Being a traditional emergency credit for the poorer members of society for a long time, most people thought that POS credits were ‘unsolid’ and thus did not use it. Nowadays, this situation has changed for a variety of reasons and several authors have under-taken research on the subject in general or from a retailer’s perspective.
This piece of work focuses on the consumer’s perspective of POS credits and shows that several factors, such as age, discretionary income and social position determine a person’s perception and usage pattern of the POS credit.
In order to identify these relationships the author has undertaken primary and secon-dary research. The knowledge of authors who have previously written on the subject has been used to design a questionnaire that allows for a considerable analysis of the above mentioned relationships.
For primary research 100 anonymous people have been questioned in a shopping cen-tre in Heidelberg, Germany using an interview administered quantitative questionnaire.
Most of the results are in line with the findings of other authors. However, primary re-search shows that society as a whole still believes that a POS credit is an emergency credit and that most people’s perception of the credit is not as favourable as it is often assumed. Moreover, specific reasons for a positive or negative perception are strongly related to a person’s age rather than to social position.
Most of users of this financing tool seem to use it for acquiring non-necessary prestig-ious items. The estimated price of the item rises with the person’s age and income.
Main motives for using the credit instead of a bank loan could not be identified due to the sample’s size. However, primary research implies that using POS credits might often be subject to previous friends’ experience.
Table of Contents
1. Introduction
1.1 Credit and consumer society
1.2 Definitions
1.2.1 Consumer credit
1.2.2 POS Credit
1.3 Research objectives
1.4 Method
1.5 Discussion
2. Literature review
2.1 The history of POS credits
2.2 Usage and perception of POS credits over time
2.3 Credit and consumer society
2.3.1 The consumers’ perspective
2.3.2 Value shifts in society
2.4 Reasons for the use of POS credits instead of a bank loan
2.4.1 Discretionary income
2.4.2 Convenience
2.4.3 Solvency investigation
2.4.4 Psychological barriers
2.5 Social position
2.6 Consumer segmentation
2.6.1 Opaschowski’s consumer segmentation
2.6.2 Sinus milieus
3. Methodology
3.1 Quantitative questionnaire
3.1.1 Section A
3.1.2 Section B
3.3.2 Section C
3.2 Data collection process
3.3 The sample
3.4 Justification of the method
3.5 Limitations
4. Summary of the findings
4.1 The subject of POS credits in connection with a person’s age
4.1.1 General perception
4.1.2 Approval of positive POS characteristics
4.1.3 Approval of negative POS credit characteristics
4.1.4 Likeliness to use a POS credit in the future
4.1.5 Reasoning for not having used a POS credit to present
4.1.6 POS credit users
4.2 Attitudes on POS credits in connection with social position
4.2.1 General attitude on POS credits
4.2.2 Approval of positive POS credit characteristics among people of different social positions
4.2.3 Approval of negative POS credit characteristics among people of different social position
4.2.4 Likeliness to use a POS credit in the future
4.2.5 Reasons for not having used a POS credit to present
4.2.6 POS credit users
4.3 General credit usage
4.4 Credit cost estimation in relation to discretionary income
5. Discussion of the findings
5.1 The influence of a person’s age on POS credit perception
5.1.2 Age in relation to the likeliness to use a POS credit in the future
5.1.3 POS credit usage within different age groups
5.1.4 Motives
5.2 The influence of social position
5.2.1 The influence of social position on POS credit perception
5.2.2 Social position and the likeliness of future POS credit usage
5.2.3 The relationship between social position and POS credit usage
5.2.4 Motives
6. Conclusion
6.1 Limitations
6.2 Recommendation
Objectives and Research Themes
This work examines consumer credit at the point of sale (POS) from the perspective of the individual, aiming to determine how demographic factors, specifically age and social position, correlate with credit perception, usage patterns, and motivation. The research investigates whether historical perceptions of such credit as an "emergency" tool persist or have shifted due to broader socio-economic changes.
- Analysis of age-related attitudes and the likeliness of future POS credit adoption.
- Evaluation of how social class, measured via the Hollingshead Index, influences consumer credit behavior.
- Investigation of motives for choosing POS credits over traditional bank loans.
- Exploration of discretionary income's role in the demand for financed durables.
Excerpt from the Book
1.1 Credit and consumer society
Consumer credits are an important financing tool within modern consumer society (Burton, 2007: 26), which is characterized by the change from seller to buyer markets and enhanced materialist wealth among wide parts of society (Weber in Hamm-Beckmann, 2000: 78). Those consumption credits allow for smoother consumption patterns and have often been associated with economic welfare and progress (Bertola et al., 2006: 1). Many people who do not possess enough money to purchase durables with own funding profit from credit that allows for an immediate purchase. As usage of the good occurs at a much earlier stage than it would, if savings were used for the purchase, the buyer benefits from immediate possession and consumption.
The oldest form of an organized consumer credit is the credit at the point of sale, which has been established within retail business during the 18th century (Weber, 1994: 43; Burton, 2007: 14) mainly due to the fact that many people were too poor to pay for daily expenses, such as food or household items, at once (Burton, 2007: 34). Moreover, those poorer persons of society did not have access to the formal banking system (Burton, 2007: 35) and thus needed different, less bureaucratic sources of credit, i.e. corner shops, where daily (grocery) shopping was made (Burton: 2007:18). Those early POS credits have been rejected by more affluent persons, who often believed that consumer credit was „unsolid‟ or „exclusively for the poor‟ (Weber, 1994: 23).
Summary of Chapters
1. Introduction: Defines POS credit and consumer society, establishes the research objectives regarding consumer perception, and outlines the methodological framework.
2. Literature review: Analyzes historical and sociological perspectives on consumer credit, including the shift from "emergency credit" for the poor to a broader financial tool, and examines consumer segmentation models.
3. Methodology: Describes the design and execution of a quantitative, interviewer-administered questionnaire conducted in Heidelberg, focusing on demographic classification (age, income, social position).
4. Summary of the findings: Presents the raw data regarding how age and social position influence credit perception, purchase motives, and the likeliness of future credit usage.
5. Discussion of the findings: Interprets the statistical results, relating them back to existing consumer behavior theories and addressing the observed influence of demographic variables on credit patterns.
6. Conclusion: Summarizes the key insights, noting that age has a more significant impact than social position on credit perception, and offers suggestions for future academic exploration.
Keywords
Point of Sale Credit, POS Credit, Consumer Credit, Consumer Society, Discretionary Income, Social Position, Hollingshead Index, Consumer Behavior, Financing Tools, Hedonistic Lifestyle, Credit Perception, Market Segmentation, Durables, Emergency Credit, Debt.
Frequently Asked Questions
What is the primary focus of this research?
This work focuses on the consumer perspective regarding POS credits, specifically analyzing how demographic factors like age, discretionary income, and social standing influence the perception and utilization of these financing tools.
What are the central themes of the study?
The central themes include the history of credit, the impact of value shifts in society toward hedonistic consumption, the convenience versus cost trade-off of POS credit, and the influence of social networks on financial decision-making.
What is the main research objective?
The main objective is to investigate the current perception and actual usage patterns of POS credits to determine if they are still viewed as "emergency" credit or if broader social shifts have normalized them for non-essential prestige consumption.
Which methodology was employed for the research?
The author utilized a combination of secondary research from existing literature and primary research through a structured, quantitative, interviewer-administered questionnaire given to 100 individuals in Heidelberg.
What does the main body cover?
The main body provides a detailed review of literature regarding consumer society, explains the methodology of data collection, summarizes empirical findings regarding age and social status, and discusses these findings in the context of established consumption theories.
Which keywords best characterize this work?
Key terms include POS Credit, consumer society, discretionary income, social position, credit perception, and consumer behavior segmentation.
How does the age of the consumer influence their perception of POS credit?
The findings suggest that younger consumers (18-25) are more likely to have a mixed or favorable view due to inexperience, while older generations tend to view POS credits more critically and conservatively.
What role does social position play in credit usage?
The research indicates that upper-middle class individuals are generally more open to using POS credits for consumption-related lifestyle goals, whereas middle-class individuals are often more traditional and averse to such financing.
Are POS credits considered "emergency" credit in this study?
While historically treated as such, the study reveals that while many still view them as emergency tools, there is a clear trend among specific groups to use them for non-essential prestige items, contradicting the notion that they are strictly for those in financial distress.
- Quote paper
- Vera Metzen (Author), 2009, Point of sale credits from a consumer's perspective , Munich, GRIN Verlag, https://www.hausarbeiten.de/document/168299
