| Summary: | 碩士 === 國立臺北大學 === 統計學系 === 98 === For credit card companies, how to enhance generating revenue by encouraging card holders to use credit cards and, meanwhile, to control the costs of bad debts is always a tough issue. Although raising the total revenue of credit card is companies’ most important business goal, credit card companies may not want cardholders to lose ability to discharge their debts after a large consumption. To solve the problem, credit card companies offer preferential interest rates and repayment period for cardholders to successfully resolve their debts. Consequently, credit card companies may reduce the risk of bad debts expense in the future.
The purpose of this study is to find out the factors which have impact on consumers to apply for credit card bill installment. The methodology used in this study is logistic regression. In addition, this study uses those factors found to establish logistic regression models to calculate the probability in order to help credit card companies target potential customers who would apply for credit card bill installment. This information may help credit card companies to improve marketing efficiency, lower marketing costs, and improve product profitability and market competitiveness.
This study found that customers will consider the lowest interest rates of all kinds of their loans, such as interest rate of installment and interest rate of credit card bill before they apply for credit card bill installment. This study also found that personal characteristics, such as gender and age, and consumption habits, bank records, the duration of holding a credit card, cash advance usage, and interests of credit card will also have impact on cardholders’ tendency to apply for credit card bill installment.
Logistic regression analysis can identify the factors which have impact on the application rate of credit card bill installment, and it also lowers costs of study for users. Furthermore, the response variables of logistic regression is a probability, so researchers can decide which cutoff value will be more suitable and will help to adjust their selection of target customers list. In other words, the advantages of this study are to help companies to select potential customers for marketing in order to improve the success rate of marketing and decrease marketing costs.
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