The Benefits of Using Credit Card in Taiwan – Frequent-Flyer miles and Float Payments

• Main Authors: Yu-Wei Lo, 羅于惟
• Other Authors: 郭震坤
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/38882473159571231424

碩士 === 國立臺灣大學 === 國際企業學研究所 === 100 === Credit card has existed for several decades. The issuers provide a variety of economic incentives to encourage consumers to use credit card rather than cash payments. However, many consumers still choose to pay in cash, or unable to obtain credit cards due to lack of credit rating. Therefore, a question worth of exploration is: Whether consumers obtain benefits with credit card payments? Based on Jalbert,Stewart, & Martin (2010), this study uses Taiwan credit card data to examine the opportunity costs associated with cash payments–frequent flyer miles & float payments. We also explore whether there exists an optimal selection strategy. The results show consumers incur considerable opportunity costs by paying in cash rather than credit card. And optimal selection range for onsumers’best interests is summed up. The research help cards issuers optimize the characteristics and features of their programs, and help consumers enhance their payment patterns.