The influence of credit cards on consumer buying behaviour.

Abstract

The study investigated the influence of credit cards on consumer buying behaviour among MBA students of first, second and third year at the University of KwaZulu – Natal. The main purpose of the study was to determine how credit card usage influence buying behaviour of students. The research objectives which guided the entire investigation were: to study the influence of possession of a credit card on consumer buying behaviour; to determine the influence of self-esteem, materialism, budget constraints and impulsive purchase behaviour on credit card usage (positive or negative) among students of the University and to determine the relationship between compulsive buying and credit card. The study employed the positivist paradigm to investigate the subject matter. A descriptive study was carried out. The study employed the quantitative research method. The study was conducted at the University of KwaZulu-Natal. The population of the study was the MBA students of first, second and third year at the University of KwaZulu – Natal who are in possession of credit card. Quota sampling method was used to select 35 respondents for the study. A validated questionnaire was used to collect the data from the respondents. The reliability and validity of the data were measured using Cronbach’s alpha coefficient and factor analysis. The measurement scale used was the 5-point Likert scale. The quantitative data collected was analysed using the Statistical Package for the Social Sciences [SPSS], version 25.0. The results of the study showed that credit card usage (Mean = 2.50) had a significant positive influence on the buying behaviour of the MBA students at UKZN. The results further indicated that self-esteem (Mean = 2.46), materialism (Mean = 2.31), budget constraint (Mean = 2.11) and impulsive buying (Mean = 2.40) had positive influence on credit card usage (Mean = 2.50). Besides, the results showed that there was a significant positive relationship between compulsory buying (Mean = 2.26) and credit card usage (Mean = 2.50). The following recommendations were made, namely: adequate planning and budgeting; awareness/education on the consequences of credit card indebtedness; education on the use of credit cards; and public policy to protect consumers from predatory practices.