Impact of Credit Card Ownership on Consumer’s Behaviour: A Case Study for Islamabad and Rawalpindi
Journal Title: Research Journal Social Sciences (Online) - Year 2016, Vol 5, Issue 1
Abstract
Ownership and usage of the credit card depends on education, income and living standard. Till late 1800s there was no concept of credit cards. Nowadays almost every potential bank customer uses credit card services all over the globe including Pakistan due to its security and other facilities like keeping no cash, easy access to payments, and no wallet tension. However, there are also some disadvantages of credit cards also. One of the biggest disadvantages is that people consume more money than their actual budget and so run into heavy debts. Another disadvantage is the interest cost which the banks charge. Third are the hidden charges the customers have to pay, which are not often known to the customers. Considering all these information the present study has been initiated to see the behaviour of the customers regarding use of credit cards which will help bankers to improve their services and customers to use credit cards correctly. The study will cover two big cities of Islamabad and Rawalpindi only due to financial and time constraints. The results shows that majority of the people do not use credit cards or only use these on specific occasions. Most users do not revolve their credit balance to avoid interest. Majority of the respondents disagree or neutral to the statement that using credit card has disadvantages. Majority of them agree that people tend to purchase more than he can actually afford and thus run themselves into high interest costs. This clearly shows that majority of people are actually not clear in judging the disadvantages of the credit cards and thus have conflicting ideas. Some recommendations includes, advertisement campaigns to attract potential customers and making people aware of the usefulness of the credit cards. Financial institutions/banks may replace the interest cost with the fixed amount of bank fee to remove people concern for interest cost. Further, terms and conditions should be clearly defined by removing different confusions.
Authors and Affiliations
TANVEER ILLAHI, M. SARWAR ZAHID, QAZI ABDUL SUBHAN
Keywords
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