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

To enable a more complete understanding of the underlying differences- the mean scores for
the items in each factor are shown in Table 7.13. It should be noted that the monetary value
available via both modes is the same.
Responses on items related to emotions show that:
� Participants who prefer debit cards consider that the debit card allows them to
feel more relaxed confident, secure and affluent than does cash
� Participants who prefer cash feel that having cash lets them feel more relaxed,
confident, secure and affluent than a debit card.
� Participants who prefer to use debit cards find using their debit card
pleasurable
� Participants who prefer cash do not find using a card pleasurable
Although a significant difference is noted in the Gift factor, the item driving this is the
different view on what should be done with a gift of $100 deposited into a debit card. Those
who prefer cash are more inclined to agree that they would use it to buy something special,
whereas those who prefer the debit card mode are less likely to spend the money on
something special. This is consistent with the views expressed by the focus participants in
this study.
Both groups have similar views in two factors (no significant difference- Mentally
Spent and Money management. The factor ‘Mentally Spent’ describes the notion that cash
in a wallet is ‘spent’ money and both groups agree that this is so. The factor ‘Money
Management’ describes how the use of the payment modes affects their money management
ability. Both groups agree that debit card use, impairs their money management ability and
that the use of cash does help to reduce spending. People who prefer to use cash also like the
sensation of holding a debit card. Both groups agree that they do not spend more when they
use cash- and the debit users demonstrate a stronger agreement.
7.6: Summary
For this study, participants knew before they engaged in the shopping task which payment
mode they would be using- thus eliminating the transaction costs as a factor in payment mode
choice. There is evidence that would allow the conclusion that there is support for
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