Consumer Perception and Attitude towards Credit Card Usage

Consumer Perception and Attitude towards Credit Card Usage – with special reference to Warangal District *Dr.CH. SRIKANTH VERMA **Dr.CH. SATYANARAYANA REDDY

Abstract A notable change in consumer financial services over the past few decades has been the growth of the use of credit cards, both for payments and as sources of revolving credit. In modern business, credit cards (along with debit cards) serve as a payment device in lieu of cash or cheques for millions of routine purchases as well as for many transactions (for example, making retail purchases by telephone or over the Internet) that would otherwise be inconvenient, or perhaps impossible. The credit cards have also become the primary source of unsecured openend revolving credit, and they have largely replaced the instalment-purchase plans that were important to enhance the sales volume at many retail stores in earlier decades. Indian credit card market has been changing rapidly as its doors are opened to the global economy. As profit opportunities are more, major credit card brands have been entering the Indian market. At the beginning, the usage of credit cards had been very limited. They were used mostly in upscale hotels, restaurants, retail stores and in major urban centers. However, later significant changes occurred in Indian credit card market. Credit card ownership and usage have expanded very rapidly in India. In this backdrop, there is need to study the consumer perception and attitude towards credit cardholders in Warangal district.

Key Wards: Payments, Cash, Credit Card, Perception and Attitude.

*Assistant Professor, Department of Business Management, Post Graduate Centre, Lal Bahadur College, S.P. Road, Warangal – 506007. E-mail: [email protected] **Associate Professor and Head, Department of Commerce, Lal Bahadur College, S.P. Road, Warangal – 506007. 1

Introduction: The term “credit card” usually refers to a plastic card assigned to a cardholder, with a credit limit, that can be used to purchase goods and services on credit or obtain cash advances. Credit cards allow cardholders to pay for purchases made over a period of time, and to carry a balance from one billing cycle to the next. Credit card purchases normally become payable after a free credit period, during which no interest or finance charge is imposed. Interest is charged on the unpaid balance after the payment is due. Cardholders may pay the entire amount due and save on the interest that would otherwise be charged. Alternatively, they have the option of paying any amount, as long as it is higher than the minimum amount due, and carrying forward the balance. Evolution of Credit Cards in India: Credit mode of financial transaction was used in India around 3000 years ago. In the late 14th century, the forerunners of bank notes, bill of exchanges were used to run with utmost responsibility. Many financial related debts were settled down with one third of liquid cash and two thirds of bill exchanges which perpetuated till the 17th century. In the 19th century, a few people in India, used to sell clothes, which were offered on weekly payments and the record was maintained on small sticks as they were called as ‘Tallyman’. The stick was maintained with notches and then was season with the record of payments. In the year 1920, shoppers plate was also issued as a credit to Indian clothe customers and it was called as ‘buy now, pay later” service. As India, was on a breach of independence, many rich Indians used to utilise this service as they found it as affordable sources. Till the year 1970, credit card services were running in full swing in USA and slowly gripped the Indian markets. Progress in the Indian civilization has brought the radical changes in 2

the financial dealings and its related cultures as well. The trading sector was revolutionized and the need for something best or better intrinsically useful was in urgent requirement. Indian financial dealings were not satisfied with the cash and coins dealings, as it formed only one way of paying. Slow development in banking sector has witnessed paper instructions mode of payment namely cheques or drafts. Then came plastic cards which are termed as electronic payments and these are termed as credit cards. The introduction of the first credit card is claimed by Central Bank of India, in 1980, by name, 'CentralCard'. These Credit cards are offered to users, with a limit of spending and the cardholders are asked to pay it back with some interest on time. In 1981, Andhra Bank also introduced credit card facility to their bank customers in a wider scope, it being a dynamic entry of credit cards in Indian banking industry. These Credit cards have certain meaning, while producing them a certain amount of goods, services, or supply are offered. In simple terms, credit cards are those which are offered to customers in order to procure unsecured personal loan, offered by a bank, to fetch in some services and goods. The credit limit is always offered with a payment date which is around 45 days. Need of the Study: Credit cards have become an indispensable part of modern day existence and no wonder the last few years saw a sea change in the attitudes of people opting for this plastic currency. Indian consumers are generally cautious in purchasing on credit. They display credit-averse behavior. The 'pay now' feature of debit card discourages dependency on credit. It also helps in better financial planning and control of purchases by consumers. A credit card encourages the customers to “purchase now and pay later”, which is still not inculcated in Indian culture. Indians

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are still lacking behind the western countries in making use of credit cards. Hence, there is need to study consumer perception and attitude towards credit cards usage in India. Objective of the Study: The main objective of the study is to examine the consumer perception and attitude towards credit cardholders in Warangal district. It includes 1) To study the usage level of credit cardholders in Warangal District, 2) To assess the attitude towards credit cardholders in Warangal District and 3) To examine the perceptions of credit cardholders in Warangal district. Scope of the study: The present study makes an attempt to assess the perceptions and attitude of cardholders towards credit cards in Warangal District. Its scope has been confined to 250 credit cardholders from Warangal district. The study also attempts to measure the Demographic and SocioEconomic Characteristics, Usage and Debt Payment Preference of credit cardholders in Warangal District. Source of Data and Methodology: The study is based on Primary data. The primary data is collected by using questionnaire technique. A well-designed questionnaire comprising scaling technique like Likert Model i.e. five point scales have been used to collect the perception towards credit cardholders. The data collected is analysed and interpreted by using statistical techniques such as averages, Chi-square Test and Factor Analysis techniques are used. The data collected for the present study that the features and benefits of credit cards issued by many banks are almost similar. In this regard, it is decided to analyse credit cardholders’ opinions individually. The sample (Convenience Sampling 4

Method) size taken for the study is 250 credit cardholders from (Table – 01: Selection of Sample) Warangal distract. Data Analysis: To describe the Warangal consumer perception towards credit cards, descriptive research was used. Due to the descriptive nature of this research, descriptive statistics of SPSS 16.0 for Windows was used to find the answers of the research questions. Demographic and Socio-Economic Characteristics: Table 02 summaries the demographic and socio-economic characteristics of 250 respondents. An analysis of the socioeconomic characteristics of the respondents revealed that males comprised 95 percent of the sample population. Of the total survey respondents, 55 percentages of the respondents are graduates, 25 percentages are below graduates and remaining 20 percentages are post graduates. Moreover, 77 percentage cardholders lie in the age group of 21-40 years. Around 21 percentages are in the age group of 41-60 years. The remaining 2 percentage are above 61 years.

It is evident that 50 percentage respondents are Private

Employees, 18 percentage are Semi-Govt Employees, 13 percentage are Government Employees, 12 percentage are Professionals, 6 percentage are Retired Employees and the remaining are Businessmen.85 percentage respondents have an average annual income of below ` 2, 50,000, 13 percentage earn between `2, 50,001 – ` 5, 00,000 and very few are in the high income group of ` 5,00,001 and above. Usage and Attitude towards Credit Cards: The little piece of plastic cards has transformed the way Indian consumers pay. Generally, these cards are traditionally used only in the metros in India has now been introduced 5

in tier II towns and cities, and is increasingly accepted in place of cash. In this backdrop, the holding period of credit cards by the respondent was elicited through questionnaire. The relevant data are presented in table 03. It can be seen from above data that 28% respondents have been using credit card from 2 to 3 years, 27% are more than 4 years and 25% are from the 1 to 2 years. Around 14% are 3 to 4 years and the remaining 6% less than 1 year. It is clear from the above analysis that majority of the respondents are using their credit cards from 1 to 3 years because of popularity of these cards in the present day situation. Volume of expenditures that were made by using credit card constituted the significant share of usage and attitude of the respondents. It plays a vital role in the purchase and consumption behavior. Hence, the average annual expenditure of respondents are elicited and shown in table 04. The data displays that, the proportion of expenditures that were made by credit cards to average annual total expenditures. 64% of the respondents stated that up to 30 % of their average annual expenditures are met by using credit cards. Around 23% of the respondents declared that their credit card expenses constituted 31- 50% of their total expenses. The reaming 13% of the respondents expressed that more than 51% of their expenditure is cleared through credit cards. Above analysis indicates that the majority of the respondents were using their credit cards for meeting up 30% of their expenditure due to the lack of sufficient number of merchant outlets and high transaction cost. Further, a cross analysis is made between average annual income of the respondents and their average annual expenditure through credit card. The relevant data are presented in table 05. The data reveals that the respondents with below `2, 50,000, 52% of the respondents stated that up to 30% of their average annual expenditures was paid by using credit cards. Around 27% respondents stated that 31- 50% and the remaining 21% opined that more than 51% of their 6

expenditure is met through credit cards. In the ` 2, 50,001 – ` 5, 00,000 income group, 69% respondents are using credit card in paying up to 30% of their average annual expenditures. Further, around 20% are using these cards to pay 31-50% and the remaining 11% to pay more than 51% of their expenditure. Out of the above `5, 00,001 income group, 53% respondents are stated that up to 30 % of their average annual expenditure paid by using credit cards. 26% of them to met 31-50% of their total expenditure and the remaining 21% for clearing more than 51% of their expenditure. Therefore, it can be concluded that most of the respondents belonging to different income groups are using their credit cards for clearing up to 30% of their total expenditure. Generally, most of the consumers’ are not possessing expected level of awareness in utilising the credit cards to avail the different services offered by banks. Chi-square Test: Further, an attempt is also made to test whether there is any significant difference between average annual income and expenditure paid through credit cards. Null Hypothesis (Ho): There is no significant difference among the respondents belonging to different average annual income with regard to their expenditure were paid by using credit card.

Test

Calculated Value

Table Value

Degree of Freedom

Result

Chi – Square

7.939049314

9.49

4

Accepted (Ho)

Source: Compiled from table No.05.

The calculated value is less than the table value. Hence, the null hypothesis is accepted it indicates that there is no significant difference among the respondents belonging to average annual income with regard to their average annual expenditure.

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Attitude towards Credit Card Debt Payment Preference: The credit card debt payments playing a significant role in the usage level of the respondents. In this background, respondents were also asked how they make their credit card debt payments. Their responses are tabulated and shown in table 06. The data indicates that 84% of the respondents are preferred to make Complete Payment while they are making their credit card debt payment for the specific billing period. Whereas, 12% of the respondents are decided to Partial Payment and the 4% of the respondents are using it for Minimum Payment. Therefore, it can be concluded that the majority of respondents are preferred to clear the total debt arising out of usage of credit cards for the specific billing period to avoid the high interest, financial charges and Annual Percentage Rate (APR). The banks are providing the cardholders with different options for repayment of debt arising out of its usage. This facility is extended to serve the purpose of customer convenience of clearing debt. The relevant data elicited and presented in the table 07. It is clear from the above data, out of the total respondents most of them i.e., 42% prefer to pay the debt through ATMs. It is followed by Net -Banking (41%). 38% prefer to pay the cash over the counter. Drop-box option is utilized by 36% of the respondents. The preference given is very less for VISA Money Transfer (7%), Standing Instructions and National Electronic Funds Transfer (NEFT) (6% each). Therefore, it can be concluded that the majority of the respondents prefer ATMs and NetBanking payment options in order to pay credit card debt. The reason is that it is convenient for the cardholders to make payment through the above modes and to avoid pay specific visits to banks.

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Perceptions with regard to Credit Cards: Perception of credit cardholders plays a significant role in determining the purchasing behavior and attitude of the consumer towards the use and acceptability of credit cards. In this perspective, an attempt is made to analyse the perceptions of credit cardholders. The collected data tabulated and presented in table – 08. Factor Analysis has been used to identify cardholders’ most perceived credit card services provided by card issuers. In order to study the perception levels regarding the services rendered by the banks fourteen statements have been considered. They are Credit card allows purchases before funds are actually available, Credit cards provide revolving credit facility, Interest rates charged on credit card are reasonable, Credit cards are used anytime at most of the places, Acceptability procedure at retail outlets is easy, Free insurance coverage makes card attractive, Added benefits in the form of discounts make the purchase decision on credit card easier, Purchase of air ticket often provides travel insurance, Tempted to overspend when they have credit card, Owning accredit card is a form of status symbol, Are you satisfied with services provided by the credit card companies, There is regular delivery of bill, They offer protection against loss/damage of purchased goods and Credit cards annual fees are reasonable. Table 09 gives the Initial Eigenvalues, Extraction Sums of Squared Loadings and Rotation Sums of Squared Loadings explained by the factors. Out of the fourteen statements influencing the perceptions towards credit cardholders the four groups of services put together explain the total variance of these statements to the extent of 59.928%. In order to study the variance contributed by the statements showing the various types of services factors are rotated. The rotation increases the quality of interpretation of factors. There are several methods of the 9

initial factor matrix to attain simple structure of data. The variance rotation is one of such methods employed to obtain better result for interpretation. The results given in table 10 depicts that four statements are contributing maximum percentage variance. The Eight statements viz., Interest rates charged on credit card are reasonable, Credit cards are used anytime at most of the places, Acceptability procedure at retail outlets is easy, Free insurance coverage makes card attractive, Added benefits in the form of discounts make the purchase decision on credit card easier, Purchase of air ticket often provides travel insurance, Are you satisfied with services provided by the credit card companies and Credit cards annual fees are reasonable grouped to gather as Factor - I which title as ‘Supplementary Services’ and account for 31.447% of the total variance of statements. The two statements Credit card allows purchases before funds are actually available and Credit cards provide revolving credit facility as Factor-II it titled as ‘Core Services’ and account for 11.616% of the total variance of statements. The statements Owning a credit card is a form of status symbol, There is regular delivery of bill statements and They offer protection against loss/damage of purchased goods a constituted as ‘Supporting Services’ grouped together as Factor – III and account for 8.960% of the total variance. They tempted to overspend when they have credit card statements titled as ‘Other Services’ as Factor – IV and account for 7.899%. Therefore, it can be concluded that the majority of the respondents are strongly agree with “Supplementary Services” provided by the card issuers in the study area. These services are motivating the credit cardholders to make use of such cards very frequently to satisfy their needs.

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Conclusion: It is observed that most of consumers are using their credit cards from 1 to 3 years because of popularity of these cards in the present day situation and the different income groups are using their credit cards for clearing up to 30% of their total expenditure. Generally, most of the consumers’ are not possessing expected level of awareness in utilising the credit cards to avail the different services offered by banks. These are preferred to clear the total debt arising out of usage of credit cards for the specific billing period to avoid the high interest, financial charges and Annual Percentage Rate (APR). It can be seen from the research that the respondents prefer ATMs and Net-Banking payment options in order to pay credit card debt. The reason is that it is convenient for the cardholders to make payment through the above modes and to avoid pay specific visits to banks. Most of the respondents are strongly agree with “Supplementary Services” provided by the card issuers in the study area. These services are motivating the credit cardholders to make use of such cards very frequently to satisfy their needs.

Implication: Though the study was restricted to Warangal city, some important revelations have emerged out of the studies that are useful to credit card marketers. The affluent consumers and those above 40 years are not using credit card as a major some of payment method. The credit card companies should think seriously about this and design strategies to include them as customers as their purchasing power is very huge. In the same regard, companies should also try to increase the volume of credit card expenditure by including more Point of Purchase (POPs) into their network coverage. The future potential of the credit card industry is immense as Indians are slowly digitalizing their financial transactions. It also requires suitable marketing strategies from the credit card companies to tap their growing market.

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Reference: Ausubel, Lawrence M. 1991. The failure of competition in the credit card market. American Economic Review, 81 (1): 50-81. Dagobert, Brito L. and Hartley, Peter R. 1995. Consumer rationality and credit cards. Journal of Political Economy, 103 (2): 400-433. Calem, Paul S. and Loretta, J. Mester. 1995. Consumer behavior and the stickiness of credit- card interest rates. American Economic Review, 85 (5): 1327-1336. Canner, Glenn B. and Luckett, Charles A. 1992. Developments in the pricing of credit card services. Federal Reserve Bulletin, 78(9): 652-666. Chakravorti, Sujit and Emmons, William R. 2001. Who pays for credit cards? Federal Reserve Bank of Chicago, Policy Studies EPS: 2001-1. The Reservie Bank of India. 2013. Extracted from website of www.rbi.org Goyal, Anita. 2004. Role of supplementary services in the purchase of credit card services in India. Asia Pacific Journal of Marketing and Logicsics, 4(1): 36-45. Hayhoe, Celia Ray; Leach, Lauren J.; Turner, Pamela R; Bruin, Marilyn J. and Lawrence, Frances C. 2000. Differences in spending habits and credit use of college students. Journal of Consumer Affairs, 34 (1): 113-133. Kinsey, Jean. 1981. Determinants of credit card accounts: An application of Tobit analysis Journal of consumer Research, (8): 179-180. Bowers, Jeans. 1979. Consumer credit use by low income consumers who have had a consumer education course: An exploratory study. The journal of consumer affairs, 13(2): 340-341. Lee, Jinkook and Kyoung-Nan Kwon. 2002.Consumers 'use of credit cards: Store credit card usage as an alternative payment and financing medium. The journal of Consumer Affairs, 36(2): 248. Lee, Jinkook and Hogarth, Jeanne M. 1999. Returns to information search: Consumer credit card shopping decision. Financial Counseling and Planning, 10(2): 23-34. Paul, Peter J. and Olson, Jerry C. 1999. Consumer Behavior and Marketing Strategy, 5th ed., Boston, Irwin, McGraw-Hill. Minhas, Raj Singh and Jacobs, Everett M. 1996. Benefit segmentation by factor analysis: an improved method of targeting customers for financial services. International Journal of Bank Marketing, 3-13. Kazmi, Shabbir H. 2007. The growth of consumer Finance: cost is a major constraint. Pakistan and Gulf Economist, XXVI(44):12. Ghani, Shamsul. 2007. Credit cards: Financing or fleecing, Pakistan and Gulf Economist, XXVI(44): 14. Slocum, John W. Jr. and Matthews Lee H. 1970. Social class and income as indicators of consumer credit behavior. Journal of Marketing, 34(2): 69-74. Stavins, Joanna .1996. Can demand elasticities explain sticky credit card rates? Federal Reserve Bank of Boston. New England Economic Review, (July/ August): 43-54. Kim, Taehyung; Dunn, Lucia F., and Mumy, Gene E. 2005. Bank competition and consumer search over credit card interest rates. Economic Inquiry, 43(2): 344. Whitesell, William C. 1992. Deposit banks and the market for payment media. Journal of Money, Credit and Banking, 24(4): 246-250. Worthington, Steve. 2001. Afiintity credit cards: a critical review. International Journal of Retail & Distribution Management, 12(2): 484-510. Xiao, J. J.; Noring, F. E. & Anderson, J. G. 1995. College students' attitudes toward credit cards. Journal of Consumer Studies and Home Economics, 19:155-174. 12

Table – 01: Selection of Credit Cardholders Bank HDFC Bank ICICI Bank Andhra Bank State Bank of India Standard Chart Bank Axis Bank Total

No. of Respondents 102 60 50 28 06 04 250

Table – 02: Demographic and Socio-Economic Characteristics Demographic and SocioEconomic Characteristics

Respondents

Percentage

238 12 250

95 05 100

192 42 06 250

77 21 02 100

62 138 50 250

25 55 20 100

32 126 46 02 30 14 250

13 50 18 01 12 06 100

212 34 4 250

85 13 2 100

Gender-wise Distribution Male Female Total Age-wise Distribution 21 – 40 41 – 60 Above 61 Total Level of Education Below Graduation Graduation Above Graduation Total Occupation Profile Government Employee Private Employee Semi-Govt. Employee Business Professional Retired Employee Total Average Annual Income Below ` 2,50,000 ` 2,50,001 – ` 5,00,000 Above `5,00,001 Total Source: Primary Data. 13

Table – 03: Have Been Using Credit Cards by Respondents Have Been Using

Respondents

%

Less than 1 year 1 to 2 years 2 to 3 years 3 to 4 years More than 4 years Total Source: Primary Data.

14 62 70 36 68 250

6 25 28 14 27 100

Table – 04: Expenditure through Credit Cards by Respondents Expenditure

Respondents

Up to 30% 31% to 50% More than 51% Total

160 58 32 250

% 64 23 13 100

Source: Primary Data.

Table – 05 Average Annual Income Vs Expenditure through Credit Cards Income Level

Expenditure through Credit Card Up to 30% 31% to 50% More than 51%

Total

Below ` 2,50,000

34 (52%)

18 (27%)

14 (21%)

66 (100%)

` 2, 50,001 – `5, 00,000. Above `5,00,001

100 (69%) 20 (53%)

30 (20%) 10 (26%)

16 (11%) 8 (21%)

146 (100%) 38 (100%)

Total

160 (64%)

58 (23%)

32 (13%)

250 (100%)


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Table – 06: Credit Card Debt Payment Preference Credit Card Debt Payment

Respondents

%

Minimum Payment

10

4

Partial Payment

30

12

Complete Payment

210

84

Total

250

100


Table –07: Mode of Credit Card Debt Payment Sources of Payments

Responses

Through ATMs

104 (42%)

Through Net-Banking

102 (41%)

VISA Money Transfer

18 (7%)

Standing Instructions

16 (6%)

National Electronic Funds Transfer(NEFT)

14 (6%)

Drop-box option

90 (36%)

Over the counter(cash)

96 (38%)


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Table – 08: Assessment of Perception towards Credit Cards Statements

SA

A

NN

DA

SDA

Credit card allows purchase before funds are actually available

50 (20%)

138 (55%)

34 (14%)

20 (8%)

8 (3%)

Credit cards provide revolving credit facility

26 (10%)

162 (65%)

30 (30%)

24 (10%)

8 (3%)

Interest rates charged on credit card are reasonable

22 (9%)

134 (54%)

40 (16%)

46 (18%)

8 (3%)

Credit cards are used anytime at most places

22 (9%)

116 (46%)

32 (13%)

58 (23%)

22 (9%)

Acceptability procedure at retail outlets is easy

28 (11%)

136 (54%)

32 (13%)

44 (18%)

10 (4%)

Free insurance coverage makes card attractive

18 (7%)

90 (37%)

38 (15%)

48 (19%)

56 (22%)

Added benefits in the form of discount make the purchase decision on credit card easier

34 (14%)

98 (39%)

40 (16%)

40 (16%)

38 (15%)

Purchase of air ticket often provides travel insurance

28 (11%)

92 (38%)

26 (10%)

48 (19%)

56 (22%)

Tempted to overspend when they have credit card

14 (6%)

72 (29%)

36 (14%)

50 (20%)

78 (31%)

Owning a credit card is a form of status symbol

14 (6%)

90 (36%)

38 (15%)

50 (20%)

58 (23%)

Are you satisfied with services provided by the credit card companies

52 (21%)

138 (55%)

42 (17%)

6 (2%)

12 (5%)

There is regular delivery of bill statement

54 (22%)

122 (49%)

40 (16%)

16 (6%)

18 (7%)

They offer protection against loss/ damage of purchased goods

70 (28%)

136 (54%)

12 (5%)

16 (6%)

16 (6%)

Credit card annual fees are reasonable

22 (9%)

114 (46%)

40 (16%)

56 (22%)

18 (7%)


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Table 09: Total Variance Explained

Total

4.403 1.626 1.255 1.106 .955 .866 .782 .725 .585 .406 .401 .371 .312 .206

Initial Eigenvalues % of Cumulative Variance %

31.447 11.616 8.966 7.899 6.824 6.189 5.584 5.179 4.180 2.902 2.862 2.652 2.229 1.471

Total

31.447 43.063 52.029 59.928 66.752 72.941 78.525 83.704 87.885 90.786 93.648 96.300 98.529 100.000

Extraction Sums of Squared Loadings % of Cumulative Variance %

4.403 1.626 1.255 1.106

31.447 11.616 8.966 7.899

31.447 43.063 52.029 59.928

Rotation Sums of Squared Loadings % of Cumulative Variance %

Total

3.323 1.919 1.686 1.462

23.736 13.705 12.043 10.445

23.736 37.441 49.484 59.928

Source: Compiled from table No. 08. *Extraction Method: Principal Component Analysis.

Table – 10: Rotated Component Matrix

Credit card allows purchase before funds are actually available

Components 2 3 .751


.866

Statements 1


.565


.822


.620


.630

Discount make the purchase decision on credit card easier

.598


.629


4

.827


.836

Services provided by the credit card companies

.706


.590


.598


.511

Source: Compiled from table No.8. *Extraction Method: Principal Component Analysis. *Rotation Method: Varimax with Kaiser Normalization. *Rotation converged in 8 iterations.

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Questionnaire to Credit Cardholders 1. Name

: …………………………..................

2. Age (in Years)

: 1) Up to 20 3) 41-60

3. Gender

2) 21-40 4) Above 61 :

1) Male 4. Level of Education

2) Female :

1) Below Graduation 2) Graduation 3) Above Graduation 5. Employment status

:

1)Government Employee 3)Semi- Government 5)Professional

2) Private Employee 3)Business 6)Retired Employees

6. Indicate your average annual income and expenditure (in Rupees) Categories 1) Below ` 2, 50,000 2) ` 2,50,001- ` 5,00,000 3) Above ` 500,001

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Income

Expenditure

7. Since how long have you been using credit card? 1)Less than 1 year 2) 1 to 2 years 3)2 to 3 years 4)3 to 4 years 5) More than 4 years 8. What is your credit card debt payment preference? 1)Minimum Payment 2)Partial Payment 3)Complete Payment 9. What is you mode of credit card debt payment preference? 1)Through ATMs 2)Through Net-Banking 3)VISA Money Transfer 4)Standing instructiuons 5)National Electronic Funds Transfer (NEFT) 6)Drop-box option 7)Over the counter (Cash) 10. What proportion of your expenditure is met through using the credit cards? 1)Up to 30% 2)31% -50% 3)More than 51%

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11. Indicate your assessment towards the following Note:1) Strongly Agree 2) Agree 3) Neither Agree nor disagree 4) Disagree 5) Strongly Disagree (Tick the appropriate column) S. No 1

Statements Credit card allows purchase before funds are actually available

2


3


4


5


6


7

Added benefits in the form of discount make the purchase decision on credit card easier

8


9


10


11

Are you satisfied with services provided by the credit card companies

12


13


14


15

Any other (Specify) 20

1 2 3 4 5

Consumer Perception and Attitude towards Credit Card Usage

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