Debit and credit card usage and
satisfaction
Who uses which and why – evidence from Austria
Thomas Foscht
Department of Marketing, University of Graz, Universitaetsstrasse, Graz, Austria
Cesar Maloles III
Department of Marketing and Entrepreneurship, California State University,
Hayward, California, USA
Bernhard Swoboda
Department of Marketing and Retailing, University of Trier, Trier, Germany, and
Swee-Lim Chia
La Salle University, Philadelphia, Pennsylvania, USA
Abstract
Purpose – This exploratory study seeks to explore the link between the choices of payment mode
to customer satisfaction. It examines the Austrian market in relation to its choice and usage of
debit cards versus credit cards and its impact on customer satisfaction and loyalty. Furthermore,
the study aims to identify the key drivers of customer satisfaction for these two modes of
electronic payment.
Design/methodology/approach – A structured questionnaire was administered in person to 360
Austrian bank customers. These customers were selected using quota sampling based on Austrian
census data for a particular Austrian province. However, while the quota sampling was used to
determine the categories, selection of the actual respondents was done through systematic sampling.
This ensured that the sample was representative of the population of that Austrian province who had
credit and debit cards. One group, women who were 65 and older, were not considered as there were
relatively few women in this age range who had debit and credit cards.
Findings – Five hypotheses were proposed. Four of the five hypotheses were supported while one,
H4, had partial support. Essentially, the results indicate that a person’s preference for a particular
payment method is dependent on his/her personal characteristics. Additionally, the payment method’s
features and characteristics influenced its desirability and acceptance. Furthermore, a person’s
expectations had an impact on his/her attitude toward the payment method. The study also found that
positive expectations, performance, and desires led to customer satisfaction. Customer satisfaction, in
turn, leads to a higher degree of intent to use the payment method and higher degree of intent to
recommend the payment method. These results are consistent with the literature on customer
satisfaction that identifies expectations, performance and desires as the drivers of customer
satisfaction.
Originality/value – Multiple payment modes have emerged but there has been scant attention paid
to the effects of payment modes on customer behavior and by extension, customer satisfaction and
loyalty. This paper addresses these issues.
Keywords Customer satisfaction, Credit cards, Debit cards, Banks, Austria
Paper type Research paper
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0265-2323.htm
IJBM
28,2
150
Received January 2009
Revised July 2009
Accepted November 2009
International Journal of Bank
Marketing
Vol. 28 No. 2, 2010
pp. 150-165
q Emerald Group Publishing Limited
0265-2323
DOI 10.1108/02652321011018332