INTERNASIONAL JOURNAL

Have Debit Cards Changed Thai Consumer Shopping Behavior?

Chetsada Noknoi
Economics and Business Administration Faculty, Thaksin University

Sutee Ngowsiri
Economics and Business Administration Faculty, Thaksin University

Wannaporn Boripunt
Economics and Business Administration Faculty, Thaksin University

Abstract

 

This research aims to study the behavior of using debit cards and the quality perceiving on using debit cards of the consumers in Songkhla Province, Thailand. Questionnaires were used for data collection by purposive sampling and equally distributed to 303 consumers who held at least 1 debit card and used it 3 months before the study. The collected data was analyzed using the descriptive statistics; frequency and percentage, and the inferential statistics; Pearson chi-square at the .05 level of statistics significance.

This research found that the demographic characters of the consumers were female, between 21-30 years old, and held bachelor degree. Two-thirds of consumers were students, government and company officers. More than half of them earned 5,001 – 15,000 baht per month. The research also found that the consumers had only 1 debit card and most of them were Visa type. Most of their debit cards were issued by Bangkok Bank. They owned debit card for 1-2 years. Ratio of withdraw to payment is 40:60. They used debit card for withdrawing 2-3 times a month and 1,001 – 3,000 baht each time. They used debit card for expense 2-3 times a month and 500 – 1,000 baht each time. They frequently used their debit card at department store and paid for their infrastructures. Debit card made a little change on their expense behavior especially in food and drink consumption. This research also found that most of consumers well perceived on the service quality in all dimension of tangible, reliability, responsiveness, assurance, and empathy. This research found
that service marketing mixes influenced on using debit card behavior are debit card, promotion, process, physical evidences, and productivity and quality control. The research also found that all service marketing mix influenced on quality perceiving on using debit card. The information from this research is beneficial to set debit card marketing mix strategy policy to stimulate consumer behavior on using debit card.

1. Introduction

 
The progress of information technology, communication, and the Internet system has forced the financial and banking system to be globalized. It is not convenient any more to bring much money for buying products and services. Banks play an important role in managing money transaction. They have created many new financial tools, such as ATM cards and credit cards to increase the convenience and ease of the economic system. These financial innovations support transactions and stimulate consumption. At the same time, card issuers make income from the fees (Manager, 2005). Besides providing more convenience and safety than cash, consumers can use their debit cards to withdraw cash at the ATM. Increasing debit card use reduces the Thai government’s expenses for producing banknotes. Even though debit cards look like credit cards or ATM cards, there are differences in their function. Credit cards mean “buy first-pay later” while debit cards mean “buy now-pay now. When using debit card, it will directly connect to your account and will credit the amount from your account to the vendor once you buy a product or service.

2. Literature Review
2.1 Consumer Behavior

 
Today’s world understanding consumer behavior and knowing customers are never simple because customers may say one thing but do another. The study of consumer behavior enables marketers to understand and predict consumer behavior in the marketplace. It focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items that includes what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it (Schiffman & Kanuk, 2000).

Kotler (2000) stated that consumer behavior studies how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. While, Engel, Blackwell & Miniard (1995) defined consumer behavior as those activities directly involved in obtaining, consuming, and disposing of products and services, including the decision processes the precede and follow these actions.

2.2 Service

 
A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything (Kotler, 2000). Its production may or may not be tied to a physical product.

Services have four major characteristics that greatly affect the design of marketing program: intangible, inseparable, variable, and perishable (Kotler, 2000). Each characteristic poses challenges and requires certain strategies. Marketers must find ways to give tangibility to intangibles; to increase the productivity of service providers; to increase and standardize the quality of the service provided; and to match the supply of services during peak and nonpeak periods with market demand (Parasuraman, 2000).

2.3 Service Quality

Hypothesis 1: The relationship between the demographic characteristics and the debit card using behavior.
Hypothesis 2: The relationship between the demographic characteristics and the service quality perception.
Hypothesis 3: The relationship between the service marketing mixes and the debit card using behavior.
Hypothesis 4: The relationship between the service marketing mixes and the service quality perception.

3. Research Methodology

The population of this research will concentrate on the consumer in Songkhla Province, Thailand, who held at least one debit card and used it three months before the study. Questionnaires were used for data collection by purposive sampling and equally distributed to 303 consumers who held at least 1 debit card and used it 3 months before the study. The questionnaire for this research was comprised of three sections. Section one contained items on demographics details of the respondent. Section two contained the questions related to the consumer behaviors. Section three contained the modified SERVQUAL items to measure consumer service perceptions. The collected data was analyzed using the descriptive statistics; frequency and percentage, and the inferential statistics; Pearson chi-square at the 0.05 level of statistics significance.

4. Results

 
This research found that the demographic characters of the consumers were female (62.0%), between 21-30 years old (38.6%), and held bachelor degree (65.4%). Two-third of consumers was students, government and company officers.

More than half of them earned 5,001 – 15,000 baht per month (52.8%). The majority of consumers had only 1 debit card (71.9%) advised by bank officer. Most of the card were Visa type (81.1%) and issued by Bangkok Bank (35.6%). They owned debit card for 1-2 years (40.3%) and had the ratio of withdraw to payment for 40:60. They used debit card for withdrawing 2-3 times a month (40.3%) and 1,001 – 3,000 baht each time (37.0%) and spending 2-3 times a month (39.2%) with 500 – 1,000 baht each time (34.0%). They frequently used their debit card at department store (64.4%) and paid for their infrastructures (22.9%). Debit card made a little change by increasing their expense behavior especially in food and drink consumption (28.4%). Moreover, salesperson is the most influence person to the consumer for using the debit card instead of cash in payment.

5. Discussion and Conclusion

 
The aim of this research is to study the behavior of using debit card and the quality perceiving on using debit card of the consumer in Songkhla Province, Thailand. The research found that the demographic characters of the consumers were female, between 21-30 years old, and held bachelor degree. Two-third of consumers was students, government and company officers. By studying their demographic, this result can lead the issuing bank to pay the attention or define strategy to the right target group and expand the market to the new target group such as male. The research also found that more than half of the respondent earned 5,001 – 15,000 baht per month. This will cause from the minimum income for applying the credit card is 15,000 baht. Therefore, the consumer who has the income more than 15,000 baht will prefer to have the credit card than debit card.

For consumer behavior, the research found that most of the consumer had only one debit card and used it for spending more than withdrawing. This is the good signal as in the past the consumer used the debit card as ATM. Even if they used debit card for spending in the same frequency as withdrawing but the amount is only 500 – 1,000 baht each time. They frequently used their debit card at department store and paid for their infrastructure more than spending on product and service. Moreover, the debit card made a little change on their expense behavior especially on food and drink consumption. The issuing back should be coordinate with merchants to motivate the consumer to use debit card more on spending. Moreover, the research result shown that all aspects of service marketing mixes is effect to their perception, the issuing bank should be increase the consumer quality perception by using the appropriate service marketing mixes.

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