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Credit Cards Essay

5200 words - 21 pages

“Comparative Analysis of Impulsive Buying Behaviour between Youth and Elderly Credit Card Consumers”

A research report submitted in partial fulfilment for the degree of Master of Business Administration

Submitted By

Aditi Bhatt C 02
Anshul Chaudhary C 04
Rohit Kumar C 35
Rohit Nair C 36
Vinika Yadav C 53

Symbiosis Institute of Management Studies

Symbiosis International University

September 2014


We take this opportunity to express our gratitude to the people who have been instrumental in the ...view middle of the document...

No | Figure | Page No. |
1 | Frequency of credit card usage | 8 |
2 | Primary use of Credit Card | 9 |
3 | Credit card expenditure | 10 |
4 | Credit Card use for online purchase and bill payment | 11 |
5 | Preference of Credit Card use if EMI option is Available | 13 |
6 | Does discounts and offers influence credit card purchase | 14 |


Credit card is a thing which came in India just a few years back but has established itself in everyone’s wallets and pockets. Report has been prepared on the topic “Comparative Analysis of Impulsive Buying Behaviour between Youth and Elderly Credit Card Consumers”. We have set objectives of examining the effect of age on impulsive buying behavior in credit card users and to also examine the types of goods in which impulsive buying behavior is more prominent. In order to determine the factors affecting the buying behavior and cause of it we have conducted a study between 20 to 51 age group of people in Pune area. The study was conducted on 100 people of various age groups and different professions and the questionnaire was prepared accordingly with subjective as well as objective questions seeking opinion. The conclusion impulsive buying is hugely affected by the possession of credit card and also by the age factor. The young people are more prone to impulse buy things then the older generation that basically uses it for bill payment and convenience it provides and prevents long lines. The credit card companies should mainly focus on the young crowd who have recently started earning their own money as these people have more risk taking ability and indulge more in impulsive buying with their credit cards. The older generation uses credit card less and relies more on cash purchases so that they can plan their expenses.

Keywords – credit card, impulse buying, buying behavior

Credit card is a mode of payment that is widely used by consumers to purchase goods and services on credit. The growth in credit card usage is parallel with the growth in other types of consumer credits such as bank overdrafts, personal loans, hire purchase and others. Although credit card stimulates consumer spending and offers flexibility to consumers, it also has its setbacks. The current developments of financial services globally have increased the availability and usage of credit, and directly increase the indebtedness of consumers. Those who use credit cards usually will make extra purchases and also tend to spend over their means. Consequently, they carry large balances in their credit cards which tend to accumulate because they usually pay only the minimum amount required by the banks. Plastic money is how the credit card is referred to in the western world. The credit card culture which is dominant in US has caught up with many parts of the world and now it’s getting popular in India too. India has about 18-20 Million Credit card users. The banks are happy to...

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