Effect of Marketing Practices on Credit Card Usage: The Mediating Role of Consumer Attitudes

Abstract

Credit card use has gained popularity throughout the world. Banks introduce the credit card service as a way of improving their revenue streams. However, in Kenya, the rate of growth in usage has rather been slow. This research surveyed credit card holders in Nairobi, Kenya with a view to investigate the effect of marketing practices on credit usage and whether consumer attitudes had a mediating effect between the two factors. A cross-sectional survey was conducted by administering a structured questionnaire to 380 respondents. The study established that marketing practices affect credit card usage and that consumer attitudes did not significantly mediate the relationship between marketing practices and credit card usage. This paper makes a valuable contribution to managerial practice by showing how the elements of the extended marketing mix affect credit card usage. Thus it serves to inform the implementation of marketing strategy in banks by guiding on which aspects of marketing should be emphasised so as to increase credit card usage.