Consumers Satisfaction Measurement In Using Credit Cards

CONSUMERS SATISFACTION MEASUREMENT IN USING CREDIT CARD IN BANGALORE CITY

A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE UNIVERSITY.

Submitted By Mr. VINAY.K Reg.No -03XQCM6121

UNDER THE GUIDANCE OF DR. K.V. PRABHAKAR ADJUNCT PROFESSOR

M.P.BIRLA INSTITUTE OF MANAGEMENT ASSOCIATE BHARTIYA VIDYA BHAVAN. BANGALORE-560001

2003-2005

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 1 of 79

Consumers Satisfaction Measurement In Using Credit Cards

DECLARATION
I hereby declare that this dissertation entitled Consumers Satisfaction Measurement in Using Credit Cards in Bangalore City is the result of research work carried out by me under the guidance of Dr.K.V.Prabhakar, Adjunct Professor, M P Birla Institute of Management, Bangalore.

I further declare that this dissertation reflects my own efforts and that it has not been submitted earlier to any other University or Institution for the award of any Degree or Diploma or any other title of recognition.

Place: Bangalore Date: 15th June 2005 (Mr. Vinay.K)

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 2 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CERTIFICATE

This is to certify that this dissertation entitled Consumers Satisfaction Measurement in Using Credit Cards in Bangalore City is the result of the research work carried out by Mr.K.Vinay under the guidance me.

Place: Bangalore Date: 15th June 2005

(Dr.K.V.Prabhakar)

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 3 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CERTIFICATE

This is to certify that this dissertation entitled Consumers Satisfaction Measurement in Using Credit Cards in Bangalore City is the result of the research work carried out by Mr.K.Vinay under the guidance of Dr.K.V.Prabhakar, Adjunct Professor, MPBIM, Bangalore.

Place: Bangalore Date: 15th June 2005

(Dr.Nagesh.S.Malavalli) Principal

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 4 of 79

Consumers Satisfaction Measurement In Using Credit Cards

ACKNOWLEDGEMENT
I extremely thankful to all those who have shared their views, opinions, ideas and experiences with me in carrying out this research work. I am particularly indebted to Dr.K.V.Prabhakar, Adjunct Professor, MPBIM Bangalore for his guidance.

I extend grateful thanks to Dr. Nagesh.S.Malavalli, Principal, MPBIM Bangalore for providing me with the necessary academic support.

I also extend my warm debt of gratitude to my family, friends and well wishers for their tremendous support and valuable suggestions.

(Vinay.K)

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 5 of 79

Consumers Satisfaction Measurement In Using Credit Cards

LIST OF TABLES, CHARTS, DIAGRAMS AND GRAPHS:

Page no.- 6 Page no.-21 Page no.-22

Fig no. 1 Fig no. 2 Fig no. 3

Graph showing market share of credit cards Pie chart showing Sources of data collection Graph showing consumers awareness about types of credit card

Page no.-23

Fig no. 4

Graph showing consumers actual holding of type of card

Page no.-25

Fig no. 5

Graph showing consumers awareness about terms of credit card

Page no.-26

Fig no. 6

Graph showing consumers overall ranking on criteria being considered for issuing credit card by credit card agencies

Page no.-28

Fig no. 7-12

Graph showing various reasons for buying credit card.

Page no.-34

Fig no. 13

Pie chart showing Actual uses of credit card by consumers

Page no.-35

Fig no. 14

Graph

showing

problems

faced

by

consumers as the credit card holders Page no.-37 Fig no.15-18 Graph showing Consumers overall

experience as credit card holder Page no.-41 Fig no.19-21 Graph showing Post purchase behavior of the credit card holders Page no.-44 Fig no.22-34 Graph showing overall satisfaction or

dissatisfaction as credit card holders

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 6 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CONTENTS:
Declaration Certificate from internal guide Certificate from principal Acknowledgement List of tables, chart, diagram graph Executive summary (I) ( II ) (III) (IV) (V) (VI)

PART A (Theoretical frame work)

Page no.

Chapter 1: Introduction .. Chapter 2: Consumers satisfaction measurement (CSM).. Chapter 3: Research objective Chapter 4: Research methodology.. Chapter 5: Data collection tools..

2 10 12 13 15

Chapter 6: Research limitation 16

PART B (survey findings)

Chapter 7: Industry profile.. Chapter 8: Data analysis and interpretation A. Source of data collection B. Consumers awareness about types of credit card C. Consumers actual holding of type of card D. Consumers awareness about the terms of credit card . E. Consumers overall ranking on criteria being considered for issuing credit card by credit card agencies

18 21 21 22 23 24

26

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 7 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Page no

F. Reasons for buying credit card

28

G. Actual uses of credit card by consumers 34 H. Problems faced by consumers as the credit card holders... 35 I. Consumers overall experience as credit card holder.. 37

J. Post purchase behavior of the credit card holders 41 K. Overall satisfaction or dissatisfaction as credit card holders.. 44

PART C (Conclusion and Recommendation)

Chapter 9: Major findings of research. 58 Chapter 10: Recommendations 60 Chapter 9: Directions for further research.. 62

Annexure: Select Bibliography Questionnaire

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 8 of 79

Consumers Satisfaction Measurement In Using Credit Cards

PART A (THEORITICAL FRAMEWORK)

INTRODUCTION

CONSUMERS SATISFACTION MEASUREMENT

RESEARCH OBJECTIVE

RESEARCH METHODOLOGY

DATA COLLECTION TOOLS

RESEARCH LIMITATION

CHAPTER-1
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 9 of 79

Consumers Satisfaction Measurement In Using Credit Cards

INTRODUCTION
Credit card is the most popular version of plastic money. It has been defined as rectangular thin sheet of plastic, about the size of visiting card, which enables the holders which enables the holder to products/services without having to pay for them immediately.

Credit card originated in USA in 1930.Its use was widespread by 1950s. The origin of bank credit has been traced to Jhon.C.Biggins, a consumer credit card specialist at the Flat Bush National Bank of Brooklyn, New York. In 1946, he launched a credit plan called charge-It

Different types of credit cards are; Affiliated cards, Charge cards, Travel cards, Proprietary credit and Debit card. The others are Co-branded credit card, Smart card, Individual card, Add on card and corporate card. A credit can be domestic or international one. It can be demarcated as premium, executive and classic and revolving credit facility as its pivot.

The convenience and the credit facility are the two main reasons behind the proliferation of credit cards.

Three main steps involving in issuing the credit are: Marketing Issuing and approval of credit card Collection

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 10 of 79

Consumers Satisfaction Measurement In Using Credit Cards

The Diners group first brought the credit card to India in 1964. In real sense, it was not a credit card; it was only a charge card. The central bank set up first credit card operation in the country with the help of master card in 1981. The first rush into the business came way back in the last 1980s with Citibank the rush peaked around 1993-94 when Standard Chartered, among others came in with much flourish. In India credit card culture growing very fast. Selected foreign players in credit market in India include: Citibank Standard Chartered HSBC AMEX ANZ Grindlays.

Citibank offers various credit cards like Gold card, Silver card, Diners card, and women card and IOC card. Standard chartered bank offers credit cards like Global credit card, Photo credit card, RASOI for Gold standard and Executive credit cardholders. Selected Indian players that offer credit in India are: Allahabad Bank Andhra Bank Bank of Baroda Bank of India Canara Bank Central Bank of India Dena Bank State Bank of India HDFC Bank ICICI Bank
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 11 of 79

Consumers Satisfaction Measurement In Using Credit Cards

BRIEF ON CREDFIT CARD MARKET IN INDIA

Credit cards are gaining ground in India too. More and more banks are encouraging their people to go in for credit cards. Besides the various freebies and rewards doled out, customers feel it very convenient to carry a plastic card rather than bundles of currency. The expected growth rate of credit card business in India is 25-30%. With the advent of globalization and privatization, the concept of credit cards is gaining popularity. Customers no longer have to carry huge sums in their wallet. Most of the bill payments including utility payments can be taken care by credit cards. Further, in India at least, people perceive the card as a status symbol. In India, Citibank, Standard chartered and HSBC are the main players. However, various Indian banks, both public and private, are entering into Joint Ventures with international names like MasterCard and Visa. Recently, BOBCARDS has launched a credit card, PARAS, in association with the MasterCard International. Citibank is still the largest card issuer in the country with the total of 1.5mn cards issued. As the corporate banking margins are falling, the banks are focusing more on the retail segment. SBI and ICICI are capturing the market at a very fast pace. Citibank and ICICI Bank may have identical market share in terms of credit card issuance but when it comes to spending patterns ICICI bank lags far behind reveals Infoteks latest card industry survey.

Citibank and ICICI bank have 21% market share in the fast growing credit card market but in terms of spends at merchant establishment, Citibank garners a neat 26% while ICICI Bank has a mere 12% which is comparable to that of SBI which ranks fourth in the issuance tally. These figures have been compiled in consumer payment processing company; venture Infoteks fourth
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 12 of 79

Consumers Satisfaction Measurement In Using Credit Cards

annual industry survey 2004. Total spends in the payment industry for the year 2003-04 was 20,555 crore at merchant establishments reflecting a growth of 28% previous year

Citibank is the leader in capturing 26% of the market share, followed by standard chartered at 15%, ICICI and SBI at 12%, Amex at 11%, HSBC at 9% and others 15%. The combined share in terms of spends of foreign bank are about 66%. The average spend per card is RS 19,789 per annum. Private Banks have shown phenomenal growth in the credit card market with card issuance vaulting by 117% with the card base raising from 12.6 lakh to 27.3 lakh.

Foreign Banks followed with a 25% increase in the base, rising from 43.25 lakh to 54 lakh. Foreign banks acco0unted for around 53% of the credit cards in India. The public sector Bank has shown the least growth of 10%, rising from 20.23 lakh to 22.17 lakh cards.

In the private sector ICICI Bank and HDFC Bank are the two prominent players holding a 26% share of market. Public sector banks form 21% of market with SBI leading the pack.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 13 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Fig no. 1. Graph showing market share of credit cards

30%

25%

20%

15%

10%

5%

0%
Citibank standard chartered ICICI SBI Amex HSBC Others

Source: venture Infoteks fourth annual industry survey 2004.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 14 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Types of cards
Debit Card it is account holders mobile ATM. Open an account with a Bank that offers a debit card, an payment for purchase are deducted from customers bank account. The retailer swipes the card over an electronic terminal at his outlet, customers enter the personal identification number on a pin pad and the money is immediately debited at the bank. Citibank and few domestic Banks like times bank offer this. Affinity Cards a card offered by two organizations, one a lending institution, other a non financial group. Schools, non profit groups, pro wrestlers, popular singers and air lines are among those featured on affinity cards. Usually, use of the card entitles holders to special discounts or deals from non financial group. Standard Card it is the most basic card offered by issuers. Classic Card brand name for the standard issued by VISA. Gold Card / Executive Card a credit card that offers a higher line of credit than a standard card. Income eligibility is also higher. In addition, issuers provide extra perks or incentives to card holders. Platinum Card a credit card with a higher limit and additional perks than a Gold card.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 15 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Titanium Card - a card with an even higher limit than a platinum card. Secured Card a credit card that a card holder secures with a saving deposit to ensure payment of outstanding balance if the card holder defaults payments. Customers new to credit, or customers trying to rebuild their poor credit rating use it. Smart Card smart cards, sometimes called as chip cards, contain a computer chip embedded in a plastic. Where a typical credit cards magnetic stripe can hold only a few dozen characters, smart cards are now available with 16k of memory. When read by special terminals, the card can perform a number of functions or access data stored in the chip. These cards can be used as cash cards or as credit cards with a present credit limit, or used as ID cards with stored-in password. Charge Card it falls between debit and a credit card. Works like latter and consumer need not be an accountholder. Just pay up in full when the bill arrives with the mail. No outstanding are allowed, in other words, no revolving credit facility either. American express and diners are providers. Rebate Cards this is card that allows the customer to accumulate cash, merchandise or service based on card usage. Co Branded Card this is a marriage of convenience between the service providers who wants a trade-off with the others strength. Specific facilities are made to members through these tie ups. So, Times Bank and Citibank have a co-branded card that allows confessional
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 16 of 79

Consumers Satisfaction Measurement In Using Credit Cards

rates for add-on cards or telephone banking. Standard chartered and Hindustan lever limited have a co-branded card to sell Aviance beauty products. SBI and GE capital has co-branded card for retail loans. Cash Card cash cards, similar to pre-paid phone cards, contain a set amount of value, which can be read by special cash card reader. Participating retailers will use the reader to debit the card in increments until the value is gone. The cards are like cash they have no built-in security, so if lost or stolen, it can be misused by any one. Travel Card they work mostly as debit cards for the limited purpose of travel. Citibank Dollar card, American Express, Bobcard Global and HSBC Thomas cook international card are among the players in this section. Master Cards are a product of Master card international and along with VISA are distributed by financial intuitions around the world. Cardholders borrow money against a line of credit and pay it back with interest if balance is carried over from month to month. 23,000 financial institutions in 220 countries and issue its products. In 1998, it had almost 700 million cards in circulation, whose user spent $ 650 billion in more than 16.2 million locations. VISA Card VISA Card is a product of VISA Card USA and along with Master Card is distributed by financial intuitions around the world. A VISA card holder borrows money against a credit line and repays the money with interest if the balance is carrie4d over from month to month in a revolving line of credit. Nearly 600 million carry one of the VISA brands and more than 14 million locations accept VISA cards
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 17 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHAPER-2

CONSUMERS SATISFACTION MEASUREMENT (CSM)

Very little has been done to advance the concept of consumers satisfaction and its useful ness as an operational variable. There is probably no such significant concept in the marketing that is at once more fundamental and pervasive but less adequately developed than consumers satisfaction.

Hill (1963) operationally measured satisfaction by asking consumers to evaluate their satisfaction with the purchase decision they made rather than the product themselves. Drucker (1969) asserts that marketing concepts is bankrupt and Ralph Naders success demonstrates that customer satisfaction is not always the basis of the company policy. Marketing has been described as Customer Satisfaction Engineering (Kotler and Levy, 1969)

John and sheth (1969) laid important foundations for the process model of satisfaction and developed buying behavior manner. According to them customers satisfaction is the point at which expectations and reality coincide. The concise oxford dictionary defines satisfy as meet the expectations or desire (notions or perception, etc.). Kotler (2000) described satisfaction as it is persons feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectation. Howard and Sheth (1969) have defined customer satisfaction, as the buyers cognitive stage of being adequately or inadequately rewarded for the sacrifice he/she has undergone According to comprehensive review conducted by Youjae (1993) consumers satisfaction has been defined as either an outcome or as a process.
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 18 of 79

Consumers Satisfaction Measurement In Using Credit Cards

The outcome definitions characterize customers satisfaction as the end state resulting from the consumption experience. Alternatively, satisfaction has been considered as a process, emphasizing the perceptual, evaluative, and psychological process that contributes to customers satisfaction. There exist a several empirical evidences, which confirm the hypothesis of disconfirmation of expectation on satisfaction. It is important to keep in mind that extent to which either a product or service fulfils an individual customers desires can also lay a very significant role in creating feelings on satisfaction.

The various levels of satisfaction identified by contributors mainly include satisfaction with a product, a purchaser decision experience, a performance attribute satisfaction with a consumption experience, a store or institution, and a pre - purchase experience. Finally, a time dimension might be added. It would be reasonable to assume that satisfaction may change from the time of purchase through the consumption and final disposal of the product. Three time frames become relevant: instantaneous, short and long run.

Certain generalization can be made about the concept of consumers satisfaction as follows CS is complex evaluative attitude Every aspect of the purchasing consumption process determines its level CS is measurable CS can be accessed and/or evaluated.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 19 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHAPTER-3

RESEARCH OBJECTIVES
The research study was pursued mainly with the following objectives: To find the consumers awareness regarding the type of credit card, brand of credit card, the terms of credit cards, benefits of using credit card, etc. To evaluate consumers satisfaction or dissatisfaction To recommend the measures for improving the credit card business in Bangalore city.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 20 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHAPTER- 4

RESEARCH METHODOLOGY

A structured non-distinguished questionnaire for the purpose of collecting necessary data has been used. A non probability, quota cum convenience sample was drawn that consisted of 50 credit card holders across Bangalore city of Karnataka state in 2005. It was premised that the respondent to be drawn should be currently holding status as a credit card holder.

The structured questionnaire consisted of 12 questions relating to various key issues sources of information, consumers awareness about various aspects of using credit card, actual use of credit card and consumers satisfaction and dissatisfaction on selected criterions.

1) Survey Method: -

Having decided to adopt a survey method to collect data for this study, the next step is to decide on the type of survey consistence on resources like time & money which leads to the sample survey. The survey is classified in to two parts, viz. Exploratory study. Descriptive study.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 21 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Exploratory Study: The main objective of exploratory study is to get the feel of the market, products, competitive consumer. This helps in gathering primary information used for descriptive study.

Descriptive study: The exploratory study laid the foundation for the descriptive study & paved a way to a systematic study which led to achieve the objectives of the study.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 22 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHPTER-5 DATA COLLECTION TOOLS

Primary data was collected through questionnaire: a structured questionnaire was used to collect data and questionnaire comprised of both open and close end questions.

Credit card holders were selected using random sampling method. Target respondents were credit card holders from whom the research specific data were collected.

Whatever data source that is available through published source have been tapped to obtain secondary data which consisted of generic information like credit card type, industry and market. Source of information were collected from websites of various banks, credit card related articles from various magazines.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 23 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHAPTER-6 RESEARCH LIMITATIONS

The study is not proposed to be an expert study as it was done by a student for the purpose of a partial fulfillment of the course, which is an integral part, in completion of and award of MBA degree. The study was conducted in a short period of six weeks, and so the findings cannot be generalized for all times. Some of the information sought being confidential was not included in the study. The scope of the study, by and large is very vast. It is difficult to satisfy all the areas; therefore an attempt is made to cover significant aspects.

A Few noticeable limitations of the study were: Time and cost constraints. There was a problem with generalization as the investigation is restricted to credit card holders in Bangalore city. Research findings were susceptible to respondents bias/prejudice.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 24 of 79

Consumers Satisfaction Measurement In Using Credit Cards

PART B (SURVEY FINDINGS)

INUSTRY PROFILE.

DATA ANALYSIS AND INTERPRETATION.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 25 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHAPTER-7

INDUSTRY PROFILE
Credit bureaus have been in the news in India as one of the many reasons why the credit card market is finally seeing some drop in interest rates. Also for the first time credit card issuers are talking of differential interest rates for different consumers depending on the consumer's credit profile. The interest rate on credit cards had stubbornly refused to drop despite a sharp drop in rates in other retail lending markets such as home loans and personal loans and intensifying competition among the credit card issuers, due to the relatively higher delinquency rates experienced by them in their credit card portfolios. All this is slated to change now as the credit bureau(s) in India is operationalised. So what are Credit Bureaus? What do they do?

Credit bureau's are independent organizations (mostly commercial, for profit organizations) which collate records from the various lending organizations like Banks, credit card companies, housing finance companies and even keep track of any Bankruptcy proceedings in the courts. The records are collated based on a common identifier such a social security number, citizenship number, PAN card no. etc. The collated records track your repayment history in terms of timely payments for the last few years (typically the last 24-60 months). It also keeps track of any adverse judgments passed in Bankruptcy courts. In other words your credit history is available on request. Credit bureaus also keep track of the number of requests made for your credit history.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 26 of 79

Consumers Satisfaction Measurement In Using Credit Cards

All this information is available to prospective creditors or others like potential landlords, life insurance companies, etc. This is also available online and most credit bureau's would categories your credit (as A, B, C or D much like credit rating agencies do for corporate borrowers) depending on the period for which you have had a credit history, your repayment track record, absence of any adverse judgments, period over which the repayments have to be made, etc. This enables you to leverage your good track record of payment for getting better and easier credit terms such as lower interest rates, higher loan eligibilities, longer tenures, etc. Besides Banks can also judge your recent credit appetite (or how many potential lenders you have approached simultaneously) by studying the number of requests for your credit history in the immediate past. Thus where objective third party credit information is available the people with good credit track records stop subsidizing the consumers with no or bad credit track record. A credit bureau helps banks to take quick decisions on credit requests as they have a objective source of your credit repayment history and total credit availed by you. It also enables you to benefit from your excellent credit track record and brings down the cost of credit substantially. It does raise privacy issues in terms of unauthorized access to your credit records by outsiders but the benefits for consumers far outweigh any possible disadvantages.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 27 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Indian Scenario
Realizing the importance of a credit bureau in strengthening the retail credit scenario the regulator is encouraging the Banks to pool information about their customers with credit bureaus. A joint venture of various Banks led by HDFC and State Bank of India called Credit Bureau of India Limited has been formed and has launched initial operations in May 2004. A bill is also pending before the parliament to provide statutory and regulatory oversight to this most important credit infrastructure. Meanwhile some credit card companies have formed an association to share information about defaulting consumers. This is currently used by most Banks to find out if any of their new credit applicants are on that list to avoid providing credit limits to consumers with a known history of bad credit track payments.

Impact

of

well

functioning

Credit

Bureau:

The biggest impact of a credit bureau is that maintaining good credit history becomes an economic asset for most consumers in terms of easier access to credit in the future and hence the temptation to default even where means exist reduces dramatically. This substantially brings down the cost of bad debts for the economy as a whole which in turn leads to a reduction in general interest charged to you. Secondly the intrusive and expensive physical investigations that happen today are not needed and hence the speed of decision making as well as the cost of taking credit decisions comes down which again means that the interest rates are lowered for good consumers while defaulters pay higher prices or are denied credit altogether.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 28 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHAPTER-8

DATA ANALYSIS AND INTERPRETATION

Based on the feedback received data were analyzed, interpreted, inferred and has been reported as follows:

A. Source of data collection Friends 32 Relations 10 Others 8

Fig no.2. Pie chart showing Sources of data collection

16%

20% 64%

Fiends Relations Others

Source- field investigation

Interpretation: Information by friends (64%) includes School, College, PG and other personal friends; information by relations (20%) was the major source of information from the credit card holders. Information from others contributed to the extent of (16%) (family friends, faculties, friends parents).

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 29 of 79

Consumers Satisfaction Measurement In Using Credit Cards

B. Consumers awareness about types of credit cards:

Banks

Citibank ICICI

SBI

HSBC Stan char

AMEX ANZ

ABN

Grindlays Amro 6 55 27 7 15 7 8 6 3

1 Percentage Samples 97 48

2 91 45

3 86 43

4 46 23

5 53 26

100% 80% 60% 40% 20% 0%

97%

91%

86%

46%

53%

55%

15% 6% 1 2 3 4 Banks 5 6 7 8

Source- field investigation.

Interpretation: Consumers awareness were found highly aware of Citibank, ICICI, SBI, 97%, 91%, 86% respectively. Consumers were moderately aware of HSBC, Standard chartered, AMEX 46%, 53% and 55% respectively. Awareness level was found very low in the case of ANZ Grindlays 15% and ABN Amro 6%.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 30 of 79

Consumers Satisfaction Measurement In Using Credit Cards

C. Consumers actual holding of type of card: Bank Citibank ICICI SBI Stan char 1 Percentage 70 sample 35 2 40 20 3 20 10 4 14 7 5 4 2 6 2 1 AMEX HSBC

Fig no.4. Graph showing consumers actual holding of type of card

70% 60% 50% 40% 30% 20% 10% 0%

70%

40% 20% 14% 4% 1 2 3 4 Banks 5 2% 6

Source field investigation

Interpretation: Majority of the consumers were holding Citibank credit card (70%) followed by ICICI Bank credit card (40%), SBI credit card (21%), Standard Chartered (14%), AMEX credit card were held by (3%), and HSBC credit card by (1%) of the sample.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 31 of 79

Consumers Satisfaction Measurement In Using Credit Cards

D. Consumers awareness about the terms of credit card:

Sl no

Terms

Percentage

Sample

Joining fee

100

50

Annual fee

100

50

Repayment

96

48

Interest on cash with drawals

92

46

Interest on free period

60

30

Point of sale terminal

32

16

Electronic terminal

data

capture

20

10

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 32 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Fig. no.5. Graph showing consumers awareness about terms of credit card
120% 100% 100% % of respondents 80% 60% 60% 40% 20% 0% 1 2 3 4 5 6 7 Terms of credit card 32% 10% 100% 96% 92% 1 2 3 4 5 6 7

Source- field investigation

Interpretation:

Consumers overall awareness about the terms of credit card was found reasonably high. Cent percent awareness was found about the terms, i.e. joining fee and annual fee. Other familiar terms were repayment (96%), interest on cash withdrawals (92%), interest on free period (60%); the level of awareness was low in terms of point of sale terminal (32%), and electronic data capture terminal (20%).

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 33 of 79

Consumers Satisfaction Measurement In Using Credit Cards

E. Consumers overall ranking on criteria being considered for issuing credit card by credit card agencies:

Serial number 1 2 3 4

Criteria Annual income Repayment capacity Profession Past credit history Ownership of the residence

Percentage 96 80 30 12

No of respondents 48 40 15 6

Fig no. 6. Graph showing consumers overall ranking on criteria being considered for issuing credit card by credit card agencies
120% 100% % of respondents 80% 60% 40% 20% 0% 1 2 3 4 5 6 7 Consumers' overall ranking criteria
Source- field investigation

96% 80% 1 2 3 4 30% 12% 6% 5

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 34 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Interpretation:

Annual income was perceived by consumers as the most important criterion followed by repayment capacity, profession, past credit history, educational achievements of applicants in issuance of credit card by the credit card agencies. The ownership of the residence was found to be the least important criterion.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 35 of 79

Consumers Satisfaction Measurement In Using Credit Cards

F. Reasons for buying credit card

Reasons for buying credit card It is easier for me to buy

Yes 41

% yes 82

No 8

% no 16

Fig no. 7 Reasons for buying credit card

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes
Source-field investigation

82%

Yes No

16%

No

. Interpretation:

Majority of the respondents i.e. (82%) felt that buying the credit card would help them to purchase anything of their choice quite easily. Respondents also felt that owning a credit card would help to make the transaction simple.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 36 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Reasons for buying credit card continued...

Reasons for buying credit card

Yes

% yes 88

No 6

% no 12

It dose not require carrying cash 44 in person

. Fig no. 8 Reasons for buying credit card

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No 12% Yes No 88%

Source field investigation

Interpretation:

Majority of the respondents (88%) felt carrying credit card was much safer than carrying cash. It was also found that credit cards provided financial security. (12%) of the respondents were not confident about credit card because they felt it can be misused.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 37 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Reasons for buying credit card continued...

Reasons for buying credit card I can arrange parties

Yes 3

% yes 6

No 47

% no 94

Fig no. 9. Reasons for buying credit card

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Source field investigation

94%

Yes No

6% Yes No

Interpretation:

Only (6%) of the respondents agreed that they would use the credit cards to arrange parties. It was found that these respondents life style was different from that of the rest of the sample; these respondents were youngsters who did not have any sort of family commitment. Majority of the respondents who did not agree with the statement were either having family responsibilities or married and settled down.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 38 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Reasons for buying credit card continued...

Reasons for buying credit card

Yes

% yes 64

No 18

% no 36

I can buy more than one product 32 at a time

Fig no. 10. Reasons for buying credit card

70% 60% 50% 40% 30% 20% 10% 0% Yes No 36% Yes No 64%

Source- field investigation

Interpretation:

As many as (64%) of the respondents agreed that they can buy more than one product at a time with the help of credit card. It was found that customers need not wait for their creditworthiness.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 39 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Reasons for buying credit card continued...

Reasons for buying credit card

Yes

% yes 58

No 21

% no 42

I can make an early purchase of 29 the product

Fig no. 11 Reasons for buying credit card

70% 60% 50% 40% 30% 20% 10% 0% Yes No 58%

42% Yes No

Source-field investigation

Interpretation:

It was found that (58%) of the respondents felt that they can make early purchase of the products that has just arrived into the market; they felt that they need not wait for a long time to arrange the cash and then make the purchase.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 40 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Reasons for buying credit card continued...

Reasons for buying credit card

Yes

% yes 78

No 11

% no 22

It results into savings of interest 39 for stipulated period

Fig no. 12. Reasons for buying credit card

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No 22% Yes No 78%

Source-field investigation

Interpretation:

Majority of the respondents (78%) felt that the greatest advantage of owning a credit card was that It results into savings of interest for stipulated period which means consumers can purchase the product of their choice and make the payment within stipulated period of time which, in turn, will result in saving the interest.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 41 of 79

Consumers Satisfaction Measurement In Using Credit Cards

G. Actual uses of credit card by consumers: Uses Cash withdrawal Discount on selected shop Purchase of petrol Robbery insurance Purchase of consumer durable products 72 4 84 36 2 42 Percentage 92 40 Sample 46 20

Fig no.13. Pie chart showing Actual uses of credit card by consumers

29%

31%

Cash withdrawal

selected shop
Petrol

1% 14%

Robbery insurance Durable products

25%
Source-field investigation

Interpretation: Maximum uses of credit card were found for purchases of consumer durable products (76%) , cash withdrawals through ATMs (92%), discount on selected shop (40%), and robbery insurance was found to be (4%) respectively.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 42 of 79

Consumers Satisfaction Measurement In Using Credit Cards

H. Problems faced by consumers as the credit card holders:

Serial number 1

Problems Very low acceptability of credit card

% yes 50

Sample 25

Inconvenient location of ATMs

30

15

Time taken for issuing credit cards

74

37

Incorrect charges levied

10

Fig no. 14 Graph showing problems faced by consumers as the credit card holders
80 70 60 50 40 30 20 10 0
y Ac ce pt ab ilit

74

% of respondents

50 30 10

Acceptability Location Time charges

Lo ca tio n

e Ti m

problems faced by consumers'

ch ar ge s
Source-field investigation

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 43 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Interpretation:

Majority of the respondents agreed that they are unhappy about time taken in issuing a new credit card (74%), low acceptability of credit card (50%), inconvenient location of ATMs (30%); very few respondents agreed that they had to make follow up for rectifying incorrect charges levied on them (10%).

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 44 of 79

Consumers Satisfaction Measurement In Using Credit Cards

I. Consumers overall experience as credit card holders:

Customers overall experience as credit card holders

Agree

Undecided

Disagree

Discount offered at sale are less when purchases are made with the credit card help of

76%

16%

8%

Fig no. 15. Graph showing Consumers overall experience as credit card holder
80% 70% % of respondents 60% 50% 40% 30% 20% 10% 0% Agree Undecided Disagree consumers' overall experience of credit card holder 16% 8% Agree Undecided Disagree 76%

Source-field investigation

Interpretation:

Majority of the respondents (76%) agreed that the discount offered at sale were less when purchases were made with the help of credit card. It was found that when cash purchases were made discount availed was higher as there were no commission and extra charges involved in the transaction.
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 45 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Consumers overall experience as credit card holders:

Customers overall experience as credit card holders It makes me to buy more when purchases are made with the help of credit card

Agree

Undecided

Disagree

46%

20%

34%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

46% 34% Agree 20% Undecided Disagree

% of respondents

Agree

Undecided

Disagree

consumers' overall experience of credit card holder

Source-field investigation

Interpretation:

Majority of the consumers (46%) felt that it made them to buy more when purchases were made with the help of credit card, as the payments were not made immediately by the consumers to the credit card companies they felt like purchasing more. (34%) of the respondents said that they would not be influenced by this factor; they would rather plan the purchases according to requirements.
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 46 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Consumers overall experience as credit card holders:

Customers overall experience as credit Agree card holders

Undecided

Disagree

It always cost me more to withdraw the cash from ATM with the help of credit card

72%

22%

6%

Fig no. 17. Graph showing Consumers overall experience as credit card holder
80% 70% % of respondents 60% 50% 40% 30% 20% 10% 0% Agree Undecided Disagree consumers' overall experience of credit card holder 6% 22% Agree Undecided Disagree 72%

Source- field investigation

Interpretation:

As high as (72%) of the respondents agreed with the statement it always cost me more to withdraw the cash from ATM with the help of credit card, the reason being the high service charges and other taxes which were levied on consumers for each transaction and also rate of interest charged on the withdrawals was quite high.
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 47 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Consumers overall experience as credit card holders:

Customers overall experience as credit card holders The credit card agency offers nothing free of cost as being claimed by them

Agree

Undecided

Disagree

56%

34%

10%

60% % of respondents 50% 40% 30% 20%

56%

34%

Agree Undecided Disagree 10%

10% 0% Agree Undecided Disagree consume rs' overall experie nce of credit card holder

Source-field investigation

Interpretation:

Number of respondents who agreed to this statement was to the extent of (56%). They felt that credit card agencies offer more than what they can actually provide this ultimately leading to consumers dissatisfaction. (34%) of the respondents were not able to decide on this. (10%) of the respondents disagreed with the statement.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 48 of 79

Consumers Satisfaction Measurement In Using Credit Cards

J. Post purchase behavior of the credit card holders:

Post purchase behavior of the credit card Agree holders I would recommend this credit card to others 70%

Undecided

Disagree

14%

16%

Fig no. 19 Graph showing Post purchase behavior of the credit card holders
80% 70% % of respondents 60% 50% 40% 30% 20% 10% 0% Agree Undecided Disagree post purchase behavior of credit card holder 14% 6% Agree Undecided Disagree

70%

Source-field investigation

Interpretation:

Majority of the respondents (70%), were quite happy with their credit cards. Reasons were quality of service, friendly employees, location of ATMs and brand name of the credit card.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 49 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Post purchase behavior of the credit card holders continued ..

Post purchase behavior of the credit card holders I intended to change my credit card next year

Agree

Undecided

Disagree

14%

23%

63%

Fig no. 20 Graph showing Post purchase behavior of the credit card holders
70% 60% % of respondents 50% 40% 30% 20% 10% 0% Agree Undecided Disagree post purchase behavior of credit card holder 14% 23% Agree Undecided Disagree 63%

Source-field investigation

Interpretation:

Only (14%) of the credit card holders agreed to the statement I intended to change my credit card next year. This is because such reasons as: very low acceptability of credit card, inconvenient location of ATMs, Time taken for issuing credit cards, incorrect charges levied and high interest rates.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 50 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Post purchase behavior of the credit card holders continued ..

Post purchase behavior of the credit card holders I would continue to use credit card in future Agree 95% Undecided 2% Disagree 3%

Fig no. 21 Graph showing Post purchase behavior of the credit card holders
100% 90% % of respondents 80% 70% 60% 50% 40% 30% 20% 10% 0% Agree Undecided Disagree post purchase behavior of credit card holder 2% 3% Agree Undecided Disagree 95%

Source-field investigation

Interpretation:

As high as (95%) of the respondents agreed to the statement I would continue to use credit card in future. The reasons were customers had made credit card as part of their life styles and they were fully aware of all the benefits of the credit cards.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 51 of 79

Consumers Satisfaction Measurement In Using Credit Cards

K. Overall satisfaction or dissatisfaction as credit card holders:

Overall satisfaction or dissatisfaction Satisfied as credit card holders Information about various charges 70%

Cant say

Dissatisfied

8%

22%

Fig no. 22 Graph showing overall satisfaction or dissatisfaction as credit card holders
80% 70% % of respondents 60% 50% 40% 30% 20% 10% 0% Satisfied Can't say Dissatisfied Overall satisfaction or dissatisfaction as credit card holder 8% 22% Satisfied Can't say Dissatisfied 70%

Source-field investigation

Interpretation:

It was found that most of the respondents were quite happy about the information that was given to them by the sales associates. (70%) of the respondents were satisfied with the information they received. (8%) of the respondents could not decide upon information given to them. (22%) of them were not satisfied with the information they received.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 52 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall satisfaction or dissatisfaction Satisfied as credit card holders Information provided by brochures / 74% leaflets

Cant say

Dissatisfied

18%

8%

Fig no. 23 Graph showing overall satisfaction or dissatisfaction as credit card holders
80% 70% % of respondents 60% 50% 40% 30% 20% 10% 0% Satisfied Can't say Dissatisfied Overall satisfaction or dissatisfaction as credit card holder 18% 8% Satisfied Can't say Dissatisfied 74%

Source-field investigation

Interpretation:

Majority of the respondents were satisfied with the information provided by brochures and leaflets. (74%) of the respondents agreed that brochures / leaflets provide good information because they were able to store the information and retrieve it.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 53 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall satisfaction or dissatisfaction Satisfied as credit card holders Advantages of credit card 86%

Cant say

Dissatisfied

12%

2%

Fig no. 24 Graph showing overall satisfaction or dissatisfaction as credit card holders
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 86%

% of respondents

Satisfied Can't say Dissatisfied 12% 2% Satisfied Can't say Dissatisfied

Overall satisfaction or dissatisfaction as credit card holder

Source-field investigation

Interpretation: Majority of the credit card holders were satisfied with the advantages of credit card. It was also found that most of the consumers were fully aware of advantages of owning a credit card. There were only (2%) of dissatisfied consumers and the satisfied consumers amounted to (86%).

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 54 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall satisfaction or dissatisfaction Satisfied as credit card holders Forms are easier to fill in by me . 84%

Cant say

Dissatisfied

6%

10%

Fig no. 25 Graph showing overall satisfaction or dissatisfaction as credit card holders
90% 80% % of respondents 70% 60% 50% 40% 30% 20% 10% 0% Satisfied Can't say Dissatisfied Overall satisfaction or dissatisfaction as credit card holder
Source-field investigation

84%

Satisfied Can't say Dissatisfied 6% 10%

Interpretation:

Majority of the respondents (84%) felt that it was easier for them to fill the forms by themselves. They felt there was not much ambiguity while filling up these forms.(6%) of the respondents were not able to decide. (10%) of the respondents were not happy with the forms.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 55 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall satisfaction or dissatisfaction Satisfied as credit card holders Employees are help full 92%

Cant say

Dissatisfied

4%

4%

Fig no. 26 Graph showing overall satisfaction or dissatisfaction as credit card holders
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 92%

% of respondents

Satisfied Can't say Dissatisfied

4% Satisfied Can't say

4% Dissatisfied

Overall satisfaction or dissatisfaction as credit card holder

Source-field investigation

Interpretation:

Majority of the respondents felt that employees working in the sales outlets and direct sales agent were helpful and co-operative. (92%) 0f the respondents felt that employees were customer- friendly and they were present to deliver whenever required. The major finding was employees received most of the complaints and queries through telephone and e-mail services, they were quick to identify and solve the problem of customers in very short period of time.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 56 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall

satisfaction

or Satisfied

Cant say

Dissatisfied

dissatisfaction as credit card holders Joining fee 90% 6% 4%

Fig no. 27 Graph showing overall satisfaction or dissatisfaction as credit card holders
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 90%

% of respondents

Satisfied Can't say Dissatisfied

6% Satisfied Can't say

4% Dissatisfied

Overall satisfaction or dissatisfaction as credit card holder Source-field investigation

Interpretation:

Most of the respondents felt joining fee was reasonable. (90%) of the respondents had no encounters with the joining fee; however, there were only (4%) of the respondents who were not happy with the joining fee.(6%) of the respondents were unable to decide.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 57 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall satisfaction or dissatisfaction Satisfied as credit card holders Annual fee 82%

Cant say

Dissatisfied

4%

14%

Fig no. 28 Graph showing overall satisfaction or dissatisfaction as credit card holders
90% 80% % of respondents 70% 60% 50% 40% 30% 20% 10% 0% Satisfied Can't say Dissatisfied Overall satisfaction or dissatisfaction as credit card holder 4% 14% Satisfied Can't say Dissatisfied 82%

Source-field investigation

Interpretation:

Majority of the respondents were satisfied with annual fee. (82%) of the respondents felt that annual fee charged was reasonable and were willing to pay it because of quality of service and advantages of credit card. (4%) of the respondents were unable to decide whether annual fee was reasonable or unreasonable. Only (14%) of the respondents felt that annual fee was too high.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 58 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall satisfaction or dissatisfaction Satisfied as credit card holders Rate of interest 10%

Cant say

Dissatisfied

30%

60%

Fig no. 29 Graph showing overall satisfaction or dissatisfaction as credit card holders
70% 60% % of respondents 50% 40% 30% 30% 20% 10% 10% 0% Satisfied Can't say Dissatisfied Overall satisfaction or dissatisfaction as credit card holder Satisfied Can't say Dissatisfied 60%

Source-field investigation

Interpretation:

It was found that majority i.e. (60%) of the respondents were not happy with the rate of interest that is being charged on them and any delay in payment of interest would add on to more interest; this was the one of the main factor for majority of the consumers dissatisfaction. Only (10%) of the respondents were satisfied with the interest rate.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 59 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall satisfaction or dissatisfaction Satisfied as credit card holders Interest free period 58%

Cant say

Dissatisfied

34%

8%

Fig no. 30 Graph showing overall satisfaction or dissatisfaction as credit card holders
70% 60% % of respondents 50% 40% 30% 20% 10% 0% Satisfied Can't say Dissatisfied Overall satisfaction or dissatisfaction as credit card holder 8% 34% Satisfied Can't say Dissatisfied 58%

Source-field investigation

Interpretation:

Form the findings there were only (60%) of the respondents were aware of the term interest free period; out of which (58%) of the respondents were satisfied with interest free period. (34%) of them were not able to decide. (8%) of the respondents were dissatisfied.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 60 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall

satisfaction

or Satisfied

Cant say

Dissatisfied

dissatisfaction as credit card holders Mode of payment 92% 2% 6%

Fig no. 31 Graph showing overall satisfaction or dissatisfaction as credit card holders
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 92%

% of respondents

Satisfied Can't say Dissatisfied

2% Satisfied Can't say

6% Dissatisfied

Overall satisfaction or dissatisfaction as credit card holder Source-field investigation

Interpretation:

Majority of the respondents were quite happy with the mode of payment and were fully satisfied with it, at the same time it was found that these (92%) of the respondents were aware of all the terms and conditions of the payment. (2%) of the respondents were not able to decide and (6%) were dissatisfied. Overall satisfaction or dissatisfaction as credit card holders continued
________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 61 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction Satisfied as credit card holders

Cant say

Dissatisfied

ATM Facility

84%

4%

12%

Fig no. 32 Graph showing overall satisfaction or dissatisfaction as credit card holders
90% 80% % of respondents 70% 60% 50% 40% 30% 20% 10% 0% Satisfied Can't say Dissatisfied Overall satisfaction or dissatisfaction as credit card holder 4% 12% Satisfied Can't say Dissatisfied 84%

Source-field investigation

Interpretation:

Only (4%) of the respondents were not able to decide weather they were satisfied with the location of ATMs and other facilities in the ATMs. (84%) of the respondents were satisfied with the ATM facilities; some of the respondents who were satisfied did feel that the facilities of ATMs could be improved. Only (12%) were dissatisfied.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 62 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders continued

Overall satisfaction or dissatisfaction Satisfied as credit card holders Location of ATMs 54%

Cant say

Dissatisfied

16%

30%

Fig no. 33 Graph showing overall satisfaction or dissatisfaction as credit card holders
60% % of respondents 50% 40% 30% 30% 20% 10% 0% Satisfied Can't say Dissatisfied Overall satisfaction or dissatisfaction as credit card holder 16% Satisfied Can't say Dissatisfied 54%

Source-field investigation

Interpretation:

There were over fifty percent of the respondents who were happy with the location of ATMs; majority of them resided in the urban part of the city. However, respondents residing in semi-urban areas and rural areas of Bangalore metropolitan area were facing serious problems to get access to ATMs.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 63 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Overall satisfaction or dissatisfaction as credit card holders (Aggregate): Satisfied Percentage Sample 86 43 Dissatisfied 12 6 Undecided 2 1

Fig no. 34 Graph showing overall satisfaction or dissatisfaction as credit card holders
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 86%

% of respondents

Satisfied Can't say Dissatisfied 12% 2% Satisfied Can't say Dissatisfied

Overall satisfaction or dissatisfaction as credit card holder

Source-field investigation

Interpretation:

Majority of the credit card holders were satisfied (86%) with their current usage of credit card and (12%) of the credit card holders were dissatisfied

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 64 of 79

Consumers Satisfaction Measurement In Using Credit Cards

PART C (CONCLUSION AND RECOMENDATION)

MAJOR FINDINGS OF RESEARCH.

RECOMMENDATIONS.

DIRECTIOMS FOR FURTHER RESEARCH.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 65 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHAPETR- 9

MAJOR FINDINGS OF THE RESEARCH

Consumers

were found highly aware about Citibank, ICICI, SBI,

97%, 91%, 86% respectively.

Majority if the consumers were holding Citibank credit card (70%) followed by ICICI Bank credit card (40%), SBI credit card (21%), Standard Chartered (14%), AMEX credit card were held by (3%), HSBC credit card were held (1%) of the sample

Consumers overall awareness about the terms of credit card was found
reasonably high. Cent percent awareness was found about the terms, i.e. joining fee and annual fee. Other familiar terms were repayment (96%), interest on cash withdrawals (92%). Annual income was perceived by consumers as the most important criteria followed by repayment capacity. Majority of the respondents i.e. (82%) felt that buying the credit card would help them to purchase any thing of their choice quite easily. Respondents also felt that owning a credit card would help to make the transaction simple.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 66 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Sources of information were friends, information provided by direct sales associates and advertisement in magazine, newspaper and information from internet are the most important sources for consumer in choosing a credit card. They are well aware about the benefits of credit card. They mainly use credit card to use credit card to buy consumer durable products but frequency of using credit card is not as high as other developed nations. It has therefore been suggested that credit agency reduce annual fee, improve the acceptability of credit card via wider merchant establishments network, improve consumer education, as well as ethical promotion and marketing communication of credit cards. Increase ATMs and minimizing of levies on credit card by government, will go on in a long way to strengthen the credit card industry in Bangalore in near future. Majority of the respondents agreed that they are unhappy about time taken in issuing a new credit card (74%). 78% of the respondents felt that greatest advantage of owning a credit card was It results into savings of interest for stipulated period which means consumers can purchase the product of their choice and make the payment within stipulated period of time which in turn will result in saving the interest.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 67 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHAPTER- 10

RECOMMENDATIONS

Based on our research findings, the following recommendations have been offered: Annual fee should be reduced. Number of merchant establishments should be increased, most of the establishments are located in the heart of the city i.e. only in the urban part of Bangalore. Number of merchant establishments has to be increased in semi developed areas and as well as rural parts of the city.

Educating employees at the credit cards accepting outlet on handling credit card transaction and benefits involved there in is highly essential to increase the growth rate of credit card market. To expand the business, credit card issuers should focus on semi developed areas as well as rural parts of the city i.e. by setting up outlets and ATMs in these areas, most of the credit cards have been issued to customers residing in urban areas only.

Government should play a positive role to increase the spending on credit card.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 68 of 79

Consumers Satisfaction Measurement In Using Credit Cards

State government should minimize levies charged on credit card transactions.

More number of ATMs should be installed. They should be installed. They should be networked so that a customer having card issued from one agency can also make use of it at ATMs of any other agency.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 69 of 79

Consumers Satisfaction Measurement In Using Credit Cards

CHAPTER- 11

DIRECTIONS FOR FURTHER RESEARCH

We have identified the following areas for further research: Use of metric in measurement of consumer Satisfaction/ Dissatisfaction in respect of credit card holder --- A Quantitative analysis. Performance indicators of customers preference towards credit card--A Diagnostic study. Customer loyalty in respect of credit card holders ----- A Analytical study. Market share analysis in credit card market ----- A Quantitative analysis Customer relation management in respect of credit card holders Service Magic and Magnetic Service for credit card holders --- An Indepth study. Innovative marketing products with special reference to Product Innovation and acceptance in credit card market ----- An explorative study.

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 70 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Annexure:
SELECT BIBLIOGRAPHY

QUESTIONNAIRE

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 71 of 79

Consumers Satisfaction Measurement In Using Credit Cards

SELECT BIBLIOGRAPHY
BOOKS: 1. Marketing by Michael J Etzel, Bruce J Walker, and William J Stanton 13th Edition, Tata McGraw-Hill Publications. 2. Shopper, Buyer, and Consumer Behavior by Jay D Lindquist and M Joseph Sirgy 2nd Edition, Bizantra Publications 3. Consumer Behavior by James P Engel, David T Kollat and Roger D Blackwell 2nd Edition, Holt, Rinehart and Winston publications 4. Marketing Management and Research by P.K.Gupta, 2nd Edition, Everest Publications. JOURNALS: 1. Journal of Marketing Research 2. Journal of Consumer Research 3. Journal of Academy of Marketing Science 4. Journal of Marketing BUSINESS MAGAZINES: 1. Business World 2. Business Today 3. Business Standard 4. Financial express 5. Harvard Business Review

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 72 of 79

Consumers Satisfaction Measurement In Using Credit Cards

WEBSITES USED: 1. www.google.com 2. www.knowthestuff.com 3. www.moneycontrol.com

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 73 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Questionnaire
Name: _____________ (Optional) 1. Source of information
Friends Relation Others

2. Consumers awareness about types of credit card ( 1- 5) 1- Strong awareness, 2- somewhat aware, 3-not sure, 4 somewhat not sure, 5- unaware a. Citibank b. AMEX c. ICICI d..ANZ Grindlays e. HSBC f. Standard Chartered g. SBI

h. others please specify____________________________

3. Consumers actual holding a. Citibank b. AMEX c. ICICI d. ANZ Grindlays e. HSBC f. Standard Chartered g. SBI

h. others please specify____________________________

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 74 of 79

Consumers Satisfaction Measurement In Using Credit Cards

4. Consumers awareness about the terms of credit card (1- 5).

1-

Strong awareness, 2- somewhat aware, 3-not sure, 4 somewhat not sure, 5- unaware a. Joining fee c. Repayment e. Interest free period g. Electronic data capture terminal b. Annual fee d. Interest on cash withdrawals f. Point of sale terminal i. Others __________________

5. Consumers overall ranking on the criteria being considered for issuing the credit card by credit card agencies (1- 5). 1-strongly agree, 2-somewhat agree, 3-not sure, 4-somewhat disagree, 5- strongly disagree

a. Annual income c. Profession e. Educational achievements

b. Repayment capacity d. Past credit history f. Ownership of residence

i. Others please specify___________________________________

6. Reason for buying credit card

Reasons for buying credit card It is easier for me to buy It dose not require carrying cash in person I can arrange parties I can buy more than one product at a time

Yes

No

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 75 of 79

Consumers Satisfaction Measurement In Using Credit Cards

I can make an early purchase of the product It results into savings of interest for stipulated period

7. Actual benefits availed by consumers using credit cards (1-5) 1-strongly agree, 2-somewhat agree, 3-not sure, 4-somewhat disagree, 5- strongly disagree

a. Cash withdrawals c. Purchase of petrol e. Purchase of consumer durable product

b. Discount on selected shop d. Robbery insurance e. Others please specify _____________________

8. Problem being faced by the consumers as the credit card holders 1-strongly agree, 2-somewhat agree, 3-not sure, 4-somewhat disagree, 5Strongly disagree.

a. Very low acceptability of credit card b. Inconvenient locations of ATMs c. Time taken for issuing new credit card d. Incorrect charges levied e. Others please specify___________________________________

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 76 of 79

Consumers Satisfaction Measurement In Using Credit Cards

9. Customers overall experience as credit card holders

Statements

Agree

Undecided

Disagree

Discount offered at sale are less when purchases are made with the help of credit card It makes me to buy more when purchases are made with the help of credit card

It always cost me more to withdraw the cash from ATM with the help of credit card The credit card agency offers nothing free of cost as being claimed by them

10. Post purchase behavior of the credit card holders

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 77 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Statements

Agree

Undecided

Disagree

I would recommend this credit card to others

I intended to change my credit card next year

I would continue to use my credit in future

11. Consumers overall satisfaction or dissatisfaction.

Particulars Information about various charges Information provided by brochures / leaflets Advantages of credit card Forms are easier to fill in by me Employees are help full Joining fee Annual fee

Satisfied

Cant say Dissatisfied

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 78 of 79

Consumers Satisfaction Measurement In Using Credit Cards

Rate of interest Interest free period Mode of payment ATM facility Location of ATMs

12. Consumers overall satisfaction or dissatisfaction as a credit card holder.

Satisfied

Cant say

Dissatisfied

THANK YOU

________________________________________________________________________ M P BIRLA INSTITUTE OF MANAGEMENT Page 79 of 79