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ROCKINGHAM NATIONAL BANK VISA CARD SURVEY Company Background Rockingham National Bank, located in Chicago, is attempting to expand the market for its Visa card. It is examining certain target groups to determine its ability to penetrate the credit card market with special offers. Purpose of the Study The purpose of this research study is to evaluate how teachers in Illinois will respond to specific credit card promotional offers. Specifically, the questionnaire was designed to achieve the following objectives: · Develop a demographic, psychographic, credit card ownership, and credit card usage profile of teachers. · Determine the likelihood of teachers to respond to several different concepts for a credit card offer. · Determine which demographic, psychographic, attitudinal, credit card ownership, and credit card usage variables are the best predictors of likelihood to respond to the concept credit card offers. · Make predictions regarding the likely level of response to a credit card offer to the teacher market. · Identify those features most likely to induce teachers to respond to a credit card offer. Research Approach All data were collected by means of central location telephone interviewing from the Ameridata facility in Arlington, Texas by experienced Ameridata interviewers. The interviews were conducted with software-driven interfaces to virtually eliminate tabulation errors. All interviewing was supervised and monitored by Ameridata personnel. The geographic area covered was the state of Illinois. The sample was selected following the criteria for a simple random sample; qualified respondents were individuals licensed to teach in Illinois. A total of 400 interviews were completed. Questions 1. To what extent do the respondents agree with the statement “I attach great importance to credit cards” (1m)? Give the percentage value of respondents that “strongly agree” and “agree” with the statement. 2. What is the credit card that most respondents use most often (q3)? Please show the frequency table and bar charts. 3. What is the modal age category of the respondents? 4. Collapse responses regarding “I make only the minimum payments on my credit cards” (1e) into “agree,” “neither agree nor disagree” and “disagree.” What is the percentage of respondents that agree with the statement? What is the percentage of respondents that disagree with the statement? 5. Develop a correlation matrix of “during last 3 years my financial situation has gotten worse”(1h), “Buying things gives me a lot of pleasure” (1j), “I make only minimum payments on credit cards” (1e), and “I generally read all offers that I receive through the mail just to know what they are about” (1o). Interpret the results. 6. Run a regression to test simultaneously whether the level of importance a person attaches to credit cards (1m) are affected by “satisfaction with financial situation” (1i), “shopping is fun” (1g), household income, and gender. Please interpret the results. (Hint: To create dummy variables, recode Sex of Respondent “Male” as 0 and “Female” as 1, and recode household incomes “<=$39,999” as="" 0="" and="" “="">=$40,000” as 1). 7. (extra credit) Pick two other interesting relationships in the data to test. Ideally, pick one that requires a chi-square test and one calling for a t-test or ANOVA. 1 ROCKINGHAM BANK VISA 10_Rockingham_visa_questionnaire.pdf ROCKINGHAM BANK CREDIT CARD SURVEY OF TEACHERS (ASK TO SPEAK TO RESPONDENT LISTED ON THE SAMPLE SHEET. IF ANOTHER MEMBER OF THE HOUSEHOLD IS WILLING TO DO THE SURVEY, THANK the person for his or her WILLINGNESS, BUT EXPLAIN THAT you NEED TO COMPLETE THE INTERVIEW WITH THE LISTED RESPONDENT.) Hello, my name is ______ with Ameridata Research, an independent marketing research firm. I would like to ask you a few questions about credit card usage. First, let me assure you this is not a sales call, you will not be contacted again, and my questions will only take a few minutes of your time. (READ ONLY IF NEEDED) Let me assure you that this is not a sales call; we are only conducting research on credit card usage and are interested in your opinions about credit cards. 1. First of all, please tell me whether you strongly agree, agree, neither agree nor disagree, disagree, or strongly disagree with each of the following statements (READ LIST; ROTATE): SA A NAD D SD DK a. Money may not be everything, but it’s got a big lead over whatever is second. 5 4 3 2 1 6 b. Money can’t buy happiness. 5 4 3 2 1 6 c. It is important for me to be fashionable and chic. 5 4 3 2 1 6 d. I buy things even though I can’t afford them. 5 4 3 2 1 6 e. I make only the minimum payments on my credit cards. 5 4 3 2 1 6 f. I sometimes buy things to make myself feel better. 5 4 3 2 1 6 g. Shopping is fun. 5 4 3 2 1 6 h. During the last three years, my financial situation has gotten worse. 5 4 3 2 1 6 i. I am satisfied with my present financial situation. 5 4 3 2 1 6 j. Buying things gives me a lot of pleasure. 5 4 3 2 1 6 k. You can tell a lot about people by the credit cards they use. 5 4 3 2 1 6 l. I attach great importance to money. 5 4 3 2 1 6 m. I attach great importance to credit cards. 5 4 3 2 1 6 n. I attach great importance to material possessions. 5 4 3 2 1 6 o. I generally read all offers that I receive through the mail just to know what they are about. 5 4 3 2 1 6 2. Please tell me which of the following credit cards you carry with you. Do you carry . . . (PROBE FOR VISA OR MASTERCARD) 1 Visa? (ASK FOR NUMBER OF VISA CARDS) ______ 2 MasterCard? (ASK FOR NUMBER OF MASTERCARDS) ______ 3 Discover? 4 American Express? 5 Optima? 6 AT&T Universal? 7 GM? 8 Ford? 9 None (SKIP TO Q.11) 3. Which card do you use the most often? (PROBE FOR ONE ANSWER ONLY; IF RESPONDENT IS UNABLE TO GIVE ONLY ONE RESPONSE, TAKE THE FIRST RESPONSE GIVEN) 1 Visa 2 MasterCard 3 Discover 4 American Express 5 Optima 6 AT&T Universal 7 GM 8 Ford 9 DON’T KNOW (SKIP TO Q.11) (IF “VISA” OR “MASTERCARD” IS MENTIONED IN Q.3, ASK Q.4. OTHERWISE, SKIP TO Q.11) 4. Which bank issued this Visa/MasterCard? [MASTERCARD ISSUERS] 1 Associates National Bank 2 Chase Manhattan 3 Citibank 4 Credit union issued 5 First Bank 6 Household 7 MBNA 8 Other 9 DK [VISA ISSUERS] 1 Associates National Bank 2 Bank of America 3 Citibank 4 Credit union issued 5 First Bank 6 Household 7 MBNA 8 Other 9 DK 5. Why do you use [ANSWER FROM Q.3] most often? 1 Convenience 2 Only card owned/carried 3 Interest rate 4 Wide acceptance 5 Cash back 6 Cash rebate 7 Billing cycle/grace period 8 No annual fee 9 Issued by a local bank 10 Corporate/business card 11 Credit limit 12 Itemized bill 13 It’s a Gold Card. 14 Rebate toward automobile purchase 15 Relationship with organization sponsoring card (IF YES, “Which organization?”) 16 Other 6. What is the interest rate on the balances that you carry on the card you use most often? 1 Less than 8 percent 2 8–8.9 percent 3 9–9.9 percent 4 10–10.9 percent 5 11–11.9 percent 6 12–12.9 percent 7 13–13.9 percent 8 14–14.9 percent 9 15–15.9 percent 10 16–16.9 percent 11 17–17.9 percent 12 18–18.9 percent 13 19–19.9 percent 14 20 percent or more 7. What is your credit limit on the card you can use the most? ______ Credit limit 8. Is the card you use most often a Gold Card? 1 Yes 2 No 3 DK 9. Does the card you use most often . . . (READ LIST) Yes No DK Charge an annual fee? 1 2 3 Offer cash rebates/cash back on purchases? 1 2 3 Offer extended warranties on products you buy? 1 2 3 Offer buyer protection policies on products you buy (to replace the product if damaged, lost or stolen)? 1 2 3 Offer a photo credit card? 1 2 3 10. Besides a lower interest rate, what feature or features would a new card need to have to convince you to obtain it? 1 No annual fee 2 Preapproved 3 Rebate/cash back/free offers 4 Business/corporate card 5 Gold Card 6 High credit limit 7 Wide acceptance 8 Other