Research On Competition Of Credit Card Market Based On Product Differentiation

With the development of economic and the improvement of people’s living standards, more and more people prefer to use a credit card, the credit card business has also become a focus of major commercial banks competing. As one of highly profitable business of commercial banks, the credit card is playing a crucial role for the future development of commercial banks. The key competition of commercial bank credit cards is that the amount of market share, so maintaining old customers and continues to develop new customers for commercial banks to increase the competitiveness of the credit card business plays a vital role.In this paper, we use the questionnaire survey of credit card data on factors affecting consumer choice to analyze, the main purpose is: to analyze the impact of the reasons consumers choose a credit card and we focus on product differentiation scheduled non-price competition under this perspective. The significance of this study is: not only is the product differentiation competition theory applied to the credit card, but also in improving the competitiveness of commercial bank credit card business through analysis.Firstly, the theoretical literature and credit research product differentiation competition issues are summarized and finished; on the basis of the literature review, we analyze the theory of product differentiation on the credit card market competition mechanism; then, the use of poly Class analysis and factor analysis method to analyze the impact of the reasons consumers choose a credit card; and to explain the reality we use the Industrial and Commercial Bank of China and China Merchants Bank’s credit card business as examples; Finally, according to the empirical findings, we make a summary of the full text, and put forward relevant suggestions from four aspects: credit card business to enhance value-added space, provide strong feedback service, enhance product innovation and improve product promotion ability.