Consumer Credit Services and Value Creation by the Lifestyle Activities of Bangladeshi Consumers

Abstract

As middle class and fixed income group in Bangladesh are not solvent
enough to pay the price of an essential product (TV, fridge etc.) at a time from their
savings. They need consumer credit to buy these products for creating value by
doing their lifestyle activities. The study provides an overview of developments in the
Bangladesh banking sector with a focus on marketing of consumer credit services in
Bangladesh. The purpose of the study is to describe the marketing of consumer
credit services with the focus on value creation by the lifestyle activities of
consumers of Bangladesh. Both the qualitative and the quantitative research have
been conducted for this study. 576 respondents in a survey were asked to rate the
importance of 15 lifestyle activities variables related to consumer credit. These data
were tested via factor analysis (the principal components method with varimax
rotation) by using SPSS program. The results show that people borrow money to buy
household goods for creating value by doing their work, entertainment activities and
social activities. The thesis will make contribution to our understanding that people
need consumer credit for buying household goods to create value by their lifestyle
activities.