Impact of Plastic Money Adoption on Consumer Purchasing Habits: A Study in Pakistan

Abstract

This study investigates the impact of plastic money, including credit and debit cards, on consumer purchasing behavior in Pakistan. To collect data, a primary survey was conducted using a questionnaire-based approach. The survey targeted customers at various retail outlets, such as marketplaces, supermarkets, and grocery stores, employing convenience sampling techniques. This approach aimed to gain insights into consumer attitudes and behaviors regarding the use of plastic money in shopping experiences. Data management and analysis were conducted using SPSS, with simple linear regression analysis employed to examine the relationship between plastic money usage, the independent variable, and consumer buying behavior, the dependent variable. The reliability of the collected data was assessed using the coefficient alpha, which was found to be 0.709, indicating a satisfactory level of internal consistency. The analysis aimed to determine the extent to which consumer purchasing behavior is influenced by the use of plastic money in Pakistan. Through regression analysis, the study explored how the adoption of plastic money affects consumer spending patterns and decision-making processes in the Pakistani market. The findings of this research contribute to a deeper understanding of the behavioral shifts associated with plastic money adoption, providing valuable insights for businesses, financial institutions, and policymakers. Understanding these dynamics can aid in formulating strategies to enhance financial inclusion, encourage digital transactions, and improve consumer engagement in a rapidly evolving retail environment. The study emphasizes the growing role of plastic money in shaping consumer habits and its broader implications for Pakistan’s financial and retail sectors.