Consumers’ Perceptual Biasness in Debit Cards of Indian Banks

Abstract

banking products and services efficiently and effectively. The new private and foreign bankers on the basis of adoption of new technological services like plastic cards, personal computer banking, electronic funds transfer, internet banking can able to connect maximum number of customers in spite of having less physical presence. Now public sector banks are equally trying to move towards electronic banking, which leads to the remarkable development with respect to its operational efficiency, customer services, employee productivity and banking profitability. Now banks are bringing flexibility in their distribution channel by reengineering their services.There is a rising acceptance of debit cards in retail locations which has increased the debit cards transactions. Highest number of consumers and merchants acceptance of plastic cards has changed the way to move beyond the traditionally geographic located merchant base to modern arena of transactions. The demand for debit cards has grown rapidly among consumers as these are more convenient than other payment options and cost effective for merchants. Consumers with the limited access to existing payment methods find a debit card is the most suitable instrument for the latest transactions. Debit cards' superiority over credit cards as the most acceptable form of electronic payment at the point of sale and it becomes a primary consumer choice which requires relatively little scrutiny for acceptance. Debit card users who have the knowledge of hidden cost associated with the credit cards are rationally choose to use debit card to minimize the transaction costs. The drawbacks like binding limit in credit cards are converting customers to rely more on debit cards. ObjectivesDebit card plays a vital role in plastic cards which has changed the Keywords: Consumer; Perceptual biasness; Debit cards; Multidimensional scaling; Indian banks IntroductionIndian financial institutions like banking is the lifeline of the nation has helped in developing the major sectors of the economy and usher in a new dawn of progress on the Indian economy. The sector has created the hopes and aspirations of millions of people into reality in the world. But it has control the miles of difficult terrain and suffers under the foreign rules and the pangs of partition. Recently Indian banks have adopted the modern technology and can strongly compete with modern banks of the world [1]. The economic reforms of have presented a challenge before Indian banking sector to make continuous innovation with the pace of new technological change. The technological advancement and adoption is purely based on the consumers' acceptance and positive response. Traditionally, banks were only concerned with the stereotyped activities like acceptance of deposits and lending surplus money to the customer at some rate of interest and the common products being availed by banks were savings account, current account, term deposit account and lending products like cash credit and term loans. It becomes very much necessary for...

A literature survey on Indian consumer and plastic money

“…The study found that customers with larger balance in their account know more about credit cards and their awareness level is found to be high and Low awareness category comprised of more of customers with short period customership. Prasad, S. in (2016) [9] study on, "Consumers' Perceptual Biasness in Debit Cards of Indian Banks" to explore recent issue related to the debit card and the preference of customers towards different types of debit cards of different banks. The study based on Primary collected through questionnaire of sample taken from 400 respondents.…”

“…(2015) [6] Kerala   Raza, S. A. & et al (2016) [7] Andhra Pradesh   Sudhagar, S. (2012) [8] Tamil Nadu   Prasad, S. in (2016) [9] Orissa   Dhanda, K. (2016) [10] Haryana   Bijapurkar, & et. lt. (2014) [10] Delhi & NCR   Patil, S. in (2014) [11] Maharashtra   Hooda, N. (2016) [14] Haryana   Sharma, A.…”

“…[7]   Sudhagar, S. (2012) [8] .   Prasad, S. in (2016) [9]   Dhanda, K. (2016) [10]   Bijapurkar, & et al (2014) [10]   Patil, S. in (2014) [11]   Bama & Gunasundari (2016) [13]   Hooda, N (2016) [14]   Sharma, A. & et al (2015) [15]   Lanjewar, J.…”