pooja ppt credit card
TRANSCRIPT
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A PRESENTATION ON
CUSTOMER PREFERNCE OF CREDIT CARDS
OFFERED BY BANKSIN
JAIPUR CITY
Made by
Pooja Agarwal
FMS Trimester 2nd
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INTRODUCTION
A credit card is a widely used tool in personal finance that is part of a
system of payments named after the small PLASTIC CARD issued to card-
holders, who have the authorization to purchase goods and services up to
a predetermined amount, called a CREDIT LIMIT. The vendor receives
essential credit card information from the cardholder, the bank issuing the
card actually reimburses the vendor, and eventually the cardholder repaysthe bank through regular monthly payments. If the entire balance is not
paid in full, the credit card issuer can legally charge interest fees on the
unpaid portion. A credit card does give the holder an immediate credibility
for services such as hotel reservations, car rentals and airline ticket
reservations. A credit card holder can authorize other people to use thecard for purchases or services, however. Ultimately, the primary
cardholder is responsible for all charges placed on his or her account. In
order to avoid excessive credit card debt, the holder must decide if the
goods or services are worth the added expenses.
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Objectives of the study
A critical study of Indian Banking sector, so as tounderstand the projected growth for credit card marketin Jaipur city.
To analyse the role of credit card as a means of
personal finance and the factors influencing thepreference of the same among retail consumers ofJaipur city.
To understand the relative features benefits andpurposes of few of the leading credit cards issued bybanks in Jaipur city.
Evaluating the credit cards in terms of the performanceof the respective bank
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RESEARCH METHODOLOGY
RESEARCH DESIGN
Research methodology section of this Project describesthe method of procedure for conducting this study. Itspecifies what the problem is, sources and types of
information, population and sample, procedures andtechniques for collection and analysis of data.
As this study aims to perform an analysis of the reasonsfor consumer preferences for credit cards in the Jaipurcity by studying the most popular credit card features
and from among four leading banks in the Jaipur city,namely HDFC Bank, ICICI Bank, IDBI Bank, and HSBCbank. These banks have been selected on the basis of thecriteria of high repute and popular acceptability amongJaipur city consumers and convenient access to their
array of accurate financial reports on their websites.
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RESEARCH METHODOLOGY
A section-based questionnaire is to be prepared andtested upon a representative sample size of 50consumers within the Jaipur city. This is to collect first-hand primary data to fulfil the objective of studying
credit card preferences within the Jaipur city. Owing totime and cost constraints, the aim for a higher samplesize is difficult to accomplish.
For the purpose of critical studies and research, owingto time constraints and the easy availability of
secondary data in the form of relevant financialwebsites, newspapers and, various references havebeen utilized.
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Nature of data
For the purpose of this Project, both secondary dataand primary data will be used. Primary data isauthentic data and it will be collected from the Jaipurcity and analyzed. The secondary data has been taken
from various appropriate online and other references.The definitions and theoretical aspects of this Projectrepresent secondary data collected from varioussources such as websites and the library. Being awareof the limitations of dealing with secondary data in
terms of relevance and validity, the available secondarydata at hand has been as accurately presented aspossible within the Projects constraints.
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Source and Collection of Data
The Project is based on both primary and secondary
data. The primary data has been taken from a
convenient representative sample size of 50 banking
customers within Jaipur city. The secondary datahas been taken from various appropriate
online and other references.
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Tools and Techniques of Analysis
The primary data is collected using the assistance of a
questionnaire having certain open-ended questions andmultiple-choice questions to allow for freedom of consumer
opinion and broaden the scope of analysis.
Bar-chart graphs have been used to analyze the percentages
of consumers preferring certain credit cards over others toshow the most preferred credit cards in the Jaipur city. Other
such graphs will also show how many consumers make the
minimum payment on their credit cards or use other personal
finance approaches in settling their credit card bills.
These graphs will then be used in analyzing what features and
aspects of credit cards attract consumers to use them as the
most popular source of personal finance and why credit card
issuing companies are / are not gaining acceptance within the
Jaipur city credit card market.
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DATA INTERPRETATION
&ANALYSIS
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Gender
Grand Total
Gender %
Grand Total
Female Male Female Male
AgeGroup
Less than 21 0 0 0 0% 0% 0%
22 - 30 8 30 38 16% 60% 76%
31 - 40 2 3 5 4% 6% 10%
41 - 50 2 0 2 4% 0% 4%
51 - 60 0 5 5 0% 10% 10%
61 and above 0 0 0 0% 0% 0%
Grand Total 12 38 50 24% 76% 100%
SHOWING GENDER WISE AGE PATTERN OF THE RESPONDENTS
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SHOWING GENDER WISE AGE PATTERN OF THE RESPONDENTS
INFERENCE
76% of respondent were males and 24% were females.
Of the respondents 76% belong to the age group less than 30.
Only 14% were in the age group of above 41.
0%
20%
40%
60%
80%
100%
120%
Less than 21 22-30 31-40 41-50 51-60 61-70 Total
Female
Male
Total
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Gender
Occupation
Grand Total
Manufacturing Retail
Self-
employed Service Student
Female 0% 0% 8% 12% 6% 24%
Male 12% 6% 6% 46% 4% 76%
Grand Total 12% 6% 14% 58% 10% 100%
SHOWING GENDER WISE OCCUPATION OF THE RESPONDENTS
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SHOWING GENDER WISE OCCUPATION OF THE RESPONDENTS
0%
20%
40%
60%
80%
100%
120%
Self employed Manufacturing Retail Service Student Total
Female
Male
Total
INFERENCE
6% of respondents are employed within the retail sector are male respondents.
12% of respondents are employed within the manufacturing sector are male
respondents
14% of all respondents are self-employed of whom 6% are male respondents
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Monthly Income
Grand TotalGenderLess than Rs
5,000Rs 5,000 Rs
10,000Rs 10,000 Rs
20,000More than Rs
20,000
Female 8% 14% 4% 0% 26%
Male 8% 38% 24% 4% 74%
Grand Total 16% 52% 28% 4% 100%
SHOWING GENDER WISE MONTHLY INCOME OF THE RESPONDENTS
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SHOWING GENDER WISE MONTHLY INCOME OF THE RESPONDENTS
0%
20%
40%
60%
80%
100%
120%
Less than Rs 5,000 Rs 5,000- Rs 10,000 Rs 10,000-Rs 20,000 More than Rs 20,000 Total
Female
Male
Total
INFERENCE
The above table shows that 80% of all respondents are in the monthly income
range of Rs5,000 Rs20,000 out of whom 18% are female respondents and 62%
are male respondents.
4% of all male respondents are in the monthly income range of more than Rs
20,000.
16% of all respondents are in the monthly income range of less than Rs 5,000.
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Monthly Expenses
Grand TotalGender
Less than
Rs 3,000
Rs 3,000 Rs
6,000
Rs 6,000 Rs
10,000
More than Rs
10,000
Female 14% 12% 0% 0% 26%
Male 30% 26% 14% 4% 74%
Grand Total 44% 38% 14% 4% 100%
SHOWING GENDER WISE MONTHLY EXPENSES OF THE RESPONDENTS
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Showing Gender wise monthly expenses of the respondents
0%
20%
40%
60%
80%
100%
120%
Less than Rs 3,000 Rs 3,000- Rs 6,000 Rs 6,000- Rs 10,000 More than Rs 10,000 Total
Female
Male
Total
IINFERENCE
The above table shows that 82% of all respondents incur average monthlyexpenses less than Rs 6,000 of whom 26% are female respondents and 56% are
male respondents.
14% of male respondents incur average monthly expenses range between Rs 6000
- 10000.
4% of male respondents incur average monthly expenses range between Rs 6000 -
10000.
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Monthly Income
Mode of payment
Grand TotalCash Cheque Credit Card Debit Card
Less than Rs 5,000 7% 1% 4% 4% 16%
Rs 5,000 Rs 10,000 22% 2% 20% 8% 52%
Rs 10,000 Rs 20,000 12% 2% 7% 7% 28%
More than Rs 20,000 1% 1% 2% 0% 4%
Grand Total 42% 6% 33% 19% 100%
Showing mode of payment according to the monthlyincome of the respondents
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Showing mode of payment according to the monthly
income of the respondents
0%
20%
40%
60%
80%
100%
120%
Credit card Debit card Cash Cheque Total
Less than Rs 5,00
Rs 5,000- Rs 10,000
Rs 10,000- Rs 20,000
More than Rs 20,00
Total
Inference
33% of respondent prefer credit card as mode of payment
52% respondent fall under Rs 5000 - 10000 income group
Cheque is the least preferred mode of payment.
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Gender
REASONS FOR PREFERENCE OF A CREDIT CARDOVER OTHER PERSONAL FINANCE OPTIONS
Convenient access to
liquid cash
Ease of obtaining
loans
Loyalty
incentives
Grand
Total
Female 12% 0% 12% 24%
Male 35% 14% 27% 76%
Grand Total 47% 14% 39% 100%
Showing Gender wise reasons for preference of a credit
card over other personal finance options of the respondents
Showing Gender wise
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Showing Gender wise
reasons for preference of a
credit card over other
personal finance options of
the respondents
0%
20%
40%
60%
80%
100%
120%
Ease of obtaining
loan
Convenient access
to liquid cash
Loyalty incentives Total
Female
MaleTotal
InferenceThe above table shows that 47%
of all respondents cite convenient
access to liquid cash as their
reason for preference of credit
cards over other alternatives as a
personal finance tool out of
whom 35% are male respondents
and 12% are female respondents.
39% of all respondents cite
loyalty incentives associated to
credit card usage as their reason
for preference of credit cards as a
personal finance tool out ofwhom 27% are male respondents
and 12% are female respondents.
14% of male respondents cite
ease of obtaining loans using
credit cards as their reason for
preference of credit cards as a
personal finance tool.
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FREQUENCY OF USAGE OF CREDIT CARDS
Any
purchase
Only air-ticket
booking
Only week-end
shopping
Grand
Total
Female 14% 2% 8% 24%
Male 38% 20% 18% 76%
Grand Total 52% 22% 26% 100%
Showing gender wise frequency of using of credit cards of the respondents
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Showing gender wise
frequency of using of
credit cards of the
respondents
0%
20%
40%
60%
80%
100%
120%
Any purchase Only week-end
shopping
Only air-ticket
booking
Total
Female
MaleTotal
INFERENCE
The above table shows that
24% of female respondents
have cited the following
frequency of credit card
usage(in order of preference)
For any purchase
Only weekend shopping
Only air-ticket booking.
76% of male respondents have
cited the following frequency ofcredit card usage(in order of
preference)
For any purchase
Only air-ticket booking.
Only weekend shopping
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Gender
APPROACH ADOPTED FOR SETTLING CREDIT CARD BILLS
Fixed payment
every month
Full repayment
within 50 days
of purchases,
interest-free
Less than the
minimum
payment
required
Minimum
payment
required
only
Grand
Total
Female 8% 8% 2% 6% 24%
Male 10% 42% 6% 18% 76%
Grand Total 18% 50% 8% 24% 100%
Showing gender wise approach adopted by the respondents for settlingcredit card bills
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Showing gender wise
approach adopted by the
respondents for settling
credit card bills
0%
20%
40%
60%
80%
100%
120%
Less than the
minimum
payment
required
Minimum
payment
required only
Full
repayment
within 50 days
of purchase,
interest free
Fixed payment
of every
month
Total
Female
Male
Total
Inference
The above table shows that
24% of female and 76% of male
respondents have cited the
following adopted approachesfor settlement of their credit
card bills (in order of
preference)
a. Full repayment within 50
days of purchases, interest-freec. Minimum payment required
only
b. Fixed payment every month
d. Less than the minimum
payment required
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COMMON PROBLEMS / COMPLAINTS
REGARDING CREDIT CARDS
Gender
Grand TotalFemale Male
Difficult to qualify for an initial credit card 1% 7% 8%
Frequent out of service in ATMs 3% 12% 15%
Hidden financial charges 8% 32% 40%
Lesser acceptability at retail outlets 7% 14% 21%
Poor customer service 5% 11% 16%
Grand Total 24% 76% 100%
Showing gender wise common problems / complaintsregarding credit cards
Showing gender wise common problems / complaints
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Showing gender wise common problems / complaints
regarding credit cards
0%
20%
40%
60%
80%
100%
120%
Lesser
acceptability at
retail outlets
Frequent out of
service in ATM's
Hidden financial
charges
Difficulty to
qualify for an
initial credit card
Poor customer
care
Total
Female
Male
Total
INFERENCE
The above table shows that 40% of respondents (32% male and 8%
female) have cited hidden financial charges as common problem
regarding credit card.
11% male and 5% female cited poor customer service as majorcomplaint.
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PATTERN OF USAGE OF CREDIT
CARDS
Gender
Grand TotalFemale Male
Dining 4% 15% 19%
Education 4% 9% 13%
Entertainment 1% 11% 12%
Leisure 2% 10% 12%
Shopping 6% 12% 18%
Travel 1% 9% 10%
Utility Bills settlements 6% 10% 16%
Grand Total 24% 76% 100%
Showing pattern of credit card usage with thefrequency of usage of credit cards by the respondents.
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Showing pattern of credit
card usage with the
frequency of usage of
credit cards by the
respondents
0%
20%
40%
60%
80%
100%
120%
Female
Male
Total
Inference
The above table shows
the following major creditcard usage patterns cited
by 76% of male
respondents including
Shopping, dining,
Entertainment.
The above table shows
the following major credit
card usage patterns cited
by 24% of female
respondents including
Shopping, Utility bills.
Showing frequency of usage of credit cards and the reasons for preferring
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Factors HDFCICICI
Bank
IDBI
BankHSBC Bank
Others
BankTotal
Low interest rates 20 13 3 3 11 50
Exclusive rewards using purchase points
and loyalty programs12 21 2 4 11 50
Cash-back schemes 11 20 6 5 8 50
Roadside assistance access duringemergencies
7 17 10 5 11 50
Special discounts at selected global
and/or local retail and fine dining outlets
and/or travel privileges.
6 10 12 9 13 50
Higher cash withdrawal limits 10 9 8 9 14 50
Customer care services putting you first /
timely complaint and query resolution
and/or maximum convenience
10 9 10 7 14 50
Wider range of exchange outlets to pay
your credit card bills7 10 8 8 17 50
83 109 59 50 99 400
Showing frequency of usage of credit cards and the reasons for preferring
credit cards over other personal finance options by the respondents
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Showing frequency of usage of credit cards and the reasons for preferring
credit cards over other personal finance options by the respondents
0
5
10
15
20
25
Low interest
rates
Exclusive
rewards using
purchase points
and loyalty
programs
Cash-back
schemes
Roadside
assistance
access during
emergencies
Special
discounts at
selected global
and/or local
retail and fine
dining outlets
and/or travelprivileges
Higher cash
withdrawal
limits
Customer care
services putting
you first / timely
complaint and
query resolution
and/or
maximumconvenience
Wider range of
exchange
outlets to pay
your credit card
bills
HDFC
ICICI
IDBI
HSBC
Others
INFERENCE
Low interest rates & cash back schemes are the most motivating factor while
selecting a credit card
ICICIs credit card is the mostly preferred for the given factors criteria.
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Bank's Credit Card
FREQUENCY OF USAGE OF CREDIT CARDS
Grand
TotalAny purchase
Only air-ticket
booking
Only week-end
shopping
HDFC Bank 10% 5% 4% 19%
ICICI Bank 19% 9% 3% 31%
HSBC Bank 4% 4% 4% 12%
IDBI Bank 5% 2% 1% 8%
Others 14% 7% 9% 30%
Grand Total 52% 27% 21% 100%
Showing frequency of usage of credit cards and thereasons for preferring credit cards over other personal
finance options by the respondents.
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Showing frequency of
usage of credit cards and
the reasons for preferring
credit cards over other
personal finance optionsby the respondents
0%
20%
40%
60%
80%
100%
120%
HDFC
BANK
ICICI
BANK
IDBI
BANK
HSBC
BANK
Others Total
Any purchase
Only week-end
shoppingOnly air-ticket
Total
Inference
31% of the respondents
who use ICICI Bank credit
cards, out of which 19%
use their credit card for
any purchase
52% of respondents use
credit card for any
purchase.
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Banks
Payment Strategy
Grand
Total
Fixed payment
every month
Full repayment
within 50 days
of purchases,
interest-free
Less than the
minimum
payment
required
Minimum
payment
required
only
HDFC Bank 4% 9% 2% 4% 19%
ICICI Bank 8% 10% 4% 9% 31%
IDBI Bank 1% 4% 0% 3% 8%
HSBC Bank 1% 8% 0% 3% 12%
Others 4% 19% 2% 5% 30%
Grand Total 18% 50% 8% 24% 100%
Showing payment strategy and the occupation of therespondents
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Showing payment strategy and the occupation of
the respondents
0%
20%
40%
60%
80%
100%
120%
HDFC BANK ICICI BANK IDBI BANK HSBC BANK Others Total
Less than the minimum payment
required
Minimum payment required only
Full repayment within 50 days of
purchases, interest free
Fixed payment of every month
Total
INFERENCE
50% of respondents prefer to make full payment within 50 days.
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FINDINGS
1. Self employed (14%) and Service sector (58%) shows that therespondents belong to these two sectors make use of credit cardsmore widely and were in line with demographic composition ofJaipur city.
2. Most of the respondents have cited hidden financial charges as
common problem regarding credit card.3. Respondents have expressed very little preference for the use ofcheques in making payments.
4. Major credit card usage patterns cited by 76% of malerespondents use credit cards for Shopping, Dining, Entertainmentetc.
5. Most of the respondent who prefer credit card as mode ofpayment fall under Rs 5000 - 10000 income group. In fact creditcard used to be yet another useful source of short term financefor this group of income holder
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6. The monthly expenses analyses of the respondents indicate that82% of them were not spending more than Rs 6000. This showsthat though 84% of the respondents were having a monthly
income of above Rs 5000, the spending nature was very lessand most of them saving or locally remitting to their homecountry but were not spending in Jaipur city.
7. The fact that 33% of the respondents prefer credit card and 19%of respondents prefer debit card as the preferred mode for
making payments shows that plastic money payment was verydominant among the respondents. The cash mode of paymentwas more among male respondents than the femalerespondents, which shows that females were more particularnot to make cash payments as cash was more risky to handlethan the credit/debit card means.
8. 86% of all respondents have cited the major reasons of
Convenient access to liquid cash
Ease of obtaining loans
c Loyalty incentives.
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9. 76% of male respondents have cited the following frequency of
credit card usage(in order of preference)
For any purchase
Only air-ticket booking
Only weekend shopping
10. Most of the respondents have cited the following adoptedapproaches for settlement of their credit card bills (in order of
preference
Full repayment within 50 days of purchases, interest-free
Minimum payment required only Fixed payment every month
Less than the minimum payment required
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LIMITATIONS OF THE STUDY
This study is bound by time constraints and theanalyses performed and data collected will be relevantfor the concerned time-period only.
The secondary data used in this study has been
previously researched and has not been recently re-established with reference to the current scenario, somaximum possible accuracy has been attempted withrespect to the secondary data.
The primary data has been gathered from a restrictedrepresentative sample set of 50 banking customers,owing to time, resources and cost constraints.
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CONCLUSION
Credit card purchases must be encouraged Whether its buying gold or electronic goods, booking holidays or air tickets, or
even paying a water and electricity bill, consumers are unfairly slapped with a levyfor simply opting to place their purchase on plastic. Having to pay extra costs forusing plastic undermines the move towards e-services. Times are changing. Thereis a movement to purchase goods and services online. E-services are efficient,manpower lean and are the way of the future. Having to pay extra costs to use a
credit card is a deterrent and undermines this move towards effective and efficiente-services. Merchants will need to simply build the methods of payment into thecost of doing business. In these times of challenging economic conditions, theconsumer should not be penalised for using a credit card to make purchases.
The factors determining the selection of credit card indicates that Low interestrates and cash back schemes would trigger the respondents motivation to select acard. Also the hidden charges and poor customer services are most common
problems faces by the respondents. Therefore banks should take steps to improveits post sales customer services, reveal all the charges in detailed schedule
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Bibliography
www.hdfcbank.com
www.icicibank.com
www.idbibank.com
www.hsbcbank.com
www.info2finance.com
www.commercialreport.com www.wikipedia.com
http://www.hdfcbank.com/http://www.icicibank.com/http://www.idbibank.com/http://www.hsbcbank.com/http://www.info2finance.com/http://www.commercialreport.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.commercialreport.com/http://www.info2finance.com/http://www.hsbcbank.com/http://www.idbibank.com/http://www.icicibank.com/http://www.hdfcbank.com/ -
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THANK YOU
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