Antecedents of credit card usage behaviour: An Indian perspective

Figures & data

Figure 1. Conceptual model.

Table 1. Internal reliability and convergent validity check for model with complete data

	Cronbach’s Alpha	Composite Reliability	Average Variance Extracted (AVE)
Anxiety	0.751	0.856	0.665
CC Debt	0.791	0.866	0.621
CC Features	0.614	0.831	0.713
CC Safety	0.871	0.921	0.795
CC Usage	0.828	0.88	0.595
CC knowledge	0.725	0.843	0.642
PEOU	0.716	0.841	0.641
Perceived Usefulness	0.687	0.787	0.56
Power Prestige	0.749	0.857	0.666
Price Sensitivity	0.52	0.805	0.674
Self-Efficacy	0.603	0.83	0.71

Table 2. Fornell-larcker criteria

	Anxiety	CC Debt	CC Features	CC Safety	CC Usage	CC knowledge	PEOU	Perceived Usefulness	Power Prestige	Price Sensitivity	Self-Efficacy
Anxiety	0.816
CC Debt	0.425	0.788
CC Features	0.331	0.352	0.844
CC Safety	0.296	0.208	0.197	0.891
CC Usage	0.453	0.72	0.416	0.222	0.772
CC knowledge	−0.327	−0.269	−0.247	−0.051	−0.385	0.801
PEOU	−0.491	−0.291	−0.15	−0.166	−0.336	0.546	0.801
Perceived Usefulness	−0.38	−0.106	−0.023	−0.161	−0.109	0.286	0.47	0.748
Power Prestige	0.265	0.363	0.206	0.032	0.439	−0.188	−0.165	0.084	0.816
Price Sensitivity	0.395	0.349	0.351	0.044	0.417	−0.178	−0.224	−0.03	0.46	0.821
Self- Efficacy	−0.451	−0.278	−0.208	−0.128	−0.362	0.579	0.514	0.289	−0.162	−0.213	0.843

Table 3. Outer loadings

	Anxiety	CC Debt	CC Features	CC Knowledge	CC Safety	CC Usage	CC PEOU	Power Prestige	Price Sensitivity	Perceived Usefulness	Self-efficacy
Anx1	0.804
Anx2	0.793
Anx3	0.849
CCD1		0.643
CCD2		0.816
CCD3		0.869
CCD4		0.806
CCF2			0.765
CCF3			0.916
CCK1				0.755
CCK2				0.777
CCK3				0.866
CCS1					0.890
CCS2					0.892
CCS3					0.892
CCU1						0.763
CCU2						0.803
CCU3						0.825
CCU4						0.797
CCU5						0.660
PEOU1							.857
PEOU2							.871
PEOU3							.657
PP1								.816
PP2								.820
PP3								.811
PS1									.860
PS2									.780
PU1										.602
PU2										.68
PU3										.925
SE4											0.90
SE5											0.782

Figure 2. Measurement model used with demographic predictors.

Table 4. R² values

	R Square	R Square Adjusted
CC Debt	0.557	0.522
CC Usage	0.443	0.4
PEOU	0.264	0.262
Perceived Usefulness	0.083	0.081
Self-Efficacy	0.348	0.335

Table 5. Small and above f² values

	CC Debt	CC Usage	PEOU	Perceived Usefulness	Self-Efficacy
Power Prestige		0.083
CC Features		0.066
Anxiety		0.033
CC Usage	0.479
CC knowledge					0.466
Self-Efficacy			.36	.091

Table 6. Hypotheses results

H1: Power prestige will have a positive relationship on credit card usage	Supported
H2: Anxiety will have a positive relationship on credit card usage	Supported
H3: Price sensitivity will have a negative relationship on credit card usage	Not Supported
H4: Perceived ease of use will have a positive relationship on credit card usage	Not Supported
H5: Credit card features will have a positive relationship on credit card usage	Supported
H6: Credit card safety will have a negative relationship on credit card usage	Not Supported
H7: Credit card usage will have a positive relationship on credit card debt	Supported
H8: Self-efficacy will have negative relationship on credit card usage	Supported

Table 7. Significant relationships

	original path coeff. (t-value)
CC Usage -> CC Debt	.618 (12.768)***
CC knowledge -> Self Efficacy	.583 (9.93)***
Self-Efficacy -> PEOU	.514 (1.246)***
Self-Efficacy -> Perceived Usefulness	.289 (5.022)***
Power Prestige -> CC Usage	.255 (4.805)***
CC Features -> CC Usage	.24 (4.545)***
Anxiety -> CC Usage	.183 (3.186)***
CC Safety -> CC Usage	.105 (2.421)**
PEOU -> CC Usage	−.12 (2.388)**
ownership2 -> CC Debt	.102 (2.064)**
age2 -> CC Usage	−.129 (1.987)**
age3 -> CC Usage	−.121 (1.85)*
age1 -> CC Usage	−.106 (1.741)*
householdsize3 -> CC Debt	.098 (1.728)*
CC knowledge -> PEOU	.3 (6.052)***
CC knowledge -> Perceived Usefulness	.168 (4.288)***
Power Prestige -> CC Debt	.208 (3.987)***
CC Features -> CC Debt	.198 (3.313)***
Anxiety -> CC Debt	.2 (3.209)***
PEOU -> CC Debt	−.119 (2.337)**
Self-Efficacy -> CC Usage	−.058 (2.014)**
Self-Efficacy -> CC Debt	−.054 (2.01)**
CC knowledge -> CC Debt	−.032 (1.888)*
CC knowledge -> CC Usage	−.034 (1.88)*
age3 -> CC Debt	−.124 (1.864)*
CC Safety -> CC Debt	.091 (1.761)*

Table

Self-efficacy	I could use a credit card only if clear steps were provided to me	SE1
Self-efficacy	I could use a credit card only if I had seen someone else using it	SE2
Self-efficacy	I could use a credit card only if someone showed me how to use it	SE3
Self-efficacy	I am confident about making decisions that deal with a credit card	SE4
Self-efficacy	I am confident that I will not overspend on my credit card(s)	SE5
Credit card knowledge	I know my credit score is negatively affected if I don’t pay my credit card bill on time	CCK1
Credit card knowledge	I know that interest is charged if full credit card balance is not paid	CCK2
Credit card knowledge	I know how to manage my credit card usage/debt	CCK3
Anxiety	I am worried I will spend more if I use a credit card	Anx1
Anxiety	I avoid using credit cards because I might make mistakes	Anx2
Anxiety	I worry I will negatively affect my credit score by using a credit card	Anx3
Power-prestige	I purchase things using credit card because I know they will impress others	PP1
Power-prestige	I sometimes boast about how many credit cards I have	PP2
Power-prestige	I show more respect to people who own more credit cards than me	PP3
Price sensitivity	I complain about the cost of things I buy using a credit card	PS1
Price sensitivity	I don’t mind the price of a product when purchasing through credit card; instead of cash or debit.	PS2
Price sensitivity	I use credit cards for petty amounts and bills only	PS3
PEOU	Finding information about credit card usage is easy for me	PEOU1
PEOU	Learning how to use a credit card is easy for me	PEOU2
PEOU	I can use a credit card easily at any place, any time	PEOU3
Perceived usefulness	Using a credit card helps me save time when making transactions	PU1
Perceived usefulness	Using a credit card helps me to monitor my monthly bills	PU2
Perceived usefulness	I find credit cards useful and beneficial	PU3
Credit card features	The maximum credit limit provided to me is sufficient to make my purchases	CCF1
Credit card features	Discounts offered on purchases made using a credit cards motivate me to choose a product	CCF2
Credit card features	Discounts offered on purchases made using credit cards make me buy things that I don’t currently need	CCF3
Credit card features	I am not worried about reaching my credit card limit due to overdraft capabilities	CCF4
Credit card safety	It worries me that someone may steal my information if I use my credit card	CCS1
Credit card safety	Providing my payment details online feels unsafe	CCS2
Credit card safety	I am worried someone may misuse my credit card for their transactions	CCS3
Credit card usage	I don’t pay my credit card due in time	CCU1
Credit card usage	I go over my available credit limit	CCU2
Credit card usage	I take cash advances on my credit cards	CCU3
Credit card usage	I have previously paid credit due on one card using another credit card	CCU4
Credit card usage	I am more impulsive when I shop with credit cards	CCU5
Credit card debt	In the last 12 months, I did not repay my credit balance in grace period	CCD1
Credit card debt	In the last 12 months, I had to pay the minimum required payment only	CCD2
Credit card debt	In the last 12 months, due to my financial situation, I had to just repay portion of my credit balance	CCD3
Credit card debt	In the last 12 months, I used up my revolving credit limit	CCD4