Latent class analysis on credit card usage habits

Latent variable is a variable which is not observable or directly unmeasurable like ability, attitude or proficiency. Latent variable models have been developed to examine latent variable structures via observed variables. The purpose of this study is to determine classes of customers who are working with private bank in Turkey according to their channel usage and satisfaction level of card spesifications of credit cards transactions. Customers' preferencies of banking channels are defined as an attitude. That is the reason why it is designated as latent variable. Banking channels are classified according to this attitude and its features are designated with latent class analysis. On this analysis it is observed that there are 5 latent classes in the preferences of bankig channels and 4 classes for satisfaction level of card spesifications.These classes analyzed according to their education level and ages. Keywords: Latent Class Analysis, Credit Card, Customer Satisfaction.