A STUDY OF USAGE PATTERN

OF CREDIT CARD

PRESENTED BY:
ANU GOYAL
HARDEEP SINGH
JIMMY JOSHI
 INTRODUCTION

 Trust to receive their purchases on time

 Credit card is a system of payment

 A credit card is different from a debit card

 Cater to the needs of retail segment

 HISTORY

 1950, the time when 'Diners Club' was

established.

 Arrival of American Express in 1958

 With only two players in domestic card

industry, HSBC and Citibank in the early
80s, the number swelled to over 25 in
the year 2001.
 Types of Cards
 Master Card  Platinum Card

 VISA Card  Secured Card

 Affinity Cards  Travel Card

 Standard Card  Smart Card

 Classic Card  Charge Card

 Gold Card/Executive  Cash Card

Card

 Titanium Card
MAJOR PLAYERS IN CREDIT CARD
INDUSTRY

HDFC CITI BANK

ICICI STANDARD
CHARTERED
SBI
HSBC
PNB
ELIGIBILITY CRITERIA

 Income Proof

 Minimum income level

 21 years to 65 years of
age.
PARTIES OF CREDIT CARD

Issuer

Card Holders

Member Establishment
PROBLEMS IN INDIAN CREDIT CARD
MARKET

Lack of acceptance terminals.

frauds related to credit cards

lack of reliable internal and

external infrastructure including
technology
 RESEARCH METHODOLOGY

The objectives of the study are as

follows:
 To find out the application areas of credit
cards.

 To find out the services/features

considered by individuals while choosing
the credit card.

 To find out the relationship between the

usage pattern of credit cards among
males and females
OBSERVATION & ANALYSIS

Gender Composition

Male
73.9%

Female
26.1%
RESPONDENTS OF DIFFERENT CREDIT CARD COMPANIES
Family Annual Income
OCCUPATION OF RESPONDENTS

Professional
36.2%
Businessman
8.7%
Housewife
1.4%
Govt. service
4.3%

Private service Any other

20.3% 29.0%
Holding period of Credit Card
FEATURES OF CREDIT CARD

FEATURES
Acceptability
A/C with Bank 29
30 27

25
Interest rate
20 on EC, 16 Reward Point,
14
15 Interest rate
on CA, 9
10
Insurance, 3
5

0
Source Of Information

35
Sales
30
person, 35
25

20 Print Media, Friends, 16

17
15
T.V., 6
10 Banners, 5
Internet, 4
5

0
Purpose Of Using Credit Card

45
Departmenta
40 l Stores, 38
35 Hotels, 26
30 Travels, 26 Net
25 Shopping, 42
20
Petrol Pump,
15 40
10
5 Health, 1

0
Relationship Between Unplanned Buying And Gender

Analysis of Variance      
Source Type III df Mean Squares F-ratio
SS
p-value

GENDE 2.22 1 2.22 1.63

R
0.206
Error 91.258 67 1.362

Interpretation:- Null hypothesis is that there is no significant relationship

between gender and unplanned buying pattern. As the p value is greater
than 0.05 significance level, so, we accept null hypothesis. Therefore, it
shows that there is no significant relationship between gender and
unplanned buying pattern.
 Relationship Between Unplanned Buying And Gender

Analysis of Variance
Source Type III SS df Mean Squares F-ratio p-value

GENDER 9.978 1 9.978 6.514 0.013

Error 102.631 67 1.532

Interpretation:-
Null hypothesis is that there is no significant relationship between
gender and excessive buying. As p value is less than 0.05
significance level, so, we reject null hypothesis. Therefore, it shows
that there is significant relationship between gender and excessive
buying .
 SATISFACTION LEVEL WITH
SATISFACTION LEVEL WITH VARIOUS BANKS
VARIOUS BANKS
Column1 HDFC ICICI SBI PNB CITI STANDARD HSBC
BANK CHARTERD

Arithmetic 0.928 0.725 1.087 0.275 0.826 0.145 0.348

Mean

Interpretation:
The arithmetic mean for STATE BANK OF INDIA is maximum (1.087), so it
means that customers are highly satisfied with this bank. After SBI comes HDFC
bank with arithmetic mean 0.928 and the customers are least satisfied with
STANDARD CHARTERD bank
Relationship Between Credit Card Limit And Income

Analysis of Variance
Source Type III df Mean F-ratio
SS Squares
p-value

FAMILY 4.47 3 1.49 1.389

INCOME
0.254
Error 69.733 65 1.073

Interpretation:- Null hypothesis is that there is no significant

relationship between annual family income and credit card limit. As
the p value is greater than .05 significance level, so, we accept null
hypothesis. Therefore, it shows that there is no significant
relationship between annual family income and credit card limit.
 RELATIONSHIP BETWEEN UNPLANNED BUYING AND AGE

Analysis of Variance
Source Type III SS df Mean F-ratio
Squares
p-value

AGE 9.272 4 2.318 1.762

0.148
Error 84.206 64 1.316

Interpretation:- Null hypothesis is that there is no significant relationship

between unplanned buying and age of respondents. As the p value is
greater than 0.05 significance level, so, we accept null hypothesis.
Therefore, it shows that there is no significant relationship between
unplanned buying and age of respondents.
Relationship Between Unplanned Buying And
Income

Analysis of Variance
Source Type III df Mean F-ratio
SS Squares
p-value

FAMILY 18.015 3 6.005 5.172

INCOME
0.003

Interpretation:-
Null hypothesis is that there is no significant relationship between
unplanned buying and annual family income. As p value is less than
0.05 significance level, so, we reject null hypothesis. Therefore, it
shows that there is significant relationship between unplanned buying
and annual family income
RELATIONSHIP BETWEEN EXCESSIVE BUYING AND
ANNUAL INCOME

Analysis of Variance
Source Type III df Mean F-ratio
SS Square
p-value
s

INCOME 4.844 3 1.615 0.974 0.411

Error 107.765 65 1.658

Interpretation:- Null hypothesis is that there is no significant relationship

between excessive buying and annual family income. As the p value is
greater than 0.05 significance level, so, we accept null hypothesis. Therefore,
it shows that there is no significant relationship between excessive buying
and annual family income
RELATIONSHIP BETWEEN CREDIT CARD COMPANY AND
FREQUENCY OF USAGE

Analysis of Variance
Source Type III df Mean F-ratio
SS Squares
p-value

Q2 6.005 6 1.001 1.728 0.129

Error 35.908 62 0.579

Interpretation:- Null hypothesis is that there is no significant

relationship between Credit Card Company and frequency of credit
card usage. As the p value is greater than 0.05 significance level, so,
we accept null hypothesis. Therefore, it shows that there is no
significant relationship between Credit Card Company and frequency
of credit card usage.
 RELATIONSHIP BETWEEN EXCESSIVE BUYING AND AGE

Analysis of Variance
Source Type III df Mean F-ratio
SS Squares
p-value

AGE 27.63 4 6.907 5.202

0.001
Error 84.979 64 1.328

Interpretation:-
Null hypothesis is that there is no significant relationship between age
and excessive buying. As p value is less than 0.05 significance level,
so, we reject null hypothesis. Therefore, it shows that there is
significant relationship between excessive buying and age of
respondents.