Marketing Research Report: Credit Card Usage at Commonwealth Bank

This report delves into the realm of customer credit card spending, a significant aspect of modern consumer culture. It begins by exploring the increasing popularity of credit cards and their impact on consumer purchasing habits. The report then moves on to analyze the management problems associated with credit card usage, specifically focusing on challenges faced by Commonwealth Bank, such as lack of awareness, limited card swipe facilities, and technical issues. It proposes potential solutions, including investment in backup power, encouraging shop adoption of card machines, and enhancing customer education. The research objectives are to determine the influence of credit cards on Commonwealth Bank, assess consumer perceptions and satisfaction, and scrutinize the correlations between various factors and credit card usage. The report further outlines different types of research methodologies that can be employed to analyze the data, such as age versus expenditure, major credit card usage, preferred payment options, and marital status. The conclusion highlights the growth of credit card usage and the need for banks to offer better customer advice and address customer satisfaction issues.

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Marketing Research Essential
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Table of Contents
Introduction.................................................................................................................................................3
Literature Review........................................................................................................................................3
Management problem..................................................................................................................................4
Research problem........................................................................................................................................4
Research objectives.....................................................................................................................................5
Type of research..........................................................................................................................................5
Conclusion...................................................................................................................................................6
Reference.....................................................................................................................................................7

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Introduction
This report is about customer spending via credit card, which has become the consumer's culture.
The statistics show there is an increase in popularity. The rise of the credit card has seemingly
eased the opportunity of the consumer purchase for making credits. The report will analyze the
problem management and encounter absolution to encounter the problem.
Literature Review
The Credit card is a small plastic plate given to the individual customer as the payment system.
This card allows the holder to buy products and services. The provider of the card develops an
account and endowments a statement of credit to the user, from which the customer can borrow
the cash in advance for the payment. The growth in the Common Wealth Bank, there is an
increase in the expectation of clients. There is an expectancy and more complexity in the
necessary change of the market in the banking services in the coming years. The Common
Wealth Banks endorse the use of the technology at a high time, whereby they are required to
revolutionize their market to continue making the share to stay at the top. There should be wide-
ranging care on cultural orientation since a principle is needed to concertize social marketing.
The service generation and banking thought to have the ways to satisfy the users and cultural
orientation (Ming-Yen Teoh, Chong, and Mid Yong, 2013).

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Management problem
The use of credit card on commonwealth has not gained widespread popularity, and this is due to
customer lack of awareness, fewer shops having card swipe facility and weak links. Another
problem most of the time banks' relationships were down when customer try to use credit cards
on the swap machine; this is because of electricity catastrophe or telephone line difficult. The
customer prefers to make cash payment (Singh, Murthi, and Steffes, 2013). The credit card users
claim the secreted controls of banks were the main problem in the approval of malleable money.
Research problem
This states the possible solution, which should be understood to solve the problem (Zareapoor,
and Shamsolmoali, 2015):
- The company should invest in an electricity backup generator that can enable to overcome
the challenges and ensure a free service.
- To encourage shops to invest in facility swap machine. This will help customers to spend via
credit cards.
- There is a lack of awareness of customer in the usage of the credit cards, and they should be
provided with knowledge on how to poses the credit card.

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Research objectives
The objectives of this research report are (Hair, Wolfinbarger, Money, Samouel, and Page,
2015):
o To determine the influence use of credit cards on the commonwealth bank.
o To determine perception, satisfaction, and awareness with credit cards of the consumers.
o To scrutinize the correlation between each factor and the use of credit cards.
Type of research
The following are types of research that can be used to conduct the research analysis (Rushin,
Stancil, Sun, Adams, and Beling, 2017):
1. Age versus the credit card expenditure – this is an important finding. The reason to use
this method is to research the age group ranging from 31-45 because they are the one who
plans the expenses. Most of these people their lifestyle is unplanned, and also they know
where to spend and use the credit card.
2. The major credit card used – the method help in the findings for which bank has many
people using the credit card. This method analysis identifies the bank which has multiple
premium customers with high-value transactions
3. The most opted option when somebody checks for a credit card – most people are likely
on the online thing offices the entire process is at ease due to the usage of credit cards.
4. The marital status plus how they spend through the credit card – the credit card
expenditure goes hand in hand with the marital status, in this finding the singles spend
much for leisure while the financial planning is low at the age of below 30 mostly they
spend on vacation and electronics.

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Conclusion
The credit cards witness considerable growth in the past years. ICICI, the critical player notched
the landmark by taking the position one in the player segment. It went further and concluded
there are several bank user who does not know the usage of the Credit cards (Hayashi, 2012). A
lot of people see the credit card, but they don't possess it because of fearing the debt trap. The
educated and high earners people usually use the credit cards resulting in high limit credits. The
credit card is yet to find its potential markets since the cardholders lack the relevant proper
advice from the banks. Customer satisfaction is found to be less due to the high rates, and the
extended credit card use is less due to the high proposition of cardholders.

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Reference
Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samuel, P. and Page, M.J., 2015. Essentials of
business research methods. Routledge.
Hayashi, F., 2012. Mobile payments: What's in it for consumers?. Economic Review-Federal
Reserve Bank of Kansas City, p.35.
Ming-Yen Teoh, W., Chong, S.C. and Mid Yong, S., 2013. Exploring the factors influencing
credit card spending behavior among Malaysians. International Journal of Bank
Marketing, 31(6), pp.481-500.
Rushin, G., Stancil, C., Sun, M., Adams, S. and Beling, P., 2017, April. Horse race analysis in
credit card fraud—deep learning, logistic regression, and Gradient Boosted Tree. In 2017
Systems and Information Engineering Design Symposium (SIEDS) (pp. 117-121). IEEE.
Singh, S., Murthi, B.P.S. and Steffes, E., 2013. Developing a measure of risk-adjusted revenue
(RAR) in the credit cards market: Implications for customer relationship management. European
Journal of Operational Research, 224(2), pp.425-434.
Zareapoor, M. and Shamsolmoali, P., 2015. Application of credit card fraud detection: Based on
bagging ensemble classifier. Procedia computer science, 48(2015), pp.679-685.