INDIVIDUAL'S BEHAVIOR AND PERCEPTION TOWARDS CREDIT CARD ADOPTION

Article Information

Title: INDIVIDUAL'S BEHAVIOR AND PERCEPTION TOWARDS CREDIT CARD ADOPTION

Journal: Journal for Business Education and Management (JBEM)

HEC Recognition History

Category	From	To
Y	2024-10-01	2025-12-31
Y	2023-07-01	2024-09-30

Publisher: Contemporay Science Research Publisher (Pvt) Ltd

Country: Pakistan

Year: 2023

Volume: 3

Issue: 1

Language: English

DOI: 10.56596/jbem.v3i1.90

Keywords: Interest rateRewardsSecurity RiskDemographic Factors (AgeGenderIncome)

Abstract

This study investigates how people use credit cards and how they behave.&nbsp; The focus is on rewards, interest rate risks, security risks, and demographics.&nbsp; The motivations for this study are the increasing prevalence of credit cards in modern society and the need to understand the factors influencing consumers' decisions to use credit cards.&nbsp; It examines how various factors influence people's opinions about using credit cards, how rewards programs offered by the credit card industry influence people's opinions, how security Risks and interest rate risks affect people's opinions, and how satisfied and knowledgeable people are about credit cards.&nbsp; Three hundred respondents in Karachi, Pakistan, were divided into two groups for a cross-sectional study: credit card users and non-users.&nbsp; Surveys and structured interviews were used for data collection, and SPSS was used for analysis.&nbsp; The results showed how important demographic factors, security concerns, and incentives influence people's opinions about credit card use.&nbsp; To encourage greater adoption of credit cards, the study recommends increasing consumer awareness of the benefits of credit cards, prioritizing security measures, and addressing concerns about fees and interest rates.

Disclaimer: The following sections are produced through an intensive multi-stage analytical pipeline developed by DefinePK, utilizing advanced natural-language processing, domain-specific knowledge models, and automated cross-referencing systems. Despite the rigor and computational effort involved, the generated summary may still contain inaccuracies or incomplete interpretations. Users are strongly advised to verify all critical information against the original paper and its authoritative sources.

Research Objective

To investigate how various factors influence individuals' perceptions and behaviors towards credit card adoption in Karachi, Pakistan, focusing on demographics, rewards, interest rate risks, and security risks.

Methodology

A cross-sectional study was conducted with 300 respondents in Karachi, Pakistan, divided into credit card users and non-users. Data was collected through surveys and structured interviews, and analyzed using SPSS. Convenience and stratified sampling techniques were employed.

Methodology Flowchart

                        graph TD;
    A["Define Research Objective"] --> B["Design Cross-sectional Study"];
    B --> C["Select Sample: 300 Respondents in Karachi"];
    C --> D["Collect Data: Surveys & Interviews"];
    D --> E["Data Cleaning & Preparation"];
    E --> F["Analyze Data using SPSS"];
    F --> G["Interpret Findings"];
    G --> H["Formulate Conclusion & Recommendations"];

Discussion

The study highlights that while credit cards offer convenience and benefits like discounts and rewards, concerns about financial risks (interest rates, fees) and security are significant barriers to adoption. The "Buy Now, Pay Later" aspect, while appealing, carries inherent risks. The findings suggest a need for increased consumer awareness, robust security measures, and transparent fee structures to encourage wider adoption.

Key Findings

Demographic factors (income, age, gender, family size) significantly influence credit card adoption. Financial costs (high interest rates, fees, unsatisfactory credit limits) and security risks are deterrents. Enticing reward schemes can incentivize usage. Younger individuals (18-25) and single individuals living alone tend to use credit cards less, while older individuals (above 30) and married individuals are more likely to use them. Males are more frequent credit card users than females.

Conclusion

Demographic factors, financial costs, and security concerns are key determinants of credit card adoption in Karachi. To promote greater adoption, it is recommended to enhance consumer awareness of benefits, prioritize transaction security, and ensure transparency regarding fees and interest rates.

Fact Check

1. Sample Size: The study surveyed 300 respondents, with 230 forms deemed suitable for analysis.
2. Location: The study was conducted in Karachi, Pakistan.
3. Credit Card Usage in Pakistan (State Bank of Pakistan): In March 2018, the total number of plastic cards issued in Pakistan reached 40.1 million.

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