金融服务贸易

The financial services cultural orientation matrixDeborah Stephenson a ,Steve Worthington b ,1,Rebekah Russell-Bennett a ,⇑a School of Advertising Marketing and Public Relations,QUT Business School,Queensland University of Technology,Brisbane,Queensland,Australia bDepartment of Marketing,Monash University,Melbourne,Australiaa r t i c l e i n f o Article history:Received 24October 2011Revised 1June 2012Accepted 3July 2012Available online 10October 2012Keywords:Financial services CultureMarketing strategies Market entrya b s t r a c tWith saturation within domestic marketplaces and increased growth opportunities overseas,many finan-cial service providers are investing in foreign markets.However,cultural attitudes towards money can present market entry challenges to financial service providers.The industry would therefore benefit from a strategic model that helps to align financial marketing mixes with the cultural dimensions of a foreign market.The Financial Services Cultural Orientation (FSCO)Matrix has therefore been designed,with three cultural dimensions identified which influence preference for financial products;preference for cash,aversion to debt and savings orientation.Based on a combination of these dimensions and their relative strength within a culture,eight different consumer segments for financial products are identified,and marketing strategies for each consumer segment are then proposed.Three cultural clusters from the GLOBE Project House et al.(2002)are used to highlight possible geographic markets for each of these con-sumer segments.In particular,this paper focuses on GLOBE’s Confucian Asia,Southern Asia and Anglo cultural clusters,as these clusters represent the most well established financial markets in the world and the fastest growing financial markets for the future.The FSCO Matrix provides the financial services industry with an innovative and practical tool for addressing cross-cultural challenges and developing successful marketing strategies for entry into foreign markets.Ó2012Australian and New Zealand Marketing Academy.Published by Elsevier Ltd.All rights reserved.1.IntroductionCorporations are facing an increasingly global business world (Javidan and House,2002)and Saturation in the domestic market and increased growth opportunities overseas are encouraging many financial service providers to invest in foreign markets.As an example following China’s entry into the World Trade Organiza-tion in 2001,major United States (US)and European banks made inroads into the Chinese credit card market as part of their efforts to strengthen their retail banking business (Mollet,2004).With domestic growth stagnating in the early 2000s,Japan Credit Bureau (JCB),the largest credit card brand in Japan,has expanded into Chi-na by forming an alliance with the Bank of China (Mollet,2004).More recently,India has also started to open up its financial sector to foreign investment.Credit Suisse recently received in-principle approval for a banking license in India,with other global players now lined up for entry,including Goldman Sachs,Morgan Stanley,ICBC and National Australia Bank (Leahy,2010;The Financial Express,2010).However,entry into a new financial market is challenging,as consumer culture influences the success or failure of specific prod-ucts (Solomon et al.,2007).Culture is the accumulation of shared meanings,rituals,norms and traditions among the members of a society and ‘‘consumption choices simply cannot be understood without considering the cultural context in which they are made:culture is the ‘lens’through which people view products’’(Solomon et al.,2007,p.468).However the whole area of consumer culture theory (CCT)is not,‘a unified,grand theory,nor does it aspire to such nomothetic claims’(Arnould and Thompson,2005).Nonethe-less these authors claim that CCT researchers share a common theoretical orientation towards the study of cultural complexity,that links their research efforts.Furthermore CCT theorists study consumption in its contexts,in order to generate new constructs and theoretical insights.These research aspirations have high-lighted that the ‘real world’for any given consumer,is neither unified,monolithic nor transparently rational.This research ‘lens’then leads to the proposition that cultural attitudes toward money,present challenges in marketing financial products,within foreign markets.In China,for example,negative perceptions of borrowing through formal channels have created a resistance to bank loans (Worthington,2010).Instead,Chinese consumers prefer to borrow through family and friends and tend to pay cash,even for ‘big ticket’items,such as cars and houses (Worthington,2010).More1441-3582/$-see front matter Ó2012Australian and New Zealand Marketing Academy.Published by Elsevier Ltd.All rights reserved./10.1016/j.ausmj.2012.07.001⇑Corresponding author.Tel.:+61731382894;fax:+61731381811.E-mail addresses:debluey@ (D.Stephenson),steve.worthington@.au (S.Worthington),Rebekah.bennett@.au (R.Russell-Bennett).1Tel.:+61399032754;fax:+61399032900.recent research(Worthington et al.,2011)into credit cards in a Chinese cultural context has focused on the attitudes of the young, affluent Chinese,to the adoption and subsequent use of credit cards.This study highlighted the notion of guilt felt in China when using credit cards instead of cash.The research also introduced the term’future money’to describe the pay later facility that a credit card offers.Another aspect favoring the continued use of cash in this culture is that it is a means of signaling wealth,which is an important status aspect in China and this was thought to influence the relatively low level of credit card use in China.The research also revealed a generational issue that was believed to impede credit card adoption.Thus whilst most of the respondents in the qualitative phase of the research,felt that they belonged to a new generation,one that is different to that of their parents and grandparents,nevertheless,the young affluent Chinese,still felt guilty using‘future money’and spending rather than saving.In-deed earlier research by Smith and Hill(2009),found that whilst there had been recent rapid socio-economic change within China, there was evidence to suggest strong value system continuity, hence the young,affluent Chinese tend to gravitate towards the familiar,whilst generally resisting that which is unfamiliar.As a basic marketing rule,financial service providers must under-stand the attitudes of their customers to better tailor their market-ing and communication programs(Kanyak and Harcar,2001). Different cultural attitudes towardfinancial products may therefore require changes to the marketing mix,such as new branding and positioning strategies,new product developments or new incentive schemes.Previous academic literature has explored the different cultural perceptions of money around the world(Al-Moharby and Khatib,2007;Bonsu,2008;Chui and Kwok,2008;Falicov,2001; Kwok and Tadesse,2006).However,few studies have addressed how the current state offinancial services within a market has been influenced by the cultural attitudes towards money.A theoretical framework has also yet to be developed that explains what impact different cultural perceptions of money have on the consumption offinancial products.This information would be useful forfinancial service providers looking to expand into new foreign markets.Financial institutions need a strategic model that helps align their product offerings with the cultural dimensions of a foreign market.Cultural dimensions are a useful way of classifying behav-ior and identifying market segments.Three cultural dimensions have been identified in this paper as relevant to the consumption offinancial ing these dimensions,this paper will pres-ent a conceptual strategy matrix forfinancial institutions,profiling eight consumer segments forfinancial products.The Financial Ser-vices Cultural Orientation(FSCO)Matrix will outline thefinancial preferences for each of the consumer segments and propose effec-tive marketing strategies for reaching them.2.Literature ReviewThe purpose of the literature review is to present a conceptual background to the FSCO Matrix that will be presented.The FSCO Matrix has been designed using three major cultural dimensions identified in the literature as having an effect on the consumption offinancial products in foreign markets.These three cultural dimensions will helpfinancial service providers to understand how cross-cultural influences can impact on their marketing strat-egies(Assael et al.,2007).Cultural clusters identified in the GLOBE Project(House et al.,2002)are used to highlight possible geo-graphic markets where each consumer segment of the FSCO Matrix may be found.Thefinancial services industry is one that has evolved over cen-turies,from the clay tokens of Ancient Mesopotamia5000years ago,to the hedge funds of today(Ferguson,2008).This long history makes thefinancial services industry a mature market that needs to continuously expand in order to grow.Historically,western financial institutions have undertaken this expansion,often through entry into eastern markets.The westernfinancial model wasfirst spread in the guise of imperialism and then through glob-alization(Ferguson,2008).However,‘‘the globalization offinance has now...blurred the old distinction between developed and emerging markets,turning China into America’s banker-the Communist creditor to the capitalist debtor’’(Ferguson,2008,p.4).The economic development of eastern countries has seen many easternfinancial institutions now entering western markets.In 2009,China Construction Bank opened itsfirst branch in the US, joining four other Chinese banks already present within this mar-ket(The Information Company,2009).The China Construction Bank’s entry into a western market demonstrates that the tradition of westernfinancial institutions entering eastern markets is fast becoming obsolete and that,whilst cultural factors may influence consumer demand,foreign market entry is no longer bound by tradition.The GLOBE Project(House et al.,2002)has been selected as a relevant theoretical framework to guide research into the cultural perceptions of money within two targeted cultural clusters.The GLOBE Project,the most recent global attempt to classify cultural differences,studied sixty-one nations and grouped them into ten cultural clusters based on their similarities along nine dimensions. GLOBE is considered by many academics to offer superior benefitsTable1Nine cultural dimensions of GLOBE Project.1.Uncertainty Avoidance The extent to which members of an organization or society strive to avoid uncertainty by reliance on social norms,rituals,and bureaucratic practices to alleviate the unpredictability of future events2.Power Distance The degree to which members of an organization or society expect and agree that power should be unequally shared.3.Collectivism I Societal Collectivism reflects the degree to which organizational and societal institutional practices encourage and rewardcollective distribution of resources and collective action.Low scores reflect individualistic emphasis and high scores reflectcollectivistic emphasis by means of laws,social programs or institutional practices.4.Collectivism II In-Group Collectivism reflects the degree to which individuals express pride,loyalty and cohesiveness in their organizations or families.5.Gender Egalitarianism The extent to which an organization or a society minimizes gender role differences and gender discrimination.6.Assertiveness The degree to which individuals in organizations or societies are assertive,confrontational,and aggressive in social relationships*7.Future Orientation The degree to which individuals in organizations or societies engage in future-oriented behaviors such as planning,investingin the future,and delaying gratification.8.Performance Orientation The extent to which an organization or society encourages and rewards group members for performance improvement and excellence.(This dimension includes the future oriented component of the dimension called Confucian Dynamism by Hofstede and Bond,1988).9.Humane Orientation The degree to which individuals in organizations or societies encourage and reward individuals for being fair,altruistic,friendly,generous,caring,and kind to others.(This dimension is similar to the dimension labeled Kind Heartedness byHofstede and Bond,1988).(House et al.,2002,p.6).*Thefirst six culture dimensions had their origins in the dimensions of culture identified by Hofstede(1980).Thefirst three scales are intended to reflect the same constructs as Hofstede’s dimensions labeled Uncertainty Avoidance,Power Distance,and Individualism.2 D.Stephenson et al./Australasian Marketing Journal21(2013)1–9to Hofstede’s(1980)cultural factors(Javidan et al.,2006;Smith, 2006).GLOBE’s cultural clusters can provide useful informationtofinancial service providers,who mayfind it less risky and more profitable to expand into similar cultures to their own,rather than those that are drastically different(Javidan and House,2002).The definitions of the nine dimensions are shown in Table1.This paper will focus on the expansion offinancial institutions in Anglo countries into foreign markets belonging to GLOBE’s Southern Asia and Confucian Asia cultural clusters(see Table2). These two clusters offer some of the greatest future growth oppor-tunities in the world for both eastern and westernfinancial service providers.The Indian credit card market,for example,is growing at an annual rate of35%(Euromonitor International,2010b).Many financial institutions from GLOBE’s Anglo cluster are therefore increasing their presence within this market.Recently the,Australian and New Zealand(ANZ)bank received approval for a banking licence in India,with other global names also lined up for entry, including Goldman Sachs,Morgan Stanley and National Australia Bank(Leahy,2010;The Financial Express,2010).The growing importance of these two cultural clusters to thefinancial services industry makes it essential to understand their cultural orientation in order to succeed within them(Gupta et al.,2002a).Henry (2010),makes the point in his review of consumer rights and responsibilities in the credit card setting,that this requires con-stant trade-offs that mirror the struggle between liberal and liber-tarian political positions,that dominate the GLOBE‘s Anglo cluster. In the Southern Asian and Confucian Asian clusters,there may well be other political positions that need to be understood and dealt with,if market entry is to be successfully achieved.3.Cultural dimensions that influence the consumption offinancial productsFrom the literature and industry evidence,three important cultural dimensions have emerged as having a significant influence on the consumption offinancial products(refer to Fig.1).These dimensions are preference for cash(Worthington,2005;Euromon-itor International,2010b),aversion to debt(Shintani,2000;Euro-monitor International,2010b)and the overall importance placed upon saving(savings orientation)(Terpstra and Sarathy,2000; Beck&Webb,2003).These three dimensions are relevant to the consumption offinancial products across all cultures and are not limited to the specific cultural explorations of this paper.Thus cultures that possess high and low levels of each dimension are shown in Table3.The literature and industry evidence for cultural perceptions of money and the impact onfinancial service offerings are shown in Table3.An analysis of this research revealed three dominant ultural dimensions relevant tofinancial services;preference for cash,aversion to debt and savings orientation.Culture can be used to explain the cross-country variation of life insurance consump-tion.Kwok and Tadesse(2006)find that individualism has a posi-tive effect on the consumption of market-based life insurance, whilst collectivist cultures are more likely to rely on the support of their social networks.The low uptake of life insurance in the Philippines,classified within GLOBE’s Southern Asia cluster,which scored high on group collectivism,further supports thesefindings (Valerio,2010;Gupta et al.,2002a).The strong collectivist culture of China has meant that many consumers often seekfinancial support through informal channels,such as family and friends, resulting in a very underdeveloped tradition of credit,with banks seen mainly as a place for saving(Worthington,2005).Other literature discusses the role of cash within cultures and the over-riding preference for this payment method over others. Worthington(1998)compares thefinancial payment preferences of Japan and the UK,finding that whilst the UK has become one of the most card-centric countries in the world,cash still remains the predominate mode for transactions in Japan.Strong prefer-ences for cash are also still prevalent within China,where consum-ers will always carry enough cash with them to avoid losing face if their credit card or debit card is rejected(Worthington,2005).The cultural perception of money in China has led to an aversion to debt and borrowing,with a strong emphasis placed on saving and living within ones means(Worthington,2005;Thompson and Worthington,2010).Negative perceptions of debt have pre-sented similar obstacles in Japan to the widespread use of credit cards(Shintani,2000).Other examples of how the perception of money impacts onfinancial product offerings is presented in Table3.3.1.Dimension1:Preference for cashOne of the predominant cultural influences affecting the con-sumption offinancial products is the preference for cash(payment through the physical forms of money,such as notes or coins)within a culture.In some cultures there is still an over-riding preference for cash over other forms of payment,which has negatively influ-enced the uptake and use of more advancedfinancial products such as credit cards(Worthington,2005;Worthington,1998;Shapiro, 1993).Preference for cash appears to be driven by a trust in this commodity,or perhaps a lack of trust in the alternatives or institu-tions(Euromonitor International,2010c;Thompson and Worthing-ton,2010;Worthington,2005).Cultures that demonstrate a high preference for cash also appear to have high uncertainty avoidance (Worthington,2005).A preference for cash may manifest a reliance on social norms,rituals,and bureaucratic practices to alleviate the unpredictability of future events(House et al.,2002).Trust in cash,and its historical presence within a culture,means that its relevance may remain strong.Many older Iranians,for example,are still attached to cash and seeing the physical transac-tion of money(Euromonitor International,2010c).Furthermore, many Chinese consumers will always carry enough cash with them to avoid losing face if their credit card or debit card is rejected (Worthington,2005).Financial service providers need to be aware of an underlying cultural preference for cash,as this may dictate whatfinancial products will be accepted in the market.3.2.Dimension2:Aversion to debtAn aversion to debt is a significant cultural factor that can affect the consumption offinancial products.Negative perceptions ofTable2GLOBE Project’s cultural clusters.Cultural cluster CountriesSouthern Asia India,Indonesia,Philippines,Malaysia,Thailand,Iran Confucian Asia Taiwan,Singapore,Hong Kong,South Korea,China,Japan Anglo England,Australia,Canada,New Zealand,Ireland,USA.Source:House et al.(2002).Preference forcashAversion todebtSavingsorientationConsumption of financial productsD.Stephenson et al./Australasian Marketing Journal21(2013)1–93debt can hinder the acceptance of products that are designed to accumulate debt,such as loans and credit cards(Gong,2003; Thompson and Worthington,2010;Shintani,2000;Worthington, 2005).Cultures that demonstrate high aversion to debt may also a strong humane orientation(House et al.,2002).Cultures that have a strong humane orientation encourage and reward individu-als for being generous,caring and kind to others(House et al., 2002).This humane orientation may therefore lead to consumers lending and borrowing from one another,rather than through for-mal channels.In India,for example,a high humane orientation,together with an overall negative perception of debt,has impacted on thefinan-cial services sector.Debt has traditionally been associated with poverty and poor money management.Many Indians have there-fore preferred to borrow through informal channels,such as family and friends,rather thanfinancial institutions(Euromonitor Inter-national,2010b).An aversion to debt can also affect the traditional use offinan-cial products(Cards International,2007;Shintani,2000;Worthing-ton,1998).For instance,the way in which credit cards are used in Japan is substantially different to how they are used in western countries.Japanese consumers tend to use their credit cards for larger,less frequent purchases and are more likely to pay off their credit card in full(Shintani,2000;Worthington,1998).Australians, however,are more likely to use their credit cards in place of cash, with70%of cardholders regularly using revolving credit(Cards International,2007;Euromonitor International,2010a).An aversion to debt can influence both the adoption offinancial products as well as the way in whichfinancial products are used. Financial service providers may therefore need to adapt their marketing strategies.For example,Japan’s low use of revolving credit may alter the way in which revenue is generated within this market(Shintani,2000;Worthington,1998).3.3.Dimension3:Savings orientationThe importance of saving within a culture impacts on the con-sumption offinancial products.An individual who has a strong preference for saving may also have a strong future orientation (House et al.,2002).Individuals in countries such as Japan and Chi-na engage in future-oriented behaviors,such as planning,investing in the future,and delaying gratification(Terpstra and Sarathy, 2000;Beck&Webb,2003).A high savings orientation is antici-pated to be related to a preference for products that encourage saving or the spending of one’s own money(Clemes et al.,2010; Worthington,2010).External motivations,such as cultural traditions and future uncertainties appear to influence an individual’s preference for saving(Worthington,2010).This is most evident in China,where the cultural pressure to climb the‘three mountains’-education, accommodation and healthcare-has led to a personal savings rate of around25%(Euromonitor International,2010e;Worthington, 2005).A strong savings orientation has led to the acceptance of debit cards and in China and in2010,there were2.1billion debit cards(also known as bankcards)in circulation,many of them based on a savings account held by a Chinese individual,in a Chinese bank.(Worthington et al.,2011).A low emphasis on saving within a culture can also impact on the adoption(or non-adoption)offinancial products.In the Philip-pines,only1in10people regularly save a sufficient amount ofTable3Cultural perceptions of money and impact onfinancial service offerings.Cultural Dimension Financial product Country Financial consumption impact ReferenceAversion to debt Credit cards China Borrowing money is perceived as a sign of being incapable to provide,a sign ofliving beyond one’s means-avoidance of formal loan options Worthington,2005; Gong,2003Aversion to debt Credit cards Japan Credit cards seen as debt and thus used for larger,less frequent purchases.Consumers more likely to pay off credit card in full,rather than use revolvingcredit.Credit cards used to withdraw cash Shintani,2000; Worthington,1998Aversion to debt Other loans China Borrowing money perceived as a sign of being incapable to provide,a sign ofliving beyond one’s means.More likely to borrow through informal channelssuch as relatives Worthington,2005; Gong,2003Aversion to debt Life insurance Various Countries high on individualism purchase more market-based life insurance,rather than relying on fellow kinsmen to providefinancial supportChui and Kwok,2008Aversion to debt Mortgages UK(Islamicsub-culture)Accumulation of interest forbidden under Islamic law.Development of newinterest-free mortgages,where rent,as opposed to interest,is paid back to thelender,in addition to monthly mortgage repayments.Casciani,2002;BBC Online,2003Aversion to debt Other loans UK(Islamicsub-culture)Development of new product offerings compliant with Islamic law that avoidaccumulation of interest(e.g.car insurance)Pigott,2009;Brignall,2008Preference for cash Credit cards China Consumers prefer to borrow through‘informal’channels either at low or nointerest rate,borrowing relies on pre-established and trustworthy relationships(Guanxi)Worthington,2010 Preference for cash Credit cards UK One of the world’s largest card-centric countries,increasing cashless society Worthington,1998Preference for cash Cash Japan Cash still the predominate mode of payment.High amount of ATMs and highwithdrawal limits reinforces consumer preference for cash Worthington,1998; Shapiro,1993Preference for cash Cash China Consumers always carry enough cash with them to avoid losing face if theircredit card or debit card is rejectedWorthington,2005Preference for cash Cash China Most common method of payment for online purchases is cash upon delivery-impacts online business transactionsBin,Chen&Sun,2003Savings culture Life insurance Japan favorable:favourable attitude towards saving and providing for the future.Oneof the largest insurance markets in the world,90%of households have lifeinsurance coverage.Policies protecting against cancer growing in popularity Terpstra and Sarathy, 2000;Beck& Webb,2003Savings culture Savings accounts China High personal savings due to uncertainty about long-term welfare.Financialproducts encouraging saving are popular(e.g.savings accounts,debit cards)Worthington,2005Savings culture Life insurance UK High uncertainty avoidance means increased planning for the future.Britishcitizens invested more than40%in life insurance from1986–1990Beck&Webb,2003Savings culture Life insurance Philippines Low uncertainty avoidance has resulted in a low uptake of life insurance as‘‘fate will provide’’Valerio,2010Savings orientation Savings accounts UK(Islamicsub-culture)Development of new product offerings compliant with Islamic law.Savingsaccount with no overdraft or credit card facility,no interest generatedBBC Online,20034 D.Stephenson et al./Australasian Marketing Journal21(2013)1–9their income(Euromonitor International,2010d).As a result,the insurance market has struggled to take off,with a2008Citibank survey revealing that32%of respondents had no insurance policy whatsoever(Euromonitor International,2010d;Valerio,2010). The low level of acceptance of insurance products in the Philip-pines has impacted on the product offerings offinancial institu-tions,such as ANZ,which has cut insurance from their portfolio in this region(ANZ,2010).These three dominant cultural dimensions therefore provide a framework to the development of the FSCO Matrix.A combination of these dimensions and their relative strength within a culture lead to a predisposition for certainfinancial products.By under-standing these cultural preferences,financial service providers will be able to introduce more relevant products to the marketplace.4.Proposed FSCO MatrixThe three cultural dimensions previously identified can be used to develop marketing strategies for entering foreignfinancial markets.The FSCO Matrix(see Table4)can used by anyfinancial service provider seeking to enter a foreign market that is culturally different from their own.The FSCO Matrix is therefore applicable to both eastern and westernfinancial institutions.Different combi-nations of the three cultural dimensions are used to develop eight consumer segments forfinancial products.The application of this matrix involves two steps;step one,diagnose current attitudes and step two,select consumer segments.5.Step1:Diagnose current attitudes towards money and profile foreign marketIn order to develop effective marketing strategies for a foreign market,first,the cultural disposition of this market must be mea-sured.To do this,a sample of consumers in the target country should be assessed for their preference to cash,aversion to debt and savings orientation.Based on their responses,individuals should be classified into one of the eight consumer segments in the FSCO matrix.Once all respondents have been assigned to a consumer segment, the organization can then identify the most attractive target mar-kets within the foreign market and conduct a survey of these poten-tial customers.Based on their scores for the three dimensions,all respondents would be assigned to a consumer segment and the proportion of consumers in each segment calculated.The most attractive segments of the Chinese market would then emerge. For example,if35%of respondents were classified as free-spirited spenders this may represent the largest segment of the Chinese market.This segment may be an attractive market if the organiza-tion has products that appeal to this market which offer competitive advantage.Financial institutions seeking to enter the Chinese mar-ket would therefore focus their marketing efforts on this segment.6.Step2:Select consumer segment and develop targeted marketing strategyThis paper proposes that each combination of cultural dimen-sions requires a different marketing strategy forfinancial products.For each of the eight consumer segments,we define the character-istics based on prior research and suggestfinancial services marketing strategies that may appeal.We then conclude the sec-tion with a summary of suggested marketing strategies for each consumer segment.A summary of the suggested marketing strate-gies for each consumer segment of the FSCO Matrix is shown in Table5.We also suggest in which of the GLOBE’s cultural cluster the majority of each consumer segment might be found.6.1.Free-spirited spendersFree-spirited spenders have a low preference for cash,a low aversion to debt and a low savings orientation,thus they like cred-it,are comfortable with debt and prefer to spend rather than save. They are therefore open to sophisticatedfinancial products that may lead them into debt,such as credit cards and personal loans. Free-spirited spenders may generally belong to GLOBE’s Anglo cul-tural cluster(refer to Table1).The GLOBE Project found this cluster to score high on power distance,meaning that a high emphasis of consumption is placed on status and authority(House et al.,2002).A free-spirited attitude towards spending and accumulating debt may be a symptom of the need to demonstrate status or an inabil-iyy to control spending.Financial products that appeal to this category include those that allow consumers to borrow money at a low interest rate,as low savings may inhibit the ability to pay back debt quickly(Euro-monitor International,2010a).Such products include debit cards with overdraft facilities and credit cards with revolving credit. However,as a result of the economic downturn,free-spirited spenders are increasingly curbing their spending and attempting to pay off their debt.Manyfinancial service providers have there-fore introduced credit cards with balance transfers that allow consumers to consolidate their debt onto one card.HSBC,Citibank and ANZ are just some of the banks that have introduced these cards,competing on low interest rates or longer interest free repayment periods(Credit Card Offers,2010).Free-spirited spend-ers are also increasingly using debit cards in place of credit cards. This has led to the introduction of debit cards with e-commerce capabilities that consumers can use in place of credit cards for online purchases.The success of the Visa debit card highlights the popularity of this new technology,with more than741million cards in worldwide circulation(Visa,2010).Financial products that will succeed amongst free-spirited spenders include those that offer the ability to consolidate debt or pay off debt quicker.Price will become an increasingly impor-tant factor to this segment,withfinancial institutions competing on interest rates or longer repayment periods.Free-spirited spend-ers may also respond to reward schemes,such as bonus shopping points and gift vouchers,in return for using their debit cards.6.2.Plastic fantasticsPlastic fantastics have a low preference for cash,low aversion to debt and a high savings orientation.They are considered to be‘fan-tastic’byfinancial service providers because they are open to mod-ernfinancial products that may generate debt(e.g.credit cards), but have thefinancial capabilities to repay what they owe,as they have being culturally conditioned to save.Plastic fantastics areTable4Financial Services Cultural Orientation Matrix.Low preference for cash High preference for cashLow aversion to debt High aversion to debt Low aversion to debt High aversion to debtLow savings orientation Free-spirited spenders Cautious optimists Optimistic laggards Back to basics High savings orientation Plastic fantastics Sensible savers Cashed-up sensible spenders Cashed-up scepticsD.Stephenson et al./Australasian Marketing Journal21(2013)1–95。