Styles of cashless consumption

Abstract

Based on interpretative qualitative research into consumers' use of payment methods, this paper examines the variety of consumer motivations arising from personal and situational factors. It suggests that many consumers would prefer that the future transaction medium is not restricted to plastic cards, and that such consumers may have particular situational and personality factors that affect their behaviour and preferences. Four styles of cashless consumption are suggested: those of 'Product Enthusiasts', 'Finessers', 'Controllers' and 'Money Managers'. Each has its own behaviour pattern, distinguishable by cognitive style and involvement in the use of alternative payment methods. While banks and other financial institutions have already embarked upon the research and investment route to universal plastic cards, understanding the differences among consumers is vitally important for more effective segmentation and targeting and to ensure the development of the most appropriate marketing approaches to consumers.