A STUDY ON PERCEPTION ON CREDIT CARDS AMONG BANK CUSTOMERS

Abstract

The purpose of this study was to develop a better understanding of perception of the customers and issuing banks regarding various attributes and aspects relating to credit card defaults such as general reasons for credit card, repayment attitude of the customers, knowledge of the customers regarding credit card defaults and agreement with their banks, general reasons for denial of credit cards, time period of default While the research to date on credit card default has provided valuable information about trends in this market, lack of detailed data has limited the understanding of consumer behavior and motivation in the use of cards and subsequently in a more complete understanding of default.

This study aims at achieving the following objectives; • To study the perception of credit card customers regarding credit card defaults • To study the perception of issuing banks regarding credit card defaults

To achieve the proposed objectives of the study, Primary data regarding credit card defaults was collected from issuing banks and credit card customers using exploratory research design. Two questionnaires were prepared to achieve the objectives of the research; one for the customers and the other for the bank managers. Various attributes and aspects regarding credit card defaults such as general reasons for default, study of respondents’ knowledge regarding consequences of default and agreement with their banks, general reasons for denial of credit card, etc.