RDP 2015-03: The Value of Payment Instruments: Estimating Willingness to Pay and Consumer Surplus Appendix C: Credit Card Holding and Rewards Program Membership

Tai Lam and Crystal Ossolinski

March 2015 – ISSN 1448-5109 (Online)

Table C1: Results of Probit Model
Holds a credit card Member of rewards program
Coefficient Marginal effect(a) Coefficient Marginal effect(a)
Percentage points Percentage points
Age (base = 30–39 years)
18–29 years −0.58*** −19***   −0.23 −8
40–49 years 0.09 3   0.13 4
50–64 years 0.18 5   0.10 3
65+ years 0.05 2   −0.14 −5
Household income (base = 3rd quartile)
1st quartile −0.06 −2   −0.63*** −22***
2nd quartile −0.05 −2   −0.06 −2
4th quartile 0.28** 8**   0.14 5
Education (base = year 12)
Year 11 or below −0.20 −6   −0.15 −5
Trade certificate −0.17 −5   −0.47* −16*
Diploma 0.12 4   −0.03 −1
Bachelor degree or higher 0.36** 10**   0.10 3
Labour force status (base = employed)
Unemployed −0.98*** −32***   0.06 2
Not in labour force −0.52*** −16***   0.26 9
Retired −0.14 −4   0.64*** 20***
Gender (base = female)
Male 0.21** 6**   0.27** 9**
Life stage (base = couple with children)
Couple, no children −0.30* −9*   −0.06 −2
Couple, children left home −0.03 −1   0.15 5
Single, no children −0.37** −11**   −0.13 −4
Single, children −0.26 −8   0.22 7
Single, children left home −0.25 −7   0.05 2
Other −0.31* −9*   −0.03 −1
Location (base = capital city)
Regional 0.14 4   0.18 6
Preferences
Speed 0.11 3   0.02 1
To avoid charges 0.10 3   0.00 0
Greater security 0.19* 5*   0.08 3
Draw from own funds −0.41*** −12***   −0.81*** −29***
Greater privacy −0.26** −8**   0.15 5
Constant 0.65**     0.20  
Sample size 931   638
Pseudo R2 0.19   0.13
Correctly classified (per cent):
Overall 75   70
Pr(+ | y = 1) 89   82
Pr(− | y = 0) 45   50
Notes: ***, ** and * denote significance at the 1, 5 and 10 per cent level, respectively
(a) Calculated as the average of the sample, i.e. the marginal effect of a change in the categorical variable of interest is calculated for each respondent (given their characteristics) and then averaged