Ethical Appraisal of Credit-Card Marketing Strategy: Measure and Antecedent Exploration of Consumer Vulnerability to Credit-Card Debt

Abstract

Faced with market saturation and intense competition, the global credit-card industry has now focused their attention to the youth market as the final untapped market segment to sustain its profitability. However, such targeting approach has been subjected to ethical scrutiny, as the normal requirements for securing a credit-card are often waived in order to procure access into the youth market. Moreover, their vulnerability means that young people are more prone towards debt-accumulation and commence a possibly worrisome future. Although policy-makers have addressed the issue by introducing credit-counselling and educational programmes, there are minimal responses from the credit-card institutions to acknowledge the detrimental effect of credit-cards on vulnerable consumers. In light of the current literary trend in creating sustainable marketing environment, this study introduces the notion of “consumer vulnerability towards credit-card debt”, indicated by “consumer’s ideology of credit-card practise”, “awareness of credit-card consequences” and “susceptibility to credit-card promotions”. By identifying the vulnerability levels of credit-card marketers’ market segments, this study hopes to help them address any power imbalance that exists between producers and consumers by providing ethical service offerings. The study also hopes to enhance consumer vulnerability and youth market literature, and help youth to conduct self-assessment regarding their credit-card use.