CONSUMER PREFERENCES AND REGULATIONS IN CREDIT CARD MARKETS: EVIDENCE FROM TURKEY

In this paper, we analyze the demand side of the credit card market. Using unique survey data and a discrete choice model, we uncover consumer preferences for all price and nonprice features of credit cards. Our results provide evidence for an alternative explanation for the credit card pricing puzzles. We show that consumers view credit cards as highly differentiated products with both bank-level and card-level nonprice features. When selecting their credit cards, they predominantly prioritize these nonprice features over prices. Although private banks charge higher prices for their credit card services than other banks, the majority of consumers choose them as issuers due to their bank-level and card-level nonprice features. Consumers who prioritize prices tend to choose the credit cards of participation or public banks. Widespread branch/automated teller machine networks as bank-level features and installments, bonuses/rewards/miles and the prestige of the card as card-level features are particularly effective in consumers’ decisions to choose private banks as issuers. Such strong preferences for nonprice features seem to furnish private banks with market power. Hence, we argue that underlying issuers’ market power is also this differentiated nature of credit cards, for which regulatory measures are not self-evident.

The Issue and Risk Analysis of the Credit Card

In order to systematically evaluate credit card risk, opportunities for specific action and activity are used on paper. Based on the rapid development of the local credit card market, the current risks of the application and the issue of the credit card are discussed. With a credit card application using a credit card, a situation may arise where a customer may wish to repay the loan on time. In addition, the credit rating system, marketing and approval method, credit card overpayment, incentive orders and penalties, use management and other related angles are considered to solve the credit card risk problem.

Compulsive Buying Behaviour of Credit Card Users and Affecting Factors Such as Financial Knowledge, Prestige and Retention Time: A Cross-sectional Research

A leading concern in client and vender relations is that the rising new situation of influence deploying of the credit card market. This situation is accountable for compulsive buying, which has disapprovingly exaggerated consumers, leading to impossible debt levels. Financial counsellors search for why and how individuals get themselves into financial debt. Compulsive buying behaviour and credit card could have a powerful effect on consumers’ financial stability. Further, in place of comprehending credit card usage and compulsive buying, this study correlates them with wealth attitudes such as power-prestige, financial knowledge and retention time. A cross-sectional descriptive research design using convenience sampling and non-probability sampling with quota samples of 313 credit cardholders was surveyed. The outcome showed that those with power-prestige money attitudes are likely to have free usage of credit cards through compulsive spending. Results also showed that those with a higher financial understanding have lower compulsive spending off the credit card.

Do education sector credit cards differ with other credit cards in Malaysia?

Purpose The credit card market is very large and segmented by targeting different types of consumers. One type of credit card is one that specifically targets people in the education sector, for instance, students, teachers and other staff members. This study aims to compare the features of education and other credit cards in Malaysia. Design/methodology/approach The study analyzes data concerning 234 credit cards by using descriptive statistics and a one-way analysis of variance test. Findings Out of 234 credit cards, this study found only two credit cards especially target education sector customers. The study evaluated 13 features of these credit cards and found that only 2 features are statistically significantly different from other conventional credit cards in Malaysia. These features are interest rate and cash withdrawal charge fees. Originality/value This is an original study based on the compilation of data from secondary sources. The findings will provide valuable insights to financial regulatory policymakers, academics and business managers.

The Effects of the COVID-19 Shutdown on the Consumer Credit Card Market: Revolvers versus Transactors

The consumer credit card market has experienced dramatic, unprecedented changes in the wake of the COVID-19 shutdown of the U.S. economy. Revolving credit in the G.19 Consumer Credit statistical release fell by an annualized rate of 32 percent in the second quarter of 2020.

Side Effects of Nudging: Evidence from a Randomized Intervention in the Credit Card Market

This paper studies the direct and indirect effects of nudging, by means of a field experiment with a financial management platform in Brazil. Reminders for upcoming credit card payments reduced credit card late-payment fees by 14%, but increased overdraft fees in checking accounts by 9%. The unintended effect is concentrated in users with a history of overdraft use. These users experienced a net increase of 5% in total fees, while the rest experienced savings of 15%. The results provide clear insights for nudge design: like any policy action, nudges can have side effects, and one size may not fit all.

Research of population readiness to use credit cards in Russia

To date, an analysis of trends in the development of banking services has revealed the underdevelopment of the credit card market in Russia. This situation indicates the presence of barriers to the development of this type of service. The article identifies the most significant factors influencing the choice of the consumer in relation to the use of credit cards using the construction of a structural equation model. As a result, it is statistically substantiated that reasons such as fear of unnecessary spending and an unreasonable increase in consumers' own expenses are the main barrier to the development of the bank credit card market. The key driver of market development is attractive loyalty programs and favorable cashback conditions for potential consumers.

Developing credit card market from Vietnamese consumers’ perspective

This study aims to identify the factors affecting the intention to use credit cards in Vietnam. Previous empirical studies on planned and actual behaviors showed that customers decide to own and use credit cards through their awareness of credit cards, including perceived usefulness, perceived behavioral control and subjective norm. To collect the data, we use structured self-administered questionnaires from 426 respondents making payments through bank accounts. The findings show that perceived usefulness, perceived behavioral control and subjective norm have a positive impact on credit card adoption among Vietnamese consumers. This study also supposes that customers from different demographics have different intentions to use credit cards. Some recommendations are made to improve the effects of banks’ policies on credit card application and use.

The Effect of Demographic Variables and Ownership on Credit Card Market in Malaysia

The aim of this research is to provide a framework for credit card providers to develop a better marketing strategy as well as business related to credit transaction by providing better understanding towards the effect of current individual demographic variable towards credit card ownership and usage in Malaysia. This research discusses the effect of significant demographic variables and ownership on the usage of credit card in Malaysia. The impacts of four key demographic variables are age, gender, education level, and income level on ownership and usage of credit card among credit cardholders in Malaysia. Whereas the income level has the strongest relationship among other demographic variables, it has to be taken into consideration by the credit card providers not just the ownership of credit card as well as the demographic variables while developing market strategy, particularly in Malaysia.