Collaborative filtering, one of the most widely used techniques to build recommender systems, is based on the idea that users with similar preferences can help one another find useful items. Credit card user behavior analytics show that most customers hold three or less credit cards without duplicates. This behavior is one of the most influential factors to data sparsity. The ‘cold-start’ problem caused by data sparsity prevents recommender system from providing recommendation properly in the personalized credit card recommendation scenario. We propose a personalized credit card recommender system to address the cold-start problem, using multiple user profiles. The proposed system consists of a training process and an application process using five user profiles. In the training process, the five user profiles are transformed to five user networks based on the cosine similarity, and an integrated user network is derived by weighted sum of each user network. The application process selects k-nearest neighbors (users) from the integrated user network derived in the training process, and recommends three of the most frequently used credit card by the k-nearest neighbors. In order to demonstrate the performance of the proposed system, we conducted experiments with real credit card user data and calculated the F1 Values. The F1 value of the proposed system was compared with that of the existing recommendation techniques. The results show that the proposed system provides better recommendation than the existing techniques. This paper not only contributes to solving the cold start problem that may occur in the personalized credit card recommendation scenario, but also is expected for financial companies to improve customer satisfactions and increase corporate profits by providing recommendation properly.

This research was conducted in order to examine whether the type of credit card (premier vs. standard card) influences consumer purchase decisions regarding luxury consumption. The present research reports three experiments with online panels of non-student adults, which find that (1) the use of a premier card (vs. a standard card) leads to a more goal-congruent choices, (2) the effect is mediated by a temporary increase in the perception of pride, and (3) the effect is pronounced for people with a low level of chronic pride. The effect of payment methods on consumer spending has been a concern of theory and research in consumer behavior (Bernthal, Crockett, & Rose, 2005; Feinberg, 1986; Prelec & Lowenstein, 1998; Soman, 2001). This research stream has shown that consumers tend to spend more when they use a credit card than when they pay cash and has proposed various theoretical mechanisms to account for the phenomenon (Chatterjee & Rose, 2012; Prelec & Simester, 2001; Soman, 2001; Thomas, et al., 2011). However, researchers have paid little attention to the effect of different types of credit cards (i.e., premier vs. standard card) on consumer decisions. We contend that the use of a premier card (vs. a standard card) can increase the feeling of pride momentarily and in turn increase consumers’ motivation to pursue a long-term goal that they value. As a result, they prefer a choice alternative that is more congruent with the goal. To be specific, the use of a premier card would increase the choice of luxury alternative, and that this effect would be pronounced for those who value material possessions (i.e., high materialism). This expectation was confirmed in the studies that we have performed. In three experiments, participants were shown a credit card(either premier or standard) and were asked to assume that they were going to use it for their purchase. Then, they were asked to make choices in shopping contexts. Participants with premier credit card, compared to those with standard card, showed more goal-consistent choices. They were more likely to choose luxury alternatives, and this effect was apparent only for those who have a high materialistic value. When the choice set includes both a low-calorie food and a high-calorie food, the use of a premier card increased the choice of low-calorie food, and this effect was apparent only for those with diet goal. These effects were mediated by the feeling of pride. Three studies in combination provide insights into the effect of types of credit cards on consumer spending regarding luxury consumption and the processes underlying the effect, which have not been reported elsewhere. The use of a premier credit card (vs. a standard credit card) led to a greater choice of luxury alternatives over standard alternatives and a greater choice of low-calorie foods over high-calorie foods. However, these effects were apparent only when people highly valued the goal under consideration (i.e., high materialism or strong diet goal). Finally, these effects were attributable to a momentary increase in the perception of pride by virtue of the use of a premier card, and consequently, the effects were observable only for people who have a relatively low chronic pride. The effects we observed in this research generalized over different product categories and different long-term goals. Nevertheless, it is desirable to extend findings in more diverse consumption categories (e.g., services) as well as to identify additional variables that moderate the magnitude of the effect. In addition, it is worth considering alternative underlying mechanisms than the one we considered (i.e., the feeling of pride) in future research. For example, a premier card may increase individuals’ construal level, thereby affecting consumer purchase decisions.

Marketers commence to use types of brand alliance strategies including co-branding. Many previous studies focused on the strategic performance of the co-branded credit card or loyalty programs. The introduction of the department store co-branded credit card successfully increases revenues and expands the market shares for both the banking industry and the department store industry in Taiwan. In view of the importance of co-branding strategy to extend market share for both the banking industry and the retailing industry in Taiwan, it is worthy to have a better understanding of whether or not consumer’s affective loyalty to the bank and/or consumer’s affective loyalty to the department store will influence his/her attitude toward the department store co-branded credit card, which in turn influence his/her intention to continue to use or apply for the co-branding credit card. This study aims to ascertain what factors determine consumer’s intention to continue to use and/or to apply for the department store co-branded credit card. This study collected data on the Internet Website from December 8, 2013 to January 30, 2014. A total of 444 valid data were used in this study. The two-stage procedure of structural equation model (SEM) analysis was conducted to examine the hypothetical causal relationship in the proposed theoretical model. The results indicate that for those who had applied for the department store co-branded credit card, consumer’s affective loyalty to the bank and consumer’s affective loyalty to the department store indeed exert positive impacts on his/her attitude toward department store co-branded credit card, which in turn influence his/her intention to continue to use the co-branded credit card. In addition, for those who did not have the department store co-branded credit card, consumer’s affective loyalty to the department store can induce his/her attitude toward department store co-branded credit card, which in turn influences his/her intention to apply for co-branding credit card. The implications and suggestions for both the banking industry and the retailing industry are also provided in this study.

The purposes of this article is to analyse how market competition of credit card company affect price(interest rate) and survival length of card users. This paper uses individual account data from a large Korean credit card company during the periods from 2002 to 2006. The findings of our study are as follows. First, market competition of credit card company have a negative effect with interest rate of credit card. Second, market competition of credit card company have a affirmative effect with survival length. Finally, The effect of Increasing delinquency rate due to price increase is smaller than decreasing delinquency rate due to extending survival length.

The research aims to help merchant acquiring institutions gain a better insight on what merchant establishments in the Singapore market perceive of the costs they incur due to credit card acceptance. The research attempts to study the Singapore market and establish if increased credit card usage does increase costs for the merchant establishments that accept credit cards, this will help to acquire institutions in Singapore have a better understanding of merchant perceptions and what drives or deters credit card acceptance in the Singapore market. The survey was based on an interview of merchant establishments and the views of the merchants and was not based on their financial data. As a first step, the variables used in the survey were tested for interdependence using Chi-square tests; subsequently data reduction using factor analysis was performed and finally linear regression to establish a relation between dependent and independent variables. Merchant establishment believe accepting credit cards and increasing volume is costlier compared to another form of payment, but have mixed awareness about interchange fee. It also indicated that interchange fee and cardholder benefits are independent of the merchant establishments. The study only broadly attempts to gauge merchants view if increased credit card usage has increased costs for them.