Evaluation of factors affecting the choice of a credit card using binary logit model analysis: Osmaniye application

It is known that credit cards, which have many benefits for the users and the organizations that put the credit card on the market, are spreading rapidly and have a wide usage area today. Purpose of the study; to determine the factors that affect the credit card selection of individuals in Osmaniye and to calculate the effect sizes of these factors. In this context, the research reveals whether there is a significant relationship between the socio-demographic and economic factors of individuals, as well as the characteristics of the credit cards offered by the banks and the choice of credit card. The necessary data set to be used in the study is the survey data of 507 individuals who took part in the selection of credit cards in Osmaniye, where a questionnaire was applied with the help of convenience sampling method. By applying Chi-square test and factor analysis to the data set of the research, statistically significant variables were determined and the logit model estimation was performed by controlling the multicollinearity problem of these variables. The dependent variable of the study is the choice of the credit cards issued by public and private banks and consists of two categories, while the independent variables are the socio-demographic and economic factors of the individuals and the credit card characteristics of the banks. As a result of the research, it was determined that 54.6% of individuals use one credit card and 45.4% use two or more credit cards, while individuals spend more as their income level increases and they do not pay their debts on time. In addition, the marginal effect values of the variables that are significant over the logit model estimation for credit card selection were calculated and interpreted.