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An exploratory study of factors affecting credit card brand and category selection in India

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Abstract

This article aims to identify various credit card selection factors in the context of an Asian emerging economy – India. Considering the recent emergence of the three-tier banking system in India, the study proposes to investigate whether there exists an association between credit card selection factors and the type of credit card issuing bank (public, private national or private foreign). The article also seeks to find out whether the income level of the individual determines the type of credit card bank category selection, as prior literature suggests that demographic factors are closely related to credit card selection and usage patterns. The analysis was carried out using a mixed method research design involving thematic analysis of focus group data, factor analysis, PERMAP analysis and multiple correspondence analysis in different phases. Five primary credit card selection factors were identified. A strong correspondence between credit card selection factors, personal income levels and choice of credit card issuing bank was found. Accordingly, credit card selection factors and personal income level were together identified as factors affecting the type of bank selected. The phenomenon of bank category-based stereotyping of brands is emphasized based on the analysis. The implications of this phenomenon with respect to brand identity conception, target segmentation, brand positioning and marketing communication are discussed.

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Authors and Affiliations

  1. Marketing and Strategy, IBS Hyderabad, IFHE CAMPUS, IBS Hyderabad, Andhra Pradesh, 501504, Hyderabad, India

    Abhilash Ponnam, Debajani Sahoo, Abhigyan Sarkar & Surya Narayan Mohapatra

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  1. Abhilash Ponnam
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  2. Debajani Sahoo
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  3. Abhigyan Sarkar
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  4. Surya Narayan Mohapatra
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Correspondence to Abhilash Ponnam.

Additional information

1(MBA, PhD) is Assistant Professor in Marketing and Strategy Department at IBS Hyderabad. His major research interest is in the areas of motives and benefits elicitation, market segmentation and developing mixed method research designs. His previous publications include: Journal of Product and Brand Management, Journal of Customer Behavior, Journal of Targeting Measurement and Analysis for Marketing, International Journal of Hospitality Management and Managing Leisure. He serves as ad hoc reviewer for Qualitative Market Research, Journal of Brand Management and International Journal of Hospitality Management.

2(MBA, MPhil, PhD) is working as Assistant Professor in Marketing and Strategy Department at IBS Hyderabad. Her areas of interest are services marketing, customer relationship management and customer lifetime value. Her previous publications include: Journal of Targeting Measurement and Analysis for Marketing and VILAKSHAN – XIMB Review. She acts as reviewer for Journal of Service Research and Journal of Case Research.

3(MBA, PhD) is Assistant Professor in Marketing and Strategy Department at IBS Hyderabad. His major research interest is in the areas of experiential and hedonic consumption and qualitative research. His previous publications include: Journal of Brand Management, Journal of Customer Behavior, The Marketing Review, Journal of Product and Brand Management and Qualitative Market Research: An International Journal. He serves as an ad hoc reviewer in Journal of Customer Behavior and Qualitative Market Research: An International Journal.

4(MSc, MBA, CAIIB, CISA, PGDCA) is presently working as Associate Professor (Finance) at IBS, Hyderabad. He worked in a public sector bank as Chief Manager and has a banking experience of over 25 years. His research interests are in the areas of operational risk management in banks.

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Ponnam, A., Sahoo, D., Sarkar, A. et al. An exploratory study of factors affecting credit card brand and category selection in India. J Financ Serv Mark 19, 221–233 (2014). https://doi.org/10.1057/fsm.2014.17

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  • DOI: https://doi.org/10.1057/fsm.2014.17

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