Consumers’ Use of Credit Cards: Store Credit Card Usage as an Alternative Payment and Financing Medium

Lee, Jinkook; Kwon, Kyoung-Nan

doi:10.1111/j.1745-6606.2002.tb00432.x

Cited by 69 publications

(80 citation statements)

References 20 publications

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“…Any banks credit and money supply can be controlled through the amount of credit have given to individuals as well as households [30]. There is a negative relationship exist between the usage of consumer's bankcard and store cards during transaction as store cards plays a substitute of bank cards [31]. The evidence of credit cards explosive growth in numbers and amount of transactions indicates the benefits derived by the customers and merchants [32].…”

Section: Literature Reviewmentioning

confidence: 99%

Consumers’ Perceptual Biasness in Debit Cards of Indian Banks

Prasad¹

2016

J Bus Fin Aff

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banking products and services efficiently and effectively. The new private and foreign bankers on the basis of adoption of new technological services like plastic cards, personal computer banking, electronic funds transfer, internet banking can able to connect maximum number of customers in spite of having less physical presence. Now public sector banks are equally trying to move towards electronic banking, which leads to the remarkable development with respect to its operational efficiency, customer services, employee productivity and banking profitability. Now banks are bringing flexibility in their distribution channel by reengineering their services.There is a rising acceptance of debit cards in retail locations which has increased the debit cards transactions. Highest number of consumers and merchants acceptance of plastic cards has changed the way to move beyond the traditionally geographic located merchant base to modern arena of transactions. The demand for debit cards has grown rapidly among consumers as these are more convenient than other payment options and cost effective for merchants. Consumers with the limited access to existing payment methods find a debit card is the most suitable instrument for the latest transactions. Debit cards' superiority over credit cards as the most acceptable form of electronic payment at the point of sale and it becomes a primary consumer choice which requires relatively little scrutiny for acceptance. Debit card users who have the knowledge of hidden cost associated with the credit cards are rationally choose to use debit card to minimize the transaction costs. The drawbacks like binding limit in credit cards are converting customers to rely more on debit cards. ObjectivesDebit card plays a vital role in plastic cards which has changed the Keywords: Consumer; Perceptual biasness; Debit cards; Multidimensional scaling; Indian banks IntroductionIndian financial institutions like banking is the lifeline of the nation has helped in developing the major sectors of the economy and usher in a new dawn of progress on the Indian economy. The sector has created the hopes and aspirations of millions of people into reality in the world. But it has control the miles of difficult terrain and suffers under the foreign rules and the pangs of partition. Recently Indian banks have adopted the modern technology and can strongly compete with modern banks of the world [1]. The economic reforms of have presented a challenge before Indian banking sector to make continuous innovation with the pace of new technological change. The technological advancement and adoption is purely based on the consumers' acceptance and positive response. Traditionally, banks were only concerned with the stereotyped activities like acceptance of deposits and lending surplus money to the customer at some rate of interest and the common products being availed by banks were savings account, current account, term deposit account and lending products like cash credit and term loans. It becomes very much necessary for...

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Section: Literature Reviewmentioning

confidence: 99%

Consumers’ Perceptual Biasness in Debit Cards of Indian Banks

Prasad¹

2016

J Bus Fin Aff

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“…Store cards serve two distinct purposes: (i) as a convenient transactional medium, they substitute cheques and cash, (ii) as a source of revolving credit, they enable purchases that can otherwise not be afforded (Garcia, 1980;Lee & Kwon, 2002). When used as a transactional medium, store cards are simply used as method of payment at POS and the full amount is settled upon receipt of a statement at the end of the month.…”

Section: Store Cards and Related Facilitiesmentioning

confidence: 99%

“…Interest is generally charged when the payment period exceeds six months or when payments are overdue (Garcia, 1980;Kenny, 2007;Lee & Kwon, 2002;Zywicki 1996:6).…”

Section: Store Cards and Related Facilitiesmentioning

confidence: 99%

“…Consumers in lower income groups find store cards highly appealing because the facility provides interest free revolving credit while no annual fees are charged (Garcia, 1980;Lee & Kwon, 2002). In this way expensive merchandise and unexpected or bulk purchases (for example during the change of season) can be afforded more easily (Fianu et al, 1998;Portrait Report, 2004:4-6).…”

Section: The Increased Popularity Of Store Cardsmentioning

confidence: 99%

“…Retailers therefore offer facilities such as store cards to recruit and retain as many customers as they can to enhance store loyalty and to maximize their profits (Lown, 2005;Szimigan & Bourne, 1998). Several researchers suggest that the increasing number of departmental and independent stores have increased the availability of merchandise and simultaneously also consumers' admiration of goods (Ger & Belk, 1996;Miller, 2005) which further increases consumers' propensity to use credit regardless of their financial status (Lee & Kwon, 2002). People derive satisfaction and a sense of well being from the consumption of goods and the quality of their possessions and any means that would enable consumers to satisfy their consumption needs is bound to be accepted (Ger & Belk, 1996).…”

Section: The Introduction Of Store Cards In African Countriesmentioning

confidence: 99%

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Consumers’ use of and satisfaction with store cards

Erasmus¹,

Lebani²

2010

jfecs

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Consumers' use of and satisfaction with store cards Opsomming Navorsing dui daarop dat die gebruik van kredietfasiliteite soos bank-en winkelkaarte by betaalpunte wêreldwyd toeneem. Ongelukkig het dit tot 'n toename in slegte skuld bygedra wat ingrypende gevolge vir huishoudings en ekonomië inhou. Sommige beweer dat sekere vorms van krediet, veral winkelkaarte, te maklik toegestaan word en dat verbruikers hierdie fasilitiete tot hulle eie nadeel misbruik. Hierdie navorsing is gegrond op 'n vermoede dat minder ervare verbruikers, byvoorbeeld diè in Afrikalande wat eers in onlangse jare aan groot winkelsentra en verwante fasilitiete blootgestel is, gevaar kan loop om hierdie fasiliteite te misbruik omdat dit so geredelik aan hulle toegestaan word.'n Vergelyking is gedoen van twee verskillende groepe winkelkaarthouers se retrospektiewe evaluering van hulle koopgedrag asook hulle beheer oor kredietlimiete en gevolglike tevredenheid met winkelkaarte. Die navorsing was verkennend, beskrywend van aard. 'n Gestruktureerde vraelys is gebruik en data is gedurende Augustus 2006 ingesamel: 100 respondente uit Gabarone en Francistown in Botswana (steekproef B) en 167 respondente in Tshwane, RSA (steekproef RSA) is betrek deur middel van gerieflikheidsteekproefneming.Betekenisvolle verskille tussen die twee steekproewe hou meestal verband met hulle kredietstatus en onvermoë om betalings vol te hou. Meer as 80% van die minder ervare steekproef het die duurder betaal opsie gebruik, dit wil sê betalings oor die maksimum betaaltermyn wat rente insluit, versprei omdat hulle gesukkel het om maandelikse paaiemente by te bring. Hoewel die meerderheid van beide steekproewe toegegee het dat stygings in maandelikse paaiemente aan impulsiewe aankope te wyte was, was dit nie vir die meer ervare steekproef ‚n probleem nie. Die meerderheid van hulle het steeds die rentevrye ses maande betaalperiode benut. Beide steekproewe was tevrede met winkelkaarte en het aangedui dat hulle sonder huiwering weer die fasiliteit sou bekom indien hulle opnuut 'n keuse kon uitoefen. Albei steekproewe het aangedui dat hulle winkelkaarte as 'n betaalmiddel sal aanbeveel omdat dit gerieflik is om te gebruik, rentevrye krediet bied en handig is tydens krisistye. Resultate toon dat winkelkaartgebruikers dit moelik vind om van die fasiliteit afstand te doen as hulle daaraan gewoond is. Nadat kaartrekeninge afgelos is begin verbruikers die fasiliteite redelik gou weer gebruik wat bevestig dat dit moelik is om selfkontrole oor aankoopgedrag uit te oefen en dat kaarthouers vir hulleself streng reëls behoort te stel om aankope te beheer. 'n Toename in die maandelikse paaiemente Alet C Erasmus and Kethuswegape Lebani 59 van beide steekproewe en die feit dat hulle erken dat impulsiewe aankope en swak beplanning die belangrikste redes is daarvoor, bevestig 'n feitlik onvermydelike gevolg van kaarteienaarskap. Winkelkaarte behoort dus met groter omsigtigheid toegestaan te word en kredietlimiete behoort gereeld gekontroleer te word om onverantwoordelike gebruik daarvan te ...

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Determinants of credit card debt: Differentiating between revolving credit debt and petty installment loan in China

Wang

Malhotra

Lü

2014

J of Consumer Behaviour

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This research explores the determinants of the probability of having credit debt, as well as the determinants of the severity of credit card debt. Credit card debt includes revolving credit debt and petty installment loan. The severity of credit card debt was measured by the duration of revolving credit debt and the amount of petty installment loans. Analysis of behavioral data from a Chinese commercial bank showed a significant difference between the determinants of the probability of having credit card debt and the determinants of the severity of credit card debt. Specifically, credit limit, gender, length of ownership of a credit card, and the total credit card expenditure were closely related to the likelihood of having revolving credit debt and to the duration of revolving credit debt. However, age, the square of age, credit ranking, and risk ranking were significantly correlated with the likelihood of having revolving credit debt rather than the duration of revolving credit debt. Credit card balance had a special influence on the duration of revolving credit debt. Compared with revolving credit debt, petty installment loan had few significantly related factors. Both age and the square of age could significantly predict both the likelihood of having petty installment loan and amount of petty installment loan. Credit ranking, risk ranking, and gender predicted the likelihood of having petty installment loan but did not correlate with the amount of petty installment loan. The frequency of petty installment use was closely related to the amount of petty installment loan. Copyright © 2014 John Wiley & Sons, Ltd.

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Consumers’ Use of Credit Cards: Store Credit Card Usage as an Alternative Payment and Financing Medium

Cited by 69 publications

References 20 publications

Consumers’ Perceptual Biasness in Debit Cards of Indian Banks

Consumers’ Perceptual Biasness in Debit Cards of Indian Banks

Consumers’ use of and satisfaction with store cards

Determinants of credit card debt: Differentiating between revolving credit debt and petty installment loan in China

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