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Attitudes of students towards credit cards

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1.0 Introduction
The attitudes of students towards credit cards is quite complex subject, one that when measured
needs to combine both demographic and attitudinal data to provide a complete picture of the topic.
Before we go further, here are briefly discussed about credit card scenario in Malaysia.
According to a newspaper report in 2008, total bankrupted of individuals because credit card debt in
last year is 1,873 people. Credit card holder in this country fail to settled loan debts which hit
RM21.6 billion until last September 2008. Of the number, as much as RM591 million was Non
Performing Loan (NPL). Apparently trend of use the credit card among present youth has already
became a priority to show standard and modern lifestyle without realize them would be
become 'slave' lifelong debt. This is due to fail manage the usage nicely and well-mannered. Credit
card usage has its advantages and disadvantages. As long the owner of credit card can control its
usage according to smart financial plan, then, it will return some valuable to the owners.
2.0 Rationale for using e-mail survey
Electronic mail or e-mail has revolutionized communication process by allowing users to transmit and
received information from virtually all around the world when the users connected online. The users
instantly get the email message and relatively low cost compare to conventional mail.
Email is one of the types of self-administered survey questionnaire that is filled in by respondent in
electronic environment. In this way, respondent will more convenience to fill up the questionnaire in
term of anonymity and time controlling to complete the survey.
Email survey research is the systematic data collection of information on a specific topic using
questionnaires delivered to an online sample or population. The respondents will receive, complete,
and return their questionnaires answer via email. With the growth of online networks around the world,
it is feasible to see an increase in the use of email in survey research.
3.0 Research methodology
Research issue
There are several issues in this overall report regarding to design questionnaire and collecting data
through email survey. To design the questionnaire, the questions were divided into two parts which are
parts A is for respondents who has a credit card and Part B for without credit cards. These are to
ensure clear and precise data gathering from both categories. The collecting data from respondents is
a major problem as well. Reluctance to gain feedback or reply from respondents is quite high. To
overcome this problem, some techniques have been practiced such as call back through telephone line
to respondents and send email reminder. There are some questionnaire email was undelivered to
respondents and need to send to secondary respondent email address. Another issue is the question
given in questionnaire was incomplete filled and need to ask again from several respondents
answered.
Research goal
In completing this survey and resulting analysis, the following research goals were first defined:
Discover through the use of seven questions of demographic characteristic of who are have or not have
a credit card especially relating in income group.
Measure students attitudes to using credit cards to feel better about themselves, specifically more in
control of their lives and feeling more important or privileged when they get a credit card.
Measure students attitude towards credit cards to feel about themselves for those is not using a credit
card.
Methodology
Approximately about 10 students were send the questionnaire by using OUM email address and the
sampling focused on 5 male students and 5 female students to avoid bias. The method of sending
email is randomly send according to email features which is the list of email recipients name will
automatically display when I fill the first alphabet. It means that, for example when we press A at the
to column, then OUM email will shows the list of the names which are start with a such as ahmad
rasky, ahmad saiful, etc. About two weeks after the questionnaire has sent to all, 10 replies has
successfully collected. Nevertheless, the samplings are about 7 male and 3 female. This is due to time
limitation of waiting reply from target respondents. The anonymity of respondents was assured by
where they are from. The questionnaire itself includes 7 demographic questions.
Good questionnaire have to be as simple as it can, and the method of answering must within short time
as well. To do that way, the question given is quite simple, short and the way to reply answers is more
convenience to respondents where they are only required to reply with draft email and only need to
underline the answers given and send. Below are the lists of original design question where had been
send to target respondents:
This is simple and easy step to reply. Just click 'reply' with draft,
underline the answers and send..

SURVEY ON STUDENTS ATTITUDE TOWARD CREDIT CARDS

Demographic Characteristics:
Kindly underline at the answer chosen:
1. Age:
a. <25
b. 26-40
c. 41-55
d. 56 and above
2. Gender:
a. Male
b. Female
3. Race:
a. Malay
b. Chinese
c. India
d. Others
4. Marital Status:
a. Single
b. Married
c. Divorce
5. Course undertaking/current Level:
a. Diploma
b. Degree
c. Master
d. PhD
e. Others
6. Work position:
a. Private sector
b. Government sector
c. Others
7. Monthly net Income:
a. < RM 1000
b. RM1000-RM1999
c. RM 2000-RM2999
d. >RM3000
10 questions in Part A has been designed, which are respondents who have a credit card and 10
questions in Part B which is to respondents who do not have credit card. Each of these questions were
responded to on a five-point scale comprised of 1) Strongly disagree, 2) Disagree, 3) Neutral, 4) Agree
and 5) Strongly agree. The following attitudinal statements were responded to in the questionnaire:
Students Attitude Toward Credit Cards:
Did you have a credit card?
a. Yes (if yes, answer part (A) only)
b. No (Proceed to questions on part (B) and ignore the part (A) questions )
Part (A)
By using the scale given, please indicate your reason of using credit cards.Kindly underline at the
number that best describes your reason:
Scale indicator: 1. Strongly disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly
Agree

(a) Credit card used for medical expenses
and family related emergencies 1 2 3 4 5
(b) Credit card used for making travel
arrangements and reservations 1 2 3 4 5
(c) Credit card used as a method of payment
for shopping by internet 1 2 3 4 5
(d) Credit card used to pay for education-
related expenses such as fees and books. 1 2 3 4 5
(e) Credit card offers added security over
carrying cash 1 2 3 4 5

(f) It is easy to overspend with a credit card 1 2 3 4 5
(g) I can take the cash advances on my credit
cards 1 2 3 4 5
(h) Credit card used to cover living expenses 1 2 3 4 5
(i) Credit card used to cover the expenses of
a vacation 1 2 3 4 5
(j) I becomes more desire when shopping with
credit cards 1 2 3 4 5
Part (B) By using the scale given, kindly indicate your reason of NOT using credit cards by underline at
the number that best describes your reason:
Scale indicator: 1. Strongly disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly
Agree
(k) Uncontrolled spending can result in
bad financial situation. 1 2 3 4 5
(l) Credit cards will costing me more
than I think. 1 2 3 4 5
(m) I dislike all credit cards. 1 2 3 4 5
(n) I fear the consequences of overspending of
credit card. 1 2 3 4 5
(o) It is easier to control expenditure when
I pay by cash. 1 2 3 4 5
(p) Paying by credit card encourages me
to buy things beyond my budget 1 2 3 4 5
(q) Using a credit cards can only bring the
financial confusion to me 1 2 3 4 5
(r) Paying by cash can help me to avoid debt 1 2 3 4 5
(s) I worry on how I will pay my credit cards
debt. 1 2 3 4 5
(t) I am less concerned with price of a product
when I use a credit card 1 2 3 4 5
--------------------------------------END QUESTION..THANK YOU FOR YOUR KIND COOPERATION------
4.0 The qualitative report on the responses received.
4.1 Analysis of Results
Starting with the research design, the first criteria has been measured was 5 respondents have a credit
card and another 5 respondents dont have a credit cards, these constant is to ensure that the analysis
is fairly acceptable as illustrated in Figure 4.1 below.
Percentage of credit card subscriber

gender
yes (%)
no (%)
male
50
20
female
0
30
Figure 4.1: Credit cards subscribed base on gender of respondents
Figure 4.1.0: Percentage of owned/not owned credit cards base on gender
Base on the result above, 50% or 5 respondents which owned credit cards consist of male gender,
whereas another 50% is consist of 3 female and 2 male of respondents. It can be concluded that from
sampling taken, most male gender owned the credit cards.
Monthly Net Income towards own Credit Cards
Monthly net income toward owning credit cards
net income
yes (%)
no (%)
RM 1000-RM1999
20
20
RM 2000-RM2999
20
30
>RM 3000
10
0
Figure 4.2: percentage of monthly net income
Figure 4.2: Percentage of own credit cards base on monthly net income
Base on figure 4.2, majority of respondents having net income between RM 2000 to RM2999. It found
that the owning of credit cards doesnt influent towards net income which means high net income such
as RM 2000 to RM 2999 are still not using credit cards even though they are eligible to apply and use
it.
Attitude towards Credit Card Analysis
Part A: Owned Credit cards respondents
Percentage of attitude of respondents who owned a credit cards




attitude\scale
strongly disagree
disagree
neutral
agree
strongly agree
a) use for medical expenses, emergency
0
20
0
20
60
b) travel arrangement, reservation
0
0
0
80
20
c) shopping by internet
0
0
20
60
20
d) pay education matter
0
20
40
20
20
e) security over carrying cash
0
20
20
60
0
f) easy to overspend
0
20
20
0
60
g) withdraw advance cash
20
20
20
40
0
h) cover living expenses
20
80
0
0
0
i) vacation expenses
20
60
0
20
0
j) more shopping desired
20
20
0
40
20
Figure 4.3a: Percentage of scale about determined attitude of using credit cards (a e)
Credit cards used for Travel arrangement and reservation
According to figure 4.3a, it is concluded that 100% (80% agree + 20% strongly agree) or equivalence
to all 5 respondents agreed that credit cards is used for travel arrangement and reservation.
Credit cards used for Shopping by Internet
Base on figure 4.3a, almost all respondents agreed that shopping by internet are the choice of the
owner of credit cards.
Security of credit cards over carrying cash
The result shown above has concluded that 60% respondents agreed that use credit cards is more
secured rather that carrying cash, 20% disagreed and 20% are neutral.
Figure 4.3b: percentage of scale about determined attitude of using credit cards (f to j)
Attitude of cover living expenses by using credit cards.
Base on figure 4.3b, it found that 100% or all 5 respondents are disagreed for the above statement. It
means the owner of credit cards respondents are not practiced that method for cover daily living
expenses.
Credit cards encourage to owner withdraw advance cash
Base on figure 4.3b, 40% of respondents are agreed,40% (20% strongly disagree+20% disagree) and
20% are neutral. The result shows balances between agree and disagree.
Attitude of easy to overspend
The result shows almost respondents or 60% are strongly agreed for the above statement. The used of
credit cards will encourage the owner to overspend to buy unnecessary things. The disagreed about
this statement is about 20% and the rest 20% choose neutral.
Attitude of vacation expenses by using credit cards.
Base on figure 4.3b, the result surprisingly shows that 80% (20% strongly disagree+60% disagree)
respondents are disagreed about vacation expenses is covered by using credit cards which means
they preferred another method instead of credit cards whereas 20% are agreed for this statement.
Part B: Non credit cards respondents
According to the data collected, 5 respondents out of 10 have not been using credit cards. Part B will
deliberate the attitudes of non credit cards respondents towards credit cards. The result of analysis has
shown below:
Percentage of attitude of respondents who are non credit cards




attitude\scale
strongly disagree
disagree
neutral
agree
strongly agree
k) uncontrolled spend will caused bad financial situation
0
0
0
20
80
l) will costing me more than I think
0
0
0
40
60
m) I dislike all the credit cards
20
0
40
40
0
n) fear the consequences of overspending
0
0
0
60
40
o) easier to control expenditure by cash
0
0
40
40
20
p) pay by credit cards encourage to buy beyond my budget
0
0
0
40
60
q) will cause financial confusion
0
20
0
60
20
r) paying by cash will help to avoid debt
0
0
0
80
20
s) worrying on how to pay credit cards debt
0
20
0
20
60
t) less concerned with price of product by using credit cards
0
20
20
20
40
Figure 4.4a: Percentage of attitude of respondents who are none credit cards ((k) to (o))
Figure 4.4b: Percentage of attitude of respondents who are none credit cards ((p) to (t))
Will costing me more than I think
With reference on result in figure 4.4a, 100% or 5 out of 5 respondents are agreed about by using
credit card will charge more cost instead of cash usage. Respondents perceived that credit card will
caused carrying financial burden.
Attitude about fear the consequences of overspending.
Figure 4.4a has shows about 100% respondents are agreed of this statement which means the
respondents avoid to having credit card due to this reason. It is also related to variable (p) pay by
credit card encouraged to buy beyond my budget which is also shows that 100% has agreed for this
statement.
Attitude of easier to control expenditure by cash instead of credit card
Figure 4.4a has shows that 60% respondents are agreed and 40% are neutral, which means majority
of respondents perceived when using cash, the expenditure will be more in controlled rather than credit
cards. The resulted was related to variable r) paying by cash will help to avoid debt which resulted
100% respondents are agreed for this statement. With strong justification of 2 dependent variable
which are (o) and (r), it concluded that respondents are trying hard to avoid debt. Thus, this scenario
encourages the respondents to decline credit card usage.
5.0 Conclusion
The student attitude towards credit card in this research report has come out with several results which
are not expected that we had imagined before. The conclusions are summarised as below:
10 respondents are consists of 7 male and 3 female. The result shows that all the 3 female
respondents do not used or have credit card whereas 5 out of 7 male having credit card. It can be
concluded, male are more influence to have or use credit card compare to female.
It has concluded that credit card is acceptable and practically to use nowadays. This is because when
we look at the result of variable (m) I dislike all credit cards, theres only 2 respondents out of 10 or
equivalence to 20% are dislike of all credit cards. The balanced 80% are chose disagree and neutral.
Thus, it concluded that, whether respondents having or not having credit cards, majority of them
accepting credit cards usage and noticed about beneficial of credit cards.
References
Assoc Prof Dr Ahmad Shuib (2010). BBYN4103 Business Research Method. (March version). Meteor
Doc. Sdn. Bhd. Selangor Darul Ehsan.
Alan Bryman, Emma Bell. (2003). Business Research Method. Oxford University Press
Roman L. Weil and Michael W. Maher. (2005). Handbook of Cost Management, Second Edition. John
Wiley & Sons.
Wan Marzuki Wan Ramli. (2008). Usah ghairah berhutang dengan kad kredit. Retrieved July 18, 2010,
from
http://www.utusan.com.my/utusan/info.asp?
y=2008&dt=0702&pub=Utusan_Malaysia&sec=Rencana&pg=re_05.htm
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