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The Adoption of Credit Cards by Kenyan Bank Customers: A Case Study of Kisumu City

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dc.contributor.author OKOTH, Zibone Akoth
dc.date.accessioned 2021-08-02T07:38:02Z
dc.date.available 2021-08-02T07:38:02Z
dc.date.issued 2013
dc.identifier.uri https://repository.maseno.ac.ke/handle/123456789/4258
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
dc.language.iso en_US en_US
dc.publisher Maseno University en_US
dc.title The Adoption of Credit Cards by Kenyan Bank Customers: A Case Study of Kisumu City en_US


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