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: drchsv@gmail.com
**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

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

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.

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.

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.

10

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.

11

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%)

Source: Primary Data.

14

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

Respondents

Minimum Payment

10

Partial Payment

30

12

Complete Payment

210

84

Total

250

100

Source: Primary Data.

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%)

Source: Primary Data.

15

Table 08: Assessment of Perception towards Credit Cards

Statements

SA

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%)

Source: Primary Data.

16

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

Credit cards provide revolving credit facility

.866

Statements
1

Interest rates charged on credit card are reasonable

.565

Credit cards are used anytime at most places

.822

Acceptability procedure at retail outlets is easy

.620

Free insurance coverage makes card attractive

.630

Discount make the purchase decision on credit card easier

.598

Purchase of air ticket often provides travel insurance

.629

Tempted to overspend when they have credit card

.827

Owning a credit card is a form of status symbol

.836

Services provided by the credit card companies

.706

There is regular delivery of bill statement

.590

They offer protection against loss/ damage of purchased goods

.598

Credit card annual fees are reasonable

.511

Source: Compiled from table No.8.

*Extraction Method: Principal Component Analysis.
*Rotation Method: Varimax with Kaiser Normalization.
*Rotation converged in 8 iterations.

17

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

18

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%

19

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

Credit cards provide revolving credit facility

Interest rates charged on credit card are reasonable

Credit cards are used anytime at most places

Acceptability procedure at retail outlets is easy

Free insurance coverage makes card attractive

Added benefits in the form of discount make the purchase

decision on credit card easier

Purchase of air ticket often provides travel insurance

Tempted to overspend when they have credit card

10

Owning a credit card is a form of status symbol

11

Are you satisfied with services provided by the credit card

companies

12

There is regular delivery of bill statement

13

They offer protection against loss/ damage of purchased

goods

14

Credit card annual fees are reasonable

15

Any other (Specify)

20

1 2 3 4 5