Pooja Ppt Credit Card

8/2/2019 Pooja Ppt Credit Card

1/43

A PRESENTATION ON

CUSTOMER PREFERNCE OF CREDIT CARDS

OFFERED BY BANKSIN

JAIPUR CITY

Made by

Pooja Agarwal

FMS Trimester 2nd


2/43

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.


3/43

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


4/43

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.


5/43

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.


6/43

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.


7/43

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.


8/43

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.


9/43

DATA INTERPRETATION

&ANALYSIS


10/43

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


11/43

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


12/43

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


13/43

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


14/43

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


15/43

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.


16/43

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


17/43

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.


18/43

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


19/43

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.


20/43

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


21/43

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.


22/43

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


23/43

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.



24/43

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


25/43

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


26/43

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


27/43

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.


28/43

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.


29/43

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


30/43

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


credit cards over other personal finance options by the respondents


31/43


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.


32/43

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.


33/43

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.


34/43

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


35/43

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.


36/43

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


37/43

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.


38/43

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


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


39/43

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.


40/43

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


41/43

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/


42/43

THANK YOU


43/43

ANY QUERY???

Documents

Pooja Ppt Credit Card