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
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: Suggested Citation