Interest and reaction time analysis of credit card offers: Execute the study using a computer aided personal interview (CAPI)

Interest and reaction time analysis of credit card offers: Execute the study using a computer aided personal interview (CAPI)

The study requires that respondents be pre-recruited (eg by telephone) to participate in the 45-minute evaluation. Each respondent rates 100 different combinations of elements, arrayed according to a fractional factorial design. Each respondent sees a totally different set of combinations. The computer records the rating on a nine-point liking scale along with the number of tenths of seconds from the time the concept is presented to the customer to the time of the rating. This time is defined as the ‘processing time’. Prior to analysis, the program transforms the interest ratings to a binary rating (ratings of 1—6 on the nine- point scale are transformed to the value 0; ratings of 7—9 on the nine-point scale are transformed to the value 100).

The respondents comprised 162 credit card users, selected to represent a cross section of British credit card holders in three markets (London, Bristol and Manchester, respectively). The respondents were pre-recruited to participate in an interview that would last 45 minutes and were paid for their participation. With extended evaluations of concepts, lasting 30—45 minutes, it is important to pay the respondents in order to maintain motivation. The respondents were selected on the basis of the credit cards that they held, as well as age and income. Both men and women participated. The respondents reported to a specified location owned by the field service. At that location, and at the specified time, the respondents were re-screened to ensure that they were actually who they said they were during the initial telephone screening. After re- screening, the respondents read a short description about the goals of the project and then proceeded with the computer interview.

Each respondent evaluated a randomised 80 of the 229 elements in the study. These 80 elements were combined into the 100 concepts. The elements were arrayed by experimental design in such a fashion that each concept comprised 2—5 elements, according to a specific design structure. The key to this design is that it allows the investigation of many different concept elements, in an efficient fashion that requires relatively few combinations.

It is worth noting that these types of concept studies generate stable data, even with a respondent base as low as 40 individuals. The base size of 162 respondents sufficed for stable data for the total panel, and was sufficiently generous to uncover at least three segments, although not necessarily large enough to project their relative size in the population.

 

Representative APR 391%. Average APR for this type of loans is 391%. Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

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