Comparative analysis of consumer spending pattern of credit cardholders and non-cardholders in selected towns of Cavite / by Marissa D. Pinili.

Thesis (B.S.B.M.--Economics) Cavite State University

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

PINILI MARISSA DIMERO. "Comparative Analysis of Consumer Spending Pattern of Credit Cardholders and Non-cardholders in Selected towns of Cavite". Under Graduate Thesis, Bachelor of Science in Business Management major in Mai keting, Cavite State University, Indang, Cavite. Adviser: Ms. Grace M.Neptuno.
This study was conducted in selected towns of Cavite to: describe the socio-economic characteristic of cardholders and non-cardholders, determine the pattern of expenditures between credit cardholders and non-cardholders, and effects of credit cardholding on consumer expenditures. The respondents were equally distributed (15 for every category) in the four towns in Cavite that were selected. The distribution of respondents by town was determined through quota sampling methods and the respondents were selected and identified through the lottery or fishbowl technique. Data were gathered through the survey method with 120 respondents with the aid of the prepared questionnaire. The age of the respondents ranged from 20 to 64 with an average of 35 years old. Majority of them were female, and with an average household size of 5 members for the cardholders and 6 members for the non-cardholders. Majority of the respondents were married and non-cardholder were single. The existing average monthly income of cardholders were P16,859.14 for the total average income for non-cardholders were P1,311.00. The reasons for availing credit card services were convenience, security (safer than carrying cash), emergency purpose, better purchasing power. Reasons of non- cardholders not to avail credit card services were high interest and membership rates, not used very often and limited credit allowance. High frequency of credit card utilization is directly influencing the consumer spending activities, 57 percent of the respondent use their cards on a weekly basis. It can be inferred that some cardholders do not wait for the next payday to buy what they needed or simply wanted. The respondents said that their spending activities increased because of the credit card services. It can be concluded that credit cards really influence and encourage more spending to the cardholders. The ease of buying goods and services without the need to carry large amount of money is a big advantage to cardholders. Convenience is also one advantage why consumers use credit card. Result of the study revealed that the dis advantages of using credit card is that it encourage more spending (impulse buying), which has 53 percent. Other stated that it actually increased expenses/consumption having a 4 percent and high interest rate got 5 percent. The variables tested for the total major expenditures between the cardholders and non-cardholders there is highly significant relationship between the two variable. There is high probability for the cardholders, if you have a credit card sometimes you do not notice that their spending is too much, unlike non-cardholders they do not attempt to buy if they have no cash.

Submitted to the University Library 07/18/2007 T-2093