Does knowing overcome wanting? The impact of consumer knowledge and materialism upon credit card selection with young consumers

2015 ◽  
Vol 16 (1) ◽  
pp. 50-70 ◽  
Author(s):  
Jakob Cakarnis ◽  
Steve Peter D'Alessandro
Keyword(s):  
Comparative Study ◽  
Survey Research ◽  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Consumer Knowledge ◽  
Content Type ◽  
Young Professionals ◽  
The Impact ◽  
Selection Of

Purpose – This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and knowledge on selection of the appropriate credit card. Design/methodology/approach – This study uses survey research and partial least squares to investigate credit card behaviors of students versus young professionals. Findings – In a comparative study of young professionals and students, it was found that consumer knowledge, as expected, leads to better consumer selection of credit cards. Materialism was also found to increase the motivation for more optimal consumer outcomes. For more experienced consumers, such as young professionals, it was found that despite them being more knowledgeable, they were more likely to select a credit card based on impulse. Originality/value – This paper examines how materialism may in fact encourage some consumers to make better decisions because they are more motivated to develop better knowledge. It also shows how better credit card selection may inhibit impulse purchasing.

scholarly journals Credit card cue effect

2019 ◽  
Vol 38 (2) ◽  
pp. 368-383
Author(s):  
King Yin Wong ◽  
Michael Lynn
Keyword(s):  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Well Being ◽  
Financial Security ◽  
Consumer Spending ◽  
Content Type ◽  
Moderation Effect ◽  
Show Evidence

Purpose The extant literature has mixed results regarding the credit card cue effect. Some showed that credit card cues stimulate spending, whereas others were unable to replicate the findings or found that cues discourage consumer spending. The purpose of this paper is to investigate how consumers’ sensitivity to the pain of payment affects their mental associations about credit cards and how the differences in credit card associations moderate the credit card cue effect on spending, providing a possible explanation for the mixed results in the literature. Furthermore, this paper examines the role of consumers’ perceived financial well-being, measured by their perceptions of current and future wealth and their sense of financial security, in mediating this moderation effect. Design/methodology/approach An experimental study was conducted with a sample of 337 participants to test the hypothesized model. Findings After being shown credit card cues, spendthrift participants had more spending-related thoughts and less debt-related thoughts, perceived themselves as having better financial well-being and consequently spent more than tightwad participants. Originality/value To the authors’ knowledge, this is the first study to investigate the direct link between an exposure to credit card cues and perceived financial well-being, and one of the few to show evidence of the moderating effect of consumers’ sensitivity to the pain of payment on spending when credit card cues are present. This study suggests that marketers may use credit card cues to promote consumer spending, whereas consumers, especially spendthrifts, should be aware of how credit card cues may inflate their perceived financial well-being and stimulate them to spend more.

Lending a hand: perceptions of green credit cards

2018 ◽  
Vol 36 (7) ◽  
pp. 1329-1346 ◽  
Author(s):  
Lei Huang ◽  
Julie Fitzpatrick
Keyword(s):  
Social Exchange ◽  
Undergraduate Students ◽  
Credit Card ◽  
Symbolic Interaction ◽  
Environmental Concern ◽  
Credit Cards ◽  
Medium Size ◽  
Content Type ◽  
The Usa ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of donation amount and framing on financial products, this research investigates consumers’ attitudes and behaviors toward cause-related credit cards with different donation sizes and framing types. Design/methodology/approach This research investigates consumers’ perceptions of green credit cards using two experiments with a between-subject design (n =297) and a mixed design (n =238), respectively. All the participants, recruited from a major state university in the USA, are undergraduate students who use credit cards. Findings A medium-size donation optimizes the outcome of a cause-related credit card offer. Moreover, a donation framed as cash rewards has stronger effects on a consumer’s perception and consequent reactions to the “green” credit cards than an annual percentage rate framing. Finally, consumers with high levels of environmental concern and propensity to volunteer have stronger intention to adopt and are more likely to recommend the proposed credit card. Originality/value Building upon the theories of social exchange and symbolic interaction, this research is the first to provide empirical evidence regarding the application of volunteerism and perceived consumer effectiveness for financial institutions and their cause-related marketing campaign partners in selecting suitable environmental causes.

scholarly journals The easy-money effect: credit card spending and hard-work reminders

2017 ◽  
Vol 34 (7) ◽  
pp. 541-551 ◽  
Author(s):  
King-Yin Wong ◽  
Michael Lynn
Keyword(s):  
Implicit Association Test ◽  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Association Test ◽  
Hard Work ◽  
Implicit Association ◽  
Consumer Spending ◽  
Content Type ◽  
Practical Implications

Purpose This research paper aims to examine the proposed easy-money effect of credit cards, which stimulates consumers to overspend. This paper shows how such an easy-money effect can be weakened. Design/methodology/approach In Study 1, an implicit association test was conducted with a sample of 169 participants to test the proposed credit card easy-money effect. In Study 2, experimental data were collected online from 365 participants to test the effectiveness of a hard-work reminder in weakening credit cards’ easy-money effect on consumer spending. Findings The proposed credit card easy-money effect exists, with spendthrift (ST) participants associating money with hard work less in the implicit association test after being presented with a credit card cue versus neutral cue. The results from Study 2 show that ST participants spent more on their dinner than tightwad participants when shown a credit card cue. However, this effect could be weakened when STs were also reminded of their hard work by a picture accompanied with words. Practical implications This paper suggests that credit cards’ spending-stimulating effect is due to consumers’ associations between credit cards and easy money. Based on this notion, this paper suggests conditions in which credit cards will stimulate more and less spending. Originality/value This is the first research attempt to examine the credit cards’ easy-money effect and the effectiveness of reminding consumers of their hard work to mitigate credit cards’ long-established spending-stimulating effect.

Credit cards preferences of Islamic and conventional credit card

2015 ◽  
Vol 6 (1) ◽  
pp. 72-94 ◽  
Author(s):  
Nuradli Ridzwan Shah Mohd Dali ◽  
Shumaila Yousafzai ◽  
Hanifah Abdul Hamid
Keyword(s):  
Credit Card ◽  
Descriptive Analysis ◽  
Credit Cards ◽  
The Body ◽  
Exploratory Research ◽  
Economic Activities ◽  
Content Type ◽  
Conventional Banks ◽  
Selection Factors ◽  
Selection Of

Purpose – The main aim of this paper is to identify whether certain consumers behave irrationally when it comes to select banking products. This paper builds on one of the most significant banking products that is the credit card. Design/methodology/approach – This is an exploratory research paper. Therefore, only descriptive analysis on the differences between three credit card user groups such as the Islamic credit card users, conventional card users and users who decide to use both credit cards, conventional and Islamic, were presented. Findings – The demographic and psychographic factors for the three different groups differ. In addition, there are four factors that influence the credit card selection. The factors are insurance/takaful provided by the credit issuers, cost associated with the credit card, the reward points programme offered and the convenience factors. Furthermore, the study found that three of the factors except insurance/takaful are significantly different between three credit card groups. Research limitations/implications – This paper is limited to the context of Malaysia and the respondents are mostly from the same ethnic. Therefore, it could not be generalised in the context of other countries and further studies comparing different culture or ethnic could benefit and enrich the topic of study. Practical implications – The Islamic and conventional banks could focus on several factors influencing customers’ selection and could focus to improve certain lacking areas as perceived by the consumers. The ability to increase the perceptions of the consumers regarding their credit cards will enable their products to be chosen in the market. Originality/value – There was a significant amount of literature discussed in the Islamic banking selection factors. However, little attention being paid to the selection of a specific bank’s product. This study offers a study that looks into the selection of the credit card offered by the banks in respect to the irrational behaviours of the religious consumers in economic activities as compared to the conventional economists. This paper will contribute to the body of existing literature of banking selection.

A cross-sectional examination of non-Big 4 firms’ reliability

2015 ◽  
Vol 30 (6/7) ◽  
pp. 633-656 ◽  
Author(s):  
Reginald Wilson
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Cross Sectional ◽  
Content Type ◽  
Big 4 ◽  
Within Subjects ◽  
Client Pressure ◽  
The Impact ◽  
Practical Implications ◽  
Selection Of

Purpose – The purpose of this study is to examine the impact of service-related independence impairments on perceptions of local and regional non-Big 4 Firms’ financial reporting reliability. This study is motivated by recent public policy, which proposes that service-related independence impairments may improve financial reporting reliability. Design/methodology/approach – Commercial lending officers respond to a within-subjects experiment. The variables of interest are client importance, expertise and their related interaction. These variables are regressed on the perceived reporting reliability of local and regional firms. Findings – Client importance is positively and significantly associated with the lenders’ selection of non-Big 4 firms, which supports Taylor et al.’s (2003) assertions that service-related independence violations improve financial reporting reliability. However, client importance is negatively associated with regional firms. Practical implications – Client importance is significantly associated with regional firms only, which suggests that cross-sectional differences exist among non-Big 4 firms. The negative association between regional firms and client importance confirms Goldman and Barlev’s (1974) concerns that large firms are not exempt from client pressure. Client importance is also significantly (and positively) associated with lenders’ selection of the type of non-Big 4 firm to perform the engagement, which supports recent public policy’s proposal for joint attest and non-attest services (Exposure Draft for Statement for Accounting and Review Services No. 18). Originality/value – The study overcomes within-subjects design limitations to provide a natural environment to understand lending officers’ perceptions of non-Big 4 firms. The results continue to fill the void in the literature which examines cross-sectional differences in non-Big 4 firm quality.

The relationship between credit card attributes and the demographic characteristics of card users in China

2016 ◽  
Vol 34 (7) ◽  
pp. 966-984 ◽  
Author(s):  
Christopher E.C. Gan ◽  
David A. Cohen ◽  
Baiding Hu ◽  
Minh Chau Tran ◽  
Weikang Dong ◽  
...  
Keyword(s):  
Interest Rates ◽  
Credit Card ◽  
Credit Cards ◽  
Structured Interview ◽  
Application Process ◽  
Content Type ◽  
Explanatory Variables ◽  
The Impact ◽  
The Relationship ◽  
Different Levels

Purpose The purpose of this paper is to investigate the impact that several of these factors have on a consumer’s decision to hold a credit card, as well as those involved in determining the level of credit card limit. Design/methodology/approach Potential explanatory variables were identified in the literature, then used to build a binary logit model to test the impact of the card and consumer characteristics on credit card ownership. Data were collected via a structured interview of 409 consumers living in Hebei Province, China. Findings The results indicate that convenience in use, level of credit card interest rates, the application process, number of people in the household, a rewards programme, marital status, credit limit and age influence the likelihood of the respondent holding a credit card. Further, an anaylsis shows that the number of credit cards held, duration of holding a credit card, monthly credit card purchasing volume and having a degree at the tertiary level, are significantly and positively related to different levels of credit limit. Originality/value In summary, in order to attract more consumers to credit card use, the banks and credit card companies should consider making it more convenient for consumers to use their credit cards. Moreover, banks can increase their networking and degree of cooperation with merchants to increase the acceptance of payment by credit card. The most heavily used businesses such as supermarkets and smaller retailers, where consumers purchase goods frequently, would be good targets for banks’ attention. In addition, banks might also improve credit card reward programmes to make these more efficient and perhaps increase the size of the rewards customers can earn through card use.

Research on the competitive dynamics and structured context analysis

Kybernetes ◽  
2016 ◽  
Vol 45 (10) ◽  
pp. 1542-1554
Author(s):  
Wen Pei ◽  
Jeng-Huan Li
Keyword(s):  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Competitive Dynamics ◽  
Competition Strategy ◽  
Research Model ◽  
Competitive Response ◽  
Context Analysis ◽  
Content Type ◽  
Second Stage

Purpose The credit card business has been one of the key businesses for banks in Taiwan. The purpose of this paper is to use competitive dynamics and structured context analysis (SCA) to explore the competition relationships among market, resources, and strategies concerning the credit card issued banks in Taiwan. Design/methodology/approach The market commonality and resource similarity analysis of competitive dynamics in the first stage obtained the competitive mapping of four major credit card issue banks, as well as the differences of competition strategy. In the second stage, 1,968 pieces of data on credit card news from 2013 to 2014 were collected. SCA was used to analyze the competitive action, competitive response, number of responses, response lag, and response order. Findings The competitor mapping and four hypothesis obtained from competitive dynamics correspond to the credit card competition strategy, as obtained from SCA. Originality/value This research combined competitive dynamics and SCA to analyze the credit cards market in Taiwan. The research model could be used in the other financial market.

Apprenticeships, mobility and wages an investigation on French data

2018 ◽  
Vol 39 (1) ◽  
pp. 166-186
Author(s):  
Alexandre Lene ◽  
Benoit Cart
Keyword(s):  
Design Methodology ◽  
Medium Term ◽  
Policy Makers ◽  
Content Type ◽  
Employment Trajectories ◽  
Dynamic Perspective ◽  
Selection Mechanisms ◽  
The Impact ◽  
Practical Implications ◽  
Selection Of

Purpose The purpose of this paper is to estimate the effect of mobility on the apprentices’ wages. Design/methodology/approach Using a French longitudinal survey concerned with young people’s entry into the labor market and their subsequent employment trajectories, this paper estimates the impact of mobility on post-apprenticeship wages correcting for different selection bias. Findings Mobility is both voluntary and enforced. It combines imposed selection mechanisms and more active match searching behaviors on the part of apprentices. Apprentices who change employer do not have significant lower starting wages than those who remain in their training firms. Nevertheless, in the medium term, those who defer their moves tend to benefit more from their mobility. Those who move immediately see their wage rising less sharply. Practical implications The findings indicate that policy makers should be concerned with job mobility at the end of the apprenticeship contract. Manpower policies should focus on measures that enhance the transferability of accumulated skills and the acquisition of new skills by apprentices. Originality/value To the author’ best knowledge, this is the first paper studying the effect of mobility on apprentices’ wages in a dynamic perspective and correcting for the selection of different categories of mobility (immediate vs deferred mobility).

Functional vs relational benefits: what matters most in affinity marketing?

2014 ◽  
Vol 28 (4) ◽  
pp. 265-275 ◽  
Author(s):  
Christos Koritos ◽  
Konstantinos Koronios ◽  
Vlasis Stathakopoulos
Keyword(s):  
Credit Card ◽  
Structural Equation ◽  
Design Methodology ◽  
Consumer Behaviour ◽  
Credit Cards ◽  
Equation Model ◽  
Marketing Theory ◽  
Content Type ◽  
Relational Benefits ◽  
Affinity Marketing

Purpose – The purpose of this paper is to classify and compare the importance of the benefits consumers derive from affinity credit card programmes. Design/methodology/approach – A random sample of affinity credit card holders of a major Greek athletic club (AC) was surveyed and a multi-group structural equation model was run to assess the hypothesised relationships among the study constructs. Findings – Overall, the relational benefits of affinity credit cards outperform the functional ones. However, this finding depends on the number of additional credit cards held by affinity credit card holders. Originality/value – The study is the first one to test formally the viability of a core services marketing theory (relational benefits) within the affinity marketing field as a means of explaining consumer behaviour within such a context.

Impact of supplier development on supplier’s performance

2018 ◽  
Vol 118 (6) ◽  
pp. 1192-1208 ◽  
Author(s):  
Alfred Bo Shing Lee ◽  
Felix T.S. Chan ◽  
Xiaodie Pu
Keyword(s):  
Structural Equation ◽  
Design Methodology ◽  
Equation Modeling ◽  
Supplier Development ◽  
Survey Questionnaire ◽  
Collaborative Culture ◽  
Content Type ◽  
The Impact ◽  
The Empirical Analysis ◽  
Selection Of

Purpose The purpose of this paper is to explore the impact of supplier development (SD) on supplier’s performance by sharing implicit knowledge in mentorship under the influence of supplier’s organizational culture (OC). Design/methodology/approach A survey questionnaire was employed to collect data from 226 employees of participating suppliers after conducting mentorship training at the suppliers’ site. The data were analyzed by the partial least squares structural equation modeling with software SmartPLS Ver. 3.0. Findings The empirical analysis indicates that SD by mentorship partially mediates the total effects of OC – power distance and uncertainty avoidance – on performance. It completely mediates the collaborative culture on performance. Originality/value This study may confirm that the SD program by mentorship is a viable strategy to enhance the performance of supply chain partners and the selection of suppliers.

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