An Empirical Study of Paradigm Shift Among Consumers due to Digital Payment with Reference to FMCG Products in Eastern UP.

Abstract

Digital payment methods such as UPI have majorly shifted the consumer behaviour in India. Covid 19 has a major role in this when everyone was worried about their lives. During the pandemic when people were not in favour of transacting in cash. In areas like Eastern Uttar Pradesh, usage of digital payments for regular purchases like FMCG goods has grown up. With a focus on how ease, post-COVID hygiene concerns, and financial technology growth have decreased customers' dependence on cash while purchasing fast-moving consumer goods (FMCG), such as groceries and household supplies. With reference to Fast-Moving customer Goods (FMCG) in Eastern Uttar Pradesh (UP), this study examines the paradigm shift in consumer buying habits that can be linked to digital payment methods with respect to Fast-Moving Consumer Goods (FMCG) in Eastern Uttar Pradesh (UP), India. Based on a quantitative research methodology, primary survey data (collected on 300 respondents, representing urban, semi-urban, and rural markets) quantified by the descriptive statistics, exploratory factor analysis, and regression modelling, this research identifies the relationship between the adoption of digital payments and purchase frequency, brand preference, purchase channel preference, and consumer trust. The results indicate that online payments have contributed to the high levels of buy convenience, lower price sensitivity and have contributed to a change in retail structure towards organized purchasing of FMCG products.