FACTORS AFFECTING THE DECISION TO USE CREDIT CARDS OF INDIVIDUAL CUSTOMERS IN HO CHI MINH CITY

Abstract

The study aims to identify the factors influencing the credit card usage decision of individual customers in Ho Chi Minh City. A quantitative research method was employed, using 234 survey responses collected through a Google Form distributed via social media platforms including facebook and zalo. The data were analyzed using Exploratory Factor Analysis (EFA) and Structural Equation Modeling (SEM). The findings indicate that five factors have a statistically significant impact on credit card usage decisions, including: (1) perceived usefulness, (2) perceived Risk, (3) perceived Cost, (4) perceived debt, and (5) bank Responsiveness. Among these, perceived usefulness and bank responsiveness exert positive influences, while perceived risk, cost, and debt have negative effects on customers’ credit card usage decisions. Based on the results, the authors propose several managerial implications to support commercial banks in improving their ability to attract and retain customers through enhancing credit card usage decisions among individual customers in Ho Chi Minh City.