Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra

IJIRST –International Journal for Innovative Research in Science & Technology| Volume 3 | Issue 08 | January 2017 ISSN (online): 2349-6010

Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra Mr. Rohit Malagi Research Scholar Rajendra Mane College of Engineering & Technology, Ambav

Mrs. Harshala Shelar Research Scholar Rajendra Mane College of Engineering & Technology, Ambav

Abstract Technology has taken over the world. The World without Technology is the world without life. Technology plays an important role in making the society a better place therefore; we cannot imagine ourselves living without it. It has been part of our life and it is one of the key ingredients to survive in a fast-phase environment. The development of new technology helps people make work easier and makes the world a better place to live in. Use of Plastic Money is one of the areas that technology has been of great use in shopping Industry. Customers are prone to save their time by using plastic money. This is the reason why the shopping industry has to focus on Plastic Money Transactions than Cash Transactions. In the study Perceptions and Attitudes were sought and were extracted using a questionnaire as research instrument. It was found that individual factors such as Gender, Age, and Marital Status had a bearing on the use of plastic money. The Research concludes that Plastic Money is more convenient for carrying & for payment.

Keywords: Plastic Money, Debit Card, Credit Card, Cash Payment _______________________________________________________________________________________________________ I.

INTRODUCTION

‘Plastic Money’ refers to the use of various types of cards like debit cards, credit cards, cash cards and pre-paid cash cards.

Usage of plastic money has come as a form of amenity to customers as it is convenient and less risky than carrying cash.

In the study, we are typically focusing only on credit cards and debit cards in order to find out the increasing trend of shopping because of Plastic Money especially in Western Maharashtra. Western Maharashtra includes districts like Kolhapur, Sangli, Satara, Pune and Solapur. Mail questionnaire had been used to collect data and to predict the consumer’s acceptance behavior towards plastic money. Finally, the outcomes are analyzed and presented II. OBJECTIVES    

To study the use and Benefits of Plastic Money for shopping To study the factors affecting and difficulties faced for the use of plastic money for shopping To study the Perceptions and attitudes of respondents towards the use of plastic money for shopping To study the satisfaction level of consumers towards plastic money III. REVIEW OF LITERATURE

Subhani in 2011 conducted a study on ‘Plastic Money/Credit Cards Charisma for Now and Then’. The study was based to find out the charisma of plastic money, its usability and affordability and its impact on its preference to use. The research found that the preference to use of plastic money/ credit card has its pros and cons with its usability and affordability. According to the consumer behaviour, plastic money is a form of conditioning and acts as a stimulus which qualifies a consumer to spend.

Loewenstein and Hafalir in 2012 conducted a study on “The Impact of Credit Cards on Spending”. The study focused on two types of customers, revolvers (who carry debt) and convenience users (who do not carry debt), and measured the impact of payment with credit card as compared with cash by an insurance company employees spending on lunch in a cafeteria. It was found that there was change in the diner’s payment medium from cash to a credit card when an incentive to pay with a credit card was given. It was then found out that credit cards do not increase spending.

According to Jeans S. Bowers (1979) longitudinal study, low income users of credit cards tend to use the cards for the installment feature rather than for service features such as convenience, safety, or identification. It has been suggested that the installment feature of credit is needed by the low income consumer to permit purchases such as automobiles, furnishings, and other consumer durables.

Mandeep Kaur and Kamalpreet Kaur(2008),in their article,“Development of Plastic Moneys Market: Past, Present and Future Scenario in Indian Banks” conclude that Indian banking sector is accepting the challenge of information technology as all the groups of bankers have now recognized it as essential requirement for their survival and growth in future Despite the strong advances in e-payments, an estimated 90 percent of personal consumption expenditure in India is still made with cash which

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Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra (IJIRST/ Volume 3 / Issue 08/ 013)

indicates the tremendous growth potential of this business. So this can be considered as mere beginning which indicates the bright future prospects of Plastic Money market in India.

P Manivannan (2013) in his research paper “Plastic Money a way for cash Less Payment System” examined that Plastic Money i.e. usage of Credit card was measured a luxury, and has become needed. These plastic money and electronic payments was and used by only higher income group. This facility extended not only to customers in urban areas or cities, but also to customers residing in rural area. However, today, with development of banking and trading activity, the fixed income group or salaried classes are also start using the plastic money and electronic payment systems and particularly Credit cards Bansi Patel and Urvi Amin (2012)in their research paper “Plastic Money : Roadmay Towards Cash LessSociety” discussed that now days in any transaction Plastic money becomes inevitable part of the transaction and with it life becomes more easy and development would take better place and along with the plastic money it becomes possible that control the money laundry and effective utilization of financial system would become possible which would also helpful for tax legislation IV. RESEARCH METHODOLOGY This study has used Empirical Research based on the survey Method. A number of issues relating to the main aspects of the study are discussed in detail with the experts, researchers and other eminent persons connected in the field, in order to get an insight into the subject prior to the collection of data. The information obtained through these has been useful in formulating a framework for the study.

Convenient sampling procedure is adopted and the sample size is 210 (Pune- 59, Kolhapur 75, Sangali 31, Satara 21, Solapur 24). Questionnaire was emailed to collect the Primary data. The questionnaire was divided into 2 sections. First section covers the Demographic Segment like Gender, Age, Income, Marital Status and location. Second Section was aimed at collecting data on the extent of use of Plastic Money.

Note:  The responses of those respondents are taken who use plastic money (i.e. Debit & Credit Cards)  The respondent’s opinion was taken from August 2016 till October 2016.

V. BENEFITS OF PLASTIC MONEY          

Anytime/Anywhere Access Using cards Avoiding tax evasion Credit Facility for emergencies Card is convenient for carrying & for payment To avail the benefits of rewards points Eliminates the need for carrying huge cash Online Payments can be done easily Risk of Loss or Theft minimized Will help in checking black money by establishing identity of the customer and data of transactions Will save cost of printing and environmental cost of deforestation VI. CAVEATS OF PLASTIC MONEY

    

Non-Acceptance at small retail uutlet hence cannot be used for all daily needs Low Value Transactions not always feasible Impulsive Purchases and promotion to consumerism Requires much security and is prone to misuse. Illegal usage, impersonation, fraud payments, etc. are on the rise as well and needs to be nipped in the bud by stringent legislation.

Transaction charges are levied.

VII. DATA ANALYSIS OF RESEARCH Gender Sr. No 1 2

Particulars Male Female Total

Response 154 56 210

Percentage 73 27 100

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Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra (IJIRST/ Volume 3 / Issue 08/ 013)

Interpretation  

In Total 210 Respondents 154 are Male Respondents i.e. 73% In Total 210 Respondents 56 are Female Respondents i.e. 27%

Age Sr. No 1 2 3 4

Particulars 15 Years to 20 Years 21 Years to 30 Years 31 Years to 40 Years Above 40 Years Total

Response 10 168 23 09 210

Percentage 4.8 80 11 4.3 100

Interpretation    

10 Respondents in age group of 15 to 20 years i.e.4.8% 168 Respondents in age group of 21 to 30 years i.e.80% 23 Respondents in age group of 31 to 40 years i.e.11% 09 Respondents in age group of above 40 years i.e.4.3% Marital Status Sr. No 1 2

Particulars Single Married Total

Response 148 62 210

Percentage 70.5 29.5 100

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Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra (IJIRST/ Volume 3 / Issue 08/ 013)

Interpretation  

In Total 210 Respondents 148 are Single Respondents i.e.70.5% In Total 210 Respondents 62 are Married Respondents i.e.29.5% Do you have Plastic Money (Debit/ Credit Card)?

Sr. No 1 2 3 4

Particulars Debit Card Credit Card Both No Cards Total

Response 145 6 59 0 210

Percentage 69 2.9 28.1 0 100

Interpretation    

69% Respondents use Debit Card 2.9% Respondents use Credit Card 28.1% Respondents use both Debit and Credit Card 0% Respondents use Plastic Money Do you use Plastic Money (Debit/ Credit Card) for shopping payment?

Sr. No 1 2

Particulars Yes No Total

Response 210 0 210

Percentage 100 0 100

Interpretation  

100% Respondents use Plastic Money 0% Respondents do not use Plastic Money Does Plastic Money (Debit/ Credit Card) payment exceed the estimated budget for shopping?

Sr. No 1 2

Particulars Yes No Total

Response 159 51 210

Percentage 75.7 24.3 100

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Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra (IJIRST/ Volume 3 / Issue 08/ 013)

Interpretation  

75.7% Respondent’s payment exceed the estimated budget for shopping 24.3% Respondent’s payment do not exceed the estimated budget for shopping Why do you use Plastic Money (Debit/ Credit Card) for payment of shopping?

Sr. No 1 2 3 4

Particulars Fear of carrying cash To collect rewards points Card is convenient for carrying & for payment Wear & tear of paper money Total

Response 61 41 150 34 286

Percentage 21.32 14.33 52.44 11.88 100

Interpretation    

21.32% Respondent use Plastic Money due to Fear of carrying cash 14.33% Respondent use Plastic Money to collect rewards points 52.44% Respondent use Plastic Money as Card is convenient for carrying & for payment 11.88% Respondent use Plastic Money for Wear & tear of paper money Where do you use your Plastic Money (Debit/ Credit Card) more for payment?

Sr. No 1 2

Particulars Online Shopping Offline Shopping Total

Response 153 115 268

Percentage 57.08 42.91 100

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Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra (IJIRST/ Volume 3 / Issue 08/ 013)

Interpretation  

57% Respondent use Plastic Money for Online Shopping 43% Respondent use Plastic Money for Offline Shopping VIII. FINDINGS

1) Men find Plastic Money more convenient compared to female. Even married are using more plastic money as compared to singles.

2) 100 % people use Plastic Moneys but People aged between 21 to 30 years are more prone to use Plastic Moneys compared to other age groups.

3) Use of plastic money exceeds the estimated budget for shopping.

4) The Best use of Plastic money is for online shopping.

IX. CONCLUSION It can be concluded that the trend of shopping is increasing because of use of Plastic Money as Plastic Money has various benefits which motivates the people especially the young generation to focus more on the Plastic Money. Plastic Money will save the cost of printing and reduce deforestation, which would help the environment as well as for Nation.

REFERENCES [1]

[2]

[3] [4] [5]

Dr. Subhani Muhammad Imtiaz, (2011). “Plastic Money/Credit Cards Charisma for Now and Then” with emphasis on affordability and preference of them by consumers because of their convenience attribute during all kind of daily transactions. European Journal of Scientific Research (Vol.62.No1,pp.123-127) http://mpra.ub.uni-muenchen.de/34739/1/MPRA_paper_34739.pdf Loewenstein George and Hafalir Elif Incekara, (2012).”The Impact of Credit Cards on spending for revolvers and convenience users” with emphasis on hardly any usage of credit card among both the groups of consumers. Carnegie Mellon University, Tepper School of Business (JELcodes:C9,D1) http://www.andrew.cmu.edu/user/incekara/CreditCardStudy%202012.09.21.pdf Mandeep Kaur and Kamalpreet Kaur (2008), “Development of Plastic Cards Market: Past, Present and Future Scenario in Indian Banks”, Asia-Pacific Business Review, Vol. IV, No.4, pp. 62-74, ISSN: 0973- 2470 http://journals.sagepub.com/doi/pdf/10.1177/097324700800400406 Manivannan P (2013), “Plastic Money a way for cash Less Payment System”, Global Research Analysis, Vol. II, No. I. https://www.worldwidejournals.com/global-journal-for-research-analysis GJRA/file.php?val=January_2013_1358499374_37069_05.pdf Bansi Patel and Urvi Amin (2012), “Plastic Money: Roadmay Towards Cash Less Society”, Paripex Indian journal Of Research, Vol. 1, No. 11, ISSN2250-1991. https://www.worldwidejournals.com/paripex/file.php?val=November_2012_1353431118_c1e2b_34.pdf

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