Assessment of Features and Market Segmentation of the Credit Card Industry in Malaysia

Authors

Md. Mahmudul Alam^{1, *,} , Russayani Ismail², Jamaliah Said³, Khadar Ahmed Dirie⁴

¹Economic and Financial Policy Institute, School of Economics, Finance and Banking, Universiti Utara Malaysia

²School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Kedah, Malaysia

³Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Malaysia

⁴Islamic Business School, Universiti Utara Malaysia, Sintok, Kedah, Malaysia

^*Corresponding author. Email: rony000@gmail.com

DOI

10.2991/aebmr.k.211225.010How to use a DOI?

Keywords

Credit card; Market segmentation; Islamic credit card; Credit card interest rate; Malaysia

Abstract

To operate successfully in this credit card industry, various kinds of credit cards are offered to distinct user groups. This empirical study is conducted in Malaysia, and it examines the features of different types of credit card available. By using descriptive and one-way ANOVA test, this study analyses data of 234 credit cards which were collected from ringgitplus.com and imoney.my websites. The cards are categorised based on the usage purpose like airline tickets, insurance, dining, entertainment, fuel, lifestyle, groceries, shopping, utilities healthcare and general use. In total thirteen features are analysed for all of these cards. The findings show there is no significant difference in the purpose of cards based on the features of interest and profit rate, balance transfer annual charge, annual fees, annual fees for supplementary card, late payment, late payment maximum fees, cash withdrawal charges fees, minimum annual income, minimum age for primary cards, maximum age for primary cards, and minimum age for supplementary cards. However, only two features are statistically significant among the cards, these being cash back and interest rate on cash withdrawal. The findings will provide important insights for business managers, credit card users, and other policymakers regarding features and market segmentation in the credit card industry in Malaysia.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

Download article (PDF)

TY  - CONF
AU  - Md. Mahmudul Alam
AU  - Russayani Ismail
AU  - Jamaliah Said
AU  - Khadar Ahmed Dirie
PY  - 2022
DA  - 2022/01/13
TI  - Assessment of Features and Market Segmentation of the Credit Card Industry in Malaysia
BT  - Proceedings of the International Conference on Sustainable Innovation Track Accounting and Management Sciences (ICOSIAMS 2021)
PB  - Atlantis Press
SP  - 57
EP  - 68
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211225.010
DO  - 10.2991/aebmr.k.211225.010
ID  - Alam2022
ER  -