Rockingham Bank Credit Card Survey of Teachers

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

11. Have you received any credit card offers in the past year? 1 Yes (CONTINUE) 2 No SKIP TO Q.17) 3 DK (SKIP TO Q.17)

12. Approximately how many credit offers have you received in the past year? ______Number of offers received

13. Have you responded to any of these offers? 1 Yes (CONTINUE) 2 No (SKIP TO Q.16) 3 DK (SKIP TO Q.17)

14. To which offer or offers did you respond? 1 Visa 2 MasterCard 3 Discover 4 American Express 5 Optima 6 AT&T Universal 7 GM 8 Ford 9 Other

15. Why did you respond [to this offer/these offers]? (ASK FOR EACH RESPONSE IN Q.12) 1 No annual fee 2 Preapproved 3 Interest rate 4 Build credit rating 5 Convenience/emergencies 6 Rebate/cash back/free offers 7 Business/corporate card 8 Gold Card 9 Credit limit 10 Travel 11 Grocery shopping 12 Wide acceptance 13 Other (SKIP TO Q.17) 16. Why didn’t you respond to any of the offers? (PROBE) 1 Interest rate too high 2 Have too many credit cards 3 Credit card balances too high 4 Credit limit 5 Interest rate confusing 6 Do not use credit cards 7 Do not need any more credit cards 8 Not preapproved/fear of being turned down 9 Other 10 DK

17. Have you closed or stopped using any credit cards in the past year? 1 Yes (CONTINUE) 2 No (SKIP TO Q.20) 3 DK (SKIP TO Q.20)

18. Which card or cards have you stopped using? 1 Visa 2 MasterCard 3 Discover 4 American Express 5 Optima 6 AT&T Universal 7 Other

19. Why have you stopped using this card? (ASK FOR EACH RESPONSE IN Q.18) 1 Interest rate 2 Annual fee 3 Own too many credit cards 4 Balance too high 5 Billing problems 6 Never used it 7 Limited acceptance 8 Consolidation of debt 9 Other

20. Would you say that your attitudes toward the use of credit cards have changed in the past year? 1 Yes (CONTINUE) 2 No (SKIP TO Q.22) 3 DK (SKIP TO Q.22)

21. (IF “YES” IN RESPONSE TO Q.20, ASK) How have your attitudes changed? (PROBE)

22. In comparison with a year ago, would you say you are using your credit cards . . . (READ LIST) 1 Less often? 2 About the same? 3 More often? 4 DK 23. In comparison with a year ago, which of the following statements is true in regard to your total credit card balances? (READ LIST) 1 They are less. 2 They are about the same. 3 They are greater. 4 DK

24. Now, I would like to find out how you feel about a particular credit card offer. We are not making this offer to you today—we are only interested in how you feel about the offer. (READ LIST OF OFFER FEATURES. RESPONDENTS WILL BE ASKED about ONE OF THE FOLLOWING SCENARIOS—100 FOR EACH SCENARIO) Preapproved Application 6.0% Intro APR 9.9% Intro APR  You receive [an application/a preapproved application] for a Limited Edition Visa card.  There is no annual fee.  It has a [9.9 /6.0] percent initial APR through March 2004.  After that, the APR will be 16.9 percent.  You can immediately transfer balances from other cards up to your credit limit—you can do this through March 2004 with no cash advance fees.  It has a credit limit of up to $5,000.

25. On a scale of 0 to 100, where 0 is not at all likely and 100 is extremely likely, how likely would you be to respond to this offer? ______Likelihood

26. What, if anything, do you particularly LIKE about this offer? (PROBE: “Anything else?”) 1 No annual fee 2 Good interest rate 3 Good offer in general 4 Features/benefits 5 Ability to transfer balances 6 Credit limit 7 Appealing offer in general 8 Advantages over other offers 9 MasterCard/Visa brand 10 Identifies you as a professional 11 Prestige of Limited Edition’s name 12 Other

27. What, if anything, do you particularly DISLIKE about this offer? (PROBE: “Anything else?”) 1 Interest rate too high 2 Don’t use credit cards 3 Interest rate confusing 4 Not competitive with current card 5 Interest rate change after March 6 No reason 7 Other 8 DK 28. Is the interest rate in the Visa credit card offer clear and understandable? 1 Yes 2 No 3 DK/NS

29. Using a scale of 1 to 10, where 1 is poor and 10 is excellent, please tell me how you would rate the following product features in the Visa credit card offer that was just described. (ROTATE TO REFLECT INTRODUCTORY PERCENTAGE RATE AND BEING PREAPPROVED/HAVING TO APPLY) ______No annual fee ______9.9/6.0 percent introductory rate through March 2004 ______16.9 percent APR after March 2004 ______Being preapproved/receiving an application ______Ability to transfer balances from other cards ______Credit limit of up to $5,000

30. Do you consider this Visa credit card offer to be better than, about the same as, or worse than… Better Same Worse DK Discover Card? 1 2 3 4 American Express Optima Card? 1 2 3 4 AT&T Universal Card? 1 2 3 4 GM or Ford Card? 1 2 3 4 Other MasterCard/Visa for teaching professionals? 1 2 3 4 Credit card you use most often? 1 2 3 4

31. (IF BETTER OR WORSE IN Q.30, ASK) Why do you feel that way? (PROBE)

32. In evaluating a credit card offer, how important are the following things to you? Please use a 1 to 10 scale, where 1 is very unimportant and 10 is very important. How important is . . . ? (READ LIST AND ROTATE) ______Being preapproved? ______Interest rate? ______Annual fee? ______Credit limit? ______Billing cycle/grace period? ______Reputation of issuer? ______Extended warranty/buyer protection? ______No charges if monthly balance is paid? ______Cash advance? ______Financing payment plan? ______24-hour service for lost or stolen cards? ______Ability to transfer balances from other cards? ______Rebates?

Finally, just a few questions to help us classify your responses.

33. (INDICATE SEX OF RESPONDENT) 1 Male 2 Female 34. Are you currently married or not married? 1 Married 2 Not married 3 RF

35. Which of the following categories includes your age? Are you . . . 1 18–24? 2 25–34? 3 35–44? 4 45–54? 5 55–64? 6 65 or over? 7 RF

36. What is the highest level of education completed by the primary wage earner in your household? 1 Less than high school graduate 2 High school graduate 3 Some college 4 College graduate 5 Any postgraduate work 6 RF

37. What is your occupation? (PROBE FOR TYPE OF BUSINESS, ETC.)

38. (IF MARRIED) What is your spouse’s occupation? (PROBE FOR TYPE OF BUSINESS, ETC.)

39. Which of the following categories includes the total annual income of all the working members of your household before taxes? 1 Under $15,000 2 $15,000–$24,999 3 $25,000–$39,999 4 $40,000–$54,999 5 $55,000–$69,999 6 $70,000 or more 7 DK 8 RF

That concludes our survey, and I would like to thank you for taking the time to assist us.

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INTERVIEWER NUMBER