Factors affecting credit card usage
Loading...
Date
1998-03
Authors
Syed Ahmad, Syed Sharaff
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Spending via the using of credit cards has reached an alarming level and had prompted
Bank Negara Malaysia to take some drastic actions including increasing the minimum
monthly payment from 5% to 15% and imposing an annual surcharge of RM50.00 per
card, to curb the spending. As at June 1996, There were estimated more than 2 million
cards issued in this country with a total transaction of RM4.1 billion. This study will
make an attempt to find out why do people use the cards and whether the demographic
and psychographic factors of the card users have a bearing on their level of usage. The
respondents are credjt card holders in Georgetown Penang. It is expected that
psychographic and demographic factors have an influence in the level of card usage. The
findings show that there were positive associations between some of the psychographic
factors and the level of credit card usage. The result also show that there were no
significant difference between male-female card usage but there were significant
differences in level of usage between married-unmarried and graduate-non graduate users.
The result also show that the self-employed and private sector employees use the cards
more than their counterparts in the public sector. Finally, this study reveals that the non
Malays use the card more heavily than the Malays and those below 30 years old and in
the 40-50 age group find the card more useful than those in the other age groups.
Description
Keywords
credit card