University of Mumbai

RESEARCH REPORT ON

CONSUMER BEHAVIOUR TOWARDS ONLINE PAYMENT

PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAI FOR

PARTIAL COMPLETION OF THE DEGREE OF

BACHELOR OF MANAGEMENT STUDIES

UNDER THE FACULTY OF MANAGEMENT

BY

ANKIT PREMCHAND TIWARI

ROLL NO. 98

UNDER THE GUIDANCE OF

Prof. Mrs. SARIKA SAGAR

SATISH PRADHAN DNYANASADHANA COLLEGE, THANE

(ARTS, SCIENCE & COMMERCE)

OFF EASTERN EXPRESS HIGHWAY, DNYANASADHANA MARG,

THANE - 400604

ACADEMIC YEAR 2020-21

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 SATISH PRADHAN DNYANASADHANA COLLEGE, THANE

(ARTS, SCIENCE & COMMERCE)

Off Eastern Express Highway, Dnyanasadhana Marg,

Thane- 400604

CERTIFICATE

This is to certify that [Link] ANKIT PREMCHAND has worked and duly
completed his Project Work for the degree of Bachelor of Management studies under the
Faculty of Commerce in the subject of Human Resources and his project is entitled,
Consumer Behaviour Towards Online Payment, under my supervision.
I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is his own work and facts reported by his personal findings and investigations.

Date of submission Name and Signature of Guiding

teacher

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 Declaration by learner

I the undersigned Mr. Ankit Premchand Tiwari here by, declare that the
work embodied in this project work titled “A Study Of Consumer Behaviour
Towards Online Payment”, forms my own contribution to the research work
carried out under the guidance of Prof. Sarika Sagar is a result of my own
research work and has not been previously submitted to any other University for
any other Degree/ Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.

Certified by

Prof. Sarika Sagar

Satish Pradhan Dnyanasadhana College

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 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance
to do this project.
I would like to thank my Principal, Dr. Hemant. Chittefor providing the
necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator Prof. Rajesh Valeja, for his
moral support and guidance.
I would also like to express my sincere gratitude towards my Project Guide Prof
Sarika Sagar whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers who
supported me throughout my project.

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 INDEX

Sr No. Title Page no.

1. TITLE PAGE I

2. CERTIFICATE II

3. DECLARATION BY LEARNER III

4. ACKNOWLEDGEMENT IV

5. INDEX V

6. LIST OF TABLES VI

7. LIST OF GRAPHS VII

CHAPTER
1. INTRODUCTION 1 – 47
CHAPTER
2. REVIEW OF LITERATURE 48 – 54
CHAPTER
3. RESEARCH METHODOLOGY 55 – 63
CHAPTER
4. DATA ANALYSIS AND INTERPRETATION 64 – 92
CHAPTER
5. FINDINGS AND CONCLUSION 93 – 97
SUPPLEMENTARY MATERIAL
* Bibliography 98 –104
Annexure 105 – 108

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 List of Tables

Sr No Title of Analysis Page No

1 Gender of Respondent 66

2 Age of Respondent 68

3 Do you use online payment 70

If you have never used online payment, what is the
4 reason 72
How often do you use online payment
5 74
Which payment wallets you prefer to use for
6 daily purpose 76
Do you think that using online payment makes
7 your life easier and fast 78
Have you ever lost money due to digital fraud
8 80
Do you trust the security of online payment
9 82
Do you feel online payment saves your time and
10 money 84
Do you feel online payment system better than
11 cash 86
Online payment offers a great choice for
12 consumers and merchants in the way they send 88
and receive payment

A customer has to be alert to security issues

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 13 when using online payment wallets 90
What are the security measures that could secure
14 you against various kind of online payment 92
attacks

List of Graphs

Sr No Title of Interpretation Page No

1 Gender of Respondent 67

2 Age of Respondent 69

3 Do you use online payment 71

If you have never used online payment, what is the
4 reason 73
How often do you use online payment
5 75
Which payment wallets you prefer to use for
6 daily purpose 77
Do you think that using online payment makes
7 your life easier and fast 79
Have you ever lost money due to digital fraud
8 81
7
8
 Do you trust the security of online payment
9 83
Do you feel online payment saves your time and
10 money 85
Do you feel online payment system better than
11 cash 87
Online payment offers a great choice for
12 consumers and merchants in the way they send 89
and receive payment

A customer has to be alert to security issues

13 when using online payment wallets 91
What are the security measures that could
14 secure you against various kind of online 93
payment attacks

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1
0
INTRODUCTION TO ONLINE PAYMENTS SYSTEM.

The present scenario of the Indian economy is showing an increase in cashless

transactions. Indian government is putting more efforts to change the face of the economy
from cash to cashless transactions. Many awareness programs are conducted by
government and other organizations to create the awareness on the cashless transactions.
To increase the usage of this method of transactions various e- payment systems have
been introduced to make necessary changes in the economic life of people. India
economy is in phase of transforming the cash into cashless and it is considered as a
milestone in the Indian economy. The growth of the E-payments mechanism is depended
to be driven by various trends and this may show an impact on the industries accepts.
Regulatory environment, next generation service providers and improvised consumer
experience are the four drivers contributed to the growth of Indian online payment
systems.

The vision of Digital India program is to transform the country into a completely cashless
society and knowledge economy. Faceless, Paperless, Cashless are few major changes in
the concept of digitalization. Government of India has initiated various programs and
came up with several discounts programs to get the implementation of digital
transactions. It is on 15th Aug 2014 when the idea of transforming India to cashless has
enlighten. It is on the same day when there was opening of the Jandhan accounts by
Prime Minister of India so that poor and unbanked areas can get the facilities availed
under the financial inclusion. After that 9th November, 2016 Prime Minister Mr.
Narendra Modi implemented demonetization in India.

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The online money-based transactions have increased up by 250% in the recent few
months compared to the recent years this is due to the demonetisation effect. Cashless
options as Debit cards, Credit cards, Paytm etc are used by the people in an increased
amount. The payments done through online modes are considered as the e-payments
transactions in this both the payer and payee can be able to use the online modes for
sending and receiving of the money. Hard cash is completely involved in the online
payments. This mode of transaction is considered as an easy, instant and convenient
mode of the transactions. The complete process of cash transactions involves few steps
the first is to withdraw money from the account, then utilize this for shopping or grocery
etc as per the individuals need and then the shopkeeper should deposit the money into his
account all these will be the basic few steps and lot of time is consumed in cash
transactions. But if we observe in online mode of transactions the money from us is
directly transferred to the required person account and it is automatic, instant and done in
less time.

These payment methods are more convenient methods than compared to transactions
which involve hard cash. It involves transparency, accountability, reduced transactions
costs. As in the economy it is considered as main accept which includes these key points
such as There is no additional cost in printing the cash for example in the demonetization
phase RBI has spent 7900 crores (approx.) to print the cash. These cashless transactions
save money as well as time where as cash transactions leads to black money and fake
currency.

DEFINATION of Onliine Payment System

An e-payment system (Online payment) is a way of making transactions or paying

for goods and services through an electronic medium, without the use of checks or
cash. It’s also called an electronic payment system or online payment system.

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The electronic payment (Online payment) system has grown increasingly over the last
decades due to the growing spread of internet-based banking and shopping. As the world
advances more with technology development, we can see the rise of electronic payment
systems and payment processing devices. As these increase, improve, and provide ever
more secure online payment transactions the percentage of check and cash transactions
will The electronic payment system has grown increasingly over the last decrease.

The online payment system is a comprehensive term, portraying various scopes of

delivery through electronic multichannel. Its use for various purposes offers an amplified
imprecision of characterising online payment in literature. Online payment can be seen
from its capacities as e-banking, m-payment, e-cash, internet banking, online banking, e-
broking, e-finance and so on.

Likewise, Teoh et al. (2013) saw online payment as any exchange of an electronic worth
of payment from the buyer to the seller by means of an online payment channel that
permits clients to remotely access and deal with their financial accounts and exchanges
over an electronic system.

In general, an online payment system is an arrangement of monetary exchange amongst

purchasers and vendors on online conditions that is helped by a digital financial
instrument, (for example, electronic checks, encoded credit card numbers, or cash in
digital form) supported by a bank, a mediator, or by a lawful associate.

Main Characteristics and Feature of Online Payment System in

India

 Online payment system is eases of use.

 Security

 Reliability

 Trust

 Scalability

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  Convertibility

 Interoperability

 Efficiency

 Anonymity

 Traceability

 Authorisation.

 The Features of the Electronic (Online) Payment Service are compliant,

reversals, freely accessible (nondiscriminatory), immediate, transaction amount
neutral, transparent and anonymity.

ADVANTAGES of Online Payment System

 Low labour costs

Since online payments are usually automatic, they have lower labour costs than manual
payment methods, such as cheque, money order, cash and EFTPOS.

 Convenience for online sales

Online payment methods allow conveniently selling goods and services online.

 Automatic
Online payments can be automatic, which can be convenient for you and your customers.

 Fast transaction speed

Online transactions quickly provide feedback to you and your customers.

 Introduce more trust in customer

Customers today often consider those merchants more reliable that accept payment online
through their site. It encourages them to do business with the merchant. At the same time,

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 online invoice payment offers the consumer with the fraud protection that secures their
money if they don’t receive the product purchased online through a website.

 Anytime Anywhere Payment

Whether you are at home or office, or even miles away from your home, simply log in to
the online banking portal of your bank and make instant payments any time. This
eliminates the need for you to physically visit any payment centre for bill payments and
also saves a lot of time and efforts. Moreover, as digital payments are quick and easy, it
enables you to pay all your bills, taxes, premiums and more before the due date,
protecting you from paying any late fee

 Enhanced Security
Some people in India still do not trust digital payments and believe that they are not
secure. But be rest assured that banks have multiple security measures in place to make
sure that every single payment is fully secured and protected. Every online banking
transaction is secured by a two-factor authentication system. Apart from your password
(in case of Internet Banking) or CVV (in case of Debit or Credit Card), you are also
asked to provide a 3D secure PIN, Card PIN, or One-Time Password (OTP) sent to your
registered mobile number or e-mail ID) to complete the transaction.

 Mobile Access
One of the biggest online banking advantages is mobile access. Many banks now have
their own mobile apps or exclusive official website for mobile devices. These options
provide the flexibility of on-the-go payments. Be it paying utility bills on the way to work
or shopping online while dining out or transferring funds; this on-the-go payment
flexibility comes in very handy.

 Track your payment on the go

Whether you are trying to stick to a budget or just want to check when you made the last
bill payment, the 'track your transactions' feature is one of the most important online
banking benefits. Once you log in, you get the option to track all your past online
transactions, including payments and transfers. Moreover, the tool lets you filter the
statement by date, month or year as well. This also eliminates the need for you to visit
your bank to get entries done in your account passbook.

 Gift vouchers and other offers

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 Some banks also offer different types of gift vouchers or other offers like discounts and
cashback when you make payments online. From shopping, bill payments, to ordering
food; you get to take advantage of many different types of promotional deals with digital
payments. This allows you to save money and enjoy a range of other benefits every time
you use the Internet Banking portal of your bank to make a payment.

 Low risk of theft

After processing delays, online payments generally go straight into your bank account, so
they have a low risk of theft.

Disadvantages of online payments system


Service fees

Payment gateways and third-party payment processors charge service fees.


Inconvenient for offline sales

Online payment methods are inconvenient for offline sales.


Vulnerability to cybercriminals

Cybercriminals can disable online payment methods or exploit them to steal people’s
money or information. Visit the Australian Cybercrime Reporting Network’s Learn about
cybercrime page to learn more about cybercrime.


Reliance on telecommunication infrastructure

Internet and server problems can disable online payment methods.


The cost of fraud

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 As appetite for online spending has increased, so have fraud attempts in the field. In
2018, some $24 billion were lost globally to fraudulent credit card transactions. A big
disadvantage of online transactions is therefore the merchants’ and customers’ exposure
to different malevolent attacks. From ID theft, to database exploits and phishing
attacks, criminals are becoming more and more versatile in the way they attempt to
interfere with online transactions.


Risk of being hacked

When transacting online, your personal or account information and credit card number is
exposed over the Internet. This leads to the risk of your account being hacked. Hackers
may use your identity for fraudulent activities or make huge fund transfers from your
account, which could mean financial losses for you.


False Identity

There are no means to verify if the person entering information online is the same person
he claims to be. This is because unlike physical transactions, the individual is not present
in person, and one’s identity is not verified using a photograph or a physical signature.
Mostly, electronic cash transactions are based on cryptographic systems. Information
being transferred is encoded by means of numeric keys when the transaction details travel
across the web. Though electronic payments carry less risk of forgery, the keys are
vulnerable to attack.


Anonymity and Privacy Concerns

All the transaction and user details are recorded by the payment systems you are using,
and stored in their database. This leads to lack of anonymity. Cases of identity theft have
raised privacy concerns in electronic payments. If credit card details are not sent over a
secure server, if online transactions are not carried out over a secure Internet connection,
if virus protection software or firewalls are not in place, or if data encryption techniques
are not used, there is a serious risk of privacy breach. In the absence of proper security

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 measures, sensitive information may be exposed to hackers, leading to illegitimate use of
your identity or money.


Additional Cost and Effort

Some electronic transaction services may require you to pay processing fees and the like,
thus leading to increased costs. Some systems require setup fees, while some others
enforce a certain number of transactions every month. Electronic payment systems need
Internet access, which may invite additional costs. Setting up the account, accessing the
Internet, familiarizing oneself with the interface and operating it efficiently, involves
additional effort, and may be cumbersome for some


Disputed Transaction

If someone uses your company's electronic money without your authorization, you would
identify the unfamiliar charge and file a claim with your bank, online payment processor
or Credit Card Company. Without sufficient information about the person who performed
the transaction, though, it can be difficult to win the claim and receive a refund.


Technical problems
Like any system that depends on technical infrastructure, online payments themselves
may be subject to disturbances and downtime. Tech maintenance operations performed
on online payment gateways or in the card network system are usually limited in time,
announced in advance, and scheduled for periods when E-Shops don’t have a lot of
traffic, often during the night.

ONLINE PAYMENT APP’S IN INDIA

PayTM

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Paytm was founded in August 2010 with an initial investment of $2 million by its
founder Vijay Shekhar Sharma in Noida, a region adjacent to India's capital New Delhi.
It started off as a prepaid mobile and DTH recharge platform, and later added data card,
postpaid mobile and landline bill payments in 2013.

By January 2014, the company had launched the Paytm Wallet, which the Indian
Railways and Uber added as a payment option. It launched into e-commerce with online
deals and bus ticketing. In 2015, it unveiled more use-cases like education fees, metro
recharges, electricity, gas, and water bill payments. It also started powering the payment
gateway for Indian Railways.

In 2016, Paytm launched movies, events and amusement parks ticketing as well as flight
ticket bookings and Paytm QR. Later that year, it launched rail bookings and gift cards.

Paytm's registered user base grew from 11.8 million in August 2014 to 104 million in
August 2015. Its travel business crossed $500 million in annualised GMV run rate, with 2
million tickets booked per month.

In 2017, Paytm became India's first payment app to cross over 100 million app
downloads. The same year, it launched Paytm Gold, a product that allowed users to buy
as little as ₹1 of pure gold online. It also launched Paytm Payments Bank and ‘Inbox’, a
messaging platform with in-chat payments among other products. By 2018, it started
allowing merchants to accept Paytm, UPI and card payments directly into their bank
accounts at 0% charge. It also launched the ‘Paytm for Business’ app which is now called
Business with Paytm App, allowing merchants to track their payments and day-to-day
settlements instantly. This led its merchant base to grow to more than 7 million by March
2018.

The company launched two new wealth management products - Paytm Gold Savings
Plan and Gold Gifting to simplify long-term savings.

In January 2018, Paytm entered into a joint venture with Alibaba Group-owned gaming
company AGTech Holdings to launch Gamepind, a mobile gaming platform. Gamepind
was later rebranded as Paytm First Games in June 2019.

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In March 2018, Paytm Money was setup with an investment of ₹9 crore to bring
investment and wealth management products for Indians. In March 2019, Paytm
launched a subscription based loyalty program called Paytm First. In May 2019, Paytm
partnered with Citibank to launch Paytm First credit card

In July 2020, Tata Starbucks partnered with Paytm allowing its customers to order food
online during a coronavirus (COVID-19) pandemic

Number of installs in India: 100 Million (or 10 crores) on Android Play Store.

 Google Pay

As its part of the Google ecosystem, they have scaled up their user base quickly, despite
being a late entrant. It is currently the No.1 digital wallet and one of the top online
payments apps in India. With Google Pay you can send money to friends, pay bills and
buy online, recharge your phone - all via UPI and directly from your bank account. Since
Google Pay works with your existing bank account, which means your money is safe
with your bank. There's no need to worry about reloading wallets and you don't need to
do additional KYC - which is required for all the other apps. You can also earn scratch
cards and other rewards, with the cashback directly being transferred into your bank
account. Now you can also recharge your mobile or monthly utility bills. Since the
introduction of UPI, wallets have become passé with users preferring account to account
transfer via UPI.

Google Pay (stylized as G Pay; formerly Pay with Google and Android Pay) is a digital
wallet platform and online payment system developed by Google to power in-app, online,
and in-person contactless purchases on mobile devices, enabling users to make payments
with Android phones, tablets, or watches. Users in the United States and India can also
use an iOS device, albeit with limited functionality. In addition to this, the service also
supports passes such as coupons, boarding passes, student ID cards, event tickets, movie
tickets, public transportation tickets, store cards, and loyalty cards.

As of January 8, 2018, the old Android Pay and Google Wallet have unified into a single
pay system called Google Pay. Android Pay was rebranded and renamed as Google Pay.

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It also took over the branding of Google Chrome's autofill feature. Google Pay adopts the
features of both Android Pay and Google Wallet through its in-store, peer-to-peer, and
online payments services.

The rebranded service provided a new API that allows merchants to add the payment
service to websites, apps, Stripe, Braintree, and Google Assistant. The service allows
users to use the payment cards they have on file in their Google Account.

Number of installs in India: 100,000,000+ (100 Million or 10 crore) on Android Play

Store.

 Phone pee

Next in the list of top online payment apps in India is PhonePe. PhonePe started in 2015
and in just 4 years it has been able to cross the 100 million download mark. From UPI
payments to recharges, money transfers to online bill payments, you can do it all on
PhonePe. Its got a very good user interface and is one of the safest and fastest online
payment experience in India.

PhonePe is an Indian digital wallet platform and online payment company headquartered
in Bangalore, India. PhonePe was founded in December 2015, by Sameer Nigam, Rahul
Chari and Burzin Engineer. The PhonePe app, based on the Unified Payments
Interface (UPI), went live in August 2016.

The PhonePe app is available in over 11 Indian languages. Using PhonePe, users can
send and receive money, recharge mobile, DTH, data cards, make utility payments, pay at
shops, invest in tax saving funds, liquid Funds, buy insurance and mutual funds and
gold. In addition PhonePe also allows users to book Ola rides, pay for Redbus tickets, and
book flights and hotels on Goibibo through the Switch platform.

PhonePe is accepted as a payment option at over 10 million offline and online merchant
outlets across 400 cities in India covering food, travel, groceries, medicines, movie
tickets etc. The app crossed 100 million user marks in June 2018 and also crossed 5
billion transactions in December 2019. It currently has over 200 million users. The

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company launched the PhonePe ATM in January 2020. The PhonePe ATM allows
neighbourhood Kirana stores to dispense cash in real-time to customers.

PhonePe is licensed by the Reserve Bank of India for issuance and operation of a Semi
Closed Prepaid Payment system with Authorization Number: 75/2014 dated 22 August
2014.

Number of installs in India: 100,000,000+ (100 Million or 10 crore) on Android Play

Store.

 Bhim (Bharat Interface for Money)

BHIM (Bharat Interface for Money) is an Indian mobile payment App developed by
the National Payments Corporation of India (NPCI), based on the Unified Payments
Interface (UPI). Named after B. R. Ambedkar and launched on 30 December 2016, it is
intended to facilitate e-payments directly through banks and drive towards cashless
transactions.

The application supports all Indian banks which use UPI, which is built over
the Immediate Payment Service (IMPS) infrastructure and allows the user to instantly
transfer money between bank accounts of any two parties. It can be used on all mobile
devices.

BHIM allow users to send or receive money to or from UPI payment addresses, or to
non-UPI based accounts (by scanning a QR code with account number and IFSC
code or MMID (Mobile Money Identifier) Code).

Unlike mobile wallets (PayTM, MobiKwik, mPesa, Airtel Money, etc.) which hold
money, the BHIM app is only a mechanism which transfers money between different
bank accounts. Transactions on BHIM are nearly instantaneous and can be done 24/7
including weekends and bank holidays.

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BHIM also allows users to check the current balance in their bank accounts and to choose
which account to use for conducting transactions, although only one can be active at any
time.

Users can create their own QR code for a fixed amount of money, which is helpful in
merchant-seller-buyer transactions. Users can also have more than one payment address.

If the 12-digit Aadhaar number is listed as a payment ID, the BHIM app will not require
any biometric authentication or prior registration with the bank or UPI.

Version 1.3 allows users to use mobile numbers from their contact book to send money
and also save payment addresses for future use without needing to type the address again.
User can also check the transaction history, which only shows transactions through
BHIM.

The company rolled out new feature called BHIM Aadhaar Pay allowing users to send or
receive digital payments through Aadhaar authentication.

Number of installs in India: 1,000,000+ (1 Million or 0.1 crore) on Android Play Store.

 Amazon pay

Amazon Pay is an online payments processing service that is owned by Amazon. It is

also a top online payment app in India and the global market. Launched in 2007 globally
and India in 2017, Amazon Pay uses the consumer base of Amazon and focuses on giving
users the option to pay with their Amazon accounts on external merchant websites,
including apps like BigBazaar etc. You also get to shop on Amazon using Amazon Pay.
Amazon Pay has also tied up with fintech companies such as ZestMoney to enable no-
cost EMI payment options on its platform. This makes it easy for consumers to purchase
products on Amazon and pay for it through affordable monthly instalments.

Amazon Pay is an online payments processing service owned by Amazon. Launched in

2007, Amazon Pay uses the consumer base of [Link] and focuses on giving users
the option to pay with their Amazon accounts on external merchant websites. Amazon

2
Pay announced a partnership with Worldpay in 2019 allowing WorldPay clients to enable
Amazon Pay as a part of the same integration.

Number of installs in India: 100,000,000+ (100 Million or 10 crore) on Android Play

Store.

 Dhani

Dhani App is part of the Indiabulls group and has multiple features. It is not only a
regular e-wallet app but it can also be combined with Dhani SuperSaver Card. Dhani also
has a reward & loyalty program for Dhani customers wherein customers can play games
and win cash to pay for mobile recharge, EMI payments, Insurance, and also for new
Dhani products. This can be combined with Dhani Super Saver Rupay (physical and
virtual card) which has assured 5% cashback on all purchases done via the card and it’s
completely free for the first month.

Number of installs in India: 20,000,000+ (20 Million or 2 crores) on Android Play

Store and iOS.

 Mobikwik

MobiKwik is an independent mobile payment network that supposedly connects 25

million users with 50,000 retailers and more. This e-wallet app lets its users add money
using debit, credit card, net banking and even doorstep cash collection service, which
can, in turn, be used to recharge, pay utility bills and shop at marketplaces. Owing to the
growing need for convenience, MobiKwik has also recently tied up with large and small-
time grocery, restaurants and other offline merchants.

Another unique feature they have is their expense tracker which allows setting budget for
your expenses across all payment instruments and it uses your SMS data to analyse and
control spends. No wonder it made to the list of top online payment apps in India.

MobiKwik is an Indian company founded in 2009 that provides a mobile phone

based payment system and digital wallet. Customers add money to an online wallet that
can be used for payments. In 2013 the Reserve Bank of India authorized the company's

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use of the MobiKwik wallet, and in May 2016 the company began providing small loans
to consumers as part of its service. The company launched its MobiKwik Lite mobile
app in November 2016, designed for users of older 2G mobile networks and for those in
areas with poor internet connectivity. In November 2016, the company reported having
1.5 million merchants using its service and a user base of 55 million customers.

MobiKwik was founded in 2009 by husband and wife team Bipin Preet Singh and
Upasana Taku. Singh, a 2002 graduate of IIT Delhi, saw an opportunity to improve
mobile recharge options. He seeded the company with $250,000 of his own money,
developed the website and payment options, and rented office space in Dwarka,
Delhi. The initial service was a website with a closed wallet facility, but over the years,
MobiKwik extended their service to mobile apps. The company initially partnered with
online merchants to make their wallet available as a payment option on e-commerce sites.

The company employs over 325 people, operating in three segments including consumer
payments, fintech, and payment gateway.

Number of installs in India: 10,000,000+ (10 Million or 1 crore) on Android Play Store.

 PayPal
PayPal is one of the oldest and most popular international money transfer solutions. You
can create a free PayPal Account and link any bank’s Debit Card to PayPal, even you can
add RuPay Card to your PayPal account. PayPal is a free money transfer app, which is
popular both in India and globally.

PayPal Holdings, Inc. is an American company operating an online payments system in

the majority of countries that support online money transfers, and serves as an electronic
alternative to traditional paper methods like checks and money orders. The company
operates as a payment processor for online vendors, auction sites, and many other
commercial users. It charges a fee in exchange for benefits such as one-click transactions
and password memory.

Established in 1998 as Confinity, PayPal had its initial public offering in 2002. It became
a wholly owned subsidiary of eBay later that year, valued at $1.5 billion. In 2015,

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eBay spun off PayPal to eBay's shareholders. The company ranked 204th on the
2019 Fortune 500 of the largest United States corporations by revenue.

Number of installs in India: 100,000,000+ (100 Million or 10 crore) on Android Play

Store.

 Bharat pee

Bharatpe was launched in September 2016 as per the directions set by the Reserve Bank
of India with aim of facilitating India in transition to a less-cash society. The system
helps in enabling digital payments to reduce the usage of card swiping machines for
payment. A number of banks supported Bharatpe, before the system was launched, and
got ready to deploy it.

Although, Bharatpe primarily works by scanning QR codes, it is not the only way to
make payments. It allows users to pay through Aadhaar number, UPI payment address or
through account number and IFSC code, thus, minimizing the need to pay using debit and
credit card which are, supposedly, less secure than Bharatpe. The system, also, supports
Dynamic QR code generation which eliminates the need of entering the amount for
payment.

This payment system supports RuPay, Mastercard, Visa, American Express and 14 other
national banks. Multiple cards can be linked to Bharatpe supported bank apps and can be
selected any one of them to handle transactions conveniently for bank customers,
partners, merchants. Bharatpe enables faster & secure mode of transactions
with Immediate Payment Service (IMPS). There is no need to share mobile number or
account details, CVV with anyone.

NPCI, Mastercard and Visa developed Bharatpe with provisions for three additional
fields: bank account and IFS (Indian Financial System) code, Unified Payments Interface
(UPI) and Aadhaar. These additional fields provide banks the option to populate them as
QR-based payments scale in the country. American Express is also on board to adopt
these standards.

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Number of installs in India: 100,000,000+ (100 Million or 10 crore) on Android Play
Store.

INTRODUCTION – B

CONSUMER BEHAVIOUR

Purchaser conduct is the investigation of how singular clients, gatherings or associations

select, purchase, utilize, and arrange thoughts, merchandise, and administrations to fulfill
their necessities and needs. It alludes to the activities of the buyers in the commercial
center and the fundamental thought processes in those activities. customer conduct mixes
components from brain research, humanism, social human studies, showcasing and
financial aspects, particularly behavioral financial aspects. It analyzes how feelings,
dispositions and inclinations influence receiving administrations conduct. qualities of
individual buyers, for example, socioeconomics, identity ways of life and behavioral
factors, for example, utilization rates, use event, dedication, mark support, eagerness to
give referrals, trying to comprehend individuals' needs and utilization are altogether
researched in formal investigations of shopper conduct. It additionally tries to survey
impacts on the shopper from gatherings, for example, family, companions, sports,
reference gatherings, and society when all is said in done. the investigation of customer
conduct is worried about all parts of receiving and utilizing administrations conduct and
also all people required in embracing choices and utilizing administrations exercises.
Research has demonstrated that buyer conduct is hard to foresee, notwithstanding for
specialists in the field. Aside from the innovative issues, there is a behavioral change that
is being normal in individuals from utilizing money as a medium of trade to utilizing
other money substitutes both for making installments and getting installments. This move
expects people to roll out two improvements in their conduct: one, specialists need to
move from unmistakable means which can be seen and felt to shapes which are less

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substantial or not unmistakable, and second, they need to figure out how to depend on
innovatively propelled apparatuses to attempt general everyday operations. The last
expects specialists to be taught to the degree of fathoming the substance of exchanges.
On the off chance that this move is not appropriately overseen, operators may be enticed
to move to non-official money substitutes Shopper conduct in cashless exchanges is the
choice procedures and the demonstration of the general population required in purchasing
and utilizing items or making the installments. It is the comprehension of buyer
contemplations, emotions and activities to the cashless installments. It alludes to activity
and choice procedures of the general population to utilize cashless installment modes for
individual utilizations. It additionally alludes to the mental and enthusiastic process and
physical action of the general population who utilize cashless installments to fulfills
specific needs and needs by acquiring, utilize merchandise and ventures. The present
investigation will concentrate on the components which impact people groups to go for
cashless exchanges and research will likewise center to think about most favored cashless
exchange mode. Display research will likewise attempt to consider connection between
the financial and statistic profile of respondent and cashless exchange. At that point no
one but conclusion can be drawn about purchaser conduct towards cashless exchanges in
genuine sense.

Feature of consumer behavior

1. Influenced by various factors:

The various factors that influence the consumer behaviour are as follows:

a. Marketing factors such as product design, price, promotion, packaging, positioning and
distribution.

b. Personal factors such as age, gender, education and income level.

c. Psychological factors such as buying motives, perception of the product and attitudes
towards the product.

d. Situational factors such as physical surroundings at the time of purchase, social

surroundings and time factor.

e. Social factors such as social status, reference groups and family.

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f. Cultural factors, such as religion, social class—caste and sub-castes.

2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time depending
on the nature of products. For example, kids prefer colourful and fancy footwear, but as
they grow up as teenagers and young adults, they prefer trendy footwear, and as middle-
aged and senior citizens they prefer more sober footwear. The change in buying
behaviour may take place due to several other factors such as increase in income level,
education level and marketing factors.

3. Varies from consumer to consumer:

All consumers do not behave in the same manner. Different consumers behave
differently. The differences in consumer behaviour are due to individual factors such as
the nature of the consumers, lifestyle and culture. For example, some consumers are
technoholics. They go on a shopping and spend beyond their means.

They borrow money from friends, relatives, banks, and at times even adopt unethical
means to spend on shopping of advance technologies. But there are other consumers who,
despite having surplus money, do not go even for the regular purchases and avoid use and
purchase of advance technologies.

4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For example, the
behaviour of the urban consumers is different from that of the rural consumers. A good
number of rural consumers are conservative in their buying behaviours. The rich rural
consumers may think twice to spend on luxuries despite having sufficient funds, whereas
the urban consumers may even take bank loans to buy luxury items such as cars and
household appliances. The consumer behaviour may also varies across the states, regions
and countries. It may differ depending on the upbringing, lifestyles and level of
development.

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5. Information on consumer behaviour is important to the marketers:

Marketers need to have a good knowledge of the consumer behaviour. They need to
study the various factors that influence the consumer behaviour of their target customers.

The knowledge of consumer behaviour enables them to take appropriate marketing

decisions in respect of the following factors:

a. Product design/model

b. Pricing of the product

c. Promotion of the product

d. Packaging

e. Positioning

f. Place of distribution

6. Leads to purchase decision:

A positive consumer behaviour leads to a purchase decision. A consumer may take the
decision of buying a product on the basis of different buying motives. The purchase
decision leads to higher demand, and the sales of the marketers increase. Therefore,
marketers need to influence consumer behaviour to increase their purchases.

7. Varies from product to product:

Consumer behaviour is different for different products. There are some consumers who
may buy more quantity of certain items and very low or no quantity of other items. For
example, teenagers may spend heavily on products such as cell phones and branded
wears for snob appeal, but may not spend on general and academic reading. A middle-
aged person may spend less on clothing, but may invest money in savings, insurance
schemes, pension schemes, and so on.

8. Improves standard of living:

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The buying behaviour of the consumers may lead to higher standard of living. The more a
person buys the goods and services, the higher is the standard of living. But if a person
spends less on goods and services, despite having a good income, they deprives
themselves of higher standard of living.

9. Reflects status:

The consumer behaviour is not only influenced by the status of a consumer, but it also
reflects it. The consumers who own luxury cars, watches and other items are considered
belonging to a higher status. The luxury items also give a sense of pride to the owners.
The manner in which the consumer spends and makes buying decision reflects his status.
Not only the behaviour of the consumer is influenced by its status but his behaviour also
reflects his status in society.

People who spend more and buy luxury items are considered rich and high-status people
by society. These high priced goods adds pride to their personality.

10. Complex In Nature

Consumer behaviour is complex in nature as all persons differ in their needs and wants.
Each individual has their own unique needs and accordingly, they behave differently in
the market.

It is a very difficult task for marketers to recognise the needs and patterns of each
individual. Therefore, it becomes an overall complex job for the business to identify each
consumer’s behaviour and targets them accordingly.

11. Systematic Process

Consumer behaviour is a systematic process consisting of a series of steps involved in

buying decisions of consumers. It is related to how consumers make their buying
decision. The buying decision of consumers involves different steps which are: Need
identification to buy product, searching for information related with the product, making
list and evaluating different options available, finally making a purchase decision and at
last post-purchase evaluation done by the marketer.

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12. Keeps On Changing

Consumer behaviour is always changing concept and does not remain constant. It keeps
on changing with the time which is due to the following changing factors: age, income
level, education level of consumer.

Same products may be liked by the same consumer who once hated them. For example,
Kids have more interest in toys during their childhood but as they grow up as teenagers
they lose all their interest.

13. Vital For Marketers

Consumer behaviour is crucial for marketers to perform their duties effectively.

Marketers should have perfect knowledge of their target customers buying behaviour. It
will help them in understanding their likes and dislikes and also the factors influencing
their buying decisions.

Marketer can take appropriate actions accordingly to attract customers. It helps the
companies in developing the products as per peoples demand by providing information
collected by them.

14. Improves Standards Of Living

Consumer behaviour has an important role in improving the standards of living of people.
When consumers spend more on buying different products and services, their standard of
living is improved.

Higher is the spending of a person, higher is the standard of living of a person. On the
other hand, despite having enough funds if a person spends less than his standard of
living is low. Therefore, the level of spending directly influences a person’s living
standards.

Advantages of Consumer Behaviour

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The consumer science is largely used by marketer to find-out whether a particular
product will be purchased by consumers or not. The failure of a large number of products
after II World War compelled the producers and marketer to undertake consumer studies
to market test the products.

Some of the advantages of study of consumer behaviour are as under:

1. Saves from Disaster:

The failure rate of new products is surprisingly high not only in highly competitive
economies of USA, Europe and Japan etc. but even in India. For instance, Roohafza of
Hamdard succeeded well but when other companies tried like Dabur to produce similar
products they could not succeed. Dabur had to stop production of Sharbat, because
consumers did not like its taste. Meghee became very popular with consumers but when
other companies tried they failed, some of them have become sick. There are many more
such examples. If one tests the market before launching a new product this type of
disaster can be avoided or minimized.

2. Helps in Formulating Right Marketing Strategy:

If one studies well what factors will influence demand of a product accordingly
production and marketing strategies can be framed. Nirma in initial stages succeeded in
its washing powder only on account of its price. It gave tough competition to Hindustan
Lever, Surf the market leader and today Nirma has become a big producer.

In food items it is taste which decides whether consumer will buy it or not. Besides big
names even small producers have succeeded because of proper product. For instance, a
small producer of Sikanji (cold drink prepared by mixing syrup and lemon) at Modinagar
has become a name in the region and now he provides franchise to others. From a small
pan shop he has become a well known name in the area of Delhi-Modinagar and made
huge profits. Helps in Sales Promotion

If through the study of consumer behaviour one is able to know correctly the factors
which influence buying decisions of the consumer one can promote sales of existing or

3
new product. The scheme of buying back old items has helped a lot LML in pushing
sales.

This strategy was followed, by Akai T.V. and number of other companies like Bajaj Auto
Akai. T.V. Manufacturers of diesel generator sets, refrigerators, electric iron, pressure
cookers etc. also adopted the strategy and benefited.

Similarly, introduction of small packs of shampoos, washing powder and pan masala etc
has helped the companies to expand their market. “When producers found that even a
poor person does not mind trying a new costly product if it is available in affordable price
pack many companies introduced such packaging and when the product was liked they
became regular customers.

3. Segmentation of Market is Helped:

The study of consumer behaviour suggested that everyone does not buy on price
consideration or utility consideration only. For high income group’s high priced cloth,
cars, etc have been produced. In certain cases the price of such cloth is three to eight
times of normal suiting price but some section still buy it for prestige or show. The
producers of such items make heavy profits which would not have been possible without
study of consumer behaviour because it is against basic economic theory. Even some
producers to cater different segments produce varieties of products such as soaps, creams,
toothpastes etc.

4. Helps in Development of New Products:

Before launching a new product proper study of consumer tastes i.e. behaviour avoids
later failure and loss. This is particularly true for food items and daily consumption
products. It is equally true for fashion goods like garments, cosmetics, cigarettes and new
flavours of existing products. In certain cases if a product is reintroduced after a long gap
this type of study helps.

For instance, Coca-Cola was banned in India in 1977 and consumers by and large forget
its taste and liking. Thumps up and other drinks took its place. When Coca-Cola was
reintroduced in 90’s it could as yet not reach the same supremacy. Life Bouy re-oriented

3
its product and produced different items like Life Bouy Gold, Life Bouy Plus to meet
demand of different consumers.

5. Helps in Product Orientation:

The study of consumer behaviour helps to find-out why consumers are drifting away
from a product or why they are not liking it. For instance, some of Indian toothpastes are
being produced for long like Neem but it could not capture the market. There are many
other instances when a new product has been developed or reoriented to again capture its
old glorious position.

Those who do it scientifically succeed and others who do not study consumer behaviour
properly or do not orient loose the market, merely by pretty faces or fancy claims he
wants to be assured that what is claimed is really true.

Therefore, based on consumer research new techniques are used Hindustan Lever and
Procter & Gamble for Surf Ultra and Ariel has brought in producers of cloth Bombay
Dyeing and Reliance to testify claims of producers of these washing powders. This is not
an isolated case but this type of study had paid good results to others also.

6. Helps in Reorientation of Packaging:

A great deal of importance is being given to packaging for quite some time by marketing
department and market research. But whether a particular packaging is liked by
consumers or not is a recent phenomenon. Consumer if likes a packing helps in pushing
sales.

Producers of Vanaspati (hydrogenated oil), milk, drinks items, etc. have developed utility
packaging so that once container becomes empty they can be used for refilling. In certain
cases this fact is advertised also. But in many cases this has been done without study of
consumer behaviour and his attraction or disliking of a particular packaging. The fact
however remains that proper study can help in pushing sales.

7. Helps Consumers to Study their Behaviour:

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The consumers often are guided by their income, emotions, opinion of others and they do
not undertake study of their behaviour whether it is scientific or not. The science,
however, can help them to study cost benefit of their buying decisions. The study can
reveal them whether buying an expansive item is rational, or not.

Whether they should buy Rs. 2 ball pen or fancy pen costing Rs. 100 or more. Whether
they should decide in favour of expensive cloth, car, consumer durables and other fashion
goods or should they buy on utility consideration. If there are competitive goods it can
help them to make consumer preference chart and then decide what to buy immediately
and what to postpone and what should be rejected.

Disadvantages of Consumer Behaviour:

1. The marketers study the behaviour of consumer to mold it in favour of their product
and sometimes make fancy claims and use objectionable techniques. They also take
the help to produce and market such products which have no utility. In many cases
consumers are exploited by sexy or otherwise attractive advertisements through the
media.

2. They take full advantage of weaknesses of consumers to mold it in their favour

whether it is scheme of exchange, gifts, lotteries or otherwise. All over the world
consumers have been exploited by sales promotion schemes and campaigns. For
instance producers certain producers claim that use of their tooth paste will guard
against germs and cavity.

3. Producers of medicines claim cure of certain diseases. Producers of hair oils claim
that it will stop falling of hairs and/or new hairs will start growing. Slim centres claim
to reduce weight in magic speedy manner. Someone claims that baldness can be cured
by replanting of new hairs in short period. Someone claims regeneration of vitality
even in old person.

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4. Any number of examples can be given but such claims sometimes even by big
companies are only partially true. High priced products are introduced to take
advantage of consumers weakness just by changing shape, packing etc. Customers are
attracted by gifts, lotteries, exchange schemes, etc.

5. In such cases often claims are exaggerated and benefits in the form of sales promotion
scheme is only to seller and not to buyer. The government in most of the countries
has found that though consumer is the king he is exploited. Hence most of countries
have framed and enacted many acts and regulations to safe guard the interest of
consumers.

6. In India also there are a large number of laws in this direction like Monopoly and
Restrictive Trade Practices Act (MRTP)., Essential Commodities Act., Consumer
Protection Act, compulsory printing of maximum retail price on each packing,
weights and Measures Act and Code of Advertising.

THEORIES OF CONSUMER BEHAVIOUR

The major theories of consumer behaviour can be grouped with (a) economic theories, (b)
psychological theories (c) psycho-analytical theories and (d) socio cultural theories. All
the consumer behavioural theories are based on the basic law of consumption i.e. when
aggregate income increases, consumption also increases by somewhat smaller amount
and is based on the assumptions like spending habits remain the same, political
conditions, remaining, normal and economy is free and perfect. The law of consumption
is derived from the Keynesian concepts of propensity to consume and propensity to save.
‘Savings’ and ‘Consumption’ are the two key income functions of the consumer. The
primary basis of the law of consumption would be that the propensity to consume would
fall as we move to higher incomes reflecting in an increase in the propensity to save.
These elements of consumption and savings are addressed in Keynes’ Psychological Law

3
of Consumption which states that when income increases, consumption increases at a rate
lower than the rise of income.

ECONOMIC THEORIES:

The economic theories on consumer behaviour focused on how consumers allocate their
income and how this determines the demands of various goods and services. The
traditional theory of demand starts with the examination of the behaviour of the
consumer, since the market demand is assumed to be the summation of the demand of
individual consumers. In the traditional economic theory, it is assumed that the consumer
has full knowledge about all available commodities their prices and income. In the
development of any economic theory, the rationality axiom and the access to complete
information are the most central assumptions which are indeed necessary to develop an
understanding of the interaction of key economic variables in a market environment.
However, the economists only partially accept this, theory on the ground that economic
factors alone cannot explain variations in sales and decision of purchase by consumers,
but it is influenced by many psychological and sociological factors. In order to attain the
objective the consumer must be able to compare the utility (satisfaction) of various
baskets of goods, which he can buy with his income. The basic economic theories include
marginal utility theory, psychological law of consumption, absolute, relative and
permanent income hypothesis etc. Marginal theory was developed by classical
economists. According to them, a consumer will continue to buy such products that will
deliver him the most utility or maximum satisfaction at relative prices. Economists hold
the view that man is rational in all the activities and purchasing decisions are the direct
result of economic calculations. This theory brought out two laws that are said to govern
consumer buying behaviour. These include law of Diminishing marginal utility and law
at Equi-marginal utility. As per the law of diminishing marginal utility, a consumer
satisfies his wants in order of their urgency and that he consciously or unconsciously
weighs in his mind the price he has to pay for the utility of each product he buys. In the
case of Law of Equi-marginal Utility, so as maximise satisfaction, consumer arranges his
expenditure in such a way that his marginal utilities from different items are equalized by
a process of substitution of product or more utility for one possessing less utility. Both

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theories have considerable application in consumer behaviour study as they explain how
far a consumer would go for/against the purchase of the product given the income
constraints he/she faces. It is to be seen that the classical utilitarian approach is not
without its fair share of criticism for its lack of application in real-life markets.
Economists in the later decades however have sought to address these concerns. Neo-
classical economists have tended to prefer the ordinal approach to the cardinal
approaches chosen by the classical utilitarian [Link] attempts to refine the
classical approaches were done by providing improvements and thereby formulated
indifference curve analysis and theory of revealed preferences. In the indifference curve
analysis, the overall consumer choice problem is structured as a relative choice between
product alternatives within constraints related to price, income and the available budget.
Similar type of refinement of the utility theory has also been made by Samuelson in his
Revealed preference theory and by Armstrong in his Marginal Preference theory. While
the utility approach is micro in character, there are important macro theories also.

 ECONOMIC THEORIES OF SPENDING BEHAVIOUR:

We shall first summarise the major economic theories that would help us explain
consumer behaviour and consumption pattern of the individual with the given budget
constraint. The three general theories on the determinants of total consumer spending are:
(a) The Absolute Income Hypothesis, (b) The Relative Income Hypothesis, (c) The
Permanent Income Hypothesis, and (d) The Life Cycle Hypothesis. Each theory was put
forward originally in terms of individual behaviour and then generalized to aggregate
behaviour and each hypothesis postulates a relationship between consumption and
income, though the concepts underlying these terms may vary substantially.

Absolute Income Hypothesis:

The first statement of this theory is perhaps mode by Keynes in the General Theory. Its
subsequent development is primarily associated with James Tobin and Arther Smithies.
Houthakker (1958) suggests that Tobin’s approach modifies the Keynes’ theory by
introducing assets as additional variables to explain. This theory states that the individual
consumer determines what fraction of his current income he will devote to consumption

3
on the basis of the absolute level of that income. Other things being equal the rise in his
absolute income will lead to decrease in the fraction of that income devoted to
consumption. This theory was criticized on the ground of its inability to reconcile data on
saving with observed long term trends and as an answer to this inconsistency the relative
income hypothesis was developed. Another drawback was the fact that the theory failed
to take into account the relative income and the consumption bundle facing the consumer.
However, the assumption that the marginal utility of money will fall as the income rises
making the consumers consume less and save more is generally viewed to hold true.

Relative Income Hypothesis:

This hypothesis was propounded by Dorothy Brady Rose Friedman and James
Duesenberry. Its underlying assumption is that saving rate depends on the level of
income, but on the relative position of the individual on the income [Link] primary
Keynesian assumption was seen to be wrong after the savings and consumption of the
national income by Simon Kuznets. The propensities to consume and save did not show
any changes despite rises in [Link] (1958) sees this function as a radical
shift departure from the primary Keynesian consumption function. As such, Relative
Income Hypothesis implies the assumption that spending is related to a family’s relative
position in the income distribution of approximately similar families. Thus the theory
argues that the fraction of families income spent on consumption depends on the level of
its income relative to the income of neighbouringfamilies and not on the absolute level of
family’s income. James. S. Duesenberry supplied psychological support to the relative
income hypothesis noting that there is a strong tendency in our social set up for people to
emulate their neighbours and at the same time to strive constantly towards a higher
standard of living. According to him, consumption expenditure of an individual is
determined not only by his current income, but also by the standard of living enjoyed by
him in the past. This idea is known as Duesenberry hypothesis.

The Permanent Income Hypothesis:

The Permanent Income Hypothesis was developed by Prof. Milton Friedman. Like
Relative Income Theory it holds that the basic relationship between consumption and

3
income is proportional, but the relationship here is between permanent consumption and
permanent income. Friedman (1957) pointed out the indirect relationships between the
theoretical constructs and observed magnitudes. The paper further went on treat the total
consumption function as having two components – the permanent income function and
the transitory income component. The transitory income components were the
expenditures that would arise out of ‘chance’ or ‘accidental’ occurrences. The author
takes the transitory component as a constant and arrives at the consumption function by
analysing the changes in the permanent income component in view of empirical data. He
replaced the concept of current income to permanent income. According to him,
Permanent income is to be interpreted as the mean income regarded as permanent by the
consumer unit in question which in turn depends on its farsightedness”. Since Permanent
Income Hypothesis argues that proper consumption function relates permanent
consumption to permanent income. It concludes that the long run consumption income
relationship is proportional. Changes in permanent income give rise to proportional
changes in permanent consumption. Hall (1979) states that policy can only affect
consumption as much as it affects the permanent income. However critics argue that this
theory puts too much stress on the expectations and long range planning of consumer
units, while in reality consumer units change their consumption behaviour frequently.
Many other demand side factors were seen as not relevant and Friedman (1957) including
the changes in consumption function arising out of cyclical economic changes as part of
the transitory component was also challenged.

Life Cycle Hypothesis or (MBA Approach):

This hypothesis as propounded by Modigliani, Albert Ando and later by Branberg. Ando
and Modiglani (1963) state that the utility function of a single consumer is a function of
his own aggregate consumption in both current and future periods. The individual is
assumed to maximise his utility by taking into account the resources available to him. By
resources are meant both the current income and discounted income from the future
earnings and the current worth of the consumer. This approach is essentially a permanent
wealth hypothesis rather than permanent income hypothesis. According to this, the
household or consumer unit assumed to determine the amount available for consumption

4
over life which is the sum of households net worth at the beginning of the period plus the
present value of its non property income minus present value of planned [Link] the
MBA hypothesis, consumption is taken as a function of wealth and age and not of simple
current income. It also emphasises that consumption functions is strictly proportional to
total wealth. The above economic theories highlight the short run and long run
consumption function of consumers based on their income, savings, wealth and life
[Link] theory it is widely agreed does explain the motives behind the savings function
much better than the propensity function explained by Keynes and has much more
empirical value. Modiglani and Brumberg (1954) observe that the rate of consumption at
any given point in the consumer’s lifespan is a function of a plan which extends over the
whole lifetime of the individual with the income accrued over that period is an element
which contributes to the entire plan and not just the consumption of the given time
[Link] interest to marketers and management theorists is the assertion by Modiglani
and Brumberg (1954) that uncertainty over future incomes in the lifecycle will affect
consumer’s attitudes towards the consumption of durable goods

 PSYCHOLOGICAL THEORIES:

The essence of psychological theories (learning theories) lies in the fact that people learn
from experience and the results of experience will modify their actions on future
occasions. The importance of brand loyalty and repeat purchase makes learning theory
more relevant in the field of marketing. Among the learning theories come stimulus
response theories and cognitive theories. Contributors of stimulus response theories
include Purlon, Skinner Thorindike and Kotlew. According to them learning occurs as a
person responds to some stimulus and is rewarded with need satisfaction for a correct
response. They proved that most frequent and recent stimuli are remembered and
responded. This approach is the basis of reported advertisements. The cognitive theory
was propounded by Festinger mainly to explain certain post buying behaviour. According
to it stimulation and want are conditioned by a consumer’s knowledge, his perception,
beliefs and attitudes. The theory further states that even after a well thought out purchase
the consumers undergo some sort of discomfort, fear or dissonance. This post decision
anxiety is caused by nice (cognitive dissonance) arising from doubts on the decisions

4
taken. The consumers compare on the merits of the products bought with substitutes or
start analyzing drawbacks of the product. Such customers require some reassurances from
the seller stressing that the decision taken is wise one. Though the theory was developed
to explain a ‘post decision’ phenomenon, it is suitable for explaining pie-decisions
anxiety also. The advertisements and personal selling aimed to reduce cognitive
dissonance on the part of the buyer and prophets. Gestalt theory, coined by German
Psychologist Christian Von Ehrenfels vied personality as the result of the interaction
between the person and the total environment and the two must be considered together as
a patterned event. Consumers attempt to stabilize their psychological field providing
meaning to the surrounding world. Consumers, in making market decisions, strive to
reduce tension and conflict between themselves and their environmental perceptions.

 PSYCHO – ANALYTIC THEORIES:

This theory developed from the thoughts of Sigmund Freud. He Postulates that
personality has three basic dimensions, the id, the ego and the super ego. It follows that
consumer behaviour is a function of the interaction of these three systems. Here the id
urges an enjoyable act, the super ego presents the moral issues involved and the ego acts
as the arbitration in determining whether to proceed or not. This has led to motivational
research and has proved useful in analyzing buyer’s behaviour. This in turn has
contributed some useful insight in the advertising and packaging field to induce response
from the consumer towards the product.

 SOCIO CULTURAL THEORIES:

The credit of formulation of this theory goes to Thorstein veblen known as veblenian
model. He asserted that a man is primarily a social animal and his wants and behaviour
are largely influenced by the group of which he is a member. He argued that people have
a tendency to fit in a society in spite of their personal likes and dislikes. Culture, sub
culture, social classes reference group, family are the different factor groups that
influence buyer behaviour. The theory is known as the demonstration effect and Veblen
and James Dusenberry are key proponents of the theory. McCormick (1983) states that
the relative level of consumption is more important in terms of high quality goods

4
underlining the pressure on individuals within a community to consume goods in relation
to others in the community. The demonstration effect gives valuable insight into the
phenomenon of conspicuous consumption which is of particular help to marketers
wishing to promote and sell high quality luxury goods in niche markets. All the above
theories of consumer behaviour give guidelines to the marketing managers how a
consumer behave in a particular situation and what are the factors which influence their
decision making process.

Models of Consumer Behaviour

Everything you need to know about the models of consumer behaviour.

It is very important for a company to know and understand the consumers’ response
towards different product features, prices and advertising appeals, as well as their effect
on the product getting a competitive edge over the other products. Stimulus response
model of buyer behaviour is the starting point in this respect.

The models of consumer behaviour are:-

Traditional Models 2. Contemporary Models 3. Marshallian Model 4. Freud’s Model 5.

Pavlovian Model 6. Howard-Sheth Model 7. The Economic Model 8. The Learning
Model 9. The Psychoanalytical Model 10. The Sociological Model.

1. Traditional Models:

The early or traditional models were developed by economists with a view to understand
economic systems. Economics helps to understand how scarce resources are allocated

4
among unlimited wants and needs. The first four Models give a general view in terms of
the Economic model, Learning model, Psychoanalytic model and the Sociological model.

 Economic Model:

Under economics, it is assumed that man is a rational human being, who will evaluate all
the alternatives in terms of cost and value received and select that product/service which
gives him/her maximum satisfaction (utility). Consumers are assumed to follow the
principle of maximum utility based on the law of diminishing marginal utility. It is
assumed that with limited purchasing power, and a set of needs and tastes, a consumer
will allocate his/her expenditure over different products at given prices so as to maximise
utility.

The law of equimarginal utility enables him to secure maximum utility from limited
purchasing power.

Economic model of consumer behaviour is unidimensional. This means that buying

decisions of a person are governed by the concept of utility. Being a rational man he will
make his purchase decisions with the intention of maximising the utility/benefits.

Economic model is based on certain predictions of buying behaviour.

1. Price effect – Lesser the price of the product, more will be the quantity purchased.

2. Substitution effect – Lesser the price of the substitute product, lesser will be the
quantity of the original product bought.

3. Income effect – More the purchasing power, more will be the quantity purchased

The assumption about the rational behaviour of human beings has been challenged by the
behavioural scientists. They are of the opinion that while the predictions are useful, the
model only explains how a consumer ought to behave, it does not throw light on how
does the consumer actually behave.

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Behavioural scientists feel the economic model is incomplete. They feel that Economics
is assuming the market to be homogeneous where all the buyers will think and act alike
and also focuses only on one aspect of the product i.e., income.

It has been argued upon that man is a complex entity and hence the need to adopt a
multidisciplinary approach to understand consumer behaviour. Whereas, the model has
ignored all vital aspects such as perception, motivation, learning, attitude, personality and
socio-cultural factors.

Added to this, man is today living in a technologically advanced age with constant
exposure to the various marketing variables such as superior technologically advanced
quality products (and services), efficient network distribution centers, highly interactive
media exposure etc. Under such circumstances man cannot be assumed to be a rational
person who only treats ‘price’ as the deciding factor in his consumption related decisions.

Behaviour scientists have opined that broader perspectives need to be adopted while
analysing the buyer behaviour. So apart from economics, even the role played by needs,
motives, personality, self-concept and the socio-cultural factors have to be considered for
understanding the buyer responses to various stimuli, which in turn could influence their
buying behaviour.

 Learning Model:

Unlike the economists, classical psychologists have been interested in the formation and
satisfaction of needs and tastes. They argued that living beings were influenced by both
innate needs such as the primary needs of hunger, thirst, sex, shelter and learned needs
like fear and guilt. A drive (internal stimulus) which when directed towards a drive
reducing object becomes a motive.

The various products or services will act as stimuli to satisfy drives. For instance, a
hungry person will be driven towards food, which after consumption will reduce the drive
and also provide satisfaction. According to learning theorists, this response of satisfaction
(feeling) reinforces the relationship between drive and the drive reducing stimulus object
as well as the related cues.

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Further, when consumers learn to associate connection between stimulus and response, it
becomes a habit. There are certain cognitive theorists, who have advocated that human
beings not only learn to link stimulus with response (S-R) but also about the formation of
other cognitive processes such as, attitudes, values, beliefs, motivation etc.

In marketing context, ‘learning’ will help marketers to understand how consumers loam
to respond in new marketing situations, or how they have learned and responded in the
past in similar situations. Very often it is observed that consumer’s experience with one
product from an organisation is likely to be generalised to the other products of the firm.

Conversely, consumers also learn to discriminate and this information will be useful in
working out different marketing strategies. Simply stated this learning model will help
marketers to promote associations of products with strong drives and cues and positive
re-enforcements from the consumers.

 Psychoanalytical Model:

This model is based on the work of psychologists who were concerned with personality.
They were of the view that human needs and motives operated at the conscious as well as
at the subconscious levels. This theory was developed by Sigmund Freud. According to
him human behaviour (personality) is the outcome of (a) ‘id’ – the source of all psychic
energy which drives to act, (b) ‘super ego’ – the internal representation of what is
approved by the society, (c) ‘ego’ – the conscious directing ‘id’ impulses to find
gratification in a socially accepted manner. Thus, we can say that human behaviour is
directed by a complex set of deep-seated motives.

From the marketing point of view this means that buyers will be influenced by symbolic
factors in buying a product. Motivational research has been involved in investigating
motives of consumer behaviour so as to develop suitable marketing implications
accordingly. Marketers have been using this approach to generate ideas for developing
products – design, features, advertising and other promotional techniques.

 The Sociological Model:

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According to this model the individual buyer is a part of the institution called society.
Since he is living in a society, he gets influenced by it and in turn also influences it in its
path of development. He is playing many roles as a part of various formal and informal
associations or organisations such as a family member, as an employee of a firm, as a
member of a professional forum and as an active member of an informal cultural
organisation. Such interactions leave some impressions on him and may play a role in
influencing his buying behaviour.

Intimate groups comprising of family, friends and close colleagues can exercise a strong
influence on the lifestyle and the buying behaviour of an individual member. The peer
group plays a very important role in acting as an influencing factor especially in adopting
particular lifestyles and buying behaviour patterns. The group generally has an informal
opinion leader, whose views are respected by the group. This leader is able to influence
the individual member’s lifestyle and buying decisions.

Similarly, depending on the income, occupation and place of residence etc., each
individual member is recognised as belonging to a certain social class. As a member of a
particular class, he may enjoy certain status and prestige. Further, each class has its own
standards of lifestyle and buying behaviour pattern. So an individual member will adopt
the role suitable to conform to the style and behavioural pattern of the social class to
which he/she belongs.

The marketers, through a process of market segmentation can work out on the common
behaviour patterns of a specific class and group of buyers and try to influence their
buying pattern.

2. Contemporary Models:

With the evolution of the consumer behaviour study, newer approaches were used to
understand what influences consumer behaviour. These were said to be contemporary
models.

4
These contemporary models or views differed from the earlier models mainly because
they focused on the decision process adopted by consumers and borrowed concepts from
behavioural sciences field. Some of these models have been discussed hereunder.

 The Howard Sheth Model of Buying Behaviour:

The Howard-Sheth model provides an integrating framework for a very sophisticated

comprehensive theory of consumer behaviour. The model tries to represent the rational
brand choice behaviour by buyers when faced with situations involving incomplete
information and limited abilities.

The model refers to three levels of decision making:

a. Extensive Problem Solving:

The initial stages of decision making when the buyer has little information about brands
and has not yet developed a well-defined and structured criteria to make a selection from
the various products (choice criteria).

b. Limited Problem Solving:

In a slightly more advanced stage choice criteria which is well defined but the buyer is
not clear and undecided on the set of brands which will best serve him. In this situation,
the consumer is uncertain on the ‘best brand’ which will suit him (or her).

c. Routinized Response Behaviour:

The stage when buyers have well defined choice criteria along with strong
predispositions towards one brand. In such a situation, there is hardly any confusion in
the consumer’s mind and he is ready to purchase a particular brand with little evaluation
of alternatives.

The model has borrowed the learning theory concepts to explain brand choice behaviour
when learning takes place as the buyer moves from Extensive Problem Solving to
Routinized Problem Solving behaviour.

 The Nicosia Model:

4
In the past few years marketing scholars have built buyer behaviour models taking the
marketing man’s point of view. The Nicosia model is one such buyer behaviour model. It
is also said to be a systems model, because the human being is analysed as a system, with
stimuli as the input to the system and the human behaviour as an output of the system.

This model was developed by Francesco Nicosia, an expert in consumer motivation and
behaviour. Nicosia was one of the pioneers, who attempted to bring into focus the more
complex decision process undertaken by consumers rather than the act of purchase itself.
The Nicosia model tries to explain buyer behavior by establishing a link between the
organisation and its (prospective) consumer.

The model suggests that messages from the first influences the predisposition of the
consumer towards the product or service. Based on the situation, the consumer will have
a certain attitude towards the product. This may result in a search for the product or an
evaluation of the product attributes by the consumer. If the above step satisfies the
consumer, it may result in a positive response, with a decision to buy the product
otherwise the reverse may occur.

The Nicosia model, groups the above activity explanations into four basic areas:

1. Field one has two sub areas – The consumers attribute and the firm’s attributes. The
advertising message sent from the company will reach the consumer’s attributes.
Depending on the way, the message is received by the consumer, a certain attribute may
develop. This newly developed attribute becomes the input for Area two.

2. The second area or area two- is related to the search and evaluation, undertaken by the
consumer, of the advertised product and also to verify if other alternatives are available.
In case the above step results in a motivation to buy the product/service, it becomes the
input for third area.

3. The third area explains how the consumer actually buys the product.

4. And area four is related to the uses of the purchased items. This fourth area can also be
used as an output to receive feedback on sales results by the organization.

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Evaluation of the Model and its Limitations:

The model can be said to be the pioneering efforts by Nicosia to identify the decision
making process carried out by consumers. It is noteworthy to observe that the model has
viewed consumers to be involved in an active role and that they move from general
product knowledge towards specific brand information (knowledge), while being
involved in a purchase behaviour.

However the model is said to have certain limitations. To mention a few-

Firstly, the flow is not complete and does not mention the various factors internal to the
consumer.

Secondly, the assumption about the consumer being involved in the decision process with
no predispositions about the various brands (or firms involved) is restricting.

And thirdly, the firm’s attributes and consumer attributes mentioned in the model seem to
be overlapping.

Inspite of the limitations the model can be said to be a pioneering effort on the part of
Nicosia to influence those who are involved in trying to understand consumer behaviour.

 The Engel – Kollat – Blackwell Model:

This model talks of consumer behaviour as a decision making process in the form of five
step (activities) which occur over a period of time.

 Engel, Blackwell and Miniard (EBM) Model:

This model is a development of the original Engel, Kollat and Blackwell model first
introduced in 1968. It shares certain things with the Howard-Sheth model. Both have
similar scope and have the same level of complexity. Primarily the core of the EBM
model is a decision process, which is augmented with inputs from information processing
and other influencing factors also.

 Webster and Wind Model of Organisational Buying Behaviour:

5
This is a complex model developed by F.E. Webster and Y. Wind, as an attempt to
explain the multifaceted nature of organisational buying behaviour. This model refers to
the environmental, organisational, interpersonal and individual buying determinants,
which influence the organisational buyer(s). These determinants influence both the
individual and group decision making processes and consequently the final buying
decisions.

The environmental determinants comprise of the physical and technological factors,

economic, political, legal and socio cultural environmental factors. These are external
factors which cannot be controlled, but an understanding of the same may be crucial to
succeed.

The organisational determinant is based on Harold Leavitt’s four elements of buying

organisation namely-people, technology, structure and task. This is seen in ‘Buying
Centre’, mentioned. The buying concepts emphasise the fact that a number of people
participate in the buying decision process including individuals and groups from the
various functional areas in the organisation.

An individual may be involved in one or more buying roles during organisational

buying these roles could be of:

(a) Users- The ultimate users who often initiate the buying process and help in defining
specifications.

(b) Influencers- They may or may not be directly connected with the decision, but their
views or judgments of a product or a supplier carry a lot of weightage.

(c) Buyers- People who negotiate the purchase.

(d) Deciders- People who take the actual/decision (they may be formal or informal
decision makers).

(e) Gate Keeper- The person who regulates the flow of information.

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This model is a valuable contribution and helps in revealing the whole range of direct and
indirect influences, which affect the organisational buying behaviour. However, the
limitation is that this model provides only a static representation of a dynamic situation.

 The Sheth Model of Industrial Buying:

This model concentrates on the purchasing process and highlights the importance of
four main factors:

I. The expectations of the individuals making up the DMU (Decision Making Unit).

II. The characteristics of both the product and the organization.

III. The nature of the decision making process.

IV. The situational variables.

The models which help in the understanding of consumer behaviour

are:

1. Marshallian Model.

2. Freud’s Model.

3. Pavlovian Model

4. Howard-Sheth Model.


Marshallian Model:

This model is based on the assumption that consumers have complete knowledge of their
wants and of all available means to satisfy them. This model is based on the law of
diminishing marginal utility. This model states that expenditures vary directly with
income (price effect); lesser the price of the substitute product, lesser will be the utility of

5
the product first bought (substitution effect); and more quantity will be purchased when a
person’s income is increased (income effect).

The main criticism of this model is that it assumes the homogeneity of the market and
similarity of buyer behaviour. It ignores the aspects such as motivation, perception,
learning, attitude and socio cultural factors.


Freud’s Model:

Based on his psychoanalytic theory of personality, Freud proposed that the human
personality consists of three interacting systems – the id, the superego and the ego.

The id is conceptualised as primitive and impulsive drives such as – thirst hunger and
sex. The super ego is conceptualised as the individual’s internal expression of society’s
moral ethical code of conduct. The ego attempts to balance the impulsive demands of the
id and the socio-cultural constraints of the super ego.

Researchers who apply Freud’s theory to the study of consumer personality that human
drives are largely unconscious and the consumers are primarily unaware of their true
reasons for their buying behaviour. In other words, they consider the consumer’s
appearance and possessions (e.g., clothing, jewelry, shoes and so forth) as reflections of
the individual’s personality.


Pavlovian Model:

This model is named after the Russian physiologist Ivan Pavlov. In his experiments,
Pavlov sounded a bell and then immediately applied a meat paste to the dogs’ tongues,
which caused them to salivate.

The dogs associated the bell sound (the conditioned stimulus) with the meat paste (the
unconditioned stimulus) and, after a number of pairings, gave the same unconditioned
response (salivation) to the bell alone as they did to the meat paste.

In a consumer behaviour context, an unconditional stimulus might consist of a well-

known brand symbol (such as – the Microsoft windows software programme) which
implies technological superiority and trouble-free operation (the unconditional response).

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
Howard-Sheth Model:

In this model four sets of variables are deemed to determine consumer behaviour.

They are:

i. Stimulus – Input variables which are provided by three types of stimuli namely (a)
significative stimuli (e.g., physical tangible characteristics of a product) (b) symbolic
stimuli (e.g., a person’s perception of product’s characteristics) and (c) social stimuli
(Provided by family, friends, social groups etc.).

ii. Internal variables that together show the state of the buyer (buyer’s motives, attitudes,
experiences, perceptions etc.;)

iii. Exogenous variables that affect the buyer indirectly (these include social class,
culture, time pressure and financial status of the buyer).

Response-output variables in terms of buyer’s behaviour based upon interaction of the

first three sets of variables.

All the four variables are linked in a very systematic and logical manner. Much of
consumer behaviour is repetitive. Consumers tend to store information in their memory,
and establish a routine in their decision process.

Models of Consumer Behaviour – 4 Main Models: The Economic Model, The

Learning Model, The Psychoanalytic Model and The Sociological Model

The influence of the various social sciences such as economics, psychology, sociology
and anthropology has promoted marketing experts to propound certain models for
explaining buyer’s behaviour.

Broadly, they include:

1. The economic model,

2. The learning model,

5
3. The psychoanalytic model, and

4. The sociological model.

1. The Economic Model:

According to the economic model of buyer behaviour, the buyer is a rational man and his
buying decisions are totally governed by the concept of utility. If he has a certain amount
of purchasing power, a set of needs to be met and a set of products to choose from, he
will allocate this amount over the set of products in a very rational manner with the
intention of maximizing the utility or benefits.

2. The Learning Model:

According to the learning model, which takes its cue from the Pavlovian stimulus –
response theory, buyer behaviour can be influenced by manipulating the drives, stimuli
and responses of the buyer. The model rests on man’s ability at learning, forgetting and
discriminating.

3. The Psychoanalytical Model:

The psychoanalytical model draws mainly from Freudian Psychology. According to this
model, the individual consumer has a complex set of deep seated motives that drive him
towards certain buying decisions. The buyer has a private world with all his hidden fears,
suppressed desires and totally subjective longings. His buying action can be influenced
by appealing to these desires and longings.

4. The Sociological Model:

According to the sociological model, the individual buyer is influenced by society – by

intimate groups as well as social classes. His buying decisions are not totally governed by
utility, he has a desire to emulate, follow and fit in with his immediate environment. And,
several of his buying decision may be governed by societal compulsions.

The ‘inputs’ (stimuli) that the consumer receives from his or her environment are:

5
i) Significative – the real (physical) aspects of the product or service (which the company
make use of)

ii) Symbolic – the ideas or images attached by the supplier (for example by advertising)

iii) Social – the ideas or images attached to the product or services by ‘society’ (for
example, by reference groups).

The ‘outputs’ are what happens, the consumer’s actions, as observable results of the input
stimuli. Between inputs and outputs are the ‘constructs’, the processes which the
consumer goes through to decide upon his or her actions.

These can be grouped into two areas:

a) Perceptual – those concerned with obtaining and handling information about the
product or service.

b) Learning – the processes of learning that lead to the decision itself.

In the domain of evolutionary economics, consumers are seen as active agents following
rules of behaviour, fairly easy to follow and implement because they require only a
limited amount of information and capability of elaboration.

5
 CHAPTER 2

REVIEW OF LITERATURE

5
REVIEW OF LITERATURE

Dewan and Chen, 2005; Kreyeretal., (2003) "Acknowledgment and Use of Mobile
Payments" Studies recommend that there is a general buyer enthusiasm towards utilizing
versatile installment applications. The underlying reception of portable installments has
not, nonetheless, been as fast or far reaching of course.

Mallat (2007) "Investigating shopper appropriation of versatile installments - A

subjective report" This paper exhibits a subjective report on customer reception of
portable installments. The discoveries recommend that the relative preferred standpoint
of versatile installments is not quite the same as that predefined in appropriation
hypotheses and incorporate freedom of time and place, accessibility, conceivable
outcomes for remote installments, and line evasion. Besides, the reception of portable
installments was observed to be dynamic, contingent upon certain situational elements,
for example, an absence of other installment strategies or criticalness. A few different
hindrances to selection were additionally distinguished, including premium evaluating,
many-sided quality, an absence of minimum amount, and saw dangers.

Dahlberg et. al., (2007) "Past, present and eventual fate of portable installments
inquire about: A writing audit" proposed a structure of four possibility and five
aggressive drive elements of versatile installment look into. The examination analyzed
the two most essential calculates contemporary portable installments explore to be
specific, versatile installment advances and shopper point of view of portable
installments.

MandeepKaur and KamalpreetKaur(2008), in their article, "Improvement of

Plastic Cards Market: Past, Present and Future Scenario in Indian Banks" the
researcher says that Indian saving money segment is tolerating the test of data innovation
as every one of the gatherings of investors have now remembered it as fundamental
necessity for their survival and development in future Despite the solid advances in
installments, an expected 90 percent of individual utilization consumption in India is as
yet made with money which shows the gigantic development capability of this business.

5
So this can be considered as insignificant starting which shows the brilliant future
prospects of plastic card showcase in India.

Nayak, Tapan Kumar and Manish Agarwal (2008) in their paper "Buyer's conduct
in choosing Mastercards" talked about the elements impacting the choice of charge
cards among [Link] The central point calls attention to by them are benefit offers,
limited time offers, premium advantages, money benefits, simplicity of installments,
installment charges, card advantages and time advantage.

Ashish Das, and RakhiAgarwal, (2010) in their article "Cashless Payment System in
India-A Roadmap" Cash as a method of installment is a costly suggestion for the
Government. The nation needs to move far from money based towards a cashless
(electronic) installment framework. This will help diminish money administration cost,
track exchanges, check charge evasion/misrepresentation and so forth., upgrade
budgetary consideration and incorporate the parallel economy with standard.

(Pulina,2011) "Do Digital Wallets as a Payment Method Influence Consumer in Their

Buying Behavior? With the coming of innovation, customers have a huge exhibit of
installment modes which encourages installment for exchanges by being more
advantageous, worthy and open.

Anupama Sharma (2012) in her examination paper "Plastic card fakes and the
counter measures towards a more secure installment component" have focus light on
the quantity of cheats expanded impressively in the utilization of plastic cards as if there
should be an occurrence of plastic card fakes the most influenced parties are the vendors
of products and ventures as they need to hold up under the full obligation for misfortunes
because of fakes, the banks additionally bears some cost particularly the circuitous cost
though the cardholders are minimum influenced due to restricted customer risk and
reasoned that every one of these misfortunes can be managed by making the judicious
utilization of the new innovation and taking the separate counter measures.

Bansi Patel and Urvi Amin (2012) in their exploration paper "Plastic Money : Road
may Towards Cash Less Society" examined that now days in any exchange Plastic cash
winds up noticeably unavoidable piece of the exchange and with it life turns out to be all

5
the more simple and advancement would assume better position and alongside the plastic
cash it ends up plainly conceivable that control the cash clothing and viable usage of
budgetary framework would end up noticeably conceivable which would likewise
accommodating for charge enactment.

Olalekan S. Akinola (2012) "Cashless Society, Problems and Prospects, Data Mining
Research Potentials" depicted that there is most likely, our current society is step by
step getting the cashless disorder. E-installments, ATM cards and others are presently the
request of the day at our work-places. This paper investigates the achievability of
presenting cashless methods for business exchanges into our general public and the
security dangers related with it. The paper clarifies the possibilities of applying
information mining procedures to successfully control the security dangers lastly
introduces a model for learning extraction in a cashless domain. They additionally
represent various difficulties and dangers identified with, in any event, specialized
measures, information security, lawful issues and purchaser conduct Braga and Mazzon
(2013) Do Digital Wallets as a Payment Method Influence Consumer in Their Buying
Behavior?" proposed an exhaustive 'Installment Mode Influencing Consumer Purchase
Model', considering the fleeting partition, worldly introduction, discretion and agony of
installment develops, and including the computerized wallet as another installment mode.

Mc Kinsey and Co. (2014) "Speedier installments: Building a business, not only a
framework "the US purchasers excitement for specific advantages empowered by
portable installments stayed high, particularly around less demanding use of coupons and
reliability focuses. In any case, fervor is directing as conveyance of these advantages
stays divided crosswise over numerous suppliers, with none of them normally
acknowledged by a wide arrangements of traders. Truth be told, the outcomes
demonstrated that customers were less amped up for a large number of the different
incentives empowered by versatile installments (counting "leaving their wallet at home"),
and they were more incredulous about the wide guarantees of portable wallets than they
were one year prior.

SushmaPatil (2014) "Effect Of Plastic Money On Banking Trends In India" is

inspected that Indian clients think that its less demanding to make physical installment

6
(Visa or charge card installments) as opposed to conveying excessively money adding to
the development of plastic cash in the nation. It benefits the buyer through improved item
offerings at a lower cost and that too with lucrative arrangements enchanted with rewards
conspire, steadfastness extra focuses, limited time battles and so forth. The landing of
shopping centers multiplexes, web based shopping stores and shopping buildings urge the
clients to make utilization of plastic cards.

Piyush Kumar (2015) "An Analysis Of Growth Pattern Of Cashless Transaction

System" broke down that instructing clients about Cashless Transaction System there is a
need to teach them about the separating variables of the Cashless Transaction System.
Since Visa and Master Card are promoting routinely and in this way builds mindfulness.
Attention to Technology serious conveyance channels like net keeping money, portable
managing an account, and so on have made a win-win circumstance by broadening
extraordinary comfort and various alternatives for client. Banks have been utilizing
innovation to lessen cost and improve proficiency, profitability and client
accommodation.

KhuramShafiq and Khalil Ahmad (2015) Is plastic Money Matter for Consumer
Buying Behavior? This examination gives the affirming data since buyers feel good in
spending through plastic cash .as of late because of extraordinary advancement of
innovation use of plastic cash has turned out to be acknowledged all around the globe.
Overall population has likewise ended up being a gigantic client of these plastic cash
modes. The essential reason behind leading this investigation was to watch the utilization
conduct of client. The discoveries from led examines have discover to be generally
positive.

BabitaSingla, Manish Bansal (2015) in their research the researcher have supported
that the shoppers are happy with plastic use, and the non-platinum card clients are
intrigued to utilize the card for buys and mean to utilize the card in not so distant future.
The mindfulness level and nature with such installment framework is additionally high
however advertisers and bank experts are not giving careful consideration to increment
such charge card utilize. Additionally, the exploration highlights the issues confronted by

6
customers while utilizing the card for installment. The most critical element impacting
their check card installment conduct was seen convenience and helpfulness of card.

BappadtiyaMukhopadhyay (2016) tell us by enabling MFIs to create and keep up the

basic systems of cashless exchanges, the importance for the MFIs to advance cashless is
produced. Note that given that cashless exchanges will leave computerized impressions,
distorting of cashless exchanges will be completely evaded. It additionally proposed that
further suggest certain tax exempt or motivating force on cashless exchanges for family
unit costs. Mindfulness about the upsides of cashless installments: A deliberate push to
make people mindful of the benefits of cashless installments is the beginning stage. Boost
installments into accounts: The positive connection between customary inflows into
accounts and cashless installments is solid. Evacuation of e-installment costs: Merchant
Discount Rates and accommodation accuses related of e-installments must be diminished.

Dr. Stitch ShewtaRathore (2016) "Appropriation Of Cashless transcation By

Consumers" her research help us to know that computerized wallets are rapidly getting
to be standard method of online installment. Customers are embracing advanced wallets
at end unfathomably quick pace, to a great extent because of comfort and convenience.
furthermore, additionally prescribe advertising and advancements projects should
directed to make mindfulness among non-clients. Offers and reward focuses on making
installments through cashless transcationcan increment its notoriety and appropriation
also. To expand the utilization of advanced wallet, it is required to instruct shoppers
about the advantages of a cashless transcationin rearranging and streamlining their
buying encounters.

RoopaliBatra , NehaKalra (2016) "Are Digital wallets The Newcurrency?" her

research let us know in a period of digitalization, the examination intends to contemplate
the client recognition, utilization design inclinations and fulfillment level with respect to
advanced wallets in view of an investigation of 52 respondents. It additionally recognizes
the hindrances and difficulties to the selection of the same. The outcomes demonstrate
that there exists a tremendous undiscovered market for computerized wallets both
regarding expanding mindfulness and also its use. Likewise, the recurrence and
estimation of every exchange utilizing advanced wallets stays restricted. Web based

6
shopping risen as the prime reason for use of advanced wallets. The investigation
watched that respondents lean toward utilizing wallets since they spare time and are
anything but difficult to utilize and get to. In any case, security of cash executed remains
their real concern. Security issues as far as dread of money misfortune and absence of
ease of use for worldwide exchanges are the prime obstructions to its reception. While
the time of respondent had some huge effect on sorts, sum and heaps of computerized
wallets, sex simply affected the heap of advanced wallets. Additionally research could
investigate in more noteworthy profundity the relationship between other statistic factors
like salary level, instructive level, nature of occupation, conjugal status and so forth.

K. C. Balaji and K. Balaji (2016)"A Study On And Its Impact On Cashless

Transactions" According to this the development of the cashless exchange framework is
achieving new statures. Individuals tend to move to cashless exchanges. It is on the right
track to state that the cashless framework is a prerequisite as well as a requirement for the
general public. However, then again, the danger of digital wrongdoing is especially
higher as all the cashless exchanges are done over web. So appropriate and finish
mindfulness must be made to the general population to keep their charge and Mastercards
safe and to utilize the web saving money and the advanced wallet in a most secure
manner. So as to rebuff the digital lawbreakers, the legitimately organized digital police
compel with top of the line criminological labs and innovation must be made.

KunalTaheam, Rahul Sharma and saurabhGoswami (2016) "Drivers Of Digital

Wallet Usage: Implications For Leveraging Digital Marketing" The outcomes from this
investigation highlighted on various elements that inspired individuals to utilize
computerized wallets for making installments. Individuals in Punjab have been found
have been discovered utilizing advanced wallets because of the intentions of
controllability and security, societal impact and helpfulness and requirement for
execution improvement. This investigation demonstrates that individuals of Punjab utilize
any sort of advanced wallet because of one or these distinguished intentions. Advertiser's
have to base their arrangements for advancing computerized wallets around these thought
processes that individuals consider while utilizing such items or administrations.

6
 CHAPTER 3

RESEARCH METHODOLOGY

6
 RESEARCH METHODOLOGY

A research methodology or involves specific techniques that are adopted in research

process to collect, assemble and evaluate data. It defines those tools that are used to
gather relevant information in a specific research study. Surveys, questionnaires and
interviews are the common tools of research.

Research:

Research is defined as careful consideration of study regarding a particular concern or

problem using scientific methods. According to the American sociologist Earl Robert
Babbie, “research is a systematic inquiry to describe, explain, predict, and control the
observed phenomenon. It involves inductive and deductive methods.”

Data Collection
Data collection is defined as the procedure of collecting, measuring and analyzing accurate
insights for research using standard validated techniques. A researcher can evaluate their
hypothesis on the basis of collected data. In most cases, data collection is the primary and
most important step for research, irrespective of the field of research. The approach of data
collection is different for different fields of study, depending on the required information.
The most critical objective of data collection is ensuring that information-rich and reliable
data is collected for statistical analysis so that data-driven decisions can be made for
research.

Types of Data Collection Methods

Data collection methods can be divided into two categories: Quantitative
Methods and Qualitative Methods.
1. Quantitative Methods:
Quantitative techniques for market research and demand forecasting usually make use of
statistical tools. In these techniques, demand is forecast based on historical data. These
methods of primary data collection are generally used to make long-term forecasts.

6
Statistical methods are highly reliable as the element of subjectivity is minimum in these
methods.

Time Series Analysis

The term time series refers to a sequential order of values of a variable, known as a trend,
at equal time intervals. Using patterns, an organization can predict the demand for its
products and services for the projected time.

Smoothing Techniques
In cases where the time series lacks significant trends, smoothing techniques can be used.
They eliminate a random variation from the historical demand. It helps in identifying
patterns and demand levels to estimate future demand. The most common methods used
in smoothing demand forecasting techniques are the simple moving average method and
the weighted moving average method.

Barometric Method
Also known as the leading indicators approach, researchers use this method to speculate
future trends based on current developments. When the past events are considered to
predict future events, they act as leading indicators.

2. Qualitative Methods:

Qualitative methods are especially useful in situations when historical data is not
available. Or there is no need of numbers or mathematical calculations. Qualitative
research is closely associated with words, sounds, feeling, emotions, colors, and other
elements that are non-quantifiable. These techniques are based on experience, judgment,
intuition, conjecture, emotion, etc.

Quantitative methods do not provide the motive behind participants’ responses, often
don’t reach underrepresented populations, and span long periods to collect the data.
Hence, it is best to combine quantitative methods with qualitative methods.

6
Surveys

Surveys are used to collect data from the target audience and gather insights into their
preferences, opinions, choices, and feedback related to their products and services. Most
survey software often a wide range of question types to select.

You can also use a ready-made survey template to save on time and effort. Online
surveys can be customized as per the business’s brand by changing the theme, logo, etc.
They can be distributed through several distribution channels such as email, website,
offline app, QR code, social media, etc. Depending on the type and source of your
audience, you can select the channel.

Once the data is collected, survey software can generate various reports and run analytics
algorithms to discover hidden insights. A survey dashboard can give you the statistics
related to response rate, completion rate, filters based on demographics, export and
sharing options, etc. You can maximize the effort spent on online data collection by
integrating survey builder with third-party apps.

Polls

Polls comprise of one single or multiple choice question. When it is required to have a
quick pulse of the audience’s sentiments, you can go for polls. Because they are short in
length, it is easier to get responses from the people.

Similar to surveys, online polls, too, can be embedded into various platforms. Once the
respondents answer the question, they can also be shown how they stand compared to
others’ responses.

Interviews

6
In this method, the interviewer asks questions either face-to-face or through telephone to
the respondents. In face-to-face interviews, the interviewer asks a series of questions to
the interviewee in person and notes down responses. In case it is not feasible to meet the
person, the interviewer can go for a telephonic interview. This form of data collection is
suitable when there are only a few respondents. It is too time-consuming and tedious to
repeat the same process if there are many participants.

Delphi Technique

In this method, market experts are provided with the estimates and assumptions of
forecasts made by other experts in the industry. Experts may reconsider and revise their
estimates and assumptions based on the information provided by other experts. The
consensus of all experts on demand forecasts constitutes the final demand forecast.

Focus Groups

In a focus group, a small group of people, around 8-10 members, discuss the common
areas of the problem. Each individual provides his insights on the issue concerned. A
moderator regulates the discussion among the group members. At the end of the
discussion, the group reaches a consensus.

Questionnaire

A questionnaire is a printed set of questions, either open-ended or closed-ended. The

respondents are required to answer based on their knowledge and experience with the
issue concerned. The questionnaire is a part of the survey, whereas the questionnaire’s
end-goal may or may not be a survey.

Data Analysis

6
Data analysis is defined as a process of cleaning, transforming, and modeling data to
discover useful information for business decision-making. The purpose of Data Analysis
is to extract useful information from data and taking the decision based upon the data
analysis.

A simple example of Data analysis is whenever we take any decision in our day-to-day
life is by thinking about what happened last time or what will happen by choosing that
particular decision. This is nothing but analyzing our past or future and making decisions
based on it. For that, we gather memories of our past or dreams of our future. So that is
nothing but data analysis. Now same thing analyst does for business purposes, is called
Data Analysis

Types of Data Analysis: Techniques and Methods

There are several types of Data Analysis techniques that exist based on business and
technology. However, the major Data Analysis methods are:

 Text Analysis
 Statistical Analysis
 Diagnostic Analysis
 Predictive Analysis
 Prescriptive Analysis

Text Analysis

Text Analysis is also referred to as Data Mining. It is one of the methods of data analysis
to discover a pattern in large data sets using databases or data mining tools. It used to
transform raw data into business information. Business Intelligence tools are present in
the market which is used to take strategic business decisions. Overall it offers a way to
extract and examine data and deriving patterns and finally interpretation of the data.

Statistical Analysis

6
Statistical Analysis shows "What happen?" by using past data in the form of dashboards.
Statistical Analysis includes collection, Analysis, interpretation, presentation, and
modeling of data. It analyses a set of data or a sample of data. There are two categories of
this type of Analysis - Descriptive Analysis and Inferential Analysis.

Descriptive Analysis

It analyses complete data or a sample of summarized numerical data. It shows mean and
deviation for continuous data whereas percentage and frequency for categorical data.

Inferential Analysis

It analyses sample from complete data. In this type of Analysis, you can find different
conclusions from the same data by selecting different samples.

Diagnostic Analysis

Diagnostic Analysis shows "Why did it happen?" by finding the cause from the insight
found in Statistical Analysis. This Analysis is useful to identify behavior patterns of data.
If a new problem arrives in your business process, then you can look into this Analysis to
find similar patterns of that problem. And it may have chances to use similar
prescriptions for the new problems.

Predictive Analysis

Predictive Analysis shows "what is likely to happen" by using previous data. The
simplest data analysis example is like if last year I bought two dresses based on my
savings and if this year my salary is increasing double then I can buy four dresses. But of
course it's not easy like this because you have to think about other circumstances like
chances of prices of clothes is increased this year or maybe instead of dresses you want to
buy a new bike, or you need to buy a house!

7
So here, this Analysis makes predictions about future outcomes based on current or past
data. Forecasting is just an estimate. Its accuracy is based on how much detailed
information you have and how much you dig in it.

Prescriptive Analysis

Prescriptive Analysis combines the insight from all previous Analysis to determine which
action to take in a current problem or decision. Most data-driven companies are utilizing
Prescriptive Analysis because predictive and descriptive Analysis are not enough to
improve data performance. Based on current situations and problems, they analyze the
data and make decisions.

1. Objectives Of The Study:

• To know the consumer preference for Electric vs Petrol vehicles
• To study a few factors that influences the consumers to prefer Electric Vehicles
over Petrol Vehicles and Vice Versa
• To understand that is it worth it to upgrade from Petrol Vehicles to electric
vehicles.

2. Purpose of the Study:

This study was majorly selected to understand the preference and opinion of Consumer
Behavior Towards Online Payment. The crucial idea of the study is to see how and would
the consumers would upgrade from Petrol Vehicles to electric vehicles.
3. Data collection:

There are two types of data used for the study of consumer preference for Electric vs
Petrol vehicles

 Primary data

 Secondary data

7
4. Primary data:

Primary Data is the collection of data during the course of the study or through direct
communication with the respondent in one or the other form. The collection of data in
this chapter is done by the means of Questionnaire.

5. Secondary data:

Secondary data is used to strengthen the primary data by referring the company
reports, books, websites and customer reviews.

6. Sample Size:

The sample size for the data collection is 49 respondents for consumer behavior
towards online payment.

7. Sampling Techniques:

Random Sampling method is used for the purpose of arriving at a sample size.

8. Research Tool:

Research tool contains 14 Questionnaire. Questionnaire type contains tick and

mark options.

9. Limitation:
 Time Constraints
 Area Constraints
 Lack of respondent interest
 Place Constraints
 Lack of Subject Knowledge of Respondents

7
 CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

7
1. GENDER

Table 4.1

GENDER PERCENTAGE (%) RESPONDENTS

MALE 38 39

FEMALE 62 65

OTHER 0 0

As shown in Table 4.1, out of 104 responses for the questionnaire, 39 were
Males while 65 were Females.

Graph 4.1

7
 Gender
MaleFemaleOther

38%

62%

INTERPRETATION:

The following pie chart tells us that out of 104 responses for the questionnaire, 38% were
Males while 62% were Females.

2 AGE GROUP

7
 Table 4.2

AGE GROUP PERCENTAGE OF RESPONDENTS

RESPONDENTS (%)

UNDER 18 12.5 13

18 – 30 60.60 63

31 – 45 23.1 24

Above 45 3.8 4

As shown in Table 4.2, the respondents are of various age groups: 13

respondedin the age group of under 18 have responded, next category is 18
to 30 age group which has response of 63 respondents which is highest
among all age groups which consists of College going students, and office
going people. Next age group is 31 to 45 with 24 respondents mainly it is
working class and above 45 there are 4 respondents which very less in the
number of respondance because in this age group people are mainly old age
people.

Graph 4.2

7
 AGE
UNDER 1818 - 3031 - 45
45 ABOVE

4% 13%
23%

61%

INTERPRETATION

This pie chart describes various age groups: 18-30yrs have respondend 61 % which is
highest among all age groups which consists of College going students and office going
people, next category is 31 to 45 yrs age group which has response of 23%. Next age
group is Under 18 with 12% mainly it is college going student and above 45 there is 4%
mainly it’s old age people.

3 Do you use online payment?

7
 Table 4.3

DO YOU USE PERCENTAGE OF RESPONDENTS

ONLINE PAYMENT RESPONDENTS (%)

YES 89.4 93

NO 10.6 11

As shown in Table 4.3, the preference of Respondents for uses online payment. We
can see that 93 Respondents say’s YES whereas 11 Respondents say NO.

Graph 4.3

7
 Do you use online payment?

11%

YES NO

89%

INTERPRETATION

This pie chart describes, the preference of Respondents for uses online payment. We can
see that Out of 104 Respondents 93 Respondents say’s YES whereas 11 Respondents say
NO.

4 If you have never used online payment, what is the reason?

7
 Table 4.4

NEVER USED ONLINE RESPONDENTS IN RESPONDENTS

PAYMENT PERCENTAGE (%)

Don't get on with the 3.8 4

technology

Never heard of online 1.9 2

payment

Concerned about security 9.6 10

(don't trust online payment)

Can't Say 84.6 88

As shown in Table 4.4, the who never used the online payment because of
the some drawback of online payment system. We can observe that last
options “Can’t Say option has response of 88 which is highest among all
followed by “Concerned about security (don't trust online payment)” with a

response of 10 , “Don't get on with the technology” with a response of 4 and

“Never heard of online payment” with a least number of response that is 2,
because most of the respondent are of yonger age and they prefer online
payment more than cash payment.

Graph 4.4

8
 If you have never used online payment, what
is the reason?
2%

Don't get on with the

4% technology
10%
Never heard of online payment
Concerned about security (don't trust on
payment) Can't Say

85%

INTERPRETATION

This pie chart describes, the who never used the online payment because of
the some drawback of online payment system. We can observe that last
options “Can’t Say option has response of 85% which is highest among all
followed by “Concerned about security (don't trust online payment)” with a
response of 9% , “Don't get on with the technology” with a response of 4%
and “Never heard of online payment” with a least number of response that is
2%, because most of the respondent are of yonger age and they prefer online
payment more than cash payment.

5 How often do you use online payment?

8
 Table 4.5

HOW OFTEN DO YOU RESPONDENTS IN RESPONDENTS

USE ONLINE PERCENTAGE (%)

PAYMENT

Daily 26.9 28

Weekly 34.6 36

Monthly 28.8 30

Never 9.6 10

As shown in Table 4.5, 28 of the respondents have said daily they use online
payment for their day to day transaction, whereas 36 of the respondents said
that they use weekly online payment system for their transaction and 30
respondents use monthly online payment for their transaction whereas only
10 respondents never use online payment for their transaction.

Graph 4.5

8
 How often do you use online payment?
DailyWeeklyMonthlyNever

10%
27%

29%

35%

INTERPRETATION

This pie chart describes, 26.9% of the respondents have said daily they use
online payment for their day to day transaction, whereas 34.6% of the
respondents said that they use weekly online payment system for their
transaction and 28.8% respondents use monthly online payment for their
transaction whereas only 9.6% respondents never use online payment for
their transaction.

6 Which payment wallets you prefer to use for daily purpose?

8
 Table 4.6

Payment Wallets You RESPONDENTS IN RESPONDENTS

Prefer To Use For Daily PERCENTAGE (%)

Purpose

G PAY 38.5 40

PAYTM 28.8 30

PHONEPEE 19.2 20

AMAZON PAY 3.8 4

OTHERS 9.7 6

As shown in Table 4.6,Out of 104 respondents 40 of the respondents use

Google pay which is highest among all the other wallets for online
transaction and consumer also find Google pay easy to use for the online
transaction, the second one is paytm with 30 respondents which second
mostly use by the consumer for the online transaction and third one which is
mostly use by the consumer is Phonepee with 20 respondent whereas only 4
respondent use amazon pay for their online transaction and 6 respondent use
other wallets for their online transaction.

Graph 4.6

8
 Which payment wallets you prefer to use for
daily purpose?

10%
4% G PAY
39% PAYTM
19% PHONEPEE AMAZON PAY OTHER

29%

INTERPRETATION

This pie chart describes Out of 104 respondents 38% of the respondents use
Google pay which is highest among all the other wallets for online
transaction and consumer also find Google pay easy to use for the online
transaction, the second one is paytm with 29% respondents which second
mostly use by the consumer for the online transaction and third one which is
mostly use by the consumer is Phonepee with 19% respondent whereas only
4% respondent use amazon pay for their online transaction and 10%
respondent use other wallets for their online transaction.

8
7 Do you think that using online payment makes your life easier and
fast

Table 4.7

RESPONSE PERCENTAGE OF RESPONDENTS

RESPONDENTS (%)

Yes 95.2 99

No 1 1

Can’t Say 3.8 4

As shown in Table 4.6,Out of 104 respondents 99 respondent says that they

think that online payment makes their life easier and fast where as 1
respondent do not says that online payment makes their life easier and fast
and 4 respondent are confused or can’t say that online payment makes their
life easier and fast.

8
 Graph 4.7

Do you think that using online payment makes your life easier and f
1%4%

YES NO
CAN'T SAY
95%

INTERPRETATION

This pie chart describes, that Out of 104 respondents 95% respondent says
that they think that online payment makes their life easier and fast where as
1% respondent do not says that online payment makes their life easier and
fast and 4% respondent are confused or can’t say that online payment
makes their life easier and fast.

8
8 Have you ever lost money due to digital fraud

Table 4.8

RESPONSE PERCENTAGE OF RESPONDENTS

RESPONDENTS (%)

Yes 9.6 10

No 90.4 94

As shown in Table 4.8, the majority of the 94 respondents have said NO that
they Have you ever lost money due to digital fraud. Whereas only 10 of the
respondents have said YES because they have lost money due to digital
fraud.

8
 Graph 4.8

Have you ever lost money due to digital fraud

10%

YES NO

90%

INTERPRETATION

This pie chart describes ,that the majority of the 90% respondents have said
NO that they Have you ever lost money due to digital fraud. Whereas only
10% of the respondents have said YES because they have lost money due to
digital fraud.

8
9 Do you trust the security of online payment

Table 4.9

RESPONSE PERCENTAGE OF RESPONDENTS

RESPONDENTS (%)

Yes 75 78

No 5.4 6

Not at all 3.8 4

Can’t Say 15.4 16

The above table 4.9 Shows that out of 104 respondent 78 respondent said
YES and 6 respondent said NO and 4 of the respondent said not at all they
trust the security of the online payment whereas 16 respondent said CAN’T
SAY they rarelty use online payment system.

9
 Graph 4.9

Do you trust the security of online payment

15%
4% YES
5% NO
NOT AT ALL CAN'T SAY

75%

INTERPRETATION

This pie chart describes that out of 104 respondent 75% respondent said
YES and 5% respondent said NO and 4% of the respondent said not at all
they trust the security of the online payment whereas 16% respondent said
CAN’T SAY they rarelty use online payment system

9
10 Do you feel online payment saves your time and money

Table 4.10

RESPONSE PERCENTAGE OF RESPONDENTS

RESPONDENTS (%)

Yes 100 104

No 0 0

As shown in Table 4.10, the majority of the 104 respondents have said YES
that they feel online payment saves your time and money. Whereas 0
(ZERO) of the respondents have said NO because they donot feel online
payment saves your time and money

9
 Graph 4.10

Do you feel online payment saves your time and money

YES NO

100%

INTERPRETATION

This pie chart describes , the majority of the Respondents out of 104, 100%
respondents have said YES that they feel online payment saves your time
and money. Whereas 0% (ZERO) of the respondents have said NO because
they donot feel online payment saves your time and money .

9
11 Do you feel online payment system better than cash

.
Table 4.11

RESPONSE PERCENTAGE OF RESPONDENTS

RESPONDENTS (%)

Yes 88.5 92

No 1 1

Can’t Say 10.6 11

As shown in Table 4.6,Out of 104 respondents 92 respondent says YES that

they feel online payment system better than cash where as 1 respondent NO
that they do not feel online payment system better than cash and 11
respondent are confused or can’t say that they feel online payment system
better than cash.

9
 Graph 4.11

Do you feel online payment system better than cash

1%

11%
YES NO
CAN'T SAY
88%

INTERPRETATION

This pie chart describes that Out of 104 respondents 88% respondent says
YES that they feel online payment system better than cash where as 1%
respondent NO that they do not feel online payment system better than
cash and 11% respondent are confused or can’t say that they feel online
payment system better than cash.

9
12 Online payment offers a great choice for consumers and merchants
in the way they send and receive payment

Table 4.12

RESPONSE PERCENTAGE OF RESPONDENTS

RESPONDENTS (%)

Yes 98.1 102

No 1.9 2

As shown in Table 4.10, the majority of the 102 respondents have said YES
for Online payment offers a great choice for consumers and merchants in
the way they send and receive payment. Whereas Only 2 of the respondents
have said NO because for Online payment offers a great choice for
consumers and merchants in the way they send and receive payment.

9
 Graph 4.12

ment offers a great choice for consumers and merchants in the way they send and r
2%

98%

INTERPRETATION

This pie chart describes that the majority of the 98% respondents out of 104
respondents have said YES for Online payment offers a great choice for
consumers and merchants in the way they send and receive payment.
Whereas Only 2% of the respondents have said NO because for Online
payment offers a great choice for consumers and merchants in the way they
send and receive payment.

9
13 A customer has to be alert to security issues when using online
payment wallets

Table 4.13

RESPONSE PERCENTAGE OF RESPONDENTS

RESPONDENTS (%)

Yes 98.1 102

No 1.9 2

As shown in Table 4.10, the majority of the 102 respondents have said YES
for A customer has to be alert to security issues when using online payment
wallets. Whereas Only 2 of the respondents have said NO A customer has to
be alert to security issues when using online payment wallets.

9
 Graph 4.13

A customer has to be alert to security issues

when using online payment wallets

28%
YES
NO
72%

INTERPRETATION

This pie chart describes that the majority of the 100% respondents out of
104 respondents have said YES for A customer has to be alert to security
issues when using online payment wallets. Whereas Only 2 of the
respondents have said NO A customer has to be alert to security issues
when using online payment wallets

9
14 What are the security measures that could secure you against
various kind of online payment attacks

Table 4.14

RESPONSE PERCENTAGE OF RESPONDENTS

RESPONDENTS (%)

Self awareness in security 19.12 20

Limiting online payment 4.8 5

Security from bank portals 17.3 18

Both A , B and C 56.7 59

OTHER 2.8 2

In the above thabe 4.14. Most of the respondent i.e 59 respondent

selected fourth option i.e Both A , B and C then 20 respondent secleted
option first i.e Self awareness in security after this 18 respondent
seecleted third option Security from bank portals and only 5 respondent
selected second option Limiting Online Payment and 2 respondent opted
the last option i.e Other for the security measures that could secure you
against various kind of online payment attacks.

1
 Graph 4.14

What are the security measures that could

secure you against various kind of online payment attacks
1%2%6%0%

Self awareness in security

Limiting online payment Security from ban
portals
Both A , B and C OTHER

91%

INTERPRETATION

This pie chart describes that most of the respondent i.e 59 respondent
selected fourth option i.e Both A , B and C then 20 respondent secleted
option first i.e Self awareness in security after this 18 respondent seecleted
third option Security from bank portals and only 5 respondent selected
second option Limiting Online Payment and 2 respondent opted the last
option i.e Other for the security measures that could secure you against
various kind of online payment attacks.

10
 CHAPTER 5

FINDINGS AND CONCLUSION

10
Findings:

1. From the above findings, out of 104 respondents 39 respondents are male and 65
respondents are female.
2. Out of 104 respondents there are 12.5 % are Under 18 aged, 60.6 % are 18 – 30yrs,
23.1 % are 31 – 45yrs old, And 3.8 % are aged Above 45yrs.
3. All 104 respondents are the students and mature people who uses the online
payment wallets for their Transaction.
4. The 62% of respondents are Female and 38% of respondents are male.
5. Out of 104 Respondents 89.4% respondents uses online payments and only 10.6%
respondents donot use online payments wallets.
6. Out of 104 Respondents 38.5 prefer Google pay, 28.8% prefer Paytm , 19.2%
prefer Phonepee, 3.8% prefer Amazon pay whereas only 9.7% respondents uses
other online mode of payment. (Mostly use Google pay, Paytm, and Phonepee)
7. Out of 104 respondents 95.2% respondents think that using online payment
makes your life easier and fast whereas 3.8% can’t say that using online
payment makes your life easier and fast.
8. Out of 104 respondents 90.4% respondents have not lost their money due to
digital fraud whereas only 9.6% respondents have lost their money due to digital
fraud.
9. Out of 104 respondents 100% have said Yes that they feel online payment saves
your time and money whereas zero (0) respondents have said NO .
10. Out of 104 respondents 88.5% of the respondents say Yes that they feel online
payment system better than cash and 10.6% of the respondents say can’t say that
what they feel online payment system better than cash.
11. Out of 104 respondents 98.1% respondents consider Online payment offers a
great choice for consumers and merchants in the way they send and receive
payment and 1.9% respondents donot consider Online payment offers a great
choice for consumers and merchants in the way they send and receive payment.
12. Out of 104 respondents 98.1% of the respondents consider customer has to be
alert to security issues when using online payment wallets. and only 1.9% donot

10
consider that customer has to be alert to security issues when using online
payment wallets.

10
Suggestions:

1. The security of the online payment should more so that the people
should trust to do online transaction
2. The infrastructure should be develop for the network so while doing
the payment the internet should be proper and have a good speed
because while doing online payment if internet will drop the payment
will not completed and money of customer will stuck between the
payment gateway.
3. The online payment should made that much easy and secure so that
the bigger amount people can do by online not by going to bank.
4. Online payments awareness to be made for the old age people
because they now also afraid to do the online transaction.
5. The payment wallets app should be easy to use not so complicated
that people could understand to use it.

10
Conclusions:

The study was accomplished to explore consumer behaviour, perceptions and willingness
to use digital wallets or online payments system. Specifilcally the study explored
awareness, usage, likelihood of using smart phones for completing the monetary
transactions. With the increased penetration of internet connectivity and smart phones has
led to an increase in the number of digital wallet users. Digital-wallet is getting more and
more trendier among the consumers. As per the findings of the study, digital-wallet is
getting popularity among the young lots such as students and employees. The study
witnessed that paytm google pay phonepee and amazon pay is leading among the other
wallet providers. When a user is making an online payment via digital-wallets, the
respondents are affected by various assorted factors. One of the main obstacle is security
issues, due to which the users get anxious about his or her confidential information which
may get disclosed. Therefore the digital-wallet providers need to understand and meet the
users trust and expectations. Digital-wallets are growing in INDIA as the consumers are
relying upon the digital life style to make things convenient and faster and the consumers
are embracing digital-wallet with open arms.

10
BIBLIOGRAPHY

10
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References

Dewan and Chen, 2005; Kreyeretal., (2003) "Acknowledgment and Use of Mobile
Payments" Studies recommend that there is a general buyer enthusiasm towards utilizing
versatile installment applications.

Mallat (2007) "Investigating shopper appropriation of versatile installments - A

subjective report" This paper exhibits a subjective report on customer reception of
portable installments. The discoveries recommend that the relative preferred standpoint
of versatile installments is not quite the same as that predefined in appropriation
hypotheses and incorporate freedom of time and place, accessibility, conceivable
outcomes for remote installments, and line evasion.

Dahlberg et. al., (2007) "Past, present and eventual fate of portable installments
inquire about: A writing audit" proposed a structure of four possibility and five
aggressive drive elements of versatile installment look into.

MandeepKaur and KamalpreetKaur(2008), in their article, "Improvement of

Plastic Cards Market: Past, Present and Future Scenario in Indian Banks" the
researcher says that Indian saving money segment is tolerating the test of data innovation
as every one of the gatherings of investors have now remembered it as fundamental
necessity for their survival and development in future Despite the solid advances in
installments

Nayak, Tapan Kumar and Manish Agarwal (2008) in their paper "Buyer's conduct
in choosing MasterCard’s" talked about the elements impacting the choice of charge
cards among customers.

Ashish Das, and RakhiAgarwal, (2010) in their article "Cashless Payment System in
India-A Roadmap" Cash as a method of installment is a costly suggestion for the
Government. The nation needs to move far from money based towards a cashless
(electronic) installment framework.

11
Anupama Sharma (2012) in her examination paper "Plastic card fakes and the
counter measures towards a more secure installment component" have focus light on
the quantity of cheats expanded impressively in the utilization of plastic cards as if there
should be an occurrence of plastic card fakes the most influenced parties are the vendors
of products and ventures as they need to hold up under the full obligation.

Bansi Patel and Urvi Amin (2012) in their exploration paper "Plastic Money : Road
may Towards Cash Less Society" examined that now days in any exchange Plastic cash
winds up noticeably unavoidable piece of the exchange and with it life turns out to be all
the more simple and advancement would assume better position and alongside the plastic
cash.

Olalekan S. Akinola (2012) "Cashless Society, Problems and Prospects, Data Mining
Research Potentials" depicted that there is most likely, our current society is step by
step getting the cashless disorder. E-installments, ATM cards and others are presently the
request of the day at our work-places.

Mc Kinsey and Co. (2014) "Speedier installments: Building a business, not only a
framework "the US purchasers excitement for specific advantages empowered by
portable installments stayed high, particularly around less demanding use of coupons and
reliability focuses.

SushmaPatil (2014) "Effect Of Plastic Money On Banking Trends In India" is

inspected that Indian clients think that its less demanding to make physical installment
(Visa or charge card installments) as opposed to conveying excessively money adding to
the development of plastic cash in the nation.

Piyush Kumar (2015) "An Analysis Of Growth Pattern Of Cashless Transaction

System" broke down that instructing clients about Cashless Transaction System there is a
need to teach them about the separating variables of the Cashless Transaction System.
Since Visa and Master Card are promoting routinely and in this way builds mindfulness.

KhuramShafiq and Khalil Ahmad (2015) Is plastic Money Matter for Consumer
Buying Behavior? This examination gives the affirming data since buyers feel good in

11
spending through plastic cash .as of late because of extraordinary advancement of
innovation use of plastic cash has turned out to be acknowledged all around the globe.

BabitaSingla, Manish Bansal (2015) in their research the researcher have supported that
the shoppers are happy with plastic use, and the non-platinum card clients are intrigued to
utilize the card for buys and mean to utilize the card in not so distant future.

BappadtiyaMukhopadhyay (2016) tell us by enabling MFIs to create and keep up the

basic systems of cashless exchanges, the importance for the MFIs to advance cashless is
produced. Note that given that cashless exchanges will leave computerized impressions,
distorting of cashless exchanges will be completely evaded.

Dr. Stitch ShewtaRathore (2016) "Appropriation Of Cashless transcation By

Consumers" her research help us to know that computerized wallets are rapidly getting
to be standard method of online installment. Customers are embracing advanced wallets
at end unfathomably quick pace, to a great extent because of comfort and convenience.
furthermore, additionally prescribe advertising and advancements projects should
directed to make mindfulness among non-clients.

RoopaliBatra , NehaKalra (2016) "Are Digital wallets The Newcurrency?" her

research let us know in a period of digitalization, the examination intends to contemplate
the client recognition, utilization design inclinations and fulfillment level with respect to
advanced wallets in view of an investigation of 52 respondents. It additionally recognizes
the hindrances and difficulties to the selection of the same.

K. C. Balaji and K. Balaji (2016)"A Study On And Its Impact On Cashless

Transactions" According to this the development of the cashless exchange framework is
achieving new statures. Individuals tend to move to cashless exchanges. It is on the right
track to state that the cashless framework is a prerequisite as well as a requirement for the
general public. However, then again, the danger of digital wrongdoing is especially
higher as all the cashless exchanges are done over web.

KunalTaheam, Rahul Sharma and saurabhGoswami (2016) "Drivers Of Digital

Wallet Usage: Implications For Leveraging Digital Marketing" The outcomes from this
investigation highlighted on various elements that inspired individuals to utilize
computerized wallets for making installments.

11
ANNEXURE

11
Annexure:

Q1. GENDER

o Male
o Female
o Other

Q2. AGE GROUP

o Under -18
o 18 - 30
o 31 – 45
o Above 45

Q3. DO YOU USE ONLINE PAYMENT?

o Yes
o No

Q4. IF YOU HAVE NEVER USED ONLINE PAYMENT, WHAT IS THE

REASON?

o Don't get on with the technology

o Never heard of online payment
o Concerned about security (don't trustonline payment)
o Can't Say

Q5. HOW OFTEN DO YOU USE ONLINE PAYMENT?

o Daily
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o Weekly
o Monthly
o Never

Q6. WHICH PAYMENT WALLETS YOU PREFER TO USE FOR DAILY

PURPOSE?

o G pay
o PayTM
o Phonepee
o Amazon pay
o other

Q7. DO YOU THINK THAT USING ONLINE PAYMENT MAKES YOUR LIFE
EASIER AND FAST?

o Yes
o No
o Can't Say

Q8. HAVE YOU EVER LOST MONEY DUE TO DIGITAL FRAUD?

o Yes
o No

Q9. DO YOU TRUST THE SECURITY OF ONLINE PAYMENT?

o No at all
o No
o Yes
o Can't Say

Q10. DO YOU FEEL ONLINE PAYMENT SAVES YOUR TIME AND MONEY?

o Yes
o No
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Q11. DO YOU FEEL ONLINE PAYMENT SYSTEM BETTER THAN CASH?

o Yes
o No
o Can't Say

Q12. ONLINE PAYMENT OFFERS A GREAT CHOICE FOR CONSUMERS

AND MERCHANTS IN THE WAY THEY SEND AND RECEIVE PAYMENT?

o Yes
o No

Q13. A CUSTOMER HAS TO BE ALERT TO SECURITY ISSUES WHEN

USING ONLINE PAYMENT WALLETS?

o Yes
o No

Q14. WHAT ARE THE SECURITY MEASURES THAT COULD SECURE YOU
AGAINST VARIOUS KIND OF ONLINE PAYMENT ATTACKS?

o Self awareness in security

o Limiting online payment
o Security from bank portals
o Both A, B and C
o Other

11