A Study of Usage Pattern of Credit Card
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Transcript of 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
Analysis of Variance
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
Analysis of Variance
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
Analysis of Variance
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
Analysis of Variance
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
Analysis of Variance
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
Analysis of Variance
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.
Analysis of Variance
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.