a study of usage pattern of credit card

A STUDY OF USAGE PATTERN OF CREDIT CARD

PRESENTED BY:ANU GOYAL

HARDEEP SINGHJIMMY JOSHI

Trust to receive their purchases on time

Credit card is a system of payment

A credit card is different from a debit card

Cater to the needs of retail segment

INTRODUCTIONINTRODUCTION

HISTORY

1950, the time when 'Diners Club' was established.

Arrival of American Express in 1958

With only two players in domestic card industry, HSBC and Citibank in the early 80s, the number swelled to over 25 in the year 2001.

Types of Cards

Master Card

VISA Card

Affinity Cards

Standard Card

Classic Card

Gold Card/Executive Card

Titanium Card

Platinum Card

Secured Card

Travel Card

Smart Card

Charge Card

Cash Card

HDFC

ICICI

SBI

PNB

CITI BANK

STANDARD CHARTERED

HSBC

MAJOR PLAYERS IN CREDIT CARD INDUSTRY

Income Proof

Minimum income level

21 years to 65 years of age.

ELIGIBILITY CRITERIA

Issuer

Card Holders

Member Establishment

PARTIES OF CREDIT CARD

PROBLEMS IN INDIAN CREDIT CARD MARKETPROBLEMS IN INDIAN CREDIT CARD MARKET

Lack of acceptance terminals.

frauds related to credit cards

lack of reliable internal and external infrastructure including technology

RESEARCH METHODOLOGY

The objectives of the study are as follows: To find out the application areas of credit cards. To find out the services/features considered by

individuals while choosing the credit card.

To find out the relationship between the usage pattern of credit cards among males and females

Data Collection Primary data Interview of 69 respondents

OBSERVATION & ANALYSIS

Gender Composition

Male73.9%

Female26.1%

RESPONDENTS OF DIFFERENT CREDIT CARD COMPANIES

Family Annual Income

OCCUPATION OF RESPONDENTS

Professional36.2%

Govt. service4.3%

Businessman8.7%

Housewife1.4%

Private service20.3%

Any other29.0%

Holding period of Credit Card

FEATURES OF CREDIT CARD

Insurance, 3

Interest rate on CA, 9

Interest rate on EC, 16

A/C with Bank 27

Reward Point, 14

Acceptability 29

0

5

10

15

20

25

30

FEATURES

Source Of Information

Print Media, 17

Sales person, 35

Friends, 16

T.V., 6Banners, 5

Internet, 4

0

5

10

15

20

25

30

35

Purpose Of Using Credit Card

Health, 1

Travels, 26Hotels, 26

Departmental Stores, 38

Net Shopping, 42

Petrol Pump, 40

0

5

10

15

20

25

30

35

40

45

Relationship Between Unplanned Buying And Gender

Analysis of Variance

Source Type III SS

df Mean Squares F-ratio p-value

GENDER

2.22 1 2.22 1.63 0.206

Error 91.258 67 1.362

Interpretation:- Null hypothesis is that there is no significant relationship between gender and unplanned buying pattern. As the p value is greater than 0.05 significance level, so, we accept null hypothesis. Therefore, it shows that there is no significant relationship between gender and unplanned buying pattern.

Relationship Between Unplanned Buying And Gender


Source Type III SS df Mean Squares F-ratio p-value

GENDER 9.978 1 9.978 6.514 0.013

Error 102.631 67 1.532

Interpretation:-Null hypothesis is that there is no significant relationship between gender and excessive buying. As p value is less than 0.05 significance level, so, we reject null hypothesis. Therefore, it shows that there is significant relationship between gender and excessive buying .

SATISFACTION LEVEL WITH VARIOUS BANKS

Column1 HDFC ICICI SBI PNB CITI BANK

STANDARD CHARTERD

HSBC

Arithmetic Mean

0.928 0.725 1.087 0.275 0.826 0.145 0.348

Interpretation: The arithmetic mean for STATE BANK OF INDIA is maximum (1.087), so it means that customers are highly satisfied with this bank. After SBI comes HDFC bank with arithmetic mean 0.928 and the customers are least satisfied with STANDARD CHARTERD bank

SATISFACTION LEVEL WITH VARIOUS BANKS

Relationship Between Credit Card Limit And Income


Source Type III SS

df Mean Squares

F-ratio p-value

FAMILY INCOME

4.47 3 1.49 1.389 0.254

Error 69.733 65 1.073

Interpretation:- Null hypothesis is that there is no significant relationship between annual family income and credit card limit. As the p value is greater than .05 significance level, so, we accept null hypothesis. Therefore, it shows that there is no significant relationship between annual family income and credit card limit.

RELATIONSHIP BETWEEN UNPLANNED BUYING AND AGE


Source Type III SS df Mean Squares

F-ratio p-value

AGE 9.272 4 2.318 1.762 0.148

Error 84.206 64 1.316

Interpretation:- Null hypothesis is that there is no significant relationship between unplanned buying and age of respondents. As the p value is greater than 0.05 significance level, so, we accept null hypothesis. Therefore, it shows that there is no significant relationship between unplanned buying and age of respondents.

Relationship Between Unplanned Buying And

Income


Source Type III SS

df Mean Squares

F-ratio p-value

FAMILY INCOME

18.015 3 6.005 5.172 0.003

Interpretation:-Null hypothesis is that there is no significant relationship between unplanned buying and annual family income. As p value is less than 0.05 significance level, so, we reject null hypothesis. Therefore, it shows that there is significant relationship between unplanned buying and annual family income

RELATIONSHIP BETWEEN EXCESSIVE BUYING AND ANNUAL INCOME


Source Type III SS

df Mean Squares

F-ratio p-value

INCOME 4.844 3 1.615 0.974 0.411

Error 107.765 65 1.658

Interpretation:- Null hypothesis is that there is no significant relationship between excessive buying and annual family income. As the p value is greater than 0.05 significance level, so, we accept null hypothesis. Therefore, it shows that there is no significant relationship between excessive buying and annual family income

RELATIONSHIP BETWEEN CREDIT CARD COMPANY AND FREQUENCY OF USAGE


Source Type III SS

df Mean Squares

F-ratio p-value

Q2 6.005 6 1.001 1.728 0.129

Error 35.908 62 0.579

Interpretation:- Null hypothesis is that there is no significant relationship between Credit Card Company and frequency of credit card usage. As the p value is greater than 0.05 significance level, so, we accept null hypothesis. Therefore, it shows that there is no significant relationship between Credit Card Company and frequency of credit card usage.


Source Type III SS

df Mean Squares

F-ratio p-value

AGE 27.63 4 6.907 5.202 0.001

Error 84.979 64 1.328

RELATIONSHIP BETWEEN EXCESSIVE BUYING AND AGE

Interpretation:-Null hypothesis is that there is no significant relationship between age and excessive buying. As p value is less than 0.05 significance level, so, we reject null hypothesis. Therefore, it shows that there is significant relationship between excessive buying and age of respondents.

a study of usage pattern of credit card

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