Would Polymer Banknotes (Plastic Money) Influence Customer Intention to Buy? An Empirical Study from Jordan

Abstract

The goal of the study was to see how polymer banknotes affected users' purchasing intention. Variables affecting the properties of polymer banknotes were considered, including security, ease of use, convenience, and durability. To achieve the study's main goal, quantitative methods were used, and a questionnaire was created and posted online through Google Forms to collect primary data. The questionnaire was completed by 403 people, and the data was screened and analyzed using SPSS.The study found that using Polymer money influenced people's behavior, particularly in terms of purchase patterns, decisions, and impulsive behavior toward purchases. This was attributed to the security and simplicity of using Polymer money, which appealed to many people. Furthermore, the study found that people lost their feeling of spending, meaning that using polymer money didn't feel like spending to them, effectively eliminating the moral guilt associated with excessive spending and encouraging more impulsive buying decisions.Based on the findings, the study recommends that a study be conducted to compare the use of Polymer money with tiny and large banknotes to see what kind of difference there is.

1. Introduction

The issuing and use of plastic coins made of polymer marked a new stage in the money industry’s evolution, and they are now available in approximately 30 nations across the world (Wormald et al., 2021). In addition to the need to reduce waste and preserve the environment, the goal was to create money that was safer for the environment and characterized by higher sustainability (Bengiat et al., 2020). Australia’s experience with the adoption of plastic money in 1988 encouraged the rest of the world to issue and deal with polymer money.After Australia experienced currency fraud due to the difficulty of scanning, photographing, and counterfeiting, and whichhad a significant impact on its economy, it resorted to plastic currencies (Luján-Ornelas et al., 2018).

In May 1967, high-quality counterfeit 10-dollar bills began to circulate in Sydney, with just minor discrepancies between them and genuine bills. The Reserve Bank of Australia was enraged by the appearance of counterfeit currencies, which were accompanied by the introduction of new color printing machines and scanners (Wakefield & Finlay, 2019). Following that, Australia tried to develop a money composition that would prevent counterfeiting, so it turned to the forests to develop a cellulosic mixture that would accomplish the task, and Australia eventually developed a polymer money composition that is difficult to counterfeit (Scotcher & Bradshaw, 2018).

According to Antony (2018), plastic money or polymer money appeared as an alternative to traditional paper money, and since the motive behind reckless buying and making quick purchasing decisions was credit cards and multiple discounts due to the lack of payment hassles, individuals fail to assess their actual need for a particular thing and end up making unnecessary buying intentions and indulging in impulsive purchases, i.e. changing a diaper.

According to Varona-Marin (2014), dealing with traditional currency is linked to the idea of handing over money to the seller and seeing that there is little money left in the wallet, and as a result, people know that there are spending activities that they need to focus on. When credit cards were introduced, consumer behavior turned toward unintentional spending because money remained in the wallet but the user could purchase without the inconvenience of using cash.

2. Literature Review

2.1. Polymer Banknotes

Polymer money, or plastic money, is defined by Downham et al. (2018) as an environmentally friendly currency composed of 75 percent cotton and 25 percent linen blend and it is not plastic in the literal sense of the word, but its shape and feel are comparable to plastic, therefore the name. According to Aves (2019), the use of plastic money or polymer coins date back to 1988, and Australia was the first country in the world to adopt this type of money. Kuwait was the first Arab country to print this type of money in 2013, and Egypt was the first Arab country to use this type of money in the last quarter of 2021.

2.2. Characteristics of Polymer Banknotes

According to Harding (2017), around 28 nations throughout the world have embraced polymer currencies, including Brazil, China, Singapore, Canada, Romania, the United Kingdom, and others. The most distinguishing characteristics of this type of money are that it is made of polymer material, which is less expensive to manufacture than banknotes and coins, and that its shelf life is approximately 5 times longer than ordinary money, which is more powerful and thinner, i.e. It is not actually plastic, as some may believe, but this term was given to this type of money in general. One of the properties of the polymer currency, according to Wang et al. (2021), is that it is difficult to counterfeit and that its market cannot be controlled. It’s also safe for the environment and difficult to write on. It is dirt, water, and moisture resistant, and it does not spread bacteria or viruses.

This type of money reduced printing costs, and its size is like the size of paper currency and bears the same design according to the different denominations.The polymer currency is environmentally friendly, as it is made from a mixture of cotton and linen and has a longer life, which means less waste, and thus contributes to preserving the environment.

2.3. Disadvantages of Polymer Banknotes

Because every coin has two sides, the polymer coin has some disadvantages. For example, this type of money may not be suitable for money-counting machines in banks, as these machines may be unable to count and sort the currency, necessitating the need to either reconsider the currency’s components or modify the machines to accommodate the polymer currency. The failure of the state of Nigeria and its return to traditional money after the colors of the polymer currency began to fade and traders refused to exchange it shows that the colors of the currency might fade if it is not printed well.One of the disadvantages of the polymer coin, according to Wakefield and Finlay (2019), is its vulnerability to breakage, as folding it violently causes it to wrinkle along the fold line, and if it comes into contact with water, it becomes sticky and difficult to handle.

2.4. Purchase Intention

Purchase intent is defined by Peña-García et al. (2020) and Maharani et al. (2020) as the possibility of a consumer planning to purchase over a period of time, and McClure and Seock (2020) add that purchase intent is similar to purchase decision because the consumer had decided to buy and kept the intention on. The consumer, on the other hand, evaluates the available options, as well as the factors that influence the intention to purchase, such as credit, payment methods, and terms, promotion methods, and so on (Hashem, 2019).

According to Pradeep et al. (2021) and Nguyen et al. (2020), the intent to purchase does not imply that the consumer will make a purchase; rather, it is a potential that is dependent on the presence of variables that may push the customer to make or cancel a purchase. According to Hoang et al. (2020) purchasing intent is one of the inputs that marketing managers use to simplify the work of projecting future sales and so identifying the actions to be done to regulate consumer purchasing behavior.

2.5. Polymer Banknotes Influence on Customer Behavior and intention to Buy

Antony (2018) aimed to identify customers’ perceptions of plastic currency and its impact on their consumption and spending behaviors. The researcher used a sample of 250 consumers from five banks in the United Arab Emirates. After analyzing the data, the study discovered that plastic money has a significant impact on consumer spending patterns, as it is difficult for them to manage their money due to the convenience and appropriateness of using it, which makes it easy to spend. As a result, spending has increased, as have burdens and financial pressures.

After a previous study found that customers in the United States of America, Varona-Marin (2014) examined whether this phenomenon applies to the Canadian context leveraging the fact that the Bank of Canada recently introduced polymer banknotes to replace paper banknotes. In an experiment, they examined whether the higher familiarity associated with the paper banknotes leads Canadians to value them more than polymer banknotes of the same denomination. Specifically, they predicted that in Canada people would perceive more value in a $20 paper banknote than in a $20 polymer banknote and that this effect would be less noticeable between a $100 paper banknote and a $100 polymer banknote. They tested the hypothesis experimentally with a sample of University of Waterloo undergraduate students (n = 67) in a mixed factorial design. However, their results failed to support the predictions, casting doubt on the generalizability and robustness of the familiarity effect to the Canadian context, despite the limitations of the experiment.

Launching from previous arguments and studies, the current study suggested the following hypotheses:

Main Hypothesis:

H: Polymer banknotes have a statistically significant influence on customers’ intention to purchase.

Sub-Hypotheses:

H1: Polymer banknotes security has a statistically significant influence on customers’ intention to purchase.

H2: Polymer banknote’s ease of use has a statistically significant influence on customers’ intention to purchase.

H3: Polymer banknotes durability has a statistically significant influence on customers’ intention to purchase.

H4: Polymer banknotes convenience has a statistically significant influence on customers’ intention to purchase.

To describe the relationship between variables (Figure 1), the following model was built by the researcher and with the aid of Antony (2018) and Varona-Marin (2014).

Figure 1: Study Model

3. Methodology

3.1. Methodological Approach

The quantitative technique was used to collect primary data and achieve the study’s goal since it accepts the possibility of large samples due to numerical analysis and the capacity to generalize conclusions. Peat et al. (2020) defined quantitative methodology as research in which the researcher infers the social phenomenon using a variety of statistical methods, and through this approach, it is possible to link experimental observation and quantitative research, through measurement, and for the researcher to be sure of the validity of the measures, he uses measures of validity and reliability, and the use of quantitative methods. The use of quantitative approach requires defining the concepts that will be used in scientific research to choose the hypotheses that are determined in the beginning of the research, and then start the stage of data collection and arrangement, and statistical analysis to reach the desired results.

3.2. Population and Sampling

The population of the study consisted of citizens (customers). A convenient sample of 500 individuals was chosen to represent the study population. After theapplication process, 403 properly filled questionnaires were retrieved which presented a response rate of 80.6% as statistically accepted.

3.3. Tool of Study

A questionnaire was chosen to be a tool of study; the questionnaire was built with the aid of previous studies of Antony (2018) and Varona-Marin study (2014). The questionnaire consisted of two main sections, the first took into perspective demographics of the study sample, while the other contained statements related to study variables (security, ease of use, convenience, and durability). The questionnaire was built on a Likert 5-scale (1) Strongly disagree; (2) Disagree; (3) Neither agree nor disagree; (4) Agree; (5) Strongly agree, and it was uploaded on Google forms to gather responses from the sample individuals.

3.4. Screening and Analysis

SPSS was used to screen and analyze primary data. Cronbach’s Alpha was used to test the reliability of the study, Alpha value = 0.929 which was higher than the scale of 0.60. Following statistical tests were used:

. Mean and Standard Deviation

. Frequency and Percentages . Multiple Regression

. Linear Regression

4. Results

4.1. Demographic Characteristics

Frequency and percentages were calculated for the study sample based on (gender, age, experience, and income). It appeared through analysis that the majority ofthe sample were males forming 60% within the age range of 34–41 forming 55.3% of the total sample, and who held MA degree forming 53.8% of the total sample and who had an income that ranged between $1000–$1499 forming 42.7% of the total sample.

4.2. Questionnaire Analysis

Mean and standard deviation was calculated for study statements responses. It was seen through analysis that all statements scored higher than the mean of scale 3.00. The highest statement in mean 4.16/5.00 was articulated (It is suitable for my personality) while the lowest mean 3.18/5.00 was scored by a statement articulated (I find polymer banknotes slippery and hard to use) but still positive as it was higher than 3.00. The same process was done on study variables, mean and standard deviation of study variables (security, ease of use, convenience, and durability), it appeared that all variables scored higher than the mean of scale 3.00. The highest mean was for (security) 3.80/5.00 while the lowest mean was scored by (ease of use) 3.37/5.00.

4.3. Hypotheses Testing

4.3.1. Main Hypothesis

H: Polymer banknotes have a statistically significant influence on customers’ intention to purchase.

Multiple Regression test (Table 1) was used for the main hypothesis where F value = 128.783 was significant at 0.05 level, this managed to accept the hypothesis “Polymer banknotes have a statistically significant influence on customers’ intention to purchase”. R = 0.751 reflected a high correlation between the variables; also the independent variables explained 56.4% of the variance in customers’ intention to purchase.

Table 1: Testing Main Hypothesis

4.3.2. Sub-Hypotheses

H1: Polymer banknotes security has a statistically significant influence on customers’ intention to purchase

Linear Regression test (Table 2) was used to test sub- hypothesis, it was found out in testing 1^st sub-hypothesis that F value = 187.117 was significant at 0.05 level, so, Polymer banknotes security has a statistically significant influence on customers’ intention to purchase. R = 0.564 reflects a medium correlation between the variables, also the independent variable explained 31.8% of the variance in customers’ intention to purchase.

H2: Polymer banknotes ease of use has a statistically significant influence on customers’ intention to purchase.

Table 2: Testing 1^st Sub-Hypothesis

F value = 5.208 for the 3^rd sub-hypothesis was significant at 0.05 level, and indicated that Polymer banknotes ease of use has a statistically significant influence on customers’ intention to purchase (Table 3). R = 0.113 reflected a weak correlation between the variables; also the independent variable explained 1.3% of the variance in customers’ intention to purchase.

H3: Polymer banknotes durability has a statistically significant influence on customers’ intention to purchase.

Table 3: Testing 2^nd Sub-Hypothesis

3^rd sub-hypothesis F value = 65.066 was significant at 0.05 level and Polymer banknotes durability has a statistically significant influence on customers’ intention to purchase (Table 4). R = 0.374 reflects a medium correlation between the variables; alsothe independent variable explained 14% of the variance in customers’ intention to purchase.

Table 4: Testing 3^rd Sub-Hypothesis

H4: Polymer banknotes convenience has a statistically significant influence on customers’ intention to purchase.

4^th hypothesis F value = 282.932 was significant at 0.05 level and Polymer banknotes convenience has a statistically significant influence on customers’ intention to purchase (Table 5). R = 0.643 reflects a high correlation between the variables; also, the independent variable explained 41.4% of the variance in customers’ intention to purchase.

Table 5: Testing 4^th Sub-Hypothesis

5. Discussion

The purpose of this study is to see how introducing Polymer money (banknotes) affects customers’ willingness to buy. For that reason, a quantitative method was used by using a questionnaire, which was completed by 403 people.

The data was screened and analyzed using SPSS, and the following conclusions were reached:

. The concept of Polymer money appeared to be digested  by respondents as all of them had positive attitudes towards answering the questionnaire.

. All variables seemed to be influential on customer  intention to buy, which included an apparent influence of (security, ease of use, convenience, and durability). .   In the 1^st rank, convenience appeared to be highly influential on customers’ intention to buy as it scored a variance of 41.4%.

. Security of polymer banknotes came in the 2^nd rank of influence as it scored a variance of 31.8%.

. 3^rd rank was taken by durability with a medium level of correlation and a variance of 14%.

. 4^th variable came out to be influential but with a weak correlation and a variance of 1.3%.

The study was able to demonstrate that polymer banknotes are broadly accepted by customers since all of them looked to be pleased about the concept of replacing their traditional money with polymer banknotes. Customers, on the other hand, appeared to be frustrated by the durability of polymer banknotes, which included the fact that they are difficult to bend, slippery when wet, and the possibility of colors fading over time, given that the variable of durability had a weak correlation with a variance of 1.3 percent. Customers were more comfortable using polymer money because of its high security and inability to be counterfeited, according to the study, and this, in addition to their convenience, helped to increase customers’ intention to spend.

The survey also discovered that consumers regard plastic money solely in terms of acceptability, i.e., ensuring the acceptance of currency categories made of polymer material in their daily lives and their adoption by their country’s central bank, which would encourage them to trade it, as she stated. The study also indicated that the idea of polymer money offered people a senseof enhanced purchasing power, similar to shopping using credit cards, because they do not feel like they have spent a lot of money and hence make impulsive and misinformed purchasing decisions agreeing with Wakefield and Finlay (2019).

According to the study’s findings, the respondents also saw polymer money as a change that suits their personality in terms of safety and difficulty of imitation and counterfeiting, in addition to the new form that changes the banknotes that they deal with daily.

Because it carries less risk than paper money and is more secure than using a credit card because there is no need to remember all passwords, as well as the inability to counterfeit due to the inability of modern and color printers to deal with it, polymer money has the effect of increasing consumers’ purchasing power and changing their consumer behavior toward making quick purchasing decisions.

6. Conclusion and Recommendations

The plastic currency, or polymer currency, will have an impact not only on consumer behavior, such as intent to buy or impulsive behavior behind the purchase, but it has also been proven in the current study that it will have an impact on the parallel economy of countries, which is the economy that is not included in the state’s national income and is not under its management, such as simple handicrafts and handmade products, and individual self-employment (Tran, 2021; Luong et al., 2021; Nguyen &Duong, 2021). The polymer currency will have an impact on this type of economy because the state will be unable to track the flow of currencies and the basis for their acceptance by individuals whose incomes are unrelated to the state or its taxes. As a result, the polymer currency may help in the elimination of the parallel economy, counterfeit currency, and money market control.