Reasons for Voluntary Attrition in Credit Cards at Citibank Pakistan

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Table of Contents

TitlePage Number
Research Proposal3
Problem Studied7
Background Information8
Research Goals9

Preliminary Details9

Literature Survey9
Theoretical Framework17
Hypotheses Formulated17

Research Design
Type and Nature of the Study17
Sampling Design18
Data Collection Methods18
Data Analytic Techniques Used19
Results of Data Analysis
Hypotheses Substantiated/Unsubstantiated19



Limitations of Study27




Research Proposal

Reasons for Voluntary Attrition in Credit Cards at Citibank Pakistan for the period Jan. ’10 to Jun. ’10.

Prepared for
Mr. Sibghatullah Hussaini

Submitted by

Ahmed Hassan

July 28, 2010

Sponsor’s Name/Client

Professor Sibghatullah Hussaini, Faculty Member, IBA.
Advanced and Applied Business Research, Summer 2010

Contact Person
Same as above

In today’s competitive credit card market card cancellations or “voluntary attrition” is a genuine threat to the customer base of any progressive company. Good companies keep a vigilant eye on attrition dynamics. They want to know who is leaving when, how and why.

Citibank is part of Citigroup, the largest financial service provider and currently one of the most profitable companies in the world. Citibank provides a broad range of financial services to consumer and corporate customers in 101 countries and territories. The Citibank franchise was set up in Pakistan in 1961 with Corporate Banking operations.

Marketing Objective:
Purpose of the study is to find out if the cancellations are linked to customer expectations that have not been met. These expectations can be value related or service related. Value related expectations are concerned with the benefits and features of the product which customers expect the product must deliver. Service related expectations deal with level of service that customers expect the bank to deliver. If the cancellations are due to any of the above expectations, which are not being met then the business must correct the anomaly. Otherwise there would be a serious threat to the customer base as more customers will cancel the card and the dissatisfaction will spill over to other bank customers.

Research Objective:
The research objective as per research brief developed by the sponsors are as under: 1.What is the root cause for credit card voluntary cancellations? 2.What is the profile of the customers who are canceling the cards? 3.What are the major reasons given by customers for the cancellations? 4.What are the spending and delinquency trends of customers who are canceling the cards? 5.What are the vintage trends of the cancelled cards?

Information to be collected

Interview method has been used to gather primary data. Standardized interview format was developed where the interviewer called up the respondent and conducted the interview over the phone by using the interview schedule to ask questions and record the answers. The information collected would be 1.When was the card activated/

2.How long was the user using the card/
3.When did he/she decide to attire?
4.What factors influence this decision?

Population under studyRespondents are Citibank card members, male or female, who have voluntarily cancelled their credit cards during the period from January’10 to June’10

Research MethodologyPrimary data was gathered through the standardized telephone interview of the respondents, which was conducted by the author.

Secondary data source was Citibank’s mainframe server, which houses all the details of card accounts. The details include, customer profile, account history, and membership opening and...
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