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Research on How Citibank Competes in the Competitive Credit Card Market and How it Successfully Captures the Market Share Essay

Abstract

Research indicates that a wide variety of payment options is enjoyed by very many people in this twenty first century. They include money orders, personal checks, cashier’s check, credit cards and debit cards. This paper is dealing with credit cards as a payment system and its effectiveness. It critically attempts to explore the success and challenges faced by Citibank in its effort to market credit cards since it has become a competitive market over the past few years. Technological advancement has played a big role in the effectiveness of credit cards as a payment system. As E-commerce blooms, there is a dire need for payment system that is effective, faster, reliable and easy to transact. Indeed, the Credit Card market has in fact become a more reliable market place of services and goods and this needs banks that provide secure, easy and fast means of transacting business. This paper has recommendation on mechanisms that need to be incorporated as part of the Citibank’s scheme to combat problems emanating from the use of credit cards such as fraud.

1.0 Introduction
Research reveals that marketing is dynamic and indeed it has been evolving since mid 20th century especially with the beginning of marketing orientation. It was in this period that the initial stage of capitalism business was practiced whereby, initially, businesses were purely motivated with only the production and manufacturing of goods i.e. the focus was on producing useful products to cater for the needs of the customers at that time. Nonetheless, in the 1970s firms realized that the needs and wants consumers were ever changing and such needs dictated the patterns of production. Therefore, marketers and strategists expanded their knowledge too and came up with plans for there businesses in order to meet such challenges. This scenario witnessed the drafting of marketing guidelines in the form of business strategies, marketing plan and marketing strategies (Baker, 2000)

Marketing plans not only forms the basis of drawing marketing strategies for Citibank but all companies that desires growth and business survival. Such firms come up with marketing plans that largely necessitates crafting a business mission and vision that play a crucial role in attainment of firm’s objectives. Therefore Citibank has indeed developed a good mission statement that entails several features that has supported the bank in achieving its goals. Such features in its mission statement include; the targeted clients, customer’s needs and wants customer’s characteristics, the products, particular requirements of customers to be targeted and client’s attitudes among other issues.  Further the marketing plan of Citibank clearly spells out its objectives and has met what the strategic planners refers to as SMART criterion; SMART stands for specific, measurable, attainable, realistic and time bound objectives. In effort to prosper and attain a significant market share Citibank has not only formulated good marketing plan but it has utilized the ever changing new technology. It is quite obvious that the bank with the use of credit card facilities has utilized latest technology in the banking industry in order to meet the needs of its customers. The use of credit cards has indeed become the order of the day since it has saved customers from carrying bulky money as well as having to have money all the times in their pockets (Tranchberg, 1986)

1.1 Citibank’s Profile
Citibank was incorporated in 1812 as City Bank of New York before being renamed the National City Bank of New York in 1865. After a merger with the First National Bank of the City of New York in 1955, the bank became, the First National City Bank of New York. In 1962, the name was shortened to First National City Bank, which was sometimes abbreviated to FNCB. In 1968, the bank became a subsidiary of a holding company, First National City Corporation, which was shortened to Citicorp in 1974. Later, the name of the bank was changed to Citibank, N.A., which is the abbreviation standing for National Association. Following the merger with Travellers Group in 1988, the holding company changed its name to Citigroup Inc.

Further research indicates that, in late 2001 the Citibank and Compass Device logo began to be joined by the new Citibank Red Arc Design logo, linking the company more closely with the Citigroup family of products and services. The International Company, chartered in Connecticut, changed its name to International Banking Corporation (IBC) six months after it was incorporated on June 1901. Citigroup’s first century in Asia started with the arrival of the International Banking Corporation. Although National Citibank acquired a majority stake in IBC in 1915, and full control in 1919, the IBC name was retained until 1927, when all Asian branches except for those in the Philippines adopted the name of the parent. It was only several years’ later that Manila and Cebu followed suit. This was done so that people buy products, but such products have a lot to do with how they feel about the brand. In the mind of consumers, a better known brand is thought to be a better brand. People want to associate themselves with the image of things they like and they will pay extra to do it for instance; being associated with Citibank credit cards (Cinchona and Ronkainen, 2005)

It was in 1890 under James Stillman, the son of a wealthy cotton broker and a businessman that the bank really moved forward. He quickly setup about the building of the bank into a major financial institution by expanding into the booming business of underwriting and distribution securities while forging close alliances with leading industrialists, notably William Rockefeller, the President of Standard Oil of New York. Citigroup, Inc., a multibank holding company, provides various financial services to customers in the United States and internationally. The company’s Global Consumer segment offers banking, lending, insurance, and investment services. As of March 31, 2007, this segment operated through a network of 8,140 branches, approximately 19,100 automated teller machines, 708 automated lending machines, and the Internet. Its markets and banking segment provides various investment and commercial banking services and products, which comprise investment banking and advisory services, debt and equity trading, institutional brokerage, foreign exchange, structured products, derivatives, and lending.

1.2 Background to the Study
Many financial institutions have utilized the concept of online banking and particularly the sue of credit cards; online banking in essence, is based on the technology of internet and the usage of personal computers. In earlier days banks used power full computers to computerize millions of transactions carried out every day. Through internet, Branches of the same bank can develop networks, through which they could keep up to date with transaction and could provide services such as the use of credit cards to its clients in any part of the world where such technology is utilized. The most noted bank that embraced the concept of e-banking that included use of credit cards was the Royal Bank of Scotland in 1997. In record just over ten years online banking has gained so much popularity, that almost all banks provide certain features of online banking if not all. Indeed recent research carried out indicates more than 90% small and medium-sized businesses use online banking now than five years ago. Further research also reveals that individuals have opted to use credit cards in transacting their businesses in this contemporary world with over 70% of Adults having credit cards (Carter and Lee, 2005).

1.3 Statement of research purpose
Research reveals that the most financial institutions marketing strategies has extensively been tested by the new and ever changing technology that comes as a result of globalization. That such marketing strategies viability to work is not a question but rather, how such strategies operates and why it successfully works in the modern business world have become areas of decisive concerns. Further research reveals that the issues of timing and distance are lessening swiftly with the introduction of quicker communication, conveying and advance financial innovations being utilized. Most financial institutions are now expanding uncompromisingly into new and global markets and research also reveals that domestic market niches are now short of marketing opportunities that can be exploited.

Today’s consumer is more aware of his or her needs and more conscious of his or her rights when it comes to choosing products for use and for this reason companies are faced with the task of effectively branding their products to increase consumer loyalty and to remain competitive in their industry (Mark, 2001). For instance, as a means of surmounting such challenges, Citibank has in the recent past focused on utilizing its marketing mix i.e. product, price, promotion and place. Its main reason has been to come up with an unfailing mix whereby all the 4’P’s will integrate in order to meet its objectives. Financial institutions including Citibank are now more and more identifying their preliminary stages for coming up with decisions. Citibank has indeed done this by attempting to initially comprehend the needs and desires of its clients in its intended markets.

It is obvious that several firms have entered in to the credit card market and Citibank is currently facing rigid opposition from such banks globally; such financial institutions that provides stiff competition include Barclays Bank, HSBC, Bank of Baroda, Standard Chartered and American Express Bank among other financial institutions that have grown over the recent past in the entire global banking industry. On the other individuals too have now opted to transact their daily business transactions using credit cards since it is an easier and faster way of transacting.

Therefore, this study attempts to shed more light on the importance of business strategies and particularly to identify the marketing strategy applied by Citibank globally that will enhance its operations both locally and globally as well as remaining competitive on the credit card market in the banking industry.

1.4 Method of Research
In order to attain significant and more reliable results both primary and secondary information is utilized in this research study. The main aim of combining the two sources is to enable the reader capture what was there in the past and what the world is like in the present especially with regards to the use of credit cards. From the libraries or what is commonly referred to as secondary sources it enables the researcher as well to capture the overall idea of credit card development since its inception particularly when the concept of online banking was first utilized.

1.5 Objectives of the Study
The main objective of this study is to determine how Citibank competes in the competitive Credit Card market and how it successfully captures its market share. The specific objectives of the study are:

1)      To find out the Citibank competitive services that attracts its consumer decisions on the preference for Citibank’s Credit Cards

2)      To find out the various uses enjoyed by Citibank’s clients when they utilize the bank’s credit cards

3)       To find out the various advantages enjoyed by Citibank’s clients when they utilize the bank’s credit cards

4)

1.6 Research questions
1)      How Citibank competes in the competitive Credit Card market in order to achieve large market share in the banking industry particularly with the marketing of credit cards?

2)      What are the various uses enjoyed by Citibank’s clients when they utilize the bank’s credit cards?

3)      What are the various advantages enjoyed by Citibank’s clients when they utilize the bank’s credit cards?

1.7 Importance of the Study
There are different groups that this study will benefit. The first group is to Citibank who may need to know how the various uses and advantages have influenced consumer purchase preference regarding its credit cards uses.

The second group is to the researchers who would be interested to further study the influence of credit cards in today’s individual routine and business transactions in the banking industry and future references.

The third group is to the academicians who may wish to enrich their stock of knowledge in the growing and ever changing field of innovations particularly in the banking industry.

2.0 Current Global Marketing Strategy of Citibank
Business research reveals that the chief goal of any business organization is to augment its market share in its business undertaking i.e. to increase sales which in turn lead to an increase in profit levels. For Citibank to attain such objectives has always formulated an efficient marketing strategy that cope with the ever changing business environment. Such marketing strategy is actually a tactic that Citibank has been utilizing and still intends to utilize it more in order to better its performance with particular reference to attaining a large market share and enhance its business survival (Hollensen, 2004).

It is evident that Citibank have been utilizing diversification strategy as its marketing strategy with regards to Credit Cards provisions to its customers. The bank has not only utilized in terms of opening branches globally but also it has diversified in terms of product i.e. it offers a range of different Credit Cards services to its clients. It is for this reason that Citibank have been able to reach too many clients and thus acquired a competitive edge over its rivals in the credit cards market. In the process of diversification Citibank have utilized growth strategies which has seen the bank compete entirely across the credit card markets thus attaining a significant market share in the industry (Arens, 1986).

Research reveals that Citibank has been utilizing marketing mix strategy as its current global strategy in order to cope with competition from other financial institutions that offer credit cards services. A marketing mix is usually used especially on branding and advertising as argued by Jerome McCarthy. The populous four Ps of marketing mix strategies are utilized, these are; Product: Product marketing and management aspects deal with the specifications of the actual good or services and how it relates to customer needs (Kottler, 1996).The products produced by Citibank i.e. credit cards are said to be diverse and meet the expectations of its clients. The characteristics of credit cards they offer are well defined thus meeting the needs of the clients; for instance, the credit card itself is light, small and attractive thus enticing the bank’s customers to utilize the credit cards (Allard, 2005).

Pricing: Pricing is the process of setting a price for a product to be sold in the market. It is not necessarily fixing a monetary value but simply what is exchanged for the product or service at stake e.g. attention, time etc. Citibank globally has adopted the following pricing strategies to enable the credit cards reach its marketing standards. Premium pricing where the uniqueness of the bank credit cards are defined; Penetration pricing whereby, Citibank intentions was first to achieve a larger market share thus offered the clients with variety of credit services with less or no fee sometimes, but later it has increase the fees of using such credit card services.

Promotion: Promotion strategy comes in various forms; personal selling, publicity, sales promotion or advertising and it refer to the various marketing strategies of convincing the customers to buy the brand, product or company. Citibank over the past few years have engaged in constant advertisements of its credit cards services trying to depict such services as unique thus convincing many individuals to use the credit cards. They have carried out advertising in daily media thus reaching to wider audience.

Place: Place is also the distribution modes which refer to how the product gets to the customer. Citibank has opened many branches worldwide and it has competent staff for instance customer care executives that help the clients on the various uses of the credit cards. They have also ensured that credit cards are available to new customers in time and in convenient places in order to satisfy their needs. The utilization of computer technology for instance has aided Citibank to get access to a wider market thus boosting its business performance in the banking industry (Dole and Lowe, 2003).

3.0 Literature Review
Since the twentieth century, there has been high interest in relation to payment schemes and electronic commerce over the internet. There are very many payment systems that are being invented day after day. Many people have proposed payment of internet transactions. There are other payment systems that are still being developed. Research indicates that nowadays Credit cards are widely being used globally. However more recent research reveals that they are very common in the developed countries. This has been influenced by technological advancement therein. Credit cards are highly effective especially in this twenty first century.

3.1 Background of Credit Cards Uses
Scholars assert that credit card usage has increased in the recent years. It is widely used among young people all over the world especially in developed nations. Surveys carried out in colleges in United Kingdom show that college students widely use credit cards. Many Companies are known to target the younger generation in their marketing strategies. This does not mean that credit cards are only used by young people. This facility is also widely used by old people as a payment system. According to surveys carried out in the year 2001 in United Kingdom, teenagers are also using credit cards as a payment system too. This is because eighteen year olds are eligible for a credit card without their parents consent or regardless of employment status.

Credit cards actually help consumers to have an easy way to track their expenses. This is because companies that offer credit cards normally send to the consumer detailed notices showing what products and services were purchased during a certain period of time. This is very essential in monitoring ones personal expenditures. Credit cards since the twentieth century are worldwide accepted. They involve limit in repayment agreement and credit limits. In nations like United Kingdom, France and United States there is normally the limiting of the amount which card holder is held liable because of fraudulent transactions that result from the consumer losing his or her credit card.

In case a credit card is stolen, the card issuers in most cases refund part of the charges or sometimes all that they got from things not purchased. Research shows that such refunds are normally at the expense of the merchant who sold the goods. This is very common if the merchant can’t actually claim the card sight. This means that merchants stand a chance of losing money if they never requested for the person’s ID (Bakos, 1991)

3.2 Advantages of Credit Cards
A credit card as a means payment system has got various advantages both to the users and also to the issuers.

3.2.1 Free Insurance
When an airline ticket is bought using credit card, the purchaser gets free travel insurance. People using credit cards have to check what is normally on offer during the period they are purchasing in order to make use of such offers. Credit cards also provide platinum cardholder various benefits. They include up to ? 1,000,000 in travel accident insurance, various emergency and travel assistance services, car rental discounts and auto rental insurance. All these provisions are very important in making life of card users cheaper and easier.

3.2.2 Later Payments
This is an aspect of credit cards that makes it widely used by many people all over the world. For instance if a card owner pays full balance at the month end, then this means that he or she will have gained some ‘free’ money for approximately two to three months. This actually depends on the type of company offering the credit card and the policies therein. It also depends on when the purchase was made and the customer’s grace period. This is very advantageous especially when one wants to purchase a very expensive item. This can be a new refrigerator, laptop, double bed or a new sofa. This is because one can time his or her purchases so that they can get a maximum amount of grace in between the period when it is purchased and when the bill is actually settled with the company issuing the credit card. This when well calculated can be very advantageous to the person using the credit card. An analysis on the use of credit cards shows that this strategy works quite well. This is if the credit card users strategize by putting all the purchases on one credit card. In this case the debit balance can then be moved to another credit card that has lower interest on balance. This is normally advantageous if the credit card offers zero percent interest on balances for a specific period. This period is usually between six to twelve months (Lee, 1996).

3.2.3 Loss protection
This is quite applicable to many card users and it is a common occurrence. For instance if a person goes shopping with ? 600 to  use it in purchasing goods then the money is lost on the way to the stores, this can be quite inconveniencing. On the other hand if a person has some little cash plus a credit card and loses them then it is not inconveniencing as the former situation. This is because such a person can just communicate to the company that issued the credit card. In such a case the issuing Company will always cancel the card and the card user can issue him another one as soon as possible. This is normally within a period of one week.

For this reason credit cards actually help protection loss of money and that is why they are effective payment system. This actually depends on the issuing Company’s policies and laws but what is illustrated above is what actually happens to most of them. In case the stolen credit card is used before the person reports it to the company, his liability in this case is a token amount or zero. There are also cases where the card number is stolen but the card user still posses it. In such a case the card user’s liability is zero as stated by majority of card issuers.

3.2.4 Minimal Risk of Cash Loss
With globalization, many businesses are incorporating the use of credit cards. Many companies nowadays do not accept cash payments because of great risks involved. Many companies such as Car rentals or hotel bookings don’t accept cash payment but credit cards only. This can be quite inconveniencing if one does not have credit card. There are also some businesses that need the purchaser to have a credit card as a deposit even if he or she settles the bill in cash (Kotare and Helena, 2004)

3.2.5 Protection of purchase
It is very advantageous to use credit card in purchasing goods. This is because there are instances when a person can purchase faulty goods using credit card.  Such goods are normally a hundred percent insured for one or two Months. This insurance according to analysis shows that in most cases it covers loss. For instance if a card user purchases goods using credit card and actually losses them n his or her way home, the insurance company normally covers this loss.

3.2.6 No need of cash
Credit cards are quite advantageous especially to the users. This is because they actually eliminate the need to carry around cash. Common knowledge tells us that cash is quite bulky to carry around. In this case credit cards are very light and can be carried to any place is visiting. They are very convenience in the sense that they are quite light to carry around. One does not necessarily need a purse to carry a credit card but they easily fit in pockets. For this reason credit cards are very effective payment system that should be used by all despite their social status.

Credit cards are quite effective because it plays a big role. Have you ever been out on the streets then you get something you have desired to purchase. Probably when you are out for shopping you never come across it. I mean the right colour size and even quality of merchandise. In case you come across it by chance and you are without a credit card, it simply means that you cannot purchase it. In case you have a credit card it simply follows that you can purchase the item. That is why is why it is quite advantageous to use credit   cards as a payment system.

3.2.7 Travel advantages
This is also one of the advantages of using credit cards. For instance if a person decided to travel from United States to United Kingdom then he needs to change the Dollars to Sterling pounds. In case this is done at a local bank then such a person is likely to get very bad exchange rates. This also can include various commissions charged for exchanging the currency.

This can be different in case such a person has a credit card. This is because when credit cards are taken along on holiday, the rate is far much better than when cash is used. Research shows that many nations’ tourist resorts, cities and travel agents accept all the major credit cards. This move has actually been enhanced through globalization.

In case a credit is carried along on a holiday, it normally wins against debit card. This is because of its ability to have better protection safeguards. It is normally wise for travellers to keep each receipt of every purchase made. This can be diligently checked against the card statement issued by the Company. Many credit card companies nowadays offer customers the ability to manage their accounts online.

3.2.8 Other Incentives
Research carried out in many developed nations including United Kingdom and United States shows that credit cards are widely used due to their various advantages. Research findings show that many credit cards actually offer loyalty schemes. They normally point towards reward systems. The loyalty schemes include air miles incentives etc. In case a person often uses credit card and has a good record of paying off the balance, he or she is normally better placed min this case. This is because with the right reward scheme one can accumulate very good savings which can be used for future purchases of goods and services. They include purchases on air flights within and also outside the country.

3.2.9 Cheaper
Credit cards are far much cheaper than short term loans. This is because such loans will call out for higher instalments. It is therefore far much cheaper to purchase goods using credit card than to obtain a short term loan to purchase the same. Credit cards also offer a high degree of loan flexibility. This means that a credit card user can pay the whole debt or just pay a minimum amount. Another advantage in line with this is that many credit cards offer a free period whereby interest is not charged. There are also no redemption penalties for an early loan repayment. For this reason credit cards are an effective payment system.

Credit cards are also convenient to use because they allow people to order for purchases by mail or even by phone. This actually saves the time and energy that could otherwise be wasted travelling to stores to buy goods desired (Holland, 1994).

3.3 Disadvantages of credit cards
As elaborated above credit cards are very convenient but research shows that when they are not well managed they can cause various problems. These include the following;

3.3.1 Unpaid balances
When individuals spend more than they can actually afford every month, they always end up having to pay for increased interest rates every month. It is quite easy for an individual to forget purchases that he or she made with the credit card. Such a person can end up getting surprised at the end of the month on seeing the number of purchases signed up. Many companies charge high interest rate on any unpaid balance. If such an individual continues to pay only the minimum amount then the unpaid balance can actually become too much for him to handle.

3.3.2 Fraud
There are two types of credit card fraud. They include external card fraud and inner card fraud. In inner card fraud the cash is defrauded. It involves collusion between cardholders and merchants. This is where they use false transactions to defraud banks. External involves using counterfeit credit cards to acquire cash in disguised forms.

This is one of the problems that are quite common all over the world. This actually involves credit card theft. Someone can steal another person’s credit card and use it to make purchases. This is a problem that is increasing day by day as technology advances in the society. It is not just the possession of ones physical card by thieves that they can make fraudulent purchases but many criminals can actually obtain credit card numbers through dubious means.

This means that a person may not know that someone has used his or her credit card until he gets the monthly statement showing the goods purchased. Research shows tat while this payment system is quite convenient, it has high interest rates especially when a person stays with unpaid balance  for a long period of time. This implies that card user can easily get into a financial debt. This issue of credit card theft is a real threat as criminals devise more devious methods of obtaining people’s credit card numbers.

3.3.3 Interest charges
Many credit card companies charge extremely high interest fees on credit cards. This is one of the biggest disadvantages of using credit cards. According to surveys carried out in United States, many credit companies therein charge twenty percent on purchases that are not fully paid by the end of every month. These charges are used by credit card companies to help in their day to day running of the business (Hoyer and MacInnis, 2001).

3.3.4 Temptation to Overspend
Credit cards are not the best for people who are spend thrifts. This payment system can actually tempt individuals to overspend because they actually don’t have to pay for the purchases there and then. It is possible for an individual to spend more than what he or she has in account. The purchases can go up to maximum of credit card limit. An individual just signing a document when purchasing doesn’t always feel like one is actually spending money. This makes many credit card users to overspend compared to when they use cash as a payment system.

3.3.5 Technical issue
The entire process of creation of credit cards and processing is very technical. It involves very many systems put together like the electronic point sale terminal and the transaction terminal. There are the wireless LAN and POS systems which are also included. This makes the process of fraud detection in use of credit card to be a very technical issue. There is high necessary diagnostic quality that is a major obstacle for using neural network training techniques.

3.3.6 Convenience, risk and cost of payment
Surveys were carried out in relation attitudes that users have in relation to payment systems. This is in relation to security, convertibility of funds and ease of use. Investigations on consumer preferences on cash, debit cards and credit cards showed that convenience played a big percentage in credit card usage. The results show that payment decisions made by customers depended on privacy, security, convenience and low cost. Results show that credit cards have more protection than money order, cashier’s check and cash. This is because purchasers normally have the right to withhold payment in case the goods are of poor quality. They can also withhold payment if the goods are damaged. In the modern society, convenience is a factor of great importance. In internet commerce, shopping convenience is also important. The reason as to why credit cards are more convenient is that they can be processed electronically.  This is unlike money orders which have to be mailed after being obtained from issuer. In the case of the seller, payments are collected automatically through electronic means. This is very effective for sellers with high selling volume (Lee Carter, 2005)

3.4 Types of credit cards and their advantages
There bare various types of credit cards that are widely used in the market today. They include secured credit cards and prepaid credit cards.

3.4.1 Prepaid credit cards
In this type the card holder spends deposited money prior to the actual deposit. The money is normally deposited by an employer, a parent or a guardian. It is normally branded MasterCard or Visa. Due to market demand, credit Companies decided to offer prepaid credit cards. These types of cards have higher interest costs and APR fees. This card is normally purchased and then loaded with any amount of money that the card holder desires (Gronroos, 1994).

The card I then used to purchase various items desired by the bearer. This type of credit card has got its own advantages. One of them being that a person does not have to come with a minimum of $500 before opening an account. When using this card one is not charged when no money is borrowed. This is unlike secured cards which charge credit card user even if the card has not been used to purchase any item. Many companies offering this type of credit cards normally targets the youth who normally shop online without their parents consent on the transaction.

3.4.2 Secured credit card
This type of credit card is normally secured by a deposit account which is normally owned by the person who holds the card.  The cardholder normally has to deposit a certain amount of credit desired. This is between 100% and 200%. For instance if the cardholder deposits $ 1000, he can access credit ranging from $ 500 to $ 1000. There are instances when users of credit cards offer incentives especially on their card portfolios that are secured.

This means that the required credit limits will more than the required deposit. This can go as low as ten percent of the credit limit. The institution offering credit cards normally holds the deposits in savings account. This is offered by credit card issuers after noticing that it reduces delinquencies. This is because it shows customers that he can lose in case he fails to pay up the balance owed after using credit cards (Lee, 1996).

In this facility the card user has to make payments on a regular basis. This has to be done just like when one uses regular credit card. The cost of purchases that is paid to merchants out of deposit can be recovered by the card issuer in case the person issued defaults on payment. This secured credit card is quite advantages because it can help rebuild credit history that is quite positive. This is very advantageous for individuals who have had a negative credit history or who don’t have any credit history at all.

The deposit in this case acts as security and is normally kept by the credit card issuer just in case the consumer defaults. This does not mean that deposit is debited in case a consumer misses to pay one or even two payments. When the account is closed, the deposit can be used as an offset. This is normally implemented when a customer requests or when there is delinquency that is so severe like for one hundred and fifty days to one hundred and eighty days. If there is less than one hundred and fifty days delinquency on an account it can just accrue fees and interest. This in most cases results in a balance that is more than that on credit limit on the credit card. This means that the debt can actually exceed the deposit left by the card holder. This is an option for people with poor credit history or those that do not have any credit history at all. This is a venture that helps such individuals to rebuild their credit. These types of cards normally have a logo of MasterCard or Visa on them. The amount of charges for this type of credit cards exceeds that which is charged on ordinary credit cards that are not secured. Research shows that these secured credit cards are less expensive than secured credit cards (Holland, 1994).

A Model of Consumer Decision making regarding credit cards

External Influences

Firms Marketing Efforts

Product
Promotion
Price
Channels of Distribution

Input

Consumer

Decision-Making

Need Recognition

Pre-purchase search

Evaluation of Alternatives

Psychological Field

Motivation
Perception
Learning
Personality
Attitude

Process

Source:

Post decision

Behaviour

Purchase

Trial
Repeat Purchase

Output

Post-Purchase Evaluation

Source: Shiffman, L. and Kanuk L. (2002): Consumer Behaviour. Low Price Edition, Prentice Hall of India Private Limited

4.0 Citibank SWOT Analysis
Present organizations are faced with changing business environments and Citibank is not extraordinary from facing such challenges within its business context. Therefore, by performing SWOT analysis, environment analysis has been and is very decisive to Citibank and such analysis is usually analyzed in two extents; the external environment and internal environment examination within the business perspective. According to research, the analysis of external environment illustrates opportunities and threats that exist in the market for a firm that may be either present or impending. On the other hand, internal environment examination depicts the strengths and weaknesses that the business may face in the market place (Lovelock, 2006).

4.1 Strengths
Strength in this context can be identified as that distinctive ability posed by a firm and if the company utilizes such an ability it can succeed and can gain competitive advantage, over its rivals in the industry. The most common strength associated with Citibank is that of being a market leader in the banking industry. Research indicates that Citibank is better placed than its main rivals in the market in that it has significantly large market share which is attributed to its diversification to various countries in the world, for example it has opened many branches globally thus expanding its operations particularly the use of credit cards transactions. It is also reported that Citibank has a strong brand name of its products i.e. its credit cards have significantly supported the bank in terms of realizing a large market share than its competitors. The other strength that the bank has is that of the best marketing channels that have supported marketing of credit cards to a wider range of customers. The utilization of e-commerce and particularly the use of internet have boosted the bank’s chances of exploring new markets for credit cards. (Anthony, 1998)

4.2 Weakness
Weakness too in business perspective can be referred to as any dimension of a business organization that perhaps will deter the achievement of set goals by the firm and it is more often than not considered to embrace the firm’s resources, capabilities and assets that are not fully utilized. From the bank’s profile it can be noted that Citibank has weak policies, procedures and regulations that may deter the meeting of target performance of the bank in some target markets. It is also reported that recently, the employees are not motivated to work and there has been complains regarding low pay and poor working conditions among others although such reports have not been proved. Also the culture of Citibank has been under scrutiny and there has been allegation that the bank has been engaging in promotion of credit cards that is misleading i.e. such adverts exaggerates the uses of the credit cards (Anthony, 1998)

4.3 Opportunities
For Citibank to achieve its set objectives, it has to identify any devise events or features in the business external environment that will give the bank an added advantage or chance of performing well than its competitors; such an event or feature can be referred to as an opportunity because it will create more chances to the bank of increasing the current proceeds through acquiring a significant market share. Citibank has opportunities that if utilized will be of great benefit to the bank because it will lead to exploring and reaching to more new markets. With regards to the emerging new markets of credit cards in some countries particularly in Africa and Asian countries, the bank can take advantage of such opportunity and thus increase its target market and in the process increase its market share (Lovelock, 2006)

 Research indicates that is greater demand for credit cards in Africa and the management of Citibank should open subsidiaries in some of those countries after carefully analyzing the situational analysis in those potential markets. Since Citibank is among the market leaders in credit cards market it is perceived to be having a well developed financial foundation and thus does not face any liquidity or cash flow problems; this is an opportunity that the bank should utilize It is for this reason that the bank should explore new markets and can compete across the entire market without fearing that competitors can outdo them financially. However, before competing in such new markets Citibank should carefully evaluate cost benefit analysis in order to avoid unnecessary losses in future (Anthony, 1998).

4.4 Threat
In business setting, a threat is said to be an event which if not carefully taken care of it may perhaps prevent the accomplishment of company’s goals e.g. customers declining income and competition among other events deemed to causing danger to the operations of the business. Citibank is fundamentally faced with strong rivalry in credit cards market in the banking industry since many banks have opted to join the credit card market because of invention of advance technologies. In fact, in some of its market segments particularly in Europe there has been a significant drop in terms of the market share because new banks has entered the industry in full force with diverse uses of credit cards. Globalization concept has further brought about new inventions and Citibank is faced with the task of coping with such innovations, for example the task of training and development programs to educate its workforce on new technologies have proved to be costly and also there is difficulty to acquire the use of on-line marketing techniques and networking facilities (Drucker, 1993).

5.0 Research Methodology
5.1 Introduction
This section of the research proposal outlines the research methodology that was used in the study. It covers the research design used, data collection methods and instruments employed, the sampling design and the data analysis techniques that were used in the study.

5.2 Research Design
The research design method used was that of descriptive research design. Descriptive studies serve a variety of research objectives such as description of phenomena or characteristics associated with a subject population (i.e. the who, what, when, where and how of a topic), estimates of the proportions of a population that have those characteristics and discovery of associations among different variables (Cooper and Shindler, 2003).

This method was chosen for the study so as to show characteristics of the study population and how the variable of online banking especially the use of credit cards had influenced their choice of sticking to Citibank.

5.3 Population
The population of interest in this study consisted of all Citibank’s customers and particularly those who use Credit Cards provided by the bank. This population was chosen since it provided a readily available data source for the information needed to carry out analysis for the research. This population is frequently exposed to innovations and advertisements through various mediums such as the internet, billboards, newspapers and magazines, radios and televisions regarding Credit Cards improvements. Time and cost was limited to the researcher thus Citibank’s Clients who totalled 500 in number, was chosen to be the target population of the study since the researcher could easily get the required data without spending a lot of resources as well as within a short time.

5.4 Sampling
For this study, a sample of all clients of Citibank was selected from the whole population. The researcher visited Citibank branches during working hours in order to identify the respondents and particularly those who use Citibank credit cards. Therefore, systematic sampling procedure was utilized in selecting the hundred respondents identified. Under systematic sampling technique, the items or individuals of the population are arranged in some manner. A random starting point was identified and then every 5th client of the population was selected for the sample. Therefore hundred Citibank’s clients with credit cards were administered with the questionnaires and were expected to fill and return them in a span of not more than two weeks.

5.5 Data Collection Methods
Data was collected using a questionnaire technique, which had:

                   (a) Closed ended and

                   (b) Open ended

Further the questionnaires were divided in to sections as follows; the first section was that of general questions, which helped the respondents to grasp the whole idea of the research that was carried out. The second part was that of competitive questionnaires, which contained questions regarding the competitive advantage, that Citibank had in the market and how it carried out its Credit Cards innovations in order to remain competitive in the banking industry. The third section was that of comparative questionnaires which contained questions regarding the respondent’s perceptions on why they prefer Citibank’s Credit Cards and not other Credit Cards offered by other banks.

5.6 Data Analysis Techniques
Once the data was collected the researcher utilized the applications of Statistical Package for Social Scientists (SPSS) in order to group the data into meaningful subsets by way of descriptive statistics, which gave clear and conclusive deductions. Thus data collected was analyzed using percentages and means and presentation was in the form of tables, graphs and pie charts to show the effect of variable marketing has on Citibank’s preference of their Credit Cards. Such techniques utilized were self-explanatory and represented the response rates as well as the variables that the study was considering.

6.0 DATA ANALYSIS AND FINDINGS
6.1 Introduction
Data acquired from the respondents was analyzed using various techniques. The researcher was expected to tabulate the results and particularly use percentages to analyze the data before making explanations or deductions. However, at some other instances the researcher was required to categorically use charts and more specifically pie charts in order to clearly show the results and findings obtained from the research. Out of 100 questionnaires issued ninety of them were filled by the customers and returned to the researcher in a span of two weeks.

6.2 General questions

From the pie chart above it is evident that there is small percentage point gender imbalance who are currently clients of Citibank.  54% percent of the respondents were recorded to be male while 46% were female customers. This implies that both genders earn considerably balanced income and thus we can deduce from the responses that there is no large income inequality between the two groups. The results further depicts that Citibank have indeed reached to both genders in a more balanced manner than its competitors.

Table 1 indicating respondent’s years as customers of Citibank

No. of Years
Number
Percentage

0-5 Years
30
33.33

6-10 Years
35
38.89

11-15 Years
15
16.67

16-20 Years
10
11.11

Over 20 Years
0
0

Total
90
100

From the table above it can be deduced that Citibank adopted innovation early enough when compared to other banking institutions that provide same credit cards services to there clients

As a matter of fact Credit card innovation has been around for a period of not more than thirty years in the banking industry. From the respondents, it is further clear that Credit Card service provision is on the increase and many individuals are embracing this technology. 38.89% of the respondents indicated that they have utilized Citibank’s credit card facilities for a period between 6-10 years, while 33.33% indicated that they have been using credit card services for a period between 0-5 years. 16.67% indicated a period between 11-15 Years while 11.11% indicated to have utilized credit card services for a period between 16-20 years. None of the respondents indicated that they had used the credit card services for a period of over 20 years suggesting that credit card innovation is still new in the banking industry.

Table 2 indicating respondent’s income Range per month

Amount
Number
Percentage

200-500 Dollars
20
22.22

600-1000 Dollars
10
11.11

1000-1500 Dollars
30
33.33

1600-2000 Dollars
15
16.67

Over 2000 Dollars
15
16.67

Total
90
100

It is clear from the above table that Citibank have indeed lowered its pricing of getting credit cards in order to attract all individuals even low earning individuals. 33.33% of the respondents indicated that they earn between 1000-1500 Dollars every month while 22.22% who earned between 200-500 Dollars came second in that order. 16.67% a piece of the respondents indicated to fall in income range of 1600-2000 and over 2000 Dollars respectively per month. Another 11.11% of the respondents indicated to be earning an average income between 600-1000 Dollars every month.

6.3 Competitive questions
Table 3 indicating the extent to which the respondents agreed that the various factors played a major role in their choice of Citibank’s Credit cards Services

Reasons
Very large extent
Large extent
Moderate extent
Small extent
No extent
Through an advertisement
45%
15%
12%
18%
10%
Enquiries from Citibank outlet
45%
23%
12%
17%
3%
Recommendation by a friend or relative
55%
12%
13%
5%
15%
Promotion by Citibank’s sale people
35%
17%
20%
13%
15%

From the above table, it can be noted that the first important reason that respondents considered before selecting Citibank’s Credit cards as their best facilities of their choice and not any other banks Credit Cards is that of recommendation by friends or relatives since such response garnered the highest percentage of 55%. The second most important reasons were those of both inquiries from Citibank outlet and through advertisements which recorded 45% apiece. The third most important reason regarding Citibank’s Credit Card choice was that of promotion carried out by Citibank’s sales persons whereby the highest percentage in that category recorded 35%.

From the above chart it can be noted that there are several reasons of Citibank’s Credit Cards that attracts its customers. An overwhelming 62.22% of the respondents cited the reason that Citibank’s Credit cards are easy to use and thus they preferred them when compared to those of competitors of the bank. 15.56% of the respondents opted for the reason of easy to carry as being their main reason why they chose Citibank’s Credit Cards. 11.11% of the respondents indicated that they opted to use Citibank’s Credit cards because of the various uses that the Credit Cards provide to them during their day to day financial transactions. Both the reason of peer pressure being the reason as to why respondents opted to do business with Citibank’s Credit Cards and those respondents that did not responded to the question recorded 5.56% a piece.

From the above table it is evident that new Citibank’s customers who apply for their Credit Cards do not have to wait for a long time for the process of such cards to be completed. Therefore, this implies that Citibank’s application process plays a major role in augmenting of its market share in the banking industry since customers always prefer fast and speedy services.  An overwhelming 75% of the respondents indicated that during their application for credit cards, the process was completed within a span of one week. 13% of them revealed that their application process took a period of two weeks to be completed. 10% of the respondents indicated their period to be between three weeks while none of the respondents indicated that the process lasted for more than a month.

Table 4 indicating extent to which customers agreed or disagreed that Citibank innovation has influenced them in utilizing current credit card services offered by the bank

Reason
Very large extent
Large extent
Moderate extent
Small extent
No extent
The Citibank credit cards Depicts certain

Lifestyle that suits me
25%
25%
10%
13%
27%
Citibank’s Credit Cards are very attractive
13%
27%
22%
18%
20%
Citibank’s Credit Cards services represents my needs
34%
16%
13%
5%
32%
The frequency of Citibank advertisements keep me glued to my bank
50%
12%
8%
15%
15%
Continuous Citibank’s innovations informs me on how to take advantage of my Credit Card facilities
33%
20%
7%
23%
17%

Table 4 above clearly indicates the perceptions of respondents regarding innovations carried out by Citibank in its attempt to maintain and enhance its market share in the banking industry particularly the invention of credit card services in this contemporary world. The first most important influence that made respondents to choose Citibank’s credit cards was that credit cards services promotional activities in various media being carried out frequently thus making the respondents glued to Citibank; the response was recorded at 50%. The second most important reason was that of Citibank’s continuous innovations, which inform the respondents on how to take, advantage of their credit cards and it received a representative positive response of 53%. The third most important reason was that of Citibank’s credit cards representing the respondent’s needs and it garnered a collective positive response of 50%. The reason of Citibank credit cards facilities depicting certain lifestyles that suited the respondents was ranked to be the fourth most important reason with 50% of the response rate; this is because 40% of the respondents rated the reason negatively. The reason of Citibank Credit cards facilities being attractive according to research was the less important reason as it scored 40% of the response.

6.4 Comparative questions

From the chart, it is apparent that there is an element of competitiveness in the banking industry i.e. there are many banking institutions that has diverse credit card services to offer to there customers. From the chart above, 74% of the respondents indicated that at least they had ever switched from one bank to Citibank in order to get better Credit Card services while 26% indicated they had not changed from any bank to Citibank implying that they could either be still customers of other financial institutions or only customers to Citibank for the past one year.

Table 5 below indicating the various reasons that have influenced the customers to shift to Citibank’s credit card services

Reason
Number
Percentage

Cheaper services
40
44.44

Accessibility
12
13.33

Peer Pressure
11
12.23

Quality Services
27
30

Total
90
100

The above table indicates the regularity of respondents shifting from a different bank to Citibank because of its credit cards facilities in the past one year. 44.44% of the respondents indicated that at least they had ever switched from one bank to Citibank because of cheaper services, 30% indicated that it was because of the quality, 13.33% gave easy accessibility as their reason of shifting while 12.23% indicated that it was because of peer pressure that Citibank’s credit cards services are friendly being user friendly. It can be deduced from the above responses that, Citibank indeed is enjoying immense market share regarding Credit Card Markets.

In comparison to Citibank’s other financial institutions who provide Credit Card competition to Citibank, 29% of the respondents indicated that Citibank Credit Cards to a very large extent influenced their choice of bank since Citibank’s Credit Cards are very useful to them. The other 25% of the respondents were of the opinion that the Credit Cards of Citibank are useful only to a large extent; 19% were of the view that the Citibank’s Credit Cards are useful to them but to a moderate extent while, 18% were of the opinion that the Credit Cards were useful to them to a smaller extent. The rest of the respondents i.e. 9% believed that the Citibank’s Credit Cards are not useful to them at all with particular regards to comparison with other financial institutions that offers Credit Cards facilities.

Table 6 indicating the extent to which promotional activities has contributed to respondents sticking to Citibank’s Credit Cards services.

Reason
Very large extent
Large extent
Moderately

Extent
Small extent
No extent
Citibank Promotions keeps the respondents informed of existing Credit Card services
32%
21%
17%
18%
12%
Citibank’s  advertisements frequently indicates to respondents the benefits of using Credit Cards services
5%
33%
29%
13%
20%

From the table above it can be noted that both the reason of Citibank’s promotion keeping the respondents informed of Citibank’s Credit Cards services and the reason of such advertisements frequently indicating to the respondents their benefits of using Citibank’s Credit Cards are of prime importance. With the former reason receiving the highest response of 32% and the later reason receiving the highest response rate of 33% it can be seen that both reasons played a major role in respondents sticking to use Citibank Credit Cards.

It is no doubt that human resource is the most important asset of any organization including Citibank. With advanced innovations such as use of Credit Cards any employee dealing with such innovations must be competent enough in order to facilitate the bank’s daily operations effectively. It can be noted from the above chart that majority of the respondents have faith in Citibank’s staff since it recorded highest points of 49%. However, 44% of the respondents rated the staff negatively; such percentage is high and the human resource department of the bank need to clearly overhaul the whole staff and forced them to reapply. Those competent can be retaken and the rest sourced outside. On the other hand, 7% of the respondents indicated that they were not sure on the competency of the staff may because it is hard to deal with them directly while utilizing Citibank’s Credit Cards services.

It is evident that Citibank have opted to utilize diversification strategy as one of its market strategies to reach to a large market share in the world. With globalization, the world has become a global village and thus there are many business opportunities that need to be utilized. 52.22% of the respondents believed that Citibank have done less with regards to diversification while 47.78% indicated that Citibank have indeed reached out to a significant market share in the banking industry

From the table above it is evident that Citibank’s Credit Cards customers are not happy with the pricing of such credit cards. We can also deduce that despite a large number of customers, Citibank ought to review its pricing system in order to attract more clients in future. 45.56% of the respondents indicated that Citibank did not price well its credit cards and therefore implying that they are not affordable to many. On the other hand 36.67% of the respondents revealed that they were indeed comfortable with pricing of credit cards implemented by Citibank when compared to other banks. The other 17.77% of the respondents felt that they were not sure about Citibank pricing when compared to other banks that offer same credit cards facilities as Citibank.

7.0 Summary, Conclusion and Recommendation
It is evident that indeed modern technology is moving ahead at an incredible momentum and most financial institutions have utilized the use of online banking particularly the use of credit cards. Globally the use of credit cards have risen since it  is associated with various advantages such as reliability, speed and most convenient means of transacting business among other notable  advantages. As a result innovation is rapidly advancing in the banking sector and the utilization of online banking particularly the concept of credit cards is just one of the banking features which of late are developing beyond any human thoughts. Further it is evident that gone are the days when customers frequently visited commercial banks to carry out their transactions; for instance the witnessing of long queues in the many banking institutions including Citibank has declined at a significant rate, a development which has made many banks to expand globally thus attaining large market share in the banking industry and at the same time meeting their objectives particularly augmenting their profitability margins

Online banking and particularly the use of credit cards is getting more and more popular with time. In fact forecasts show that the number of households that receive bills electronically as well as pay them online will augment to more than 40 million people by the end of 2006 from less than 3 million people in forecasts conducted in the year 2001 (Erdener Kaynak). Such revealing statistics therefore implies that in the next few years the feature of e-banking particularly the utilization of credit cards will become the norm of the day as it has proved that it is very essential not only for business but also for individual daily transactions.

Electronic commerce has grown very fast since the last decade. Research shows that micro payments have had positive impacts on this growth. Credit cards have proven to be an effective payment system in this sector. This payment system has various advantages in this twenty first century. One of the major advantages of credit cards is its convenience of use comparing with other payment schemes like money order. This payment system eliminates the need to carry around cash which is more risky especially when it is large sums of money. This also involves protection of purchase unlike when cash is used. Loss protection and travel are part of the many advantages of credit cards. This does not mean that this facility is perfect. Fraud is one of the disadvantages of using credit cards. This includes both the internal and external fraud. Further research and innovations should be carried out by credit card issuing companies such that the issue of fraud cases is contained. Marketing entails selling of business, mainly linking the business with its potential consumers. Therefore we can conclude that business strategy have a closer link with marketing strategy in that at one point they focus on how to improve performance of a business based on some tactics i.e. strategies. On the other hand the marketing strategy is concurrent to a well written marketing plan since it outlines how to implement the action plans chosen (Winer, 2007).

7.1 Recommendation
It is evident that there is greater need for Citibank to understand organizational behaviour in order to achieve the organizational effectiveness in the bank and much attention should be directed to people, structure, technology and the environment. Organizational effectiveness by the Citibank can only be achieved if the management is be able to incorporate good leadership, motivation, a well defined organizational structure, forming group dynamics and setting up good structures for communicating in the workplace. Citibank should also be flexible in the sense that it should be ready to cope with change without affecting its productivity especially when it intends to go international. The company should take advantage of globalization concept and engage itself in vigorous marketing strategies like the use of technology in exploring new markets within the target market. The use of on-line marketing will boost the chances of the bank to explore more new and diverse Credit Cards markets globally (McDonald, 2001).

More research and inventions should be done in line with development of models to easily detect credit card fraud as fast as possible. More research should be done by Citibank on the use of credit cards with a view to containing cases of theft. This should be done in relation to credit card numbers which criminals use to make purchases. Financial security is anything a customer of a financial institution will get worried of especially with the use of such electronic devices. This will make many people to use credit cards because potential customers actually fear fraud cases with this payment system. The jargon used by Citibank in provision of credit card services need to be simplified so that people can get to understand the terms clearly.

The current rate charged by the Citibank in order to have access to a credit card is still high that majority of potential users are locked out. I recommend that policies be put in place to ensure that Citibank allow low income earners to use it by lowering the costs. Credit card use can be of important use if it made applicable to all types of purchases and transactions which are at the moment not utilizing it. Banks including Citibank are currently dealing with the problem of fraud cases through routine checks to detect any fraudulent applications. There is scrutiny of application forms including the handwriting. There is the scrutiny of account behavior by banks and this helps determine fraud cases.

Software should be installed such as FDS TM which helps in detection of fraud cases on use of credit cards. This involves the scoring function of FDS every day. This occurs after every transaction has been posted. It should be noted that any marketing tactic should be in line with business strategies formulated. Citibank should therefore take in to account the essence of its business existence i.e. what to accomplish, how to conduct business undertakings, what products to produce (credit cards), location of the business and the target audience (Blythe, 2001)

7.2 Further Research
From this research we cannot conclude that we have discussed all the effective marketing strategies that any financial institution including can explore in order to enhance its market share and therefore future research should embark on identifying more unique inventions and those that are more suitable to the success of firms in other industries. Further research should also be directed to banking behaviour of individuals and how it influences their credit cards purchase decisions. Also this study can also be replicated in the future to test the validity and the results obtained from the findings by the researcher.

8.0 Reference

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Appendices
Appendix 1

QUESTIONNAIRES

PART A GENERAL QUESTIONS

What is your name?(optional) __________________________________________

What is your occupation? ______________________________________________

How old are you?  _______________________________________________

Please indicate your gender.

a)      Male    (    )

b)      Female (    )

For how long have you been a customer of Citibank?
a)      0-5 Years        (   )

b)      6-10 Years      (   )

c)      11-15 Years    (   )

d)     16-20 Years     (   )

e)      Over 20 Years (   )

What is your income Range per month?
a.)                200-500 Dollars

b.)                500-1000 Dollars

c.)                100-1500 Dollars

d.)               1500-2000 Dollars

e.)                Over 2000 Dollars

7.      To what extend do you agree that the following reasons made you stick to Citibank credit

card services

      Use ratings of 5=very large extent, 4=large extent, 3=moderate extent, 2=small

      Extent, 1=no extent. (Please tick one)

                                                                                        5          4          3          2          1

                                            i.            Through an advertisement                                  (     )      (     )     (     )    (     )    (     )

                                          ii.            Enquiries from Citibank outlet               (     )      (     )     (     )    (     )    (     )

                                        iii.            Recommendation by a friend/relative      (     )      (     )     (     )    (     )    (     )

                                        iv.            Promotion by Citibank sales people       (     )      (     )     (     )    (     )    (     )

PART B COMPETITIVE QUESTIONS

8.      What attracted you to use the credit cards services provided by the Citibank?

__________________________________________________________________

__________________________________________________________________

9.      How long did Citibank take to process your credit card after your application? (Tick one)

a)                   One day                      (     )

b)              One week             (     )

c)              Two Weeks          (     )

d)             One month                       (     )

10.   The statements below concern Citibank’s credit cards services. On a scale of 1-5, with 5 indicating strongly agree, 4 indicating agree, 3 indicating moderately agree, 2 indicating disagree and 1 indicating strongly disagree, please indicate by ticking, to what extent you agree or disagree on how the Citibank innovation has influenced you to utilize the current credit card services. (Tick against your choice)

 5         4          3          2          1

                    i.             The Citibank credit cards

 Depicts certain

 Lifestyle that suits me                            (     )      (     )     (     )    (     )    (     )

                      ii.         The Citibank’s credit cards

 are very attractive                                              (     )      (     )     (     )    (     )    (     )

                    iii.            The Citibank credit cards services

   represents my needs                             (     )      (     )     (     )    (     )    (     )

                    iv.            The frequency of Citibank’s

Credit card advertisements keep me

glued to my bank provider                    (     )      (     )     (     )    (     )    (     )

                      v.            The continuous Citibank

innovations informs me on

  how to take advantage of my

 credit card facilities                               (     )      (     )     (     )    (     )    (     )

     11. Have you ever switched from other bank credit cards facilities to Citibank credit card

           Services in the last one year? (Tick one)

Yes       (     )

No        (     )

     12. If yes, please indicate reasons of switching from former bank to Citibank

a)                      ………………………………………………………………

b)                      ………………………………………………………………

c)                      ………………………………………………………………

      13. To what extent do you agree that the credit cards offered to you by Citibank are very

            useful to you particularly when carrying out your day to day financial transactions

a.)    Very Large Extent (  )

b.)    Large Extent           (  )

c.)    Moderate Extent    (  )

d.)   Small extent            (  )

e.)    No Extent               (  )

14. To what extent has promotional activities carried out by Citibank contributed to you stick

to Citibank’s credit cards services. Use ratings of 5=very large extent, 4=large extent,

3=moderate extent, 2=small Extent, 1=no extent. (Please tick one)

                                                                                  5            4          3          2          1

                        i.    Citibank advertising keeps me

                informed of Credit Card services           (     )      (     )     (     )    (     )     (     )

                      ii.    Citibank’s Advertisements

  Frequently indicates to me the

                Benefits of using Credit

    Cards services                                       (     )      (     )     (     )    (     )    (     )

15. In your own opinion does Citibank’s customer care executives and other personnel

Handle your complains well

1.      Yes                (  )

2.      No                  (  )

3.      Not Sure        (  )

     16. Do you agree that Citibank has diversified well enough in the banking industry?

                                         a.) Yes                  (   )

                                         b.) No                   (   )

                                         c.) No response      (   )

     17. If your answer to the above question is no, in your opinion what should Citibank do in

Order to reach to large market share________________________________________

____________________________________________________________________

18. In your opinion what is the status of Citibank’s credit cards i.e. what does the credit cards

      Represents in the modern society?

PART C COMPARATIVE QUESTIONNAIRES

     19. In comparison with other financial institutions that offer credit cards services, do you

agree that the pricing of Citibank’s credit cards are affordable to every individual in the

Society

            a.) Yes                       (  )

            b.) No                        (  )

            c.) No Response         (  )

     20. To what extent do you agree on the following statements about the latest promotions on

      Citibank’s new credit cards, Use ratings of 5=very large Extent, 4=large Extent,

      3=moderate Extent, 2=small Extent, 1=No extent. (Please tick one)

                                                                       5            4          3          2          1

        i.    Give enough information

        about the credit card pricing in

        comparison to other competitors                       (     )      (     )     (     )    (     )    (     )

      ii.    Captures ones attention in

  comparison to other competitors                       (     )      (     )     (     )    (     )    (     )

    iii.    Have attractive advertisement features

        in comparison to other competitors       (     )      (     )     (     )    (     )    (     )

    iv.    Citibank promotional tools are more

        appealing than competitor

        advertising                                             (     )      (     )     (     )    (     )    (     )

      v.    The advertisements are simple to

        comprehend in comparison to

        other competitors’ advertisements        (     )      (     )     (     )    (     )    (     )

21. From your own experience from staff interactions, in your view do you agree that Citibank’s

      Human resources are more competent, co-operative and qualified to do their work when

      compared with other staff of other financial institutions

                        a.) Yes                        (  )

                        b.) No                         (  )

                        c.)  Not sure                (  )

THANK YOU FOR YOUR CO-OPERATION

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