitation. The findings bear important implications for more socially responsible marketing practice and better public policies in credit carder regulation for protecting young credit card users.

Practical implications

The new concept and measurement scale can be used for identifying the vulnerable individuals in credit card use, assisting consumer knowledge training, improving policies for credit card regulation, and helping credit card providers in socially responsible marketing practice.

Social implications

The cross-country validity of the SCCMI scale provides a unique contribution for monitoring and auditing consumer vulnerability in credit card misuse in Asian and European market conditions.

Originality/value

SCCMI offers an original concept that is distinct from previous research in that SCCMI focusses solely on the state of likelihood to commit credit card abuse rather than the behavioral manifestations of credit card misuse. SCCMI provides a new tool for marketers and public policy makers for ethically responsible credit card marketing and regulation to protect youths’ benefits.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 26 no. 3
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 1 January 1975

Knight's Industrial Law Reports goes into a new style and format as Managerial Law This issue of KILR is restyled Managerial Law and it now appears on a continuous…

Abstract

Knight's Industrial Law Reports goes into a new style and format as Managerial Law This issue of KILR is restyled Managerial Law and it now appears on a continuous updating basis rather than as a monthly routine affair.

Details

Managerial Law, vol. 18 no. 1
Type: Research Article
ISSN: 0309-0558

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