ASSIGNMENT ON

CONSUMER
BEHAVIOR

Name of the student: SANDEEP PATEL

Enrollment no: 18BSPDD01C0173
Discuss the potential trends in buyer behavior in the credit card market
over the next five years in India. Identify companies in this sector which
are of responding well to the trends in India and make recommendations
how these company can update the way it engages with current and
potential customers in better ways.
ANSWER-

Credit card is a tool for consumers to benefit from prestige, short term cash credit, not needed
to carry money, opportunity for instalment shopping and late payment advantage. The credit
card industry has been making strides in recent years. It is a modern payment which is
important tool for producers and sellers in order to exist in the market and to maintain their
strength in today’s intense competitive environment. Issuers continue to take steps in
launching more cards with better benefits. Cardholders are enjoying more choices when it
comes to design. Retailers have been offering more branded cards. The market shows
significant innovation. Rewards programs of all kinds proliferation, new digital account
servicing tools help consumers manage purchase debt and account security and new providers
are entering this and adjacent markets with new products. The dynamic change and emphasis
from transactions to a deeper customer focus had been significant to the transformation to the
brand. The percentage of consumers receiving a credit card offer rose at a huge rate over the
last year suggesting that card marketers are making efforts to either reach new demographics
or under served segments. College students have grown up in the age of credit, becoming
independent consumers earlier in life and constantly exposed to new products and services
available through credit cards. The senior citizen market has also captured the attention of
credit card markets due to its impressive size and buying power.

American Express has the biggest potential to be the most powerful in the future. Companies
are exploring the use of American Express to predict and influence buying behavior. Over the
years American Express card has been able to make significant strides in the area of
encouraging the usage of credit cards through improving customer service, customer
experience and most importantly helping customer to achieve their desire. American Express
has used effective way in shifting customers attitude to its card usage is through improved
customer service delivery. The American Express has been able to take various proactive
initiatives when it comes to managing its internal and external marketing environment.
Company believes in going all length to serve a customer.

Some of the companies responding well to the growing trend include HDFC Bank, ICICI
Bank, SBI etc.

 First trend is concept of multi function card where the card have the ability to give
the holder access to multiple accounts on a single card.
 Increasing reliant on non card forms of disbursement
 Contactless card is also a trend shaping the future of credit cards- this type will allow
customer to wave or trap a card instead of swiping it.
 Increase sign up bonuses – once customers spend a certain amount of money it is to
increase signup bonuses on their business credit cards.
This can be made better by developing new trends over the coming years with the increase in
customer buying behaviour.

 More brands will launch their own cards.- Retailers often view a branded card as a
way to capitalize on customer loyalty if rewards are generous enough then customers
are happy to sign up.
 Premium cards will offer even more luxary benefits with creative plans- Premium
cardholders have come to expect perks.
 Issuers will focus on long term customer loyalty- Signup bonuses can be attractive to
customers but expensive for card issuers. Customers can go for other products also if
they stay for long term.
 Increase sign up bonuses – once customers spend a certain amount of money it is to
increase signup bonuses on their business credit cards.
 Credit card will come in more shape and size- Card issuers will likely to continue to
play with different colors and even shapes to catch consumer’s attention.