Study Of Credit Card Pricing From The Perspective Of Consumer Behavior

In recent years, credit card (one kind of bank cards) grows fast in china, for example, more and more people get to using it in all conditions including wholesale, shopping, tickets booking and so on. At the same time, research on the credit card starts its journey: as one new style of life, bank credit cards have the effect on the household transactions demand for money, banking reform of china financial market, and even the technique of data's dredge in banking industry.While in this essay, I want to try another angle to analyze this new financial product, one classical and meaningful way—pricing of credit card. Though many famous and outstanding economists have some wonderful fruits on this study, based on the development of the economic theory, new method will be applied to the study in this essay. As we all known, the 2002 Prize in Economic Sciences in Memory of Alfred Nobel was awarded to the behavior economy ,which is considered one important breakthrough in the economic development. This theory put more attention to the consumers itself greatly different from the classical hypothesis - rational one in the market. This way definitely will be a trend in the economics study, because one important goal of which is to learn more about the world economy and understand more precisely.In this paper, the experiments in the essay prove that the card holders are not the rational one. So next step is to refine the Time Discount Model of Samuelson and prove the inconsistence of consumers' time preference. The new point of view about the credit card pricing comes up. On the base of this new pricing model, first I made money and credit questionnaire and send them to many card holders included students, workers, bankers and so on. Then make some useful analysis, in which some same conclusions can be found as the adjusted pricing model. The purpose of all the research is to learn, understand, improve the reality, so in this paper I also enumerate some problems in this market and give some pieces suggestion on the new model.This paper is divided into four sections:The first section puts forward the research background, the objective, the significance and the latest research result in the related areas. Also some key words are given the more details. And in this section some analysis is made based on the literatures wrote by some famous economists.The second section commences a breakthrough to adjust the model with a hypothesis that consumers using credit card are not rational as the one who lived in the economic teaching material. If that happens, the credit card will definitely be with a relative high rate.The third section gives another way to understand the pricing problems of credit card. How about the real one to use credit card, did any result match the model? This part will give the answer.The last section of the paper made some suggestion to the real world. The purpose of any study is to make the world better. This one is to make our credit card market go better.