Introduction:

TOPIC OF DISCUSSION
Credit cards, which are a hybrid of a payment card and a personal credit card,The areCentral
widely Bank,
used all over the world. Franklin National Bank in New York, USA, provided the first-ever
headquartered in
credit card based on a relationship between merchants and consumers, as well as a
Coimbatore, has some
requirement to buy first and pay later. Consumer attitudes about credit cards400,000
as a generic
users of its
commodity and/or consumers' perceptions and preferences of credit cards relative to other
credit card scattered
types of revolving credit have been the focus of static studies on credit card choice and the state.
throughout
usage to date. More specifically, there are no studies reported that offer guidelines to the forms
The application
managers of credit card issuing companies on how different group of consumers make
for the theircard
credit
credit card choice decisions among several available alternative brands. The aims to analyse
require the usual
the demographic, socio-economic and banking-specific determinants that influence the such as
information
choice of credit card by bank customers. Studies of consumer behavior on credit name,cards have phone,
address,
mainly focused on the decisive role of individual demographic characteristics,income,
credit card
education, and
attributes and personal perception about credit cards. so on. The bank is
interested in
determining if there is
any relationship
between the uses of the
card and the
socioeconomic
characteristics of the
user; e.g., is there a
difference in the
characteristics of those
people who use the
credit card for major

MARKETING RESEARCH
purchase only (e.g;
appliances) and those
Submitted by: who use it for minor as
well as major
Sarvmeet Singh Chabbra 114/2021

Submitted to:
REPORT
Objectives: Pallavi Malik 118/2021
purchases? Develop a
research Project to
address this problem.
1. To evaluate whether socio- economic factor affect credit card usage.
Abhijeet Ganguly 135/2021
Focus on the kind of
2. ToJoshi
Dr. Gaurav determine the distinction between individuals who use their credit card just for
research designs you
Aayush
significant purchases and those who use it for both Shukla
minor 136/2021
and major purchases.
would use, why you
would use them, and
how you would conduct
 Introduction:
Credit cards, which are a hybrid of a payment card and a personal credit card, are widely
used all over the world. Franklin National Bank in New York, USA, provided the first-ever
credit card based on a relationship between merchants and consumers, as well as a
requirement to buy first and pay later. Consumer attitudes about credit cards as a generic
commodity and/or consumers' perceptions and preferences of credit cards relative to other
types of revolving credit have been the focus of static studies on credit card choice and
usage to date. More specifically, there are no studies reported that offer guidelines to the
managers of credit card issuing companies on how different group of consumers make their
credit card choice decisions among several available alternative brands. The aims to analyse
the demographic, socio-economic and banking-specific determinants that influence the
choice of credit card by bank customers. Studies of consumer behaviour on credit cards
have mainly focused on the decisive role of individual demographic characteristics, credit
card attributes and personal perception about credit cards.

Objectives:
1. To evaluate whether socio- economic factor affect credit card usage.
2. To determine the distinction between individuals who use their credit card just for
significant purchases and those who use it for both minor and major purchases.

Marketing Research Problem:

1. Clustering of survey participants for the purpose of segmentation
2. Presence of authentic secondary data for conducting this survey
 Literature review:

Credit card possession and other payment systems: Use patterns among Asian and
Hispanic Consumers by Nejdet Delener and Herbert Katzenstein
Understanding the idiosyncratic attribute structure that characterises each payment system,
as well as the relationship between that structure and preference and usage of these
exchange media, should help marketers develop more effective marketing strategies while
also allowing academics to build more precise scenarios of payment systems functioning in
purchase processes. In the long run, marketers should consider adding bank card-style
features to their cards, such as tie-ins to other shops' discounts depending on balances and
the offer of premium cards, to give these customers a reason to prefer proprietary cards
over other forms of payment. Because interest is charged from the date of the cash advance
transaction, rather than 25 to 30 days after the date of an item purchase, cash advances are
more profitable for credit card issuers than merchandise sales. Sweepstakes, interest-free
periods, and cardholder incentives are among the short-term strategies used by marketers
to encourage Asian and Hispanic customers to use their cards. The rising adoption of credit
cards in Asian and Hispanic markets indicates the overall payments industry's future growth
potential. Issuers have been looking for new ways to extract more transactions out of the
same card base because practically everyone who qualifies has a credit card.

Do credit card redemption reward programs work in China? An empirical study

by Matthew Tingchi Liu

There is a link between knowing about a reward programme and the possibility of collecting
points, evidence of a good attitude toward point-based incentive systems, and thinking that
the value of a redeemed gift is relevant, according to the discussions. Participants were
quizzed on a variety of topics, including length of card use, average usage rates, incentive
scheme awareness, and point redemption. There is a strong link between redemption rates
and reward programme awareness, credit card usage, and attitudes toward the
programmes' rewards. Low redemption rates among Chinese credit card users are generally
due to a lack of awareness of the schemes and/or redemption procedures, according to the
report. The rate of redemption increased surprisingly when the card was held for a shorter
period of time, leading to speculation that banks may intentionally target newer users to
emphasise card perks in order to drive greater usage. Nearly half of those who did not
redeem their points claimed a lack of understanding of the redemption process, while not
earning enough points and ignorance of the incentive programme were other reasons
offered.
 Malaysian consumers’ credit card usage behavior by Zafar U. Ahmed, Ishak Ismail, M.
Sadiq Sohail, Ibrahim Tabsh and Hasbalaila Alias.

While this analysis revealed support for some of the theoretical expectations and some of
the earlier deviations described in the literature, it also has some limitations. Study
appeared that only the dimension of life style influenced attitude, whereas other
components such as self-esteem, time consciousness, peer group pressure, advertisement
exposure, and gregariousness did not. The data for this study came from only one city,
Penang, which is dominated by Chinese consumers, whereas our sample size was largely
Malay consumers, limiting the generalizability of the findings to the entire Malaysian
market. It's possible that the lack of effect of self-esteem on attitude is due to the fact that
credit cards are no longer considered a status symbol. Based on a review of the literature, a
model was created to determine the elements that influence customers' attitudes regarding
credit card spending. This work investigates the elements that are thought to influence
attitudes about credit card spending and the creation of credit card debt attitudes. Another
key conclusion of this study is that, surprisingly, self-esteem had no effect on attitude
formation.

Multidimensional credit attitude and credit card debt behaviour in the United States by
Jae Min Lee and Yoon G. Lee

Despite the fact that the study used pooled logistic regression models for multiple cross-
sectional datasets and included the time fixed effect, future studies that use longitudinal
data or a randomised experimental design could better handle potential endogeneity issues
in credit attitudes and credit card debt behaviour, as well as explore within-group variations
that could change over time. The results of the logistic regression analyses revealed that
households with more favourable attitudes toward credit use tended to have an
outstanding credit card balance and irregular payment practises, regardless of the wants
and needs indices, whereas only the wants index had a statistically significant effect on the
likelihood of paying a revolving charge. This study provides a multidimensional structure of
credit attitudes, which can be utilised to analyse credit card debt burden management,
credit card mismanagement, and approaches to improve present credit behaviour. By
identifying fundamental aspects of consumer credit attitude and presenting empirical
evidence of their dynamics in credit card debt behaviours, our findings add to the corpus of
literature on consumer credit use. Across all three-credit card debt payment behaviours,
Blacks and Hispanics were more likely than Whites to encounter debt payment troubles,
while Asians and others were less likely to experience the first two problems with credit
card payments. This study generated and tested composite credit attitude indices, wants
and needs, to discuss credit card debt behaviour, using the six credit attitude variables from
the Survey of Consumer Finances. Consumer intervention strategies at both the individual
and social levels can help people engage in responsible financial habits like credit utilisation
and repayment. Our findings reveal that, in addition to credit attitude variables, socio-
demographic parameters are linked to credit card debt behaviours. Even though a
methodological rationale for the credit attitude elements and indices was provided, an
alternative or similar credit attitude measurement can be constructed with more or fewer
variables.

Do education sector credit cards differ with other credit cards in Malaysia?
By Md. Mahmudul Alam and Yusnidah Binti Ibrahim

Only two qualities of education credit cards are statistically substantially different from
other types of credit cards in Malaysia, according to the current study, which analysed 13
elements of education credit cards. If the attributes of this card are notably different from
those of other types of cards, targeted customers will be more likely to subscribe, and credit
card companies will be able to expand their market as a result. Business managers should
design better features for education sector credit cards to appeal to a wider spectrum of
academics, students, and non-academic workers, according to this study. Customers must
be aware of the many credit card features and how to use them wisely in order to avoid
being caught off guard by issues such as debt arrears, charges, and other expenses.

Plastic card circumvention an infirmity of authenticity and authorization by Vipin

Khattri, Sandeep Kumar Nayak and Deepak Kumar Singh.

The effect of the multifactor authentication technique was closely examined in order to
determine its level of fraud prevention and status during online transactions, as well as
other types of categorised and best-fit fraud detection techniques. Machine learning and
deep learning will be the futuristic approach to resolving the observed issues in a concrete
manner in order to achieve accuracy during online transactions, as well as studied human
behaviour and activity patterns. Security threats and frauds are becoming challenges to be
tackled in the contemporary digital environment for the benefit of users and online service
providers.

The relationship between credit card attributes and the demographic characteristics of
card users in China by Christopher E.C. Gan, David A. Cohen, Baiding Hu, Minh Chau Tran
and Weikang Dong and Annie Wang

The impact of age and the number of family members on credit card choice suggests that
China's credit card consumption trend is being driven by the younger generation and a shift in
family patterns from traditional (i.e. three generations living together) to three-person
households (parents with a single child). These youth-driven trends present banks with an
opportunity to expand their credit card offerings. Our findings also show that the number of
credit cards held, the length of time a credit card has been maintained, the monthly credit card
purchasing volume, and having a bachelor's degree are all significantly and positively
connected to different credit limit levels. To summarise, banks and credit card firms should
explore making it easier for consumers to use their credit cards in order to attract more
customers. Furthermore, banks may improve credit card reward programmes to make them
more efficient and appealing to users, as well as raise the value of rewards earned through
card use. Furthermore, young Chinese customers should be encouraged to save, as savings
volume is a component of credit worthiness and thus a factor that increases the likelihood of a
credit card application being accepted. In terms of cardholder demographic variables, we
discovered a negative association between a respondent's desire to hold a credit card and their
marital status as a single person. Furthermore, our findings add to the growing body of
evidence showing other demographic characteristics including younger age and living in a
three-person household have a significant and beneficial impact on a respondent's decision to
keep a credit card. Furthermore, young credit card users would benefit from training in
personal financial management and smart consumption to help them avoid debt traps and
improve their bank connections. Consumers are concerned about convenience, interest rates,
rewards programmes, credit limits, and the level of difficulty in applying for a card when
deciding to use credit, according to our results. A consumer with a high level of education, a
better employment position, larger monthly expenditure, and many credit cards, for example,
is more likely to receive a higher credit limit. Our findings could help banks gain a better
knowledge of the characteristics of credit card holders that influence their credit limit
selection.

Psychological determinants of consumer credit: the role of attitudes by Francesco Pattarin

and Stefano Cosma

The study's principal finding is that the concept that psychological profiles may influence
credit behaviour in households cannot be dismissed. While attitudes and other
psychological elements are admittedly difficult to assess in survey-based studies due to their
complexity, the topic is worth investigating further because these factors help to define
customers' preferences and decision-making frameworks. In affecting the outcome of credit
decisions, they also turn out to be complementary to predicted income. As a result,
including them into models based on economic rationality is a viable research direction.

Cashlessness and scalable multi-pay practices: Capturing the everyday financial

transactions in local contexts

This research, based on how people utilise and order different payment methods in their
daily financial transactions for goods and services. In this three cases were there which
helps us to understand family dynamics with respect to finance and consumption. It
investigates how trust, economic and social values, demographic disparities, and scalable
multi-pay practises influence payment system ordering and usage in ordinary local settings.

Unrealistic optimism in consumer credit card adoption

It's critical for financial services marketers to understand how consumers' mental budgeting
effects buying decisions.We look at how people adopt credit cards when they are too
positive about their future use of the card. The two empirical investigations we undertook
to evaluate these hypotheses offered data to back up our claims. Our findings provide an
alternate explanation for the long-debated issue of credit card interest rate stickiness, and
they have substantial policy implications for policymakers.

Bank credit card usage behavior of individuals; are credit cards considered as status symbols or are
they really threats to consumers budgets? A field study from Eskisehir, Turkey

By - Celil Koparal and Nuri Calık

INTRODUCTION - The "Diners Club" credit card, which was offered to customers of "Service-Tourist
Inc. SETUR", was the first credit card introduced in Turkey. In 1968, after receiving authorisation
from 28 Diners Club to issue cards for domestic use, which is a subsidiary of Koc Goup.

RESEARCH METHODOLOGY - Non-parametric biraviate analysis in terms of Chi-Square test is applied

to test the hypotheses formulated in this respect.

SUMMARY - The purpose of this study is to learn about consumers "bank credit card usage habits,"
excluding shop and other loyalty cards. A survey is administered to 916 respondents chosen using
stratified sampling, of whom 880 are deemed to be appropriate for analysis; Eskisehir is a Turkish
city with a population of 700.000 people. The respondents must answer 45 questions, the first eight
of which are descriptive on a nominal scale and the last five of which are related to the respondents
demographic attributes. The remaining 32 statements are supposed to reflect these people's credit
card usage habits.

Customers credit card selection criteria in perspective of an emerging market

By - Babar Zaheer Butt, Kashif Ur Rehman, M. Iqbal Saif and Nadeem Safwan

INTRODUCTION - For the last few years, the share of consumer financing in overall banking financing
has increased quite substantially in Pakistan. Credit card is one of the most rapidly growing areas of
consumer financing and aggressively marketed by the banks.

RESEARCH METHODOLGY – The Independent Sample t-test and ANOVA were used to analyse the
data find out whether there are any notable differences between the various groups in terms of
their demographics of responses. Gender, age, income, and education are all factors to consider.

SUMMARY - Large acceptance in Pakistan, enhanced credit limit, instalment facility, and large
acceptance abroad are the most important factors, and status symbol is the least important factor of
the credit card selection criteria. These findings also point to a shift in client perceptions and
progress toward marketing growth and stability in Pakistan.Though cardholders are concerned about
the credit card's prestige, security, and cost-effective characteristics, they are more concerned with
the instrument's operation ability and acceptability. They are willing to give priority to credit cards
that can be used in a variety of ways.
Determinants of consumers intention to use credit card: a perspective of multifaceted perceived
risk

By – Hoang Nam Trinh, Duc Hoang Quan Vuong, Hong Ha Tran

INTRODUCTION - The goal of this research is to combine the technology acceptance model (TAM)
and the theory of perceived risk to create a theoretical model for consumer behavioural intention
that can be tested on the real world. In Vietnam, credit cards are designed to be used.

RESEARCH METHODOLOGY - The factor structure of the measuring items was validated using
exploratory and confirmatory factor analyses, while structural equation modelling was employed to
validate the suggested model and test the hypotheses.

SUMMARY - Perceived risk, perceived usefulness, social influence, and perceived ease of use were all
important drivers of customer intention to use a credit card, according to the results of structural
equation modelling. Only perceived risk, which was composed of psychological, financial,
performance, privacy, time, social, and security risk, prevented the intended usage of a credit card.

An Empirical Investigation of US Credit Card Users: Card Choice and Usage Behavior

By - Ali Kara,Erdener Kaynak, Orsay Kucukemiroglu

INTRODUCTION - Commercial banks of all sizes in the banking market must stay aware to ever-
changing environmental elements and be prepared to re-formulate appropriate marketing plans and
strategies to meet the needs of the changing banking marketplace.

RESEARCH METHODOLOGY - A stratified method was used.

SUMMARY - This study is to look at how people choose and use credit cards in their homes. The
credit card choosing behaviour was studied using a conjoint model, which implies utility
maximisation and rational appraisal of the available credit card alternatives. The research also looks
into the impact of credit card attitudes and behaviours on credit card usage. The identification of
four distinct types of credit card users necessitates the development and implementation of several
target market strategies by credit card issuers. The study's findings have significant managerial and
public policy implications for decision-makers at banks, financial institutions, and other credit card
issuing companies.

Consumer behaviour in the credit card market: a banking case study

By - Manuela Pulina
INTRODUCTION - Credit cards have grown increasingly available to households over the last three
decades as credit card providers have provided credit to clients. This payment system was created in
response to the demand for a more flexible payment system for an ever-increasingly mobile
population, as well as a readily available form of credit that appealed to American customers (VISA,
2003).

RESEARCH METHODOLOGY - The empirical analysis is based upon an ML framework. The aim is to
directly model the probability of choosing a specific type of credit card, whether classic, gold or
revolving.

SUMMARY - This study looked at the demographic, socioeconomic, and banking-specific factors that
influence credit card selection. The model includes a set of explanatory factors as well as the kind of
credit cards as a dependent variable. The empirical findings gave valuable insight into the card
payment system's structural characteristics, as well as a microeconomics viewpoint on customer
behaviour and preferences. Women, the elderly, inhabitants of central Italy, and holders of
secondary cards are all more likely to obtain a classic card. Older consumers prefer gold cards,
however younger customers are more likely to choose a revolving card, which is also preferred by
inhabitants in the northeast.

Factors Driving the credit card ownership in Italy (2016)

-Alessandra Amendola and Luca Sensini

The study investigated the primary drivers of credit card ownership by examining the elements that
may influence a credit card decision. Count data models were generated using the Bank of Italy's
2012 Survey on Household Income and Wealth as the major source in order to determine the socio-
economic, demographic, and territorial variables affecting household credit card accounts. Findings
support the significance of the variables under consideration. It was discovered that, in keeping with
the socio-economic divide between the north and south of Italy, geographic location is a key factor
of family behaviour. Age, income, and the size of the municipality, gender education and marital
status are all other factors that affect the number of credit card holder.

Demographics, attitude, personality and credit card features correlate with credit card debt: A view from China
(2010)

- Lili Wang, Wei Lu, Naresh K. Malhotra

Consumer credit card debt behaviour was observed in corelation with demographics, attitude,
personality, and credit card characteristics with the support of a commercial bank in China. Mail-in
questionnaires were provided to credit card members who were using or had utilised either
revolving credit or small instalment plans for the study. It was discovered that demographic variables
and credit card features had little explanatory power compared to attitude variables and personality
variables using regression methods. It was observed that revolving credit and petty instalment credit
usage were linked to attitudes toward credit cards, money, and debt. Risk attitude was found to be
an effective predictor of petty instalment usage, but not of revolving credit usage. Self-control, self-
esteem, self-efficacy, deferring gratification, internal locus of control, and impulsiveness were found
to be significantly correlated with revolving credit use, while sensation seeking, impulsiveness, and
deferring gratification were found to be significantly correlated with petty instalment use. It was also
discovered that some credit card characteristics might readily create a "illusion of income," which
aided consumer credit card debt behaviour.

Credit Card Usage Pattern in Ozamiz City, Philippines (2014)

-Rinngold Atienza

The study looked at the credit card usage pattern in Ozamiz City in terms of the sorts of goods
bought with credit cards and card ownership, as well as how this pattern is influenced by the user's
socioeconomic standing and debt mindset. Survey method was used. The independent t-test and
Pearson's correlation coefficient were used to evaluate the data. The research discovered that Age,
gender, marital status, educational attainment, and income level all influence the type of
commodities purchased with a credit card, but not the number of dependents or the type of
workplace organisation. Age, marital status, educational achievement, and workplace organisation
all influence credit card ownership, while gender, number of dependents, and income level do not.
Cardholders with a good attitude about credit cards were also found to be less cautious with their
credit card activities, making them more vulnerable to riskier activities than those with a negative
attitude toward debt. Overall, the data revealed that credit card usage varied depending on the
situation. The findings of this study can be used by issuing banks to improve credit and collection
regulation, as well as groups that promote financial education for consumer protection.

Coupled social media content representation for predicting individual socioeconomic status

- Tao Zhao, Lu Tang, Jinfeng Huang, Xiaoming Fu

Individual socioeconomic status (SES) was predicted using social media material, which has a variety
of applications in the economic and social areas. To infer SES, most previous studies used machine
learning approaches using specified features. Nonetheless, they overlook several critical aspects of
social media content, such as order, structure, and relationship information, resulting in poor
performance. It was proposed that a coupled social media content representation model (CORE) for
individual SES prediction that effectively harnesses latent complex couplings of social media content
in this research. CORE creates a structure-aware social media text representation approach that
takes into consideration the order and hierarchy of social media text, as well as a coupled attribute
representation method that considers intra-coupled and inter-coupled interaction relationships
among user level attributes. The trials on an actual data set from a Chinese microblogging site show
that the methodology outperforms benchmark methods by a large margin, demonstrating its
efficacy and robustness. The presented model could be used to improve SES prediction and other
tasks involving user profile.
 Role of Demographic Variables in Credit Card Selection Criteria- An Empirical Study in NCR of Delhi
(2016)

- Rashi Banerji & Rahela Farooqi

The Indian payments industry is undergoing a rapid revolution. Economic growth has enabled India's 1.2
billion people to enjoy better financial services than their predecessors. There are many electronic payment
services that consumers can use to pay, such as credit cards, debit cards, online banking, and electronic
wallets. With this increase in electronic and cashless payments, the use of credit cards is also increasing.
Credit cards provide consumers with the convenience of cashless shopping and eliminate the need to carry
cash. In addition, credit cards provide consumers with access to credit without the detailed paperwork
associated with the loan. The survey investigated the role of demographic variables in credit card eligibility
criteria. The variables were from studies by Gan, Maysami, and Koh (2008). Six factors were selected in this
survey: convenience, protection, economics, flexibility, reward programs, and reputation. The sample was
selected from the Delhi metropolitan area due to the high exposure of consumers to credit cards. Set in
emerging markets like India, this survey is related to changing consumer preferences and usage patterns. The
findings show that demographic variables Age, Academic Qualification, Marital Status, Employment Status and
Income have significant impact on credit card selection criteria.