How consumers hear the word ‘credit’
by Jeff Falk
Credit card issuing financial institutions (FIs) may soon find themselves headed back to the drawing board to develop new ways to market credit cards to an ever-skeptical consumer base.
According to a new study on credit and debit card use, without changes in credit card marketing efforts, a growing consumer trend toward debit cards may have an impact on the popularity of credit cards among some consumers.
A September report issued by Auriemma Consulting suggests credit card marketers must take the bull by the horns and work to change the way consumers view this payment option.
Aurimma’s Scott Strumello points out that when credit cards really began to gain traction in the 1970s, FIs marketed them as financial management tools. The study found credit cards are currently viewed much differently. “The term ‘credit’ is a turn-off now because it says I am going to borrow money,” writes Strumello.
Conversely, many survey respondents said debit cards are doing “a superior job” providing a form of forced spending restraint.
The report found consumers turn to debit cards for daily expenditures. Credit cards are used for emergencies and big-ticket purchases.
continue reading »
