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 Mrs. Harshala Shelar
Research Scholar Research Scholar
Rajendra Mane College of Engineering & Technology, Ambav 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 consumers 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 diners 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
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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 respondents 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 Particulars Response Percentage
1 Male 154 73
2 Female 56 27
Total 210 100

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 Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra
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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 Particulars Response Percentage
1 15 Years to 20 Years 10 4.8
2 21 Years to 30 Years 168 80
3 31 Years to 40 Years 23 11
4 Above 40 Years 09 4.3
Total 210 100

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 Particulars Response Percentage
1 Single 148 70.5
2 Married 62 29.5
Total 210 100

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 Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra
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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 Particulars Response Percentage
1 Debit Card 145 69
2 Credit Card 6 2.9
3 Both 59 28.1
4 No Cards 0 0
Total 210 100

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 Particulars Response Percentage
1 Yes 210 100
2 No 0 0
Total 210 100

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 Particulars Response Percentage
1 Yes 159 75.7
2 No 51 24.3
Total 210 100

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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% Respondents payment exceed the estimated budget for shopping
24.3% Respondents payment do not exceed the estimated budget for shopping
Why do you use Plastic Money (Debit/ Credit Card) for payment of shopping?
Sr. No Particulars Response Percentage
1 Fear of carrying cash 61 21.32
2 To collect rewards points 41 14.33
3 Card is convenient for carrying & for payment 150 52.44
4 Wear & tear of paper money 34 11.88
Total 286 100

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 Particulars Response Percentage
1 Online Shopping 153 57.08
2 Offline Shopping 115 42.91
Total 268 100

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 Increasing the Trend of Shopping Because of Plastic Money in Western Maharashtra
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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] 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
[2] 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
[3] 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
[4] 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
[5] Bansi Patel and Urvi Amin (2012), Plastic Money: Roadmay Towards Cash Less Society, Paripex Indian journal Of Research, Vol. 1, No. 11, ISSN-
2250-1991. https://www.worldwidejournals.com/paripex/file.php?val=November_2012_1353431118_c1e2b_34.pdf

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