Students’ Attitude Towards Credit Cards in Malaysia. Advantages and Disadvantages of Credit Card Consumption

Table of Contents

Introduction

Problem Statement

Research Questions

Research Objective

Significant of the Study

Summary

LITERATURE REVIEW
Introduction
Literature Review
Map Literature Review
Credit Card
Credit Card Global Usage
Reasons behind the increased usage of Credit Cards
Attitude
Credit Cards in the country of Malaysia
Research into the independent & dependent variable
Independent Variables
Dependent Variables
Theoretical Framework
The Gap within the Literature
Hypothesis Development
Summary

Research Philosophy

Research Approach

Data Collection

Secondary Data

Primary Data

Primary Research Technique
Focus Group
Observation
Interview discussion
Survey

Questionnaire
Scale
Nominal Scale
Ordinal Scale
Interval Scale
Ratio
Sampling
Probability
Non-Probability
Data Analysis
Limitations

Findings and Assessment

Conclusion

References

Introduction

The vogue of credit card is gradually increasing in the Asia Pacific region. From the middle of 70s the usage of credit card was underway in Malaysia. Basically there are two ways; Islamic and traditional ways Malaysians usage credit card. The credit card had been used for acquiring goods or services at that phase by Malaysians. Statistics indicates that only around twenty thousand credit cards were distributed during the mid-70s towards the high end individuals as it spectacles a social status (Venkatesh, 2009). However, more than 10 million credit cards were being hand out until February 2010 in Malaysia and the amount of user who use credit card was over and above 3 million (Jusoh & Lin, 2012). There are some undesirable waves of using credit cards such as it generates the obsession of spending. Additionally, the inclination of pointless as well as superfluous borrowing tendency of credit card holders. During 2005 in Malaysia, the investigator bring into being that nearly 4000 credit card holders turn into bankrupt. It was a reason for very easy terms and condition applied to acquire an own credit card from any bank in Malaysia (Citibank, 2018). As the credit cards first melody is “buy now and pay later”. Therefore, it becomes very exoteric way among Malaysian for the short term borrowing. Gradually, the unsettled credit is increasing day to day Malaysia which is anticipated the pending loan will be 15.5 billion within 2020 (Bank Negara Malaysia, 2010).

Therefore, the contrivance of this study is to provide an indistinct emphasis on the attitude of students towards credit card in Malaysia. Furthermore, this study will come together with the advantages and disadvantages of consuming credit cards.

Problem Statement

Through the study the investigator found explicit problem of conducting this research which has enlighten in the problem statement. So, the particular problem statement is “What is the student’s attitude towards credit card in Malaysia”. Additionally, the statement demonstrations a broad visions on “The attitude of students towards credit card is positive or negative in Malaysia”. The practice of using credit card is rapidly increasing persistently in Malaysia. When an individual desire to purchase a product which is expensive in price although cannot meet the expense of having it by instant cash, consequently the individual can purchase the product by using their credit card. Yet, person must have to reimburse to the bank this type of personal borrowing within a fixed period of time with certain amount of interest rate. However, it makes life more convenient and the researcher acknowledged that compare to the men credit card has been used more by women. In contrast, the service has charged quite high interest rate and unable to reimburse the amount of money to the bank with the interest rate, many Malaysians turn out to be bankrupt within the last 10 years (Elliott, 2014).

Research Questions

It is fundamental for a research to have specific questions in order to run a study effectively. In addition, it is obligatory to progress hypothesis. In that way, based on theoretical framework the researcher developed research questionnaires.

- What is the impact of information on students’ attitude towards credit card in Malaysia?
- What is the impact of consciousness on students’ attitude towards credit card in Malaysia?
- What is the impact of income status on students’ attitude towards credit card in Malaysia?

The initial question portrays the diverse or various information about having or using credit cards that influence or impact on attitude of students towards credit card. These information are transaction limit, credit limit, interest rate, payback period such. Subsequently, the following question designate about the consciousness that impact on students’ attitude towards credit card. This consciousness deals with their awareness of spending by using credit cards. The third question inflicts with the income of the students which influence or impacts on students’ attitude towards credit card.

Research Objective

The purposes this particular study is to trace the student’s attitude towards credit card in Malaysia. The objectives of this study are-

- To identify the relationship between the information about the credit card that impact on students’ attitude towards credit card in Malaysia.
- To identify the relationship between the consciousness and the students’ attitude towards credit card in Malaysia.
- To identify the relationship between the income status and the students’ attitude towards credit card in Malaysia.

The first objective of this research refers to the various information of the service that waves on the attitude of students towards credit card. The information include credit limit, transaction limit, and interest rate as well as payback period and so on. Additional objective illustrates the impact of consciousness on students’ attitude towards credit card. This consciousness covenants with their consciousness of expenditure via credit cards. Followed by the third objective portraits with the range of income of the students which impact on students’ attitude towards credit card.

Significant of the Study

It is a kind of study constructed on the ground of Malaysian Students Attitude towards credit card. Therefore it the aim of paper is to deliver an in depth analysis of students observation towards credit cards. Moreover, the investigation itself is entirely concentrating on credit card, its topographies and students consciousness on it. Furthermore, the examiner emphases on the positive and negative consumption using of credit card. Hence, the bank might be benefited by the investigation for knowing the pattern of the usage of Malaysian students. Additionally, this study will be enlighten the various tactics of credit cards developed by the bank and the advantages along with disadvantages of expending via credit card. At the end of this study, it will be stress-free to detect for the bank that the students’ perception towards credit card which is significant of the study.

Summary

During the mid-70s, Malaysian started using of credit card and gradually it has increased day by day. The most famous ways of using credit card among Malaysians are Islamic and traditional ways. Some unexpected negative impacts have been found since the past decay of using Credit cards including the obsession of unnecessary spending. Considering the facts researcher develop the first question which define the numerous information about credit cards that impact on students’ attitude towards credit card. The information include credit limit, transaction limit, and interest rate as well as payback period and so on. Additional objective illustrates the impact of consciousness on students’ attitude towards credit card. This consciousness covenants with their consciousness of expenditure via credit cards. Followed by the third objective portraits with the range of income of the students which impact on students’ attitude towards credit card.

LITERATURE REVIEW

Introduction

In this chapter, the literature review is portrayed. This chapter comprises of the related theories the researcher has brought in. The theoretical framework, factors, variables and the hypothesis development are also focused upon within this chapter. Overall this chapter comprises of the studies done in the past regarding the theories, variables as well as the factors. Article reviews, magazines, newspapers and journal reviews are the aspects from which the secondary data has been derived from. This chapter will help the reader to understand the chosen topic. This research paper focuses on the “Students attitude towards credit cards in the country of Malaysia”. So therefore the researcher has given the theories related to credit cards and the student’s attitude in the country of Malaysia. The research objective and the research questions are based on the researcher’s hypothesis and the theoretical frame work.

Literature Review

Map Literature Review

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#Fig: Map of Literature Review

Credit Card

Financial institutions and banks issue credit cards to its customers in order for them to make purchases for goods and services. In other words, it is known as a payment card. During the usage of these cards, the customers have to repay the banks and the financial institutions along with a certain charge if applicable in a given time frame(Simpson, 2018). A bank issues credit cards to those who already are in charge of a running bank account. This is sort of a loan of can also say borrowing money from the credit card issuing bank which needs to be repaid in the given time frame, as it also says in the Credit Card(IRBY, What Is a Credit Card, and How Do the Charges Work?, 2018). Therefore a bank gives you the money on credit which needs to be repaid.

According to the bank or the chosen policy, a customer can make the payments accordingly either monthly or in some cases yearly (Sawhney, 2015). There are a wide variety of options in choosing the correct credit card for one. The Credit Cards are as follows;

1) Business.
2) Student.
3) Rewards.
4) Secured.
5) Standard.
6) Balance Transfer.

Credit Card Global Usage

Credit cards help customers to buy products and services and therefore generate business for companies and keep the information of the customers (Steele, 2018). This current era is in the age of globalisation and internet is available in every part of the world at this moment. Customers have the benefit of using this system to pay their bills online, which shows that customers can easily have online access. Due to these online changes, it can be seen to have rapid increase in the usage of credit cards(Schwartz, 2016). Yet again, credit cards are used as personal loans, car loans or even store loans. The Diners’ Club in the U.S.A was the initially to introduce the credit card to the world and by American Express the first travel card was introduced. This sparked the rise of the credit cards, by 1987 the modern credit cards were being issued by the banks of USA. According to the statistics, in 1998 3/4th of the American population was using a Credit Card as well as in Malaysia, credit cards are used vastly and also has shown growth in the numbers of users (Schmalbruch, 2015).

Reasons behind the increased usage of Credit Cards

Easiness

The usage of the Credit Cards in terms of buying, transferring and paying is quite easy and quick. It barely takes a few seconds to complete a transaction. The process to purchase is quite easy, just swipe the card within the reader the payment is done (Landes, n.d.).

Usage Statements

As per the policy of the bank, the banks send their customers a statement every 30 days or monthly to the registered address. So without any hassle, the customers can check upon their details of spending’s by just sitting at home and relaxing. Banks have records of each and every expenditures and incomes of the customer’s usage of the cards, which is then later sent to the customer in the specified time to let them know about their spending’s (Ferguson, 2013).

Cashless Payments

In this period of time, carrying cash is sometimes risky and dangerous. The threat of losing the money or having them stolen is always over the head. Thou, in this era and age of the modern internet, one does not have to carry cash in their pockets. Having a credit, one can easily make the purchases one needs to make just by swiping their cards or making online payments. This makes one of the biggest benefits as one does not need to carry cash along themselves while going shopping (Dave Ramsey, 2016)

Automated Billing System

In the current stage of internet boost, all bills such as one’s telephone, electric, mobile, water and other bills can be easily paid through online sites of the credit card operators. An auto debit can also be fixed to ensure that on predefined date, the payment goes to the determined billings(Sadler, 2017).

Rewards

The users of credit cards usually are offered reward and discount incentives by their banks for paying their bills or shopping bills. Each bank has its own system of rewards for its customers. Example, HSBC gives its credit card customers 2% cash back or discount, depending upon the scheme(Harrow, 2014).

Security

Credit cards are very secure to be used. If a person loses their credit card, they just need to inform the bank and the banks will instantly block the card and therefore no one will be able to use the card to make whatsoever purchases. The bank also dispatches a new card to the customer which can either be delivered home or picked up from the bank’s branch (RBNZ, 2011)).

Attitude

Attitude is derived from a Latin word Aptus which means adoption. Attitude is directly related to the feelings of people. It is also associated along with the likes and the dislikes of a product or an object. Attitude are the feelings of like and dislike towards an object or product by a person or a group (Durkin, T.A & Price, N., 2000).

The General attitude onto credit cards

As per the researcher’s observation, users and nonusers of the cards have a positive reaction towards it. Statistically 85% of the population have a positive reaction towards the credit card. Since the early 2000’s the usage of credit cards have been seen on a steady high increase as from the times before 2000 as not much people had been taking the advantage of such a facility (IRBY, The Pros and Cons of Credit Cards, 2018). Somewhat, due to the new features and upgrades to the credit cards every year has made it just that much more popular especially due to its flexible features. According to the researcher, after the year 2006 most of the population had more than one credit card in their possession(Maggie Overfelt, special to CNBC.com, 2016).

Credit cards come in handy especially for large purchases. If a person has bought a things in a large quantity then a credit card comes with its perks. People generally do not focus on the negative effects rather like its flexible features.

The attitude of students onto a credit card

Credit Cards have become popular amongst students. A student credit card has a limit set by the parents and is paid back monthly to the bank after usage. A majority of the students keep a positive impact on their credit cards as it is quite suitable and useful to them. With the help of this card, a student can easily top-up or pay their mobile bills or make purchases from online websites when needed. The students are much happier when they buy things online and get cash back or discounts by using their credit cards. Most students believe that using a credit card, helps them in saving time. A student credit card has safety modes which the students like very much(Credit vs. debit: Get the most from your cards, 2010). Over all students do have a positive attitude towards the usage of credit cards.

Relationship between credit card usage and attitudes

The attitude & usage have a strong significance amongst credit cards. From the conducted research, it has been deduced that college students are the ones who are using this card most frequently especially for their daily errands and this behaviour is considered normal (Ramayah, Noor, & Nasurdin, 2002).

A person’s personal attitude directly affects the usage of a credit card. Active users of credit cards outweigh the inactive users. The rate of active users is high due the incentives they get, such as; high limits, easy payment system, payment periods, annual fees and etc. (Roth, 2011)

According to the research, it has been found that user’s attitude depends also upon the features and the designs of the credit cards whereas for inactive users, the design of the card is much more important. Active users have an eye out for the flexible features especially the security on using such cards. One of the biggest factors which influence an active user, is the credit limit they have. Once all these features come together, it creates a card which can be used more effectively. So it can be seen that the usage of credit card and the attitudes are directly related to one another (ROBERTS & JONES, 2001)

In today’s world, internet is one of the biggest sources of shopping which has increased the usage of the credit card. On some websites, to purchase a product or service, one must possess a credit card. It has become one of the most important factors in our modern life. The active users of credit cards want higher credit limits, easy payment options, annual fees lowered, rewards and incentives. So it is safe to say that the quality features of a credit card influence user attitudes (credit karma, 2018).

Carrying a credit card has become an alternative replacement to carrying cash. The purchase of desired products has become so much easier through it especially those highly priced products which also has an influence on using such credit cards. There can be seen also a positive relationship amongst the attitude and credit card usage ((CHARLIE SORREL, 2016).

The Attitude towards card features, issuers & users

Credit cards differ from bank to bank. The features of cards influence this attitude. According to researcher, people nowadays have shown a negative attitude towards the usage of credit cards because of their high interest rates and lower credit limits. Even having multiple credit cards will also have a negative impact and also increase the amount of loan. User have also started complaining about the rising annual fees and also upon the security risks involved.

Having a credit card, gives a flexible return payment system. The perks of the card can be used up in seconds. The owner or holders of the card are able to use it. Another perk involves, the statement of expenses, which are delivered to the customer to check upon. An auto debit system allows the customer to set a date to pay bills automatically which saves time and money.

Competitions between banks have been increasing over time, banks now try their best to gain the customers attention towards their bank. Almost every bank offers a credit card to customer and approximately 70% of the purchase points do accept credit card payments which also has the direct appeal in using the credit card (Babrovich, 2015).

Credit Cards in the country of Malaysia

The government of Malaysia has been trying profusely to increase the expenditures of the people living in Malaysia to help in the growth of the GDP. According to Malaysia’s rules and regulations, working people need to have a provident fund in their names in a bank. In order to increase domestic spending, 2% of the provident funds have been reduced to increase the spending’s domestically. The Malaysian government has also reduced the annual fees upon credit cards in order to increase the use of credit cards in the country. As a fact, if a person has pay less in terms of annuals fees, a customer will use a credit card more often.

Alternatively, the Malaysian government has been taking initiatives so that the use of credit card increases and therefore the expenditures (Buonaguidi, Della, & Italiana, 2017). Once the use of credit cards gets higher, then the purchase of products and services will also rise. This has been in effect as the salaries in Malaysia are not going up as per the economic expenses.

It has been brought into notice, the use of credit cards have been on a constant increase in the society. Thou, most of the banks in Malaysia do offer short term loans but they charge high interest rates which has become a problematic issue for the citizens and residential. But on the other hand, the benefits are going all towards the government and the banks involved in such cases (Bank Negara Malaysia, 2009).

This has been resulting in the financial crisis amongst the residents of Malaysia and only now the government is looking into this matter, but yet to be seen is the better outcome. According to the researcher, it has been seen that people in Malaysia use credit cards to purchase goods and services, therefore now putting them in a financial crisis. The bankruptcy rate in Malaysia is rising highly due to such problems in the system (Bank Negara Malaysia, 2009).

Research into the independent & dependent variable

Variables are values which can or cannot be changed based on the condition. Independent and dependent are two types of variables.

Independent Variables

Independent variables mean that they do no depend upon other factors and are completely independent. This variable cannot be influenced by any other factors and therefore cannot be changed. In this research topic, there are 4 independent variables which have been chosen;

1) Information
2) Consciousness
3) Perception
4) Income Status

Dependent Variables

These variables depend upon other factors and are influenced by other factors and therefore can be changed. In this research, only one dependent variable is available

1) Student attitude towards credit cards in the country of Malaysia

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#Fig 2.1: Variables

Theoretical Framework

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#Fig 2.2: Theoretical Framework

The Gap within the Literature

Evaluation into The student attitude towards the credit cards in the country of Malaysia is the core objective of this research. Within chapter 2, the researcher has conducted the research from literature reviews, books, journal articles and past research papers. Lee J. and Hogarth J.M conducted a research in 2000 on the behaviours of customers on credit cards. Other researches include the 2007 Scott III R and 2009 Feinberg R.A which conducted their research which has been associated within this research. Thou all the researchers stated that the Independent variables were the same as mentioned earlier but according to researcher of this research, consciousness is an additional factor, therefore creating a gap within the literature.

Hypothesis Development

In the research conducted, the four questions came popping up. Based on the questions derived, the researcher established the hypothesis. The below mentioned are the hypothesis;

Question 1:

H0: Information does not influence the student’s attitude towards the usage of credit cards.

H1: Information does influence a student’s attitude towards the usage of credit cards.

Question 2:

H0: Consciousness does not influence a student’s attitude towards the usage of credit cards.

H1: Consciousness does influence a student’s attitude towards the usage of credit cards.

Question 3:

H0: Perception does not influence a student’s attitude towards the usage of credit cards.

H1: Perception does influence a student’s attitude towards the usage of credit cards.

Question 4:

H0: Income Status does not influence a student’s attitude towards the usage of credit cards.

H1: Income Status does influence a student’s attitude towards the usage of credit cards.

Summary

In the beginning, credit cards were only being used by hotel customers and oil industry customers to make their payments much easier. Nowadays, it has become a popular and widely usable all around the world as well as being accepted throughout the world at any given point. Due to its unique and flexible features, it has become a success.

In this modern day and age, people have started doing their shopping online and saving themselves the time and effort, for shopping online on certain websites, a credit card has been made necessary. The researcher has deduced that, the maximum numbers of credit cards are being used by females. Females use credit cards in order to buy products for homes and daily essentials to keep a house running as being an stress-free to use and convenient payment option and method (Pahl, 2000)

The use of credit has been on the rise because of the benefits which are received by the customers, especially the benefits of saving money in a easy and quick process. These offers and benefits are widely enjoyed by students as it is more feasible for them to use it more often to gain the benefits. The difference in the attitude between the users and nonusers of credit cards are also seen to be quite different. Nonusers of credit cards only focus on the design of the card whereas active users of the cards look into the features and benefits (cfpb, 2017)

The financial crises has been on the rise due to the high rates charged as interest on the credit cards. People having in possession more than 1 card have been seen to spend more. While paying the bank back, the person also has to pay the high interest rates of the banks which in some cases also creates a difficulty in paying the whole sum in a single go or even at times. Eventually when these bills have become un-payable, the people just have file for bankruptcy. This has been one of the major concerns in the financial crisis.

Towards the end of this chapter, a hypothesis was developed by the researcher and also discussed the variables. The research questions were kept in mind when the hypothesis was developed.

Research Philosophy

In order to conduct any investigation activity, the researcher ought to select a precise philosophy towards the research. This is because research philosophy could aid the researcher towards choosing the correct steps and approaches that would assist to contact certain research problem appropriately along with finding answer to it. There were three variety of research philosophy. They comprises positivism, post- positivism and interpretivist (Wong, 2002). This research approaches mentioned are diverse from one another constructed on the basis of and conviction system. Positivism philosophy covers the logical method and technique of the problem that assist the researcher to discover and develop modern things in the research course through gathering data analysing from the starters to prove a certain point. Moreover, interpretivist could be denoted as an opposite approach towards positivity since in the interpretivist approach, the researcher sees a problem in a particular way that contains group of qualitative data besides analysis of data to accomplish the research purpose.

In a research, positivism and post positivism philosophy are nearly similar in both data collection and analysis process, since both works towards quantitative data. Whereas, interpretivist deals by qualitative data and analyse in order to solve a problem. Never the less, this research is conducted on the ground of student’s attitude towards credit card in Malaysia. Thus, data collected towards this research tends to be qualitative in nature plus post positivism research approach being the finest technique to proceed towards this research.

Research Approach

A researcher must ensure the proper use of approach towards conducting the research activity. In fact, there lies various approaches in conducting the research which includes approaches such as deductive approaches and inductive approach (Wiid and Diggines, 2010). Moreover, inductive research approach formulates the research to discover the stimulus concerning the problem towards the research subject. In order to create unity and making conception to test in order to make sure the conception is whether right or wrong. Contractor, in deductive approach, the researcher persistence is to find a prevailing theory and test its validity through gathering and analysing data. In fact, deductive research approaches used in order to test old fury and comprehend whether there is proper valid on the data collected. As a result, deductive research approach is selected.

This research study is grounded on students' attitude towards the credit card in Malaysia. The determination of this study is to investigate validity of the current theory. As a result, deducted research applause is picked as it becomes the perfect approach towards conducting the research on this subject.

Data Collection

There are two categories of data used in terms of piloting this research study. This comprises:-

- Secondary data
- Primary data.

Secondary Data

Secondary data refers to those sorts of data, composed and gathered from alternative academic than the investigator itself (Hair et al., 2007). Secondary data is extensively obtainable and manageable since it is prior collected and studied by other researchers for their individual purposes. Various types of secondary data sources comprises papers, journal, publication, annual reports and other existing sources. Thus, data could be used upon this research subject.

Never the less, there were numerous advantages of referring secondary data for a research, such benefits are stated below:-

- One of the key benefits of using secondary data methods for research is it is less time consuming. As the secondary data had been previously gathered and interpreted from previous researchers and could be rather used with a short period.
- Second of all, secondary data is easily reachable and attainable, such form of data could be found in libraries, internet, books and company annual report and government articles. Thus, it is easily obtainable for the research investigation.
- Third, secondary data becomes costs effective method of data collection compared to heavy expense of conducting primary data. Therefore, there is no necessity towards attempting varies surveys to collect the data.
- Lastly, secondary data provides secretary of data which assists in possibilities towards finding modern insight of data that was never been found or discovered before.

Besides advantages, there were numerous disadvantages of using secondary data towards the research. The disadvantages are mentioned below:

- One core weakness of using secondary information for the time being is the accuracy, suitability and appropriateness of the data. The information were initially gathered to a reason, in the majority of the cases the purposes behind the research wore dealings from another reason for the previous analysts. Suppose, if the prime information had been gathered 5 years back, for a investigation and that information is being used now, the data would lack accuracy and correctness due to the year gap and changes in market condition now.
- Another key disadvantage of referring existing data is the absence of control quality of data. It becomes impossible to sustain and maintain the data quality as the researcher does not have control and regulation over ways the information had been achieved.

There are numerous sources of secondary data collection, it could be either externally or internally:-

- External sources of data includes corporate examination findings and government sources; for example, yearly reports of both government assets and organization, trading firms and professional relations, various media; such as daily newspaper TV and web base, colleges and universities.
- Then again, internal sources of secondary data comprises corporate financial data, transport related data, stockpiling data and diverse inside records in the organization.

For this research to be affective, various useful secondary sources of data had be gathered and analysed that incorporate; journals, article, document, books and earlier research accompanied on this topic. Moreover, piloted internal sales statistics and financial performance reports of credit card corporations, banks and student data from universities had also been aligned for correct usage.

Primary Data

The primary data denotes as those types of data that had been composed from the authentic sources or through operators via researchers (Hair et al., 2007). Moreover, primary data could be collected straight forward by the researcher. Whereas, researcher could also assign or allocate a dedicated expert person for a third party towards collecting the primary data. In fact, Primary data could be both quantitative and qualitative. There are countless advantages and disadvantages to use primary data.

Advantages of primary data are specified beneath:-

- Key advantage of referring to primary data is the data interpret techniques constantly targets upon the problem, the researcher is working towards. Besides, the researcher have full control over both data collection procedure and data flow. Thus, it targeted subjected topics in the research problem that could be addressed in methods of data assembly.
- Interpretation and clarification of primary data could be enhanced because the research could inspect and comprehend the data reliant towards the needs of the research subject.
- Lastly, it becomes promising to maintain the current utilization of data. In fact, if data achieved from existing secondary sources lacks freshness then it may not be suitable or applicable for the research. Although, primary data could be collected in actual time interval that makes it promising towards maintaining the accuracy and authenticity of the research.

Away from those advantages, there wore couple of disadvantages of referent primary data towards research concerns, those specified below.

- First of all, primary data collection becomes very expensive to collect as the researchers ought to be included and involved towards the field level work. Moreover need to proceed with processed data collection and need to design questionnaire, survey and diverse sampling methods for the market research.
- Secondly, primary data collection technique usually takes lots of time whereas secondary data could be easily gathered within a very little time frame.
- Lastly, primary data requires necessitates towards enormous quantity of available resources distant from both restraint on budget and time frame such that primary data investigation need skilled and experienced human resources to conduct survey.

Primary Research Technique

There wore various methods of data primary data collection as required for research. Main methods incorporates focus group, observation, interview discussion, survey, questionnaire and sampling.

Some of primary research methods are provided underneath:-

Focus Group

One of the essential methods of gathering essential primary data is through focus group discussion. In discussion of focus group, a gathering of about 10 to 114 likely clients would assemble data with respect to the product and services. The discussion is typically directed by a moderator. Focus Group is exceptionally proficient path to the specialist needs to get feedback from the users.

Observation

Another effective method towards gathering primary data is observation or perception. Furthermore, observation includes watching or keeping eye on the potential uses to see their practices and behaviour in real life. In observation, the researchers watches the conduct or patterns of the clients without interfering so that it is conceivable to gather natural, regular and ordinary information from their conduct.

Interview discussion

Dissimilar to focus group, where groups of possible clients gathers in order to talk or discuss about the related product or service, rather in interview of primary data collection, there is only one individual or participant speaking towards one’s research who would lead the discussions and consultations through asking several questions to the customers regarding the product or service.

Survey

Survey is based on series of related questionnaire towards once research purpose (Chisnall, 2005). In survey process the researcher delivers a set of questionnaires aiming at the clients via telephone call, mail or physical template forms. Furthermore, the respondent fills up the survey, by finishing the questionnaires. Later the researcher use the result of the given questionnaires and implement them to the investigation findings. As survey being a popular and effective method, it would be accompanied on the students of diverse universities in Malaysia for the research.

Questionnaire

Questionnaire is a research tool or mechanism entailing sequences of queries questions and other stimulates in order to gather facts, views and perceptions of varies respondents (Cant et al., 2003). Questionnaire is a well-organized and competent routine of primary data collection, since it creates possibilities in mentioning all the issues, concerns and dispute of the research in a questionnaire.

There are numerous advantages and disadvantages of applying a questionnaire towards data collection. The following advantages are mentioned below:-

- Using questionnaire to research is essential because it is almost cost proficient. Being the most affordable and reasonable methods of survey, this research gives importance the usage of questionnaires.
- Questionnaire could be flexible since it contributes the researcher’s freedom and lack of restrictions upon designing and constructing the question in a way that obliges the persistence of effective research.
- Questionnaire is preferable due the facts that it is speedy, easy and prompt approach concerning information receives from the respondents. In most cases, a respondent usually takes around 5-10 minutes upon completing a questionnaire. Thus, researcher’s choice on questionnaire is regulated in this research subject.

The main disadvantages towards using a questionnaire for the research are provided below.

- Even though, there are numerous pros of questionnaires, sometimes untruthfulness and dishonesty of respondents upon completing the questionnaire creates falsified investigated results. In fact there are numerous cases of respondents not being 100% truthful with their answers.
- At times the researcher are not present on the time, respondent answering the questionnaires might face difficult interpreting the question which might result in providing the wrong answers for the research.
- Other than that, occasionally questionnaires could be difficult to break down in light of the fact that the vast majority of the analytical tools requires a specific structure of data to dissect and calculate the outcomes. Yet, it is hard to arrange a questionnaires such that will be anything but difficult to break down.

Scale

Scales are usually used being an ordinal level of measurement and estimation sorted out as objects in order to decide degrees of support or disfavour yet does not give any meaning of distance separation amongst degrees. In fact scale is a quantity of force of a behaviour or outlook. There are four diverse kinds of scales that are used through the research and they were nominal scale, ordinal scale, interval scale and ratio proportion scale (Burns, Veeck and Bush, 2008).

Nominal Scale

Nominal scales are cast-off for adjacent in a variable. When the examiner demands to ascertain two several variables of a simple questions it can be detectable that the variables with dissimilar nominal scale. For instance, in the situation of classifying the sexual characteristics of the respondents, the particular respondent can be recognized as “M for male” and “F for female respondents which is convenient to categorize.

Ordinal Scale

Once the investigator wishes to distinguish the sensitivity of the gesticulation of the respondents concerning a question, ordinal measurement scales can be utilize. Ordinal measurement scales are frequently castoff in behavioral enquiries for the investigator when he requires to distinguish the sensitivity of the respondents in the direction of a product or service. Ordinal scales are commonly exist when it is recycled to quantity the non-numeric perception such as gratification, pleasure, discomposure, relaxation etc. Therefore, the ordinal scale is provided below,

Sample: Are you satisfied with the service of credit cards?

#1 referring Very Unsatisfied
#2 referring Unsatisfied
#3 referring Neutral
#4 referring Satisfied
#5 referring Very Satisfied

Interval Scale

Interim measures are numeric emissions and the investigator need not distinguish the order between the variable associate the researcher requirements to recognize the modification between the two points. For instance, the modification between 30 to 40 Degrees is a computable 10 degrees besides the interval scale processes the variance amongst those two degrees.

Ratio

Once a researcher wants to distinguish the ratio amongst the two variables the ratio scales is used. When a researcher wants to know the precise values in the research on the variables, the ratio scale is therefore used in a quantitative system.

Sampling

In order to find the result occurred in the research problem, sampling comes into place. It is a process which selects the units from the interested population then to be used within the research. In other terms, sampling is a process of what a researcher has chosen to be the sample of the research from the targeted population.

The research type, problem and the solution are parts of what sampling depends upon and as to be seen by conducting the specified research. When talking about sampling, there are two types;

A) Probability Sampling
B) Non-Probability Sampling

Probability

This method is a type of sampling in which the samples are representing the complete population. In this method of sampling, a researcher selects samples in such a way that it represents the entire population accurately. Due to this, probability sampling is the most credible and effective method to be used (Birks & Macer, 2009).

Non-Probability

Due to the fact that samples are chosen in non-probability method, it is not a good representation of the population. A number of non-probability sampling types are available, such as (Birks & Macer, 2009);

- Purposive sampling
- Quota sampling
- Convenience sampling

The strength of the independence is to be ensured as this research relates to the social and behavioural science. Therefore non-probability sampling has been chosen to continue further in this research. Approximately 200 respondents will be chosen to be sampling towards a survey for this research.

Data Analysis

In order to properly analyse the data which has been collected, the researcher has to choose a proper analysis and the statistical tools. The data collected can vary according to what the researcher looks for the analysis and methods based on the types of data and the results. For analysis of the collected data, tools such as Microsoft Excel and SPSS Software’s will be used. During the research statistical tool SPSS will be used for;

- The analysis of the data collected
- Measure the Mean
- Measure the Median
- Measure the Mode
- Calculate the Standard Deviation
- Measuring the relationship between dependent and independent variables

Limitations

During the research, a researcher will for sure be faced by several difficulties and therefore it is important that the researcher is to overcome the difficulties in order to deliver a proper research.

There are a few limitations which were faced by the researcher during conducting this research. The limitations are:

1) Language Barrier

One of the main issues which caused limitation for the researcher was the language barrier. As the researcher was not a native of Malaysia, he faced a lot of problems during communicating with Malaysian students.

2) Lack of Cooperation

Another limitation to the researcher was that the respondents were quite hesitant to cooperate. Not such enthusiastic interest was shown by the university students in providing the necessary data in order to conduct the research properly.

Findings and Assessment

As this research is conducted to analyze the attitudes of the students of Malaysia towards credit card. The findings of this research suggest that there is in fact some positive and negative attitudes towards the use of credit card among the students in Malaysia. In the hypothesis testing it has been found that some hypothesis issupported by the collected data and some of them are not supported.

- In the analysis of this research it has been found that is information regarding credit cards has a huge influence on the attitudes of the students towards credit card usage in Malaysia.It has been found in this research that matter students are very confused about the interest rate of thecards as well as the billing system of the credit card. And that wrong information regarding those issues makes and negative attitude among the students in Malaysia toward credit card. And that is why because of lack of proper knowledge and consciousness regarding credit card, many students have a negative impact on credit cards in Malaysia.
- It has been found in the analysis of this research and that suggests that consciousness of the students doesn’t have any significance impact on the attitudes of the students this is because most of the students are very much aware of the information regarding credit card service in Malaysia and that makes it very easy for the students to have a perspective towards credit card usage in Malaysia.
- Thirdly, one of the major findings of this research is that all the data analysis in this research have been suggested that there is significant impact of the perception of the students toward credit card in the attitudes of them toward the use of credit card usage.
- One of the major findings of the research suggests that there is no significant relationship between income status and the attitudes of the student toward credit card. Which means that no matter what the income group those students are that doesn’t have any effect on the attitudes and perception of those students toward credit card usage.

Conclusion

This research has investigated the attitudes of the students in Malaysia toward using the credit card. It has been found that there consists both positive and negative attitudes among the students in Malaysia toward credit card. Also the reasons behind this diverse attitude of the students came from the perceptions of the students toward credit card usage. There are several things that this research has been found regarding the perception and usage of the credit card. One of the main reason for negative attitudes of the customer toward credit card usage is the interest rate. Credit card companies have a very complicated interest rate policy regarding credit card service. This research also presented some facts regarding the increasing demand of credit card usage in Malaysia and the reason is because of the services those credit card provides to the student. Although most of the credit card companies have a separate credit card service for students and that allows more benefits that a regular customer. Besides getting a credit card also became very easy because of the effort of those credit card companies. However, having some negative attitudes toward credit card usage in Malaysia among the students, most of the students have a positive attitude toward the usage of credit card in Malaysia. And more and more students are using credit cards, the more positive the attitudes are sifting. So regardless the cons of using credit cards, the demand of credit cards among students are increasing without any doubt.

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