Consumers' perceptions of intention to use a credit card: perceived risk and security

Abstract

The goal of this study is to combine the Technology Acceptance Model (TAM) with the theory of perceived risk to create a hypothetical model for consumer behavioral intention that will be validated using data from Saudi Arabia's intended credit card usage. 217 bank customers were polled via an online survey conducted across the country. Exploratory and confirmatory factor analyses were used to evaluate the factor structure of the measuring items, while structural equation modeling was being used to validate the recommended model and test the assumptions. Social influence (SI), perceived usefulness (PU), perceived ease of use (PEU), and perceived trust (PT) were all significant predictors of perceived risk (PR) and perceived security (PS) to affect consumer intention to use a credit card (IUCC), according to the results of structural equation modeling (SEM). This research might have assisted banks in establishing new customer acquisition tactics and determining how to deploy resources to retain and grow their existing customer base. As a consequence, this study adds to the body of information on consumer behavior by verifying the effects of PR and PS on credit card intention, which most prior studies have not shown. The study also delivers genuine data about Saudi Arabia's e-banking services, particularly in the credit card sector, to an academic research platform.

Consumer Behavior Toward the Use of Credit Cards: The Empirical Evidence From Hyderabad, India

“…The study adds to the knowledge on consumer behavior by verifying the effects of perceived risk and perceived security on credit card usage intentions in Saudi Arabia, which most prior studies had ignored (Zahrani, 2021). This research may assist banks in developing new customer acquisition tactics and retaining their existing customer base by focusing on risk and security issues (Zahrani, 2021). The study also provides genuine data about Saudi Arabia's e-banking services, specifically in the credit card sector, to an academic research platform (Zahrani, 2021).…”

“…The study found that social influence, perceived usefulness, perceived ease of use, and perceived trust were all significant predictors of perceived risk and perceived security, which, in turn, affected consumer intention to use a credit card (Zahrani, 2021). The study adds to the knowledge on consumer behavior by verifying the effects of perceived risk and perceived security on credit card usage intentions in Saudi Arabia, which most prior studies had ignored (Zahrani, 2021). This research may assist banks in developing new customer acquisition tactics and retaining their existing customer base by focusing on risk and security issues (Zahrani, 2021).…”

“…Zahrani (2021) conducted a study to develop a hypothetical model for consumer behavioral intention for credit card usage, by combining the Technology Acceptance Model (TAM) with the theory of perceived risk (Zahrani, 2021). The model was validated with data from 217 bank customers in Saudi Arabia (Zahrani, 2021).…”

“…Zahrani (2021) conducted a study to develop a hypothetical model for consumer behavioral intention for credit card usage, by combining the Technology Acceptance Model (TAM) with the theory of perceived risk (Zahrani, 2021). The model was validated with data from 217 bank customers in Saudi Arabia (Zahrani, 2021). The study found that social influence, perceived usefulness, perceived ease of use, and perceived trust were all significant predictors of perceived risk and perceived security, which, in turn, affected consumer intention to use a credit card (Zahrani, 2021).…”

“…The model was validated with data from 217 bank customers in Saudi Arabia (Zahrani, 2021). The study found that social influence, perceived usefulness, perceived ease of use, and perceived trust were all significant predictors of perceived risk and perceived security, which, in turn, affected consumer intention to use a credit card (Zahrani, 2021). The study adds to the knowledge on consumer behavior by verifying the effects of perceived risk and perceived security on credit card usage intentions in Saudi Arabia, which most prior studies had ignored (Zahrani, 2021).…”