Cash or Card: Consumer Perceptions of Payment Modes - Scholarly ...

Exploratory Factor Analysis revealed 32 items that formed six factors (see Table 6.1-
positive emotions, negative emotions, status/pleasure, spending control, usage/behaviour,
and money as a gift). The overall scale reliability was good (Cronbach Alpha .892). Fifteen
items (see Exhibit 6.4) had loadings below 0.30 and so were eliminated (Churchill, Ford and
Walker, 1974). Sixteen were considered borderline in that they scored 0.38 and above so
because of the potential richness of these items they were retained for the next test. One item
was reworded -this process was managed via a focus group session comprising experts and
student participants. This process resulted in a 49 item scale for Pre-test Two.
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Table 6.1: Exploratory Factor Analysis –Pretest One
Positive Emotions (8) Absolute
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Exhibit 6.4: Deleted Items in Pretest One
1. I use cash to buy cheap items
2. I check my debit account balance regularly
3. Using cash to pay for purchases is pleasurable
4. Cash is old-fashioned
5. Cash (coins/notes) can be used everywhere
6. Most places will accept a debit card
7. Debit cards are modern
8. I like the restraint I feel when I use cash to pay for my purchases
9. A debit card does not restrict how much I spend
10. I think of cash/notes in my wallet as ‘problem solvers’
11. I am more likely to use my debit card and not cash to buy luxury items
12. Most places will accept cash
13. Using a debit card saves time
14. I use cash to pay for the majority of my day to day purchases
15. I think of my debit card as a ‘problem solver’
Status/pleasure (6) Absolute
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1. $100 note feel assured(Q39) .728 1. Sensation with debit card(Q30) .703
2. I would feel relaxed(Q66) .727 2. Debit card gives me higher social status(Q2) .624
3. I would feel secure(Q65) .717 3. Cash reduces pleasure of shopping(Q31) .589
4. $100 note feel confident(Q50) .714 4. Debit card sophisticated(Q4) .579
5. I would feel confident(Q63) .714 5. Debit card pleasurable to use(Q46) .566
6. $100 note feel relaxed(Q59) .693 6. Debit Card Problem solver(Q58) .563
7. $100 feel secure(Q34) .600
8. I would feel affluent(Q67) .535
Spending control (7) Usage/Behaviour (3)
1. Cash reduces spending(Q55) .646 1. I prefer to use debit card(Q57) .756
2. Cash restricts amount spending(Q33) .617 2. Use cash majority(Q56) -.747
3. Cash only restricts spending(Q17) .596 3. Debit card convenient(Q20) .428
4. $100 note reluctant to spend(Q37) .545
5. Buy unnecessary items cash(Q18) .502 Negative emotions (5)
6. Use cash look for discount(Q19) .487 1. I tend to think I have more in card(Q12) .674
7. I would be reluctant spent(Q62) .463 2. Angry checking bank statement(Q51) .645
Money as Gifts (3) 3. Overestimate money in debit card(Q21) .628
1. $100 gift in account(Q9) .808 4. $100 note in wallet consider spent(Q52) .566
2. $100 cash as gift (Q38) .801 5. Cash in wallet consider spent(Q10) .467
3. Gift card $ 100 gift(Q28) .747