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Understanding Credit Card Usage Behavior of Elderly Korean Consumers for Sustainable Growth: Implications for Korean Credit Card Companies

Author

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  • Kwon Jung

    (KDI School of Public Policy and Management, 263 Namsejong-ro, Sejong-si 30149, Korea)

  • Moon Young Kang

    (College of Business Administration, Soongsil University, 369 Sangdo-ro, Dongjak-gu, Seoul 06978, Korea)

Abstract

The Republic of Korea is the fastest aging country in the world, and its silver market, which is the market segment broadly defined as senior citizens, began to emerge in 2008 as Korean baby boomers started to retire. Given that the assets of households headed by individuals 55 years of age and over are much higher than those of average Korean households, it is essential for Korean financial institutions targeting elderly consumer groups to understand their credit card usage behavior, as it can be very attractive and provide the potential to lead to sustainable growth for institutions, while the market targeting for this group has not been well developed yet. This study examined elderly Korean consumers’ credit card usage behavior in terms of key demographic variables. In this study, we found that the number of cards owned was negatively related to age and positively related to income level. In addition, those who were not retired owned more credit cards than those who were. Although the average monthly expenditure by credit cards was positively related to income, it was not significantly different in terms of age or retirement status. The findings from this research provide significant implications for marketers of credit card companies when searching for key target groups, particularly elderly consumers.

Suggested Citation

  • Kwon Jung & Moon Young Kang, 2021. "Understanding Credit Card Usage Behavior of Elderly Korean Consumers for Sustainable Growth: Implications for Korean Credit Card Companies," Sustainability, MDPI, vol. 13(7), pages 1-9, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:3817-:d:527004
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    References listed on IDEAS

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    1. David A. Wise, 1989. "The Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, number wise89-1, March.
    2. Florian Kohlbacher & Cornelius Herstatt (ed.), 2011. "The Silver Market Phenomenon," Springer Books, Springer, edition 2, number 978-3-642-14338-0, December.
    3. Hope Jensen Schau & Mary C. Gilly & Mary Wolfinbarger, 2009. "Consumer Identity Renaissance: The Resurgence of Identity-Inspired Consumption in Retirement," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(2), pages 255-276.
    4. Tomoki Sekiguchi & Fabian Jintae Froese & Chie Iguchi, 2016. "International human resource management of Japanese multinational corporations: Challenges and future directions," Asian Business & Management, Palgrave Macmillan, vol. 15(2), pages 83-109, April.
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