Factors Impact on Customer Credit Card Usage Behavior in Sri Lanka.

Abstract

Credit card business is a very dynamic segment within the banking industry with a higher level of competition. Hence identifying the specific variables that would impact on the credit card usage behavior would give a better advantage to the issuer to market credit cards. This research paper makes a valuable contribution, given the fact that there is lack of empirical studies and prior researches of this nature focusing on Sri Lanka. Due to the extreme competition among issuers, customers tend to switch the credit card issuers. So identifying customer behaviors is vital to improve market share & sales. Therefore this research was conducted to identify the major factors that impact on customer credit card usage behavior in Sri Lanka. Conceptual framework was developed to assess the variables, hypothesis build based on customer credit card usage behavior in Sri Lanka. The primary data for the survey was collected through a self-completed questionnaire which was distributed among 100 credit card users in Sri Lanka. The SPSS was used to analyze the primary data, According to the research, credit card attributes emerged as the major determinants of credit card use among Sri Lankan customers. But this can be change based on the research model developed under conceptual framework. The findings are likely to be very important to Sri Lankan banks in marketing of credit cards.