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

Churchill (1979) urges that before factor analysis is carried out, the coefficient alpha should
be computed and the items not performing should be removed to avoid meaningless factor
solution. Four corrected item-to-total correlations were identified near to zero, and these
items are candidates for deletion. The deletion of the four items in Table 6.5 increased
Cronbach alpha from 0.69 to 0.71.
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Table 6.6: Corrected Item-to-Total Correlations
Items Status
Items-to-total
correlations
I am not conscious of how much I spend when paying by cash Removed -.01
I feel unsafe and at risk if I have a lot of money in my pocket Removed .006
If I had $100 note in my wallet I would feel uneasy Removed .018
I prefer to use cash to pay for majority of my purchases Removed .035
Table 6.7: Coefficient Alpha Before Initial Item Purification
Constructs Cronbach Alpha
Positive Emotions .879
Negative Emotions ..640
Spending control .624
Behaviour .589
Liquidity .790
Gift .612
Status/pleasure .640
Overall Average .690
Table 6.8: Variance Explained and KMO & Bartlett Test
Initial Eigenvalues
Dimensions
Total % of Variance
Positive Emotions 6.532 19.793
Usage/Behaviour 2.732 8.279
Negative Emotions 2.304 6.982
Spending Control 1.873 5.676
Money as Gift 1.719 5.208
Liquidity 1.369 4.149
Status/Pleasure 1.352 4.098
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.814
Bartlett's Test of Sphericity Approx. Chi-square 2725
Df 528
Sig .000