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

The cash test group compared to the (control) credit card users spend $50.5 (on average) less
than the credit users (F= 4.91, p=0.029). The result is consistent with extant literature that
the use of credit increases spending (Hirschman, 1979; Prelec and Simester, 2001; Soman,
2001; 2003; Raghubir and Srivastava, 2008; Hafalir and Lowenstein, 2009). However the
number of items purchased across the control group payment modes were not significantly
different (F = 2.63, p=0.102). This may be due to the credit card users buying more
expensive items, or the more expensive manufacturers brands. To examine the latter, the
control (credit users) were compared to the cash user test group and there is a significant
difference (Table 7.5); credit card users do buy more manufacturers brands.
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Table 7.5: Average Spend on Manufacturer’s Brand vs. Private Label
One-Way ANOVA
Manufacturer’s Brand N Mean Std. Deviation Std. Error F Sig
Cash 52 74.0 74.7 10.3 7.55 .007
Control group (Credit users) 41 121.6 92.0 14.3
Private label
Cash 52 48.0 46.7 6.4 .120 .730
Control group (Credit users) 41 44.79 43.6 6.9
7.4.1.3: Summary of Control Group Analysis
The analysis of the control group data reveals the following:
� Though the difference is not statistically significant the credit card users in the control
did buy more items and spent more than the non-credit mode users. The lack of statistical
significance may be a function of sample size.
� That cash users spend less than both debit and credit card users
� That debit card users spend less than credit card users.
Groups Average Spend
Cash $ Debit $ Credit $
Control Group 75 130 167
Test Groups 117.5 166 N/a