Competition in the New Zealand Credit Card Market from the Consumer Perspective

Journal of Asia-Pacific Business, Vol. 6, No. 1, pp. 59-74, 2005

Posted: 23 Feb 2007

See all articles by Christine Chandran

Christine Chandran

Massey University - School of Economics and Finance

Claire D. Matthews

Massey University - School of Economics and Finance

David W.L. Tripe

Massey University - School of Economics and Finance

Abstract

It is argued that markets are competitive when consumers have a significant range of options, including with respect to price. Therefore the New Zealand credit card market might be considered competitive, although there is a high degree of similarity in banks' offerings.

Previous United States studies have suggested that consumers fail to distinguish between different banks' credit card offerings, which contributes to the high profitability of their credit card businesses.

This study looks at consumer awareness of the pricing of credit card services in New Zealand, and finds that it is very low, suggesting that the extent of actual effective competition in this market may be overstated.

Keywords: Credit cards, Competition, New Zealand, Banking

JEL Classification: G21, D91

Suggested Citation

Chandran, Christine and Matthews, Claire D. and Tripe, David W.L., Competition in the New Zealand Credit Card Market from the Consumer Perspective. Journal of Asia-Pacific Business, Vol. 6, No. 1, pp. 59-74, 2005, Available at SSRN: https://ssrn.com/abstract=964822

Christine Chandran

Massey University - School of Economics and Finance ( email )

Private Bag 11-222
Palmerston North, 30974
New Zealand

Claire D. Matthews (Contact Author)

Massey University - School of Economics and Finance ( email )

Private Bag 11-222
Palmerston North, 30974
New Zealand

David W.L. Tripe

Massey University - School of Economics and Finance ( email )

Private Bag 11-222
Palmerston North, 30974
New Zealand

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