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Marketing Research Project Synopsis

ON
A study on consumers perception towards plastic money

Submitted by
Sanjeet Singh

Under the supervision of


Ms. Jagriti Mishra

Submitted to

Department of fashion management studies (FMS)


National Institute Of Fashion Technology (NIFT)
(Ministry of textiles, govt. of India)
Gh-0 road, behind Infocity
Gandhinagar 382007. Gujarat
http://www.nift.ac.in
September, 2014

DECLARATION

I hereby declare that the Report of the Market Research entitled Marketing
Strategy Of Premium Denim Brands In India which is being submitted to the
National Institute of Fashion Technology,(NIFT) - Gandhinagar , in the partial
fulfilment of the requirements in the Department of Fashion Management
Studies, is a bonafide report of the work carried out by me. The material contained
in this Report has not been submitted to any University or Institution for the award
of any degree.

SANJEET SINGH
MFM Semester 1
NIFT-Gandhinagar

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ACKNOWLEDGEMENT
I take this opportunity to express my deepest and sincere gratitude to our
supervisor Ms. Jagriti Mishra, for her insightful advice, motivating suggestions,
invaluable guidance, help and support in successful completion of this project and
also for her constant encouragement and advice throughout my research work

I would like to convey my thanks to the teaching and non-teaching for their
invaluable help and support throughout the period of research. I am also grateful to
all my classmates for their help, encouragement and invaluable suggestions.

In the last, I would like to thank all the people who took put time and filled out the
questionnaire to make this a valid research.

SANJEET SINGH
MFM Semester 1
NIFT-Gandhinagar

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TABLE OF CONTENTS
CHAPTER

Pages

1.INTRODUCTION ........................................................................................................5
Background of research................................................................................5
Problem Defination......................................................................................6
2. REVIEW OF LITERATURE ......................................................................................6
Types of plastic money................................................................................8
Adoption of plastic money9
Benefits of plastic money ...10
Current statistics... 11
3. RESEARCH GAP
Objective12
4. METHODOLOGIES
Research design.13
Data source.13
Sampling Design.14
Scope of Study15
5. STATICAL ANALYSES
Response Rate...........................................................................................16
Data Analysis..16
6. RESULTS
Response Rate........................................................................
Data Analysis..
Questionnaire...
8. CONCLUSIONS
9. REFERENCES/BIBLOGRAPHY

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INTRODUCTION

CONSUMERS PERCEPTION TOWARDS PLASTIC MONEY

The word Plastic money stands for credit cards, debit cards, cash cards, atm cards
etc. Plastic money was introduced in the 1950s and is now an essential form of
ready money which reduces the risk of handlings a huge amount of cash. Plastic
money is made of plastic, is a new and easier way of paying for goods and
services, variants of plastic money, is used as substitutes for currency.
Plastic money refers to credit cards, we use them whenever we want and pay it
later. It makes it easy for us to buy things we normally could not afford, which
makes it easier to get into debit.
Plastic money is the alternative of cash or the standard money. Plastic money is
used to refer to the credit card or the debit cards that we used to make purchase in
our everyday life. Plastic money is much more convenient to carry around as we do
not have to carry a huge amount of money with you .It is also much safer to carry it
along or to travel with it as if it is stolen we can consult bank whose service we are
using and get it blocked hence saving your money from getting stolen.

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PROBLEM DEFINITION

Plastic money is a term that is used predominantly in reference to the hard plastic
cards we use every day in place of actual bank notes . Plastic money replacing the
paper money now days. The study is to understand the costumers perception
towards credit cards, debit cards and other cards, and the percentage of costumers
using plastic money in their daily life.

LITERATURE REVIEW

This report analyzed the perception of costumers towards plastic money in India.
Examines the use of debit cards and credit cards in the India. This study is carried
out to identify customer preferences and expectations from credit/debit card
services.
Globally, Information and Communication Technologies (ICTs) have increased the
usage of electronic money and changed the way payments for goods and services
are made. Card is the new cash in India as an increasing number of consumers buy
everything from train tickets to antiques with credit and/or debit cards. Similarly, in
most western countries, the volume of money transactions by means of plastic
cards is increasing. In recent years there has been an increase in the use of plastic
money in transacting systems especially in developed countries where it is driving
economies closer to cashless society as it removes the need for tangible currency
(cash) and physical payments and replacing them with cards (plastic money).

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Types of plastic money:

CREDIT CARD

DEBIT CARD

CHARGE CARD

CASH CARD

STORE CARD

Credit Card-While using a credit card there is no need to pay your hard money to
merchant instantly.That transaction maount will paid by the credit card company to
merchant and then we can pay it to credit card company next month billing period.

Debit Card-To use debit card you may have a bank account with the creadit card
company or the bank , because this transaction proceed as like the cash
transaction ,and transaction amount directly credited from card holders account and
debited to merchants account.

Charge Card-It could be used as the payment implement of a trade transaction


of product or service.Then the card holder has to set off the entire outstanding
amount fully at the end of that month eith or without the additional charge and fee.

Cash Card-A card that will allow you to withdraw money dirctly form bank via
Authorized teller Machine(ATM) but it will not allow the holder to purchase anything
directly with it.

Store Card-It is same as credit card ,is that the idea is to purchase something in
store and be billed for it at the end of the month.these card can be charged at very
high rate of intrest.

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Adoption of Plastic Money


In different countries, the introduction of electronic payment systems took place at
different points in time, and they have been adopted by consumers at different
degrees.
Individual factors such as knowledge, consumer resources such as money,
information, processing capabilities and lifestyle have an impact on the adoption of
plastic money.
It was found that lack of awareness about plastic money and its benefits, including
the perception of it being non-user friendly contribute to the non-adoption of plastic
money. Even when consumers were aware of the availability of plastic money they
were still reluctant to use plastic money. It is identified that consumers who were
more financially innovative had a higher probability of adopting plastic money than
less financially innovative consumers.
The adoption rates of ATM were higher among younger users. The costs
associated with plastic money such as cost of electronic banking activities also had
a negative effect on adoption of plastic money.
The study has been done on the adoption, usage, value attributes, bottlenecks and
factors influencing plastic money adoption. The study has been divided into several
sections which include perceptional analysis agewise, occupation-wise, gender
wise, Education wise etc.

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BENEFITS AND CHALLENGES OF USING PLASTIC MONEY

Evolution of electronic banking technologies, such as internet banking from ecommerce, has changed the nature of customer banking relationships. This has
many advantages over traditional banking delivery channels which include an
increased customer base, cost savings, mass customization, and product
innovation and offering of services regardless of geographic area and time. The use
of plastic money has released banks from the constrains of time and geographical
location and also allowed banks to cut cost on transactions, improve their delivery
and respond better to the demand of the market
However, people perceive risk as a characteristic in the use of plastic money these
include financial risk, performance risk, social risk and psychological risk.
Physical risk in the use of plastic money occurs when personal information is
accessed by a third party. Social risk refers to the older generation who may
disapprove of the use of banking due to their perception that non-plastic money is
personal and friendly. Financial risk represents the financial loss in using plastic
money as consumers may perceive that reversing a transaction, stopping a
payment after discovering a mistake or a refund may not be possible .

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CURRENT STATISTICS

The scenario has changed dramatically in the last of couple of years with the entry
of State Bank of India (SBI), a domestic major in the banking sector. More and
more nationalized banks and private sector banks like ICICI and HDFC Bank are
aggressively launching credit card with value added features.
Between 2008 and 2011, there has been a 55 per cent increase in the number of
payment cards in circulation from 3 million in 2008 to 44 million in 2011. Of this,
some 14 million are credit cards; the rest are debit cards.

INCREASED ACCEPTANCE
To encourage more customers to use plastic to pay for goods and services, more
merchants should accept this e-payment mode. The number of terminals to process
electronic payments at merchant locations grew to 150,000 in 2006. Even three
years ago, only metro establishments accepted e-payments. Today, 150 cities,
including those in tier-I and II towns, accept cards.

Consumers prefer to use cards to pay for high-value items. Electronic payments for
purchase of consumer durables grew by 56 per cent, while jewelry purchases paid
by card grew 49 per cent

A recent study conducted by American Express among cardholders across six


cities of Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad reveals that
credit cards are used the most for dining and shopping, and is also popular
for travel-related expenses such as air tickets, hotels and car rentals

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Research Gap
The purpose of this study was to examine the perception and awareness of the
consumers towards plastic money, about the psychology of the card holders and to
study the spending through cards at different levels and conditions.

Objective
The study investigates how consumers use cash or electronic (plastic) money in the
multicurrency period. The objective was to find out how easy consumers found
plastic money use to be, whether they liked using it and in particular how they
compared it to using cash.
The research intends to assess the level of adoption and use of plastic money as a
payment.

PRIMARY OBJECTIVES:To know the perception of people towards plastic money.


SECONDARY OBJECTIVES:To study the importance of plastic money in the daily life of consumers towards credit and
debit cards.

To study the benefits of debit card and credit cards.

To know the problems faced by respondents using plastic money.

To study the satisfaction level of consumers towards plastic money.

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RESEARCH METHODOLOGY

The case study has both the primary and the secondary source. It consist the data
released by Reserve Bank of India (RBI).
Online Survey Method:
The method of research for this study was a online survey. The online survey
method has advantages such as saved costs of printing and mailing. The likelihood
for coding errors is reduced, since the electronic survey has the ability to record
data at the same time respondents are answering. Having the advantage of design
flexibility and the variety of question types, allows data to be accurately captured.
Research design- The study would be include study on the consumers perception
towards plastic money. The research could also describe the acceptance of the
plastic money. The method of research for this study was a online survey. The
electronic survey has the ability to record data at the same time respondents are
answering. Having the advantage of design flexibility and the variety of question
types, allows data to be accurately captured.

Data sources- The study would be conducted used in both primary and secondary
source of data. For analyzing the data, there may be a large number of variables
which may indicate respondents perceptions toward plastic money both in case of
users and member establishments Information such as the data was collected from
secondary sources which include periodicals, published annual reports of Reserve
bank and other reports of news channels.

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Sampling design
Sampling frame- The frame selected for the study is Ahmedabad and
Gandhinagar.
Sampling process- The Non probabilistic convenience sample method is
used.
Non- probability sampling
Non-probability sampling is a sampling technique where the samples are gathered
in a process that does not give all the individuals in the population equal chances of
being selected.
Convenience sampling
In this method of sampling, the unit of the sample is recorded according to the
convenience of the researcher.
In this research, Non-probability and convenience sampling method is used.

Sampling unit: - The peoples from different variables such as age, gender,
education, monthly income and occupation were considered as a sampling
unit for the research.

Sample size:-Using the formula at the confidence level 95% and


confidence interval 10 for an infinite the sample size comes out to be 96
which can be round to 100.

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FORMULA
Z 2 * (p) * (1-p)
ss =
c2

Where:

Z = Z value (e.g. 1.96 for 95% confidence level)


p = percentage picking a choice, expressed as decimal
(.5 used for sample size needed)
c = confidence interval, expressed as decimal
(e.g., .04 = 4)

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Scope of study

This study covers all relevant aspects of a topic. Moreover, new issues may emerge
during the course of the research. Researches and developments at academic and
industry level in the area of plastic money are not plenty in many parts of the world,
especially in a developing country like India.

Comparative study of two or more cities on plastic money adoption needs to be


conducted. This study will provide a wide range of awareness to the parties
involved from the customer.

Further, this study can also be extended to know the profitability aspect of the intra
bank product like debit card or credit cards.

The impact of plastic money adoption on profitability on a sector wise basis like
public sector, private sector and foreign sector can also be done.

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STATISTICAL ANALYSIS
Question 1:
How many cards (Debit/Credit) do you have?
None

3%

Only 1

52

57%

2-4

32

35%

4-6

3%

More than 6

0%

In the survey of 90 peoples 57% peoples do have at least 1 card


Question 2:Do you like using plastic money?

Yes
NO

76
14

84%
15%

As this question is applicable only for those who like using plastic money, the total
number of respondents is 90 and 84% of the people like using plastic money.

03. How did you come to know about plastic money?

Bank Employee
Media
Newspaper
Friends/Relatives
Any other

14
32
5
36
3

15%
35%
5%
40%
3%

In the response of 90 people , 40 % come to know about plastic money by their friends
and relatives and 35 % by the media and 15% by Bank employee .

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04. How frequently do you use cards to pay?

Always
Very Often
Sometimes
Rarely
Never

23
30
23
12
2

25%
33%
25%
13%
2%

When it comes to the use of plastic money, Only 25% of people always use cards and 25%
use it very often ,and there are 2% of people who never use plastic money.

05. Out of the following, you use your plastic money while:

Never

Rarely

Sometimes

Very

Always

Often
Paying bills

24

10

22

10

24

90

Travelling

21

13

25

17

13

89

Shopping

27

24

23

89

Dining

19

20

25

19

89

Entertainment 20

19

22

17

11

89

online

06. Do you find plastic money to be a safer mode of transaction ?

Yes
No
Cant say

55
9
26

60%
10%
29%

In the above table ,60% people feels that plastic money is the safe mode of transaction
than paper money. While 10 % thinks than it is not safe.

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07. While opening an account, do you look for the facility of plastic money?

Always
Very often
Sometimes
Rarely
Never

50
16
16
4
3

55%
18%
18%
4%
3%

While opening an account ,55% people needs the facility of plastic money, while 3 %
people do not have interest in cards.

08.Have you ever felt that plastic money is are much safer than holding money in
Pocket ?

Always
Most Likely
Sometimes
Never

32
39
16
3

35%
43%
18%
3%

78%(35%+40%) feel that cards are safer than holding money in pocket, while 3% disagree
with this.

09.Reasons for which you have opted for card?


Safety Solutions
Handling Solutions
Convenient
Fast transaction
All of above
Any Other

6
9
21
16
36
3

7%
10%
23%
18%
40%
3%

When it comes to the facilities of plastic money,40% people says that they opted card for
handling,safety,convenient and fast transaction facility. While 23% take it only fbecause it
is convenient.

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10. Which type of security measurements you expect for stepping misuse of Plastic
money?

Password
Photo card
Biological Imprints
Voice Recognition
Others

39
11
31
7
2

43%
12%
34%
8%
2%

In the term of security 43% people thinks that password protection is the best way of
protection,while 34% people want to adopt new technology like biological imprints and 8%
people wants voice recognition technology.12% wants photo card.

11.Utility of plastic money?

Vital
Essential
Desirable
A waste of Resource

19
51
19
1

21%
56%
21%
1%

Plastic money is essential for the 56% of people and 21% thinks that it is desirable ,1%
people thiks than it is just a waste of source.
12.Will you see the next generation as no currency but plastic money ?

Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly Disagree

31
36
21
2
0

34%
40%
23%
2%
0%

Next generation is of plastic money,34% and 40% people strongly agree and agree by this
statement. While 23% people are neutral on this.

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13. Your opinion about your plastic money ?

Excellent
Good
Average
Satisfied
Poor

26
52
7
4
1

29%
57%
8%
4%
1%

In this, Respondents were asked to give their opinion on plastic money,29% of the respondents say
that it is excellent. While 57% says that it is good

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RESULT
Response Rate
The survey website address was distributed by Google Drive, to classmates and
friends fitting the demographic requirements of the survey: age 18-45 and income
range of 1,00,000 to 5,00,000 There were a total of 90 responses. Given the
method through which the survey was administered, this rate met the expectations
of the researchers. The respondents were offered an incentive through Google
Drive, for their participation.

HYPOTHESIS TESTING:
CORRELATION ANALYSIS

Hypothesis 1:
Null Hypothesis:
: The two most preferred spendings positively correlated to each other.
Alternate Hypothesis:
The two most preferred spendings are not positively correlated to each other for
females
r=

0.1264

As the r value is positive but is relatively small so there is weak correlation


between females spending in shopping and entertainment
Chi Square:
Null Hypothesis: The preferred opinion about plastic money is independent of the
income of the respondents..
Alternate Hypothesis The preferred opinion about plastic money is dependent on the

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income of the respondents.

Z test for Proportions:


Null Hypothesis: There is a no significant difference in consumers acceptance of
plastic money with a respect to gender of the respondents
Alternate Hypothesis: There is significant difference in the in the consumers acceptance of
plastic money with respect to gender of the respondents

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Conclusion
The purpose of this study was to examine the consumer perception towards plastic
money.

Many of the respondents or the bank customers are aware of plastic money.
Media and friends/relatives are the main sources to know about the plastic
money
This study also found a significant relationship the Level of Income and the
Perceptions of the people towards plastic money

When the bank customer going to open the account in a bank they always
want the facility of plastic money. Most of the bank customers have credit as
well as debit card and they need it for the fast transaction and handling
solutions.
Most of the bank customers use the card weekly and that too for cash with
drawl and shopping purpose as according to them plastic money is are much
safer then holding money in Pocket.

Many of them consider the point that the next generation is No Currency but
Plastic Money and their opinion regarding the plastic money is good enough
to promote it for the future.

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Bibliography
(2013). In BUSINESS TODAY (p. 4).
BUSINESS STANDARD. (2013).
Reserve Bank of India, Venture Info tech Research. (2013).
SBI.CO.IN/ANNUAL REPORT. (2013, NOV). Retrieved from SBI.CO.IN.
THE ECONOMIC TIMES. (2013). 1.
thehindu.com. (2014, august 23). Retrieved september 10, 2014, from the hindu:
http://www.thehindu.com/business/Economy/only-1015-cards-used-for-online-transactions-rbireport/article5940415.ece#comments
Mehta, R. ( 2014, January Friday). Reserve Bank plans to test-market plastic currency this year.
Retrieved september wednesday, 2014, from dnaindia.com:
http://www.dnaindia.com/money/report-reserve-bank-plans-to-test-market-plastic-currency-thisyear-1944478
Reserve Bank Of India. (2011-12).
RESERVE BANK OF INDIA. (2011-12).

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Annexure-1

Questionnaire:
01. How many cards (Debit/Credit) do you have?

None
Only1
2-4
4-6
More than 6

02. Do you like using plastic money?

Yes
no

03. How did you come to know about plastic money?

Bank employee
Media
Newspaper
Friends/Relatives
Any Other

04. How frequently do you use cards to pay?

Always

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Very often
Sometimes
Rarely
Never

05.Out of the following, you use your plastic money while:

Shopping
Online bill payment
Dining
Entertainment
Travelling

06. Do you find plastic money to be a safer mode of transaction ?

Yes
No
Cant say

07. While opening an account, do you look for the facility of plastic money?

Always
Very often
Sometimes
Rarely
Never

08.Have you ever felt that plastic money is are much safer than holding money in

Always
Most likely
Sometimes
Never

09.Reasons for which you have opted for card?

Safety Solution

Handling Solution

Convenient

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Fast Transaction

All of above

Any Other

10. Which type of security measurements you expect for stepping misuse of Plastic
money?

Password

Photo Card

Biological Imprints

Voice recognition

Other

11.Utility of plastic money?

Vital

Essential

Desirable

A waste of resource

.
12.Will you see the next generation as no currency but plastic money ?

Strongly Agree

Agree

Neither Agree Nor Disagree

Disagree

Strongly Disagree

13. Your opinion about your plastic money ?

Excellent

Good

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Average

Satisfied

Poor

NAME

Gender
[ ] Male [ ] Female
Age group
[ ] below 20 years
[ ] 30-40 years

[ ] 20-30 years
[ ] 40-50 years

[ ] above 50 years

Marital Status
[ ] Unmarried

[ ] Married

Annual Income
[ ] Below 1 lakh

[ ] between 1-3lakh

[ ] Between 3-5 lakh

[ ] above 5 lakh

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