Consumers Preference Towards Plastic Mone

CONSUMERS PREFERENCE TOWARDS PLASTIC MONEY
AURO UNIVERSITY
(INDIA)
The School of Management and Enterpreneurship

Masters of Business Administration
(MBA)
MODULE
RESEARCH METHODOLOGY
SEMESTER 1- BLOCK 2
(2014)
MODULE LEADER
Mr.SUBHOJIT CHAKRABORTY
www.aurouniversity.edu.in
ACKNOWLEDGEMENT
The Project Report is written in accordance with Masters of business administration course
prescribed by AURO UNIVERSITY. It has always been my sincere desire as a management
student to get the opportunity to express my views, skills, attitude, and talent in which I am
proficient. A project is one such avenue through which a student who aspires to be a future
manager does something creative. This project has given me a chance to get in touch with the
practical aspects of management. Therefore I would like to thank AURO UNIVERSITY for
including these submissions in the coursework.
First of all I would like to thank Mr. SUBHOJIT CHAKRABORTY(Module leader) who
has given a depth explanation about the module research methodolgy. I will always be
thankful for your valuable advice.
Secondly, I would like to thank the people who have helped me during my project work, the
employees have helped me in giving depth guidance and gave us their time from their busy
schedule.
INTRODUCTION
1.1GROWTH OF PLASTIC MONEY IN INDIA:The number of credit and debit card users in India is climbing fast, and rising
affluence is likely to erode Indians lingering reluctance to spend on credit
Indians have traditionally valued thrift and frugality. But the spread of affluence in
the wake of rapid economic growth is challenging these values, at least for many
middle-class and high- income families. One sign of this is the phenomenal growth
in the number of credit and debit cards in Indiain the past three years, the
number of credit cards has more than doubled and the number of debit cards has
almost quadrupled. However, despite these impressive rates of growth, the Indian
market for financial cards is only beginning to show its enormous potential. Future
growth will be driven by rising consumerism, intensifying competition among card
issuers and an expanding financial architecturealthough a culture of credit-based
purchasing may take some time to develop.
1.1.1 Plastic Trends

By January 2007 there were 22m credit cards in India. The number of debit cards
was much larger, at 70m. However, the difference is potentially misleading, as it
does not accurately reveal the relative importance of credit and debit cards as
payment mechanisms. Although there are fewer credit than debit cards in
circulation, the total volume and value of credit card transactions is much higher.
During the first ten months of fiscal 2006/07, for instance, the value of credit card
transactions reached Rs335bn (around US$7.4bn)nearly five times higher than
for debit cards.
Along with growth in the number of cards issued, the value of credit card
transactions has risen rapidly. The total value of such transactions almost doubled
between 2003/04 and 2005/06, to around Rs339bn. In the case of debit cards, the
number of cards has risen fourfold since 2003/04, but growth in the value of
transactions has been much more modest, rising by 21% to reach Rs59bn in
2005/06.
The latest available data, which covers the first ten months of 2006/07, indicate
continued robust growth, with the number of credit and debit cards rising by 28%
and 41% respectively in year- on-yearterms. Over the same period, the value of
credit card transactions grew by 20% and that of debit card transactions increased
by 38%.
2.1.2TYPES OF CARDS
1 .Charge card
Charge Cards - Charged with a charm all their own!The Charge card is similar to the
Credit card in most of its features but unlike a credit card it requires you to make a
full payment of the charge by the due date.So, why invest in a Charge
card?Because Charge cards entitle you to high credit limits, sometimes even
unlimited credit!
Salient features
1. Charge Cards have a high or no credit limit.
2. Unlike Credit cards, Charge cards do not allow you to carry forward your dues.
Benefits
1. Having no credit limit has prestige attached to it!
2. Also, if you're the kind of person who uses cards for convenience, rather than
credit, and can spend responsibly; this is just the thing for you.
Drawbacks
1.No carry forward of dues beyond due date.
2.Debit cards
Debit Cards - How never to be in debt!
A Debit card is a card that has direct access to your bank account. Your bank issues
the card. Whenever you use your debit card, your bank account is debited
immediately. Unlike credit cards, you don't enjoy any credit period and therefore
the debit card does not have minimum income eligibility criteria.
Salient features
It is a combination of a Cheque an ATM card. Therefore, there are no fees for using
the ATM for cash withdrawal, or as a debit card for purchase.A Debit card is more
affordable than a credit card. You just use your bank account for all your
transactions.Currently, there are only two issuers in India - Citibank and HDFC
4
bank.No credit period. Your bank account is debited immediately.No credit check is
required to get a Debit card.Spending is limited to your bank balance.
Benefits
Free with your Bank Account: Obtaining a debit card is easy. If you qualify to open
a bank account, you usually get a debit card, if your bank offers the service.
No background check: When you are applying for a debit card, the bank does not
need to look into your credit history. All you need is the documentation to open a
bank account, and money in your bank when you use your debit card.
Convenience: A Debit card frees you from carrying a lot of cash or a chequebook. In
case, you are an international traveller, you don't need to stock up on Traveller's
Cheque or cash. You can use your debit card to withdraw cash from over 500,000
ATMs around the world in over 100 countries. You can withdraw in the local
currency of the countryyou are in; limited only by the money you have back home
in your account, and your Business Travel Quota (BTQ) limit availability.
If you return merchandise or cancel services paid for with a Debit card, the
transaction is treated as if it were made with cash or a check. Customers usually
get cash back foroff-line purchases; for on-line transactions, the amount is credited
to your account.
Drawback
Unlike a credit card, debit card transactions are on a "pay now" basis.
2.International Card
International Credit Cards - Worldwide recognition!
If you've noticed, most cards have "Valid only in India and Nepal" printed on them.
An International card is valid in India as well as anywhere in the world. Which
means that you spend in foreign currency on the card but pay back in Indian
Rupees on your return.
Salient features
1.As an Indian resident, you can buy foreign exchange using your International
Credit card from an authorized dealer or moneychanger against your Basic Travel
Quota (BTQ). To find out your entitlement to foreign exchange for business or
5
other trips abroad, you should contact any bank authorized to deal in foreign
exchange in India.
2.You can incur expenses on your International Credit card mainly for personal
spending. You cannot use your card for expenditure that is not permissible by the
Reserve Bank of India.
Example
1.Under the existing regulations, you are not permitted to buy lottery tickets
abroad. By regulation, all cases of unauthorized utilization are required to be
reported to the Reserve Bank.
2.You can use your International Credit card to make an advance payment for
personal imports. The amount should not exceed US$15,000 or its equivalent.
Subsequently, the physical import of the goods or services should be settled as per
the EXIM policy and procedures.
3.International Credit cards can be used on the Internet only for obtaining
information or databases for which release of exchange is permissible under the
existing exchange control regulations. You are required to produce documents to
the authorized dealer at the time of settling your dues arising out of such
expenditure.
Example
If you have used your International Credit card to pay for downloading of a
database, you have to submit details of the database downloaded and provide a
declaration that you have received the data at the time of settling the bill.
4.Virtual Cards
Realizing the Internet dream!
In a world that's turning to the net for all its needs, it is only natural that you
should own a card that is for the internet alone. The virtual card from Citibank is
just that. The answer to all your questions on the safety of transacting online.
Salient Features
The virtual card, or the Citibank e-Card is the first ever web card only in India. Now
you don't need a Credit Card to shop online. Accepted wherever MasterCard is, the
Citibank eCard offers
you a safe and easy way to shop on the Internet. On approval, you get your card
number, valid dates and a card verification number.
Benefits
6
1. Citibank eCard works exactly like a credit card. Which means, you can spend
now, pay later.
2. The eCard comes with a very low annual fee.
3. Citibank's 100% Online Guarantee ensures that you are protected against
fraudulent purchases on your Citibank ecard. You are insured for unauthorized
purchases on the Net on this card up to a limit of Rs. 12,000 per claim.
4. Citibank's Internet price protection ensures that you get the best-advertised
price on all webstore purchases charged to the Citibank ecard. You are insured for
the difference in price for the same item purchased on the Net on this card up to a
limit of Rs. 1,000 per claim and Rs. 5,000 per customer per year of membership.
5. Where a manufacturer's warranty exists, you are insured for a further period of
six months or the warranty period itself (whichever is lower) up to the amount
billed on the card. Purchase Protection: Where items purchased on this card are
lost/stolen or destroyed in a fire within 90 days of the date of transaction, Citibank
will reimburse you to the extent of the purchase made on the card upto a
maximum of Rs. 12,000.
Drawbacks
1.Unlike with other credit cards, you don't get a physical plastic card. All you get is
a card number and expiry date. Therefore, this Card cannot be used for
transactions that require in person presentation of a physical MasterCard card. The
Citibank eCard cannot be used for 'dualmode' transactions i.e. it cannot be used to
purchase an item over the Internet that subsequently requires a presentation of a
physical MasterCard Card to obtain that item.
5. MasterCards
Origin
MasterCard started in the late 1940's when banks in US issued special paper that
could be used like cash. In 1951 The Franklin National Bank in New York formalized
the practice by introducing the first real credit card. Several franchisees evolved
over the next decade. Interbank Card Association (ICA) to be renamed as
MasterCard as it is known today was born on August 16th 1966. Member
committees were established to run the association. These committees established
rules for authorization, clearing and settlement, handled marketing, security and
legal aspects of running the organization.
Association of Membership
In 1968, the erstwhile ICA began what is a huge global network by forming an
association with BancoNacional in Mexico. They also formed an alliance in Europe
with Eurocard. The first Japanese members also joined that year. The eighties saw
the Africa, Australia, Asia, and Latin America joining the ICA. ICA was renamed
MasterCard to reflect the global commitment.
First cards from MasterCard
In the past 20 years alone, MasterCard has achieved an impressive list of "firsts."
1981 MasterCard introduced the industry's first gold card program.
1983 MasterCard was the first to use the laser hologram as an antifraud device.
1987 A MasterCard card became the first payment card issued in the People's
Republic of China.
1989 MasterCard introduced the first bankcard with a tamper-resistant signature
panel.
1990 MasterCard unveiled a co-branding strategy and became the industry's cobranding leader.
1991 MasterCard, in partnership with Europay International, launched Maestro,
the world's first truly global online debit program.
1992 Maestro completed the first-ever coast-to-coast national online debit
transaction in the United States.
1996 MasterCard Global Service became the first program to provide cardholders
with telephone access to core emergency and special services in 21 languages,
from 130 countries (today, in 196 countries and 46 languages).
1996 MasterCard contracted with AT&T to replace its transaction network
infrastructure with the industry's first virtual private network design, which delivers
faster response time and lower costs. (In 2010, alone, the VPN reduced cumulative
payment processing time by nearly half a century.)
1997 MasterCard acquired a 51% stake in Mondex International, which offers the
only electronic-cashproduct that is globally interoperable, with a multi currency
capability.
1997 MasterCard was the first payments organization to cap uniform liability limits
for unauthorized use at US$50 for all U.S.-issued MasterCard-branded consumer
cards-both credit and debit.
1999 MasterCard and MYCAL Card Co. of Japan implemented the world's first
migration from traditional credit cards to multiapplication chip cards using the
MULTOS operating system.
1999 Mondex e-cash became the first commercial product ever to receive the
highest possible ITSEC (Information Technology Security Evaluation Criteria)
security rating.
1999 The first online purchase of a U.S. Treasury Bond was made with a
MasterCard card.
2000 MasterCard became the first in the industry to establish a U.S. rule of no
liability for the consumer from the unauthorized use of payment cards.
6. VISA card
The Leader
Thirty years ago people paid for their purchases by cheque or cash. They did not
have an alternative until payment cards entered the market. Payment cards over
these 3 decades have become an integral part of our lives. The possibilities are
amazing, you can use them for travel, food and commodities or simply cash. Today
owning a payment card opens up a whole new world of opportunities.
Visa International has over 21,000 member financial institutions that have
propelled it to the top. Visa International is the world's leading full-service payment
network. Visa has a range of cards namely Visa Classic, Visa Gold, Visa debit, Visa
commercial cards and the Visa global ATM network in over 300 countries and
territories that gives the consumer choice.
The way the world pays
Visa cards are the world's most widely used and accepted form of plastic payment.
Nearly $ 1.4 trillion in product and services are purchased using Visa Cards. Visa's
market share, at 55% is greater than of all other major payment cards combined.
There are 800 million Visa, Interlink, Plus and Visa Cash cards in the market today.
Visa branded cards are accepted at more than 16 million locations in 300 countries
and territories. This makes them the closest thing there is to a universal currency.
Visa operates the largest and the most sophisticated consumer payments
processing system. The Visa network, known as VisaNet processes over 2700
transactions every second in its peak season and is capable of handling
transactions denominated in 160 countries.
Association Of membership
More than 21,000 financial institutions are members of the Visa across the globe.
Their mission- to enhance the competitiveness and profitability of their members.
Visa plays a pivotal role in advancing new products and technologies for payments
on behalf of its members though Visa itself does not offer cards or financial
services directly to consumers and merchants. Visa member institutions offer the
industry's widest range of payment products and services, including credit, debit
and stored value cards. Apart form this there is also corporate, purchasing and
business cards, travelerscheque, the Travel Money card as well as the multifunction smart cards.
VISA vision
9
Visa' vision is to continue to be the "The World's Best Way to Pay and Be Paid " for
consumers and business.
Looking ahead
Visa is working with and on behalf of its member institutions to leverage best-ofbreed technology to enable members' cardholders to enjoy new levels of
convenience, safety and flexibility. Visa is in working with more than 170 banks
across the globe and has 23 million chip cards in the market today. Till date 38
countries have secure Internet shopping programs utilizing the SET co-developed
by Visa. This covers about 150 Visa members
Transaction process
10
1.1.2 Drivers of growth

Several factors have combined to fuel the astonishing growth in the use of credit
and debit cards in India. Apart from the convenience offered by cards, these
factors include the following:
Rising consumerism:
The process of economic liberalisation that began in the 1990s has resulted in the
availability of a huge variety of foreign and domestic consumer goods. Such goods
have also become more affordable for upper- and middle-class Indians, who have
benefited the most from economic reforms, high economic growth and
globalisation. The rise in consumerism generated by these trends has sparked
robust demand for financial cards, especially credit cards.
Improved payment infrastructure:

Demand for credit and debit cards has also been fueled by improvements in
payment infrastructure across the country that have greatly enhanced their utility
for cardholders. Most Indian banks have been widening their networks of
automated teller machines (ATM s) in order to expand their business. There were
over 21,000 ATM s across the country in March 2006more than seven times the
figure five years earlier in March 2010.
Competition and lower costs:With so many banks offering credit and debit
cards, the competition among them to attract potential customers to apply for new
cards or to switch their loyalties has intensified. In fact, the Reserve Bank of India
(the central bank) has had to intervene to protect customers from aggressive
marketers by requiring banks to allow customers to register their contact details on
a do not call list. Banks have also stopped the practice of sending credit cards to
potential customers that have not applied for them.
Competition has also produced a number of benefits for the customer. For many
types of credit cards, banks no longer charge an annual fee. Credit card holders
who make large purchases can pay for these over a period of time through equated
monthly installments (EMIs) offered by the card-issuing banks. The interest rate on
such EMIs is kept lower than the normal credit card interest rate. In addition, most
banks now offer free debit cards to customers that open personal banking
accounts. These debit cards also double up as ATM cards.
11
Co-branding:Co-branded credit cards, which involve tie-ups between the issuing

banks and companies selling products and services, are becoming increasingly
popular in the Indian market. In addition to the standard facilities conferred by a
credit card, the specific advantages relating to the product or service of the
partnering company have proved an attractive bait. Citibanks co-branded card
with Jet Airways, Indias leading airline, allows cardholders to accumulate air miles
that can be redeemed in the form of free flights, discounts on tickets and seat
upgrades. Similarly, ICICI Banks co-branded card with Indiatimes, an internet
retailer, entitles the cardholder to discounts and reward points for the purchase of
various products and services through the site.
12
SIGNIFICANCE
Why do banks push debit cards for every purchase you make? Because they stand
to makemillions--largely at your expense (lifting of the co-operate wheel)
Quietly but surely, a revolution is under way in how we pay for everything from a
cup of coffee to our monthly electric bill. Continuing a climb that started a decade
ago, debit cards are now preferred over credit cards by those American consumers
who use plastic for their in-store purchases.Spending on these cards, which directly
tap your checking account, topped $1 trillion for the first time in 2006, when the
total number of transactions outnumbered those on credit cards by more than 2
billion. With check writing in decline and little if any growth in ATM cash
withdrawals, debit cards are becoming the dominant form of payment for
consumers, according to a 2006 Federal Reserve Board research report. Debit cards
are especially popular among women and among people between the ages of 18
and 25, who card issuers label Generation P, for plastic.
The convenience of not having to carry cash and a desire to avoid credit-card
finance charges are among the many reasons consumers cite when asked in
surveys why they prefer using debit cards. But banks are also accelerating this
trend by aggressively promoting perks such as air mileage and other reward
programs to entice cardholders to use debit cards more often. (For more
information on those reward programs, see "Debit rewards deceptive.")
Of course, the card issuers have their own motives for encouraging you to reach for
your debit card more often, some of which can hit you in your wallet. If you pay off
your balance in full each month, ano-fee credit card is a better choice than a debit
card because it allows you to keep your cash in aninterest-bearing account until
the card bill is due. Moreover, the cash-back, mileage, and other rewards that
accompany credit cards tend to be much more generous than debit-card perks.
Plus, credit cards provide more leverage if you get into a dispute with a merchant
over something you've bought.
13
OBJECTIVES OF THE STUDY
The objectives of the study are as follows-
1) To study the development of banking industry in plastic cards usage trends.
2) To analyze the factors for adoption of plastic money this replaces the paper or
cash money.
3) To determine the penetration of plastic money in day to day life over the
paper or cash money.
4) To study the future plans made by various banks and institutions for avoiding
frauds arised due to plastic cards.
14
2.2Review of literarture:
Plouff, Yandenbosch and Hulland (2000), Why smart cards have failed looking to
consumers and merchant reactions to a new payment technology describes that
more than a decade, bankers and other outside financial services community such
as hardware manufacturers have sought to solidify the place of smart card
technology as a viable retail point-of-sale alternative and, more boldly, as an
outright replacements for cash in everyday consumption situations around the
globe. Despite strong development efforts and numerous fact- finding market
trials, many banks have found smart card technology to be a losing proposition.
This article presents a detailed case study of both consumer and merchant
adoption of one smart card based retail point-of-sale system.
The system, called Exact, was test marketed for a full year in Canadian market.
Various perceptual and demographic data from consumers as well as firm level
data from retailers are both presented and assessed. The ensuing discussion offers
pragmatic suggestions for those in the financial services community as to how the
apparent difficulties and shortcomings of smart card technology may be overcome.
Worthington (2007) The adoption and usage of credit cards by urban-affluent

consumers in China. The purpose of this paper was to present exploratory
research into the holding and usage of credit cards by a distinct segment of the
Chinese population, who were early adopters of this product. Primary data was
collected for taking sample of the urban affluent population in china to gauge
preferences and attitudes towards the use of credit cards. The sample was drawn
from a narrower base than the actual target population of urban-affluent market
but an available and valid respondent set, which offers insights into the early
adopters of the credit card product in china. It was found, that the respondent
were comfortable with the holding and use of credit cards particularly recognized
their value for spending on travel and entertainment. The research also identified
purchase trigger points, which indicated that the use of credit cards for purchases
above certain values, is already prevalent with the sample of urban affluent
Chinese consumers
15
Sant (2005), Credit cards emerging Trends and Prospects shows benefits,
growth/potential growth, usage pattern, technological changes, delinquency rates,
and fraud settlement, by the credit card companies. Survey shows that spend per
card in India are very low at around Rs 20,000 per year against international
average of around $900 (i.e. about Rs. 40,000) per year per card. Demands have
increased for higher quality and level of services. Major card issuers in India,
domestic and foreign, are currently busy racking their brains in trying to protect
their organizations from frauds. To overcome this problem a new technology i.e.
Smart-Card that allows for greater security against fraud. Authors feels that with
the establishment of credit information bureau of India Ltd. (C/B/L) customer had
motivation to maintain good credit history and helps in lowering of delinquency
rates. Article also shows that credit card industry
grows by 37% with ten million cards in circulation.
Jagdeesh(2005), Credit card fraud: causes and cures from professionals

perspective. Put a light on credit card fraud which is increasing worldwide. The
culprit is not only the outsiders but insider fraudsters who cheat their organization
to make quick buck. Bank credit card issuers lose about $1.5 to $ 2 billion every
year because of fraud. The VISA and the Master Card, the two largest credit card
issuers lose most. Major credit card frauds like unauthorized use of credit cards,
on line frauds, shave and paste of card, counterfeiting. mail order fraud are the
techniques used by the fraudster.
The author also discusses the tips for prevention of frauds like using smart cards,
computer edits, PIN numbers, and suggests that it is in their own interest that the
cardholders should keep their cards safely and use the cards wisely to protect
themselves from frauds.
Bhargava(2004) title Debit cards: A new generation plastic money analyses that
debit cards are fast catching up with the customers. A combination of factors like
ease of availability, debit-averse profile of customer and zero interest rates are
propelling the usage of Debit Cards. The study emphasizes to increase the usage of
these cards, bank will need to improve infrastructure and continues to focus an
increasing installations of point of sale [POS] in smaller cities and on the locations
which are frequently used by cardholders, and to develop new marketing
programmers that educate customers on the benefits of replacing cash with
plastic.
Nyasha kasake title CASH OR PLASTIC MONEY
16
Respondents with degrees and diplomas constituted the highest number of

respondents who used plastic money. Also gender had a bearing on the use of
plastic money, with males dominating the use of plastic money. With reference to
benefits of using plastic money, it is concluded that the majority of the
respondents encouraged the use of plastic money as a means of settling
transactions. The study found that the use of plastic money brings with it several
benefits. Apart from withdrawing money on an ATM or transacting on a Point of
Sale (POS) in a retail market, plastic money brings with it enhanced security,
portability, 24 hour accessibility to account balances, easy payment of monthly
utility bills or transfer funds between accounts with it convenience, safety and
reliability.
CATHY ZHANG TITLE Paper or Plastic? Money and Credit as Means of Payment
We endogenize the acceptability of credit by allowing retailers to invest in a costly
record-keeping technology. Our framework captures the two-sided market
interaction between consumers and retailers, leading to strategic complementarities that can generate multiple steady-state equilibria. In addition, limited
commitment makes debt contracts self-enforcing and yields an endogenous upper
bound on credit use. Our model can explain why the demand for credit declines as
ination falls, and how hold-up problems in technological adoption can prevent
retailers from accepting credit as consumers continue to coordinate on cash usage.
We show that whenever money and credit coexist, equilibrium is generically
inecient and optimal policy entails an ination rate strictly above the Friedman
rule.
Makosana, Musa S. title CUSTOMERS ADOPTION OF ELECTRONIC BANKING
The research shows a significant relationship between security and privacy. This
means when consumers believe that internet banking is safe, efficient,
confidential, convenient, easy to use, reliable, and fulfils the commitments and
promises it assumes, they are likely bound to trust the system. Consumer attitude
and trust can help in creating electronic banking acceptance among Zimbabwean
Bank customers. The relationship between Trust and electronic banking adoption is
positive because online users complete the transactions through network
technologies without face to face interaction.
Simiyo titled, Credit and Debit Card Usage and Cash Flow Management Control by
Customers
This study sought to determine the extent of use of debit and credit cards in cash
deposits, withdrawals and purchase transactions at retail outlets and to determine
its effects on cardholders cash flow management. The study aimed at assisting the
cardholders in ensuring proper use of their cards, help commercial bank to educate
17
their customers on proper use of the cards, benefit the community through
economic growth resulting from proper use of the cards. Credit cards and debit
cards has an impact of weakening the cash flow management control of the
commercial bank customers.
Susan Herbst-Murphy* May 2010 titled Trends and Preferences in Consumer Payments
This research shows, After a period of experimentation with the various payment options available
to them as they entered the 21st century, consumers have settled on preferred methods of
payment. These preferences vary with age, gender, life stage, and income, and they also vary
depending on the type of purchase and its amount. Once a payment preference is established, it
tends to endure over time, as weve witnessed with todays older consumers, who have seen no
compelling reason to abandon their preference for checks for the sake of adopting new payment
methods as they have been introduced in the marketplace.
Jajoo Rupa Dwarkadas Consumers perspectives towards Credit Card

The socio economic variables such as gender, age, educational qualification, Occupation, area,
monthly income, marital status were analyzed. The analysis reveals that out of 200 respondents,
59% were males and 41% were females. It shows that majority of credit card users were males. The
reason for the low usage of credit card among women is lack of awareness among them. After the
survey it reveals that perception was positive and satisfaction among card holders was average. So
the card division of various banks should adopt right marketing strategy and assess their
customer's needs and expectation for promoting their customers satisfactions and future growth of
sales. The ability to perceive the credit card is depending upon the services provided by issuing
bank. As outcome of the results it is found that cardholder are using private bank's card and satisfied
with the services. The issuing bank should take necessary step to improve their cardholder's
awareness and satisfaction. Varieties of banks card and their services were preferred by them.
Services like wider acceptability, discount on purchase and quick processing, popularity and
convenience services of bill payments opting have to be increased for further satisfaction.
IMPACT OF PLASTIC MONEY ON BANKING TRENDS IN INDIA by Sushma Patil
The rise in consumerism generated by economic reforms began in 1990s has also sparked robust
demand for plastic cards. The arrival of malls,multiplexes, online shopping stores and shopping
complexes encourage the customers to make use of plastic cards. It benefits the consumer through
enhanced product offerings at a lower cost and that too with lucrative deals delighted with rewards
scheme, loyalty bonus points, promotional campaigns etc.
CONSUMER RESPONSE TOWARDS THE USAGE OF PLASTIC MONEY BUSHRA HAQ MALIK*; TABREZ
HAQ**
The use of plastic money in India is in strong surge. This research paper makes an attempt to
understand the after effects of recession on plastic money industry and its impact on consumer
preferences. The paper duly investigates the acceptability of the cards among the Indian consumer
and the factors influencing the card choice.
Consumer Perception and Attitude towards Credit Card Usage by Afshan Ahmed Ayesha Amanullah
18

This study makes use of descriptive variables in terms of analyzing the general attitude about the use
of credit cards and the factors contributing towards the selection of (a) one particular credit card
over the other. A positive relationship has been found between the income level of a person and
his/her possession of the credit card. While making the choice of a credit card the trust in a
particular brand name seems to hold a very significant importance in the selection of a credit card,
instead of the logo of Visa or Master card.
In this paper, we revisit the contents and method of Keyness Indian Currency and Finance (1971a).
By focusing on the rationale of his proposal for a new international monetary system combining
cheapness with stability, we argue that Keyness analysis of monetary developments in Asia in the
first years of the twentieth century may provide useful hints for an overall rethinking of the major
faults of todays Bretton Woods II system. (201011)
The article reports on the problem regarding fake currency in India. It is said that the country's battle
against fake currency is not getting easier and many fakes go undetected. It is also stated that
counterfeiters hitherto had restricted printing facilities which made it easier to discover fakes.
According to chief economist Soumendra K. Dash, the solution to the problem is to provide people
incentive to use plastic cards and make cashless transactions. (3/8/2009) By: Alvares, Cliford
The article offers tips on the use of credit and debit cards overseas. One should use credit or debit
card to make purchases and debit card to get cash when one needs it. Both Visa and MasterCard
charge currency-conversion fees on credit-card purchases. One can minimize fees by using the right
card. HSBC, Washington Mutual and most credit unions don't add a surcharge. Withdrawing cash
from an overseas ATM not part of one's bank network could cost $5 or more on top of the
conversion fee. INSET: CREDIT CARDS.(9 Jun2006)By: Goldwasser, Joan
The author comments on issues related to credit cards. He asserts that he has never owned a credit
card. After the mortgage crisis, Bank of America Chief Executive Ken Lewis has expressed concern
about credit-card defaults. The author criticizes the use of credit cards particularly the idea of
renting his own money back while paying nearly 14%, on average, for the privilege. (Dec2008)By:
Martin, Edward
The article reports that paying cash is better for the environment than using a credit card. Credit
cards, made of plastic, take decades to decompose, the computers that effect credit card
transactions consume large amounts of energy, and most people in the U.S. still receive paper credit
card statements. Bills, however, are made largely of materials like cotton, which creates less carbon
emissions than paper when harvested. Also, bills stay in circulation for up to five years.
(12/1/2008)By: Stone, Daniel
19
Lr plan
Money is the most important resource for exchange and trade.without money nothing is possible
and survival is also next to impossible. The issue of money is wide spread because of the problem of
its perishability theft and other hazzardious incidences. also these monetary currencies have other
variablities around it like problem of transferability etc. to solve these problems and promote safety
there has been a revolution called plastic money and to highlight the importance and significance of
the same I have done a deep study regarding the plastic money in my reserch paper.
Variables
Year
December 2012
Author
Nyasha Kaseke
2014
Makosana, Musa
S.
October, 2012
Simiyu, Justo
Simiyu
August , 2011
Jajoo Rupa
Dwarkadas
2000
BUSHRA HAQ
title
CASH OR PLASTIC
MONEY AN
INVESTIGATION
INTO THE
PAYMENT MODE
POST MULTICURRENCY
PERIOD IN
ZIMBABWE
CUSTOMERS
ADOPTION OF
ELECTRONIC
BANKING: AN
INVESTIGATION
ON THE
COMMERCIAL
BANKING
INDUSTRY IN
ZIMBABWE
Credit and Debit
Card Usage and
Cash Flow
Management
Control by
Customers
Consumers
perspectives
towards Credit
Card
CONSUMER
journal
International
Journal of Advanced
Research in
Management and
Social Sciences
ISSN: 2278-6236
Vol. 1 | No. 6 |
Variables
Internet Banking,
Plastic money,
Cash economy,
payment mode
and
multicurrency
International
Journal of
Economics,
Commerce and
Management
United Kingdom
Vol. II, Issue 7, 2014
electronic
banking
An International
Multidisciplinary
Journal, Ethiopia
Vol. 6 (4), Serial No.
27,
Debit cards,
credit cards,
commercial
banks
International
Referred Research
Journal,August,
2011. ISSN- 09742832, RNI-RAJBIL
2009/29954;VoL.III
*ISSUE-31
ZENITH
Credit card,
Perception &
Consumer
behavior.
Consumer
20

MALIK*; TABREZ
HAQ
RESPONSE
TOWARDS THE
USAGE OF
PLASTIC MONEY:
AN EMPIRICAL
STUDY IN JAMMU
REGION
International
Journal of
Multidisciplinary
Research
_____________ISSN
2231-5780 Vol.4
(5), MAY (2014), pp.
93-102,
Response, Plastic
Money, Credit
card, Debit card,
Consumer
Perception
Gap
Plastic money usage highly depends on the preference and usage .despite of its importance and
significance many people may prefer hard cash for transctions and also many people believe it is a
mere banking tactic. Also there are many disadvantages of the same. Loosing a plastic money
instrument causes heavy loads of documentation and verification work also intrest is charged on the
sum.
From the above research studies we found that they have not considered consumer
preference as an important factors.
Ultimately consumer is the user of this service so our main focus was to conduct a research
on customer preference , their views on benefits and loopholes in this service
CONCLUSION
From the above report we want to conclude that cost of using plastic
money should be reduced.
21
Security of using plastic money should be improved so that people

prefer this mode of payment.
More ATMs should be provided and such facilities should be made
available at more & more places to make the use of plastic money
popular in city.
More Discounts & offers should be provided that so that this mode
becomes more attractive.
22

Consumers Preference Towards Plastic Mone

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Consumers Preference Towards Plastic Mone

Uploaded by

Copyright:

Available Formats

CONSUMERS PREFERENCE TOWARDS PLASTIC MONEY

The School of Management and Enterpreneurship