An empirical investigation of US credit card users: Card choice and usage behavior

The purpose of this research is to analyze household credit card choice and usage behavior. The theoretical model used to analyze the credit card choice behavior is a conjoint model which assumes the utility maximization and rational evaluation of the available credit card alternatives. The study also investigates the effects of credit card attitudes and practices on the credit card usage behavior. The data for the study were collected in southcentral Pennsylvania and analyzed by using traditional conjoint analysis and factor analysis. Study findings indicate that credit card holders and users show distinct differences in the use and selection of credit cards. Four different types of credit card customers identified necessitate the development and implementation of multiple target market strategies by credit card issuing companies. The results of the study offer important managerial and public policy implications for decision makers at banks, financial institutions and other credit card dispensing firms.