Int. J. of Electronic Finance   »   2010 Vol.4, No.4



Title: Credit crunch and loan acquisition concerns in a recessional economy: an empirical study


Author: Alan D. Smith


Address: Department of Management and Marketing, Robert Morris University, Pittsburgh, PA 15219-3099, USA


Abstract: The first part of the paper explains the following notions: what a credit crunch is, causes of the credit crunch, current social issues related to the credit crunch, and effects that the credit crunch has had on the US economy. The second part entails the analysis of hypotheses and data-reduction techniques regarding the credit crunch. The effects of credit crunch are also numerous and generally include consumer insolvency, change in purchasing patterns, decreased reliance on credit, to name a few impacts as measured in this study. It was inferred from the hypothesis-testing process that consumer spending was negatively affected by stricter credit standards imposed by lending institutions during the credit crunch and that the number of purchases made by consumers with their credit cards decreases while those made with cash increased during the same time period.


Keywords: business strategies; credit crunch; economic recession; customer behaviour; CRM; customer relationship management; recessional economies; loan acquisitions; social issues; USA; United States; data reduction; consumer insolvency; purchasing patterns; credit standards; lending; purchases; credit cards; banks; electronic finance; e-finance; banking.


DOI: 10.1504/IJEF.2010.035727


Int. J. of Electronic Finance, 2010 Vol.4, No.4, pp.297 - 322


Available online: 03 Oct 2010



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