Demonetization occurs when a governing body cancels the legal tender status of a currency unit in circulation. This can occur if an economy is struggling against inflation or deflation or against some form of corruption. Demonetization is also used to hinder a cash dependent economy or encourage trade. Hence an attempt has been made in this study to know the effect of demonetization in online shopping. For this purpose a well structured questionnaire framed and circulated among 225 online shoppers in Vellore city. Findings of the study revealed that least preferred product before as well as after demonetization was Books and majority of the respondents expressed that they will continue their purchase through online shopping even after demonetization. The conclusion of the study is no significant difference between online product preference ranking before and after demonetization
Keywords: Demonetization, Inflation, Deflation, Online Shopping, Purchasing Behaviour etc.
