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

7.4.2: Proposition Two Evaluation
To address the question: Does the payment mode used affect the volume, value,
brands/products purchased in a single transaction? If so How? This section provides a
summary of the findings that relate to Propositions Two: Where consumers access their
personal savings to pay for transactions, the mode of payment selected will affect their
purchase behaviour is evaluated by examining specific purchase conditions that are
described in seven ancillary propositions
Examination of proposition 2a: The overall mean amount spent in a single transaction
will be less via cash than via a debit card payment mode.
Table 7.6 shows the overall descriptive statistics and One-Way ANOVA of payment mode
effect on total amount spent.
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Table 7.6: Average Spend by Payment Mode
N=118 N Mean Spend Std. Deviation Std. Error
Cash 52 $117.5 94.6 13.1
Debit 66 $144.3 95.41 11.7
Average Spend by Payment Mode df One-Way ANOVA F Sig
Between Groups 1 7.41 .007
Levene Statistic df1 df2
1 116 0.418 0.519
Levene’s test is used to assess the homogeneity of variances F= 0.418, p= 0.519 indicating
variance assumption is satisfied. On an average, cash users spend less (M=$117.5) compared
to debit card users (M=$144.3). The results from the One-Way ANOVA (Table 7.4) shows
the difference to significant F= 7.41), p=.007; so there is support for Proposition 2a.
Examination of proposition 2b: The overall mean number of products purchased in a
single transaction will be less via cash than via a debit card payment mode.
On an average, those who used cash bought less number of items (M=36) compared to the
group that used debit card (M=46). Debit card users bought 10 items more on an average
compared to cash users.