Purpose -This study seeks to examine why most multiple credit cardholders have a "main" card (i.e. a card used more often than others) and "subsidiary" cards (i.e. cards used less often or only in an emergency) and the spending patterns associated with main and subsidiary cards. Design/methodology/approach -The study is qualitative in nature, using a survey which contained open-ended questions to acquire data. Responses were subject to content analysis to categorise the reasons given for having a main and subsidiary card. Findings -Results show that some 85 per cent of the 141 respondents indicated that they had a main card and the most frequently quoted reason for having such a card was the superior discounts and promotions which were offered by the card issuer. Not surprisingly, main cards were used for the broadest range of transactions, while subsidiary cards were used for a more restricted range of transactions, a majority saying that their subsidiary cards were held for "stand-by purposes".Research limitations/implications -The primary limitation of this study is that the generalizability of the findings cannot be guaranteed. Although there is no particular evidence that Singaporeans behave differently from others in the credit card market, replication of the findings in other countries would confirm the generalizability of the findings in this study. Practical implications -The results suggest that managers who market credit cards should aim to ensure that, at all times, the discounts they offer, the promotions they arrange and their loyalty schemes are superior to those offered by competitors. By meeting these aims, higher numbers of consumers, who are multiple cardholders, are likely to use their card as a main card, thereby generating more income for their credit card issuer. Originality/value -The study provides an original insight into an important element of consumer behaviour in the credit card market and also offers guidance for marketing managers responsible for enhancing credit card ownership and usage.
Purpose -The purpose of this paper is to explore the opportunities and challenges for "foreign" financial institutions who wish to enter the Chinese market. It uses the credit card product to illustrate the complexities of this market. Design/methodology/approach -Building on a literature review of how other transitional economies have dealt with the introduction of competitive financial services into their markets, the paper uses secondary research sources to consider some of the Chinese cultural nuances about savings and consumption that foreign entrants will need to be aware of. The credit card provides a mechanism, both to better explain these nuances and to demonstrate the entry strategies used to date by foreign credit card issuers. Findings -There is much work yet to be done by the Chinese authorities to establish an infrastructure for payment cards and to encourage consumers to hold and use such cards. Foreign entrants, whilst constrained by the regulations restricting entry into the Chinese financial services markets, need also to be aware of some of the cultural impediments to the use of payment cards, particularly credit cards. Research limitations/implications -Further empirical research now needs to be conducted to explore the attitudes of Chinese consumers towards using credit cards and the willingness of Chinese merchants to accept such cards for payment. Foreign entrants, both actual and prospective need to be aware of the unique culture of China and how concepts such as Guanxi will impact upon the success of their entry strategies into this market. Originality/value -The paper adds to the very limited literature on financial services in China and has value in that it encourages bank marketers to understand the cultural environment of the market that they are trying to penetrate.
Purpose -The purpose of this paper is to present exploratory research into the holding and usage of credit cards by a distinct segment of the Chinese population, who are "early adopters" of this product. Design/methodology/approach -Primary data collection using survey methodology. A sample of the urban-affluent population in China was utilized to gauge preferences and attitudes towards the use of credit cards. Findings -The respondents were comfortable with the holding and use of credit cards and particularly recognised their value for spending on travel and entertainment. The research also identified purchase trigger points, which indicated that the use of credit cards for purchases above certain value was already prevalent with this sample of urban-affluent Chinese consumers.Research limitations/implications -The sample was drawn from a narrower base than the actual target population of urban-affluent market, but an available and valid respondent set, which offers insights into the "early-adopters" of the credit card product in China. Practical implications -Hitherto there has been a very limited amount of research into payment cards in China and yet with the market for financial services opening up in China from 2007, this research is timely both for domestic Chinese banks wishing to issue credit cards and for foreign entrants, seeking to enter the Chinese market via their expertise in credit cards. Originality/value -The paper presents focused research on the attitudes towards credit cards, with the urban-affluent consumers, who are the most likely early-adopters of this product.
The article is based on both secondary and primary research into the use of plastic payment cards in China. The secondary research offers an understanding of the history and current situation of payment cards in China, whilst the primary research provides insights into the uniqueness of the Chinese market from the perspective of card holders, card issuers and merchant acceptors. As barriers to entry into China remain high for foreign banks, particularly if they wish to pursue a branch centric approach to distribution, the article also draws attention to the advantages of a card centric approach to market entry. Other Asia-Pacific markets such as Australia, Hong Kong, Korea and Japan have already embraced the plastic card as a means of payment at the point-ofsale. As a market, China has more potential than any other country in Asia-Pacific, but more knowledge is required concerning the evolution to date of payment cards in China and the impediments that foreign entrants will face.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.