Behavioral Analysis of Credit Card Users in a Developing Country: A Case of Bangladesh

  •  Leo Dewri    
  •  Md. Islam    
  •  Netai Saha    


Economic structure plays a vital role to drive consumer spending attitudes in different countries. Bangladesh is considering as a lower middle income country that indicates citizen of Bangladesh doesn’t have significant ability to increase their spending habits. Bangladeshis’ are experiencing credit card not more than two decades. Also accepting credit card by wider merchants in lieu of payment is also comparatively new practice in Bangladesh. In this regard, the financial institutions / credit card issuers and retailers are experiencing new spending behaviors of credit card holders. Primarily, the research attempts to investigate behavioural usage patterns of credit card users in the emerging economics. Secondly, how the external factors are influencing the credit card users to use credit cards in their day-to-day life. To conduct the research 500 credit card holders are approached of which 393 credit card holders responded and been analyzed. The research concludes that there is significant relationship among – earnings and using full credit limit; different age group has diverse tendency to use credit card and repayment attitudes; profession and usage behavior of credit card; e-repayment attitudes to pay bill by different age groups. This study also reveals that there is no-significant relationships among gender differences is not an concern for using credit card; single credit card features are truly not motivating credit card users to use credit card frequently; interestingly external factors (like: discount offers or other card facilities) are not only driving force to encourage credit card holders to use their credit cards frequently. The study recommends fragmenting the credit card market in Bangladesh based on consumer demographics and attitudes towards using short/midterm debt. 

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