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

Kenneth A. Carow, Michael E Staten

Research output: Contribution to journalArticle

47 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)409-421
Number of pages13
JournalJournal of Economics and Business
Volume51
Issue number5
StatePublished - 1999
Externally publishedYes

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Purchase
Cash
Credit
Credit cards
Debit cards
Multinomial logit model
Education
Low income
Payment

Keywords

  • Credit
  • Debit
  • Payment choices

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

Debit, credit, or cash : Survey evidence on gasoline purchases. / Carow, Kenneth A.; Staten, Michael E.

In: Journal of Economics and Business, Vol. 51, No. 5, 1999, p. 409-421.

Research output: Contribution to journalArticle

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