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Assessment of Features and Market Segmentation of the Credit Card Industry in Malaysia

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  • Alam, Md. Mahmudul

    (Universiti Utara Malaysia)

  • Ismail, Russayani
  • Said, Jamaliah
  • Dirie, Khadar Ahmed

Abstract

To operate successfully in this credit card industry, various kinds of credit cards are offered to distinct user groups. This empirical study is conducted in Malaysia, and it examines the features of different types of credit card available. By using descriptive and one-way ANOVA test, this study analyses data of 234 credit cards which were collected from ringgitplus.com and imoney.my websites. The cards are categorised based on the usage purpose like airline tickets, insurance, dining, entertainment, fuel, lifestyle, groceries, shopping, utilities healthcare and general use. In total thirteen features are analysed for all of these cards. The findings show there is no significant difference in the purpose of cards based on the features of interest and profit rate, balance transfer annual charge, annual fees, annual fees for supplementary card, late payment, late payment maximum fees, cash withdrawal charges fees, minimum annual income, minimum age for primary cards, maximum age for primary cards, and minimum age for supplementary cards. However, only two features are statistically significant among the cards, these being cash back and interest rate on cash withdrawal. The findings will provide important insights for business managers, credit card users, and other policymakers regarding features and market segmentation in the credit card industry in Malaysia.

Suggested Citation

  • Alam, Md. Mahmudul & Ismail, Russayani & Said, Jamaliah & Dirie, Khadar Ahmed, 2022. "Assessment of Features and Market Segmentation of the Credit Card Industry in Malaysia," OSF Preprints j84f5, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:j84f5
    DOI: 10.31219/osf.io/j84f5
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    References listed on IDEAS

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    1. Tae Soo Kang & Guonan Ma, 2007. "Recent episodes of credit card distress in Asia," BIS Quarterly Review, Bank for International Settlements, June.
    2. Loke Yiing Jia, 2007. "Determinants of Merchant Participation in Credit Card Payment Schemes," Review of Network Economics, De Gruyter, vol. 6(4), pages 1-21, December.
    3. Alam, Md. Mahmudul & Ismail, Russayani & Said, Jamaliah & Pahlevi, Reza Widhar, 2021. "Assessment of Credit Card Market Features in Malaysia: Risk of Achieving Women’s Financial Empowerment," OSF Preprints jcua6, Center for Open Science.
    4. Alam, Md. Mahmudul & Ibrahim, Yusnidah Bt & Sriyana, Jaka, 2022. "Do Education Sector Credit Cards Differ with Other Credit Cards in Malaysia?," OSF Preprints h9b7c, Center for Open Science.
    5. Md. Mahmudul Alam & Russayani Ismail & Jamaliah Said & Reza Widhar Pahlevi, 2021. "Assessment of Credit Card Features in Malaysia: Risk of Achieving Women's Financial Empowerment," Post-Print hal-03538174, HAL.
    6. Garcia, Gillian, 1980. "Credit Cards: An Interdisciplinary Survey," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 6(4), pages 327-337, March.
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