| dc.description.abstract | Credit card allows the users to be flexible and increases ability to spend for shoppers. In addition,
installment plan gives more times for paying back the amounts used in later periods. Customers
do not apply for cards because; they fear debt, some are risk averse, for debit cards- fear of
technology, fear of fraud for both credit and debit through lost cards, carjacking usable
worldwide. The purpose of the study was to explore factors affecting the adoption of credit cards
of Kenyan bank customers. The specific objectives are: determine the level of customers'
awareness of existence and benefits of credit cards, establish the level of adoption of credit card
use by customers in Kisumu city and to find out challenges faced by customers in using credit
cards. In this study, the focus was only on bank credit cards. The research was conducted in 13
banks in Kisumu which has a total of 9744 credit cardholders. The data collection instrument for
the credit cardholders and non-credit-cardholders was a questionnaire and the instrument for data
collection for the card issuance was an interview guide. Data was collected from 384 respondents
in Kisumu City and later presented using tables and charts. The results of the study show that on
awareness, where credit cards as a payment mechanism is more accessible, consumers attend
more to a product's benefits relative to the cost aspects of the product. Conversely, when cash as
a payment mechanism is more accessible, consumers attend more to cost aspects of the product
(broadly defined to include price, delivery time/costs, warranty costs, installation costs, etc.)
relative to product benefits. The banks agree that there is a problem of faulty facilities. However,
the banks do not perceive these as major problems. Although the respondents' levels of
involvement in their credit card were often rated at medium to high, there was no clear
connection between adoption and other constructs. Conclusions that can be drawn from the
findings are: customers are aware of credit card offered by banks, more males adopt credit card
use of54.5% as compared to women 45.50%.many people in private sector adopt credit card use
of 56.1% as compared to unemployed of 3.60% and in terms of the construct of involvement is
that younger respondents generally showed higher levels of credit card adoption than the older
customers did. Customers are of the opinion that rewards should be offered to credit card holders
by not pegging limits on their income but customer loyalty. The study recommends that some
incentives should be made to the customers that are being offered to credit card holders today to
increase the level of adoption. Second recommendation is for the bank to organize for
sensitization program, address system failure and to put in place stringent IT security policy. | en_US |
