1

1
Christmas and its financing, utilization of
post-Xmas sale campaigns Opinion poll carried
out by Citibank a.s. in conjunction with the
Factum Invenio agency
Prague, Nov 28, 2006
2
Methodology

• Research was implemented through employment of
  the technique of a standardized, managed personal
  interview with the use of the MDA technology
  under the framework of the Factum Omnibus
  classic, mono-thematical research.
• The questioned group is a set of 998 respondents
  selected through allocation procedure, that
  represents the CRs population aged 15 to 65.
• Allocation signs sex, age, region, size of
  permanent residences location.
• Questioning was run from Nov 15 through 22, 2006

3
How much will we spend on Christmas gifts this
year?

• Prumerná cástka utracená za vánocní dárky se ve
  srovnání s lonským rokem zvyuje. Loni jsme
  prumerne utratili 4598Kc, letos plánujeme utratit
  5283Kc.

• Average amount grows with growing households
  income. Households with total gross income over
  Kc40,000 plan to spend Kc9,867.
• Women are to spend more, on average, Kc 5,605,
  while men are to spend Kc 4,923.

4
How will we pay for Xmas gifts this year?
Most frequently, people will pay in cash (87),
one third plans to take a loan to pay for the
gifts.

• Interest in borrowing in order to pay for gifts
  grows with households higher income. 47
  households with gross income over Kc40,000 plan
  to take a loan this year to pay for gifts. Every
  fifth household will use credit card.
• Willingness to take out a loan to buy gifts is
  higher y/y. As, last year, 5.2 of people
  considered a hire purchase, this year, its 6.
  Growing also is peoples interest in flexible
  manners of financing compared to classic bank
  loans. This year, of highest demand is
  overdraft (10) and credit card (8), conversely,
  demand for consumer loans declined (last year
  2, this year 0,2).

5
What additional costs do we have for Xmass?

• Two thirds of people, because of Xmas-related
  expenses (incl. Gifts) will have to curb their
  spendings either before or after Xmas. Such need
  declines with growing households income. At
  households with gross income over Kc40,000, less
  than a half of people will reduce their
  spendings. .

• Beside gifts, households will spend the most on
  groceries (Kc2,492) and beverages (Kc797 ).

6
How do we plan to use the post-Christmas sale
campaigns at stores?

• Interest in post-Christmas sales at stores is
  unchanged compared to last year. Same as last
  year, four people out of ten plan to use those
  discount campaigns. Interest grows with growing
  income of households. At households with total
  gross income in excess of Kc40,000, the sale
  campaigns will be used by almost every other
  person.
• Women more frequently use the sale campaigns
  (46) while men 28.
• Most frequently given reason for not using the
  sale campaigns this year is the lack of money.
  Such reason was stated by 38 of those who dont
  plan to use the discounts this year. At
  households with gross income in excess of
  Kc40,000, the lack of money is the reason given
  by 17 only.

7
Which merchandise will we buy at sale campaigns
held by storeowners?

• Seven out of ten people are using post-Xmas sale
  campaigns to buy clothing. As the second ranks
  purchasing of footwear (43), followed by sport
  equipment (21).
• More than one third of people (37) buy home
  equipment or household utensils their interest
  in such items grows with increasing income.
• Household merchandise is bought by every second
  household with total gross income in excess of
  Kc40,000.

8
How much do we plan to spend this year on
merchandise bought under storeowners sale
campaigns?

• Most people, 57, are planning to spend from
  Kc1,000 to Kc5,000 at sale campaigns, almost one
  fifth assumes to spend more than Kc5,000.

9
Summary ....

• Total average amount that is to be spent this
  year by average 4-member family (parents 2
  kids) in connection with Christmas is Kc14,336
  this amount grows with the households growing
  income. Households (4-member family) with total
  gross income of over Kc40,000 will this year
  spend in connection with Christmas Kc25,560 on
  average.
• Two thirds of people, because of Xmas-related
  purchases (incl. gifts), will have to limit their
  spending either before or after Christmas. Such
  need to limit spending declines with growing
  households income. In households with gross
  income over Kc40,000, less than one half of
  people will limit their spendings.
• Peoples willingness to get indebted in order to
  buy Christmas presents is on the rise this year,
  one third of people is planning to buy the gifts
  this way.
• Interest in borrowing money to buy gifts grows in
  line with the households increasing income.
  Almost every second household with gross income
  in excess of Kc40,000 is planning to borrow money
  to buy presents this year. Most frequently, they
  will use a credit card.
• Despite growing interest in flexible manners of
  financing ones vacation, this year people will
  most frequently pay for their Xmas gifts in cash
  money (87).
• Compared to last year, peoples interest in
  post-Xmas sale campaigns at stores remains
  intact. Same as last year, also this year 4 out
  of 10 people plan to use the post-Xmas store
  sales. Interest in such sales grows in line with
  households growing income. In households with
  total gross income in excess of Kc40,000, every
  second person will use the storeowners sale
  campaigns.
• Most frequently cited reason why people will not
  use post-Xmas sale campaigns is the lack of
  money. This reason was stated by 38 of those who
  do not plan to use the sales. In households with
  gross income in excess of Kc40,000, the lack of
  money as a reason wass stated by 17 of people
  only.

10
More efficient manner how to finance Christmas?
CREDIT CARD!

• Why to finance your Xmas purchases by credit
  card?
• Immediate availability of ready cash - no need
  for protracted saving or, applying for a loan
• Benefit of no-interest period contrary to C/A
  overdraft or loan
• Flexibility as opposed to hire purchase, I can
  repay my debt when I please, I can determine
  myself the amount of my repayments
• Independence theres no need to limit ones
  spending either before or after Christmas, I can
  keep up my living standard that I am used to
• Sound financial planning the option to save
  money due to purchasing merchandise during
  post-Xmas storeowners sale campaings, when up to
  70 discounts are offered
• .....and something extra the option to receive
  discounts upon paying by your card, earning your
  bonus points, cash-back, etc.

11
Advantages of Citibank credit cards

• Longest no-interest period - 55 days
• Global acceptance
• Highest level of security available in the
  market
• Cardholders photo and signature imprinted on the
  cards front side
• Regular monitoring of the transactions made
• Immediate assumption of liability by the Bank
  upon the filing of theft/loss report
• Fee-free stoplisting and issue of replacement
  card upon theft/loss
• Optional setup of direct debit request for
  minimum repayment amount or, for 100 of the
  outstanding amount
• Widest selection of insurance coverage
• Life insurance
• Hospitalization insurance
• Insurance against the cards misuse
• Travel insurance
• Unique supplementary services
• Cash on Phone
• Installment Purchase
• Up to 3 supplementary cards for your loved ones
• 24-hour monitoring capability via Internet or
  CitiPhone
• On-line shopping on the Intyernet

12
Financing your Christmas with Citibank credit card
Selected manners of financing Christmas -
Comparison
13
Enhanced benefits for Citibank Gold credit card
holders

• Holders of Citibank GOLD credit cards can newly
  (from December) enjoy a truly unique program
  called Privilege Guide a guide for the
  discriminating clients".
• The program offers attractive discounts ranging
  from 5 20 available from selected fine
  stores/merchandisers from all over the Czech
  Republic.
• Discounts upon purchasing goods or services are
  available from almost 80 stores/merchandisers.
  (For full list of the Program partners go to
  www.citibank.cz)

• Discounts are available in the following lines
  of merchandise
• luxurious consumer products (Bang Olufsen,
  Nokia Gallery)
• gastronomy (Bellevue, Mlýnec, V Zátií,
  Ambiente, VinoDiVino...)
• travel and accommodation (CK Marco Polo, Hotel
  InterContinental...)
• fashion brands (Versace, Salvatore Ferragamo,
  DolceGabbana...)
• jewelry (Carollinum, Frey Wille...)
• sport and equipment (Holmes Place, Golf Plus,
  4Ski.Cz...)
• beauty parlors and hairdressing services (Salon
  La Fayette, Weekend Brno...)
• automobiles (Auto Exner, Jauguar Moravia...)