Factors Affecting Credit Card Payment Behavior of Undergraduate Students in Bangkok Metropolitan Region
Keywords:Spending Behavior through Credit Cards, Undergraduate Students, Marketing Mixes, Philosophy of Sufficiency Economy
Credit card has been a popular cashless mode of payment worldwide. The number of credit card holders in Bangkok metropolitan region significantly increases along with the amount of spending. One of the possible causes is that credit cards encourage low income consumers to spend extravagantly with the convenience of using a card, leading to a crisis of credit card debts. Interestingly, financial institutions expand target groups of credit card holders to undergraduate student group although the students have a high default risk because of their luxurious lifestyle. This group is easily convinced and most of the time makes quick compulsive decision to purchase.
This research aims to study the demographic factors and marketing mixes, that influencing credit card payment behavior of undergraduate students. The respondents are undergraduate students from state and private universities in Bangkok Metropolitan region. The major findings revealed that majority of senior undergraduate students, who had part time jobs, mostly held only one credit card of Krung Thai bank. Their main reasons on owning a credit card were to use in emergency cases and relaxation. The level of effect from marketing mixes on credit card use was at a high level. The various types of credit cards were also considered as important factors in decision-making. The understanding of Philosophy of Sufficiency Economy was at the moderate level and had an inverse relationship with spending through credit card at a statistically significant 0.05 level.
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