A consumer oriented investigation of credit buying

Abstract

This study aims to understand the consumer attitude, opinionand behaviour patterns on various aspects relating to consumercredit. Importance of credit availability for retailers andcommercial banks is investigated together with other attributesaffecting bank and retailer selection decision. Profiles forprevious credit users and potential patronizers of consumerfrom banks and retailers are studied.The issues mentioned are analyzed with respect to various socio-economicand demographic variables.The study includes a review of the previous literature aswell as a field survey conducted through a questionnaire. Thedata was analyzed using SPSS-X and the findings were presentedtogether with the conclusions and implications of the study.The potential patronizers of consumer credit were found tobe relatively lower income individuals, seeking additionalpurchasing pCH-ler rather than convenience through credit.Interest rate has been emphasized to be the most importantelement in credit buying.It was shown in the study that, although the public has apositive attitudesocially desirablecredit availability.of credit buying.towards credit as being economically anddue to the convenience created throughindividuals are also aware of the dangersSpeed in bank transactions and reputation of bank were foundto be major factors in bank selection while credit availabilityis sure to have a bright future together with other servicesbanks are providing. On the other hand, after-sales servicesand price level were considered important in retailer selectionwhereas credit availability was found to be of minorimportance.Importance of credit availability has been emphasized fordurable goods while services and non-durables were given lessimportance. Demand fo·r durable goods as well as some nondurableitems and services is expected to increase parallel tocredit availability. It was observed that the consumer tendencyis to prefer longer terms for durable items and shorter termsfor non-durables and services.Understanding of the findings of this study might helpcompetitive suppliers of consumer credit in developing andimplementing marketing strategies.