Effectiveness of Marketing Communications Tools on Consumer Decision to take Credit Cards (2005)
The purpose of this dissertation is to investigate the effectiveness of different communications tools on consumer decision to take credit cards. Marketing communications tools are an important issue for contemporary marketing practice as these facilitates offering the right product to the right customer. Consecutively, this research examined the survey responses of 100 credit card customers who provided information regarding their usage of, and attitudes, towards credit cards. Among one hundred respondents with a credit card 81 per cent of them, believe that marketing communications tools are effective on their decision to take credit cards.
The results show that marketing communications to be a key driver and the most powerful determinant on consumer decision to take credit cards. The final section of the study presents discussions on the relevance of the results in terms of marketing purposes, emphasising effectiveness of different marketing communications tools. Further results and implications of the study for financial services are addressed. For many services the essence of marketing is, or ought to be, the development of long-term, value-added relationships with consumers.
Bank marketing has always been far more difficult than selling most other products and services. For money is all the same-, it is green. Moreover, there is little that any one bank can do to make its money different from that of the other competitors in lending. The key to success in credit card marketing is to correctly gauge public sentiment and then create an appealing offer, never an easy task. Many financial services viewing marketing communications as an opportunity for differentiating themselves in the market.
The primary objective of this study, to explore the empirical perception of the effectiveness of different marketing communications tools and offer conclusions about effectiveness of these tools on consumer decision to take credit cards. In doing so, the author surveyed on 100 credit card customers in the UK to find out:
- How effective are different marketing communications tools?
- What boosts credit card usage?
- How satisfied are the credit card consumers?
The results of the study indicates that marketing communications to be a key driver and the most powerful determinant on consumer decision to take credit cards. The specific choice of marketing communications tools of the respondents’ points to consumers respond most favourably to sales promotions tools, with the top two tools, low interest financing and rebates influencing their choice of credit card. This is closely followed by advertising tools. Meanwhile, direct marketing, personal selling and public relations tools all come in third as they ranked slightly different from each other.
- 20,000 Words – 90 pages
- Good use of literature
- Good analysis of subject area
- Well written throughout
- Includes questionnaire
- Ideal for marketing students
A Brief Overview of the Study
Why credit cards?
Aim of the Study
Structure of the Project
2: Literature Review
A Definition of Marketing Communications
The Marketing Communications Tools
Events and sponsorship
The internet marketing
Customer Decision Making
Consumers’ Credit Card Problems and Exit Behaviours
What Boosts Card Usage?
“What’s in It for Me?”
Targeting Credit Card Customers
Philosophy and Approach
Research Design and Strategy
Primary data collection
The design of the questionnaire
Data Quality Issues
Method of Analysis
4: Data Presentation and Analysis
Part 1 Demographic Characteristics
Annual income and gender comparison
Number of credit cards that the respondents have
The comparison of the number of credit cards and annual income
Monthly credit card expenditure
The comparison of monthly credit card expenditure and Annual Income
The number of respondents who carry balances on their credit card
The comparison of gender and the respondents who carry balances on their credit cards:
Part 2: The Effectiveness of Marketing Communications Tools
What types of marketing communications tools do the respondents find that they respond most favourably to with refer to credit cards?
Which if any advertising tools have influenced the respondents in their choice of credit card?
Which if any direct marketing tools have influenced the respondents in their choice of credit card?
Have you ever used your credit cards for on-line purchases?
Have you ever checked your monthly bills of your credit card on the Internet?
Are you comfortable with your personal details being used for marketing purposes?
Are you comfortable with telemarketing?
Have you ever been subjected to personal selling techniques for credit cards e.g. in the bank, in store etc.?
If you have subjected to personal selling techniques for credit cards
How successful was it and why?
The awareness of the public relations tools used by credit card companies
The effectiveness of sales promotions tools on consumer decision to take credit cards
Part 3: What Boosts Card Usage?
The factors which influences customers’ credit card preference
The credit card companies that the respondents most likely to take a card from
The kind of purchases that the respondents usually make through credit cards
The issues that the respondents feel are most focused on by credit card companies when communicating with them
Part 4: How Satisfied Are the Credit Card Consumers?
Are you happy with your credit card issuer?
Are you happy with their post-purchase behaviour?
Have you had cause to contact your credit card company with a complaint of any sort?
If so, was your problem or complaint quickly resolved to your satisfaction?
Would you be willing to change your credit card company if you have a better offer?
How Effective Are the Marketing Communications Tools?
What Boosts Card Usage?
How Satisfied Are the Credit Card Consumers?
Limitations of the Research