Debit, credit, or cash: survey evidence on gasoline purchases

We analyzed the consumer’s payment option to use debit, general purpose credit cards, gasoline credit cards, or cash. Based on the results from a nested multinomial logit model, we found consumers are more likely to use cash when they have less education, lower incomes, are middle-aged, and own fewe...

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Bibliographic Details
Published in:Journal of economics and business 1999-09, Vol.51 (5), p.409-421
Main Authors: Carow, Kenneth A, Staten, Michael E
Format: Article
Language:English
Subjects:
Cash
Consumer spending
Credit
Credit cards
Debit
Debit cards
Economic models
Gasoline
Payment choices
Payment systems
Service introduction
Statistical analysis
Studies
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Summary:We analyzed the consumer’s payment option to use debit, general purpose credit cards, gasoline credit cards, or cash. Based on the results from a nested multinomial logit model, we found consumers are more likely to use cash when they have less education, lower incomes, are middle-aged, and own fewer credit cards. Debit and credit card users are younger, more educated, and hold more credit cards. Respondents who use their debit card are less likely to use their gasoline credit card. The results suggest that greater debit card usage will place the greatest competitive pressure on the gasoline credit card program.
ISSN:0148-6195
1879-1735
DOI:10.1016/S0148-6195(99)00016-8