Measurement of Consumer Satisfaction of Credit Card Users

Topics: Credit card, Customer, Customer satisfaction Pages: 22 (3874 words) Published: February 3, 2011
Measurement of Consumer Satisfaction of Credit Card Users

Mohammad Nazmul Huq
Lecturer, Department of Business Administration, Stamford University Bangladesh.

Ishrat Jahan Tania
Lecturer, Department of Business Administration, Stamford University Bangladesh.

Measurement of Consumer Satisfaction of Credit Card Users

Abstract: Success of any organization largely depends on how well and effectively the organization can serve its customer. Always perception can’t help a company to ensure satisfaction among its consumer. Monitoring consumers and fulfilling their expectations can ensure satisfaction. The current paper attempts to critically examine the customer satisfaction of the credit card users in Bangladesh to guide the companies to find out their lacking and ensure satisfaction among its consumers.. The study gives the detail about the difficulties faced by the credit card users. Findings are based on the formal interview and data collected through questionnaire. Finally, the paper aims to give valuable information to make the current system of service more effective.

Keywords: Purchasing spots, Booths


The card facility was first introduced in the United States in the beginning of the 20th century. Western Union, a US money transfer company, started issuing an embossed metal plate to its preferred customers in 1914. In the 1920s, a shopper's plate - a "buy now, pay later" system - was introduced in the USA. It could only be used in the shops which issued it. In 1950, Diners Club and American Express launched their charge cards in the USA, the first "plastic money". In 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York. But it was only until the establishment of standards for the magnetic strip in 1970 that the credit card became part of the information age. 1958 American Express Bank, like Dinner Club, started card on travel and entertainment. By 1959 the system evolved in great magnitude. A cardholder was allowed to pay off the full amount at the end of the month or to spread payment to suit his or her requirements. The customer's monthly payment included a finance charge on the unpaid balance. In 1960 Bank of America introduced its own card, the Bank America card and offered license to other banks in 1966 that brought this system into world arena. On the other hand, in 1967 four California banks changed their name from the California Bankcard Association to Western State Bankcard Association (WSBA). WSBA opened its license to other financial institutions. Its bankcard product was known as Master Charge. Numerous financial institutions became Master Charge members to compete with Bank Americard. In 1977 Bank Americard was renamed as Visa USA/Visa International and in 1979 master Charge changed its name to Master Card maintaining the lofty standard to meet up the customers' expanded needs.

A credit card is a great financial tool. It can be more convenient to use and carry than cash, and they offer valuable consumer protections. Paper money and coin are risky and burdensome for carrying. One can avoid the toll of finger-counting changes in this system. Dollars, Pounds or Taka can be plundered, lost or stolen. But there is no such fear for card. The cardholder is given a code number called PIN (Personal Identification Number) without which the card cannot be used at sales or services points where the PIN is required. Only the owner of the card will be entitled to use it. In case the card is stolen or lost the clients' bank will issue a fresh card

The credit card is rectangular and looks like a phone card. It is a layered piece of hard plastic with holograms and security features. It also carries a strip of magnetic tape on the back which is loaded with electronic data including the cardholder’s details. The strip is read electronically by specialized machines called Point of Sale (POS) Terminals at merchants or...

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