Reward Point Accumulation Behaviour of Credit Card Users in Pune City

Credit card use is ubiquitous. The credit cardholders’ behaviour of accumulating reward points and its effect is studied. The credit card users are categorised into government employees, private sector employees and the self-employed. The socio-economic factors like age, gender, education, marital status, family size, occupation, monthly income and number of credit cards owned affect the reward point accumulation behaviour of credit card holders. Frequency of credit card use has a positive effect on reward point accumulation but duration of credit card use does not affect reward point accumulation. The card transaction amount is more for the accumulators than the non-accumulators of reward points. Cardholders’ behaviour of accumulating reward points leads to increasing purchases, including conspicuous consumption and possibly leading them into a debt trap, if fail to make full payment of their credit card bill. The issuers of credit cards have a scope to widen their customer base by changing their marketing strategies so as to motivate the cardholders to accumulate reward points.