Quantitative Decision Making

INTRODUCTION

The roles and importance of credit cards nowadays are clearly important. The credit card users can spend future’s money today. It allows the users to be flexible and increases ability to spend for shoppers. In addition, installment plan gives more times for paying back the amounts used in later periods. There are no barriers for the users to spend in any currency since shops and stores only concern whether the cards are visa or master cards, usable worldwide. The purpose of the study is to explore factors affecting the credit card transaction from the January 2008 until April 2011. There are different types of credit cards available, categorizing by issuers such as banks and non-banks. In this study, the focus is only on bank credit cards.

Several researchers conducted consumer behaviors and the role of credit cards. One stated that it is important for banks offering credit card services to study what makes consumers who have 5 or 6 credit cards use one rather than another when making a purchase to determine marketing techniques. Among many factors affecting card transactions include high credit limit, the cash advance service and the ability to settle the credit card’s outstanding later.

Understanding card usage rationality assists credit card issuers to formulate strategy to cope with competition and to provide better services for consumers. Moreover, for credit card users, choosing a suitable credit card requires knowledge of one's credit card usage and comparison information on credit card costs.

The main aim of this study is about which factors are effective when credit card is being affected, also which factors show changes when it comes to independent variables.

LITERATURE REVIEW

1. Lind, D.A., Marchal, W.G. & Wathen S.A. (2010), Statistical Techniques in Business and Economics, 14th edition, McGraw-Hill.

2. Okan Veli Safakli, Motivating Factors of Credit Card Usage and Ownership: Evidence from Northern Cyprus,...