Moderating role of perceived risk in credit card usage and experience link

Purpose – The purpose of this paper is to present the exploratory research into the moderating influence of perceived risk on credit card usage and experience link and to know, among various types of risks, which risk is mostly perceived by credit card users. The study also investigates the dimensions of usage and service experience and their relative significance in credit card industry. Design/methodology/approach – The data were collected from 220 credit cardholders working in the various business and service units operating in Gandhi Nagar area of Jammu city. Findings – The study captures a clear and strong moderating effect of perceived risk on usage and service experience link. Time risk appeared to be the strongest moderator. Further, sense of security and confidence benefits emerged as the strongest predictors of usage and service experience, respectively. Research limitations/implications – The study is based on single financial service only, i.e. credit card. To generalise the results in financial and allied sectors, such as banking, retail or travel, where credit card usage is highly prevalent, this study need to be extended in future research. Further, influence of customer income, occupation and education on credit card use can also be seen in the future. Finally, focus can also be given to the identification and testing of risk-reducing strategies in future research. Originality/value – There is no previous research on Indian credit card industry which examined the influence of perceived risk on its use among Indian customers and subsequently on their experience.