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

However there is an indication that, once the cash is spent over time memory of what has
gone has disappeared; whereas when using the card, at some point (usually when the bank
statement is checked) you get a reminder that you have spent something. At the point of
paying, there is a stronger conscious recognition (imprint) of the amount spent that appears
not so strong when the debit card is used. For example the following extract from Focus
Group Three gives an idea of the type of discussion:
So you said that you are more likely to spend more on the card than if
spending cash? (Facilitator)
P1. Yeah
P2 It’s a false sense of freedom and elbow room to spend a bit more of your
own money so that’s why it feels weird.
So with a hundred dollar cash? (Facilitator)
P1 I would restrict
P2. Definitely
P1 And it’s embarrassing having to put things back when you get to the
checkout so you have to be really careful about totalling as you go.
But with this hundred dollar debit you have access to something you might
spend (Facilitator)
P1. Yeah I just wouldn’t care I would guess it
Money Management (see Exhibit 5.7b)
Related to spending awareness is the notion of money management - as can be seen from
some of quotes in Exhibit 5. Some of the issues that pertain to money management link to
awareness - and it’s just a number on the (eftpos) screen.
Though a few participants (only in three of the focus groups) expressed sentiments that they
didn’t care where the money was coming from, they would still look for bargains. But the
overwhelming theme is that cash does help balance the budget. The following quote
represents the sentiments of the majority of the participants across the sessions:
� I also find it more uncomplicated because if you’re using say a credit card or a
debit card or smart card you run the risk of going into debit because you see
something you like and you can get it but there are repercussions later on so
with cash its really straight forward and simplistic and uncomplicated
� if I have cash I would think more about saving like think for saving or I have to
save something I have only twenty left now if I have cash but if I have EFTPOS
I don’t think about saving I just oh I will pay in my next pay.
Liquidity (see Exhibit 5.7c)
It was difficult to decide on an appropriate label for this theme. However the idea
underpinning this theme is that once money is in the wallet it is for spending- especially small
69