A STUDY ON THE PERCEPTIONAL LEVEL

OF CONSUMER SATISFACTION
(WITH REFERENCE TO CREDIT CARD USER)

Project report submitted to the SRM Institute of Science and Technology

(Deemed to be University), Chennai
In partial fulfillment of the requirements for the award of the Degree of

MASTER
IN
COMMERCE

Submitted By
GANESH G
Register Number: DC2332307010001

Under the guidance of

Dr.A.JALALUDEEN
M.Com., MBA., NET., SET(COM)., SET(MGT)., (Ph.D)
Head of the Department

DEPARTMENT OF COMMERCE
DIRECTORATE OF DISTANCE EDUCATION
SRM INSTITUTE OF SCIENCE AND TECHNOLOGY
(Deemed to be university u/s 3 of UGC Act, 1956)

CHENGALPATTU–603203

DEC - 2024
 CERTIFICATE
This is to certify that the Project Work entitled “A STUDY ON PERCEPTIONAL LEVEL

OF CONSUMER SATISFACTION (with reference to credit card user)”submitted by

G.GANESH (DC2332307010001) of Master of Commerce, College of Science and

Humanities, SRM Institute of Science and Technology, Kattankulathur is a Bonafide Record

of ProjectWork carried out by her inpartial fulfilment of the requirement for the award of

degree of Master of Commerce.

RESEARCHSUPERVISOR HEADOFTHEDEPARTMENT

INTERNALEXAMINER EXTERNALEXAMINER
 DECLARATION

I here by declare that the Project Work entitled “A STUDY ON PERCEPTIONAL

LEVEL OF CONSUMER SATISFACTION (with reference to credit card user)”

submitted by me for partial fulfilment of the degree of Master of Commerce (M.Com) under

the guidance of Dr.A.JALALUDEEN, Head &Assistant Professor of Commerce,

Directorate of Distance Education, SRM Institute of Science and Technology is my original

work and has not been submitted earlier to any other University/Institutions.

The matter presented in this project report has not been submitted else where for the award

of any other degree/diploma. I declare that I have faithfully acknowledged, given credit to

and referred to there search workers wherever their works have been cited in the text and

the body of the project I further certify that I have not willfully lifted up some other’s

work, Para, text, data, results, etc., reported in the journals, books, magazines, reports,

dissertations, theses, etc., or available at web-sites and have not included them in this

project report and cited as my own work.

Place:

Date: (GANESH.G)
 ACKNOWLEDGEMENT

I wish to record my gratitude with my hands folded to Almighty for making me

successfully complete my project report.

I express my deep sense of gratitude to the Director Dr. ManorajanPonram, for their

whole hearted support and encouragement.

I am very much obliged and indebted to Head of the Department. Mr.A.JALALUDEEN

For giving her valuable suggestions and making this project a successful one.

I am ineffably indebted to my Course Coordinator and Research Supervisor Mr.

A.JALALUDEEN forher continuous guidance and encouragement to complete my Project

Work in a successful manner.

I am also thankful to all the faculty members of Department of Commerce for their support

and Guidance.

I also acknowledge with a deep sense of reverence,my gratitude towards my parents and

members of my family who have always supported me morally as well as economically.

I take this opportunity to thank all those who have helped me to complete my Project Work

within the scheduled time.

 TABLEOF CONTENTS

CHAPTERNO CHAPTERS PAGE NO

1 Introduction 1-14

2 Literaturesurvey 15-19

3 ResearchMethodology 20-21

4 Dataanalysisand Interpretation 22-40

Findings,Suggestionsand
5 Conclusion 41-61

Bibliography 62-64

Appendix 65-70
 LISTOFTABLES

S NO TABLENAME PAGE NO

Thegenderspecificationofthe
4.1 respondent 20

Agegroupoftherespondent
4.2 21

Maritalstatusofthe
4.3 respondents 22

Educationalqualificationofthe
respondents 23
4.4

Occupationoftherespondents
4.5 24
 Incomegroupofthe 25
4.6 respondents

Customerpreferencesoncredit 26
4.7
cards

Numberofcreditcards 27
4.8
customer use

Howlongyouhavebeenusing 28
4.9 the credit cards

Typeofcreditcarddoyouown 29
4.10

Category of credit card 30

4.11 customercurrentlyusing

Whycustomerspreferredtouse 31
4.12
credit cards

Usingcreditcardby 32
4.13
customerpermonth

4.14 Paymentofcreditcardpermonth 33

Creditcardusagehabitsof
4.15 34
respondents

Satisfactorylevelofrespondentsfor
4.17 36
the keyfeatures of credit card
 LISTOFCHARTS

SNO CHARTNAME PAGE NO

4.1 THEGENDERSPECIFICATIONOF 20
THE RESPONDENT

4.2 AGEGROUPOFTHERESPONDENT 21

4.3 MARITALSTATUSOFTHE 22
RESPONDENTS

4.4 EDUCATIONAL QUALIFICATIONOF 23

THE RESPONDENTS

4.5 OCCUPATIONOFTHE 24
RESPONDENTS
 INCOMEGROUPOFTHE
4.6 RESPONDENTS 25

4.7 CUSTOMERPREFERENCESON 26
CREDIT CARDS

NUMBEROFCREDITCARDS 27
4.8 CUSTOMER USE

HOWLONGYOUHAVEBEEN 28
4.9 USING THE CREDIT CARDS

TYPEOFCREDITCARDDOYOU 29
4.10 OWN

4.11 CATEGORY OF CREDIT CARD 30

CUSTOMERCURRENTLYUSING

4.12 WHYCUSTOMERSPREFEREDTO 31
USE CREDIT CARDS

4.13 USING CREDIT CARD BY 32

CUSTOMERPERMONTH

4.14 PAYMENTOFCREDITCARDPER 33
MONTH
 CREDITCARDUSAGEHABITSOF 34
4.15 RESPONDENTS

4.16 USINGCREDITCARDSFOR
ONLINE SHOPPING 35

SATISFACTORY LEVEL OF
4.17 RESPONDENTSFORTHEKEY 38
FEATURES OF CREDIT CARD
 CHAPTER–1
INTRODUCTION

Credit cards have become anessentialpart of daily financialtransactions for many

consumers worldwide. With the increasing use of credit cards, it has become crucial to
evaluatethelevelofconsumersatisfactionwithcredit cardservices.Customersatisfaction is a
vital factor that determines the success of a business, and it is no different for credit
cardcompanies.Ahighlevelofcustomersatisfactioncanleadtoincreasedloyalty,positive
word-of-mouthmarketing,andultimately,increasedrevenueforthecompany.Ontheother
hand, low customer satisfaction can lead to negative reviews, decreased loyalty, and
reduced revenue. This study aims to evaluate the perception of consumer satisfaction
among credit card users. The study will explore the factors that influence consumer
satisfaction, including customer service, rewards programs, interest rates, fees, and credit
limit.Theresearchwillutilize bothprimaryandsecondarydatasources,includingsurveys and
data fromcredit card companies and industryreports. The studywill also analyze the
impact of demographic variables such as age, income, and education level on consumer
satisfaction levels. Overall, the findings of this study can provide credit card companies
with valuable insights into improving their services and increasing customer satisfaction
levels. Additionally, thestudycanalso benefit consumersbyprovidingthemwitha better
understandingofthefactorsthatinfluencetheirsatisfactionlevelswithcreditcardservices.

HISTORYOFCREDITCARDS

The concept ofcredit canbe said to date back to at least 5,000 years ago inancient
Mesopotamia. Inscriptions on clay tablets from that time period show a record of
transactions between Mesopotamian and neighboring merchants from Harappa, and are
among the earliest knownexamples ofanagreement to buysomething inthe moment but
payfor it later.Fast forwardthousandsofyears, andtheseancient I.O.U.sgavewaytothe

1
earliest versions of store cards, where merchants in the Old West would issue goods to
farmers and ranchers who wouldn’t have the money upfront to buy the supplies. The
merchants would issue metal coins or small plates as a receipt of the loan and, as the
farmers harvested their crops and ranchers sold their livestock, they would repay the
merchant. Over time, these placeholders for payment-in-full evolved in the U.S. into
versions that more closely resemble the cards we know today.

A credit card is a type of credit facility, provided by banks that allow customers to
borrow funds within a pre-approved credit limit. It enables customers to make purchase
transactions on goods and services. The credit card limit is determined by the credit card
issuerbasedonfactorssuchasincomeandcredit score,whichalso decidesthecredit limit.
Acreditcardisathin,plastic, machine-readablecardwithwhichthecardholdercancharge
purchases, obtain cash loans at an ATM, etc.

Customersatisfactionreferstotheextenttowhichcustomerarehappywiththeproduct and
services provided by a business. Customer satisfaction levels can be measured using
survey techniques and questionnaires. Customer satisfaction is the perception of the
customer that the outcomes of a business transaction is equal to or greater than his/her
expectation.

Customer Relationship Management (CRM) provides the effective customer service.

To run a valuable customer service function, professionals working in the customer-
focused businesslike help-deskandcallCentreshould informaboutthe latest satisfaction
techniques is important to develop a valued relationship with customer using CRM is
essential to support customer and long-term business growth.

2
 GENSIES OFCREDITCARDTECHNOLOGY

A major breakthrough in credit card technology in the 1960s was a catalyst in

popularizing credit cards as a payment method. An IBM engineer named Forrest Parry is
creditedwithaffixingmagnetictapetothebackofcardssothat consumerscouldhavetheir
information“swiped”atapoint-of-saleterminal.Magnetictapewasoriginallyusedtostore
audio information and Parry was tinkering with ways to have it contain cardholder
information to put on a credit card. Legend has it that Parry’s wife, who was ironing,
suggested he ironthetapeontothe cardandtheswipestripewas born. Withtechnological
advancescome those whotryto exploit them. Ascredit cardsgained inpopularity, so did the
swindlers who used their own methods to make false charges using others’ card
information. The easyaccess ofswiping a card meant thieves could use a cardtheyfound
orstole. Moresophisticated fraudstersdevelopedaprocessknownas“skimming”wherea thief
could skim the information with their own reader to steal the cardholder’s information.

3
 A safer technology was developed in France in 1984 when microprocessors were
embedded into cards that could be read by specialized payment terminals. By 1994, all
credit anddebit cardsinFranceemployed thistechnologywhich, combinedwithaPIN,or
personal identification number, added extra layers of protection to the payment process.
Soon other countries developed their own credit card chip systems, but since the card
readers were not interchangeable it means someone traveling to another country would
havetohavetheircardswiped insteadofhavingthechipread.Theneed forastandardized
paymentsystembecameaglobalissueand in1994threeinternationalpayment processors, Euro
pay, MasterCard and Visa began the development of a global chip specification for
payment systems. By 1996, the first specifications for EMV chips were released, with
subsequent versions released afterwards. The most significant advance in the credit card
chip industry came with the advent of contactless payment systems where a credit card’s
chip could be read by holding it near to anenabled payment terminal. This could be done
with Near Field Communication (NFC), a type ofradio frequencythat was used so that a
card’s chip and the point-of-sale terminal could “talk” to each other. Eventually, card
information could be stored in smartphones and wearable devices and read by terminals
using the same NFC technology.

OPERATIONMECHANISMOFCREDITCARD

Whenyoudipyourchip-enabledcardintoapaymentterminal,orwaveyourcard
information to make a contactless payment there is a brief back-and-forth conversation
between your card’s issuing bank and the merchant’s bank where it is determined if you
have enoughcredit left on your cardto complete the transaction, ifthe transactionshould be
authorized and other technical details required to complete the transaction. This
information being exchanged is encrypted to prevent it from being accessed by
sophisticatedscammerswhomayemploytechniquestotryandget authorizationinformati

4
 CREDITCARDSANDCREDITSCORES

Anyonewhohasacreditcardorothertypeofbankloanhasacreditscore.That three-
digit number can determine everything from your likelihood of approval on a new
loantowhattypesofratesyou’llbeoffered.Thiscanaffect notjust yourcredit cardAPRs but the
interest you’ll be charged on other types of loans like mortgages, auto loans and student
loans. Credit scores and credit reports are used as a type of financial identity to
identifyyourcreditworthinessbasedonyourhistoryofhandlingloans.Thisincludesthings
likehowmuchdebt you’vetakenonrelativetoyourmaximumcredit limit,yourhistoryof on-
timepaymentbehaviorandhowmanynewloans you’veopenedwithinarecent period of time.
For most of history, loans were based on reputation. A lender would decideif a
potentialborrower wasapprovedbasedonword-of-mouthreputationorsimplybyhowthe
lenderjudgedthecharacterofthepersonseekingaloan.Thatallchangedinthe1950swhen
engineer William Fair and mathematician Earl Isaac created a standardized system of
assessing someone’s creditworthiness based on an impartial scoring system. Originally
knownastheFairIsaacCompany,today’sFICOscorefirstdebutedin1989andhasascale of 300
to 850. A FICO score is based on payment history, amounts owed, and length of credit
history, types of credit used and recent credit inquiries. Although there are many different
iterations of FICO scores and different versions have been released since its founding, the
FICO score generally remains the standard way of identifying someone’s credit standing.

CREDITCARDSTODAY

Credit card legislation over the past few decades has provided a number of valuable
andmeaningfulprotections,helpingtocurbabusesbyissuersandprotectcardholdersfrom
incorrect and fraudulent activity on their accounts. But consumer advocates say there’s
more stillto be done. For example, some issuers stilluse deferred interest incombination
with an introductory0% APR offer. This means that if the cardholder doesn’t payoff the
entirebalancewithinthepromotionalperiod,they’llalsoberesponsible for paying interest

5
retroactively fromthe time they made the purchase, making the initial purchase far more
expensive. No law isperfect however, and it’sundeniable that the legislationcurrently in
placehasprovided much-neededsafeguardsinahundredbilliondollar industry. Ascredit card
technology continues to advance, so too will the need to adapt and evolve the laws
governing against abusive practices.

THEFUTUREOFCREDITCARDS

Likeanytechnology-basedindustry,advancementsincreditcardscontinuetoshape the
future of both how they’re used by consumers and what issuers can offer. One of the
latest innovations in the payment industry combines block chain technology with credit
cardsinseveralways. Somecardsoffer cryptocurrencyasarewardsoptioninsteadofcash back
or points. In some cases, a credit card can be used to purchase select shares of
cryptocurrency. And from the business side, the indelibility of using block chain
technologyas a recording ledger may very likelyreplace the way issuers currently record
transactions.Contactlesspaymenttechnology, whichsawasurge inuseduetoCovid,will
likelycontinueto growinpopularitywithusers shifting awayfromtraditionalcreditcards
towardsmobilewalletsandwearabledevices.Artificialintelligencewillcontinuetoevolve and
play a greater role in how issuers determine risk when assessing a credit card
application,likelycontinuingto shift awayfromthe limited datapointsprovided bycredit
reports and incorporating more holistic information about an applicant.

TYPESOFCREDITCARDS

There are several different types of credit cards aimed at fulfilling a specific
consumer need. Generally speaking, cards typically fall into one of the following
categories,

 Rewardscards.Theseofferapercentagebackonyourspending,eitherascashback, points
or miles depending on the particular card. These rewards can either be the same
flat-rate on all of your spending, or varying amounts depending on the specific
type of purchase.

6
 Low-interestcards.Thesecardsofferabreakoninterestrates, usuallyanintroductory 0%
APR on purchases, spendingor both. These cards can be a useful way to save on abig
purchase or help pay down debt faster if used as a balance transfer card.
 Credit building cards. Someone new to credit or who had credit missteps in their past
whomaynotqualifyforacardwithgenerousrewardsorpromotionalAPRoffersmay
wanttolookforacarddesignedtohelpbuilduptheircreditscorethrough responsible
paymentbehaviors.Thiscanincludestudentcreditcards,securedcreditcardsandcards that
usealternative data toreview an application.

ELIGIBILITYCONDITIONSFORCREDITCARD

You are eligible to apply for a credit cardonlyif you meet the following creditcard
eligibilityconditions,

 YouareanIndian citizen,atanageequaltoormorethan18years.
 Youareeitherasalaried professionalorself-employed.
 Youhaveafixedmodeofincome(specificconditionsvaryfrombankto bank).
 Youhave agoodcredit score(700 ormore).

Variousbanksorfinancialinstitutionsgothroughyourfinancialbackgroundsandreview your
credithistory,consideringwhichtheyoffer youtobuyacredit cardfollowingasimpleprocess.
These cards are termed pre-approved credit cards. Additionally, there are also various tools
like credit card eligibility checkers that help you check credit card eligibilityonline in a few
minutes.

7
 DOCUMENTREQUIREDFORCREDIT CARD

Thefollowingsarethedocumentsrequiredtoapplyfor thecreditcard,

 IDProof(PANCard,AdhaarCard,PassportorVoter’sID).
 AddressProof(AdhaarCard,ElectricityBill, orTelephoneBill).
 IncomeProof(Salarycertificate,Salaryslip,Employmentletter,ITR
statement).

FEATURESOFCREDITCARD

 A credit card comeswith a bank-approved credit limit. This limit defines the
amount that the credit holder can spend using that card.
 The credit amount must be paid back by the holder to the bank on the due date,
which is mostly after 30 days of making the purchase,
 The limit on the credit card is decided by your bank, depending on your credit
scoreand credit history.
 Initsappearance,acreditcardisathin,rectangular,plastic,ormetalcardthatcanbe
swiped to make payments.
 Each credit card has a grace period, which is the time in which you should repay
the amount borrowed from your credit card limit to the bank. Along with this
gracetimeperiod,youalsoget15-20days’timebetweenthedatewhenyoureceive your
statement and the due date for making the payment. Hence, you get around 45-50
days for making the payment of your credit card.

8
 MERITSOFCREDITCARDS

 Credit cards are a great way to build a good credit history for yourself and
expandyour buying power.
 Usingacreditcardoffersyouincreasedflexibilitywhilemakingpayments.
 Havingagoodfinancialhistorywillhelpyouestablishagoodcreditscore,thereby
making you eligible for availing the benefits ofother financialproducts like loans
and mortgages.

 Asyouuseacredit cardfrequently, youcancollectsomepointsoneverypurchase that

you make. These points can later be redeemedwhile making payments on travel or
other e-commerce platforms.
 Ascomparedtoothermodesofpayments,creditcardsareconsideredamoresecure way
of making financial transactions.
 Ifthe needarises, youcanalso convert yourcredit purchasesinto EMIs and repay the
billed amount gradual

LIMITATIONSOFCREDITCARDS

 A credit card is issued with the condition of paying back the spent amount to the
bank, along with the applicable amount of interest on the money spent.
 If somehow, you fail to make your credit payments to the bank in time, you will
havetobearfeesowingtohighcreditcardinterestrate;whichmayeventuallylead you to
fall in debts.
 Missing out on your credit payments to the bank, or even maximizing your credit
payments may drop your credit score.

9
 CHARACTERISTICSOFCREDITCARDS

Credit cards are far from being one and the same, and comparing credit card options can
be challenging but necessary if you want to choose the best one. What is goodfor one
customer isnot alwaysgoodfor another,thereforeit isabsolutelyessentialto consider all the
range of factors suchas interest rate, fees, rewards and member benefits. Here are six key
factors of a credit card you should search for and compare before signingup for the credit
card offer.

 Acreditcardcomeswithabank-approvedcreditlimit.Thislimit definesthe
amount that the credit holder can spend using that card.
 The credit amount must be paid back bythe holder to the bank on thedue date,
which is mostly after 30 days of making the purchase.
 Thelimitonthecreditcardisdecidedbyyourbank,dependingonyourcredit score
and credit history.

 Initsappearance,acreditcardisathin,rectangular,plastic,ormetalcardthatcanbe
swiped to make payments.
 Each credit card has a grace period, which is the time in which you should repay
the amount borrowed from your credit card limit to the bank. Along with this
gracetimeperiod,youalsoget15-20days’timebetweenthedatewhenyoureceive your
statement and the due date for making the payment. Hence, you get around 45-50
days for making the payment of your credit card.

10
 STATEMENTOFTHEPROBLEM

The problem addressed in this study is to investigate the perception of consumer

satisfaction levels among credit card users. Although credit cards have become a widely
usedformofpaymentglobally,thereisalackofunderstandingofhowconsumersperceive the
satisfaction level of credit card services provided by various banks and financial
institutions. Therefore, this study aims to identify the factors that influence consumer
satisfaction levels with credit card services and examine the relationship between these
factors and overall satisfaction levels.

11
 NEEDFORTHESTUDY

The need for the study on customer satisfaction among credit card users is
crucial due to several reasons. Firstly, customer satisfaction is a critical factor for credit
cardcompaniestoremaincompetitive inthe market.Understandingwhat drivescustomer
satisfaction can help credit card companies tailor their offerings to meet customer needs
and preferences, ultimately leading to increased customer loyaltyand retention.

Secondly, customer satisfaction levels can significantly impact the financial performance
ofcreditcardcompanies.Lowcustomersatisfactionlevelsmayleadtoincreasedcustomer
complaints, higher churn rates, and decreased revenue. Hence, this study identifies areas
Where credit card companiescan improve their servicesto enhance customer satisfaction
levels is essential for their financial sustainability.

12
OBJECTIVESOFTHESTUDY

Themainobjectiveofthestudyfocusesontheperceptionofconsumer satisfaction
level among credit card users. Specifically, the studyaims to,

 Identifythefactorsthatinfluencethesatisfactionlevelofcreditcardusers.
 Determine theextentofsatisfactionamongcreditcard users.
 Analyze the relationship between customer service, credit card fees
andcharges, rewards and benefits, and overall satisfaction ofcredit card
users.
 Provide recommendations to credit card companies to improve
customersatisfaction and retention.

13
 SCOPEOFTHE STUDY

Thescopeofthestudyontheperceptionofcustomer satisfactionamong credit card users

refers to the specific parameters and boundaries that the research will cover. The
studywillfocusoncreditcardusersandtheirsatisfactionlevelsinusingtheircreditcards. The
research willanalyze factorsthat influence customer satisfaction, such as the quality
ofcustomer service, ease ofuseofcredit cards, interest rates,reward programs, and other
related features.

Thisstudywillinvolve collecting data froma setofpopulationofcredit cardusers,which may

varydepending onthe researchobjectives. The data collection methods may include
surveys, interviews, focus group discussions, and other forms of primary research. The
scopeofthestudywillalsospecifythegeographicallocation,samplesize,anddataanalysis
techniques to be used.

Additionally, the study's scope may encompass specific credit card providers or brands,
dependingontheresearchobjectives.Thestudywillaimto identifyareaswherecredit card
companies can improve their services to enhance customer satisfaction and loyalty.
Ultimately, the scope of the study will define the specific goals and objectives of the
research,andthefindingswillbeusedtodeveloprecommendationsforcredit card

companiestoimprovecustomersatisfactionlevels

14
 CHAPTER–2

LITERATURESURVEY:
INTRODUCTION

This chapter introduces the various factors which were found to have influences onthe
customerbehaviour,inparticular,the leveloftheir credit cardusageand satisfaction. Itis
basedonthefindingsfromearlierstudieswhichwillbehelpfultothepresentstudy.Survey
ofrelatedliteratureformsanimportantaspectofthisresearchsince it helpstheresearcher get
acquainted with current knowledge of thefields in which the research is carried out. The
researcher had gone through many previous studies, articles about the various dimensions
of credit card usage and satisfaction. It has played an important role in identifying and
formulating the researchproblemand incarrying out this work. Tilldate, no major text or
paper has beenpublished in India inthisarea except for IndianBankers Association
whohave done some job in this relation. The literature survey helps in formulating the
objective of the studyand it as well shows the path for proper research work, basedon
these objectives.

REVIEWOFLITERATURE

SODHA BHARGAV K, (2023), “Impact Of Credit Cards In Consumer’s Life With

Reference To Surat City, Gujarat”, The use of credit cards can have both favorable and
unfavorable effects on consumers. On one hand, credit cards offer flexibility and
conveniencewhenmakingpurchasesandcanassistinestablishingapositivecredithistory,
whichcan beadvantageousinthe future. Moreover, manycredit cardscome with rewards
and other perks for users. On the other hand, credit cards may encourage impulsive
purchases and excessive spending, leading to financial debt. It

15
is crucialfor consumers to be conscious ofthe potential advantages and disadvantages of
using credit cards and to use them prudently by monitoring their expenditures, settling
their bills promptly, and keeping their balances low.

Dr.S.SUDHAGAR, (2012),“A Study on Perception and Awareness on Credit Cards

amongBank Customers in KrishnagiriDistrict’’, Acredit card isa formof payment that
involvesa smallplastic card issued to users. Byusing a credit card, the holder can make
purchasesforgoodsandserviceswiththepromisetopayfor themlater.Theissuerofthe
cardestablishesarevolvingaccount andextendsa lineofcredit totheconsumer or user, who
can then borrow money to pay merchants orobtain cash advances.

SITIRAHAYUHUSSIN,SALINAKASSIMANDNURAIENJAMAL,
(2013), “Credit Card Holders in Malaysia: Customer Characteristics and Credit Card
Usage”, This study aims to profile credit card users in Malaysia by exploringthe
relationshipbetweentheircharacteristics(demographicsandsocio-economicfactors)and
credit cardusage. Asurveywasconductedusingaconvenient samplingmethod, and 350
credit card holders in the Klang Valley, Malaysia, were includedin the study. The
customer background variables analyzed include gender, age, occupation and monthly
gross income. The findings of this study can provide valuable insights for developing
customer profiles and revising credit card promotional strategies in Malaysia.

A. ANTO BRIGHT PRABHU, (2014), “AStudyonUsage ofCredit Card System”, A

credit card isa payment systemthat involvesa smallplastic card issuedto users.The
card enablesthe holder to purchase goodsand servicesby promising to payforthem
later. The company that issues the card creates a revolving accountand provides the
cardholder with a line of credit that can be used to paya merchantor obtain a cash
advance.

16
Dr.M.SUREKHA,Dr.UMESHU,Dr.D.PAULDHINAKARAN,(2022),“A
study on utilization and convenient of credit card”, A credit card is a small plastic card
thatenablesitsholdertopurchasegoodsandservicesbasedonapromiseto payforthem.
Thecardissuerestablishesarevolvingaccountandextendsalineofcredittothecustomer, who
can then use the card to pay a vendor or receive cash advances. In our study, we examine
the impact ofusing credit cards versus cash onthe lunch spending behavior of insurance
companyemployees inthe cafeteria. By incentivizing some dinersto paywith a credit
card, we experimentally switched their payment medium from cash to credit.
Interestingly, we discovered that creditcards do not lead to an increase in spending.

Dr. PRADIPTA MUKHOPADHYAY, (2022), “A Case Study on Credit Cards with

Respect to India”, The objective of this paper is to examine the history and distinctive
characteristics of credit cards, as well as their relevance in contemporarysociety with a
focusonIndia.Ourstudyemploysacasual,exploratory,andempiricalapproach,utilizing both
direct and indirect methods of data collection togather the necessaryresearch data.

Dr. T. PRIYADHARSHINI, MS.R.PRIYANKA (2021), “A study on credit card

utilizationofcreditcardwithreferencetoCoimbatorecity”,Thisstudyaimsto assessthe level
of consumer satisfaction with credit card usage in Coimbatore city.The data was
gatheredthroughasurveythatincludedaquestionnairecompletedby120participants.The
projectemployedvariousanalyticaltoolssuchassimplepercentageanalysis,Likertscale
analysis,andrankanalysis.Thestudyrevealed thatcustomersfrequentlyusecredit cards for
shopping purposes and expect a low rate of interest. These findings led to the
conclusionthatcustomersaregenerallysatisfiedwiththeircredit cardusageforshopping.

DIVYA E, Dr. C. KARTHICK ,(2021) , “ A Study on Customer Preference and

Satisfaction towards using credit cards with special reference to Coimbatore city”
,Thisstudyaimstoexplorecustomersatisfactionandtheirpreferencesregarding

17
credit cards. The research aims to gather valuable and timely information about the
customer’s preferences and needs. Specifically, this study seeks to analyze customer
satisfaction levels and determine consumer preferences towards the use of credit cards.
The questionnaire method wasusedto gather responses from150 customersselected for
the study.

Dr. V. DEVAKI, (2019), “A Study on Usage of Credit Card System with Reference to
Coimbatore”, A credit card is a payment systemthat involves a smallplastic card issued
to users. The cardholder can purchase goods and services with the promise to pay for
them. The card issuer establishes a revolving account and extends a lineofcredit to the
consumeroruser,whocanthenborrowmoneytopayavendororobtaincashadvances.To
prevent fraud and card misuse, the bank mustutilize advanced technology.

APARNAJAYARAJ,(2019),“Astudyonconsumer’sattitudetowardsplastic money”,
Theobjectiveofthispaperwastoexamineconsumers'preferencesandchoicesregarding the
use of debit and credit cards. The study aimed to identify thespecific areas where
consumers tend to use these cards more frequently and whichcard they prefer for
payments. Additionally, this research sought to understand thefactors that influence
individuals to possess and use debit and credit cards and theirattitudes towards them.
Throughthisstudy,weaimedtogaininsightintocardholders'attitudestowardsdebit and credit
cards.

Dr. KUMUDHINI. R, (2018), “Impact of attitude on buying behaviour of credit card

users”,Thepurposeofthis studyis to investigatethe impact ofattitudeonthepurchasing
behaviorofcredit cardusers.The samplesizecomprised 538credit cardusers selected at
random from Chennai. Previous literature has identified attitude as acritical factorthat
influencesbuying behavior. Theresearcherdevelopedaself-administered questionnaire to
assess the level of attitude among credit card users anddistributed it totheparticipants.
The findings ofthe studysuggest that attitudes,

18
including mental, emotional, and rational predispositions, significantly contribute to
buying behavior among credit card users.

Prof.AVINASHGHADAGE,Prof. JYOTIVIPULHOWALE,Dr.MEETALI
PRASHANT MORE (2015), “The studyand analysis of individual extent of utilization
of credit cards with reference to commercial banks in and around Pune city In essence,
thecredit cardsystemallows individualstoobtaincreditthrough hirepurchase, enabling
cardholdersto makepurchasesoncredit up to apredeterminedamount agreeduponwith the
credit card company, byusing the cardinstead of cash. Credit cards are commonly
referred to as "convenient money" or "plastic money." This studyaims to examine the
extent to whichthisservicereachescustomers, their feedback on the use of credit cards,
their attitudes towards using them, and the challenges they face inusing them.

19
 CHAPTER–3
RESEARCHMETHODOLOGY:
RESEARCHDESIGN
Research design is a frame work or blue print for conducting the research project.It specifies
thedetailsoftheproceduresnecessaryforobtainingtheinformationneededtostructureand/or solve
research problems. Research design taken in this study is Descriptive Research.

TARGETRESPONDENTS
The target respondents for the consumer satisfaction among credit card users couldbe
individualswhoarecurrentlyusingacredit cardorhaveusedoneinthepast.Thesamplecould be
selected based on factors suchas age, income level, education, and geographic location. It
could include bothmaleand female individualsfromdifferent agegroups, income levels,and
educationalbackgroundsresiding indifferent partsofthecountry. Thesampleshould be large
enoughtoensurethattheresultsarestatisticallysignificantandrepresentativeofthepopulation of
credit card users.

SAMPLINGMETHODOLOGY
The studyisbasedonprimaryandsecondarydata.

 PRIMARYDATA

Thestudywasconductedwiththehelpof120respondentscollectedfromthe customers
using credit cards.
 SECONDARYDATA
Secondary data are those which have already been collected by some otherperson
for their purpose and published. Secondary data are usually used in this studyare,

20
  Books/Journals.
 Periodicals/Articles
 Magazines.
 Websites.

SAMPLETECHNIQUE
 Percentageanalysis.
 Weightedaveragemethod

LIMITATIONS

 Surveysandfeedbackonlycapturedalimitedrangeofcustomerexperiencesanddoesnotcapture all the

factors that influence customer satisfaction.
 Customersatisfactionmay beinfluencedby customerexpectations,whichmay differacross
different segments and may change over time.
 Thesamplesizehasbeenrestrictedto120respondents.

Overall, while measuring customer satisfaction can provide valuable insights, it is important to
acknowledge the limitations and consider additional data sources and factorsto obtaina complete
understanding of customer experiences and satisfaction with creditcards

21
CHAPTER–4
DATAANALYSIS&INTERPRETATION
TABLE4.1
THEGENDERSPECIFICATIONOFTHERESPONDENT
PARTICULARS FREQUENCY PERCENTAGE
Male 61 50.8
Female 59 49.2
Total 120 100
(Source:constructedbasedontheinterviewschedule)
Theabovetabledisplaysthegenderdistributionof120respondentsinastudy.Out of the
total respondents, 61 were male (50.8%) and 59 were female (49.2%). The sample has a
nearly equal representation of males and females, with a slightly higher proportion of
males. This informationis valuable for researchers who want to ensuregender balance in
their sample or for analyzing gender differences in the perspectives or behaviors of the
participants.

CHART4.1

GENDER
120
120 100
100
80 61 59
50.8 49.2
60

40
20

MALE FEMALE TOTAL

FREQUENCY PERCENTAGE

22
 4.2 TABLE
AGEGROUPOFTHERESPONDENT
PARTICULARS FREQUENCY PERCENTAGE
18orbellow 5 4.2
19-25years 76 63.3
26-40years 29 24.2
41andabove 10 8.3
Total 120 100
(Source:constructedbasedontheinterviewschedule)

Theabovetableshowstheagegroupdistributionof120respondentsinastudyor
survey.Outofthetotalrespondents,5(4.2%)were18orbelow,76(63.3%)werebetween
19 and 25 years, 29 (24.2%) were between26 and 40 years, and 10 (8.3%) were 41years
or above. The majority of respondents fall within the 19-25 year age group, while the
smallest proportion of respondents were 18 or below. This information can be useful for
researchers who want to understand the age distribution of their sample or to examine
potential age-related differences in the perspectives or behaviors oftheir participants.

CHART4.2

AGE
140
120
120
100
100
80 76
63.3
60
40 29
24.2
20 10 8.3
4.2

18ORBELLOW 19-25YEARS 26-40YEARS41ANDABOVE TOTAL

FREQUENCY PERCENTAGE

23
 TABLE4.3
MARITALSTATUSOFTHERESPONDENTS
PARTICULARS FREQUENCY PERCENTAGE
Single 89 74.2
Married 29 24.2
Divorced 2 1.6
Total 120 100
(Source:constructedbasedontheinterviewschedule)

Theabovetableshowsthemaritalstatusdistributionof120respondentsinastudy
orsurvey.Outofthetotalrespondents,89(74.2%)weresingle,29(24.2%)weremarried, and
only 2 (1.6%) were divorced. The majority of respondents were single, while the
proportion of married and divorced respondents was relatively smaller. This information
canbeusefulforresearcherswhowanttounderstandthemaritalstatusdistributionoftheirsample
or to examine potential differences in the perspectives or behaviors of their participants
based on theirmarital status.

CHART4.3

MARITALSTATUS
140
120
120
100
100
80 89
60 74.2

40
20 29
24.2 1.6

SINGLE MARRIED DIVORCED TOTAL

FREQUENCY PERCENTAGE

24
 TABLE4.4
EDUCATIONALQUALIFICATIONOFTHERESPONDENTS
PARTICULARS FREQUENCY PERCENTAGE
Highschool 0 0
Highersecondary 3 2.5
Diploma 7 5.8
Bachelordegree 52 43.3
Masterdegree 54 45
Ph.D. 4 3.3
Total 120 100
(Source:constructedbasedontheinterviewschedule)
Theabovetableshows the educational qualification distribution of 120 respondents in a
studyorsurvey. Outofthetotalrespondents,noneofthemhadahighschooldegree,3(2.5%)had a higher
secondaryqualification,7(5.8%)hadadiploma,52(43.3%)hadabachelor'sdegree,54(45%)had a
master'sdegree, and4(3.3%)hada PhD.Themajorityofrespondentshada master'sdegree,while
theproportionofrespondentswithhigher secondary,diploma, andPhDqualifications wasrelatively
smaller.Interestingly,norespondentshadahighschooldegree.Thisinformationcanbeusefulfor
researchers who want to understand the educational qualification distribution of
theirsampleortoexaminepotentialdifferencesintheperspectivesorbehaviorsoftheirparticipants based
on their educational qualifications.

CHART4.4

EDUCATIONALQULIFICATION
120
120 100
100
80
52 5445
60 43.3
40
20 00 32.5 75.8 43.3

FREQUENCY PERCENTAGE

25
 TABLE 4.5
OCCUPATIONOFTHERESPONDENTS
PARTICULARS FREQUENCY PERCENTAGE
Student 54 45
Businessman 11 9.2
Workwithan organisation 44 36.7
Service 8 6.7
Self-employee 2 1.7
Housewife 1 0.8
Total 120 100
(Source:constructedbasedontheinterviewschedule)
The above table shows the occupation distribution of 120 respondents in a study
or survey. Out ofthe totalrespondents, 54 (45%) were students, 11(9.2%) were business
owners,44(36.7%)workedwithanorganization,8(6.7%)wereinservice,2(1.7%)were self-
employed,andonly1(0.8%)wasahousewife.Themajorityofrespondentswerestudents, while
the proportion of business owners and self-employed individuals was relativelysmaller.
This information can be useful for researchers who want to understand the occupation
distribution of their sample or to examine potential differences in the perspectives or
behaviors of their participants based on their occupation.

CHART4

OCCUPATION
STUDENT BUSSINESSMAN

WORKWITHANORGANISATION SERVICE
SELFEMPLOYEE HOUSEWIFE
TOTAL
120

100
54

36.7
45
44

9.2
11

6.7

1.7

0.8
8

FREQUENCY PERCENTAGE

26
 TABLE 4.6 INCOME
GROUPOFTHERESPONDENTS
PARTICULARS FREQUENCY PERCENTAGE
BelowRs.2,00,000 49 40.8
Rs.2,00,001-Rs.4,00,000 31 25.8
Rs.4,00,001-Rs.6,00,000 28 23.3
Rs.6,00,001-Rs.8,00,000 9 7.5
Rs.8,00,001&above 3 2.5
Total 120 100
(Source:constructedbasedontheinterviewschedule)
The above table shows theincome group distribution of 120 respondents in
astudyorsurvey.Outofthetotalrespondents,49(40.8%)hadanannualincomebelowRs.
2,00,000, 31(25.8%) had an income betweenRs. 2,00,001 and Rs. 4,00,000, 28(23.3%)
had an income betweenRs. 4,00,001 and Rs. 6,00,000, 9(7.5%) had an income between
Rs. 6,00,001 and Rs. 8,00,000, and only3 (2.5%) had an incomeaboveRs. 8,00,001. The
majorityofrespondentshadanincomebelowRs.4,00,000,whiletheproportionof
respondentswithhigherincomewasrelativelysmaller.Thisinformationcanbeusefulfor
researchers who want to understand the income group distribution of their sample or
toexamine potential differences in the perspectives or behaviors oftheir participants based
on their income group.

INCOMEGROUP
140
120
100
80
60
40
20

BELOWRS. RS.2,00,001-RS.4,00,001- RS.6,00,001-RS.8,00,001& TOTAL

2,00,000 RS.4,00,000 RS.6,00,000 RS.8,00,000 ABOVE

FREQUENCY PERCENTAGE

27
 TABLE 4.7
CUSTOMERPREFERENCESONCREDITCARDS
PARTICULAR FREQUENCY PERCENTAGE
HDFCbank 38 31.7
AXISbank 30 25
ICICIbank 34 28.3
Others 18 15
Total 120 100
(Source:constructedbasedontheinterviewschedule)
The above table shows the customer preference of 120 respondents about which
bank'screditcardtheyuse.Outofthetotalrespondents,38(31.7%)preferredHDFC
Bank'screditcard,30(25%)preferredAxisBank'screditcard,34(28.3%)preferredICICIBank'scr
editcard,and18(15%)preferredotherbanks'creditcards.Themajority of
respondentspreferredHDFCBank'screditcard,followedbyICICIBank'screditcardand
AxisBank'screditcard. Thisinformationcanbeusefulforbankswhowanttounderstand
theirmarketsharein thecredit cardindustryorto examinepotentialfactors thatinfluence
customers' choice of credit cards.

CHART4.7
.

120

100

80

60

40

20

HDFCBANK AXISBANK ICICI BANK OTHERS TOTAL

FREQUENCY PERCENTAGE

28
 TABLE 4.8
NUMBEROFCREDITCARDSCUSTOMER USE
PARTICULAR FREQUENCY PERCENTAGE
One 80 66.7
Two 34 28.3
Three 5 4.2
Four&more 1 0.8
Total 120 100
(Source:constructedbasedontheinterviewschedule)
Theabovetableshowsthatoutofthe120respondents,80(66.7%)useonlyone credit
card,34 (28.3%)usetwo credit cards,5 (4.2%)usethree credit cards, and 1 (0.8%) uses four
ormorecreditcards.Themajorityofrespondentsuseonlyonecreditcard.Thisinformation
canbeusefulforcreditcardcompaniestounderstandtheusagepatternsoftheircustomers
andtotailortheirmarketingstrategiesaccordingly.Additionally,this informationcanalso
helpcredit cardcompaniesto identifypotentialcustomerswho may be interested inusing
multiple credit cards.

CHART4.8

FREQUENCY PERCENTAGE
120

100
80

66.7

34

28.3

4.2

0.8
5

ONE TWO THREE FOUR&MORE TOTAL

29
 TABLE 4.9
HOWLONGYOUHAVEBEENUSINGTHECREDIT CARDS
PARTICULAR FREQUENCY PERCENTAGE
Lessthan6month 46 38.3
1-2years 49 40.8
2-4years 20 16.7
Morethan4years 5 4.2
Total 120 100
(Source:constructedbasedontheinterviewschedule)
Theabovetableshowsthatoutofthe120respondents,46(38.3%)havebeenusing
theircreditcardforlessthan6months,49(40.8%)havebeenusingtheircreditcardfor1-
2years,20(16.7%)havebeenusingtheircreditcardfor2-4years,andonly5(4.2%)have been
using their credit card for more than 4 years. The majorityofthe respondents have been
usingtheircreditcardfor1-2years.Thisinformationcanbehelpfulforcreditcard companies
tounderstandtheloyalty and retention rates of theircustomers.Creditcard companies can
also use this information to offer rewards and loyalty programs to retain customers who
have been using their credit cards for longer periods oftime.

CHART4.9

FREQUENCY PERCENTAGE
120

100
49
46

40.8
38.3

16.7
20

4.2
5

LESSTHAN6 1-2YEARS 2-4YEARS TOTAL

MONTH YEARS

30
 TABLE 4.10
TYPEOFCREDITCARDDOYOUOWN
PARTICULAR FREQUENCY PERCENTAGE
Rupay 36 30
Visa 36 30
MasterCard 39 32.5
Americanexpress 9 7.5
Others 0 0
Total 120 100
(Source:constructedbasedontheinterviewschedule)
The above table shows the type ofcredit cardowned by120 respondents. Out
ofthetotal,30%oftherespondentsownaRupaycreditcard,30%ownaVisacreditcard,
and32.5%ownaMasterCardcreditcard.Onlyasmallproportion,7.5%,ownanAmericanExpres
s creditcard,and noneof the respondents reported owning anyothertypeof credit card.
This suggests thatRupay, Visa, and MasterCard are the mostpopular choices forcredit
card users, with American Express being less common.

CHART4.10

FREQUENCY
RUPAY
15%

VISA
15%

TOTAL
50%

MASTERCARD
16%
AMERICAN
OTHERS
EXPRESS
0%
4%

31
 TABLE 4.11
CATEGORYOFCREDITCARDCUSTOMERCURRENTLYUSING
PARTICULAR FREQUENCY PERCENTAGE
Silver 46 38.3
Gold 35 29.2
Platinum 30 25
Signature 9 7.5
Total 120 100
(Source:constructedbasedontheinterviewschedule)
Theabovetableshowsthecategoryofcreditcardthatthecustomersarecurrently using.
Themajorityoftherespondents,38.3%,areusingaSilvercategorycreditcard,while
29.2% are using Gold, and 25% are using Platinum.A small percentage of respondents,
7.5%, are using a Signature category credit card. This suggests that the
majorityofthecustomersprefercreditcardsthatareinthemid-rangecategory,whichmay
havelowerannualfeesand fewerperkscompared tothehigher-endcategories. However, it
isimportanttonotethatthepreferencesmayvarybasedontheindividual'sfinancial situation,
spending habits, and lifestyle.

CHART4.11

140 120

120 100

100
80
80
60
60
40
40

20 20

SILVER GOLD PLATINUM SIGNATURE TOTAL

FREQUENCY PERCENTAGE

32
 TABLE 4.12
WHYCUSTOMERSPREFEREDTOUSECREDITCARDS
PARTICULAR FREQUENCY PERCENTAGE
Foravailingdiscount 36 30
Foravailingfreegift 21 17.5
Convenienttomake
54 45
payment
Prestige 9 7.5
Total 120 100
(Source:constructedbasedontheinterviewschedule)
Theabovetable showsthereasonswhycustomersprefertousea creditcard.The
majorityofrespondents,whichis45%,saidthattheyfinditconvenienttomakepayments
usingacreditcard.30%ofrespondentsuseacreditcardtoavaildiscounts,and17.5%use it to
availfreegifts.Only7.5%ofrespondentssaidthattheyusecreditcardsforprestige
reasons.Thisindicatesthatcustomerspreferusingcreditcardsforpracticalreasonsrather than
for social status purposes.

CHART4.12

140

120

100

80

60 120
100
40
54 45
20
36 30
2117.5 9 7.5

FORAVAILING FORAVAILINGCONVENIENTTO PRESTIGE TOTAL

DISCOUNT FREEGIFT MAKEPAYMENT

FREQUENCY PERCENTAGE

33
 TABLE 4.13
USINGCREDITCARDBYCUSTOMERPERMONTH
PARTICULAR FREQUENCY PERCENTAGE
Everyday 5 4.2
2-6timesaweek 10 8.3
Onceaweek 20 16.7
2-3timesamonth 19 15.8
Onceamonth 54 45
Onceinayear 12 10
Total 120 100
(Source:constructedbasedontheinterviewschedule)
Theabovetableshowsthefrequencyofusingacreditcardby customersper
month.Themajorityoftherespondents(45%)usetheircreditcardsonceamonth,followed
by16.7%whouseitonceaweek.15.8%ofrespondents usetheircreditcards 2-3 timesa month,
while 8.3% use it 2-6timesa week. Only4.2%ofthe respondentsuse their credit
cardseveryday,while10%useitonceinayear.Thistablesuggeststhatcreditcardusage among
respondents is not very frequent and is mostlyrestricted to occasional use

CHART4.13

140 120

120 100
100
80
80
60
60
40
40

20 20

EVERYDAY2-6TIMES ONCEA2-3TIMES ONCEA ONCEINA TOTAL

AWEEK WEEK AMONTH MONTH YEAR

FREQUENCY PERCENTAGE

34
 TABLE 4.14
PAYMENTOFCREDITCARDPERMONTH
PARTICULAR FREQUENCY PERCENTAGE
BelowRs.25,000 75 62.5
Rs.25,001–Rs.50,000 37 30.8
Rs.50,001–Rs.75,000 7 5.8
Rs.75,001or above 1 0.8
Total 120 100
(Source:constructedbasedontheinterviewschedule)
Theabovetableshowstheamountutilizedforpaymentofcreditcardpermonthby120
respondents. The majority of the respondents, about 62.5%, reported that they utilize an
amountbelow Rs. 25,000 per month for paymentof their creditcard. 30.8% of
respondentsutilizeanamountbetweenRs.25,001toRs.50,000permonth,while5.8%of
respondents reported anamount betweenRs. 50,001 to Rs. 75,000. Onlyone respondent
reported utilizing an amount ofRs. 75,001 or above per month.

CHART4.14

140

120

100

80

60 120
100
40 75
62.5
3730.8
7 5.8 1 0.8
0
BELOW RS.25,001– RS.50,001– RS.75,001OR TOTAL
RS.25,000 RS.50,000 RS.75,000 ABOVE

FREQUENCY PERCENTAGE

35
 TABLE 4.15
CREDITCARDUSAGEHABITSOFRESPONDENTS
PARTICULAR FREQUENCY PERCENTAGE
Ionlyusedomesticcredit
89 74.2
card
Ionlyuseforeigncredit
7 5.8
card
Iusebothdomestic&foreig
14 11.7
ncreditcard
Ionlyusecreditcardwhen
Itravel overseas 10 8.3
Others 0 0
Total 120 100
(Source:constructedbasedontheinterviewschedule)
Theabovetableshowsthecreditcardusagehabitsoftherespondents.Themajority ofthe
respondents(74.2%)onlyusedomesticcredit cards, whileonlyasmallpercentage (5.8%)
onlyuseforeigncreditcards. Around11.7%oftherespondentsreportedthattheyuseboth
domestic and foreign credit cards, and 8.3% of the respondents only use their credit card
when they travel overseas. It is important for credit card issuers to understand the credit
cardusagehabitsoftheircustomerssothattheycanofferappropriateproductsandservices to
meet their needs.

CHART4.15

140
120
120
100
100 89
74.2
80
60
40
20 1411.7 108.3
5.8 0 0

IONLYUSE IONLYUSE IUSEBOTH IONLYUSE OTHERS TOTAL

DOMESTIC FOREIGN DOMESTIC& CREDITCARD
CREDITCARDCREDITCARD FOREIGNC WHENITRAV
REDITCARD ELOVERSEAS

FREQUENCY PERCENTAGE

36
 CHART4.16
USINGCREDITCARDSFORONLINESHOPPING

Theabovechartdisplaysthepreferenceofrespondentstowardsusingcreditcardsfor
onlineshopping.Thedatashowsthatoutofthetotalrespondentssurveyed,88.3%preferred to
usecredit cardsforonlineshopping,whileonly11.7%did not prefertousecredit cards.
Thisdatasuggeststhatthemajorityofrespondentsfindcreditcardstobea
convenientandsecuremodeofpaymentforonlineshopping.Italsoimpliesthatcreditcard
companiesandonlineretailerscanexpectahighdemandforcreditcardpaymentsinonline
shopping transactions.

37
 TABLE4.17
SATISFACTORYLEVELOFRESPONDENTSFORTHEKEYFEATURESOF
CREDIT CARD

5 4 3 2 1 W=15

TOTAL
ATTRIBUTES ES S N D ED Wx/W RANK
(Wx)

Creditscoregiven
by your bank
26 69 24 0 1 479 31.9 IV

Discount and
rewardsgivenb
y online 36 57 24 2 1 485 32.3 I
shopping with
yourcreditcard

PaymentofEMI 33 48 34 3 2 467 31.1 VII

Creditcard
registration
29 63 25 1 2 476 31.7 VI

Transaction
process
35 58 23 3 1 483 32.2 II

Interestprovide
dbybank
36 55 21 6 2 477 31.8 V

Penaltiesandfees
connivance
41 48 24 7 0 483 32.2 II

(Source:constructedbasedontheinterviewschedule)

38
Theabovetablepresentsanevaluationofvariousattributesrelatedtocreditcards,withthe
weightageofeachattributebeing15points.Thetotalscoreforeachattributeiscalculatedby
multiplying the score for each attribute by its weightage.

The attributes evaluated include credit score given by your bank, discounts and rewards
given byonline shopping with your credit card, payment ofEMI, credit card registration,
transaction process, interest provided bythe bank, and penalties and fees convenience.

Basedonthescores,theattributesarerankedfromhighesttolowestasfollows:

 Penaltiesandfeesconvenience,andtransactionprocess(bothwithascoreof32.2)
 Discountandrewardsgivenbyonlineshoppingwithyourcreditcard(scoreof32.3)
 Creditscoregivenbyyourbank(scoreof31.9)
 Creditcardregistration(scoreof31.7)
 Interestprovidedbythebank(scoreof31.8)
 PaymentofEMI(scoreof31.1)

The evaluationshowsthatthe most important attributes for credit cards are penalties and
feesconvenienceandtransactionprocess,followedcloselybydiscountsandrewardsgiven by
onlineshopping.Agoodcreditscoreisalsoanimportantfactortoconsiderwhen
evaluatingcreditcards.ThepaymentofEMIandcreditcardregistrationarerelativelyless
important,whiletheinterestprovidedbythebankistheleastimportantfactorto consider.

39
4.17 CHART SHOWING SATISFACTORY LEVEL OF
RESPONDENTSFORTHEKEYFEATURESOFCREDITCARD

40
CHAPTER–5:FINDINGS,SUGGESTIONS

FINDINGS

 50.8%oftherespondentaremaleusingcreditcards.
 63.3%oftherespondentbelongsto19-25yearsagegroup.
 74.2%oftherespondentareunmarried.
 45%oftherespondentaredoingtheremasterdegree.
 45%oftherespondentarestudents.
 40.8%oftherespondentbelongs tobelowRs.2,00,000 incomegroup.
 31.7%oftherespondentarepreferusingHDFCBankcreditcards.
 66.7%oftherespondenthavingonlyonecreditcard.
 40.8%oftherespondenthavebeenusingthecreditcardfor1-2years.

 32.5%oftherespondentownmastercard.
 38.3%oftherespondentarecurrentlyusingsilvercategorycreditcard.
 45%oftherespondent prefertousecreditcard for
conveniencetomakepayment.

 45%oftherespondentusecreditcardonceamonth.
 62.5%oftherespondentutilizeanamountbelowRs.25,000permonth.
 74.2%oftherespondentonlyusedomesticcreditcard.
 88.3%oftherespondentpreferusingcreditcardforonlineshopping.

41
CustomerAwareness aboutCreditCards Itis observedfromthe analysis ofbank
customers‟awarenessaboutcreditcardsthatICICIcreditcardsaremorepopular which
follwed is by SBI Card and HDFC Card.

Can Card is found to be less popular among the sampled respondents. Regarding
the source of information about credit cards the respondents‟ revealed that the
agents ofICICIbankwere the source ofinformationabout ICICIcard. Inthe case for
SBI Card, advertisements provided the necessary knowledge and for HDFC
cards, the bank was the source of necessary information for the customers.

Regarding the conditions and charges on credit cards, majority (64%) are aware
ofthebasic conditions and76percentoftherespondentsknowaboutthecharges
imposedonthe services. Cashwithdrawalfacilityoncreditcards is notknownto
majority (68%) of the respondents.

None of the sampled respondents have awareness about the interest free credit
period.

AStudyOnPerceptionAndAwarenessOnCreditCards AmongBankCustomers
InKrishnagiriwww.iosrjournals.org20|PageMajority(88%)ofthesamplednon-
holdersofcreditcardareawareoftheconvenienceinusingcreditcards,reducing the
risk ofcarrying cash (74%) and wider acceptance ofthe creditcards (67%).

Higher proportions of the respondents (79%) know about the ATM facility for
cash withdrawal. As regards demography and level of awareness, it is observed
that age wise majorityofthe middle aged (68%), gender wise - the male (73%),
education wise- the college educated (84%), occupation wise- the employed
(67%), and income wise- the higher income group (81%) have high level of
awareness.

Highproportionsofthelowawarenesscategorycomprisedofthoseabove50years
old,femalecustomers,schooleducatedcategory,agriculturistsbyoccupation,and the
low income earners.

Regardingbankingrelated profile ofthe respondents and their levelofawareness,

the study shows that majority of the bank customers with long period of
customership(72%),thosetransactingmorefrequentlywiththebank(78%),those
whohavecurrentaccountwiththebank(76%),andcustomerswithlarger balance
intheir account know more about credit cards and their awareness level is found
to be high.
42
Low awareness categorycomprised ofmore ofcustomers withshort period
customership (64%), those transacting less frequently (58%), fixed deposit
account holders(68%), andcustomerswithsmallerbalanceintheiraccount
(52%).

Promotional measures through agents, banks‟ services, advertisement and

merchant establishments are the sources of informationand awareness providers
for bank customers.

Determinants ofCredit Limits The eligible credit limits ofmajority (68%)ofthe

respondents ranged from Rs.15,000 to Rs. 50,000. Credit limit actually availed
were found to be ranging from Rs.15,000 to Rs. 30,000 in the case of majority
(54%) of the card holders.

Correlation analysis conducted to test the degree of relationship between the

socioeconomic characteristics of credit card holders and credit limit actually
availedrevealedthatthecreditlimitavailedbythecardholdersissignificantlyand
positively correlated with monthly income of the card holders, their familysize,
and total family expenditure.

Theimplicationisthathighertheincome,thefamilysize,andthetotalexpenditure, the
credit limit actually availed is on the higher side.

Theactualcreditlimitavailedisindependentofthecardholdersoccupationaswell as
education.

Multiple regression model used to find out the determinants of the credit limits
availedbythecreditcard holders indicated thatcard holders‟ income isthe most
significant factor determining the actualcredit limit availed by the card holder.

This variable explained the variation of the credit limit availed to the extent of
51.9%. Attitude of Card Holders towards Credit Cards Attitudinal behavior of
credit card holders determined based on „Fishbein‟s Attitude Model‟ indicated
that majority of the sampled credit card holders (71.20%) have positive attitude
towards credit cards.

Availability of emergency funds through credit cards‟ and „shopping without

payingcash immediately‟ contributed more towards the positive attitude ofcard
holders.

43
Regarding the demographic and credit card related variables influencing card
holders‟ attitude the logitanalysis revealed thattwo variables namelycreditcard
holders‟ family income and eligible credit limit significantly influenced their
attitude.

This is understandable inview ofthe economic conditions ofthe card holders.

Card Holders’ Perception and Experience The analysis pertaining to card
holders‟ perceptionandexperience regardingthe role ofcore and supplementary
service elements show that majority ofthe sampled credit card holders (87.25%)
consider credit cards as a convenient mode of payment and 90.75 % consumers
carrythefeelingof reducedriskof carrying cashand96%considerrevolving credit in
evaluating purchase of credit cards.

Facilitatingservice ofeasyacceptabilityprocedure ofcreditcards atretailoutlets is

considered by majority (92.75%) of the respondents while making purchase
decisions of credit cards.

Presence of additional features (supporting services) of free insurance coverage

anddiscounts have notbeenstronglyfeltbymajority(69.75%and78.25%)ofthe card
holders.

Card holders‟ experiences were very high regardingallthe core services suchas
convenience in payment (86.25%) reduced risk of carrying cash (92.75%) and
revolving credit facility (96.5%).

Facilitating services of easy acceptability at retail outlets have also been

experienced by majority (94.50%) of the card holders.

The importance of supporting services of free insurance coverage and added

discountswere not actuallyexperiencedbymajority(70.25%and85.75%)ofthe card
holders.

Thustheanalysisrevealedthatrespondentsconsideredbasicbenefits,facilitating
services and supporting services prior to purchase of credit cards. However,
facilitating services were of low consideratio

44
Based on the findings of the study the following suggestions are made here:
Popularizing the Credit Cards Can Card is found to be less popular among the
respondents.

Hence methods should be adopted to bring a higher degree of popularization of

thiscreditcardthroughmassmediachannelliketelevision,radio,railwaycenters, and
super markets with a pictorial review of the card facility.

CreatingAwareness aboutInterest Free CreditPeriod The most lucrative feature

ofa credit card is the interest free credit period offered to card holders.

Nonholders ofcreditcards arenotawareofthis benefitofcreditcards. Hence

awarenessshouldbecreatedaboutthisbenefitofcreditcardsamongthe non-
holders.

DirectMarketingCreditcard issuers, thoughofferinternationallevels ofservice

andcreditsupporttothe cardholders,have failedto makeanimpressionamong the
less educated and the agricultural category with middle level income.

Theyalso feelthatthecostofcreditcards ishighandtherefore make itastatus symbol

rather than meeting their needs.

Hence,directmarketingbythebankingclubbedwithotherserviceswillbehelpful to
impress this untapped segment.

ImplementingRegulatoryMeasuresThecreditlimitavailedbymanycardholders are
found to be less than their eligibility limits.

Theworkinggrouponregulatorymechanismforcreditcardshassuggested measures
aimed at encouragingcard usage ina safe and secure manner.

Thisguidelineshouldbeimplementedsothattheentireeligiblecreditlimit may be
availed by the card holders.

ExtendingIncentivestoallTypes ofCardsDespite morewidespreadusage, most

ofthecreditcard usersarethe moreeducatedwithprofessionaltypesofjobsand high
income earners.

45
Most of the card holder incentives are offered for high value cards. Hence it is
suggested that incentives should be extended to all types of cards to promote
greater usage of credit cards like „Exclusive‟ and „Silver held by lower and
middle income earners.

Providing More Facilitating Services It is found from the analysis made in the
studythat supplementaryservices are perceived more as the expected features of
the credit card by the card holders.

Hence maximum supplementary service elements should be added to the credit

cards. Providing Knowledge about Supporting Services

It is identified from the study that respondents did not consider the supporting
services forpurchaseevaluation. This isduetoinadequate informationregarding
supporting services.

Providing knowledge about supporting services to customers can help the

marketers to develop an advantage for themselves in the market Visa Vis other
players.

Reducing Interest Rates One of the reasons for low level of satisfaction of card
holders has been the high rates of interest which the card holders are actually
paying ranging from 36 to 45 percent.

Hence it is suggested that these rates be brought down. Making the Internal
ControlSystemEffectiveWiththeaveragecreditlimitofRs.10,000toRs. 30,000 the
credit cards have not made anattractive caseoffraudsters, stilla fewcases of credit
card frauds (02%) have been reported in the study.

Hence banks are advised to implementthe „InternalControlSystem‟ formulated

by the RBI effectively to combat frauds.

46
 SPECIFICFINDINGS

 Penaltiesandfeesconvenience,
andtransactionprocess(bothwithascoreof32.2)

 Discountandrewardsgivenbyonlineshoppingwithyourcreditcard(scoreof32.3)
 Creditscoregivenbyyourbank(scoreof31.9)

 Creditcardregistration(scoreof31.7)

 Interestprovidedbythebank(scoreof31.8)

 PaymentofEMI(scoreof31.1)

47
 SUGGESTIONSFORBANKS

Thebankshouldreducethecreditcardcostinordertoallowclientstoacquire much
of the cards for their business transaction.
Thebanksshouldsensitizetheclientsonhowtousecredit cardseffectivelyin
ordertoallowtheclientstousetheserviceworldwidewithoutmuchproblems.
In order to acquire loans from the banks, theyshould make sure that thecredit
cardisamustfortheclientsandthiswillencouragetheminuseofcredit cards
effectively.
Thecreditcardissuershouldprotectcreditcardholders'privacy.
Highinterestrateleadstoreductionincreditcard usage.

48
 OBJECTIVESOFTHESTUDY

Theobjectivesofthestudyare:
a) Tostudytheawarenessofbankcustomersaboutcreditcards.
b) Tostudythe influenceofdemographicprofile,andbankingrelatedprofileof the
customers on possession of credit cards.
c) Toassesstheeligiblecreditlimitsandtheactualcredit limitsavailedbythe card
holders.
d) Toexaminetheextentofusageofcreditcardsbycardholders.
e) Tooffersuggestionsforfurtherimprovement.

49
 SUGGESTIONSFORCREDITCARDHOLDERS

 Atleastcreditcardsminimumpaymentsshouldbemadeontime.
 Passwordshouldbekeptconfidentially.
 The credit card holders should know about the Annual Percentage Rate(APR)
on their credit cards.
 Debtcollectionpracticesshouldbeknowntothecreditcardholders.
 Lossorstolencardsshouldbeimmediatelyreported.
 Securewebsitesshouldbeusedforonlinepurchase.
 Customerscanusetheavailablecreditlimitononecardtomakepaymentson another
card.
 Chip-cardfacilitiesandtransactionsoncreditcardsshouldbeknownbythecredit card
holders.

50
 CURRENTTRENDSINCREDITCARDINDUSTRY:

There is now a flood of Indian banks offering credit cards to the potential customers.
Multinationalbanksoperating inIndiahavealso joinedthebandwagonwithhighvoltage
advertising and seemingly competitive reward programmes for loyal credit card users.
Banks’income from credit cards can be divided mainly into four components namely
annual fee, interchange charge, revolving fee (interest charged for revolving credit) and
other fees. Indiancredit card market is growing at almost 30 to 40 per cent annually and
the number of credit cards incirculation is twentysevenand half million as reported by
credit card issuers

1. Research Design Research design is the blue print for empirical research workthat guides the
researcher in a scientific way towards the achievement of the objectives. Survey method has
supportedtheresearcher tofindtheperception,usage, andawareness of credit cardsamongthe
bank customers.

2. Sample Design Sampling design is imperative in every scientific study.Hence, the

researcher decided to collect the data through multi stage sampling.

3. Selection of District Krishnagiri was formed as 30th district by the Government of

TamilNadu.ItwascarvedoutofDharmapuridistricton09thFebruary2004withfivetaluks and
ten blocks. Krishnagiridistrict is boundedby Vellore and Thiruvannamalaidistricts in the
East, Karnataka state in the west, State of Andhra Pradesh in the North Dharmapuri
Districtinthesouth.Itsareais5143Sq.Kms.Thisdistrictiselevatedfrom300mto1400m above
the mean sea level. It is located between 11º 12'N to 12º 49'N Latitude,77º 27'E to 78º
38'E Longitude. The average rainfall is 830 mm per annum. March - June is summer
season.July-NovemberisRainySeasonandbetweenDecember-Februarywinterprevails.
Three languages namelyTamil, Telugu and Kannada are predominantly spoken in this
district. Major religions are Hindu, Islam and Christianity.

4.

51
5. SelectionofSampleBankBranchesIntamilnadu,nationalizedbankshave
good rural branches 1688 presence followed by private sector banks presence 687.
SBI also has good rural branch 337 presence following the private sector banks..
These 105 bank branches constituted the sample frame for the selection of banks.
Twenty per cent of these banks were selected by drawing lots by following Simple
randomsamplingmethod,whichcameto21.Forconvenience,AStudyOnCustomer
Awareness AndSatisfactionAmong Credit CardHoldersIn..DOI:10.35629/7722-
12051722www.ijhssi.org19|Pagethiswasroundedoff25.Fifteenpublicsectorand ten
private sector bank branches were thus selected for the study.

6. SelectionofBank CustomersSince the number ofcustomers in eachoftheselected

bank branch was more than 12000, it was found quite unwieldy to select certain
percentageofthepopulationasthesample frame. 12customers wereselected from
eachofthe 25select bank branches onthe basisof convenience. Thus 300 (25x12)
bankcustomerswereselectedasthesampleforanalyzingcustomerawarenessabout
credit cards.

7. SelectionofCredit Card HoldersFromthesurveyconducted bytheresearcher and

discussions held with the bank managers, it was found thatthe popular brands of
credit cards in Krishnagiri District were ICICI Card, SBI Card, HDFC Card, and
AXIS Card. Thus it was found that the total number of credit card holders were
around 3000.The researcher selected 300 creditcardholders, the number working
out to 10 per cent of the population. The sample respondents were selected on
Convenience basis.

8. Field Work, Data Collection, and Processing of Data The researcher undertook
field workduring theperiodfromMay2019 toMay2022. Byusingthe interview
schedule,theresearcherinterviewedthebankcustomerswhodonotpossesscredit
cards. Interviews were conducted atthe bank premises with the permission of the
bankmanagersconcerned.Thequestionnairewasissuedtothecreditcardholders.
Thecredit cardholderswerecontactedinthebank premises, at ATMCentresand
mercantile establishments and the data were collected. The data thus

52
9. SelectionofCredit Card HoldersFromthesurveyconducted bytheresearcher and
discussions held with the bank managers, it was found thatthe popular brands of
credit cards in Krishnagiri District were ICICI Card, SBI Card, HDFC Card, and
AXIS Card. Thus it was found that the total number of credit card holders were
around 3000.The researcher selected 300 creditcardholders, the number working
out to 10 per cent of the population. The sample respondents were selected on
Convenience basis.

10. Field Work, Data Collection, and Processing of Data The researcher undertook
field workduring theperiodfromMay2019 toMay2022. Byusingthe interview
schedule,theresearcherinterviewedthebankcustomerswhodonotpossesscredit
cards. Interviews were conducted atthe bank premises with the permission of the
bankmanagersconcerned.Thequestionnairewasissuedtothecreditcardholders.
Thecredit cardholderswerecontactedinthebank premises, at ATMCentresand
mercantile establishments and the data were collected. The data thus collected
werepostedinthe master tableto facilitatefurther processing. Statisticalanalysis of
the data was done through SPSS software in computer.

11. Statistical Tools Statistical tools such as Descriptive Statistics, Chi-squareTest,

Correlation, Analysis of Variance (ANOVA), Factor Analysis, and T test were
used in the study.

12. Pilot Study and Pre-testing A pilot study was conducted on 50 respondents not
possessing credit cards and 50 credit card holders in order to check the validity of
the questions and to understand the difficulties of the respondentsin giving their
responses. Onthe basis ofthe pilot study, the interview schedule and questionnaire
were redesigned with suitable modification.

13. Field Work, Data Collection, and Processing of Data The researcher undertook
field workduring theperiodfromMay2009 to May2011. Byusingtheinterview
schedule,theresearcherinterviewedthebankcustomerswhodonotpossesscredit
cards.Interviewswereconductedatthebankpremiseswiththepermissionofthe
53
 bankmanagersconcerned.Thequestionnairewasissuedtothecreditcardholders.
Thecredit cardholderswerecontactedinthebank premises, at ATMCentresand
mercantile establishments and the data were collected. The data thus collected
werepostedinthe mastertableto facilitatefurther processing. Statisticalanalysis of
the data was done through SPSS software in computer.

14. Quantification and Measurement of Variables and Construction of Scales The first
objective of the study is to determine customer awareness about credit cards.
Customer awarenesswas measuredonathreepointscale. Thescoresawardedwere for
theresponses fully aware and full knowledge- 3 each, aware to a certain extent and
just heard of responses-2 each and for not aware and not heard of responses-1 each.
Intheanalysisoftheusagepatternofcredit cards,a fivepoint scale wasused. Scores
were allotted for the usage such as very often-5, often-4, occasionally-3, rarely-2,
and very rarely-1. For determining the attitude of card holders towards credit cards
“Fishbeins Attitude Model” has been adopted. Belief score and
evaluationscoreweremeasuredonbipolarscales.Theobjectiveofthethestudyis to
measure the satisfaction of the credit card holders which has been measured by
constructing a scale. In this scale 9 components of satisfaction have been included
underthreeheadsnamelyissueofcreditcards,operationofcreditcards,andcharges
oncredit cards. Afivepoint scaleonthe “Likert Model” has beenconstructed. The
scores awarded to the responses of each component were, highly satisfied-5,
satisfied-4, No opinion-3, dissatisfied-2, and highly dissatisfied-1. The total of the
scoresofthethree components under eachhead constitutesthe satisfactionscoreof the
respondent for that head. The total scores awarded for all the 9 components of the
three heads constitute theoverall satisfaction score ofeach respondent. Further,
mean satisfaction scores have been ascertained and standard deviation determined.
Level of satisfaction has been classified into low, moderate, and high. The
respondents with satisfactionscore upto mean minus standard deviation have been
groupedunder lowsatisfaction, thoserespondentswiththeirrespective scoreabove
mean plus standard deviation under high satisfaction, and respondents with scores
between these two limits under moderate satisfaction. For the purpose of seventh
objectiveofthestudy,forunderstandingcardholders‟perceptionandexperience
54
 towards core services, facilitating services and supporting services, scores were
allottedona three point scalesuch as3, 2, and 1 for responses „yes‟, „somewhat‟,
and „no‟ respectively.

15. 5.10 Statistical Tools Statistical toolssuchasChi-square Test, Multiple Regression,

Discriminant Function Analysis, Analysis of Variance (ANOVA) and T test were
used in the study. Chi-Square Test In order to study the interrelationship among
influence of demographic variables and banking related profile of the respondents
overthepossessionofcreditcards,chi-squaretesthasbeenapplied.Chi–squaretest has
also beenapplied in theanalysisoftheextentofusageofcredit cards.Weighted Average
Analysis Weighted average analysis has been used in the present study to
determinethe perception and experience scores for the scores for the core services,
facilitating servicesand supporting servicesofferedto cardholders. Test In orderto
know whether there is significant gap between the mean scores for card holders”
perception and experience about the credit card core services,

55
LimitationsoftheStudy:
Thisstudyissubjecttothe followinglimitations
i). The studycovers individualcard holders only. Corporate card holders
havebeen excluded from this study.
ii). CreditcardholdersofForeignSectorBanks havenotbeenbroughtunder
thepurviewofthestudy,sincethere is no ForeignSector Bank inKrishnagiri
District.
iii). Credit card holders and non-holders who donot have bankaccount are
notincluded in this study

56
STATEMENTOFTHEPROBLEM:

Creditcardshavechangedthewaypeople lookatmoney.Gonearethedayswhenonlytherich sported

them at limited counters in select cities.

Today, they are a way of life for the middle class too, even in smaller locations across the
country.
Credit card business has registered a 30percent growthrateduring the current year reflecting
the growing acceptance ofthe people and adaptabilityto the new age currency system.

The plastic cards with attractive features like deferred payment facility, cashless transaction
facilityandthe like havecaughttheeyeofmanya lower and middle classpeople. Credit cards
enable travellers to carrya small amount of cash.

People also depend on credit cards for liquidity when their salary is delayed. Most of the
merchant outlets today accept plastic money. And with freebies like insurance cover, easy
repayment options, bonus points and rewards onoffer, it pays to owna credit card.

PilotStudyandPre-testingApilotstudywasconductedon50respondentsnotpossessingcredit
cardsand50creditcardholdersinordertocheckthevalidityofthequestionsandto understand the
difficulties ofthe respondents in giving their responses. On the basis ofthe pilotstudy, the
interview schedule and questionnaire were redesigned with suitable modification

The convenience inusing credit cardsmakes it verypopular throughoutthe world and any
urbansocietycannotthinkwithout it.India is not anexceptionto it asthenumberofactive credit
cardswhichwasonlya fewthousands in1989, shot upto about 2.75croresin2008.

However, this boom has brought in a lot of complications like credit card fraud, payment
defaulting,unsolicitedcard, uncontrolledspending etc.Rapidcredit cardgrowthhas increased
transaction efficiency.

57
Tillrecently,theIndianconsumerwasusingthecreditcardduringthecrunchseason,butthings
havechanged intherecent pastwiththeconsumersusing it for assmallasumasRs.100toover one
lakh rupees.

The most common feature among the credit card holders is that they carry forward their
payment. Postponingpayments multipliesbillsthattooat awhoppingrateof50to60percent per
year, pushing the card holders into a debt trap.

Theutilityofcardsvaries frompersonto persondepending ontheir profile. Inthe initialyears, the

consumersdeemit a privilege to hold credit cards. However,there isa feeling among card
holders that the banks are charging hefty interest and other fees.

Credit card issuers charge interest which works out to roughly 42 per cent per annum. Delays
or defaults result in payment of penal interest on all incrementalusage ofthe card AStudyOn
CustomerAwareness AndSatisfactionAmong Credit CardHoldersIn.. DOI:10.35629/7722-
12051722 www.ijhssi.org 18|Pagetillthe payments are made. Once the outstanding piles up, it
can be a serious hazard to one‟s financial security.

Today,competitionamongcredit cardplayersisintense. Offeringbenefitslikerewardpointsis just

another wayof luring customers into debt trap.

The biggest problemsarise whenonegets into what iscalled revolver modeofrepayment. The
cases of credit card frauds are increasing where banking transactions are done through the
internet.

Thereisadarksidetothecredit cardtechnologywhichisanavenueforsophisticatedswindlers. The

convenience in using credit card has made it verypopular.

But the boom in credit cards has been accompanied by howls ofprotestsfromcustomers about
arange ofissuessuchasunsolicited cards, undisclosed charges, free cardsthat arecharged for,
salescallsatalltimesoftheday,wrongbillingbanksresortingtointimidationtorecover

58
disputedpayments,rotatingDSAs(DirectSellingAgents)whopromiseandvanish,billscoming too
late to make timely payments and nowhere to complain

Quantification and Measurement ofVariables and Construction ofScales The first objective of
the study is to determine customer awareness about credit cards. Customer awareness was
measured on a three point scale.

The scores awarded were for the responses fullyaware and full knowledge-3 each, aware to a
certainextent and just heardofresponses-2eachand fornot awareandnot heardofresponses- 1
each. Inthe analysis of the usage patternof credit cards, a five point scale was used. Scores
were allotted for the usage such as very often-5, often-4, occasionally-3, rarely-2, and very
rarely-1.

Fordeterminingtheattitudeofcardholderstowardscreditcards“FishbeinsAttitudeModel” has been

adopted. Belief score and evaluation score were measured on bipolar scales. The sixth
objective of the study is to measure the satisfaction of the credit card holders which has been
measured byconstructing a scale. Inthisscale 9 componentsofsatisfactionhave been included
under three heads namely issue ofcredit cards, operation ofcredit cards, and charges on credit
cards.

A five point scale on the “Likert Model” has been constructed. The scores awarded to the
responsesofeachcomponent were, highlysatisfied-5, satisfied-4, Noopinion-3, dissatisfied-2,
and highly dissatisfied-1. The total of the scores of the three components under each head
constitutes the satisfaction score of the respondent for that head.

The total scores awarded for all the 9 components of the three heads constitute the overall
satisfaction scoreofeach respondent. Further, mean satisfaction scores have been ascertained
and standard deviation determined.

Level of satisfaction has been classified into low, moderate, and high. The respondents with
satisfactionscoreuptomeanminusstandarddeviationhavebeengroupedunderlow

59
satisfaction, thoserespondentswiththeir respective scoreabove meanplusstandard deviation
under highsatisfaction, andrespondentswithscoresbetweenthesetwo limitsunder moderate
satisfaction.

ANALYSIS:

The analysis pertaining to the determinants of credit limits revealed that card holders’
income is the most significant factor determining the actual credit limitavailed by the
card holders. The results of discriminant function analysis indicated that three factors
such as card holders’ family income, family expenditure, and asset value have major
differences between the high andlow creditcard limit groups. This Analysis dealt with
theeligiblecreditlimitsandactualcreditlimits availedbycreditcardholders.Thenext chapter
analyses theextent of usage of credit cards by card holders and attitude of card holders
towards credit ca

60
CONCLUSION:

The credit card culture inIndia was formally introduced almost twentyfive years
ago. The credit card business is probably the most lucrative banking business in India
today.Theindustryisdemonstratingvigorousgrowthratesof30-40percentinthenumber
ofcreditcardsissued.Basicallytheuseofcredit cardsenablesonetotakeadvantageofthe
transmissionofpaymentsandthegrantingofcredit.Thecredit cardhas revolutionizedthe entire
payment business. Credit card industry is witnessing a growth inrelatively smaller towns
ofIndia. A pre–requisite to credit card spend and issuance is its acceptance. Many cities
and towns have established acceptance mechanisms with widespread merchants.
Everycard company now has a challenge in persuading customersto make its card as the
preferred mode of payment over other cards. The industry witnesses such furious
competition that most companies now are offering discounts on purchases made through
their cards. Customers also want to understand the value of a particular card before
subscribing to it.

To conclude, the credit card are useful to the credit card users and it is highly
convenientforthemtomeetouttheirfinancialobligations.Thetechnologicaladvancement has
induced the customers today, to avail various services of new technology by using
smartphonestopayforitemspurchasedthroughvendingmachines,forparkingspaces,to meet
the daily expenses, and to book the tickets of airlines, railways, bus bookings, etc. Shall
influencetheperceptionofconsumersatisfactionlevelconsiderablyamongthecreditcard users.

61
BIBLIOGRAPHY:

1. SODHABHARGAVK,(2023),“ImpactOfCreditcardsInConsumer’sLife
With Reference To Surat City, Gujarat”, International Journal of Creative
Research Thoughts (IJCRT), (ISSN: 2320-2882).
2. Dr.M.SUREKHA,Dr.UMESHU,Dr.D.PAULDHINAKARAN,(2022),
“A study on utilization and convenient of credit card”, Journal of Positive
School Psychology,(ISSN: 5635-5645).
3. Dr.PRADIPTAMUKHOPADHYAY,(2022),“ACaseStudyonCredit
CardswithRespecttoIndia”,InternationalJournalofAdvancedResearchin
Science, Communication and Technology (IJARSCT), (ISSN: 2581-9429).
4. Dr.T.PRIYADHARSHINI,MS.R.PRIYANKA(2021),“Astudyoncredit
card utilization of credit card with reference to Coimbatore city”, EPRA
International Journal of Multidisciplinary Research (IJMR),(ISSN: 2455-
3662).
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and Satisfaction towards using credit cards with special reference to
Coimbatore city ”, International Journal of Advances in Engineering and
Management(IJAEM) ,(ISSN: 2395-5252).
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Reference to Coimbatore”, International Journal of Science and Research
(IJSR), (ISSN: 2319-7064).
7. APARNA JAYARAJ, (2019), “A study on consumer’s attitude towards
plasticmoney”,JournalofEmergingTechnologiesandInnovativeResearch
(JETIR), (ISSN: 2349-5162).
8. Dr. KUMUDHINI. R,(2018), “ Impact of attitude on buying behaviour of
credit card users”, International Journal of Creative Research Thoughts
(IJCRT) ,(ISSN:2320-2882).
9. Prof.AVINASHGHADAGE,Prof.JYOTIVIPULHOWALE,DR.
MEETALIPRASHANT MORE (2015) , “ The study and analysis of
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10. A.ANTOBRIGHTPRABHU,(2014),“AStudyonUsageofCredit Card
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(ISSN:2319 - 7668).

11. SITIRAHAYUHUSSIN,SALINAKASSIMANDNURAIENJAMAL,(2013),
“Credit Card Holders in Malaysia: Customer Characteristics and Credit Card
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WEBSITES:

1. www.ijcrt.org
2. http://journalppw.com
3. www.ijarsct.co.in
4. www.eprajournals.com
5. www.ijaem.net
6. www.ijsr.net
7. www.jetir.org
8. www.ijcrt.org
9. www.ijstm.com
10. www.iosrjournals.org
11. www.iosrjournals.org

64
APPENDIX

NAME:

1. Gender

a. Male

b. Female

c. Other

2. Age

a. 18or below

b. 19 - 25

c. 26-40

d. 41or above

3. MartialStatus

a. Single

b. Married

65
4:EducationalQualification

c. Highschool

d. Highersecondary

e. Diploma

f. BachelorDegree

g. MasterDegree

h. PhD

5:Occupation

i. Student

j. Businessman

k. Workwithanorganisation

l. Service

m. other

6:Whichincomegroup(perannum) doyoubelongto?

n. BelowRs.2,00,000

b. Rs.2,00,001- Rs.4,00,000

c. Rs.4,00,001-Rs.6,00,000

d. Rs.6,00,001-Rs.8,00,000

e. Rs.8,00,001&above

66
7:Whichbankcreditcarddoyouuse?

o. HDFCBank

p. AXISBank

q. ICICIBank

r. Other

8:Howmanycreditcarddoyouhave?

s. One

t. Two

u. Three

v. Fourormore

9:Howlongyouhave beenusingthecreditcard?

w. Lessthan6Month

x. 1-2 Years

y. 2-4 Years

aa.Morethan4Years

67
10:Whattypeofcreditcarddoyouown?

a. RUPAY

b. VISA

c. MASTERCARD

d. AmericanExpress

e. Other

11:Whatisthecategoryofthecreditcardyouarecurrentlyusing?

a. Silver

b. Gold

c. Platinum

d. Signature

12:Whydidyouapplyforcreditcard?

e. Foravailingdiscount

f. Foravailingfree gift

g. Convenienttomakepayment

h. Prestige

68
13:Howfrequentlydoyouuseyourcreditcardpermonth?

a. Everyday

b. 2-6Times aweek

c. Onceaweek

d. 2-3Times amonth

e. Onceamonth

f. Onceinayear

14:Whatistheamountutilizedforpaymentthroughcreditcardpermonth?

a. BelowRs.25,000

b. Rs.25,001-Rs.50,000

c. Rs.50,001-Rs.75,000

d. Rs.75,001orabove

15:Whichofthefollowingstatementmatchesyourcreditcardusagehabits?

a. Ionlyusedomesticcredit card

b. Ionlyuseforeigncreditcard

c. Iusebothdomestic&foreigncreditcard

d. Ionlyusecreditcardwhenitraveloversea

69
 16. Doyoushop,onlinebyusingyourcreditcard?

e. Yes

f. No

17. Areyousatisfiedwiththesefeatures?

Attributes Extremely Satisfied Neutral Dissatisfied Extremely

satisfied dissatisfied

Credit
scoregiven
by
yourbank
Discount
andrewards
givenby
online
shopping
with your
creditcard
Payment
ofEMI
Creditcard
registration
Transactio
nprocess

Interest
provided
bybank
Penalties
andfees
connivanc
e

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