AN ANALYSIS ON ADDICTION INDUCING BEHAVIOURAL DESIGN OF P2P LENDING APPS

Anand J (MSc. Finance 2021-23)

Peer-to-peer (P2P) lending apps have emerged as a popular alternative to traditional financial services, offering a convenient platform for borrowers and lenders to connect directly. However, there are concerns that these apps are designed to be addictive, with features that encourage users to engage in financially risky and harmful behaviour patterns. This research paper attempts to explore and understand the addictive behavioural design of P2P lending apps. Through a case study analysis, the design elements and behavioural strategies that major P2P lending companies use – to attract and retain users – are dissected. The focus is on the business strategies employed to create a user-friendly interface, and the behavioural aspects considered that make these apps addictive. By identifying and analysing the addictive design features of P2P lending apps, this study contributes to a better understanding of the risks associated with their use. Furthermore, recommendations for app developers to design more responsible and ethical platforms, prioritizing user well-being, are provided. Ultimately, this paper seeks to raise awareness about the potential harms of addiction- inducing design and promote responsible practices in the fintech industry.

BEHAVIOURAL INTERVENTIONS FOR HOUSEHOLD ENERGY CONSERVATION

Poorva Kulkarni (MSc. Development Studies 2021-23)

Climate change is a global crisis, caused majorly by carbon emissions due to large-scale energy consumption. Energy conservation, not just at the global level, but also at the individual level is critical. A shift towards pro-environmental choices is essential to avoid the exploitation of resources, be it renewable or conventional sources of energy. The study attempts to understand the impacts of changing small daily habits on energy conservation, but more importantly, to shift people’s attitude and spread awareness. This is done via an experiment consisting of two different types of behavioural interventions conducted among households of Pune city. One of the interventions is a reminder mechanism while the other is sharing information through an online platform. The study aims to identify which of the interventions might result in a larger change in energy conservation behaviour. The results show that the reduction in consumption score is higher for the households where the interventions were within the house.

IMPACT OF GENDER AND LOSS AVERSION IN ALTERNATE INVESTMENT CHOICES

Anushree Sanyal (MSc. Finance 2021-23)

This paper aims to understand investor behaviour by analysing how loss aversion and gender affect different types of alternate investment opportunities. The study was conducted in India, where alternative investing options have a positive growth trajectory and high scope for development. The paper addresses the difference in the awareness level and risk tolerance of the two genders in four alternate investment products. Primary data from 100 participants – 56 men and 44 women – was collected. According to the results, men are more aware and informed of the alternate investment products as compared to women across all four choices. To analyse the gender difference in risk tolerance level while investing in alternate investment products, the Wilcoxon Signed-Rank test results show that men exhibit higher risk tolerance than women across all four alternate investment products. Chi-square test is used to analyse the association between gender and loss aversion bias in alternate investment products. It is found that women are more loss averse than men in P2P Lending, REITs, and AIFs, but when it comes to invoice trading as an alternate investment option, both men and women exhibit a high degree of loss averse behaviour.

RISKY BEHAVIOUR OF YOUNG ADULTS IN INDIA: CASE OF E-CIGARETTE USAGE

Dakshita Srinivasan & Dishant Vaishnav (BSc. 2020-23)

Vaping has become increasingly popular among young adults, and its impact on their health and behaviour is a subject of concern. Individuals in this age group often tend to accompany another high-risk behaviour upon indulging in a health risk behaviour (HRB). This calls to factor in the relationship between health-risk indulgences and other high-risk behaviours in one's financial decisions, social characteristics, etc. This study aims to correlate whether factors such as risk awareness, perception towards e-cigarette usage, and behavioural patterns displayed in financial decisions affect individuals' decisions to condone or condemn vaping. This study employs a primary methodology approach. The primary survey covered adults aged 18 to 25 in Mumbai, Pune, and Bengaluru through snowball sampling. The survey’s primary objective is to check whether there is an association between e-cigarette consumption and risk-taking behaviour with regards to physical health and financial decisions of young adults. The survey analysed five thematic variables surrounding individual well-being and risk inclinations. The variables are: a) Inclination to Risk-Seeking Behaviour, b) Perception of Vaping, c) Awareness and Knowledge Displayed in High-Risk Situations, d) Reasons/Opinions on Inclination Towards Vaping, and e) Behavioural Pattern Displayed while making Financial Decisions.

NUDGING BEHAVIOUR TOWARDS THRIFTING: EXPERIMENTAL INTERVENTION

Palvi Thakre & Pratishtha Kedia (BSc. 2020-23)

Climate change and the environment is one of the most crucial and pressing issues in today’s time. Looking for sustainable solutions for daily activities to tackle this problem is extremely essential. This research focuses on encouraging sustainable fashion practices, specifically thrifting second-hand apparel, since the fashion industry is one of the highest polluters in the world, second only to oil and gas. The study is based on an experiment conducted with a sample of 20 women, with the aim to nudge their fashion consumption preferences towards thrifting. Participants were subject to regular informational interventions about fast fashion and its negative impacts, thrifting and other related topics via an online platform for a period of two months. Data collected through a baseline survey before the intervention and a final survey afterwards was compared. The groups behaviour was successfully nudged with the help of behavioural biases. The results obtained showed a significant change in the participants’ awareness of thrifting and negative impacts of fast fashion and mass production after the intervention. Results also indicated that participants became more conscious about the environment and there was a positive change in the number of people willing to thrift in the future.

STUDY ASSESSING THE ROLE OF CHOICE PARALYSIS ON INDIVIDUAL HEALTH INSURANCE INVESTMENT DECISIONS

Akshat Rana & Anika Singh (BSc. 2020-23)

Given the scale and scope of India’s healthcare and insurance business, any shift in demand for insurance policies and plans can have far-reaching consequences for the economy as a whole. The current system makes this study on an individual’s decision factors while choosing to purchase insurance worthwhile to pursue, in order to determine whether the COVID 19 pandemic has had an impact on the decision-making characteristics and future aspirations of Indian adults, along with the challenges faced while choosing the right health insurance plan for themselves. Primary data is collected through a questionnaire which consists of polar interrogative questions and thought experiments.

Student Research under BEEC
Abstracts

Gender Differences in Sealed Bid First Price Auctions: Regret and Learning Speed

Ellendula Venkat Raj (BSc.2014-17)

The differences in bidding strategies and aggressiveness affects one’s capacity to leverage financial instruments to one’s advantage and accumulate large amounts of wealth. Earlier research has indicated some differences between genders in these behaviors. This paper studies the gender differences in bidding behavior in terms of regret and learning speed. These factors affect how aggressively one bids and how fast that person either learns the bidding strategies or develops his own. The experiment was conducted on 36 participants a subgroup of whom underwent the winners’ regret treatment. Female participants who underwent the treatment lowered their average bids as the auction proceeded by assimilating the information that was being provided to them. Female participants who were in the control group hadn’t changed their bids significantly over the number of auctions and thus they behaved as expected. Males who underwent the treatment too behaved as expected by lowering their average bids as the auctions proceeded. However, the males in the control group were found to be an exception as their average bids increased over the number of auctions conducted. Thus, out of the seven hypotheses that were being studied in this paper, only one was substantially proved false. This however is only a limitation that can be overcome with more participants thus allowing for the Law of Large Numbers to take its effect

Effect of Reciprocity and Fairness on Consumer Behaviour Analysis on Restaurant Industry

Smriti Raizada (BSc.2014-17)

Fairness and reciprocity are deeply rooted behavioural traits that are known to influence decision making in a variety of contexts. The consumption behaviour of customers of service sector industries is one context that reflects fairness and reciprocity, directly as well as indirectly. The norms of reciprocity and fairness have gained importance due to their extensive use in product marketing, consumer base enhancement and brand loyalty strategies. The research undertaken focuses on the relationship between experiences of service, food, restaurant ambience and ‘value for money’ by a customer, the perceived fairness of these experiences and the reciprocal behaviour shown by the customer in the form of feedback or review. An analysis was conducted using data extracted from a popular online food outlet search app. 120 reviews of a variety of restaurants in the Pune area were used to conduct the analysis. The results of the analysis indicated that the highest correlation was between service and positive customer ratings and feedback, from the selected variables. This finding indicates that fair treatment of customers by restaurant staff is critical for garnering new customers. Findings from this study can be used by investors to channel funds into areas that have a direct impact on sales, like staff training and education.

Online Shopping: A Study of Factors Influencing Consumers to Shop Online with Focus on Apparels

Ramyani Dasgupta (BSc.2014-17)

The objective of this research is to identify and examine the factors that influence online shopping with a specific focus on apparel. The e-tail industry is highly competitive and must also compete with ‘brick and mortar’ stores and malls. Survival in such market conditions depends on increasing and maintaining the customer base. Thus, it is imperative that retailers go beyond the basic discount models and use other strategies to capture market share. The research was conducted with the help of primary data collected through questionnaires, from 60 college students aged between 17-25 years. Results obtained show that website design, quality and features are more important factors than

customer service, time saving and convenience in purchasing decisions of apparels online. The inferences made from this research can provide a guideline to online apparel retailers on where to invest funds so as to maximise returns, for eg. the study indicates that for online apparel purchasing decisions the customers interface experience holds more decision weight than time saving as a decision factor. This implies that online retailers could benefit more from better technology rather than faster delivery.

How to manipulate people’s decision making process, even under various cognitive biases?

Ananya Chattaraj (BSc.2014-17)

The existence of complex influences of psychological factors in the decision making process of individuals, has been established. The Framing effect can be used to manipulate people’s choices in everyday routine choices. The presentation of choices, whether in a positive or a negative frame, plays a dominant role in the choice that they make. It is seen that decision making is not only affected by the framing effect but also can lead to biases in decision making. The current study examines whether framing effect would work in a scenario where people are exposed to three major cognitive biases: morality bias, representative bias, and discounting bias. An analysis was conducted using a sample size of around 156 individuals consisting of college students as well as the working youth. Thought experiments were used and responses of participants were collected with the help of a systematically formulated questionnaire. The study results indicate that manipulating the frame of the possible choices can change decisions revealing their biases. Findings from this research can be used extensively in the field of marketing, to influence decisions makers purchases.

Fairness in Management: A Study on Employee’s Perception

Yash Taparia (BSc.2014-17)

Fairness is one key to the challenge confronted by every organization: motivating its employees.

Research shows that employees are motivated when treated fairly, organizational resources are allocated fairly and when organizational decisions are made in a fair manner, thereby unlocking efficient performance of employees. When fairness is ensured at work employees develop close bonds of trust and are motivated to strive collaboratively for a long term to achieve the goals of the firm. Employee recognition being a parameter to judge fairness in management reinforces and rewards the most important outcomes that people create for any organization. This focus of this research is employee perceptions regarding the recognition they receive at work.

Primary data was collected with the help of a questionnaire from respondents belonging to two IT companies. The respondents were expected to answer questions, on a linear scale, pertaining to recognition of work and performance appraisal. The sample size was taken to be 80 considering 40 respondents from each company. Findings from this research emphasized on the fact that receiving informal recognition, guidance from superiors, receiving recognition for team accomplishments, etc. were not in compliance with the company claims. This implies that on these parameters the company management is perceived unfair and must take measures towards employee recognition to ensure enhancement in work performances, commitment and motivation in striving towards achieving company goals.

Student Research under BEEC
Abstracts

Mutual Funds and Investor Behavior

Yash Khaitan (B.Sc.2015-18)

The study aimed to investigate the impact of behavioural biases on the Indian investor’s decision while investing in mutual funds. Special focus was given to two biases, namely disposition effect and loss aversion. Empirical data has been collected through administrating a questionnaire. The data was analysed using Chi square tests for association and goodness of fit to study the impact of these biases on investors decision making. From the results it could be concluded that for the sample considered the biases can have a direct impact on the decisions taken by investors. The paper also tries to analyse the relation between biases and education, gender and job profile.

Demographic Factors Influencing Financial Literacy Among Working Individuals in Pune

Manika Pant (B.Sc.2015-18)

Financial literacy is the ability to make informed judgments and to take effective decisions regarding the use and management of money. Financial literacy enables individuals to improve their overall well-being. The purpose of this study was to analyze the relationship between demographic variables like age, gender and education on financial literacy of a cohort of working individuals in Pune. Primary data was collected using a structured questionnaire. The questionnaire attempted to measure the respondents financial knowledge, financial behavior and financial attitude. 161 responses were recorded. The data analysis suggests that overall financial literacy among working population Pune is moderate. 139 out out of 161 respondents scored around 63%. The results suggest that age is the only demographic variable correlated to financial literacy.

Dying Influence of Theatre in India

Urmila BG (B.Sc.2015-18)

India is land of a variety of cultures and traditions. These traditions and cultures have given birth to diverse art forms. Art can be divided into visual arts, fine arts and performing arts. Theatre performance is an important form of performing arts. Theatre is not only for entertainment purposes but also a medium to pass on social messages. Historically, theatre performances used to popularise social issues which negatively affected the society as entertainment. Performed across the country in over twenty-four languages, theatre is slowly losing its past glory. The study was qualitative and aimed at finding the factors that affect a person’s decision to spend or not on a live theatre performance. The data was collected by survey method and analysed to explore the relationship between exposure to theatre in childhood and willingness to pay for theatre in later stage of life. A total of 101 responses were received from a cohort between the ages of 18 to 50 years.

Risk Appetite Across Different Domains in Association with Gender

Mugdha Chouksey (B.Sc.2015-18)

The aim of this study was to analyse any difference in risk appetite of individuals with respect to gender. The purpose of this study was to explore whether women are as risk averse as men across different domains. The domains studied include financial risk, the house money effect, risk associated with adventure and sexual intent. An experiment was conducted on a sample of 20 people. The responses obtained from the participants were analysed using the non-parametric chi square test for association. From the analysis it was inferred that women are not more risk averse than men across all domains as they were observed to have a higher risk appetite than men in the adventure sports domain. However, it was observed that in three out of the four domains being tested for men had a higher risk appetite than women i.e. they are willing to make decisions involving a higher amount of risk than women.

Student Research under BEEC
Abstracts

Using Behavioural Economics to Encourage Sustainable Consumption in Consumers

Meera Balasubramanian (B.Sc.2016-19)

Sustainability has become one of the most important goals for economic development all over the world. The trend of fast fashion clothing among manufacturers and consumers poses an urgent challenge for the larger goal of promoting sustainable consumption. The fashion industry is the world’s second-largest polluter, second only to oil and gas. To address this growing problem, producers and consumers across countries must adapt to a more sustainable way of clothing production and consumption. Sustainable fashion, a newer concept, is not as popular as fast fashion yet, but could hold the answers to solving the issue of fashion waste in the near future. This study used an experiment to test whether an intervention based on the availability heuristic literature could influence and educate individuals about sustainable fashion and the dangers of fast fashion to the environment. Information interventions were conducted on an experimental group of 44 individuals over a period of four months using a messaging app. The results were largely positive, and a change in attitude could be noted over time.

Food App discounts and changing consumption pattern in young adults

Olivia Adhikary (B.Sc.2016-19)

The issue of rising obesity in the current generation has become a cause for concern and a solution needs to be found for the same. It has been noticed in recent years, that the current generation has shown a trend to “eat out” more and spend more on fast food consumption. This study aimed at examining the impact of discounts and offers on increased consumption of junk food. The secondary aspect of this study examines rising spending patterns due to “eating out”. A primary survey was conducted of 150 college students to understand the consumption pattern of young adults between ages of 18-25 years and whether their usage of popular food apps and the discounts offered had changed their food consumption and expenditure pattern. The results of this study reveal a relationship between offers provided on food apps and an increase in “eating out” consumption.

Anchoring and Framing Effects in Art Trade

Harshita Vaddadi (B.Sc.2016-19)

This study aimed at exploring the influence of anchoring and framing effects observed in auction markets for paintings. The objective of the study was to find out whether behavioral heuristics played a role in a consumer’s determination of the worth of a painting. An experiment was conducted on 62 college students as test subjects using control and treatment groups. Results of the study indicated that the author’s hypothesis regarding anchoring and framing effects was acceptable. Framing and anchoring effects skewed the treatment group’s ability to assign a value to a painting objectively. The treatment group assigned higher value to paintings that had a higher “bid price” and also assigned a higher value to paintings that had information that suggested that the painting as a high end masterpiece or made by a famous artist. The results of this study have various implications on consumer behaviour towards luxury goods.

Influence of Social Environment on Consumer Behaviour for the Purchase of Branded Products

Reetama Das (M.Sc.2016-18)

A consumer’s social surroundings play a very crucial role in consumer behaviour. The social class or social group the consumer belongs to determines his taste and preferences. A consumer always has a need to belong, to be a part of a group or class to define his or her identity. Hence to live up to the norms of the social class or group he has to fulfil the expectations of that group in order to maintain group membership. When people buy brands, they don’t just buy it for consumption purpose but to expresses their identity or aspiration. Social media also plays an important role in influencing consumer behaviour.

Influence of Behavioral Biases on Financial Decision Making: A Gender Based Study

Mrunal Shahade (M.Sc.2016-18)

The field of behavioral finance, evolved from the limitations of the efficient market hypothesis. This research studies the influence of Affect Heuristic, with respect to loss aversion, risk aversion and regret aversion, Self-attribution Bias, Substitution Effect and Illusion of Control on the financial decision making of investors. Being a gender based study, this research also analyses whether gender differences persist in financial decision making. A qualitative research was conducted and the data of which was collected by means of a questionnaire, including thought experiments. Further, for data validation, the Chi-square Goodness of Fit Test and the Chi-square Test of Association were used. The study reveals the impact of heuristics on investor behaviour while reflecting many thought-provoking results that contradict the existing literature as well as many stereotypes present about gender and financial investing behaviour.

Student Research under BEEC
Abstracts

Behavioural Interventions for Financial Literacy and Financial Health of individuals

Chinmayi Dudani (BSc. 2017-20)

This study attempts to explore various behavior change barriers which interrupts financial knowledge and financial outcomes. Individuals may have motivation to learn and have adequate tools to make informed choices, but they may face behavioral constraints in converting their financial knowledge into concrete action. Behavioral interventions were conducted with a small sample of middle aged working-class people to explore whether financial literacy can lead to micro saving outcomes and financial well being of these individuals. It was found that regular interventions increased the level of financial knowledge and awareness. The subjects also exhibited behavioral biases like Bandwagon effect and present bias preference which did impact savings behavior.

Behavioral factors that affect impulse buying in the domain of retail therapy

Jewel Ann Sunny (BSc. 2017-20)

In an environment of intense competition in the retail industry, retailers are required to understand consumer wants and preferences that influence buying decisions. The aim of this study was to understand the impact of marketing, personal, psychological, situational and social factors on impulse buying behaviour and whether it leads to financial debt, overall unhappiness or is a state of addiction. This quantitative study explores the relationship among different independent variables like store atmosphere, promotional activities, payment ability and income level and gender and how they affect the impulse buying behaviour of consumers. The analysis of 100 primary survey responses established an association between impulse buying and these variables. It was also revealed that impulse buying is a form of retail therapy.

Millennial spending behaviour: Impacts of expenditure on food ordering, shopping and travelling

Gautam Chawla (BSc. 2017-20)

Previous studies have shown that millennials tend to have significant short-term debt and spend most on products and experiences that they can see people consuming on social media. This paper explores the effects of social media trends on millennial savings by exploring the impact of social media on spending behavior on food, travel and shopping. Analysis of the primary survey data found that the three factors resulting in the highest frequency of purchases were discounts, special occasions and friendly gatherings. In addition to associations between the purchase category and spending preferences, the analysis also revealed that value for money and convenience were high for both online as well as offline shoppers.

Impact of social media marketing on retail apparel brands

Susan Mathew (BSc. 2017-20)

Over the last ten years social media has become a significant marketing tool. It has not only constituted a new magnitude of marketing but has also granted many opportunities to marketers to enhance brand recognition among consumers. The aim of this study is to explore the impact of social media marketing on retail apparel brands and which age group and gender demographic is most influenced. A primary survey was conducted to study customers preferences on engaging with retail apparel brands through social media. The analysis of the responses revealed that the age group of 18-24 years is more impacted compared to other age groups and that there is no difference between the impact on males and females.

Brand ambassadors affecting consumer behavior

Shruti Gupta (BSc. 2017-20)

Brand ambassadors play an important role in the marketing campaign of many products. It is assumed that watching one’s favorite actors and models advertising a particular product, creates a positive image of that product in one’s mind. People tend to associate the characteristics of the person to the product, which helps them to relate with the product. As they buy and use the products, they feel connected to their role models on a personal level. This study aims to analyze the impact of brand ambassadors on the buying behavior of consumers of skincare and cosmetics. The underlying assumption of the study is that the cognitive bias “halo effect” would influence consumers’ favorable perceptions regarding cosmetics and skincare products via the use of celebrity endorsers. Analysis of the data collected via primary survey showed that a larger part of the respondents saw cosmetics promotions as deluding which caused doubt and only 37% of the respondents said that promotions involving brand ambassadors impact their buying choices.

Student Research under BEEC
Abstracts

Using Techniques of Behavioural Economics to Nudge the Youth Towards a Sustainable Diet

Apara Kale (B.Sc. 2018-21)

This research aimed to use techniques of behavioural economics to nudge experiment participants towards a sustainable diet. The methodology used is a behavioural intervention using nudges. The dietary behavior was measured using a questionnaire before and after the intervention. Interventions included information through images, infographics, videos and articles. A Wilcoxon Signed-Rank Test was administered to calculate the statistical significance of the changes. At a five percent level of significance, some statistically significant and positive changes were observed. The willingness to switch to a more plant-based diet did increase significantly which was one of the objectives of this research.

Analysing the Societal Attitude towards Individuals who are addicted to substances

Khyati Mehrotra (B.Sc. 2018-21)

Substance abuse or addiction is an issue that is not openly discussed in our society. There exist many communication barriers that don’t allow the society to speak about it. One of the most important barriers are “Stigmatization”. The society has many misconceptions about substance abuse and addiction. They generally show a negative attitude towards it. Therefore, individuals suffering from addiction are discriminated against and isolated. Addiction is not treated as a medical condition. The study is entirely primary in nature. It focused on understanding the complex attitude of the society towards addicts. The study is spread across the various states of the country, targeting individuals from age groups 18 and above. An analysis entirely based upon the data received from the survey included sectional analysis and age wise and gender wise analysis of specific findings whose responses were scattered. The result showed that although there was a certain level of acceptance within the respondents, there was still a presence of unawareness amongst other factors that hindered the understanding of addiction showing how complex attitude towards an addict can be.

Considering Effort Heuristic as a Criterion for Mental Accounting of Income Sources and Self-Assessing Risk Tendencies

Harsh Natekar (B.Sc. 2018-21)

Mental accounting is the termed coined by Thaler (1999) for the set of cognitive operations used to organise, evaluate and keep track of financial activities. Individuals have different mental accounts with respect to the source of income. Depending on whether the source is a real effort task or a windfall gain, individuals have different spending tendencies. This paper is a research proposal for a thought experiment, investigating this phenomenon further, by testing the hypothesis that Individuals use effort heuristic as a criterion for organising different income sources into mental accounts, as effort is generally used as a heuristic for value and quality. The study hopes to establish whether effort taken to earn the income impacts the risk aversion of individuals.

An empirical investigation into the impact of economic and behavioural factors influencing an individual’s investment decision-making behaviour

Ritodeep Ray (B.Sc. 2018-21)

The purpose of this study was to understand and determine the difference between the influence of Economic and Behavioral factors on investment decision-making behavior. A questionnaire was employed to collect data from investors using the convenience sampling methodology. The total number of responses received was 196 Descriptive analysis showed that investors were primarily seen to have the objective of accumulating wealth while investing with their strategy being long-term gains. Monthly portfolio monitoring was seen to be the most popular among investors, with most of them having investing experience under three years. To determine the primary contributing elements of behavioral and economic aspects, factor analysis was used. The findings reveal that behavioral factors have a greater impact on investor decision-making than economic factors.

How Framing Effect, Anchoring, Halo Effect & Representative Bias Play A Role in Willingness To Accept And Pay For The Covid 19 Vaccine

Vibhavari Iyer (B.Sc. 2018-21)

The aim of the study was to find how cognitive biases play a role at the time of vaccination, and how it affects willingness to pay for the vaccination. From the collection and analysis of the data it was seen that the heuristics affect the way people choose the vaccine and the willingness to pay also differs along with it. Anchoring bias effected people’s willingness to pay an amount equivalent to the anchor price. When we can communicate about the vaccine with trust and give people certain information which produces a sense of fear about taking the vaccine it dissuades them but when officials with knowledge of the market present them with information the people are more likely to believe them and increase the willingness to pay.

A Study on Digital Payments System with Perspective of Customer’s Adoption

Angelaa Kaur (B.Sc. 2018-21)

The use of digital payment platforms like digital wallets, payment cards, mobile banking etc. has been rapidly increasing in recent times and has become a backbone for initiatives pertaining to financial inclusion all across the world. In India, the adoption rate continues to remain low. Adverse times like demonetization in 2016 and Covid-19 pandemic lockdown during 2020 gave a great deal of acceleration for the changeover to digital transaction. However as the situation returns to normal, data shows that people prefer to switch back to cash transactions. This paper aimed to analyse the possible behavioural reasons for the low rates of adoption of digital payments among consumers and the effectiveness of incentives in influencing adoption. In order to ascertain the various drivers and inhibitors behind digital payment adoption, this study uses data of 154 respondents of various demographics across India. Using various statistical tools and regression analysis, the results of this study reveal ease of use is a major factor that promotes use of digital payments among consumers whereas the fear of being tracked and having a bad experience are strong deterrent factors, reducing the likelihood of increase in adoption of digital payments while ease of use promotes it. Post Covid-19 lockdown data also shows demographic factors like gender and income have a crucial role to play in the rate of adoption of digital payments.

Using Techniques of Behavioural Economics to Nudge the Youth Towards a Sustainable Diet

Apara Kale (B.Sc. 2018-21)

This research aimed to use techniques of behavioural economics to nudge experiment participants towards a sustainable diet. The methodology used is a behavioural intervention using nudges. The dietary behavior was measured using a questionnaire before and after the intervention. Interventions included information through images, infographics, videos and articles. A Wilcoxon Signed-Rank Test was administered to calculate the statistical significance of the changes. At a five percent level of significance, some statistically significant and positive changes were observed. The willingness to switch to a more plant-based diet did increase significantly which was one of the objectives of this research.

Analysing the Societal Attitude towards Individuals who are addicted to substances

Khyati Mehrotra (B.Sc. 2018-21)

Substance abuse or addiction is an issue that is not openly discussed in our society. There exist many communication barriers that don’t allow the society to speak about it. One of the most important barriers are “Stigmatization”. The society has many misconceptions about substance abuse and addiction. They generally show a negative attitude towards it. Therefore, individuals suffering from addiction are discriminated against and isolated. Addiction is not treated as a medical condition. The study is entirely primary in nature. It focused on understanding the complex attitude of the society towards addicts. The study is spread across the various states of the country, targeting individuals from age groups 18 and above. An analysis entirely based upon the data received from the survey included sectional analysis and age wise and gender wise analysis of specific findings whose responses were scattered. The result showed that although there was a certain level of acceptance within the respondents, there was still a presence of unawareness amongst other factors that hindered the understanding of addiction showing how complex attitude towards an addict can be.

Considering Effort Heuristic as a Criterion for Mental Accounting of Income Sources and Self-Assessing Risk Tendencies

Harsh Natekar (B.Sc. 2018-21)

Mental accounting is the termed coined by Thaler (1999) for the set of cognitive operations used to organise, evaluate and keep track of financial activities. Individuals have different mental accounts with respect to the source of income. Depending on whether the source is a real effort task or a windfall gain, individuals have different spending tendencies. This paper is a research proposal for a thought experiment, investigating this phenomenon further, by testing the hypothesis that Individuals use effort heuristic as a criterion for organising different income sources into mental accounts, as effort is generally used as a heuristic for value and quality. The study hopes to establish whether effort taken to earn the income impacts the risk aversion of individuals.

An empirical investigation into the impact of economic and behavioural factors influencing an individual’s investment decision-making behaviour

Ritodeep Ray (B.Sc. 2018-21)

The purpose of this study was to understand and determine the difference between the influence of Economic and Behavioral factors on investment decision-making behavior. A questionnaire was employed to collect data from investors using the convenience sampling methodology. The total number of responses received was 196 Descriptive analysis showed that investors were primarily seen to have the objective of accumulating wealth while investing with their strategy being long-term gains. Monthly portfolio monitoring was seen to be the most popular among investors, with most of them having investing experience under three years. To determine the primary contributing elements of behavioral and economic aspects, factor analysis was used. The findings reveal that behavioral factors have a greater impact on investor decision-making than economic factors.

How Framing Effect, Anchoring, Halo Effect & Representative Bias Play A Role in Willingness To Accept And Pay For The Covid 19 Vaccine

Vibhavari Iyer (B.Sc. 2018-21)

The aim of the study was to find how cognitive biases play a role at the time of vaccination, and how it affects willingness to pay for the vaccination. From the collection and analysis of the data it was seen that the heuristics affect the way people choose the vaccine and the willingness to pay also differs along with it. Anchoring bias effected people’s willingness to pay an amount equivalent to the anchor price. When we can communicate about the vaccine with trust and give people certain information which produces a sense of fear about taking the vaccine it dissuades them but when officials with knowledge of the market present them with information the people are more likely to believe them and increase the willingness to pay.

A Study on Digital Payments System with Perspective of Customer’s Adoption

Angelaa Kaur (B.Sc. 2018-21)

The use of digital payment platforms like digital wallets, payment cards, mobile banking etc. has been rapidly increasing in recent times and has become a backbone for initiatives pertaining to financial inclusion all across the world. In India, the adoption rate continues to remain low. Adverse times like demonetization in 2016 and Covid-19 pandemic lockdown during 2020 gave a great deal of acceleration for the changeover to digital transaction. However as the situation returns to normal, data shows that people prefer to switch back to cash transactions. This paper aimed to analyse the possible behavioural reasons for the low rates of adoption of digital payments among consumers and the effectiveness of incentives in influencing adoption. In order to ascertain the various drivers and inhibitors behind digital payment adoption, this study uses data of 154 respondents of various demographics across India. Using various statistical tools and regression analysis, the results of this study reveal ease of use is a major factor that promotes use of digital payments among consumers whereas the fear of being tracked and having a bad experience are strong deterrent factors, reducing the likelihood of increase in adoption of digital payments while ease of use promotes it. Post Covid-19 lockdown data also shows demographic factors like gender and income have a crucial role to play in the rate of adoption of digital payments.

2019