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Credit Card Selection Criteria: Singapore Perspective

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Author Info
Lydia L. Gan (Division of Economics,School of Humanities and Social Sciences, Nanyang Technological University, Singapore)
Ramin Cooper Maysami (Department of Economics and Finance, School of Business Administration, University of North Carolina at Pembroke, North Carolina, USA)
Abstract

This study used factor analysis to examine credit card selection criteria among Singaporeans. The results showed that convenience of use and protection, economics, and flexibility were the main drivers, while the reputation of card was the least important in determining credit card selection in Singapore. Demographic results showed that high-income earners, the better educated, the elderly, married and the professional preferred the convenience-protection factor to the economic-promotional factor. Females were shown to value the promotional factor more, while males preferred the economic factor. The ethnic Malays placed a greater emphasis on the economic factor than did the ethnic Chinese. The results also showed that the number of credit card owned in Singapore is positively related to education, income, age group, and marital status. Those holding a single credit card stressed the economic factor more than those holding many cards. In Singapore, the higher income earners, the better educated, older adults, females, married, and both Chinese and Indians are more receptive to paying their monthly credit card balances in full. The results demonstrated that Singaporeans do not view the credit card selection criteria much differently from respondents from other developing and advanced nations.

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Publisher Info
Paper provided by Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre in its series Economic Growth centre Working Paper Series with number 0610.

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Length: 50 pages
Date of creation: Oct 2006
Date of revision:
Handle: RePEc:nan:wpaper:0610

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Related research
Keywords: credit card selection; credit card usage; banking regulation; factor analysis;

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Find related papers by JEL classification:
G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

References listed on IDEAS
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  1. Glenn B. Canner & Charles A. Luckett, 1992. "Developments in the pricing of credit card services," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Sep, pages 652-666.
  2. Kinsey, Jean, 1981. " Determinants of Credit Card Accounts: An Application of Tobit Analysis," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 8(2), pages 172-82, September.
  3. Thomas A. Durkin, 2000. "Credit cards: use and consumer attitudes, 1970-2000," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Sep, pages 623-634. [Downloadable!]
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This page was last updated on 2009-12-9.


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