• International journal of advanced smart convergence
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• v.11 no.1
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• pp.64-69
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• 2022

The current research examines whether consumers' preference for credit card benefits (i.e., general credit card benefits vs. credit card benefits related to green life) differs according to their pro-environmental disposition. Specifically, we predict that for consumers with high (vs. low) pro-environmental disposition, their preference for credit card benefits related to green life will be higher, while preference for general credit card benefits will not be different between low and high pro-environmental disposition groups. An online survey (N = 487) was conducted to test the hypotheses. Consistent with the hypotheses, the results indicate that (1) respondents with high pro-environmental donation intention, as compared to those with low pro-environmental donation intention, had higher preference for credit card benefits related to green life; and (2) there was no significant difference in preference for general credit card benefits between high and low pro-environmental donation intention groups. We suggest an important insight into how credit card companies approaching ESG issues can increase their consumers' preference for credit card benefits relevant to green life, considering consumers' individual differences such as pro-environmental disposition.

• Journal of Information Technology Applications and Management
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• v.15 no.4
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• pp.21-36
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• 2008

As the great disturbance from abusing credit cards in Korea becomes stabilized, credit card companies need to interpret credit-card delinquents classification models from the viewpoint of profit. However, hit ratio which has been used as a measure of goodness of classification models just tells us how much correctly they classified rather than how much profits can be obtained as a result of using classification models. In this research, we tried to develop a new utility-based measure from the viewpoint of profit and then used this new measure to analyze two classification models(Neural Networks and Decision Tree models). We found that the hit ratio of neural model is higher than that of decision tree model, but the utility value of decision tree model is higher than that of neural model. This experiment shows the importance of utility based measure for credit-card delinquents classification models. We expect this new measure will contribute to increasing profits of credit card companies.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.9 no.5
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• pp.1407-1413
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• 2008

Individual consumer characteristics change as the individual lifestyle changes. Each individual's unique lifestyle influences substantially the individual consumer behavior. Individual consumer's behavioral pattern varies significantly depending on the individual consumer's use of credit cards. Each individual's lifestyle or individual's perception of credit cards' brands and perceptual difference in qualities of credit cards' brands influence the individual's credit card selection. Credit card companies have been doing several researches in analyzing credit card users' lifestyle characteristics and consumer behavioral characteristics. However, researches on the relation of model structure among variables such as individual lifestyle, credit cards brand, quality perception of credit cards and credit card selection are not quite noticeable. Therefore, in this research we aim at providing a theoretical foundation with credit card companies by analyzing the relation of model structure among these factors.

• International journal of advanced smart convergence
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• v.11 no.4
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• pp.170-176
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• 2022

Given the critical importance of enhancing the level of ESG practices, the current research examines the impact of credit card users' pro-environmental characteristics (i.e., environmental self-accountability, eco-label involvement) on their satisfaction with credit card benefits related to green life. That is, this research investigates whether consumers' satisfaction with green credit card benefits varies depending on their environmental self-accountability and eco-label involvement. Specifically, we predict that (1) for consumers with high (vs. low) environmental self-accountability, their satisfaction with credit card benefits related to green life will be higher (hypothesis 1); and (2) when consumers have high (vs. low) eco-label involvement, they will be more likely to be satisfied with credit card benefits related to green life (hypothesis 2). An online survey (N = 293) was conducted to test the two hypotheses. In support of the hypotheses, the results indicate that (1) respondents who had high (vs. low) environmental self-accountability were more satisfied with credit card benefits related to green life, and (2) respondents with high eco-label involvement, as compared to those with low eco-label involvement, reported greater satisfaction with credit card benefits related to green life. We suggest an important insight into how credit card companies approaching ESG issues can increase their consumers' satisfaction with green credit card benefits, considering consumers' individual characteristics such as environmental self-accountability and eco-label involvement.

• Knowledge Management Research
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• v.22 no.3
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• pp.151-172
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• 2021

The government's implementation of customer-friendly financial policies, such as lowering commission fees for credit card merchants and lowering the maximum interest rate, put the specialized credit finance companies in a crisis of lowering profitability. In this unfavorable situation, the efficiency study of specialized credit finance companies is meaningful. Accordingly, this study measured the efficiency of 34 specialized credit finance companies through Data Envelopment Analysis (DEA) and meta-frontier analysis. For meta-frontier analysis, specialized credit finance companies were divided into two groups (card companies and non-card companies) by industry or three groups (AA0 and above, AA-, and A+ or below) by credit rating. The results of the analysis will provide general insight into the efficiency of specialized credit finance companies. The results of this study are as follows. First, the average meta-efficiency of card companies was analyzed higher than that of non-card companies. Second, 80% of non-card's decision-making units (DMUs) were inefficient by pure technology rather than by scale. Third, decision-making units (DMUs), which account for 62.5% of the credit card company group and 80% of the 'AA-' credit rating group, are in non-economic areas of scale. Fourth, there was no statistically significant difference in meta-efficiency values (TE and PTE) by industry (card companies, non-card companies) and credit rating (AA0 or higher, AA-, A+ or lower). The contribution of this study will provide strategic initiatives for establishing management strategies to improve inefficiency by measuring the efficiency level of companies under an unfriendly business environment for specialized credit finance companies.

• Survey Research
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• v.9 no.2
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• pp.85-118
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• 2008

There have been a great many ups and downs in Korean Credit Card Industries after 2000. It is certain that each Credit Card Company copes with the situations by means of its organizational capabilities. According to the evolutionary view of Institutionalism, a company's capabilities are composed of every day routines, codes, rules, learning(by doing, using, interacting) and decision makings. The purpose of this article is to verify how two Korean Credit Card Companies showed their strategic differences and what factors exposed each company's own limits. To examine the company's ordinary conducts, this study used Q methodology with a random sample of 16 members from each company. Especially from the results of Q factor analysis, it becomes clear that each company still takes a serious view of the economy of scale rather than the innovation or improvement of organizational and relational dynamics.

• Korean Journal of Human Ecology
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• v.21 no.5
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• pp.957-973
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• 2012

This study analyzed consumer public complaint behaviors and the satisfaction of complaint handling among credit card users who availed of credit card services. Relatively little research has been done in this area, despite the obvious importance of understanding and improving credit card market conditions. The purpose of this study was to examine consumer compliant behaviors with a focus on public actions, such as voice responses and the third party actions among credit card users. With the goal of providing consumers with more positive expectations of credit card companies' complaint handling process, this study investigated the status of public actions and the negative effect of complaints on the overall satisfaction of post-complaint behavior toward credit card services. The responses from 1,000 credit card users were analyzed using descriptive analysis, factor analysis, multi-logit analysis, and Heckman selection estimate. The analysis provided three major results: (1) perceived service quality among credit card users was conceptualized into groups such as responsiveness, innovation, company, additional service, and fee, (2) perceived service qualities, age, residential area, employment status, and subjective economic status had significant effect on public compliant action behaviors, and (3) unidimensional factors resulting from post-complaint behaviors were analyzed and several variables, such as period of credit card use, average amount used, and perceived service quality had significant effects on the degree of satisfaction associated with complaint handling in terms of credit card services. Several implications and directions for further research are discussed.

• Proceedings of the Korea Information Processing Society Conference
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• 2000.10a
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• pp.277-280
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• 2000

Credit evaluation is one of the most important and difficult tasks fur credit card companies, mortgage companies, banks and other financial institutes. Incorrect credit judgement causes huge financial losses. This work describes the use of an evolutionary-fuzzy system capable of classifying suspicious and non-suspicious credit card transactions. The paper starts with the details of the system used in this work. A series of experiments are described, showing that the complete system is capable of attaining good accuracy and intelligibility levels for real data.

• Journal of Digital Convergence
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• v.18 no.11
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• pp.477-483
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• 2020

Credit cards are becoming an important marketing tool that reveals brand identity beyond payment methods. The purpose of this study is to suggest an effective design strategy plan by analyzing credit card design case that provided a positive brand experience among the cases of implementing the brand identity of a domestic credit card. The design of a representative credit card brand in Korea was analyzed according to Schmidt's experience type. As a result of analysis, when designing a credit card, it maximizes the visual effect with colors suitable for each theme, presents a multi-faceted experience that stimulates the five senses of the consumer, and provides an active brand experience that can reminisce the benefits of a credit card. It was found to be effective in revealing the brand identity. This study is meaningful in that local credit card companies offer design directions that can positively imprint brands on consumers through credit card designs.

• The Korean Journal of Financial Management
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• v.22 no.2
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• pp.213-226
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• 2005

Adverse selection is a heavily scrutinized subject within the financial intermediary industry. Consensus is reached regarding its effect on the loan interest rate. Despite the similar features of financial service offered by the credit card, we still have controversy regarding credit card interest rate on how is adverse selection incurred with the change of interest rate. Thus, this paper explores how does the adverse selection, if ever, take place and affect the credit card interest rate. Information asymmetry regarding the credit card users' type represented by the default probability is assumed. The users are assumed to be rational in that they want to minimize the per unit dollar expense associated with the commercial transaction and financing between the two typical payment methods, cash and credit card. Suppliers, i.e. credit card companies, would like to maximize their profit and would be better off with more pervasive use of credit cards over the cash. Then we could show that the increasing credit card interest rate is subject to the adverse selection, sharing the same tenet with that of the bank loan interest rate proposed by Stiglitz and Weiss. Hence the current theory predicts that credit card market also suffers from adverse selection with increasing interest rate.