“A STUDY ON CUSTOMER PERCEPTION TOWARDS

CREDIT CARDS”
Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF BUSSINESS AND ADMINISTRATION

Submitted by
ANTONY JOY
(CCASBBAR17)

Under the supervision of

Ms. SIJI C L

DEPARTMENT OF MANAGEMENT STUDIES

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

MARCH 2021
 CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA
CALICUT UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON CUSTOMER

PERCEPTION TOWARDS CREDIT CARDS” is a bonafide record of project
done by ANTONY JOY, Reg. No. CCASBBAR17, under my guidance and
supervision in partial fulfillment of the requirement for the award of the degree
of BACHELOR OF BUSINESS ADMINISTRATION and it has not
previously formed the basis for any Degree, Diploma and Associateship or
Fellowship.

Prof. C.L.BABY JOHN Ms.SIJI C L

Co-ordinator Project Guide

 DECLARATION

I, ANTONY JOY, hereby declare that the project work entitled

“A STUDY ON CUSTOMER PERCEPTION TOWARDS CREDIT CARDS” is a
record of independent and bonafide project work carried out by me under the
supervision and guidance of Ms. SIJI C L, Assistant Professor, Department of
Commerce, Christ College, Irinjalakuda.

The information and data given in the report is authentic to the best
of my knowledge. The report has not been previously submitted for the award
of any Degree, Diploma, Associateship or other similar title of any other
university or institute.

Place: Irinjalakuda ANTONY JOY

Date: CCASBBAR17
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all

people who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose
divine guidance; I have been able to complete this work successfully.

I would like to express my sincere obligation to Rev.Dr. Jolly Andrews,

Principal-in-Charge, Christ College Irinjalakuda for providing various
facilities.

I am thankful to Prof. C.L.Baby John, Co-ordinator of Management Studies,

for providing proper help and encouragement in the preparation of this report.

I am thankful to Asst. prof. Aslam P.S, Class teacher for his cordial support,
valuable information and guidance, which helped me in completing this task
through various stages.
I express my sincere gratitude to Ms. Siji C.L, Assistant Professor, whose
guidance and support throughout the training period helped me to complete this
work successfully.

I would like to express my gratitude to all the faculties of the Department for
their interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my

college for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.
 TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1–3

CHAPTER 2 REVIEW OF LITERATURE 4 – 11

CHAPTER 3 INDUSTRY PROFILE 12 – 14

DATA ANALYSIS AND

CHAPTER 4 15 – 36
INTERPRETATION

FINDINGS, SUGGESTIONS
CHAPTER 5 37 – 39
& CONCLUSION

BIBLIOGRAPHY

ANNEXURE
 LIST OF TABLES

TABLE
TITLE PAGE NO:
NO:

4.1 Table showing age wise classification 16

4.2 Table showing income of the respondents 17

4.3 Table showing different type of banks 18

4.4 Table showing usage of credit cards 19

4.5 Table showing no.of credit cards 20

4.6 Table showing knowledge about the credit cards 21

4.7 Table showing usage of credit card-life long 22

4.8 Table showing features of credit cards 23

4.9 Table showing importance of credit cards. 24

4.10 Table showing security of credit cards 25

4.11 Table showing response from customer care 26

4.12 Table showing risk coverage 27

4.13 Table showing offers to credit card holder 28

4.14 Table showing personal expenses through credit cards 29

4.15 Table showing proper records to credit card holder 30

4.16 Table showing interest charges 31

4.17 Table showing usage of credit card in business 32

4.18 Table showing drawbacks of credit cards 33

4.19 Table showing quick processing of credit cards 34

4.20 Table showing advance facilities of credit cards 35

4.21 Table showing rating of credit card 36

 LIST OF CHARTS

FIGURE
TITLE PAGE NO:
NO:

4.1 Chart showing age wise classification 16

4.2 Chart showing income of the respondents 17

4.3 Chart showing different type of banks 18

4.4 Chart showing usage of credit cards 19

4.5 Chart showing no.of credit cards 20

4.6 Chart showing knowledge about the credit cards 21

4.7 Chart showing usage of credit card-life long 22

4.8 Chart showing features of credit cards 23

4.9 Chart showing importance of credit cards. 24

4.10 Chart showing security of credit cards 25

4.11 Chart showing response from customer care 26

4.12 Chart showing risk coverage 27

4.13 Chart showing offers to credit card holder 28

4.14 Chart showing personal expenses through credit cards 29

4.15 Chart showing proper records to credit card holder 30

4.16 Chart showing interest charges 31

4.17 Chart showing usage of credit card in business 32

4.18 Chart showing drawbacks of credit cards 33

4.19 Chart showing quick processing of credit cards 34

4.20 Chart showing advance facilities of credit cards 35

4.21 Chart showing rating of credit card 36

 CHAPTER I
INTRODUCTION
1.1 Introduction

There is growing popularity of credit cards being used as a mode of payment as

opposed to other modes of payment like cash and cheque. The credit card
offers the users the benefit of acquiring goods and services without having the
burden of carrying cash. It also offers access to credit without having to go
through the elaborate paperwork involved in case of a loan. As the credit card
ownership and use has expanded around the world, credit cards have become a
major source of financing consumer purchases as well as a method of money
transmission.

1.2 Statement of the problem

The study attempts to decipher the influence of age, gender, income, type of
user and credit card ownership on the frequency of using credit cards as a mode
of payment as well throw light on the major purchase situations in which credit
card holders frequently use credit cards for payment.

1.3 Significance of the study

Credit card usage and ownership has been significantly associated with
increased unplanned spending and debt. Debt associated with credit card usage
has been on the rise. This has raised concern over the adverse effects on the
consumers and economy at large. People have a tendency to increase their
expenses while using credit cards rather than debit cards, cash, cheque or other
modes of payment.

1.4 Objectives of the study

1.4.1 To know the reasons for using credit cards.

1.4.2 To assess the influence of demographic variables like age, gender,
income as well as credit card ownership on the usage frequency.
1.4.3 To know the Customer satisfaction regarding the credit card.

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1.5 Research design

It is the framework of research methods and techniques chosen by the

researcher.

1.5.1 Nature of study

The nature of study states as descriptive cum analytical.

1.5.2 Nature of data

The study is based on primary data and secondary data.

1.5.3 Source of data

Primary data is collected through questionnaire which is suitable for this study
and secondary data are collected from different websites.

1.6 Sample design

Sampling is a fundamental part of statistics. Samples are collected to achieve

an understanding of a population because it is typically not feasible to observe
all members of the population.

1.6.1 Nature of population

Credit card users in Kochi metro city.

1.6.2 Sample unit

Sample unit is credit card users in Kochi.

1.6.3 Methods of sampling

Convenience sampling is used for sampling here, because credit card users are
comparatively low in the area.

1.6.4 Size of sample

Sample size is limited upto 50.

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1.7 Tools of analysis

Percentage analysis is used as a tool in this study.

1.8 Limitations of the study

 The study is applicable only to the credit card holder. It is not be fully
applicable to other card holders.
 During the collection of data, respondents are not responding with their
full interest.
 In some cases the card holder is not fully aware about their bank credit
card.

1.9 Chapterisation

Chapter 1
Introduction: - It deals with introduction of project report, statement of problem,
scope of study, objectives of study, research design, sample design, and
limitations of the study.
Chapter 2
Review of literature: - It deals with conceptual review and empirical literature
of the study.
Chapter 3
Company profile: - Here an endeavour is made to explain the profile of credit
card industry.
Chapter 4
Data analysis and interpretation: - It deals with the data analysis and
interpretation which include percentage analysis and charts.
Chapter 5
Findings, Suggestions and Conclusion: - It includes findings, suggestions and
conclusion of the overall research experience.

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 CHAPTER II
REVIEW OF LITERATURE
2.1 Introduction

This chapter contains review of literature. It is divided in to two parts,

first part contains conceptual review about the topic history of cards,features of
cards,evolution, growth of cards and classification of cards and second part
contains empirical review about the studies conducted earlier about this topic.

2.2 Conceptual review

Oxford Dictionary and Thesaurus defines “credit card authorizing

purchase of goods on credit”. Credit cards are innovative instruments in the
area of financial services offered by commercial banks. The concept of credit
cards was first developed by Diners’ club founder Frank McNamara, an
American businessman who found himself without cash at a weekend resort
founded Diner’s card in 1950. A credit card, as the name indicates, enables
the cardholder to enjoy credit from the issuing bank for a specific period after
the purchases. During this intervening period, the cardholder is allowed to use
the card for incurring further expenses.

2.3 History of cards

As far back as the late 1800s, consumers and merchants exchanged goods
through the concept of credit, using credit coins and charge plates as currency.
It was not until about half a century ago that plastic payments as we know them
today became a way of life. The most common pre-plastic credit instruments
were charge plates, celluloid “coins” and charge coins.

2.4 Features of cards

The features of modern credit cards such as owner identification,

credit limit for its card holders and floor limit for its merchant
establishments, convenience and safety to add value of cards, wider usage
or popularity all over the world and dependence on technology to keep

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operating cost to the minimum, have been a runaway success for credit
cards.

2.5 Evolution and growth of card

The number of credit and debit card users in India is climbing fast, and
rising affluence is likely to erode Indians’ lingering reluctance to spend on
credit. Indians have traditionally valued thrift and frugality. But the spread of
affluence in the wake of rapid economic growth is challenging these values, at
least for many middle-class and high-income families. One sign of this is the
phenomenal growth in the number of credit and debit cards in India—in the
past three years, the number of credit cards has more than doubled and the
number of debit cards has almost quadrupled.

2.5.1 Drivers of growth in card payment market

Several factors have combined to fuel the astonishing growth in the use of
credit and debit cards in India. Apart from the convenience offered by cards,
these
factors include the following:
1. Rising consumerism
2. Improved payment infrastructure
3. Competition and lower costs
4. Co-branding

2.5.2 Credit card outstanding rising in India

The outstanding on plastic cards has risen by more than 50 per cent to Rs
19,345 crore as on February 15, 2008 according to the RBI. The credit card
industry in India is still nascent according to VISA. Indians make just 1 per
cent of their total purchases by credit cards against 20 per cent by Koreans. The
global average is around 9 per cent. The Indian Credit Card market is expected
to touch 55 million cards by 2010-2011.

5
2.5.3 SBI to increase co-branding credit business

SBI card which is a subsidiary of the State Bank of India and operating as
an NBFC is exploring the option of tying up with regional banks to expand its
national footprint. SBI card has forged alliance with United Bank of India and
Catholic Syrian Bank, as first step in this direction. It also has alliance with the
Indian Railways, Tata, Hero Honda for co-branded. The credit card industry in
India is growing annually at the rate of 30 per cent, while SBI has been
growing at the rate of 45 per cent. SBI is one of the big players of credit cards
in India with 3.6 million customers.

2.6 Classification of credit card

Before we apply for a credit card it is always better to know what type of
credit card is best suited to our profile. Catering to different types of consumer
needs, credit card companies issue several types of credit cards. Each type has
its own benefits. They can be classified as follows:
2.6.1 Based on Franchise / Tie-up

1) Proprietary Card:
Cards that are issued by the banks themselves without any tie-up, are
called proprietary cards. A bank issues such cards under its own brand.
Examples include SBI Card, CanCard of Canara Bank, Citicard.
2)Master Card:
This is a type of credit card issued under the umbrella of MasterCard
International. The issuing bank has to obtain a franchise from the MasterCard
Corporation of the USA. The franchised cards will be honoured in the
MasterCard network.
3) VISA Card:
This type of credit card can be issued by any bank having tie-up with
VISA International Corporation, USA. The banks that issue such cards are said
to have a franchise of VISA International. The advantage of a VISA franchise
is that one can avail the facility of the VISA network for transactions.

6
4) Domestic tie-up Card:
These cards are issued by a bank having a tie-up with domestic card
brands such as CanCard and Indcard are called ‘Domestic cards’.

2.6.2 Based on geographical validity

1)Domestic Card:
Cards that are valid only in India and Nepal are called ‘domestic cards’. They are
issued by most of the banks in India all transactions will be in rupees.
2) International and Global Card:
Credit cards with international validity are called ‘international cards’. They are
issued to people who travel abroad frequently. They are honoured in every part of the
world except India and Nepal. The cardholder can make purchases in foreign
currencies subject to RBI sanction and FERA rules and regulations.

2.6.3 Based on the issuer category

1) Individual Card:
These are the non-corporate credit cards that are issued to individuals.
Generally, all brands of credit cards are issued to individuals.
3) Corporate Card:
They are credit cards issued to corporate and business firms. The
executives and top officials of the firms use them. They bear the names of the
firms, and the bills are paid by the firms.

2.6.4 Based on mode of credit recovery

1)Revolving Card:
This type of credit card is based on the revolving credit principle. A credit
limit is fixed on the amount of money one can spend on the card for a particular
period. The cardholder has to pay a minimum percentage of the outstanding
credit which may vary from 5 to 10 percent at the end of a particular period.
Interest varying from 30 to 36 percent per annum is charged on the outstanding
amount.

7
2) Charge Card:
A charge card is not a credit instrument, it is a convenient mode of making
payment. This facility gives a consolidated for a specific periods and bills are
payable in full on presentation. There is neither interest liability nor no per-set
spending limits.

2.6.5 Based on status of Card

1)Standard Card:
Credit cards that are regularly issued by all card-issuing banks are called
‘standard cards’. With these cards, it is possible for a cardholder to make
purchases without having to pay cash immediately. They however, offer only
limited privileges to card holders. Some banks issue standard cards under the
Brand name “Classic” cards, which are generally issued to salaried people.
3) Business Card:
Business cards also known as ‘Executive cards’, are issued to small
partnership firms, solicitors, firms of chartered accountants, tax consultants and
others, for use by executives on their business trips. They enjoy higher credit
limits and more privileges than the standard cards.
4) Gold Card:
The gold card offers high value credit for elite. It offers many additional
benefits and facilities such as higher credit limits, more cash advance limits
that are not available with the standard or the executive cards.

2.7 Major banks issuing card in INDIA

The major credit card issuers in India are as follows:

1. ABN AMRO credit card
2. Andhra Bank card
3. Axis Bank Credit cards
4. Bank of Baroda credit card
5. Bank of India card
6. Barclays Bank credit card
11. HDFC credit card
12. HSBC bank card
13. ICICI credit card
14. Indian Overseas Bank card
15. Stand Chart credit card
16. State Bank of India credit card

8
7. Canara Bank card 17. Syndicate bank card
8. Central Bank of India card 18. Union Bank card
9. CITI Bank card 19. Vijaya bank card
10. Corporation Bank card

2.8 Empirical literature

Sunayna Khurana and S P Singh (2011) conducted a study to identify the

factors that influence the choice of credit cards and customer preferences and
expectations from credit/debit card services. A special focus was given on in
Tier-III cities. From 200 respondents, the data was collected through
questionnaires. Analysis of data revealed that the choice of credit card depends
upon income, gender and profession of the respondents. It also revealed that
income, frequency and the amount of usage in a month.

Dr.Ritu Narang (2008) analyzed the awareness level of the features and
satisfaction level of the credit cards among the users. The study also aimed to
know about the importance of different elements of credit card facility among
the users. Two hundred samples were collected and analyzed using chi-square
and ANOVA. It was concluded that majority of the respondents were only
partially aware of the features of the credit card and they had complained that
they did not receive the monthly statement on time.

Dr. Sanjay. J. Bhayani (2005) had conducted a survey to know about the
customers awareness about the services provided and how often they utilize
these services. An attempt was also made to know the post purchase behaviour
of the customers and customer awareness. Structured questionnaires were used
to collect the data from two hundred respondents having their current account
with private banks, nationalized and cooperative banks in Rajkot City. The
study revealed that people opted for private banks due to the services and inter

9
connectivity between the branches. Awareness about e-banking services should
be created among the credit card customers. Finally, the credit card customers
gave priority to convenience and status respectively and they felt that the card
was safe.

Manuel Orozco (2003) in his article stated that the SBI with branches in
United States issued SBI credit cards to the Indian diasporas. The non-resident
Pakistani’s were also offered the gold card and the silver card. They had
specific benefits such as special lounges at airports, free issuance and renewal
of passports on an urgent basis, exemption from import duties, special quotas to
be reserved in public colleges and universities for relatives of remitters and
public housing at attractive prices.

Janothan, Karp and Steve Stecklow (1999) mentioned about the issue of
credit cards in India and the results of inconvenience caused to card holders.
The issuing banks in order to collect outstanding balances from delinquent
customers appoint private agencies. Their sole aim is to make collection from
such customers to which issuing banks were ready to pay even twelve percent
of the collection as consideration to those agencies. This brought in criticism
among the customers who were emotionally tortured by the collecting agents.
Even the police were not able to take action against such banks as the banks
state that they have no control over the action of these agents.

Thomas.F. Cargill and Jeanne Wendel (1996) identified five factors that
influenced interest rate constraints on bank credit cards. They were financial
deregulation, structural characteristics of the industry, economic theory on the
characteristics of the industry, the descriptive effects of credit limits,
Regulation Q and the decline in the credit card. The higher the interest rates the
more competitive is the industry. It was suggested that consumer irrationality in
bank card use would be a major factor underlying the observed interest rate
stickiness.

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T. Barker, Ahmed Sekerkaya (1992) had conducted a study to find out the
attitude of two hundred card holders and non-card holders. The better-educated,
middle aged members of the upper-middle class seem to be the prime target.
According to him, the most important reasons for using credit cards were ease
of payment and the risk involved in carrying cash. He also proposed that the
usage and the administration of credit cards were influenced very much by the
infrastructure of the country and hence, credit card companies have to modify
their marketing procedure rather than following a standardized approach.

Biswa.N. Bhatacharaya (1989) explained the credit card system in India and
the different types of credit cards as practiced by Indian Banking Industry. He
had analyzed the profile of the credit card holders into four classes namely -
economic, social, geographical and behavioural profile. Percentages and
statistical averages were used. Extensive credit card usage may prove to be
inflationary owing to the fee that merchants pay to card companies. It has also
been found out that the use of credit cards has changed the pattern of consumer
debt.

Terry.M Wickre (1980) in his study had analyzed the Customer awareness
about the Visa and the Master charge card issued by the bank. The author had
conducted a pre and post study with the advertising strategies and found out
that by advertising, customers had become more aware of their credit card and
its operations. Advertising had increased the consumer ability to choose the
best card.

H. Lee Mathews and John W. Slocur Jr (1969) had conducted two studies
about the relationship between the consumer’s usage of bank credit cards, and
his or her income and social class. The findings of the study had revealed that
the members of the lower social class had tended to use their cards for
installment purpose. It concluded that all users had a favourable general
attitude towards credit card but the installment users were motivated to use
their card more frequently.

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 CHAPTER III
INDUSTRY PROFILE
3.1 Introduction

A credit card is a payment card issued to users to enable the cardholder to pay
a merchant for goods and services based on the card holder's promise to
the card issuer to pay them for the amounts plus the other agreed charges. The
card issuer creates a revolving account and grants a line of credit to the
cardholder, from which the cardholder can borrow money for payment to
a merchant or as a cash advance.

3.2 History of credit cards

The use of credit cards originated in the United States during the 1920s, when
individual firms, such as oil companies and hotel chains, began issuing them to
customers for purchases made at company outlets. The first universal credit
card, which could be used at a variety of establishments, was introduced by
the Diners’ Club, Inc., in 1950. Another major card of this type, known as a
travel and entertainment card, was established by the American Express
Company in 1958.In the late 20th century, credit card use began to increase
dramatically, with many customers soon outspending their earnings. Users who
were unable to make the monthly payments on outstanding balances accrued on
high-interest cards were subsequently hit with heavy penalty fees and quickly
fell into default. The recession and rising unemployment that accompanied
the global financial crisis of 2008–09 led to a rise in defaults as consumers
were increasingly forced to rely on credit. In April 2009 the U.S. House of
Representatives approved the Credit Card Holders’ Bill of Rights, which would
provide additional consumer protections and restrict or eliminate credit card
industry practices deemed unfair or abusive.

3.3 Credit cards in India

In the 1960s, people who lived or traveled to foreign countries were the only
ones who opted for the Diners Card offerings in India. The adoption towards
credit cards was so slow that it took 15 years to reach 8,000 Diners Card
registered users in India.

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The Central Bank of India launched the first bank credit card in 1980, which
was followed by Andhra Bank in the same year – both were of the Visa brand.
MasterCard was introduced to Indian consumers by Vijaya Bank in 1988. The
key differentiator then was that Vijaya Bank allowed customers to withdraw
cash from their branches. The eligibility of getting a credit card was entirely
based upon the income of the consumers.
In India, the credit card user base in 2019 reached 47 million and the market is
anticipated to grow at a CAGR of more than 25% during 2020-2025, on
account of rising popularity of credit cards and growing trend of purchasing
products first and paying later.

The credit card market in India is smaller when compared with its counterpart
debit card; however, the market is anticipated to witness significant growth in
the coming years. With increasing popularity of credit cards, banks are
focusing on urban and semi-urban markets in order to increase their share in
the market.

The market can be segmented based on type, service providing company, credit
score, credit limit, card type, benefits and region. Based on type, credit card
market can be bifurcated into general purpose and private label segments.
General purpose is the dominant segment in the market and the segment is
likely to continue its dominance in the coming years as well, as general purpose
credit cards can be used at a variety of stores.

banks offer a number of credit cards that come with varied features and
benefits. Some cards are made for shopping and hence they come with an
excellent rewards program while there are other cards that are loaded with
travel privileges

1. HDFC Bank

2. SBI Card

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3. American Express

4. ICICI Bank

5. Citibank

6. Axis Bank

7. Yes Bank

The Indian credit card market is a fairly crowded place with 74 players operating. The
top 5 players, however, have a comfortable 78% share by the number of cards and
75% share by credit card spend. HDFC bank is the leader at close to 28% share
followed by SBI cards at 18%, which is trailed by ICICI, Axis, and Citibank.

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 CHAPTER IV
DATA ANALYSIS AND
INTERPRETATION
4.1 Introduction

This chapter deals with data analysis and interpretation. Data had been
collected using questionnaire. Questionnaire had been distributed to the credit
card holders of Kochi metro city. Sample had been collected using convenient
sampling technique. All the 50 respondents are selected at random.
This chapter is an attempt to analyse the response of the people using
credit cards for their financial needs on the basis of services provided by
different banks. This study also helps to find out the satisfaction level of credit
card holders.
Here the percentage analysis is used to conduct the study and to arrive
into a conclusion.

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Table 4.1: Showing age wise classification

Age Frequency Percentage

Below 30 years 04 8%

30- 35 years 12 24%

35-40 years 24 48%

Above 40 years 10 20%

Total 50 100%
(Source : Primary data)

From the above table it clear that 8% of respondents were below 30 years, 24%
respondents were 30-35 years, 48% respondents were 35-40 years and 20%
respondents were above 40 years. So majority of the respondents were 35-40
years, because after when they enter into a family they need to pay more
money for expenses.

Figure 4.1: showing age wise classification

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Table 4.2: Table showing income of the respondents
Income No.of Respondents Percentage

Below 10,000 02 4%

10,000 - 20,000 12 24%

20,000 - 30,000 26 52%

Above 30,000 10 20%

Total 50 100%
(Source : Primary data)

From the above table it clear that income of respondents.4% respondents were
below 10,000, 24% of respondents were 10,000 – 20,000, 52% of respondents
were 20,000 – 30,000, and 20% of respondents getting above 30,000.
So majority of the respondents were getting income of 20000 – 30000 per
month.

Figure 4.2:chart showing Income of the respondents

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Table 4.3: Table showing different type of banks

Banks No.of Respondents Percentage

ICICI Bank 27 54%
HDFC Bank 10 20%
SBI Bank 09 18%
CITI Bank 04 8%
Total 50 100%
(Source : Primary data)
From the above table inferred that 54% of respondents are the credit cardholder
of ICICI Bank and 20% of respondents are the credit cardholder of HDFC
Bank and 18% of respondents are comes under SBI Bank and 8% of CITI
Bank.
The highest no of respondents are from ICICI Bank and the lowest no of
respondents are from CITI Bank. From these Table 1 we can clearly understand
that most no. of consumer prefer ICICI Bank credit cards only.

Figure 4.3:Chart showing type of bank

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Table 4.4: Table showing usage of Credit Card
Response No.of Respondents Percentage
Less than one year 06 12%
One to two year 14 28%
Two to three year 21 42%
More than three year 09 18%
Total 50 100%
(Source : Primary data)
From the above table inferred that 12% of respondents are using the credit card
for less than one year, 28% of respondents are using for one to two year, 42%
are using for Two to three year and 18% of them are using for More than three
years. The highest no of respondents are using the credit card for two to three
year and lowest no. of respondents are using for less than one years.

Figure 4.4::Chart showing usage of credit cards

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Table 4.5:Table showing No.of Credit Cards

Response No.of Respondents Percentage

One 20 40%
Two 16 32%
Three 12 24%
More than three 02 4%
Total 50 100%
(Source : Primary data)
From the above table inferred that 40% of respondents are having only one
credit card, 32% of respondents are using two credit cards, 24% are using three
and 4% of them are using More than three credit card.The highest no of
respondents are using one credit card and lowest no. of respondents are using
more than three credit card.

Figure 4.5:Chart showing no.of Credit Cards

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Table 4.6:Table showing knowledge about the credit card
Response No.of Respondents Percentage
Self mode 10 20%
Bankers approach 16 32%
Relatives 10 20%
Advertisement 14 28%
Total 50 100%
(Source : Primary data)
From the above table inferred that 20% of respondents are came to know about
their bank credit card by self mode, 32% of respondents are by Bankers
approach, 20% by relatives and 28% of them are by advertisements.
The highest no of respondents are came to know by Bankers approach and
lowest no. of respondents are by self mode and relatives. From this Table – 6
we can understand that credit card issuing banks are playing a vital role in
increasing the customers.
Figure 4.6:Chart showing knowledge about the credit
card

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Table 4.7:Table showing usage of credit card-life long
Response No.of Respondents Percentage
Yes 34 68%
No 16 32%
Total 50 100%
(Source : Primary data)

From the above table inferred that 68% of respondents are want to be a credit
cardholder for a life long, 32% of respondents are not willing to be a credit
cardholder for life long. From this Table - 7 we can understand that credit card
holders are satisfied with all its benefits, facilities and services made by the
bankers to the credit card customer.

Figure 4.7:Chart showing usage of credit card-life long

22
Table 4.8:Table showing Features of Credit Card
Response No.of Respondents Percentage
Low interest rate 08 16%
Easy to handle 20 40%
Facilities and services 12 24%
More benefit 10 20%
Total 50 100%
(Source : Primary data)
From the above table inferred that 16% of respondents are prefer their bank
credit card for low interest rate, 40% of respondents are by easy to handle, 24%
by facilities and services and 20% of respondents are by getting more benefits
by using the credit cards. The highest no of respondents are prefer their bank
credit card for easy to handle and lowest no. of respondents are by low interest
rate. From this Table-8 we can understand that credit cards are mainly used by
the customer for easy to handle.

Figure 4.8:Chart showing Features of Credit Cards

23
Table 4.9:Table showing Importance of Credit Card
Response No.of Respondents Percentage
Strongly agree 18 36%
Agree 22 44%
Disagree 08 16%
Strongly disagree 02 4%
Total 50 100%
(Source : Primary data)
From the above table inferred that 36% of respondents are strongly agree that
the usage of the credit card is more important, 44% are agree, 8% are disagree
and 4% are strongly disagree . The highest no of respondents are agreed the
usage of credit card is more important and lowest no. of respondents are
strongly disagreed.

Figure 4.9:Chart showing Importance of Credit Card

24
Table 4.10:Table showing Security of credit cards
Response No.of Respondents Percentage
Strongly agree 16 32%
Agree 22 44%
Disagree 10 20%
Strongly disagree 02 4%
Total 50 100%
(Source : Primary data)
From the above table inferred that 32% of respondents are Strongly Agree that
the credit card issued by their bank gives more security, 44% of respondents
are Agree, 20% are Disagree and 4% of respondents are Strongly Disagree.The
highest no of respondents are Agree and lowest no. of respondents are Strongly
Disagree. From this Table – 10 we can understand that credit card issuing
banks gives more security to the credit card holders and their cards.

Figure 4.10:Chart showing Security of credit cards

25
Table 4.11:Table showing Respond to customer
Response No.of Respondents Percentage
Strongly agree 14 28%
Agree 18 36%
Disagree 14 28%
Strongly disagree 04 8%
Total 50 100%
(Source : Primary data)
From the above table inferred that 28% of respondents are Strongly agree that
their banks customer care are personally respond at all time, 36% of
respondents are agree, 28% are disagree and 8% are Strongly Disagree. The
highest no of respondents are Agree that their banks are personally respond at
all time and lowest no. of respondents are Strongly Disagree. From this Table -
11 we can understand that credit card issued banks are personally responding
their customer at all time to fulfill their satisfaction regarding their bank.

Figure 4.11:Chart showing Respond to customer

26
Table 4.12:Table showing Risk coverage
Response No.of Respondents Percentage
Strongly agree 16 32%
Agree 28 56%
Disagree 06 12%
Strongly disagree 00 -
Total 50 100%
(Source : Primary data)
From the above table inferred that 32% of respondents are strongly Agree that
credit cards will covers the risk,56% of respondents are agreed and 12% of
respondents are Disagree. The highest no of respondents are agree and lowest
no. of respondents are Strongly Disagree.

Figure 4.12:Chart showing Risk coverage

27
Table 4.13:Table showing Offers to credit card holder
Response No.of Respondents Percentage
Strongly agree 06 12%
Agree 20 40%
Disagree 18 36%
Strongly disagree 04 8%
Total 50 100%
(Source : Primary data)
From the above table inferred that 12% of respondents are Strongly Agree that
their bank offer the credit cardholder an existing range of prizes, special range
of discounts and privileges, 40% of respondents are agree,36% of respondents
are Disagree and 8% of respondents are Strongly Disagree. The highest no of
respondents are Agree and lowest no. of respondents are Strongly Disagree.
From this Table – 13 we can understand that credit card issuing banks are
mostly offer an existing prizes to stable in the market and to lead between the
competitors.

Figure 4.13: Chart showing Offers to credit card holder

28
Table 4.14Table showing Personal Expenses
Response No.of Respondents Percentage
Strongly agree 10 20%
Agree 24 48%
Disagree 12 24%
Strongly disagree 04 8%
Total 50 100%
(Source : Primary data)
From the above table inferred that 20% of respondents are Strongly Agree that
their banks are accepted to pay for personal expenses, 48% of respondents are
Agree, 24% are Disagree that most of the bank will not pay their personal
expenses upto certain limits of cash and 8% of respondents are Strongly
Disagree. The highest no of respondents are Agree and lowest no. of
respondents are Strongly Disagree. From this Table - 14 we can understand that
credit card banks are accepting to pay for personal expenses and they deeply
enters into the customers preference on credit card and make them satisfaction.

Figures 4.14: Chart showing Personal Expenses

29
Table 4.15:Table showing Proper record to credit cardholder
Response No.of Respondents Percentage
Strongly agree 08 16%
Agree 22 44%
Disagree 16 32%
Strongly disagree 04 8%
Total 50 100%
(Source : Primary data)
From the above table inferred that 16% of respondents are Strongly Agree that
the banks gives the proper records of the credit card, credit rate calculations
that are made, 44% of respondents are Agree, 32% are Disagree and 8% of
them are Strongly Disagree. The highest no of respondents are Agree and
lowest no. of respondents are Strongly Disagree. From this Table-15 we can
understand that credit card banks are issuing proper records of calculations to
the card holders.

Figure 4.15:Chart showing Proper record to credit cardholder

30
Table 4.16:Table showing Interest Charges
Response No.of Respondents Percentage
Strongly agree 06 12%
Agree 14 28%
Disagree 22 44%
Strongly disagree 08 16%
Total 50 100%
(Source : Primary data)
From the above table inferred that 12% of respondents are Strongly Agree that
their bank credit card charges more interest than other banks, 28% of
respondent are Agree, 44% are Disagree that their banks are not charging more
interest than other banks, and 16% of them are Strongly Disagree. The highest
no of respondents are Disagree and lowest no. of respondents are Strongly
Agree. From this Table – 17 we can clearly understand that their credit card
issuing banks are not charging more interest than other bank.

Figure 4.16:Chart showing Interest Charges

31
Table 4.17:Table showing Credit card in business
Response No.of Respondents Percentage
Strongly agree 14 28%
Agree 26 52%
Disagree 08 16%
Strongly disagree 02 4%
Total 50 100%
(Source : Primary data)
From the above table inferred that 28% of respondents are Strongly Agree that
their bank credit cards are more useful for their business than other banks, 52%
of respondent are Agree, 16% are Disagree that their banks are not more useful
for their business and 4% of them are Strongly Disagree. The highest no of
respondents are Agree and lowest no. of respondents are Strongly Disagree.
From this Table – 18 we can clearly understand that their credit card issuing
banks are more useful for their business transactions.

Figure 4.17:Chart showing Credit card in business

32
Table 4.18:Table showing drawbacks of credit cards
Response No.of Respondents Percentage
Strongly agree 22 44%
Agree 18 32%
Disagree 08 16%
Strongly disagree 02 4%
Total 50 100%
(Source : Primary data)
From the above table inferred that 44% of respondents are Strongly Agree that
there are more drawbacks in other bank credit cards, 32% of respondent are
Agree, 16% are Disagree that there are not more drawbacks in their bank credit
card and 4% of them are Strongly Disagree. The highest no of respondents are
Strongly Agree and lowest no. of respondents are Strongly Disagree. From this
Table – 19 we can clearly understand that their bank credit cards are less
drawbacks than other bank credit cards.

Figure 4.18:Chart showing drawbacks of credit cards

33
Table 4.19:Table showing Quick processing of credit cards
Response No.of Respondents Percentage
Strongly agree 12 24%
Agree 24 48%
Disagree 12 24%
Strongly disagree 02 4%
Total 50 100%
(Source : Primary data)
From the above table inferred that 24% of respondents are Strongly Agree that
the process of their bank credit card can be done very quickly than other bank,
48% of respondent are Agree, 24% are Disagree that the process of credit card
cannot be done very quickly and 4% of them are Strongly Disagree. The
highest no of respondents are Agree and lowest no. of respondents are Strongly
Disagree. From this Table – 20 we can clearly understand that their bank credit
cards process can be done very quickly.

Figure 4.19:Chart showing Quick processing of credit cards

34
Table 4.20:Table showing advance facilities by bank
Response No.of Respondents Percentage
Yes 36 72%
No 14 28%
Total 50 100%
(Source : Primary data)
From the above table inferred that 72% of respondents will change their credit
card if other banks offers advance facilities,28% of respondents will not change
their bank credit card due to satisfied and their bank brand name.

Figure 4.20:Chart showing advance facilities by bank

35
Table 4.21:Table showing rating of credit card
Response No.of Respondents Percentage
Highly satisfied 14 28%
Satisfied 28 58%
Dissatisfied 06 12%
Highly dissatisfied 02 4%
Total 50 100%
(Source : Primary data)
From the above table inferred that 28% of respondents are rate Highly satisfied
to their bank credit card with the bank performance, process and facilities
provided by their bank, 58% of respondents are rate Satisfied, 12% of
respondents are Dissatisfied on their facilities, features and process of their
bank credit card, 4% of them rate Highly Dissatisfied. The highest no of
respondents rate Satisfied and lowest no. of respondents rate Highly
Dissatisfied.

Figure 4.21: Chart showing rating of credit card

36
 CHAPTER V
FINDINGS, SUGGESTIONS AND
CONCLUSION
5.1 Findings

1. We find that 48% of respondents age were 35-40 years.

2. We find that majority of respondents were getting income of 20000-30000
per month.
3. Majority of respondents prefer the credit card of ICICI Bank.
4. Some respondents have been using the credit card for a period of two to
three years.
5. 40% of respondents were using only one credit card.
6. 32% have came to know about their bank credit card by Bankers Approach.
7. Majority of the respondents are want to be a credit cardholder for life long.
8. 40% are prefer their bank credit card for the reason of Easy to Handle.
9. some of respondents agreed that the usage of credit card is more important.
10. 44% of respondents are agreed that their bank credit card gives more
security to the credit card holders.
11. some are agreed that their bank customer care personally respond at all
times.
12. Majority of respondents are strongly agreed that their credit card will
covers the risk.
13. 48% are agreed that their bank credit cards are accepted to pay for personal
expenses.
14. 44% of respondents are agreed that their banks gives the proper records of
the credit card, credit rate calculations that are made.
15. 40% of respondents are agreed their bank provides Discount facilities for
more no of expenses than other bank.
16. Majority of the respondents will change their credit card if other banks
offers advance facilities.
17. Majority of respondents are rate their bank credit card as Satisfied.

37
5.2 Suggestions

 Better customer care support should be provided to the customers for a

life long usage of credit cards.
 Provide advance facilities to the credit card holders to keep the customers
from changing their bank.
 Give discounts to customers those who maintain their credit level.
 Give proper records and statements of the credit account to the
customers to increase the knowledge of customer about the credit
policies.
 Ensure steps to reduce the attempts of fraud and also to increase
confidence among customers.
 Proper education should be given to senior citizen about the usage of
credit card.

38
5.3 Conclusion

The study was conducted to know the perception and nature of customers
using credit cards in kochi metropolitian city.The study was based on credit
card holders of different banks.
Majority of the respondents were card holders of ICICI bank.
Customers choose their bank which provides better services and advance
facilities to the card holder. So overall the customers are satisfied with the
credit policies.

39
BIBLIOGRAPHY
JOURNALS

1. Kaynak, E., & Harcar, T. (2001). Consumer's attitudes and intentions

towards credit card usage in an advanceddeveloping country. Journal of
Financial Services Marketing, 6(1), 24.
2. Ramayah, T., Nasurdin, A. M., & Choo, L. H. (2002). Cardholder's attitude
and Bank Credit Card Usage in Malaysia.Asian Academy of Management
Journal, 7(1), 75-102.
3. Dr. Süphan NASIR,Prof. Dr. Kemal KURTULUŞ, (2006).Consumer Behavior of
Credit Card Users in an Emerging Market.
4. Barker, T., & Sekerkaya, A. (1992). Globalization of Credit Card Usage: The
Case of a Developing Economy. International Journal Of Bank Marketing, 10(6),
27-31. doi: 10.1108/02652329210017299
5. Bhattacharyay, B. (1989). Marketing Approach to Promoting Banking
Services. Vikalpa: The Journal For Decision Makers, 14(2), 35-42. doi:
10.1177/0256090919890206
6. CARGILL, T., & WENDEL, J. (1996). Bank Credit Cards: Consumer
Irrationality versus Market Forces. Journal Of Consumer Affairs, 30(2), 373-389.
doi: 10.1111/j.1745-6606.1996.tb00063.x
7. Mathews, H., & Slocum, J. (1969). Social Class and Commercial Bank Credit
Card Usage. Journal Of Marketing, 33(1), 71. doi: 10.2307/1248749

WEBSITES

1.Credit Cards used more than 30 times the Debit Card in India. Accessed on
december 22, 2020 from: http://openmarkets.in/4203/credit-debit-card
stats-india
2.Economic Times - Average credit card usage in India on the rise: CIBIL.
Accessed on december 22, 2020 from:
http://articles.economictimes.indiatimes.com/2012-08-10/news/33137593_1
_number-of-active-credit credit-card-cibil
3.Capital Mind: Card Usage and Payments In India. Accessed on december 28 ,
2 0 1 3 from:http://capitalmind.in/2011/08/charts-card
usage-and-payments-in-india/
4.(2021). Retrieved 26 March 2021, from
https://www.scribd.com/document/441422489/review-of-literature-pdf
ANNEXURE
 QUESTIONNAIRE
Questionnaire on ”STUDY ON CUSTOMER PERCEPTION TOWARDS CREDIT
CARDS WITH REFERENCE TO CARD HOLDERS IN KOCHI METRO CITY’’

Respected sir/ madam,

I am Antony Joy 3rd BBA student of management studies Christ college
(Autonomous) Irinjalakuda. As a part of my academics I am conducting a study on
the “STUDY ON CUSTOMER PERCEPTION TOWARDS CREDIT CARDS ”. I
kindly request you to spend some of your valuable time and fill the questionnaire. I
assure you that the data provided will be highly confidential and for academic purpose
only.

Thanking you.

Name:-

Gender:- Male Female

Age:- 15-25 26-35 36-45 Above 45

Occupation:- Student Profession

Business Others

Monthly salary:- Below 20000 20000-40000

40000-50000 Above 50000

1) Are you a credit card holder?

Yes No

2)How long have you been using credit cards?

Less than 1 year 1-2 years

2-3 years More than 3 years

3)Name the bank of credit card which you are using?

ICICI bank HDFC bank

SBI bank CITI bank

4) How many credit cards are u having?

One Two

Three More than three

5) How did you came to know about this bank credit card ?

Self mode Bankers approach

Relatives Advertisement

6) Do you want to be a credit card holder for life long ?

Yes No

7) Why do you prefer this bank credit card ?

Low interest rate Easy to handle

More facilities and services are provided More benefits to customer

8) The usage of credit card is more important

Strongly Agree Agree

Disagree Strongly Disagree

9) Does credit card issued by your bank gives more security?

Strongly Agree Agree

Disagree Strongly Disagree

10) Does the customer care personally respond you at all times?

Strongly Agree Agree

Disagree Strongly Disagree

11) Credit cards will covers the risk

Strongly Agree Agree

Disagree Strongly Disagree

12)Is it your bank offers the credit holders an exiting range of prizes , special
discounts and privileges?

Strongly Agree Agree

Disagree Strongly Disagree

13)Is your bank credit cards are accepted to pay for personal expenses?

Strongly Agree Agree

Disagree Strongly Disagree

14)Does your bank gives the proper records of the credit card, credit rate
calculations that are made ?

Strongly Agree Agree

Disagree Strongly Disagree

15)Interest charges provide by your bank credit card is more higher than other
bank.

Strongly Agree Agree

Disagree Strongly Disagree

16) Is your credit card is more useful for your business than other bank credit card?

Strongly Agree Agree

Disagree Strongly Disagree

17) There are more drawbacks in other bank credit card than your bank credit card.

Strongly Agree Agree

Disagree Strongly Disagree

18) Is the process of your credit card can be done very quickly than other bank?

Strongly Agree Agree

Disagree Strongly Disagree

19) will u change if the advance facilities are offered by other bank?

Yes No

20) How would you rate your bank credit card?

Highly satisfied Satisfied

Dissatisfied Highly Dissatisfied