The Factors Influence on Credit Card Ownership

Abstract

Credit card has become a popular payment method in the world, because it can use all local and international transactions. In Sri Lankan context use of credit cards are sweeping through upper, middle and lower middle classes across all group in the society. Present situation of the credit card market in Sri Lanka is highly competitive. Most of local and foreign banks as well as financial companies offer their credit card to customer with added different values and benefit. As a result of that competition, customer has a great opportunity to choose the best credit card to compare with each other. In this regard people have considered various factors before purchasing credit card, because they have different needs and wants to fulfill with the use of credit cards. The present study is trying to identify the major factors influence on credit card purchase in Sri Lanka. This study is basically a descriptive in nature and survey is conducted with the use of self-administered questionnaire to gather the information .Data were analyzed with the use of basic descriptive statistical techniques such as mean, median , mode ,range ,and slandered deviation. Correlation analysis was applied for testing hypotheses. This research mainly focused on six factors influence on credit card ownership namely income, education, and number of dependents, awareness, credibility, discount and promotion. Though the journey there are key important things that have been illustrated. Among those factors, “discount and promotion” is the most important factor where strongest relationship is identified with the consumer’s purchase decision. Further the present study revealed that awareness and credibility are important factors for deciding credit card ownership