Purpose of the study - The purpose of the study was to identify what the attributes of acredit card were that consumers found desirable and that led to acquisition of aparticular credit card. Further analysis was conducted to identify whether there were anydifferences or preferences for these attributes according to certain demographics of theconsumer.Design / Methodology – Conjoint Analysis was used to allow members to identify whatproduct bundle they preferred. This was done using hypothetical credit cards thatconsumers were asked to rate on a scale of 0 – 10. This rating was done during 150 faceto face interviews. The data from these interviews was then analysed using Sawtoothmarket simulator which makes it possible to identify which attributes and utilities werethe most attractive to the consumer. Further studies using One way ANOVA and a Twosample T –test was used to identify demographics differences.Findings – On average, consumers found the source of the card to be the mostimportant factor when choosing a credit card, and the financial components of a creditcard were more important on average than the value added benefits. Preference for theseattributes and utilities was significantly influenced by household income with maritalstatus and age showing less influence in the preference of certain attributes and utilities.Interestingly, the way people pay their cards, whether they were revolvers orconvenience users, has shown to have very little impact on the attributes that they preferin a credit card.Value – Despite the growth of credit cards in the South African market in recent years,there seems to be little research in South Africa about why consumers would choose aparticular credit card. Introduction of the National Credit Act (no 34 of 2005) has alsocaused people to become more discerning about the credit that they choose to carry,meaning that the credit card issuer needs to ensure that their cards are appealing andattractive to the market that they are trying at reach. This study intends to close that gap
