AN ANALYSIS OF PERSONAL FACTORS THAT MOTIVATE PEOPLE TO OPEN A CREDIT CARD ACCOUNT

Abstract

The payment method using credit cards are now become very popular. This is because the benefits perceived are large. By using the credit cards, people are allowed to pay the goods and services by installments depend on their ability to pay. Based on Philip Kotler consumer purchase behavior theory, consumer purchase is influenced by several factors such as cultural factors, social factors, psychological factors, and personal factors. The researcher takes personal factors to be discussed on this research. Personal factors are consisting of Age and Life-Cycle Stage, Occupation, Economic Situation, Lifestyle, and Personality and Self-Concept. All these factors are highly influenced the decision of one individual to buy a product. The researcher wants to know what are the dominant factors that influence people in the working environment to open their credit card account. This research is using factor analysis to find the interrelationship between numbers of independent variables among a large number of original variables into smaller sets of factors but still represent the original variables. This research conducted by using statistical analysis with structured closed-end questionnaires which given sets of responses using Likert Scale. The result from data processing is first factor comes from Economic Condition with total value of eigenvalues 32.100%, second factor comes from Lifestyle dimension with total value of eigenvalues of 13.086%, third factor represent about the Personality and Self-Concept dimension with total initial eigenvalues of 9.244%, and the fourth factor from the Occupation dimension has the initial eigenvalues of 6.552%. In this research, the researcher only focused on the first two dominant factors, which are the economic condition play the most important role of cardholders' decision before opening their credit card account and the second is determined by the lifestyle of the cardholders.-