Research Article Open Access

Challenges Faced in Digital Economy Due to Consumer Behavioral Changes

Abstract

Digitalization has been the need of the modern era but yet the most important fact lies in the behavioral aspect of the consumer, whether consumer is ready to accept or has acknowledged himself/herself with the digital instrument available in the economy whether in the retail or any other medium of financial transaction. The study identifies that only 2.02% of digital transaction is catered by India in the world Economy. Cashless economy is the need and has become the most vulnerable to the aspect of perception and attitude of the individuals who are still in a way of promoting liquid or cash mode of payment. This provide a major emphasis to the point supported by previous studies as well as market research done on the basis of survey method, that cashless economy is not yet prevalent within our very own nation as consumer behavior and its different components cater the major challenge for the esteemed cause and a serious initiative led by our own prime minister Narendra Modi. The money supply and demand chain have to be circulated in the economy as well as the individuals in such a way that traditional approach of consumer behavior should be transformed to the current demanding and modern digital economy. Thus, the finding of this research paper identifies the challenges of transforming or shifting the mode of payment to digitalization on the note of changes in consumer behavior and its components. This is a research based on primary data obtained by survey method on the basis of questionnaire as the key instrument over a sample size of 101 individuals and analyzed using the digital software Microsoft Excel 2019.

Ganesh Nair and Pooja Nuna