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

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� This study clarifies the pain of paying concept. Extant literature makes assumption
that paying via cash is associated with experiencing pain (Prelec and Loewenstein,
1998; Soman, 20003; Raghubir and Srivastava, 2008; and Thomas et al. 2011).
However, the basis of this assumption is weak as only Thomas et al (2011) measures
the degree of pain experienced in relation to payment mode, other only assume the
cash-pain relationship. Zellermayer (1996) examines the degree of pain-pleasure
experienced with the purchase type and the association with payment mode. He found
that pleasurable purchases are just likely to be paid by cash or other modes of
payment. This study extends Zellermayer (1996) study by identifying other emotional
association that people have with payment mode. In this study participant’s report
where the paying was routine and for small amounts they were not really conscious of
any emotion. For special purchase some felt that it was rewarding spending money.
When handing over larger amounts they did report a sense of sadness at parting with
money. What emerged from this study is that consumers are more ‘aware’ that they
are parting with something of value- whether pain, pleasure, irritation was
experienced was a function of the type purchase. The results of this study indicate
that this area of needs further study.
� This study extends and confirms bias for whole effect and denomination effect. For
example, respondents viewed it is easier to spend (five) $20 note than one $100 note-
this finding is consistent with Mishra et al (2006) bias for the whole effect. $100 note
is not be broken, it hurts breaking $100 note. The consensus is once $100 note is
broken it is easily spent, supporting Raghubir and Srivastava (2009) denomination
effect.
� Extends our knowledge base and understanding of how consumers view the tokens
used to payment for transactions. Their perceptions of payment mode are ascertained.