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

were savings oriented and lived by the ethic of deferred gratification. They would not buy
houses with large mortgages and run up huge credit card balances, but would save their
money until they could buy things outright. Gratification of their desires was deferred until
they could afford to satisfy them, and then, and only then, was it proper to buy things to
enjoy. In other words, most people lived within their immediate means and did not borrow
for purposes of increased consumption. Credit card in essence buy now and pay later
mentality stimulates increased consumption and directs individuals towards being part of
consumer culture. Belk (1988) defines consumer culture in which consumers avidly desire,
pursue consumption, and displays goods that are valued for non-utilitarian reason such as
status/power, envy protection, and pleasure seeking. Zuckerman (2000) links society of
indebtness to consumer culture. Lea et al (1995) argues that there is a wide spread view that
attitude towards debt have changed dramatically during twentieth century-from general
abhorrence of debt to acceptance of credit as part of modern consumer society. In this
environment, society reinforces one’s belief, attitudes and personal norms that overspending
and excess buying is acceptable. Schorr (1998) believes that easy credit availability
stimulates materialistic value and overspending. Social scientist (q.v. Dohrenwend et al 1992;
Kessler, 1982; Link, Lemon and Dohrenwend, 1993; Adair, 1992) have associated socioeconomic
status with mental health. The argument that credit card debt is stressful and impact
on personal wellbeing is accounted for several reasons: credit card debt is associated with
short term and long term financial difficulties; is indicative of financial hardship; since, credit
card debt is unsecured as result aggressive tactics are used by collection agencies. Research
on credit card debt, and the stress regarding debt finds that both are associated with worse
physical condition (Drentea, Salaries, and Schorr, 1998)) and mental health where anxiety
increases with the increasing ration of credit card debt to income (Drentea, 2000).
Another stream of research directs linkage between credit card usage and compulsive buying
behaviour. Cohen (2007) suggest that credit card function as a tool for consumers to fulfil
their ever evolving desire to consume more and more because credit cards allow consumers
to experience a lifestyle beyond their immediate financial means. Roberts and Jones (2001)
argues the influence of credit card use with compulsive buying can be explained by the
“weapons effects theory”. The theory states that the mere exposure to an aggressive stimulus
will lead to an aggressive behaviour. Feinberg (1986) uses weapon effect theory to explain
why people spend more using credit card. Consumers who regularly use credit card as their
main method for payment are more likely to spend more than those consumers who use other
methods of payment and tend to use it beyond their ability to pay (Park and Burns, 2005).
Several other studies O’Guinn and Faber (1989), Park and Burns (2005) have identified a
significant relationship between credit card use and compulsive buying. Roberts (1998),
Roberts and Jones (2001) and Park and Burns (2005) discovered that there is a significant
relationship between credit card use and compulsive buying among American college
students. In addition, Kaynak and Harcar (2001) indicated that as the length of time of credit
card ownership increases, so too does the positive attitudes towards them and consequently
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