Browsing by Subject "finance management"

The objective of this study is to discover, how consumers use their credit cards and what kind of conceptions are associated with credit cards. The study also focuses on what is the impact of different background factors on conceptions and perceptions of acceptable credit card use. The study material was collected using an internet questionnaire, which consisted of both closed-ended and open-ended questions. 159 consumers answered the questionnaire. The results of closed-ended questions were analysed by using quantitative research methods. Frequencies were calculated from the research material, and variance analysis and t-test were used to study the impact of the different background factors. Qualitative methods were used to analyze open-ended questions. The study revealed that there are various ways to use credit card. Also the conceptions associated with credit cards vary a lot. A typical way to use credit card is to use it when it is considered as the only payment method, ie. when travelling abroad or shopping in the internet. Credit card is also used to balance expenditures and earnings, for example in large purchases as a way to divide the payment for several months. Credit card is also typically used as a makeshift, only in situations when there is an urgent, obligatory expenditure. Several respondents also mentioned that they use credit card when it is useful to them and when it offers benefits. Setting clear boundaries on credit card use was also distinguishing factor among respondents. The conceptions associated with credit cards vary widely. Some of the respondents thought that credit card is deceptive and dangerous and can easily lead to over-consuming. These respondents generally avoid using credit card. For other respondents credit card is a modern means of payment which can be used anytime and anywhere. Many respondents considered credit card usage acceptable as long as ones own earnings are considered when using the card. Many respondents also thought that credit card use should be planned beforehand and the purchases should be intended. In general, credit card is perceived as consumer credit and credit card money is seen as debt. Credit card is widely accepted as a payment method when it is used as a productive credit, for investing. Women are considerably more eager than men to link credit cards with over-consuming and debt problems. They see credit card use clearly more challenging than men do. In general, credit card use is considered challenging and respondents thought that certain skills are needed to be able to control the use of credit card. Other background factors than gender had no clear effect on the results.