Buying Behavior of Credit Card Buyers

Credit cards are an essential part of modern consumer finance, and understanding consumer buying behaviour related to credit card usage is crucial for banks and other financial institutions. The present study aims to explore the factors that drive credit card buying behaviour among consumers. The study used a factor analysis approach to identify the underlying factors that influence credit card usage behaviour. The data for this study was collected using a convenience sampling technique through a survey of 200 credit cardholders & students in India. The survey questionnaire included questions related to demographic characteristics, credit card usage patterns, and factors influencing credit card usage. The results of the factor analysis identified four key factors that influenced credit card buying behaviour. The first factor, labelled “Rewards and Benefits,” was associated with the use of credit cards to earn rewards and cashback. The second factor, “Convenience,” was associated with the ease and convenience of using credit cards for purchases. The third factor, “Credit Score Improvement,” was related to using credit cards to improve one’s credit score. The fourth factor, “Debt Management,” was associated with using credit cards for debt management purposes. The findings of this study have several implications for credit card issuers and marketers. The rewards and benefits associated with credit card usage, such as cashback and rewards points, should be promoted to attract new customers and retain existing ones. Credit card issuers should also focus on providing a convenient and user-friendly experience for their customers. Additionally, credit card companies should educate consumers about the potential benefits of credit card usage for improving their credit scores and managing their debt. Therefore, the present study provides insight into the factors that influence credit card buying behaviour among consumers. The findings suggest that credit car