Effects of balance transfer offers on consumer short-term finance: evidence from credit card data

Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 3 Take-up rate for three groups

The numbers in parentheses are contract parameters listed as PR, FFL, PD, fee, where PR promotional rate, FFL fixed-for-life rate, and PD promotional duration (months). The table reports the take-up rates for three different groups after BT offer campaign (August 2005–February 2006)
Once the consumer transferred one amount of money, he will be regarded as taking up the offer. From the table, the take-up rates (in second, fourth, and sixty columns) increase when interest rates decrease, PD increases, and fee decreases. And the take-up rates of two better offers are nearly triple the take-up rates of Group (A) for good contracts with 0% PR and low FFL. Even for bad contracts (contracts A5–C5 and A6–C6) with high interest rates, the take-up rates are nearly double. For example, the take-up rate for contract C5 is 11.32%, and it is 6.18% for A5