Abstract / Excerpt:

The research is aimed to study the business of credit cards, in general motive of credit card selection, factors having impact on decision making on credit card selection, behavior of credit card users, the need in credit card usage of people in Bangkok as well as suitable service model of credit cards. The researcher conducted the survey from 400 people living in Bangkok area and drew the data to do statistical analysis. The hypothesis testing was done to determine the significant factors that will comprise the characteristics of a service credit card model. Specifically, the results showed that the primary reason for credit card holders for choosing a particular credit card is one that offers highest discount despite the fact that compared to basic credit card transactions, there are only very few purchases made in a month's time for credit card holders in Thailand. Credit card holders also normally pay through the banks, and usually pay on time to avoid penalties and surcharges. The best advertisement is still the word-of-mouth to avoid, thus credit companies should be able to harness this method in their promotion strategy. People use credit cards because of convenience in debt payment, rewards points and highest credit limit grant. The purpose of credit card use is to buy consumer products, to purchase discounted goods and services especially to pay for food. Using factor analysis, the service model for credit cards should consider pricing, privilege, utility, social aspects, and performance factors. Pricing has the greatest weight among reasons for choosing a credit card. Based on factor analysis, credit limits, fee, special discounts, special privileges, appropriate payment, convenient payment, minimum payment, privileges, invitation and necessities are the variables that define pricing for a credit card. Privilege, prestige and power are behavioral motivators among credit card holders and in the case of Thailand, these hold a tremendous influence on consumer market on their decision to have a credit card. The implications of the utility factor hold a great deal of importance to credit card holders also since that the value of product purchased on credit is considered gain and therefore, worth the price. With regard to purpose, credit card holders want to have their cards reach new levels of performance. To satisfy performance standards, credit card companies must ensure that credit card holders meet or exceed ambitious performance targets that are normally measured in terms of ceiling amounts, modes of payment, and credit limit. The study recommends that financial institutions issuing credit cards should into pricing, privilege, utility, social status and performance as fundamental components of a new service model for credit cards to increase competitiveness in the market.

Info

Source Institution	Ateneo de Davao University
Unit	Business and Governance
Authors	Sukumoijuntra, Samathapol
Page Count	123
Place of Publication	Davao City
Original Publication Date	March 1, 2007
Tags	Credit Cards. Consumer Credit, Dissertations

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