The Effect Of Consumer Knowledge On The Use Of Innovated Credit Cards

The credit card market was started in the late1980s in China. The first credit card in Mainland China issued in1985. From that time till now, especially recent10years, the credit card market makes a big progress. The credit card market in mainland began with a small number of cards issuing, being lack of relevant industry policy support and competition in the industry, and being a situation of single business mode. Till now, the credit card market developed to a large issuing of cards, industrial policy constantly being clear, and the competition became fierce. But we have to pay attention to this situation that even though the credit card market get a big progress, the report about the using of credit cards shows that the rate of activation and utilization are still very low in our country. This situation leads to a big waste of resource of the bank.As the problem of low usage of credit cards, this paper attempts to spread from the perspective of product innovation, combined with consumer knowledge to study the constantly innovated credit card, consider whether the consumer knowledge will affect the characteristic of innovation and the willingness of the using of credit card. Through this research, we could analysis the root causes of the willingness to use credit card. By discuss these question, this paper aims to provide some certain theoretical ideas to improve the rate of adopting credit card in our country, and expects to rich the theoretical framework of consumer innovation behaviorThis paper firstly reviews some related literature of innovation diffusion theory and technology acceptance model. These literatures have discussed the factors of innovation diffusion that influence the willingness of usage, such as relative advantage, complexity, compatibility, observability, and perceived risk. And by summarizing the literature of consumer knowledge, we find that consumer knowledge is an important factor in the study of consumer behavior. These researches find that consumers purchase decision process will be different with different level of consumer knowledge. By summarizing the issue involved in this assay, this paper constructs the model and raise relevant hypothesis to research whether the characteristic of innovation would have differently influence on the willingness of the using of credit card in different level of the consumer knowledge.This paper has analyzed the data by using SPSS16.0, and got the results as below:1、These characteristic, relative advantage, compatibility, and observability have influenced the willingness of using credit card significantly, but complexity and perceived risk haven’t.2、The consumer knowledge is the moderator between the characteristic of innovation diffusion and the willingness of usage.This paper have six parts, the major elements of each part are as follows:The first part is an introduction. It describes the background, purpose, research ideas and research methods of this paper, and draws the logical framework diagram of this paper.The second part is the review on the issues involved in this paper and defines the relevant concepts. By reviewing previous research, we concluded the innovation of this paper. Specifically, this part firstly sorts out, reviews and briefly comments the literatures about the innovation diffusion theory, technology acceptance model and consumer knowledge, and then comes to the innovations of this paper, against with the deficiencies and limitations of previous literature.The third part is the variable definition, model designation and hypothesis. Through the establishment of simple theoretical models, we discuss whether the characteristic of innovation would have differently influence on the willingness of the using of credit card in different level of the consumer knowledge, then design a model for the analysis below and propose relevant assumptions.The fourth part is the explanation of research designation and experiment designation. At this section the paper explained the detail of the experiment process, and then obtained the experimental data according to the research survey, therefore analysis the hypothesis by using the data. The fifth part is the results of empirical analysis. On the basis of empirical analysis, we test the hypothesis that raised earlier in this assay with the results of empirical analysis.The last part is the conclusions and policy recommendations of this paper. It summarizes the study results of the norms part and empirical study part, gives theoretical explanation, policy recommendations, and proposes the limitations of this paper.The main contribution of this paper:Firstly, this research establishes the model to discuss the relationship between the consumer knowledge and the willingness of adopting based on the theory of innovation diffusion theory and technology acceptance model. This research brought consumer knowledge into the model, expected to rich the study of this area in our country.Secondly, the study of other countries shows that consumer knowledge could affect the purchase decision making. But there is a little study of this area in our country. As the study overseas shows that the consumer knowledge varied in different region, this research chooses the consumer knowledge to be the moderator.Thirdly, through the analysis, this research finds that the consumers have different preferences when choosing an innovated credit card. Then the banks could adopt different marketing strategy with the people which have different consumer knowledge level.The inadequacies of this paper:Firstly, the samples of this paper are small. In this research, we did the experiment on the college students. Though the college students have certain representativeness in the society, it should expand sample range in future research to improve the validity.Secondly, there are some other factors that affect the willingness of adopting. For intense, the characteristic of the consumer would influence the willingness of usage. And whether the consumer knowledge would affect this process is worthy discussing.Thirdly, there are two aspects, SUB and EXP in consumer knowledge. These two aspects may have effects on the decision making of the consumer. We didn’t discuss this question in this paper. But it is one of the necessary directions for future research.