Why People Pay The Way They Do: A Study of Payment Behavior in the Context of Parking

Ulrik Vadgaard Pedersen

Student thesis: Master thesis


The field of payment behavior is important in the context of parking, yet little is known about the topic. Many scholars have contributed with research regarding payment solutions in general, but for the context of parking, it is lacking. This thesis investigates what factors are important for consumers, when choosing payment solution, in the specific context of parking. Through a theoretical framework utilizing constructs from theories on consumption values, service convenience, and technology acceptance, the thesis, being a deductive study, proposes hypotheses to be empirically scrutinized. Qualitative research in the form of three parking expert interviews serves as an introduction to the context. To get qualitative empirical data, a survey inquiry with 95 respondents was carried out, focusing on the use behavior of existing payment solutions, as well as the behavioral intentions towards a new payment solution, Simplyture. The results of the survey analysis indicate that the functional value is a significant determinant for how people pay in the context of parking. This is the case for both the use of existing payment solutions, as well as the intentions to use Simplyture. Furthermore, perceived usefulness, perceived ease of use, and service convenience, are all found to be significant determinants of intentions to use Simplyture. However, this is not the case for the use behavior of the existing payment solutions, as these three constructs are not found to be significant determinants.
The findings of the thesis tell the story that price, ease of use, as well as the time and effort spent using a payment solution, are the most important factors for consumers, when choosing their payment solution, in the context of parking.
Further research could try to apply the theoretical framework and the methodological approach to an investigation, where the empirical data should be collected through user tests with the new payment solution being side by side with the existing ones. Additionally, researchers could try and apply a similar theoretical framework, to the one used in this thesis, to investigations looking into payment behavior in other contexts.

EducationsMSc in Business Administration and Information Systems, (Graduate Programme) Final Thesis
Publication date2016
Number of pages116
SupervisorsJonas Hedman