Customersʹ credit card selection criteria in perspective of an emerging market

The credit card market has expanded radically in Pakistan, both in terms of cards variety and usage. A wide variety of local and international cards, issued by different domestic and foreign banks, is available in the market. Despite recent financial crisis, there are still huge potential for future growth and further penetration existing in Pakistan. The purpose of this study is to explore and investigate various attributes that customers consider of importance while selecting a credit card in Pakistan. The sample of this study was 800 credit cardholders. The information was collected from existing cardholders through a self-administered questionnaire. It contained questions related to credit card market, cardholderʹs profile and the relative importance of the main attributes that play a role in card selection. The data collected were then analyzed to find out the important factors that influence the credit card selection. The results show that convenience, economical use, both local and abroad, and sense of security are important attributes that customers consider while selecting a credit card. The findings of this study can be helpful for financial institutions to focus on the features, which customers consider important while selecting credit cards and can also be used for optimal marketing mix allocations in prevailing economic situation in the country.