Consumer credit card ownership and usage practices: empirical evidence from Sri Lanka

Wickramasinghe, Vathsala; Gurugamage, Anurudh

doi:10.1111/j.1470-6431.2009.00779.x

Cited by 38 publications

(41 citation statements)

References 30 publications

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“…But credit cards are multi-faceted. They are a convenient payment method, a source of credit, and may act as lifestyle facilitators (e.g., Wickramasinghe and Gurugamage 2009). Depending on which of these facets dominates, associations of convenience may be substituted with associations signaling personal investments.…”

Section: Effect Of Payment Methods On Psychological Ownershipmentioning

confidence: 99%

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Payment method and perceptions of ownership

Kamleitner

Erki

2012

Mark Lett

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How consumers pay influences how they feel about a transaction. In particular, paying by card has been argued to have an effect on the perception of cost; making it less salient and painful. We propose and show that payment method also influences how consumers feel about the acquired good. Specifically we focus on effects of the payment method on psychological ownership, i.e. the perception of an object as "mine". We propose that cash payment results in stronger psychological ownership because it influences the extent of perceived investment in an object. We provide evidence for the proposed effect from field and laboratory settings. Results of a longitudinal exit-survey and an experiment show that cash payers report higher levels of immediate psychological ownership than card payers. However, this effect seems to depend on the meanings associated with a payment method. Asian students (who associate credit card payment with investment and debt) do not exhibit this effect. Moreover the initial boost in psychological ownership seems to be comparably shortlived. Whilst those paying in cash experience no further increase in psychological ownership over time, those paying by card do.

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Section: Effect Of Payment Methods On Psychological Ownershipmentioning

confidence: 99%

“…Variations in meaning are likely to go hand in hand with differences in credit card usage practices. These vary across cultures and demographics (Wickramasinghe and Gurugamage 2009). …”

Section: Study 2 -A Cross-cultural Experimentsmentioning

confidence: 99%

Payment method and perceptions of ownership

Kamleitner

Erki

2012

Mark Lett

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“…Results of our research indicate that the long-term budget available for spending deteriorates in case of the above aforementioned assumptions, and are applicable to both developed and developing countries due to the fact that previous research suggest that not only the level of countries development impacts the behavior of the credit card owner, but also personal characteristics like income [5], social class [25], and age [22,17,18]. There are several practical implications and lessons learned from the model.…”

Section: Resultsmentioning

confidence: 91%

“…There is a difference in the behavior of credit card users according to their social class [25]. Those in a lower social class use credit cards more frequently and mostly for installment purposes and those in an upper social class use them for convenience.…”

Section: Introductionmentioning

confidence: 98%

Credit card spending limit and personal finance: system dynamics approach

Bach

Zoroja

Skok

2014

Croat. Oper. Res. Rev.

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Abstract.Credit cards have become one of the major ways for conducting cashless transactions. However, they have a long term impact on the well being of their owner through the debt generated by credit card usage. Credit card issuers approve high credit limits to credit card owners, thereby influencing their credit burden. A system dynamics model has been used to model behavior of a credit card owner in different scenarios according to the size of a credit limit. Experiments with the model demonstrated that a higher credit limit approved on the credit card decreases the budget available for spending in the long run. This is a contribution toward the evaluation of action for credit limit control based on their consequences.

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“…An examination of literature suggests that credit cards are associated with prestige, status, and power (Wickramasinghe and Gurugamage, 2009;Ahmed et al, 2010;Nga et al, 2011) and consumers use credit cards to exhibit their position in society (Willis and Worthington, 2006). Credit cards enable people to overspend and acquire products to improve their self-esteem (Phau and Woo, 2008;Foscht et al, 2010;Pulina, 2011).…”

Section: Introductionmentioning

confidence: 99%

Money attitudes, credit card and compulsive buying behaviour: a study on Indian consumers

Khare

2016

IJBCG

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Abstract:In recent years, the credit card market in India has shown positive growth. However, the Indian market with infrastructural constraints, collectivist tendencies, and recent economic developments due to liberalisation is different from Western countries. It was assumed that Indian consumers' attitude about credit card use is likely to differ from their Western counterparts. The purpose of current research was to examine relationship of money attitudes, credit card use, age and gender on compulsive buying behaviour of Indian consumers. It would enable in understanding differences, if any, between developing and developed country markets. Insights about consumers' attitudes towards credit cards and money can help credit card companies educate consumers about over spending and debt. It also attempts to understand applicability of money attitude and compulsive scale on Indian consumers. The results suggest that compulsive buying behaviour is influenced by money attitudes of power and price sensitivity. Extravagance-prudence and age moderate money attitude. Credit card companies can use themes of 'power' and 'price sensitivity' to target consumers. Compulsiveness can lead to social and financial problems; it is important to educate consumers about credit card use and associated risks.

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Consumer credit card ownership and usage practices: empirical evidence from Sri Lanka

Cited by 38 publications

References 30 publications

Payment method and perceptions of ownership

Payment method and perceptions of ownership

Credit card spending limit and personal finance: system dynamics approach

Money attitudes, credit card and compulsive buying behaviour: a study on Indian consumers

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