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

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141 � 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.
8.4: Methodological Contribution The development and validation of the PMP scale is a contribution to theoretical knowledge as existing scales that measure perceptions of money do not examine perceptions of payment modes. For example, existing scales measures relationship between perceptions of money and specific personal attributes such as sensation seeking, risk taking, materialism and ethics. A single attempt to link emotions to payment mode is used by Thomas et al (2010) where emotion was assessed by the use of happy-sad face scales and list of words identifying negative associations. No reliability/ validity were reported. Extant research in the area of payment mode and purchase behavior primarily gathers data via laboratory experiments, using scenario and/or questionnaire based data. A handful of field studies use supermarket panel data (Soman, 2003; Thomas et al., 2011). This study gathers actual purchase receipt from participants to examine payment mode effect on purchase behavior. Participants who provided purchase receipt in the field experiment also completes a payment mode perception scale. The questionnaire was used to examine participant’s perceptions of preferred payment modes along with purchase receipt data. 8.5: Managerial and Social Impact 142 � The findings have social and economic impacts. One, card use may lead to , increased spending and debt problems. This is especially relevant as the penetration and variety of electronic payment modes is bound to increase. There may also be a case for monitoring the use of non- cash tokens in areas such as casinos and online gambling � The study finds evidence that both cash and debit card users thought that debit card use impairs money management ability and that the use of cash mode allows tallying of expenditure in mental accounts. This finding has relevance to aging population those who grew up using cash tokens might find difficulty in personal money management. The study may also have relevance to training children (currently the tendency is to teach children budgeting and saving via the saving of the cash tokens)- more training on account management may be required.
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Cash or Card: Consumer Perceptions
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Chapter Four: Research Design and M
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List of Figures Figure 6.1 Sree Plo
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List of Tables Table 6.1. Explorato
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Acknowledgement The research idea i
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Abstract This study examines the co
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the payment mode selected impacts o
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Identifying the exact origin of anc
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1.5: Study Locus and Context The av
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compare participants normal or pref
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Chapter 2 provides a critical revie
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2.2: The Emergence of the Money Con
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commodity (bullion) and issued the
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2.5: Payment Mode and Purchase Beha
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and Belmont (1996) found that resta
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Households’ Spending’ run by th
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students (n=37) were also asked to
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enefit of consumption and the assoc
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associated with the purchase of ple
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A number of explanations for how pa
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2.6.5: Summary As this review of th
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Questions one and two are based on
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and label" events and occurrences,
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Thaler (1998) asserts that mental a
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If this is so then it is the transp
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The Chapter contends that the payme
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In this chapter, the methodology fo
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solid data, the issue of generalisa
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the experience. To do this requires
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as participants managed to link the
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4.4.2: Participant Selection There
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were initially examined via a test-
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set, in addition to the payment mod
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There are two major validity threat
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The Chapter commences by describing
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of all three projective tests. A fu
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However the negative thoughts diffe
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cold. It seems that money in the de
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thought the shoe (that was linked t
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Exhibit 5.6: Summary of findings $2
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denominations ($5, $10). On the oth
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Emotions (see Exhibit 5.7g) The mos
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� It is just when I can hear coin
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� I don’t feel that when I see
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Exhibit 5.7 (c) LIQUIDITY � if I
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Exhibit 5.8. Quotes for PMP Scale.
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82 Using cash to pay for purchases
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84 Using a debit card to pay for tr
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` 86 If I had a $20 note in my wall
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88 Chapter Six Development and Vali
Page 101 and 102: latent variable determines the obse
Page 103 and 104: oot (sqrt) was applied to normalize
Page 105 and 106: Exploratory Factor Analysis reveale
Page 107 and 108: 96 Table 6.2: Inter-Item and Item-t
Page 109 and 110: 98 Exhibit 6.5: 49 Item Scale in Pr
Page 111 and 112: 6.4.2: Pre-Test Two - Internal Cons
Page 113 and 114: The 45 items were examined to facto
Page 115 and 116: 6.4.4: Pre Test Two - Final Factor
Page 117 and 118: 6.4.6: Assessing Construct Validity
Page 119 and 120: used to measure individual construc
Page 121 and 122: 110 Exhibit 6.9: Pre-Test Items Rem
Page 123 and 124: Table 6.14: Summary of Final Result
Page 125 and 126: All dimensions (Table 6.16) show AV
Page 127 and 128: 7.1: Chapter Overview 116 Chapter S
Page 129 and 130: Four product categories of househol
Page 131 and 132: Since the use of cash and debit car
Page 133 and 134: 7.4.1.2: Control Group-Test Groups
Page 135 and 136: 7.4.2: Proposition Two Evaluation T
Page 137 and 138: 126 Table 7.8: Indulgence Food Prod
Page 139 and 140: 128 Exhibit 7.2: Proposition Two: E
Page 141 and 142: 130 Table 7.12: Comparisons of Fact
Page 143 and 144: Proposition Two that- where consume
Page 145 and 146: Table 7.13: Mean Item Score: Field
Page 147 and 148: Research Question One: Do the cogni
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Page 151: would spend it on something special
Page 155 and 156: 144 � The priming regarding the s
Page 157 and 158: it may be prudent for governments,
Page 159 and 160: Bechara, A., & Damasio, A. (2005).
Page 161 and 162: Carruthers, B., & Babb, S. (1996).
Page 163 and 164: Dohrenwend, B. P., Itzhak Levav, P.
Page 165 and 166: Garcia-Swartz, D., Hahn, W. R., & L
Page 167 and 168: Hair, J. F., Black, W. C., Babin, B
Page 169 and 170: Kassarjian, H. H. (1977). Content a
Page 171 and 172: Loix, E. Pepermans, R. Van Hove, L.
Page 173 and 174: Nielsen Research (2011, August) Nie
Page 175 and 176: Reimann & Bechara (2009) The somati
Page 177 and 178: Singh (2004) Impersonalisation of e
Page 179 and 180: Trent, J. & Smalley, G. (1992) The
Page 181 and 182: Zelizer, V. (1994). The social mean
Page 183 and 184: its usage. This in turn points out
Page 185 and 186: Adam Smith proposed that money is s
Page 187 and 188: During the 1950s, researchers began
Page 189 and 190: use of borrowed money. The introduc
Page 191 and 192: Appendix 2: Projective Tasks- Workb
Page 193 and 194: TASK THREE For this activity you wi
Page 195 and 196: TASK SIX Shopping experience using
Page 197 and 198: Activity Two Tick five traits/chara
Page 199 and 200: Appendix 3: Moderator Guide When pa
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192 Write few sentences describing
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Appendix 5: Projective Tests- Theme
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Appendix 7: Projective Tool (Debit
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