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“THE INFLUENCE OF DEMONETISATION ON CONSUMER BEHAVIOUR”

PREPARED BY : NIDHI GONDALIYA

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FLOW OF PRESENTATION

Introduction History Objective Data analyses Preference of respondent conclusion

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INTRODUCTION

Demonetization means remove of a particular form of currency from circulation.

This is a way to covered informal economy into the formal economy.

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HISTORY

On 8th November 2016, Government of India had announced that rupees 500 and 1000 rupee note will not be a legal tender.

India face the three-time demonetization in 1946, 1978 and 2016.

Zimbabwe, USA, Australia, Myanmar, North Korea, Pakistan, Nigeria are country

tried to demonetization of their country

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DEMONETIZATION

Demonetisation is a forced change by the government of India.

Behind the demonetization there are number of objectives but one of the objective is make the digital India.

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OBJECTIVES To identify the effect of demonetization on consumer

behaviour. To identify the effect of demonetization towards mode

of payments used by the respondents. (Before & after) To study the opinion of respondent regarding

demonetization. To study the relationship between various demographic variables and towards factors considered while going for digital payment.

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DATA ANALYSIS

45.00%

48.80%

45.00%

Before demonetizationUsing online shop-ping more than retail shop

About the same frequency as the re-tail shop

Using retail shop more than online shopping

Q:- Have you used the digital media for the shopping?

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DATA ANALYSIS

73.80%

52.50%

46.30%

After demonetization Using online shop-ping more than retail shopAbout the same frequency as the re-tail shopUsing retail shop more than online shopping

Q:- Have you used the digital media for the shopping?

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Expenditure types Cash Debit card

Credit card

E- Wallets

Mobile banking

E- banking

Rent(After demo.)

51.3% (77.5%)

48.8%(16.3%)

-(3.8%)

-(2.5%)

-

-

Fuel of vehicle(After demo.)

81.3%(53.8%)

16.3%(35%)

2.5%(3.8%)

-(1.3%)

-(5%)

-(1.3%)

Cell phone bill(After demo.)

63.8%(38.8%)

27.5%(55%)

6.3%(3.8%)

- 2.5%(2.5%)

-

Food, beverages(After demo.)

42.5%(27.5%)

32.5%(55%)

16.3%(3.8%)

3.8%(5%)

5%(5%)

-(3.8)

Durables purchase(After demo.)

65%(38.8%)

20%(46.3%)

2.5%(12.5%)

8.8%(2.5%)

3.8% -

Q:- Which mode of payment you used? (before and after demonetization)

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Expenditure types Cash Debit card

Credit card

E- Wallets

Mobile banking

E- banking

Restaurants(After demo.)

63.8%(61.3%)

21.3%(27.5%)

12.5%(11.3%)

2.5% -

Groceries at stores(After demo.)

68.8%(32.5%)

20%(58.8%)

7.5%(6.3%)

1.3%(2.5%)

2.5% -

Tours and travels, hotel booking

76.3%(57.5%)

18.8%(37.5%)

2.5%(5%)

2.5%

Internet charges(After demo.)

43.8%(31.5%)

36.3%(48.8%)

12.5%(15%)

1.3%(1.3%)

3.8%(3.8%)

2.5%

Online shopping(After demo.)

35%(33.8%)

42.5%(43.8%)

12.5%(15%)

3.8%(1.3%)

3.8%(7.5%)

2.5%

Real estate (After demo.)

42.5%(28.8%)

42.5%(56.3%)

7.5%(7.5%)

1.3%(2.5%)

3.8% 2.5%(5%)

Q:- Which mode of payment you used? (before and (after)Demonetization)

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PREFRENCE OF RESPONDENT

86.25% respondent agree with demonetization can change the cash economy into cash less economy.

67.5% respondent agree with demonetization can remove the black money.

61.25% respondent agree with You believe that demonetization decreases the cost of goods and services.

81.25 %respondent believe that Demonetization can change the purchasing or selling habits of the people.

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Chi-square

H0: There is no relationship between various demographic variables and towards factors considered while going for digital payment.

H1: There is relationship between various demographic variables and towards factors considered while going for digital payment.

Opinion Figure Level of significance

Remark

Digital payment is time and cost saving. 0.049 < 0.05 H1 accepted

Payment procedure is safe 0.061 > 0.05 H0 accepted

Availability of various alternatives goods and services.

0.023 < 005 H1 accepted

Availability of discount & Schemes on goods and services.

0.360 > 0.05 H0 accepted

Availability for 24 hours. 0.010 < 0.05 H1 accepted

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Conclusion

I conclude that respondent agree with that demonetization is beneficial for the people life and the go with the digital media.

But still not their change the behaviour of life, according to the my opinion change take a time so that people are changing their behaviour.

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