Customer Perception and Acceptance of Valucard. A Case Study of Professionals in Lagos State.

Abstract

This study appraises the Customer Perception and Acceptance of valucard with a view of determining the factors that affect the customer's perfection of this product , the level of usage and to proffer solutions that would enable issuing banks to position the product for optimal performance. The problem associated with a cash economy is a propelling factor that ledto this research work. Although valucard is a new finan cial product in the Nigerian market, it is fast gaining grounds as a result of the marketing strategy applied by its owners. Smartcard . Ni'g-'eria PLC and the consortium of banks involved in the marketing and in the distribution of this product. Those used for this study are professionals from different fields-Bankers, Lawyers, Teachers, Architects, Media Practitioners who are based in the city of Lagos. Being a new product, there is limited literature on valucard, but not on credit card. Data were collected through primary and secondary sources and critically analysed . The primary data were through questionnaire and personal interview with cardholders and noncard holders. The findings of the study reveal that factors such as income level, reference group/peer group status of customers affect their perception and acceptance of the product. Flaws of valucard were also highlighted and it was recommended that; sufficient Merchant outlets should be provided for easy access to valucard users. - More efforts should be put on advertisement of valucard by banks and Smartcard PLC. Use of valucard should be extended to more states in Nigeria. - Federal Govt.should step in to promote use of noncash instrument such as valucard.