Track: Modeling and Simulation

Abstract

Credit card business is one of the biggest contributors for fee and commission income of the bank in Indonesia. Co-branded credit cards have become one of the popular strategies in the banking Industry. Digital industry in Indonesia is rapidly growing and it is making Indonesian people change their consumption behavior using the Digital Native Business (DNB) platform. COVID-19 pandemic also influences people to use and increase their spending on the DNB platform. DNB companies also do many discount events and promotions to attract people using their platform. A lot of DNB platforms make it difficult for people to decide which DNB platform to use in every transaction. This phenomenon encourages banks to collaborate with DNB companies to launch co-branding credit cards. Benefits is the one of the cores of DNB co-branded credit cards that are differentiated from other credit cards and other payment tools. This research aims to investigate whether the benefits of DNB credit cards affect the formation of attitude, co-brand equity, and its effect on continuous intention-to-use. Partial Least Square - Structural Equation Modeling (PLS - SEM) is used in this research. Data collection method in this research using Judgmental sampling of 150 DNB co-branded credit card holders in Greater Jakarta and fill the questionnaire using online form. The results showed that perceived benefit influence the formation of attitude toward co-branded credit card. Positive attitude toward co-branded credit card influenced continuous intention-to-use both direct and through co-brand equity.