Compulsive buying behaviour and its relationship on credit default

Abstract

This chapter includes: 1 Goals of the study 2 Population, sample frame and sampling technique 3 Tools of analysis 4 Summary of results 5 Practical significance and managerial implications 6 Scope of future research The study attempts to understand the impact of retailing and the credit card environment on materialism, compulsive buying, credit card usage pattern1 and credit default among shoppers in Kochi Municipal Corporation. The goals of the study are to understand the extent of materialism and compulsive buying among shoppers in Kochi Municipal Corporation. The study further attempts to understand whether the presence of credit cards has in any way changed the pattern of spending (usage) and also refine the understanding of what influences (causes) credit card usage pattern. The final accomplishment of the study is to find the extent of influence of the above said variables on credit default. Type of study-The study is descriptive and cross-sectional in nature using the survey design. Population -There are around 0.35 million credit card users in Kochi Municipal Corporation, Kerala (Total of 1.5 million people). These cards are offered by 28 different national and international banks together having 199 different types of product offerings. Sample Frame and Sampling Technique - A quota sample of 550 respondents is selected from among those who are using the credit cards for a period greater than one year. This method is identified by the researcher as a credible way of tracking credit card spending and financing patterns as the respondents have completed a few billing cycles in the said period. Prior to this a pilot study was conducted among 200 credit card users to determine their responses and to validate the questionnaire. The number of final respondents from whom data collection was done is 550. The quota sampling is a non-probability sampling technique which can involve the judgement of the researcher as well to ensure quality of the responses.