CONSUMER PERCEPTION TOWARDS THE USAGE

BEHAVIOR OF PLASTIC MONEY

Submitted by:

Prashant Sapkota

Roll No.: 396/16

Registration No.: 7-2-473-40-2012

A Project Research submitted to

Office of the Management Dean

Tribhuvan University

In partial fulfillment of the requirements for the degree of

MASTERS OF BUSINESS MANAGEMENT (MBM)

Kirtipur, Kathmandu

March 2019

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 RECOMMENDATION LETTER

This is to certify that report “Consumer Perception towards Usage Behavior of Plastic
Money” submitted by Prashant Sapkota is an original piece of research work carried
out by the candidate under my supervision. Literary presentation is satisfactory and
the thesis is in a form suitable for publication. Work evinces the capacity of the
candidate for critical examination and independent judgment. Candidate has put in at
least 120 days after registering the proposal. The report is forwarded for examination.

………………………………

Professor Dr. Bal Krishna Shrestha

Research Project Supervisor

Central Department of Management

Tribhuvan University, Kirtipur, Kathmandu

Date: December, 2018

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 APPROVAL LETTER

We, the undersigned, certify that we have read the research project report submitted
by Prashant Sapkota and conducted the viva-voce examination of the candidate. We
are satisfied with the quality and academic standard of the research project report. The
candidate has defended his research work very satisfactory. We therefore recommend
that the research project entitled “Consumer Perception towards Usage Behavior of
Plastic Money” be accepted as partial fulfillment of the requirements for the award of
the degree Master of Business Management (MBM) of Tribhuvan University.

___________________________
Professor Dr. Bal Krishna Shrestha
(Research Project Supervisor)

___________________________
Professor Dr. Dilli Raj Sharma
External Examiner

___________________________
Associate Prof. Dr. Achyut Gyawali
(Chairperson, Research Committee)

____________________________
Associate Prof. Dr. Ramji Gautam
(Head, Central Department of Management)

Date: March, 2019

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 STATEMENT OF AUTHORSHIP AND ORIGINALITY

I hereby certify that I am the author of this document and that any assistance I
received in its preparation is fully acknowledged and disclosed in the document. I
have also cited all sources from which I obtained data, ideas or words that are copied
directly or paraphrased in the document. Sources are properly credited according to
accepted standards for professional publications.

I also certify that this research project report was prepared by me for the purpose of
partial fulfillments of requirements for the MBM degree of Faculty of Management,
Tribhuvan University.

Prashant Sapkota

Signature

Date: March, 2019

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 ACKNOWLEDGEMENTS
With due respect, I would like to express my heartfelt gratitude to the Central
Department of Management, Tribhuvan University for providing an opportunity to
carry out the Graduate research project. This project has been prepared for the partial
fulfillment of the requirements for the degree of Masters of Business Management
(MBM). This report is not the outcome of individual effort; several helpful hands
have contributed in the completion of the report. I express my deep appreciation to
everyone who helped me during this study.

Firstly, I would like to express my sincere gratitude to respected supervisor, Professor

Dr. Bal Krishna Shrestha, Central Department of Management, Tribhuvan University
for his patience, motivation, continuous support and immense knowledge with
valuable comments. Without his constant help and guidance, this study would not
have been success.

Besides, I owe a debt of gratitude to Prof. Dr. Bhoj Raj Aryal, Head of the
Department, Associate Prof. Dr. Achyut Gyawali, Program Director, Mr. Mukunda
Rimal administrative head, Central Department of Management, Tribhuvan
University for their constant support, motivation and immense guidance which
enabled me to complete my report on time.

Special thanks are also extended to the respondents of the questionnaire, for their
cooperation and for providing some time from their busy schedule as well as
comfortable environment during the survey. I must acknowledge the various authors
of different studies that I have referred during this study. Moreover, I would like to
express my thanks to all friends of MBM for their support and coordination while
doing this research. Heartfelt thanks to the staff of Central Department of
Management- Administration Department and staff of TU Central library for
providing their valuable support and co-operation. Lastly, I am heartily thankful to my
parents, family members, friends and hereby, I am sincerely thankful to all those who
helped me for the successful completion of this report.

Prashant Sapkota

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 TABLES OF CONTENTS

Title Page ………………………………………………………………………….. i

Recommendation letter …………………………………………………………..... ii
Approval Letter …………………………………………………………………………….. iii
Statement of authorship and Originality ……………………………………………….. iv
Acknowledgments ………………………………………………………………………….. v
Table of Contents ………………………………………………………………………….. vii
List of Table ………………………………………………………………………………… viii
List of figure………………………………………………………………………………… x
List of Abbreviations……………………………………………………………………….. xi
Executive summary………………………………………………………………………… xii

CHAPTER I……………………………………………………………………... 1
INTRODUCTION…………………………………………………………………. 1
1.1 Background of the Study ……………………………………………………… 1
1.2 Statement of problem…………………………………………………………... 4
1.3Research objective……………………………………………………………… 6
1.4 Significance of study ………………………………………………………….. 6
1.5 Limitations of the study………………………………………………………... 6
1.6 Organization of the study……………………………………………………… 7
CHAPTER II…………………………………………………………………… 8
LITERATURE REVEIW…………………………………………………………. 8
2.1Review of related literature…………………………………………………….. 8
2.1.1 Review of major literature…………………………………………………... 9
2.1.2 Review of recent literature…………………………………………………... 13
2.1.3 Review of Nepalese literature………………………………………………... 16
2.2 Conceptual Framework………………………………………………………… 19
2.3 Research Hypothesis…………………………………………………………… 21
2.4 Research Gap…………………………………………………………………... 21
2.5 Concluding remarks …………………………………………………………… 22
CHAPTER III……………………………………………………………………. 24

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RESEARCH DESIGN AND METHODOLOGY…………………………………. 24
3.1 Research Plan and Design……………………………………………………... 24
3.2 Sample Size Determination……………………………………………………. 24
3.3 Data Collection Procedure……………………………………………………... 25
3.4 Instrumentation of Data………………………………………………………... 25
3.5 Reliability and Validity of data ……………………………………………….. 26
3.6 Respondents Profile…………………………………………………………… 26
3.7 Data Analysis Tools and Methods …………………………………………….. 29
CHAPTER IV…………………………………………………………………….. 31
DATA ANALYSIS AND PRESENTATION……………………………………... 31
4.1 Data analysis …………………………………………………………………... 31
4.2 Descriptive Statistics…………………………………………………………... 38
4.3 Correlation Analysis …………………………………………………………... 42
4.4 Regression Analysis…………………………………………………………… 43
4.5 Summary of Hypothesis……………………………………………………….. 46
4.6 Discussions…………………………………………………………………….. 47
CHAPTER V…………………………………………………………………….. 51
SUMMARY AND CONCLUSION ……………………………………………… 51
5.1 Summary……………………………………………………………………….. 51
5.2 Conclusion……………………………………………………………………... 52
5.3 Recommendations……………………………………………………………... 53
5.4 Scope for the future research…………………………………………………... 54
References ………………………………………………………………………… 55
Appendix ………………………………………………………………………….. 57

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 LIST OF TABLES

Table 2.1 Review of major literature……………………………………………... 12

Table 2.2 Review of recent literature…………………………………………….. 14
Table 2.3 Review of Nepalese literature …………………………………………. 19
Table 3.5.1Reliability of independent variables………………………………….. 26
Table 3.6.1 Gender description of sample ……………………………………...... 27
Table 3.6.2 Age description of sample…………………………………………… 27
Table 3.6.3 Qualification description of sample………………………………….. 28
Table 3.6.4 Occupation description of sample …………………………………... 28
Table 3.6.5 Income level description of sample………………………………….. 29
Table 4.1 Respondents regarding plastic money in use ………………………….. 31
Table 4.2 Respondents regarding convenient way to pay ……………………….. 31
Table 4.3 Respondents regarding the way to make payment for purchase of
household consumables ………………………………………………………….. 32
Table 4.4 Respondents regarding the prefer sector for usage of plastic
cards……………………………………………………………………………… 32
Table 4.5 Respondents regarding security measurement for stepping misuse of
plastic money……………………………………………………………………... 33
Table 4.6 Respondents regarding expensiveness of charge charged on plastic
money ………………………………………………………………………….. 34
Table 4.7 Respondents on the basis of transaction limit on daily and monthly
value…………………………………………………………………………….... 34
Table 4.8 Respondents regarding the penetration of plastic money more in near 35
futures…………………………………………………………………………..
Table 4.9 Respondents regarding attribute portable of plastic money…………… 35
Table 4.10 Respondents regarding attribute safety of plastic money…………….. 36
Table 4.11 Respondents regarding attribute durability of plastic money………… 36
Table 4.12 Respondents regarding attribute convenience of plastic money……... 37
Table 4.13 Respondents regarding attribute reliability of plastic money………… 37
Table 4.14 Respondents regarding attribute mobility of plastic money………….. 38
Table 4.15 Descriptive Analysis of Product Characteristics …………………….. 39

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Table 4.16 Descriptive Analysis of Money System ……………………………... 40
Table 4.17 Descriptive Analysis of Consumer Usage Behavior ………………… 40
Table 4.18 Overall Descriptive Statistics………………………………………… 41
Table 4.19 Correlation Analysis………………………………………………….. 42
Table 4.20 Model Summary……………………………………………………… 44
Table 4.21 ANOVA………………………………………………………………. 45
Table 4.22 Estimated Regression Results………………………………………… 45
Table 4.23 Summary of Hypothesis……………………………………………… 46

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 LIST OF FIGURES

Figure 2.1Conceptual framework of the Study…………………………………... 20

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 ABBREVIATIONS

ATM Automated Teller Machine

BFI Bank and Financial Institutions
CUB Consumer Usage Behavior
E Error Term
i.e. That is
Ltd. Limited
MBM Masters of Business Management
M. Phil Master in Philosophy
MS Money System
MS excel Microsoft excel
PC Product Characteristics
PHD Doctor of Philosophy
PIN Personal Identification Number
POS Point on Sales
SCT Smart Choice Technology
SPSS Statistical Package for the Social Sciences
Std. Dev Standard Deviation
VISA Visa International Service Association
Α Alpha
 Beta

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 EXECUTIVE SUMMARY

This study aims to identify the influencing factor of plastic money usage in
Kathmandu district of Nepal and to determine the relationship/association between the
consumer usage behavior and the factor influencing it.

The research was conducted among the people holding plastic money with the sample
size of 200 respondents. Structured questionnaire was used to get the data from 200
respondents. The respondents were selected conveniently having different
demographic characteristics, income, age, qualification and profession. The data were
analyzed by using data analysis software like SPSS and Microsoft excel. The
questionnaire and the study were based on two factors: product characteristics and
money system. Various relevant statements were asked to the respondents under each
factor. For taking responses of consumer five point Likert scale questionnaire was
used.

Descriptive, correlation and multiple regression models are used to meet the objective
of the study. The result shows the factors product characteristics and money system
are low significant to explain and less contribute towards usage behavior of plastic
money. The finding of this research focused to determine which attributes of
consumer usage behavior enhance growth of plastic money usage in Nepal. The
finding of this research suggested that increase in the product characteristics and
money system leads to the increase in usage of plastic money.

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