1. THE IMPACT OF CREDIT CARD
PAYMENT METHOD AMONG
CUSTOMERS OF MUSIC RETAIL
STORES IN SM CITY CEBU
#TeamBangan
Group
2. STATEMENT OF THE PROBLEM
SPECIFIC
• convenience
• Level of security
• purchasing behavior through long term credit terms
• motivational behavior of credit purchases
• the impact of credit card payment if the store offers
credit cards one of their payment options
• the impact of credit card payment method if the
store DOES NOT offers credit cards one of their
payment options
4. LITERATURE REVIEW AND STUDIES
• According to Feinberg (1986), the probability, speed
and magnitude of spending were enhanced by the
presence of credit card cues.
ADVANTAGES
• Increasing Sales
• Higher Sales Amounts
• Convenience
• Improves Cash Flow
• Makes Business
Competitive
DISADVANTAGES
• Cost and Fees
• Disputes
• Fraud
• Complicates Record
Keeping
5. METHODOLOGY
• Descriptive questionnaire.
• Non-probability quota sampling to 50 or
more respondents
• Credit card holders and participated retail
store’s customers at the same time
• All data gathered have to be tabulated
• Weighted Mean
6. SCALE INDICATORS RANGE INTERPRETATION
4
(SA) Strongly
Agree
3. 25 – 4.00
It means you agree the situation or
factors at very higher level.
3 (A) Agree 2.50 – 3.24
It means you agree the situation or
factors at high level.
2 (D) Disagree 1.75 – 2.49
It means you do not agree the
situation or factors at high level.
1
(SD) Strongly
Disagree
1.00 – 1.74
It means you do not agree the
situation or factors at higher level.
7. QUESTIONS
WEIGHTED
MEAN
INDICATORS
1. Credit card payment is convenient for me to buy
compared to cash.
3.37 STRONGLY AGREE
2. It is safe for me to shop using credit cards. 3.37 STRONGLY AGREE
3. I am motivated to buy through long term credit
terms or low interest rate.
3.17 AGREE
4. I am motivated to buy more with the use of credit
card compare to cash purchase.
2.80 AGREE
5. I am motivated to buy products from the store if the
store offers credit card payment option. 2.85 AGREE
6. I will still buy products from the store if the store
does not offer credit card payment options. 3.31 STRONGLY AGREE
8. RECOMMENDATION
• They must provide credit card payment method
even though almost of their customers pay on
cash.
• The stores must give points and incentives with
their credit card purchases
• The stores should give sales discounts to their
loyal customers
• For the researchers, they must expound the
study regarding the credit cards in relation to the
retailing and the credit transactions
Good afternoon, everyone especially the panelist for this today’s thesis defense. I’m Christian, the group’s presenter. I am here to present our group’s thesis presentation entitled “The Impact of Credit Card Payment Method Among Customers of Music Retail Stores in SM City Cebu”.
Credit card Payment Method refers to paying with credit cards of their purchases other than cash. The main focus of this study is to determine the level of impact of credit card payment method among the credit card holders.
By formulating the objectives, we developed General Statement of the Problem and the Specific Subproblems. Our General Statement of the Problem is to determine the impact of credit card payment method offered by these establishments to the convenience, safeness, purchasing behavior through long-term credit, motivational behavior of credit purchases, the behavior of customers between credit-offering store and non-credit-offering store. While our specific subproblems are:
- To determine the customer’s convenience of credit card payment method
- To know the customer’s level of security of credit card payment method
- To know the purchasing behavior through long term credit terms
- To know the motivational behavior of credit purchases
- To know the impact of credit card payment method to the perceptions of customers if the store offers credit cards one of their payment options
- To know the impact of credit card payment method to the perceptions of customers if the store does not offers credit cards one of their payment options
This is the conceptual framework of this study. The schematic diagram starts from a Music Store Customer who transacts store’s credit payment method where you pay credit cards. After this, it is what to know the factors of this credit transactions associated with the credit cards. These factors are: convenience, credit terms, security, motivation and consumer behavior.
In consumer behavior, we assumed in two different situations. It is how consumers behaved between credit-offered store and non-credit-offered store and the level of impact among them. All these factors will leads to CUSTOMER PURCHASE DECISION.
In the literature review and Studies, they gathered theories from the sources which are related to this study. One of our sources, from the works of Richard A. Feinberg, “Credit Cards as Spending Facilitating Stimuli: A Conditioning Interpretation” .
He said that the probability, speed and magnitude of spending were enhanced by the presence of credit card cues. A conditioning explanation was used to interpret the results. In psychology, cue is a feature of something perceived that is used in the brain’s interpretation of the perception which means it is a signal to a person to do something. For example, if a buyer has credit cards, the tendency is he will use it to purchase. The presence of credit cards will make them to purchase.
In some sources, the credit researchers agree that credit cards facilitate spending.
However, credit cards have advantages and disadvantages in the business.
What are these advantages?
First is the Increasing Sales. Credit cards can increase the sales volume of a business. Primarily, this is because accepting credit cards broadens the customer base of business, opening the doors to customers that cannot or choose not to pay cash for products and services.
Second is the higher sales amounts. In point-of-purchase transactions, credit card use can increase sales amounts and increase the chance for impulse buys because the customer doesn't have to have cash on hand to purchase something they see in the business location. For example, a customer might come into the establishment to buy a gift for a friend, but walk out with a greeting card, gift bag, a candy bar and a bottle of water in addition to the gift they originally came to buy.
Third is the Convenience. Customers can buy what they want now rather than having to wait, so accepting credit cards adds a level of convenience for the customer. They do not have to run to an ATM to get the cash they need to make a purchase.
Fourth is the Improves Cash Flow. The business no longer has to invoice clients and wait for payments or wait for payment checks to clear the bank. Businesses receive cash faster and easier by accepting credit card payments from customers.
Fifth is the credit card payment method makes the business competitive no matter how big or small business operation is. For small businesses, accepting payments in the form of a credit card levels the playing field with big competitors. Giving customers the choice to pay with credit helps keep customers from buying from one of your competitors based solely on the options they have to buy the product or service with this particular form of payment.
In the other side, however, have some disadvantages in the business including: Cost and fees which the credit card processing firms charge fees to process credit card payments, disputes when customer disputes charges otherwise the will issued refunds to their customers; Fraud involves using credit card from an unathorized users and they should pay chargeback fee; and the last is complicates record keeping.
This study is descriptive in nature because it involves data gathering and fact-finding study with adequate and accurate interpretation of the findings. This follows logically after careful examination of data collected.
The researchers employed the descriptive questionnaire because this is the most appropriate tool for gathering data based on the sample questionnaire used by our related literature and studies.
In sampling design, they employed non-probability quota sampling to 50 or more.
Our respondents are the credit card holders and the customers at the same time. These customers are from Audiophile and Perfect Pitch in SM City Cebu.
All data gathered from the survey-questionnaire have to be tabulated and interpreted. In order to have an accurate data analysis, researchers employed weighted mean system.
Descriptive Statistics like range were used in this study. (Further discussions)
Although the customers of the Pitch Perfect and the Audiophile music stores in SM City Cebu agreed on the overall result about credit card payment method offering the researcher would still recommend that they should continuously offer the credit card payment method.
For the researchers, they must expound the study regarding the credit cards in relation to the retailing and the credit transactions.
