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An empirical investigation of US credit card users: Card choice and usage behavior

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  • Kara, Ali
  • Kaynak, Erdener
  • Kucukemiroglu, Orsay

Abstract

The purpose of this research is to analyze household credit card choice and usage behavior. The theoretical model used to analyze the credit card choice behavior is a conjoint model which assumes the utility maximization and rational evaluation of the available credit card alternatives. The study also investigates the effects of credit card attitudes and practices on the credit card usage behavior. The data for the study were collected in southcentral Pennsylvania and analyzed by using traditional conjoint analysis and factor analysis. Study findings indicate that credit card holders and users show distinct differences in the use and selection of credit cards. Four different types of credit card customers identified necessitate the development and implementation of multiple target market strategies by credit card issuing companies. The results of the study offer important managerial and public policy implications for decision makers at banks, financial institutions and other credit card dispensing firms.

Suggested Citation

  • Kara, Ali & Kaynak, Erdener & Kucukemiroglu, Orsay, 1996. "An empirical investigation of US credit card users: Card choice and usage behavior," International Business Review, Elsevier, vol. 5(2), pages 209-230, April.
    • Handle: RePEc:eee:iburev:v:5:y:1996:i:2:p:209-230
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    References listed on IDEAS

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    Cited by:

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    2. Ha, Jinkyung, 2018. "Consumer valuation of Fintech: The case of Mobile Payment in Korea," 22nd ITS Biennial Conference, Seoul 2018. Beyond the boundaries: Challenges for business, policy and society 190341, International Telecommunications Society (ITS).
    3. Danilo Braun Santos & Wesley Mendes-Da-Silva & Jill M. Norvilitis & Philippe Protin & Luciana Onusic, 2022. "Parents Influence Responsible Credit Use in Young Adults: Empirical Evidence from the United States, France, and Brazil," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 368-383, June.
    4. Antonio Chamorro‐Mera & María Manuela Palacios‐González, 2019. "Socially responsible investment: An analysis of the structure of preferences of savers," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1423-1434, November.
    5. Brack, Anna Dorothea & Benkenstein, Martin, 2012. "The effects of overall similarity regarding the customer-to-customer-relationship in a service context," Journal of Retailing and Consumer Services, Elsevier, vol. 19(5), pages 501-509.

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