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Article
Publication date: 1 March 1994

Anil Mathur and George P. Moschis

Although older American spend increasingly large sums of money on goodsand services, it is widely believed by financial service providers andretailers that these individuals make…

1926

Abstract

Although older American spend increasingly large sums of money on goods and services, it is widely believed by financial service providers and retailers that these individuals make relatively little use of credit cards. Using a large national sample of respondents from different age groups, finds that older adults use credit cards as frequently as younger adults when circumstances and opportunities for consumption in both groups are similar. Age‐related declines in use of credit cards may reflect changes in lifestyles and other circumstances associated with age, not age per se. Discusses implications of the results for retailers and consumer credit lenders.

Details

Journal of Services Marketing, vol. 8 no. 1
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 1 February 1984

Erdener Kaynak and Ugur Yucelt

A number of insights are provided into the characteristics and attitudinal orientations of American and Canadian credit card users with indications that in both countries further…

Abstract

A number of insights are provided into the characteristics and attitudinal orientations of American and Canadian credit card users with indications that in both countries further growth in the development of credit cards is expected throughout the 1980s.

Details

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

Keywords

Article
Publication date: 1 December 2001

M. Jill Austin and Melodie R. Phillips

The practice of marketing credit cards on college campuses is becoming increasingly controversial. Critics have charged that credit card companies use unethical practices to…

4917

Abstract

The practice of marketing credit cards on college campuses is becoming increasingly controversial. Critics have charged that credit card companies use unethical practices to encourage students to become overloaded with debt. In response, many colleges now ban credit card solicitors from campus. Perhaps the best way credit card companies can improve their image is to provide specific educational opportunities to students when they fill out credit applications. Includes an empirical study of the debt issues of college students. Results indicate that students can learn specific types of information that should improve their ability to manage their debt. This information includes issues associated with the frequency of use of credit cards, the payment of credit card debt, and the number of credit cards held. Makes specific educational recommendations that should be helpful to companies that currently market credit cards to college students. Results may also provide planning information to banks and credit card companies in parts of the world where credit card usage by college students is not yet widespread, but is likely to increase due to developing free market systems and the increased use of credit worldwide.

Details

Journal of Services Marketing, vol. 15 no. 7
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 21 August 2007

Hanudin Amin

Many banks consider mobile‐based technologies have improved the banking services through introduction of new banking facilities. One of the latest facilities developed in this…

6972

Abstract

Purpose

Many banks consider mobile‐based technologies have improved the banking services through introduction of new banking facilities. One of the latest facilities developed in this area is the “mobile credit card.” The purpose of this study is to examine the factors that determine intention to use mobile credit card among Malaysia bank customers, as their new way in conducting payment transactions.

Design/methodology/approach

The technology acceptance model (TAM) was used as the base model in order to develop the modified version of TAM to better reflect mobile credit card. In the modified model, perceived credibility and the amount of information on mobile credit card were added, in addition to perceived usefulness and perceived ease of use.

Findings

Results suggest that perceived usefulness, perceived ease of use, perceived credibility and the amount of information on mobile credit cards are important determinants to predict Malaysia bank customers' intentions to use mobile credit card. Needless to say, the paper is exploratory in nature.

Research limitations/implications

This study suffers from two limitations. The discussion of these limitations is provided in the last part of this paper.

Practical implications

Useful to Islamic banking institutions planning further mobile credit card services for their customers.

Originality/value

Extends the understanding of TAM to newly emerging context of mobile credit.

Details

Information Management & Computer Security, vol. 15 no. 4
Type: Research Article
ISSN: 0968-5227

Keywords

Article
Publication date: 16 December 2022

Luis E. Arango and Ingri K. Quevedo

The authors estimate the determinants of the value of purchases of semi-durable goods using permanent and transitory income, and the demographic characteristics of customers. The…

Abstract

Purpose

The authors estimate the determinants of the value of purchases of semi-durable goods using permanent and transitory income, and the demographic characteristics of customers. The purpose is to identify whether individuals face remaining liquidity constraints, and how this friction affects their purchases.

Design/methodology/approach

This study uses anonymized data of 516,525 credit card holders, with more than 7,501,065 records of purchases between 2010 and 2015. The authors decompose the income of individuals into permanent and transitory components to test the prevalence of the life cycle–permanent income hypothesis (LC–PIH). Determinants of the value of purchases for constrained and unconstrained consumers are estimated, considering the period in which individual characteristics are valid, the decisions not to make purchases in some months, and the potential endogeneity of the interest rate and the transitory component of income.

Findings

The authors present evidence of liquidity constraints for individuals who have used a high percentage of the credit limit on their cards. For these restricted customers, the value of purchases is inelastic to the interest rate, whereas the response is sizable for customers who are less restricted. The restricted customers increase the value of purchases when faced with increases in their credit limit. The elasticity of the value of purchases of semi-durable goods to permanent income is less than that for transitory income; regardless of the constraints, this still supports the LC–PIH.

Research limitations/implications

This credit card is targeted at low- and middle-income individuals in Bogotá. Although the results might be considered as indicative of the behavior of those with similar characteristics in Colombia, the authors regard this work as the study of a particular case. A limitation of this work is that the authors do not have alternative sources of credit at an individual level.

Practical implications

The broad credit channel of monetary policy does not apply to the restricted customers. This should be considered not only by the monetary authority, to understand the true extent of this policy, but also by the financial institutions that use this business model. The monetary authority should be cautious not to overreact when intervening in the money market to try to prompt an adequate consumer response.

Social implications

Financial institutions have the policy of modifying the credit limits of their customers' credit cards which affects the well-being of restricted customers. Given that the card is aimed at low and middle income individuals, the credit limits of customers who use a high percentage of their credit limit might be increased.

Originality/value

This is the first paper to study liquidity restrictions with a retail credit card in Colombia and Latin America using information on customers' characteristics. The results are highly relevant for the implementation of monetary policy.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 25 October 2022

Israel José dos Santos Felipe, Michelle Machado Silva and Harrison Bachion Ceribeli

This study aims to identify the precedents of compulsively using a credit card, analyzing the influence of the following factors: power–prestige, anxiety, distrust and materialism.

2186

Abstract

Purpose

This study aims to identify the precedents of compulsively using a credit card, analyzing the influence of the following factors: power–prestige, anxiety, distrust and materialism.

Design/methodology/approach

Data collection was performed by the survey method, while the structural equation modeling technique was used for data analysis, adopting the confirmatory factor analysis and path analysis.

Findings

The impact that anxiety has on compulsive use of credit cards was confirmed. Furthermore, the influence of materialism present in an individual on the compulsive use of a credit card was also proven.

Research limitations/implications

As a limitation, the power–prestige construction did not obtain satisfactory average variance extracted in the modeling. Other limitations can be pointed out; for instance, it was a sample composed of university students and with geographic restrictions.

Practical implications

This study highlights the importance of promoting public policies oriented toward the conscious use of credit cards. Interference in the approach of financial institutions aimed at attracting new clients in universities is also necessary.

Social implications

This study aggregates information about the buying behavior of university students, how the precedents affect credit card use behavior and the harmful effects of compulsive use of credit cards.

Originality/value

The originality of this study is in offering a new approach to credit cards by analyzing their usage behavior, more specifically, the compulsive use of credit cards.

Details

Revista de Gestão, vol. 30 no. 1
Type: Research Article
ISSN: 1809-2276

Keywords

Article
Publication date: 4 July 2008

Lydia L. Gan, Ramin C. Maysami and Hian Chye Koh

The purpose of this study is to analyze Singapore's diverse cardholders in search of variations among demographic groups, credit card profiles, and their perceptions with regard…

4786

Abstract

Purpose

The purpose of this study is to analyze Singapore's diverse cardholders in search of variations among demographic groups, credit card profiles, and their perceptions with regard to credit card ownership and use. It then aims to discuss possible reasons governing Singaporeans' credit card ownership and use.

Design/methodology/approach

A survey was conducted, decision trees were then constructed using Chi‐square automatic interaction detection algorithm (CHAID) and SPSS software AnswerTree to examine the association between the number of credit cards (target variable) and the demographic characteristics, perceptions and other credit card‐related variables.

Findings

The number of credit cards was found to be significantly influenced by income and gender as well as perceptions that include “credit card leads to overspending”, “savings as payment source”, “unreasonable interest rates”, “credit card as status symbol”. The number of credit cards was also affected by credit card‐related variables such as missing payments sometimes, frequency of use, entertainment expenditures, and petrol purchase.

Practical implications

This research provides an in‐depth understanding of Singaporean multiple cardholders, thus it is useful in designing marketing strategies for card‐issuers as well as anti‐debt strategies for policy‐makers in Singapore.

Originality/value

Despite the importance of consumer credit, virtually no literature or research exists on the ownership and use of credit cards in Singapore, so this paper intends to close this gap. Further, by combining the demographics, cardholders' profiles and usage patterns with the respondents' perceptions concerning credit card ownership and use, our study offers a richer analysis to explain consumer behavior than previous literatures.

Details

Journal of Services Marketing, vol. 22 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 1 June 1994

Nejdet Delener and Herbert Katzenstein

Explores the socioeconomic and demographic characteristics of Asian andHispanic credit card holders. Outlines a conceptualization of therelationships between alternative payment…

2156

Abstract

Explores the socioeconomic and demographic characteristics of Asian and Hispanic credit card holders. Outlines a conceptualization of the relationships between alternative payment systems and various demographic and behavioural variables, which may serve as a preliminary theoretical framework for analyses of payment systems. Discusses the implications and their importance to marketers.

Details

International Journal of Bank Marketing, vol. 12 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 9 May 2020

Stephan Zielke and Marcin Komor

This paper analyses three strategies in customers’ use to afford consumption in a developed and an emerging market for different product groups. The strategies are: (1) usage of…

Abstract

Purpose

This paper analyses three strategies in customers’ use to afford consumption in a developed and an emerging market for different product groups. The strategies are: (1) usage of loyalty cards, (2) usage of credit cards and (3) usage of long-term credits.

Design/methodology/approach

Mall intercept surveys conducted in Poland (emerging market) and Germany (developed market) provide data for testing a set of hypotheses using ANOVAs.

Findings

Results show that customers in emerging markets show no differences in the usage of loyalty cards for product categories with high shopping frequency (groceries) compared to developed markets, while in all other product categories loyalty card usage is stronger. Results show further that in low price categories, customers in emerging markets use credit card payments more often compared to customers in developed markets. In high price categories, they use credit cards less often, but long-term credits more often.

Research limitations/implications

Results have implications for the design of loyalty programs and payment options in different markets. Results have also implications for public policy regarding concerns about increasing private debt in emerging countries.

Originality/value

This paper suggests a cost-benefit framework where customers in emerging countries perceive benefits of loyalty cards and credit options higher, while they are willing to bear higher costs. As a result, effects of product category characteristics on usage that are observable in developed markets do not exist in emerging markets.

Details

International Journal of Retail & Distribution Management, vol. 48 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 November 2001

Steve Worthington

Describes the importance of plastic payment cards at the point of sale (POS) and the evolution of the credit card in general and affinity cards in particular. Suggests reasons for…

5570

Abstract

Describes the importance of plastic payment cards at the point of sale (POS) and the evolution of the credit card in general and affinity cards in particular. Suggests reasons for both the growth of plastic card payments (the cashless society) and the threats to affinity cards (the interchange fee). Places the affinity credit card within the paradigm of relationship marketing and emphasises the triadic nature of these relationships. Discusses the development of the research into affinity credit cards and the issues of branding and trust that impact upon the triadic relationships. Explores the potential for affinity marketing and reports on research into trust and ethics which is relevant to this concept. Places affinity marketing within the retail arena and finally draws conclusions on the future for payments at the POS, relationships operationalised via plastic cards and triadic affinities.

Details

International Journal of Retail & Distribution Management, vol. 29 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

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