Consumer behaviour of credit card users-case: Bank of China
Xia, Tian; Li, Yiming (2014)
Xia, Tian
Li, Yiming
Savonia-ammattikorkeakoulu
2014
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2014090513772
https://urn.fi/URN:NBN:fi:amk-2014090513772
Tiivistelmä
Abstract
Credit cards can be used as a method of payment which facilitates consumers to pay for their purchase later. The popularity of credit card use has increased in China in recent years due to the rising income and the higher educational level. Additionally, China has grown up to the second largest credit card market in 2012 based on the quantity of issued cards and the number of transactions, and by 2020 China will become the world’s largest credit card market with the expected number of 900 million issued cards in total.
The study was commissioned by Bank of China, the second largest bank in China, whose aim was to improve its credit card service and expand the credit card market in China. The objective of the thesis was to profile the credit card users in Bank of China, to discover the factors influencing the decision of consumers in choosing and using credit cards and to find out the main barriers that slow down the growth of Bank of China in the credit card market.
For the theoretical part of this study, the focus was on the concepts of consumer behaviors and the description of credit card market. Accordingly, the credit card and consumer behaviour related secondary data was mainly derived from the acadamic books, journals and online materials. In terms of primary data, a quantitative research was conducted in form of an online survey. A questionnaire was sent to 4000 consumers who divided into credit card users and non-credit card users in Bank of China. The questionnaire consisted of multiple choice, open-ended and metric response questions. The research received 2191 responses in total and the response rate was approximately 55%.
The study discovered that Chinese consumers are interested in using credit cards mainly due to the fact that the credit card represents a convenient method of payment and a fashionable lifestyle. Based on the findings, the recommendations were put forward for the marketing strategies and credit card service improvement. The conclusion was drawn that the Bank of China could focused on the risk of unsafe problems, the issues of excessive debt loans on credit card as well as the financial counseling service and the knowledge of appropriate use of credit card for Chinese consumers.
Credit cards can be used as a method of payment which facilitates consumers to pay for their purchase later. The popularity of credit card use has increased in China in recent years due to the rising income and the higher educational level. Additionally, China has grown up to the second largest credit card market in 2012 based on the quantity of issued cards and the number of transactions, and by 2020 China will become the world’s largest credit card market with the expected number of 900 million issued cards in total.
The study was commissioned by Bank of China, the second largest bank in China, whose aim was to improve its credit card service and expand the credit card market in China. The objective of the thesis was to profile the credit card users in Bank of China, to discover the factors influencing the decision of consumers in choosing and using credit cards and to find out the main barriers that slow down the growth of Bank of China in the credit card market.
For the theoretical part of this study, the focus was on the concepts of consumer behaviors and the description of credit card market. Accordingly, the credit card and consumer behaviour related secondary data was mainly derived from the acadamic books, journals and online materials. In terms of primary data, a quantitative research was conducted in form of an online survey. A questionnaire was sent to 4000 consumers who divided into credit card users and non-credit card users in Bank of China. The questionnaire consisted of multiple choice, open-ended and metric response questions. The research received 2191 responses in total and the response rate was approximately 55%.
The study discovered that Chinese consumers are interested in using credit cards mainly due to the fact that the credit card represents a convenient method of payment and a fashionable lifestyle. Based on the findings, the recommendations were put forward for the marketing strategies and credit card service improvement. The conclusion was drawn that the Bank of China could focused on the risk of unsafe problems, the issues of excessive debt loans on credit card as well as the financial counseling service and the knowledge of appropriate use of credit card for Chinese consumers.