AN ANALYSIS OF CONSUMER ATTITUDES TOWARDS SHARE TRADING: COMPARISION COMPARISION BETWEEN ONLINE SHARE TRADING AND OFFLINE SHARE TRADING
SUMMER INTERNSHIP REPORT
Submitted fo t!e P"ti"# Fu#fi#me$t of MBA De%ee of
1
CERTIFICATE
This is to certify that ________ ____________ ________ ________ ________ ________ ______ __ has undertaken undertaken the Summer Summer Internship Internship Training Training at Sharekhan Sharekhan Limited during 01/05/08 and 30/06/08 30/06/08 !e has "orked under my guidance for the #ro$ect Tit%e &'n ana%ysis of consumer attitudes to"ards share trading( comparison )et"een on%ine share trading and off%ine share trading* in Sharekhan Sharekhan Ltd
This pro$ect report is prepared prepared in partia% partia% fu%fi%ment fu%fi%ment of +aster of ,usiness ,usiness 'dministratio 'dministration n -+,'. to )e a"arded )y 'mity 'mity niersity ttar #radesh
To the )est of my kno"%edge kno"%edge this piece of "ork is origina% origina% and no part of this report has )een su)mitted )y the student to any Institute/niersity Institute/niersity ear%ier
2
CERTIFICATE
This is to certify that ________ ____________ ________ ________ ________ ________ ______ __ has undertaken undertaken the Summer Summer Internship Internship Training Training at Sharekhan Sharekhan Limited during 01/05/08 and 30/06/08 30/06/08 !e has "orked under my guidance for the #ro$ect Tit%e &'n ana%ysis of consumer attitudes to"ards share trading( comparison )et"een on%ine share trading and off%ine share trading* in Sharekhan Sharekhan Ltd
This pro$ect report is prepared prepared in partia% partia% fu%fi%ment fu%fi%ment of +aster of ,usiness ,usiness 'dministratio 'dministration n -+,'. to )e a"arded )y 'mity 'mity niersity ttar #radesh
To the )est of my kno"%edge kno"%edge this piece of "ork is origina% origina% and no part of this report has )een su)mitted )y the student to any Institute/niersity Institute/niersity ear%ier
2
ACKNOWLEDGEMENT
&2ai%ure to prepare is preparing to fai%* I here)y epress my sincere thanks to our _______________________________ for dee%oping the ece%%ent academic enironment in the institute and encouraging the students to pursue such an important area of study study __________________________ ____ for his motiation and I epr epress ess my deep deep sense sense of grati gratitu tude de to ______________________
encouragement throughout the period of the pro$ect study I am inde)ted to his guidance spirit and a%ua)%e suggestions and "ords of "isdom "hich "i%% go a %ong "ay in dee%oping me to face the corporate and to take up a%% the cha%%enges !e a%"ays guided me through the uncharted seas took great pains and spared most a%ua)%e time "heneer I "anted it _____________________________ ______ I o"e enormous enormous inte%%ect inte%%ectua% ua% de)t de)t to"ard to"ardss my indust industry ry guide guide _______________________ (Sa%es +anager 4 Sharekhan %td. for he%ping me in %earning the consumer perspectie and eposing
me to issues ino%ed in the marketing of financia% serices It "as his usefu% guidance and a%ua)%e suggestions that %ed to the successfu% comp%etion of this pro$ect I "ou%d a%so %ike to thank him particu%ar%y for proiding me "ith the much needed corporate eposure for "hich this summer internship pro$ect has )een especia%%y designed for and for his %essons "hich "i%% sure%y pae my path in turning up as responsi)%e corporate persona%ity I am o)%iged to +anagement of Sharekhan Ltd for cooperation during the Internship +y increased spectrum spectrum of kno"%edge kno"%edge in this fie%d is the resu%t of their constant superision superision and direction that has he%ped me to a)sor) re%eant and high ua%ity information I "ou%d %ike to thank a%% the respondents "ithout their cooperation my study "ou%d not hae )een possi)%e I fee% high%y inde)ted to my parents and my )rother and sister "ho hae proided me he%p direct%y or indirect%y in successfu% comp%etion of this study Last )ut not the %east I fee% high%y inde)ted to '%mighty od "ho he%ped throughout the pro$ect for the successfu% comp%etion of this pro$ect
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TABLE OF CONTENTS
Acknowledgement !" E#ec$t%&e $mm')
!
*" L%te't$e S$&e)
+
+" Intod$ct%on +"! ,%to) O- Stock M'ket
.
+"* Stock M'ket
/
+"+ Onl%ne S0'e T'd%ng
1
+". Ad&'nt'ge And D%'d&'nt'ge
2
+"/ O--l%ne S0'e T'd%ng
3
+"1 Ad&'nt'ge And D%'d&'nt'ge
."
/"
3
+"2 4$5oe O- Stock M'ket
6
+"3 Rel't%on Between Stock M'ket And Moden F%n'nc%'l S)tem
6
+"6 4eent St'te O- Stock M'ket
!7
Con$me Be0'&%o$
!!
."! Re'on -o St$d)%ng Con$me Be0'&%o$
!!
."* F'cto T0't In-l$ence Con$me Be0'&%o
!*
Com5'n) 5o-%le 8 S0'ek0'n ltd" /"! M%%on
!+
/"* O%g%n
!+
/"+ 4od$ct O--eed 9) S0'ek0'n ltd"
!/
4
/". Re'on to C0ooe S0'ek0'n ltd" 1"
!/
Ree'c0 Met0odolog) 1"! Ree'c0 O9:ect%&e
!2
1"* Met0odolog) 1"*"! Collect%on o- D't'
!3
1"*"* S'm5l%ng Met0odolog)
!3
1"*"+ T%me F'me
!6
1"+ ;$et%onn'%e De%gn
!6
1". De%gn%ng ' Rel%'9le Int$ment
!6
1"."! 4%lot S$&e)
*7
1"."* S$&e) 4l'ce
*!
1"/ S'm5l%ng And S'm5le S%
2"
*!
1"/"! S'm5l%ng
*!
1"/"* S'm5l%ng Met0od
*!
1"/"+ 4o5$l't%on
**
1"/". S'm5le S%
**
1"/"/ S'm5le S%
**
D't' An'l)%
*.
2"! Dec%5t%&e St't%t%c
*.
2"* Coel't%on M't%#
*1
2"+ KMO 'nd B'tlett= Tet
*3
2". Tot'l >'%'nce E#5l'%ned
*6
2"/ Comm$n'l%t%e
+7 5
2"1 Com5onent M't%#
+*
2"2 Scee 4lot
++
2"3 Rot'ted Com5onent M't%#
+.
3" >%$'l Ill$t't%&e G'50
+1
6"
F$t$e O- S0'e T'd%ng w%t0 Ind%'n 4o9lem
2!
6"! Mo9%le T'd%ng 8 T0e F$t$e
2+
!7" Concl$%on 'nd Recommend't%on
2/
!!"
22
L%m%t't%on
!*" Anne#$e !*"! ;$et%onn'%e !+"
23
Re-eence
3!
6
LIST OF TABLES AND FIG?RES
2ig 51
7um)er of share shops
1
2ig 91
Scree #%ot
33
2ig 81 4 831
:isua% I%%ustratie graphs
36 4 90
Ta)%e 91
;escriptie Statistics
<
Ta)%e 9<
=orre%ation +atri
<5
Ta)%e 93
>+? and ,art%ett@s Test
<8
Ta)%e 9
Tota% :ariance
Ta)%e 95
=ommuna%ities
30
Ta)%e 96
=omponent +atri
3<
Ta)%e 99
Botated =omponent +atri
3
Ta)%e 81 C 8<8
:isua% I%%ustratie Ta)%e
38 4 6A
7
LIST OF STATISTICAL ANAL@SIS TOOLS ?SED
;escriptie Statistics
<
=orre%ation +atri
<5
>+? and ,art%ett@s Test
<8
Tota% :ariance
=ommuna%ities
30
=omponent +atri
3<
Scree #%ot
33
Botated =omponent +atri
3
8
“To understand life is to understand ourselves and that is both the beginning and the end of education. Education is not merely acquiring knowledge, gathering and correlating facts rather it is to see the signicance of life as a whole”
I hereby dedicate this iece of work to those two recious years of my life at !"# where I got the oortunity to understand the life outside the barriers of contemorary education.
9
C,A4TER !
EEC?TI>E S?MMAR@
10
11
12
C,A4TER 2
DATA ANAL@SIS
13
C,A4TER 3
>IS?AL ILL?STRATI>E GRA4,S
14
C,A4TER 6
F?T?RE OF S,ARE TRADING
15
C,A4TER !+
REFRENCES
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EEC?TI>E S?MMAR@
The o)$ecties of the proposed study are( 1. Identify Identify the specific specific factors that that affect consumer consumer attitudes attitudes to"ards to"ards share share trading trading a. Identify Identify the specific specific factors that that affect consume consumerr attitudes attitudes to"ards on%ine on%ine share trading trading ). Identify the specific factors that affect consumer attitudes to"ards off%ine share trading <. =omparison =omparison )et"een )et"een on%ine on%ine and off%ine off%ine share trading trading method methods s The methodo%ogica% approach to this study is descriptie )ecause "e attempt to identify and ep%ain aria)%es that eist in a gien situation and to descri)e the re%ationship that eists )et"een these aria)%es aria)%es in order to proide a picture picture of a particu%ar phenomenon phenomenon )ut not to ferret out cause4effect re%ati re%ations onship hip The The primar primary y data data "as co%%ec co%%ected ted throu through gh uesti uestionn onnair airee fi%%ing fi%%ing and )y conduc conductin ting g te%ephonic interie"s The secondary data "as co%%ected from $ourna%s tets "ritten )y reno"ned marketing gurus of reputed institutes around the "or%d and the internet India has a %arge chunk of popu%ation "hich is at %o"er income %ee% and at midd%e income %ee% There is a need of creating a"areness among them for share trading and the tremendous potentia% it has They are doing trading on the o%d methods "hich "ere used in the past 7o" "ith the adent of techno%ogy there are many options aai%a)%e to the traders "hich they can use "ithout any fear The trend is moing to"ards the on%ine share trading )ut sti%% it has a %ot to coer The traders are more of young age and midd%e age and don@t fear from risk taking )ut the %ack of kno"%edge doesn@t a%%o"s them them to do so So the stock stock )rokin )roking g compan companies ies shou%d shou%d take measure measuress to empo"e empo"err the norma% norma% inestors so that they can trade "ith the %atest techno%ogies aai%a)%e Target the youth as they are most potentia% customers of the stock market as their interest to"ards stock trading is increasing The stock )roking companies shou%d educate the inestors )y giing them time%y he%p in the form of reports and tips The companies shou%d try to "ork in more transparent "ay "ay #eop%e #eop%e "ant "ant good good serice sericess and are ready ready for paying paying etra etra penny penny #eop%e #eop%e prefer Dase of transactions and security So )rokerage companies shou%d focus on security and making transactions as simp%e as possi)%e "ith simp%e usage of techno%ogy The stock )roking companies shou%d a%so go for tie4ups "ith the %eading )anks
17
C,A4TER *
LITERAT?RE RE>IEW
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LITERAT?RE S?R>E@
The stock market has )een a part of peop%eEs %ies throughout the t"entieth century +i%%ions of peop%e around the "or%d hae money inested in their countries o"n respectie markets Since the coming of age of on%ine trading more peop%e hae )een inesting their money in stocks than eer )efore )ecause of the adantages it offers ?n%ine trading a%%o"s peop%e to trade stocks uick%y "ithout the he%p of a )roker %etting the inestors hae more contro% oer their transactions The competition )et"een companies has he%ped decrease the cost of making the transactions In addition to that ordinary peop%e no" hae access to information that cou%d on%y )e seen )y )rokers ?era%% on%ine trading saes time money and gies po"er to the inestor rather than the )roker The com)ined effects of financia% serices companies striing to drop the cost of proiding customer serice and the significant rise in indiidua% inestorsE interest in taking contro% of their o"n inestments continues to increase the use of on%ine securities trading 2urther many indiidua% inestors re%y on the internet as a means of %earning as much as they can a)out specific inestments )efore eecuting a stock or )ond trade on%ine and this factor a%one is changing the %andscape of financia% serices It is seen that the financia% serices firms are "a%king a fine %ine )et"een automating transactions )y putting po"erfu% inestment too%s in the hands of indiidua% inestors "hi%e at the same time educating them of the financia% )enefits of %ong4term inesting Fith the adancement of on%ine trading indiidua% inestors hae more contro% oer their funds than eer )efore yet "ith that freedom comes a high %ee% of responsi)i%ity to make sure the adice app%ications and too%s they gain access from financia% serices firms are in fact the )est match "ith their inestment needs 2or this industry ana%ysis can )e conducted in an effort to determine "ho has the po"er the customers or the supp%iersG =ompetitie forces proide )uyers or supp%iers "ith an adantage in terms of "ho ho%ds the )argaining po"er Tum)%ing markets fa%%ing share prices make us appear the trading eercise ery %ucratie ,ut sti%% puHH%ed "here "i%% "e )e a)%e to choose the right %ot from the markets
T0e 9et w') to 5ed%ct t0e -$t$e % to %n&ent %t"
19
C,A4TER +
INTROD?CTION
+"! ,%to) o- Stock M'ket 20
It "as in the year 1895 that the "orking of stock echange in India started ,SD is the o%dest stock market in India Indian stock trading started "ith 318 persons taking mem)ership in 7atie Share and Stock ,rokers 'ssociation "hich is no" kno"n as the ,om)ay Stock Dchange or ,SD in short In 1A65 ,SD got permanent recognition from the oernment of India 7ationa% Stock Dchange -7SD. comes second to ,SD in terms of popu%arity ,SD and 7SD represent themse%es as synonyms of Indian stock market The 30 stock sensitie inde or Sense "as first compi%ed in 1A86 The Sense is compi%ed )ased on the performance of the stocks of 30 financia%%y sound )enchmark companies In 1AA0 the ,SD crossed the 1000 mark for the first time It crossed <000 3000 and 000 figures in 1AA< The reason for such huge surge in the stock market "as the %i)era% financia% po%icies announced )y the then financia% minister ;r +an+ohan Singh The )uoyant mood of the market "as sudden%y gone "ith !arshad +ehta scam It came to pu)%ic kno"%edge that +r +ehta a%so kno"n as the )ig4)u%% of Indian stock market dierted huge funds from )anks through fraudu%ent means !e p%ayed "ith <90 mi%%ion shares of a)out A0 companies +i%%ions of sma%%4sca%e inestors )ecame ictims to the fraud as the Sense fe%% f%at shedding 590 points Thus from that day it )ecame ery c%ear that the stock market is not a p%ace "here you can earn money easi%y "ithout taking into considerations a)out your enironmenta% changes It a%so made it ery c%ear that the sma%% inestors shou%d themse%es as safe as possi)%e )ecause of the uncertainty in the market To preent such frauds the oernment formed The Securities and Dchange ,oard of India -SD,I. through an 'ct in 1AA< SD,I o)%ige seera% rigid measures to protect the interest of inestors 7o" "ith the inception of on%ine trading and dai%y sett%ements the chances for a fraud is ni% as the stock )roking companies had to make it ery to each and eery inestor )out the arious issues of the stock market Sense crossed the 5000 mark in 1AAA and the 6000 mark in <000 The 9000 mark "as crossed in une and the 8000 mark on Septem)er 8 in <005 'fter the %i)era%iHation "hen the gates "ere open for the foreign inestors the Indian stock market "as f%ooded "ith the 2;Is -foreign direct inestments. and the market has sho"n tremendous amount of o%ati%ity 'nd ery recent%y market has een touched the <1000 mark +"* Stock M'ket 21
The market or p%ace "here securities iH shares are echanged or traded or simp%y "here )uying or se%%ing of shares takes p%ace is ca%%ed stock echange or stock market In India there are t"o types of stock echanges( 1 7ationa% Stock Dchange -7SD. < ,om)ay Stock Dchange -,SD. 7SD is a +um)ai4)ased %argest stock echange in India in terms of dai%y turnoer and num)er of trades Though it is mutua%%y4o"ned )y a set of %eading financia% institutions %ike )anks insurance companies )ut its o"nership and management operate as a separate entities It is the second fastest gro"ing stock echange in the "or%d "ith a recorded gro"th rate of 166J It "as incorporated in 7oem)er 1AA< as a ta paying company In 'pri% 1AA3 it "as recogniHed as a stock echange under the Securities =ontracts 'ct 1A56 The capita% market -euities. segment of the 7SD commenced its operations in 7oem)er 1AA "hi%e operations in deriaties segment commenced in une <000 It is the third %argest Stock Dchange in the "or%d in terms of num)er of trades in euities ,SD is the o%dest stock echange in 'sia and a%so the )iggest in the "or%d in terms of %isted companies "ith 800 %isted companies as of 'ugust <009 It "as esta)%ished in 1895 It p%ayed a piota% ro%e in the dee%opment of its inde SD7SDK "hich is tracked "or%d"ide It has a #'7 India presence in 19 cities and to"ns In a nation "ith midd%e c%ass popu%ation of a)oe <00 mi%%ion most of "hom dream of a )etter financia%%y comforta)%e tomorro" the stock market is o)ious%y seen as the perfect p%ace to inest "hen you consider that stock markets can make you rich in a ery short span of time proided you p%ay your cards correct%y ,ut the scams in the %ast centuries hae made the inestors to p%ay it safe if they don@t kno" the ru%es of the game In the past fe" years though hae seen a "ae of techno%ogy enhancements s"eeping through the Indian share markets "iping out archaic conentions ;ue to this "e hae seen many changes coming into the picture %ike on%ine share trading gradua%%y coming to India These techno%ogica% innoations hae )een )rought out most proactie%y )y 7SD The on%ine share trading started "ay )ack in 2e)ruary <000 "ith the eo$it Securities conducting the first on%ine transaction "here 100 shares of Be%iance "as traded )y SD,I =hairman ; B +ehta for eo$it =hairman ' # >urien Since then a %ot has changed in the Stock market =urrent%y on%ine trading o%umes in India is $ust a)out <0J of the tota% trades S%o" off the )%ocks )ut on%ine share 22
trading in India is poised to gro" ery fast in the future 2rom a )ase of a)out Bs 3 crore in 'pri% <000 on%ine trading o%ume has risen to near%y In the stock market )asica%%y trading of shares is done apart from commodities trading Trading is the process of )uying at %o"er price and then se%%ing it at a higher price for earning profits Share trading is one of the most successfu% trading and it has )ecome simp%er fast and secure from off%ine trading or phone trading into on%ine trading ?n%ine trading is done "ith the he%p of internet ?ne of the )iggest pro)%ems "ith the stock market is that there are no guarantees 'fter doing a %ot of research at your home sti%% it may )e possi)%e that the stock "hich you had picked fa%%s to o)%iion Share trading is done in main%y t"o "ays( 1 ?n%ine share trading < ?ff%ine share trading +"+ ONLINE S,ARE TRADING
?n%ine share trading is done "ith the he%p of computer internet connection and "ith trading or de4 mat account is ca%%ed on%ine share trading or "e can say that on%ine trading is the trading of securities ia the internet If you "ou%d %ike to do on%ine share trading then you shou%d hae a computer internet connection and on%ine trading account It is done ia internet means that a%% the transaction are sett%ed e%ectronica%%y +". Ad&'nt'ge !"The first and main )enefit of this is that in on%ine trading the mem)er does not need to go to the
share market for checking "hich consumes a %ot of time '%% the information a)out shares stock market is $ust one c%ick a"ay and it has made trading much simp%e easy and attractie *" ;ependence on )roker or any)ody e%se is ni% for p%acing or suaring off the order In short one is
his/her o"n )oss for trading of shares ." Its not possi)%e or ia)%e for a )roker to update customers a)out each and eery ne"s of the
market or any ne"s "hich can hae any inf%uence on the share market So if someone is doing on%ine trading himse%f then a disaster can )e aerted #eop%e can get ne"s and updates on arious "e)sites and a%so on their on%ine trading system and most of the information "i%% )e free of cost
23
/" '%% the transactions and re%ated documents can )e seen on%ine and can a%so )e do"n%oaded to the
#= "ithout depending on any )roker Status of the amount can a%so )e checked on dai%y )asis through on%ine trading system D%'d&'nt'ge
1 ?ne may face a pro)%em of disconnection from internet and hence "i%% not )e a)%e to %ogin4in and do share trading < ?ne may a%so face pro)%em %ike e%ectricity cut4off and at that time one has to ca%% his )roker and p%ace the order for eecution ;ue to a%% of the a)oe adantages it is c%ear that the trading in India is spreading %ike fire and is sure%y going to increase in the future
+"/ OFFLINE S,ARE TRADING
In off%ine trading the transactions are done through the phone and "hen to )uy or se%% is directed through phone In other "ords trading "i%% )e done )y another person on one@s )eha%f )ased on the instructions gien )y one and then the other person can )e a )roker The )roker "i%% do )uying and se%%ing of shares on one@s )eha%f depending on the instructions gien )y one This type of trading "as done in the past )ut no"adays most of the trading is done through computers ie on%ine Dg Suppose that if +r K "ants to se%% n num)er of shares "hen the share price reaches Bs 100 then K "i%% te%% his )roker to se%% the share at Bs 100 -ie "hen the price of Bs 100 is reached. 7eerthe%ess "ith a%% the conenience of on%ine trading there are sti%% inestors "ho prefer the o%d fashion "ay of off%ine trading ?ff%ine trading has %ost some popu%arity )ut it is sti%% the main form of inesting O--l%ne t'd%ng o--e m'n) 9ene-%t ' well" +"1 Ad&'nt'ge
1 The one )enefit that an inestor appreciates the most is that they are not a%one "hen making inestment decisions
24
< There are eperienced and professiona% )rokerage companies that hand%e their inestments for them 3 Inestors are not faced "ith the cha%%enge of making these ita% inestment decisions especia%%y if they do not hae the eperience necessary to make the appropriate inestments '%so there is someone there to ans"er any uestions that may cause concerns 7ot to mention "ith off%ine trading mistakes are %ess %ike%y to take p%ace 7o one "ants to thro" their money a"ay or stand )y and "atch someone e%se thro" their money a"ay It may )e "ise to hire a professiona% to assist you in making the correct inestment decisions if you fee% you %ack the kno"%edge necessary The reason "hy on%ine trading has emerged is due to the emergence of IT ;oing transactions on%ine is a%"ays adantageous and easy p%us %ess time is taken )y doing transactions on%ine '%so fo%%o"ing are the d%'d&'nt'ge of doing transactions off%ine( 1 7ot the cheapest fees aai%a)%e < Lost some of its competitieness in attracting ne" customers "ith higher commission rates 3 Time consuming process S%o" process than on%ine trading ' de%ay of een a second can change the a%ue of a particu%ar stock great%y +"2 4?R4OSE OF STOCK MARKET
The )asic purpose of stock market is to proide capita% for inestment and for the inestor@s %iuidity 2or %arge companies to emerge and function effectie%y there is a need to poo% risk capita% "hich indiidua% entrepreneurs cannot )ring in on there o"n or "ith the he%p of re%aties friends and acuaintances The stock market is one of the most important sources for companies to raise money This a%%o"s )usinesses to raise additiona% capita% for epansion or for financia% needs )y se%%ing shares of the company Se%%ing of shares is %ike se%%ing of the o"nership of the company in pu)%ic market Share prices a%so affect the "ea%th of househo%ds and their consumption Thus centra% )anks keep an eye on the contro% of stock market and on the smooth operation of financia% systems functions The co%%ection and de%iery of shares is a%so ery important to e%iminate the risk to an indiidua% )uyer or se%%er The smooth functioning of a%% these actiities faci%itates economic gro"th and increased prosperity +"3 RELATION BETWEEN STOCK MARKET AND MODERN FINANCIAL S@STEM 25
There is a most remarka)%e transformation in the financia% systems in most countries ?ne such transformation is disintermediation The heightened interest of genera% pu)%ic in inesting in the stock market either through euities or through mutua% funds ' portion of the funds ino%ed in saing and financing f%o"s direct%y to financia% markets instead of )eing routed ia )anks@ deposit operations Becent trends hae sho"n that shares hae made up an increasing%y %arge proportion of househo%ds@ financia% assets In a%% dee%oped economic systems such as D the nited States apan and other nations the trend has )een same( saing has moed a"ay from traditiona% )ank deposits to more risky securities of one sort or another
+"6 4RESENT STATE OF STOCK MARKET
't present the stock market is not doing fine )ut that@s a natura% phenomenon to happen ie anything that goes up at one point of time it has to come do"n at some other point of time That is "hat is happening "ith the stock market ,ut here %ies a )ig opportunity for inestors Share prices for most of the stocks are at their 5< "eek do"n !ence it is an appropriate time to )uy any share -o)ious%y your pocket shou%d a%%o" that to happen. and forget a)out se%%ing them for at %east 1 year or according to your needs -"hen you "ant to eit. There are many reasons for this situation of the stock market such as rise in fue% prices inf%ation and recession cyc%e in the S' increasing fisca% deficit due to tons of su)sidies etc Stock market may f%uctuate as per positie or negatie ne"s po%itica% factors and many other factors Se%%ing on part of the 2IIs and )earish sentiment of the inestors hae kept the market in pressure as se%%ing has )een "itnessed from the %ast coup%e of "eeks 7ifty 50 had )roken the psycho%ogy %ee% of 800 and een 600 and it is %ike%y to )reak een <00 mark It is ery difficu%t to )e%iee that Indian stock market has gone )e%o" 1000 points after crossing <0000 points mark at one time 2rom %ast fe" months India stock market is on constant do"n fa%% and inestors hae suffered huge %osses accounting for )i%%ions of do%%ars +oreoer peop%e sti%% do not hae c%ear idea a)out "hether to inest in stock market in present condition or remain a"ay from it Some eperts hae een predicted that market can s%ide )e%o" 10000 points in "orst conditions )ecause stock market is reacting negatie%y to rise in inf%ation and increasing crude oi% prices Bight no" it@s a right time to )uy stocks 'nother thing is that if someone is ne" to the stock market then he/she shou%d not go for trading )etter to go for inestments ie go for %ong term inestment "hich "i%% a%"ays increase "ea%th
26
C,A4TER .
27
CONS?MER BE,A>IO?R
CONS?MER BE,A>IOR
It is the study of ho" "hen "hat and "hy peop%e )uy Its e%ements )%end "ith the e%ements of marketing and psycho%ogy It he%ps us to understand the )uyer decision making process )oth indiidua%%y and in groups It he%ps us to study the characteristics of indiidua% consumers %ike demographic psychographic and other )ehaiora% aria)%es in an attempt to understand peop%e@s needs and "ants The study of consumer )ehaior he%ps the firms and organiHations in improing their marketing strategies )y understanding arious issues such as( 1 !o" consumer thinks fee%s and se%ect )et"een different a%ternatiesG -eg )rands products. < !o" is consumer inf%uenced )y his or her enironmentG-eg cu%ture fami%y friends. 3 =onsumer kno"%edge or information processing a)i%ities !o" marketers can adapt and improe their marketing campaigns and strategies to reach the consumers more effectie%y
."! REASONS FOR ST?D@ING CONS?MER BE,A>IOR 28
=onsumer ana%ysis he%ps managers in many "ays %ike( 1 ;esigning the marketing mi < Segmenting the market p%ace according%y to consumer needs and "ants 3 #ositioning and differentiating products of their companies different%y to each consumer #roides kno"%edge a)out oera%% human )ehaior 5 #roides the recent trend in the market among the consumer preferences
."* FACTORS T,AT INF?LENCE CONS?MER BE,A>IOR
The factors that inf%uence consumer )ehaiour are diided into main%y t"o categories( 1 Interna% 2actors ( The interna% factors inc%ude the psycho%ogica% factors such as( a. 7eeds and moties ). #ersona%ity c. #erception d. Learning e. 'ttitudes f. Ino%ement < Dterna% 2actors( The eterna% factors inc%ude the factors from the enironment such as(
29
a. Socio4cu%tura% factors C Societa% a%ues economic factors media reference groups etc ). ;emographic =haracteristics C 'ge gender income educationa% %ee% occupation socia% c%ass ethnic group etc
30
C,A4TER /
COM4AN@ 4ROFILE 8
S,AREK,AN LTD"
31
/"! MISSION
To educate and empo"er the indiidua% inestor to make )etter inestment decisions through a. Mua%ity adice ). Innoatie products and c. Superior serice /"* ORIGIN
Sharekhan Ltd is one of the %eading retai% )rokerage of SS>I -SS >anti%a% Ish"ar%a% Securities Limited. group "hich is running successfu%%y since 1A<< in the country SS>I group has oer eight decades of eperience in the )usiness of stock )roking Sharekhan Ltd started off as a retai% arm of SS>I =itigroup :enture =apita% Internationa% ho%ds 95 per cent euity stake in Sharekhan "hi%e I;2= ho%ds another 10 per cent The remaining euity is "ith the management and emp%oyees of the )rokerage firm Sharekhan Ltd offers its customers a "ide range of euity re%ated serices %ike eecution on ,SD 7SD deriaties depository serices on%ine trading etc The firm@s on%ine trading and inestment site C """sharekhancom C "as %aunched on 2e) <000 >no"n for its $argon4free inestor friend%y %anguage and high ua%ity research the site has a registered )ase of oer 1 %akh customers ?ut of tota% on%ine trading in India Sharekhan Ltd a%one accounts for approimate%y 3< percent of the o%umes traded on%ine '%ong "ith sharekhancom "e)site Share>han has around 950 offices -share shops. in 190 cities around the country It started "ith 8< share shops in <00140< and has gro"n to more than 950 share shops and out%ets "ith the epected 800 out%ets ti%% the end of Septem)er <008 Fhi%e its siHe and strong )a%ance sheet a%%o" Sharekhan %td to proide the c%ients "ith aried products and serices at ery attractie prices it has oer 1000 =%ient Be%ationship +anagers "ho are dedicated to sering their a%ued customers/c%ients uniue needs Share khan has one of the )est state4of4art "e) porta% proiding fundamenta% and statistica% information across euity mutua% funds and I#?s Nou can surf across 5500 companies for
32
2ig 1 in4depth information detai%s a)out more than 1500 mutua% fund schemes and I#? data Nou can a%so access other market re%ated detai%s such as )oard meetings resu%t announcements 2II transactions )uying/se%%ing )y mutua% funds and much more Sharekhan is %ead )y a high%y regarded management team that has inested crores of rupees into a "or%d c%ass Infrastructure that proides its c%ients "ith rea%4time serice O </9 access to a%% information and products Their f%agship Sharekhan #rofessiona% 7et"ork offers rea%4time prices detai%ed data and ne"s inte%%igent ana%ytics and e%ectronic trading capa)i%ities right at customer@s finger4tips This po"erfu% techno%ogy comp%emented )y the kno"%edgea)%e and customer focused Be%ationship +anagers Sharekhan is creating a "or%d of Smart Inestor Sharekhan offers a fu%% range of financia% serices and products ranging from Duities to ;eriaties to enhance its customer@s "ea%th and hence achiee their financia% goa%s The on%ine trading porta% has stood out among its competitors )ecause of its steadfast dedication to offering customers the )est techno%ogy and superior information Sharekhan Ltd unei%ed an a%%4ne" "or%d c%ass on%ine inesting faci%ity from the conenience of one@s home or office one cou%d inest in the euity market "ith the he%p of adice of eperts on the markets /"+ 4ROD?CTS OFFERED B@ S,AREK,AN
1 ,?LT for off%ine trading < 7D'T for on%ine trading 33
3 #ortfo%io +anagement Serices -#+S. ?n%ine trade in commodities 5 +utua% fund adisory 6 Insurance /". REASONS TO C,OOSE S,AREK,AN LIMITED
1 Dperience( SS>I has more than eight decades of trust and credi)i%ity in the Indian stock market 'fter the %aunch of Sharekhan %td as its retai% )roking diision in 2e) <000 it has )een proiding institutiona%4%ee% research and )roking serices to indiidua% inestors < Techno%ogy( Fith the on%ine trading account one can )uy and se%% shares in an instant from any #= "ith an internet connection 3 'ccessi)i%ity(
Sharekhan proides adice education too%s and eecution serices for
inestors There are oer 950 share shops a%% oer the country and the "e)site gies ecess to a%% the consumers <K9 >no"%edge( The on%ine trading porta% of Sharekhan %td is rich in content and the research reports are 80 percent accurate It a%so contains usefu% set of kno"%edge4)ased too%s that empo"ers to take in decisions 5 =onenience( ?ne can do either on%ine trading or trading through ;ia%4n4trade -off%ine. 6 =ustomer serice( =ustomer serice team assists eery consumer for any kind he%p re%ated to transactions )i%%ing demat and other ueries 9 Inestment adice( Sharekhan has a dedicated research team for fundamenta% and technica% researches The ana%ysts constant%y track the pu%se of the market and proide time%y inestment adice to each consumer in the form of dai%y research tips and statements
34
C,A4TER 1
RESEARC, MET,ODOLOG@
35
61 Ree'c0 O9:ect%&e The 5%m') o9:ect%&e of the proposed study are( 1. Identify the specific factors that affect consumer attitudes to"ards share trading i. Identify the specific factors that affect consumer attitudes to"ards on%ine share trading ii. Identify the specific factors that affect consumer attitudes to"ards off%ine share trading <. =omparison )et"een on%ine and off%ine share trading methods Second') o9:ect%&e To %earn a)out the "orking of share market The methodo%ogica% approach to this study is descriptie )ecause "e attempt to identify and ep%ain aria)%es that eist in a gien situation and to descri)e the re%ationship that eists )et"een these aria)%es in order to proide a picture of a particu%ar phenomenon )ut not to ferret out cause4effect re%ationship The phenomena to )e studied consumer attitudes or )ehaiour is not ne" in the fie%d of research )ut is of utmost importance for the companies to strategise their future steps )y increasing the understanding of the current consumer )ehaiour pattern in this age of e%ectronic serices era The first source of secondary data needed for the study "as co%%ected from the data)ase of the customers of Sharekhan Ltd 'nd other sources for the secondary data are internet from "here "e got the data)ase of the peop%e "ho "ere interested in stock trading The primary data "as co%%ected through uestionnaire fi%%ing and )y conducting te%ephonic interie"s The uestionnaire "as administered to those peop%e "ho are doing stock trading and "ere se%ected in terms of their trading ha)its The uestionnaire is designed in structured form and most of the uestions "ere mu%tip%e choice uestions 'nd some open ended uestions "ere a%so inc%uded in the uestionnaire Bespondents "ere asked to comp%ete 5 to 9 point Likert sca%e in some uestions The data co%%ected "as ana%ysed to see if there are any demographic differences )et"een the users of on%ine and off%ine trading in an effort to inestigate the genera% )e%ief that the younger +ore educated and the more aff%uent the popu%ation are more %ike%y to adopt on%ine share trading '%so a%% the factors "ere tried to )e accommodated in the study "hich "ere epected to affect the adoption of on%ine trading The factors )eing cost of adoption security concerns conenience ease of use internet accessi)i%ity and speed trust in one@s )roker
36
' tota% of 11A respondents participated in this %imited surey out of "hich 10 respondents "ere of use The o)$ectie "as to gather a high%y representatie samp%e as the samp%e represents geographica%%y 7=B and the respondents "ere chosen in terms of their trading ha)its The statistica% too% for doing the ana%ysis on the primary data is S#SS 's it is kno"n statistics is a too% to make decisions ;ecisions can )e )ased on certain scientific modus operandi and their app%ications Statistics has a ery "ide scope ranging from co%%ection of data to c%assification and ana%ysis )y ery measures or app%ication of certain methods and there)y decisions
1"* MET,ODOLOG@ 1"*"! COLLECTION OF DATA
2or co%%ecting the primary data from the users a uestionnaire "as designed This uestionnaire "as administered to the indiidua%s "ho a%ready are inesting or trading in the stock market Samp%e uestionnaire is attached in anneure 1"*"*
SAM4LING MET,ODOLOG@
•
Samp%ing %ocations C ;e%hi 7=B
•
Samp%ing units C peop%e inesting in stock market
•
Samp%ing techniues C pro)a)i%ity samp%ing -conenient samp%ing.
•
Samp%e siHe C 100
•
+ode of surey C #ersona%iHed interie"s 4 Muestionnaire 4 Te%ephonic interie"
1"*"+
TIME FRAME
1"+ ;$et%onn'%e De%gn
37
In our surey ans"ers "ere of interest not intrinsica%%y )ut )ecause there eists a re%ationship to something "e "ere supposed to measure ?ur uestionnaire "as re%ia)%e and proided consistent resu%ts In compara)%e situations and a%id ans"ers correspond to "hat they are intended to measure It is a%"ays "hat they are intended to measure It "as a%"ays important to us to remem)er that the ans"ers are a%ua)%e to us to the etent that it can )e sho"n to hae a predicta)%e re%ationship to facts or su)$ectie states that are of interest There "ere t"o main o)$ecties in mind "hi%e designing the uestionnaire( •
To maimiHe the proportion of su)$ects ans"ering our uestionnaire C that is the response rate
•
To o)tain accurate re%eant information for our surey
1". De%gn%ng ' el%'9le %nt$ment
?ne step to"ard ensuring consistent measurement "as that each respondent in our samp%e "as asked the same set of uestions The uestionnaire consisted of a%% sorts of uestions inc%uding sca%ed uestions %ike %ikert sca%e semantic differentia% sca%e and rank order sca%e ?ur uestionnaire "as haing )oth open ended uestions and c%osed ended uestions inc%uding ;ichotomous uestions4in "hich the respondents "ere asked to ans"er &yes* or &no* +u%tip%e choices uestions 4in "hich the respondents hae seera% options to choose from ?pen ended uestions 4the respondents are asked to supp%y their o"n ie"s "ithout )eing constrained )y a fied set of possi)%e responses 's the pro$ect reo%es around the consumer attitudes to"ards share trading so it "as uiet important that the uestions shou%d focus on the parameters on "hich the consumers se%ects a stock )roker@s serice factors "hich are important to consumers for share trading %ike security internet speed and costs ease of use "hether they prefer on%ine trading or off%ine trading Today a customer can )e approached "ith many mediators %ike te%eision paper magaHines and promotiona% campaign@s %ike outdoor canopy@s ma%% interaction )rochure or pamph%ets distri)ution road side hoardings ,ut a%% the strategies depend on "hat the consumer thinks and "hat are the needs and "ants of the consumer in this techno%ogica% "or%d Important 4 non4important items are ery prea%ent in our surey research fie%d and therefore desere specia% attention ?ne can see that the task that respondents are gien in such items is different from that of p%acing themse%es in an ordered category The usua% approach is to read a statement to respondents and ask them if it is important or not according to them 38
These responses "i%% gie a good perspectie ie" that after so much techno%ogica% adancement and aai%a)i%ity of ne" techno%ogy in the market "hat do the inestors of share market think a)out arious stock )roker companies and "hat do they think "hen do share trading and "here does a %oopho%e eists 't %ast the respondents are )een asked a)out their persona% detai%s %ike age and se so as to see the effect of these attri)utes on the consumer )ehaiour !o" do consumers )ehae in a certain enironment around himG Fhat affects their decisions mostG ;o fami%y friends co%%eagues p%ay any ro%e in the decision making of the consumerG 1"."! 4%lot $&e)
?nce the uestionnaire "as dee%oped a sma%% pi%ot surey "as )eing taken in to consideration so as to remoe the un"anted uestions and add those uestions that "ere ear%ier forgotten The pi%ot surey "as )eing done "ith a samp%e siHe of 10 This rea%%y he%ped me to make my uestionnaire more effectie and "i%% definite%y moe my research resu%t to"ards accuracy
1"."* S$&e) 4l'ce
Since "e sureyed on%y those peop%e "ho are inesting in the stock market so "e had contacted the respondents oer the phone and The rest "ere fi%%ed )y the inestors "ho are coming to the =onnaught p%ace share trading shops and )ranches
1"/ SAM4LING AND SAM4LE SIE 1"/"! S'm5l%ng
The samp%ing process consisted of 5 stages( 1. ;efinition of popu%ation of concern <. Specification of a samp%ing method 3. ;etermine the samp%e siHe . Imp%ementing the samp%ing p%an
39
5. Samp%ing and data co%%ecting 1"/"* S'm5l%ng Met0od
The method "hich is se%ected for the research is conenient samp%ing a%% e%ements of the frame are treated eua%%y and it is not su)diided or partitioned 2urthermore each possi)%e samp%e of a gien siHe -n. has a kno"n and eua% pro)a)i%ity Since there are each and eery type of peop%e coming to =onnaught p%ace from eery corner of ;e%hi 7=B so there "as an eua% chance of any person to )e asked and sureyed This imp%ies that eery e%ement is se%ected independent%y of eery other e%ement The samp%es "ere dra"n )y a random procedure from a samp%ing frame Fe can een say that this method is eua% to a %ottery system in "hich names are p%aced in a container the container is shaken and the names of the "inner are then dra"n out in an un)iased manner In the same "ay our samp%e a%so consists of getting se%ected on an eua% chance from the popu%ation The t"o )enefits of doing our research pro$ect is that it is •
Dasi%y understood
•
Besu%ts pro$ecta)%e
1"/"+ 4o5$l't%on
' popu%ation is the aggregate of a%% the e%ements that share a common set of characteristics and that compromise the unierse for the purposes of the marketing research pro)%em Information a)out popu%ation parameters may )e o)tained )y taking a consensus or a samp%e Typica%%y "e seek to take action on the popu%ation "hich inests in share market and do trading in shares mutua% funds and commodities So according to our Industry guide +r 7itin :ats in the Fho%e ;e%hi 7=B there are approimate%y 5 and ha%f %akh traders and inestors Since our popu%ation cannot )e )rought under one c%uster and strata thus "e "ere not confined to $ust one area '%so our popu%ation "as scattered a%% around the 7=B so "e tried to take the attri)utes and features of the "ho%e popu%ation )y interie"ing the inestors "ho are coming in to the =onnaught p%ace and ,arakham)a )ranches Fe een made ca%%s to many traders )y ca%%ing random%y and asking them if they are "i%%ing to )e a part of our surey Thus "e conducted te%ephonic interie"s a%so S'm5le
40
' samp%e is a su)group of the popu%ation se%ected for participation in the study Samp%e characteristics ca%%ed statistics are then used to make inferences a)out the popu%ation parameters The inferences that %ink the samp%e characteristics and popu%ation parameters are estimation procedures and tests of hypothesis 1"/". S'm5le S%
Samp%e siHe refers to the num)er of e%ements or su)$ects inc%uded in the study "ithout any )iasness 1"/"/ S'm5le %
Fhere( H P H a%ue -1A6 for A5J confidence %ee%. p P percentage picking a choice epressed as decima% -6 used for samp%e siHe needed. c P confidence intera% epressed as decima% -eg 1 P Q10. -1A6. < # -06. # -1 4 06.
n P
-01.< P
A<
41
42
De&'i(ti)e St"ti&ti'& 'ean
(td. )e&iation
*nalysis +
'issing +
3.11
1.563
100
0
mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%adoption of new technology
3.46
1.167
100
0
mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%costs
3.42
1.037
100
0
mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%trst in "roker
3.85
.936
100
0
mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%secrity
4.09
1.181
100
0
mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%con&enience
3.78
1.069
100
0
mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%ease of se
3.75
1.158
100
0
mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%accessi"ility
Ta)%e 91
Inte5et't%on 43
!" In this descriptie statistics matri it can )e seen that mean of the accessi)i%ity is around 3
So ma$ority of respondents are opting for ?> option That is "ithout it a%so there is no pro)%em 'nd it has maimum of Std ;eiation "hich suggests that users are either not preferring or preferring it high%y *" +ean for adoption of ne" techno%ogy and &costs* is )et"een 3 and 35 The Std ;eiation is around 1 So peop%e treat it as an important parameter +" Trust in )roker and security are rated ery high ie around So ma$ority of peop%e are rating them as preferred parameters '%so here Std ;eiation is %o"est ." =onenience and ease of use is a%so rated high ie around 395 -mean. So these are a%so important factor ,ut ;eiation is around 1 So "e can say that respondents are moing to"ards most preferred
2"* Coel't%on M't%#('H
This output sho"s an a)ridged ersion of the B4matri The top ha%f of this ta)%e contains the #earson corre%ation coefficient )et"een a%% pairs of uestions "hereas the )ottom ha%f
44
contains the one4tai%ed significance of these coefficients Fe can use this corre%ation matri to check the pattern of re%ationships 2irst%y %ooking at the significance and a%ues for any aria)%e for "hich the ma$ority of a%ues are greater than 005 and then scanning the corre%ation coefficients themse%es -%ooking for any greater than 0A. it "as found that there are not many aria)%es "ithin the specified range So the data is not singu%ar and no need to e%iminate aria)%e 2or this data its a%ue is 01<5 "hich is greater than the necessary a%ue of 000001 Therefore mu%ti4co %inearity is not a pro)%em for these data To sum up a%% uestions in the S'M corre%ate fair%y "e%% and none of the corre%ation coefficients are particu%ar%y %arge therefore there is no need to consider e%iminating of any uestions at this stage
Correlatio
X1
X2
X3
X4
X5
X6
X7
1000
6<5
40<3
0AA
516
9A
6<5
1000
056
4095
050
06
00
056
1000
15A
0<9
18
0<1
40<3
4095
15A
1000
89
098
01<
0AA
050
0<9
89
1000
406
4050
516
06
18
098
406
1000
6A8
9A
00
0<1
01<
4050
6A8
1000
n X1 X2 X3 X4 X5 X6 X7 a ;eterminant P 1<5
Ta)%e 9<
w0ee ! mark the fo%%o"ing parameters according to your preferences for on%ine share trading -1 )eing
%east preferred 5 )eing most preferred. 4 'cce%9%l%t) * mark the fo%%o"ing parameters according to your preferences for on%ine share trading -1 )eing
%east preferred 5 )eing most preferred. 4 'do5t%on o- new tec0nolog) + 8 mark the fo%%o"ing parameters according to your preferences for on%ine share trading -1 )eing
%east preferred 5 )eing most preferred. 4 cot . 8 mark the fo%%o"ing parameters according to your preferences for on%ine share trading -1 )eing
%east preferred 5 )eing most preferred. 4 t$t %n 9oke / 8 mark the fo%%o"ing parameters according to your preferences for on%ine share trading -1 )eing
%east preferred 5 )eing most preferred. 4 ec$%t) 45
1 8 mark the fo%%o"ing parameters according to your preferences for on%ine share trading -1 )eing
%east preferred 5 )eing most preferred. 4 con&en%ence 2 8 mark the fo%%o"ing parameters according to your preferences for on%ine share trading -1 )eing
%east preferred 5 )eing most preferred. 4 e'e o- $e
F%nd%ng There is a strong corre%ation )et"een adoption of ne" techno%ogy and accessi)i%ity -6<5. ease of use and conenience -6A8. conenience and accessi)i%ity -516.
*MO "$d B"t#ett+& Te&t"
,aiser%'eyer%-lkin 'easre of (ampling *deacy. artletts 3est of (phericity
*ppro/. hi%(are df
.620 199.405 21
(ig.
.000
a. ased on correlations Ta)%e 93
2"+ KAISERME@EROLKIN MEAS?RE of samp%ing adeuacy and BARTLETTJS TEST of
sphericity( The >+? statistic aries )et"een 0 and 1 ' a%ue of 0 indicates that the sum of partia% corre%ations is %arge re%atie to the sum of corre%ations indicating diffusion in the pattern of corre%ations -hence factor ana%ysis is %ike%y to )e inappropriate. ' a%ue c%ose to 1 indicates that patterns of corre%ations are re%atie%y compact and so factor ana%ysis shou%d yie%d distinct and re%ia)%e factors >aiser -1A9. 46
recommends accepting a%ues greater than 05 as accepta)%e -a%ues )e%o" this shou%d %ead you to either co%%ect more data or rethink "hich aria)%es to inc%ude.So factor ana%ysis is appropriate for these data ,art%ettEs measure tests the nu%% hypothesis that the origina% corre%ation matri is an identity matri 2or factor ana%ysis to "ork "e need some re%ationships )et"een aria)%es and if the B4matri "ere an identity matri then a%% corre%ation coefficients "ou%d )e Hero Therefore "e "ant this test to )e significant -ie hae a significance a%ue %ess than 005. ' significant test te%%s us that the B4matri is not an identity matri therefore there are some re%ationships )et"een the aria)%es "e hope to inc%ude in the ana%ysis 2or these data ,art%ettEs test is high%y significant -p R 0001. and therefore factor ana%ysis is appropriate
2". Tot'l >'%'nce =ompone nt
1
Initia% Digen a%ues J of :arianc =umu%atie Tota% e J
Dtraction Sums of Suared Loadings J of :arianc =umu%atie Tota% e J
Botation Sums of Suared Loadings J of :arianc =umu%ati Tota% e e J
<610
39<81
39<81
<610
39<81
39<81
<5AA
391<6
391<6
<
15<9
<1808
5A08A
15<9
<1808
5A08A
1539
<1A6<
5A08A
3
AA9
1<6
93335
8
1<051
85386
5
3
63<3
A190A
6
<5 06
A5A5 100000
9
Dtraction +ethod( #rincipa% =omponent 'na%ysis
Ta)%e 9 This matri %ists the Digen a%ues associated "ith each %inear component -factor. )efore etraction after etraction and after rotation ,efore etraction S#SS has identified 9 %inear components "ithin the data set -"e kno" that there shou%d )e as many eigenectors as there are aria)%es and so there "i%% )e as many factors as aria)%es. The Digen a%ues associated "ith each factor represent the ariance ep%ained )y that particu%ar %inear component and S#SS a%so disp%ays the Digen a%ue in terms of the percentage of ariance ep%ained -so factor 1 ep%ains 39<81J of tota% ariance. It 47
shou%d )e c%ear that the first fe" factors ep%ain re%atie%y %arge amounts of ariance -especia%%y factor 1. "hereas su)seuent factors ep%ain on%y sma%% amounts of ariance S#SS then etracts a%% factors "ith Digen a%ues greater than 1 "hich %eaes us "ith t"o factors The Digen a%ues associated "ith these factors are again disp%ayed -and the percentage of ariance ep%ained. in the co%umns %a)e%%ed Dtraction Sums of Suared Loadings The a%ues in this part of the ta)%e are the same as the a%ues )efore etraction ecept that the a%ues for the discarded factors are ignored -hence the ta)%e is )%ank after the second factor. In the fina% part of the ta)%e -%a)e%%ed Rotation Sums of Squared Loadings), the Eigen values of the factors after rotation are disp%ayed Botation has the effect of optimiHing the factor structure and one conseuence for these data is that the re%atie importance of the t"o factors is eua%iHed ,efore rotation factor 1 accounted for considera)%y more ariance than the remaining one
2"/ Comm$n'l%t%e Comm$n'l%t%e
Initia%
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4 accessi)i%ity
Dtraction
1000
900
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4 adoption of ne" techno%ogy
1000
59
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4 costs
1000
165
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4 trust in )roker
1000
931
48
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4 security
1000
68<
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4 conenience
1000
696
1000
639
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4 ease of use Dtraction +ethod( #rincipa% =omponent 'na%ysis
Ta)%e 95
This sho"s the ta)%e of communa%ities )efore and after etraction #rincipa% component ana%ysis "orks on the initia% assumption that a%% ariance is common therefore )efore etraction the communa%ities are a%% 1 The communa%ities in the co%umn %a)e%ed Extraction reflect the common variance in the data structure. So, for example, we can say that 90J of the ariance associated "ith parameter 1 is common or shared ariance 'nother "ay to %ook at these communa%ities is in terms of the proportion of ariance ep%ained )y the under%ying factors 'fter etraction some of the factors are discarded and so some information is %ost The amount of ariance in each aria)%e that can )e ep%ained )y the retained factors is represented )y the communa%ities after etraction
49
2"1 Com5onent M't%#('H
=omponent 1
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4accessi)i%ity
<
835
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4conenience 8<1
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4ease of use 98A
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4adoption of ne" techno%ogy
936
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4trust in )roker
50
85
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4security
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4costs Dtraction +ethod( #rincipa% =omponent 'na%ysis a < components etracted
8<5
30
Ta)%e 96
This output a%so sho"s the component matri )efore rotation This matri contains the %oadings of each aria)%e onto each factor ,y defau%t S#SS disp%ays a%% %oadings ho"eer "e reuested that a%% %oadings %ess than 03 )e suppressed in the output and so there are )%ank spaces for many of the %oadings This matri is not particu%ar%y important for interpretation 't this stage S#SS has etracted t"o factors ?ne important decision is the num)er of factors to etract Fe can a%so use the scree p%ot "hich "e asked S#SS to produce The scree p%ot is sho"n )e%o" "ith a thunder)o%t indicating the point of inf%eion on the cure This cure is difficu%t to interpret )ecause the cure )egins to tai% off after three factors )ut there is another drop after four factors )efore a sta)%e p%ateau is reached Therefore "e cou%d pro)a)%y $ustify retaining either t"o or four factors ien the %arge samp%e it is pro)a)%y safe to assume >aiserEs criterion ho"eer you cou%d rerun the ana%ysis specifying that S#SS etract on%y t"o factors and compare the resu%ts
2"2 Scee 4lot 5
e u # " ) $ e % i E
4
3
2
1
0 1
2
3
4
5
Com(o$e$t Numbe
2ig 9 1 51
6
7
2"3 Rot'ted Com5onent M't%#('H
=omponent 1
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4accessi)i%ity
<
8<5
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4conenience 8<1
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4ease of use 9A9
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4adoption of ne" techno%ogy
90
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4trust in )roker
85
8<
3
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4security
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4costs Dtraction +ethod( #rincipa% =omponent 'na%ysis
52
Ta)%e 99
Botation +ethod( :arima "ith >aiser 7orma%iHation a Botation conerged in 3 iterations
This output sho"s the rotated component matri -a%so ca%%ed the rotated factor matri in factor ana%ysis. "hich is a matri of the factor %oadings for each aria)%e onto each factor This matri contains the same information as the component matri in S#SS preious output ecept that it is ca%cu%ated after rotation There are seera% things to consider a)out the format of this matri 2irst factor %oadings %ess than 03 hae not )een disp%ayed )ecause "e asked for these %oadings to )e suppressed Second the aria)%es are %isted in the order of siHe of their factor %oadings )ecause "e asked for the output to )e Sorted )y siHe 2ina%%y for a%% other parts of the output I suppressed the aria)%e %a)e%s -for reasons of space. )ut for this matri I hae a%%o"ed the aria)%e %a)e%s to )e printed to aid interpretation =ompare this matri "ith the unrotated so%ution ,efore rotation most aria)%es %oaded high%y onto the first factor and the remaining factors didnEt rea%%y get a %ook in !o"eer the rotation of the factor structure has c%arified things considera)%y( there are t"o factors and aria)%es %oad ery high%y onto on%y one factor The suppression of %oadings %ess than 03 and ordering aria)%es )y %oading siHe a%so makes interpretation considera)%y easier Inte5et't%on The parameters that %oad high%y on factor 1 seem to a%% re%ate to the common factor that@s )een
named as &Be%ia)i%ity* 'nd the parameters that %oad high%y on factor < seem to a%% re%ate to the common factor that@s )een named as &Dase of transactions*
53
2ig 81 Inte5et't%on
's it can )e seen that 9J of the samp%e are ma%es "hi%e on%y <6J "ere fema%es indicating that the attitude of fema%es to"ards share trading is not positie and they prefer stay a"ay from the stock market The reason may )e fema%es don@t "ant to take much of risk and prefer to inest in traditiona% "ay ie )ank deposits
F%g" 3"*
F%g" 3"+
54
Inte5et't%on 4
's it can )e seen that 8J of the traders do on%ine trading and <9J do )oth on%ine and off%ine trading So it can )e said that the trend is to"ards on%ine trading and on%ine traders are in the age group of 1840 "ho do on%ine trading ie approimate%y 69J of the respondents The attitude of traders is ery much up)eat to"ards on%ine share trading Noung generation prefers doing on%ine transactions and hence this mode of trading shou%d )e promoted more
2ig 8 Inte5et't%on
's "e can see that 5
w0't % )o$ gende 0ow do )o$ $t%l%
what is yor
male
eties and ' 43
"ank deposits 19
real estate 7 55
otal l/ry items like gold 5
74
gender otal
female
4
14
0
8
26
47
33
7
13
100
Inte5et't%on C !ere it is ery c%ear that men are more into euities and mutua% funds than )ank
deposits )ecause they can use their money more effectie%y than $ust keeping it into )ank deposits Fomen %ike to deposits their money into )anks and are more fond of %uurious items Bea% estate option is ery %ess in )oth cases as it reuires a huge amount of inestment in initia% stages
w0't % )o$ gende m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedH 'cce%9%l%t)
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4accessi)i%ity
"hat is your
ma%e
not %east preferred preferred <5 1<
most ok preferred preferred 9 1< 18 56
Tota%
9
genderG Tota%
fema%e
1 <6
0 1<
6 13
11 <3
8 <6
<6 100
Inte5et't%on C 'ccessi)i%ity is not so important factor according to graph for either of them )ut
fe" ma%es "ant to hae a %itt%e of accessi)i%ity
w0't % )o$ gende m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedH 'do5t%on o- new tec0nolog)
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4adoption of ne" techno%ogy not preferred "hat is your genderG
%east preferred
Tota%
most preferred preferred
ok
ma%e
fema%e
3
16
<5
15
15
9
<
1
3
1<
8
<6
57
Tota%
5
19
<8
<9
<3
100
Inte5et't%on C according to the surey it can )e said that adoption of ne" techno%ogy is an
important factor for a%% as it is re%ated "ith the trust and ease of use w0't % )o$ gende m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedH cot
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4cost not preferred "hat is your genderG Tota%
%east preferred
Tota%
most preferred preferred
ok
ma%e
fema%e
1
6
30
<5
1<
9
3
8 1
3 33
A 3
3 15
<6 100
58
Inte5et't%on C cost is factor for on%ine share trading "hich most of the men keep in their mind )ut
they don@t gie it much consideration as a%% of them kno" that for on%ine transactions costs are re%atie%y %o"er than off%ine trading w0't % )o$ gende m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedH t$t %n 9oke
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4trust in )roker %east preferred "hat is your genderG Tota%
Tota%
most preferred preferred
ok
ma%e
fema%e
5
18
33
18
9
A
9 <5
5 38
10 <8
<6 100
59
Inte5et't%on C rust in )roker is an important factor as approimate%y 90J peop%e think that for
on%ine trading trust is ery important w0't % )o$ gende m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedH ec$%t)
mark the fo%%o"ing parameters according to your preferences for on%ine share trading-1 )eing %east preferred 5 )eing most preferred.4security not preferred "hat is your genderG Tota%
%east preferred
Tota%
most preferred preferred
ok
ma%e
fema%e
8
<
<<
38
9
0 8
0 <
9 11
A 31
10 8
<6 100
60
Inte5et't%on C security is the most important factor for a%% as on%ine trading doesn@t reuires any
sort of checking and thus one easi%y use others money if there is any sort of security %apse 80J hae said that security is important factor for them w0't % )o$ gende m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng (! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedH con&en%ence mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%con&enience least preferred what is yor gender otal
male female
ok
preferred
otal
most preferred
11
28
22
13
74
3
0
2
21
26
14
28
24
34
100
61
Inte5et't%on C hence it is ery much c%ear that conenience and ease of use is the most preferred
factor for the fema%es as more than A0J hae agreed on it
w0't % )o$ gende 'nk t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o )o$ 9oke com5'n) -om ! to 1 e'e o- $e rank the following parameters according to yor preferences for yor "roker company from 1 to 6%ease of se most important what is yor gender otal
male female
important
moderate
cannot say
less important
otal
least important
19
7
13
7
22
6
74
12
8
2
2
2
0
26
31
15
15
9
24
6
100
62
Inte5et't%on C thus "hi%e se%ecting any stock )roking company ease of use is ery important
factor as they "ant to do share trading in an easy manner
w0't % )o$ gende 'nk t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o )o$ 9oke com5'n) -om ! to 1 50one t'd%ng rank the following parameters according to yor preferences for yor "roker company from 1 to 6%phone trading most important what is yor gender otal
male female
cannot say
less important
otal
least important
important
moderate
6
8
9
5
5
41
74
4
3
2
6
4
7
26
10
11
11
11
9
48
100
63
Inte5et't%on C in the age of ne" techno%ogy and fast "or%d no one "ants to go for off%ine trading
They "ant to go for on%ine trading and hence companies shou%d make on%ine trading easy and effectie !ence phone trading is a%most getting erased )ut sti%% )ase cannot )e forgotten and there are peop%e "ho at times go for off%ine trading
w0't % )o$ gende 'nk t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o )o$ 9oke com5'n) -om ! to 1 ec$%t) rank the following parameters according to yor preferences for yor "roker company from 1 to 6%secrity most important what is yor gender otal
male female
cannot say
less important
otal
least important
important
moderate
25
15
11
13
7
3
74
6
5
10
2
1
2
26
31
20
21
15
8
5
100
64
Inte5et't%on C security is the most important factor "hi%e se%ecting any stock )roking company
They shou%d hae the transactions as secure as possi)%e and thus they shou%d gie it due importance
w0't % )o$ gende %n c'e o- &ol't%l%t) %n t0e tock m'ket % wo$ld
in case of &olatility in the stock market i wold if my in&estments immediately if after a year ha&e declined sell any there is a in &ale after a in&estment that decline in the year# i will looses money &ale#i will pll di&ert it on daily or ot my towards other not in&est weekly "asis in&estments a&enes frther what is yor gender otal
male female
otal
14
12
30
18
74
6
8
6
6
26
20
20
36
24
100
65
Inte5et't%on C eeryone "ants to increase their "ea%th and hence in o%ati%ity period men most%y prefer to diert it to other aenues and hence they are more risk takers )ut "omen prefer to pu%% out their inestments and "on@t inest further hence they are %ess risk takers
66
w0't % )o$ 'ge w0%c0 tock 9okeJ e&%ce do )o$ '&'%l
which stock "rokers ser&ice do yo a&ail
otal
reliance money 1
icici direct 2
religare 7
india" lls 2
india infoline 4
sharekhan ltd 12
others 3
31
2
6
4
5
5
11
3
36
what is or
18%30 30%40
age
40%50
0
3
1
5
0
3
3
15
50 and a"o&e
2
3
6
0
0
5
2
18
5
14
18
12
9
31
11
100
otal
Inte5et't%on C Sharekhan has )ecome the more preferred )rand no" as compared to ear%ier days Be%igare and I=I=I ;irect are the c%osed competitors +ost young age and midd%e age peop%e prefer to use Sharekhan serices more than others )ecause of conenience and easy to use serices '%so Sharekhan has more customers "hich do on%ine trading than off%ine trading Thus it can )e said that Sharekhan has )ecome a )rand and it shou%d focus on increasing its market share )y giing more effectie serices w0't % )o$ 'ge 0ow do )o$ %n&et %n tock m'ket how do yo in&est in stock market 67
otal
what is yor age
1
6
portfolio management 1
14
8
11
3
36
40%50
4
2
8
1
15
50 and a"o&e
7
2
2
7
18
48
13
27
12
100
online 23
18%30 30%40
otal
offline
"oth
31
Inte5et't%on C "ith the adancement of techno%ogy young age and midd%e age are more inc%ined
to"ards on%ine share trading They "ant to do it the hass%e free "ay as they don@t "ant to "aste their money )y using o%d and s%o" "ays of off%ine trading ?%d age peop%e a%so prefer on%ine trading )ut they a%so go for #+S as they are more eperienced and they kno" the market ery "e%% and don@t "ant to take any chances "ith their money w0't % )o$ 'ge 0ow do )o$ $t%l%
what is yor
18%30 30%40
eties and ' 14 16
"ank deposits 13 12
real estate 0 3 68
otal l/ry items like gold 4 5
31 36
age
40%50
8
4
2
1
15
50 and a"o&e
9
4
2
3
18
47
33
7
13
100
otal
Inte5et't%on C 's eeryone "ants to increase their money as fast as possi)%e and euities and
mutua% funds are )est methods aai%a)%e if one p%ays safe "ith them 7o dou)t they are risky )ut they hae the capa)i%ity to increase the money inested in ery short span of time '%so peop%e prefer to put some part of their money into )ank deposits for emergencies and day4to4day needs Inestment in rea% estate is not preferred much as it reuires a good amount of initia% inestment "hich is not possi)%e for eeryone w0't % )o$ 'ge w0't o9:ect%&e do )o$ kee5 %n m%nd 9e-oe %n&et%ng "hat o)$ecties do you keep in mind )efore inestingG Tota% protection portfo%io retirement or diersificati "ea%th p%anning emergency on accrua% "hat 18430 0 1 3 1 31 is 3040 < 15 A 10 36 your 0450 1 5 6 3 15 69
ageG
50 and a)oe
Tota%
3
<
A
18
6
36
<<
36
100
Inte5et't%on C the )asic o)$ecties "hich peop%e do in keep mind "hi%e inesting are protection or emergency and "ea%th accrua% 's it is perceied that young generation doesn@t think much a)out future )ut it turned out to )e fa%se They are ery keen for the protection or emergency needs and hence they do keep this in mind "hi%e inesting and keep some part of their earnings for this ,ut they are a%so ery much keen to increase their "ea%th +idd%e age peop%e most%y keep in mind the protection or emergencies needs "hi%e o%d age peop%e go for "ea%th accrua% more than protection or emergency w0't % )o$ 'ge w0't wee t0e o$ce -om w0ee )o$ got t0e %n-om't%on '9o$t t0e tock 9oke to %n&et %n t0e tock m'ket what were the sorces from where yo got the information a"ot the stock "roker to in&est in the stock market "siness magaines and news friends or internet and t& and radio papers colleages we"sites what is yor age
otal
18%30
30%40
3
11
12
5
31
8
9
13
6
36
70
40%50
4
3
7
1
15
50 and a"o&e
5
7
4
2
18
20
30
36
14
100
otal
Inte5et't%on C 2riends and co%%eagues are the most sought after sources for the information a)out arious stock )roker companies in a%% the age group Thus "ord of mouth pu)%icity is a great too% to make a )rand and it is the fastest n cheapest source of adertising ,usiness magaHines and ne"spaper are a%so not far )ehind as a source as they a%so gie us a %ot information a)out arious stock )roker companies and a)out the stock market situation w0't % )o$ 'ge 5le'e 'te )o$ '55et%te o- %k t'k%ng on ' c'le o- ! to / (mo&%ng 0o%
8
moderate 7
9
8
11
6
2
36
40%50
0
5
7
1
2
15
50 and a"o&e
6
4
5
3
0
18
18
25
30
18
9
100
what is yor
18%30 30%40
age otal
&ery low risk 3
low risk
71
high
otal
8
&ery high 5
31
Inte5et't%on C 's perceied young generations are ery high risk takers They "ant to earn money
ery fast +idd%e aged peop%e are moderate risk takers as they are at an age "here they hae to keep many things in their mind and hence they don@t take much risk ?%d age peop%e are %o" risk takers as they don@t "ant to %ose their money and a%so they "ant to accrue their "ea%th instead of %osing it w0't % )o$ net %ncome 5le'e 'te )o$ '55et%te o- %k t'k%ng on ' c'le o- ! to / (mo&%ng 0o%
&ery low 6
low risk 2
moderate 0
1
0
what is yor net
nder 1.5 lakhs 1.5 to 3 lakhs
income
3 to 5 lakhs
2
5 to 10 lakhs 10 lakhs and a"o&e otal
otal
&ery high
high 3
2
13
3
3
1
8
9
19
5
0
35
7
12
6
5
5
35
2
2
2
2
1
9
18
25
30
18
9
100
72
Inte5et't%on C Income is a ery important for risk taking 's perceied it is genera% consumer )ehaiour that %o" income %ee% peop%e are ery %o" risk takers Fith income %ee% a)oe 3 %akh the risk taking capa)i%ity increases as they "ant to earn money as fast as possi)%e Bisk taking capa)i%ity is %ess in income %ee% from 5 to 10 %akh as they are more inc%ined to"ards portfo%io diersification instead of $ust inesting in euities w0't % )o$ net %ncome w0't o9:ect%&e do )o$ kee5 %n m%nd 9e-oe %n&et%ng
what o"ecti&es do yo keep in mind "efore in&esting
what is yor net income
otal
nder 1.5 lakhs 1.5 to 3 lakhs 3 to 5 lakhs 5 to 10 lakhs 10 lakhs and a"o&e
otal
retirement planning 0
protection or emergency 10
protfolio di&ersification 1
wealth accral 2
13
0
4
0
4
8
2
11
10
12
35
3
8
10
14
35
1
3
1
4
9
6
36
22
36
100
73
Inte5et't%on C inestments and income %ee% are direct%y re%ated Lo" income %ee% peop%e keep in mind for protection for their fami%y or any emergency needs +idd%e income %ee% peop%e are more etroerts in this regard They keep eerything in their mind They keep portfo%io diersification "ea%th accrua% and protection or emergency needs in their minds as o)$ecties "hi%e inesting pper %ee% income peop%e keep "ea%th accrua% as their main o)$ectie "hi%e inesting as they "ant to earn more money w0't % )o$ 'ge do 5omot%on'l c0eme '--ect )o$ 0'e t'd%ng do promotional schemes affect yor share trading what is
otal
yes
no
18%30
20
11
31
yor
30%40
23
13
36
age
40%50
11
4
15
50 and a"o&e
11
7
18
65
35
100
otal
74
Inte5et't%on C #romotiona% schemes do hae an effect on consumer attitudes to"ards share
trading If the promotiona% schemes are ery attractie then they are )ound to attract the eisting customers and a%so the ne" customers are a%so "i%%ing to test the arious serices So companies shou%d come up "ith ne" and attractie promotiona% schemes regu%ar%y so that they can increase their customer )ase ,ow do )o$ %n&et %n tock m'ket m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedH 'cce%9%l%t) mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%accessi"ility not preferred 12
least preferred 8
3
otal
1
preferred 9
most preferred 18
48
1
2
2
5
13
ok
how do yo in&est
-nline -ffline
in
oth
6
2
10
7
2
27
stock market
portfolio management
5
1
0
5
1
12
26
12
13
23
26
100
otal
75
1 5 1 0 5 0o n l! in o e f l in e " o t h p o r t f o l io m a n a g e m e n t o , d o u i$ ) e & ti$ & to ' . m " . e t Inte5et't%on 4 It can )e seen that peop%e "ho do off%ine trading thinks that accessi)i%ity is the most
preferred parameter and this trend is fo%%o"ed )y on%ine traders a%so The reason for the same can )e that peop%e "ants internet aai%a)i%ity ie they can access "e) site anytime !ence speed of the serer shou%d )e good and a%"ays there shou%d )e %oad )a%ancing so that "e) site can )e accessed anytime It is o)ious that off%ine traders "ant share shops to )e near their %oca%ity for easy accessi)i%ity The users "ho hae opted for )oth the options prefer share shops or other medium through "hich they can access the information a)out their trading 'nd %ast are the !7I4 portfo%io management serice c%ients The response is mied one 50J "ants accessi)i%ity and 50J don@t need that +ay )e they can access it through on%ine termina%s at the time "hen they are a)%e to access the "e) site '%so a c%ient going for the #+S don@t need to stick to the termina% neither they "ant to ca%% or go to the share shops eery time -the reason )eing %ock in period is 6 months for this inestment. ,ut those peop%e "ho hae rated accessi)i%ity to"ards high%y prefera)%e parameter are the ones "ho "ant to kno" a)out their portfo%io during the %ock in period -reason )eing any o%ati%ity in the market or aniety or any other factor.
76
So in a%% consumer attitudes to"ards accessi)i%ity is much more up)eat They prefer accessi)i%ity Beason "i%% )e computer a"areness and peop%e sti%% don@t trust techno%ogy fu%%y So "ou%d rather go themse%es
,ow do )o$ %n&et %n tock m'ket m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedH 'do5t%on o- new tec0nolog) mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%adoption of new technology
not preferred 0
least preferred 13
1
otal
10
preferred 13
most preferred 12
48
0
5
4
3
13
ok
how do yo in&est
online offline
in
"oth
3
2
9
6
7
27
stock market
portfolio management
1
2
4
4
1
12
5
17
28
27
23
100
otal
77
.1 5 0 .7 0 .5 5 .2 0 .0 5 .o n l! in o e f l in e " o t h p o r t f o l io m a n a g e m e n t o , d o o u i$ ) e & ti$ & to ' . m " . e t Inte5et't%on !ere adoption of ne" techno%ogy is ery much preferred )y the users "ho are
on%ine and those "ho are using )oth mediums The reason can )e emergence of ne" more adapta)%e and more secured techno%ogies in the market #eop%e "ant secured transactions and if o%der techno%ogy is giing them enough security then they "i%% not mind adoption of ne" techno%ogy !ere one more stark%ing o)seration is that not een a sing%e user has chosen &%east preferred option* Those "ho use )oth options out of them around 33J peop%e don@t care either is fine 2or #ortfo%io management serice peop%e don@t "ant to adopt ne" techno%ogy So in a%% it can )e said that those "ho use on%ine trading prefer adapting to ne" techno%ogy 'nd fe" off%ine traders "ant to adapt to ne" techno%ogy may )e they are ready for doing on%ine trading ist may )e that proper a"areness a)out the on%ine trading "ith a%% )enefits and dou)ts a)out security issues shou%d )e created
78
,ow do )o$ %n&et %n tock m'ket m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedHt$t %n 9oke mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$% trst in "roker least preferred 7
otal
11
preferred 23
most preferred 7
48
0
3
3
7
13
ok
how do yo in&est
online offline
in
"oth
0
11
9
7
27
stock market
portfolio management
2
0
3
7
12
9
25
38
28
100
otal
79
2 0 1 5 1 0 5 0o n l! in o e f l in e " o t h p o r t f o l io m a n a g e m e n t o , d o u i$ ) e & ti$ & to ' . m " . e t Inte5et't%on 4 !ere in this case it can )e interpreted that trust in )roker is the most important parameter 'nd no matter "hether a c%ient is off%ine or on%ine or #+S he "ants his )roker to )e trust"orthy So consumer attitude to"ards share trading )ui%ds on trust +any peop%e sti%% thinks share market to )e a gam)%e ,ut if there is someone "ho can gain trust of peop%e then "e can see many peop%e going for stock trading " ,ow do )o$ %n&et %n tock m'ket m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedH cot mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%cost not preferred 1
least preferred 5
ok 17
otal
preferred 15
most preferred 10
48
how do yo in&est
online offline
1
0
2
9
1
13
in
"oth
0
5
9
9
4
27
stock market
portfolio management
2
4
5
1
0
12
4
14
33
34
15
100
otal
80
1 5 1 0 5 0o n l! in o e f l in e " o t h p o r t f o l io m a n a g e m e n t o , d o o u i$ ) e & ti$ & to ' . m " . e t Inte5et't%on It can )e said from the figures that #+S c%ients and on%ine c%ients don@t consider cost as an important factor for on%ine trading Fhat they "ant is good serice and if profits are good then they don@t mind giing etra penny ,ut the trend is eact% y opposite in case of an off%ine trader =ost is the most preferred factor =onsumer perception is changing that costs are the on%y things that matters ,rand %oya%ty is an important factor here ,ow do )o$ %n&et %n tock m'ket m'k t0e -ollow%ng 5''mete 'ccod%ng to )o$ 5e-eence -o onl%ne 0'e t'd%ng(! 9e%ng le't 5e-eed / 9e%ng mot 5e-eedHec$%t) mark the following parameters according to yor preferences for online share trading!1 "eing least preferred# 5 "eing most preferred$%secrity not preferred 7
least preferred 1
1
otal
6
preferred 15
most preferred 19
48
0
1
1
10
13
ok
how do yo in&est
online offline
in
"oth
0
1
3
11
12
27
stock market
portfolio management
0
0
1
4
7
12
8
2
11
31
48
100
otal
81
1 5 1 0 5 0o n l! in o f e l in e " o t h p o r t f o l io m a n a g e m e n t o , d o u i$ ) e & ti$ & to ' . m " . e t/ Inte5et't%on !ere it can )e interpreted that security is the most preferred parameter for on%ine trading The reason is o)ious that anyone "ho "i%% gie money to a )roker "i%% demand that there is enough security that their money is safe and system shou%d )e such that is cant )e spoofed and it shou%d not )e hacked easi%y %nce w0en 'e )o$ %n&et%ng 5le'e 'te )o$ '55et%te o- %k t'k%ng on ' c'le o- ! to / (mo&%ng 0o%
moderate
high
otal
&ery low
low risk
&ery high
3
0
0
1
2
6
since when are yo
less than 3 months
n&esting
3 months to 1 year
2
9
5
4
2
22
1 year to 5 years
6
5
17
9
3
40
5 years to 15 years
5
7
3
3
2
20
more than15 years
2
4
5
1
0
12
18
25
30
18
9
100
otal
82
1 5 1 0 5 0 le t3 m o n t h a n 3 h s 1 t y e a r o to 1 5 y e a r 5 s t m o r 1 5 e t h a n 1 5 m o n ts h s e y r s y e a r s & i$ ' e , ! e $ " e o u i$ ) e & ti$ % / Inte5et't%on !ere the trend is that peop%e "ho are trading for 1 to 5 years kno" that they don@t need to take high risks so they opt for moderate risk 'nd here a%so there are peop%e "ho are "i%%ing to take more risk as they think they are eperienced enough to sniff the market forces 2or them higher the risk higher is the return 'nd %ast the peop%e "ho are ne" to the "or%d of stock trading they "i%% not take any risk They "i%% p%ay safe Their perception is that they don@t "ant to take any "himsica% decision ust take shares and may )e forget a)out them or "hen market is too %o" then )uy shares and "hen it reaches some high then se%% or "hen they think they hae enough of profits then they "i%% se%% %nce w0en 'e )o$ %n&et%ng %n c'e o- &ol't%l%t) %n t0e tock m'ket % wo$ld
in case of &olatility in the stock market i wold if my in&estments immediately ha&e sell any if after a year declined in in&estment there is a &ale after a that looses decline in the year# i will money on &ale#i will di&ert it not daily or pll ot my towards other in&est weekly "asis in&estments a&enes frther since when are yo in&esting
otal
less than 3 months
3
0
2
1
6
3 months to 1 year
3
2
7
10
22
83
1 year to 5 years
4
13
17
6
40
5 years to 15 years
6
1
9
4
20
more than15 years
4
4
1
3
12
20
20
36
24
100
otal
1 5 1 0 5 0 le t3 m o n t h a n 3 h 1 s t y e a r o to 1 5 y e a r 5 s t m o r 1 5 e t h a n 1 5 m o n ts & h s e y r s y e a r s i$ ' e , ! e $ " e o u i$ ) e & ti$ % / Inte5et't%on It can )e interpreted that the peop%e "ho are re%atie%y ne" to inesting in the stock
market -ie %ess than 1 year. are not going to take any risk if there is o%ati%ity in the market They "i%% pu%% out their inestments Their attitude is to earn as uick%y as possi)%e and if they hae started %osing then they "i%% pu%% out their inestments and "i%% try to minimiHe their %oss ,ut those "ho are o%der p%ayer are "i%%ing to take more risks and good percentage of peop%e under the category of 1 to 15 years "i%% diert their inestments to"ards other aenues '%so in the category of 1 to 5 years peop%e are sti%% conseratie and opt for medium risk or no risk +ay )e peop%e "ho are more than 1 year o%d )ut %ess than < years o%d are conseratie 'nd "i%% take some time to change their mind +a$ority of peop%e "ho are more than 15 years o%d in the stock market a%so %ike to p%ay safe and "i%% not take much risk
84
0ow do )o$ $t%l%
&ery low how do yo tilie yor sa&ings
otal
low
moderate
high
otal
&ery high
eties and ' 5
6
17
15
4
47
"ank deposits
9
12
8
2
2
33
real estate
2
2
2
1
0
7
l/ry items like gold
2
5
3
0
3
13
18
25
30
18
9
100
85
1 5 1 0 5 0 e ti! " a n k e d s p a o n s d i ' r t e a l s e s t l a t / r e y i t e m s l i k e g o l d o , d o o u ti#i0 e o u & " ) i$ % & / Inte5et't%on The interpretation for this is that ma$ority of those "ho hae inested in euities and +2 are "i%%ing to take moderate to high risk Fhich means stock market is a risky )usiness as per the perception and attitude of the consumers Fhereas in a%% the other things ecept %uury items %ike go%d has near%y no risk to ery %o" risk ,ut in %uury items there is a risk and peop%e are a"are of it 7o"adays commodities are traded in commodity market itse%f )ut it has re%atie%y %o" risk w0't o9:ect%&e do )o$ kee5 %n m%nd 9e-oe %n&et%ng %n&et%ng %n c'e o- &ol't%l%t) %n t0e tock m'ket % wo$ld
in case of &olatility in the stock market i wold if my in&estments ha&e if after a year declined in there is a &ale after a immediately sell decline in year# i will any in&estment that the &ale#i di&ert it looses money on will pll ot towards not daily or weekly my other in&est "asis in&estments a&enes frther what o"ecti&es do yo keep in mind "efore in&esting
retirement planning
protection or emergency
otal
2
0
3
1
6
10
6
11
9
36
86
portfolio di&ersification wealth accral
otal
3
6
9
4
22
5 20
8 20
13 36
10 24
36 100
Inte5et't%on !ere a siHa)%e amount of peop%e "ou%d go for portfo%io diersification if there is a
%ot of o%ati%ity in the market and 35J peop%e "i%% put their money in other aenues This is the )est strategy to nu%%ify the o%ati%ity These types of peop%e hae good kno"%edge of the stock market and kno" "hen to enter and "hen to eit Their attitude is to go into the )att%e fie%d ie stock market and inest in different stocks and different types of inestments Same trend is for the peop%e "ho "ant to increase their "ea%th They $ust think "ea%th can )e increased )y )eing in the stock market and they "i%% diert their inestments to"ards other aenues
87
F?T?RE OF S,ARE TRADING WIT, INDIAN 4ROBLEMS
Fhi%e ana%ysing the e4)roking scenario in India some of the structura% aspects need to )e kept in mind 2irst%y the )readth of participation in India in the stock market is ery %o" The a"areness among the peop%e is sti%% not up to the mark The stock )roking companies shou%d take this as a cha%%enge and shou%d come up "ith some ne" and innoatie "ays of trading easi%y and conenient%y The )roking companies shou%d go for some tie4ups "ith the %eading priate and goernment )anks so that it "ou%d )e easier for the traders to transfer their funds as and "hen reuired Den the )rokers shou%d increase the %ee% of serices Like of "e take the present market situation they are not in a position to conince the traders to inest more as this is the )est time for inestments Traders sti%% "ant to p%ay it safe on their part )ut %acking the kno"%edge a)out the market is a%so ery dangerous So the companies shou%d try and increase the kno"%edge of the traders so that they can do more trading in the fa%%ing market a%so Second%y internet penetration in India is ery %o" In other foreign markets on%ine )rokerages are adertised heai%y ,ut India the on%ine trading so far has not seen simi%ar %ee%s of aggressie adertising "ith the eception of some %eading )roking companies %ike I=I=I;irect !ome Trade and Sharekhan %td apart from this there is one more %imitation of the Indian stock market that on%y the scrips that hae )een compu%sori%y demateria%ised can )e traded on the net Third%y the )rokerage charges in India are ery %o" "ith )rokers charging from 085 to 130 per trade Thus the scope for epansion of the market through reduction in )rokerage is far %o"er 2ourth%y techno%ogy )ott%enecks are responsi)%e for on%ine trading to a %arge etent and it has not taken off the ground The main cause C poor )and"idth C is prominent%y one of the main reasons )ehind this The three main techno%ogica% o)stac%es "hich are responsi)%e for on%ine trading are internet penetration )and"idth and poor ua%ity of IS# 2ifth%y a physica% presence is a must for any inestor in India 'n aerage inestor ca%%s his )roker for confirming a)out the eecution of his order and thus the purpose of on%ine trading is %ost at that point itse%f This happens )ecause if the connection is %ost in the midd%e of eecution then the inestor can@t )e sure a)out his order status and thus makes a ca%% to his )roker 's the on%ine trading is sti%% at the grass root %ee% and most traders going for off%ine trading thus a physica% presence is a crucia% for any )rokerage firm in India
88
;uring the surey one more thing came to %ime %ight that )anking )roking and depository p%atforms though a%% %inked to same trade function on entire%y different p%atforms Integrating a%% of these is a ma$or o)stac%e In spite of the a%% the hass%es and issues -$t$e look $%te 9%g0t ,ig p%ayers %ike Be%iance 'irte% and ,S7L are %aying optic fi)re across the country and the connectiity issue "i%% most%y )e so%ed '%though the risk appetite of the traders has reduced )ut the participation %ee% has increased a %ot and is sta)i%iHing to high %ee%s The trend to"ards on%ine trading is increasing ery rapid%y and this is sho"n )y its rapid acceptance in dee%oped and structured capita% markets 7SD and ,SD hae a%so inf%uenced the dai%y traders to %earn the methods of on%ine trading Den the SD,I ru%es hae a%so )een ery strict no" and the initia% fear of entering into the markets is a%so reducing gradua%%y The o%ati%ity in the stock market is a%so %imited and aries according to the category in "hich the shares of any particu%ar company are The demateria%iHation of shares is a%so )een made mandatory )y SD,I and hence on%ine trading has this adantage of f%ourishing in near future The num)er of on%ine stock )roking companies is a%so on a moe and more and more companies are giing the option of on%ine trading to their customers at ery %o" rates "hich are a%most neg%igi)%e as compared to the adantages the on%ine trading has 'ssurances to secure on%ine transactions are ery high as most of the stock )roking firms are using a%gorithms that use dou)%e encryption
89
6"! MOBILE TRADING 8 T,E F?T?RE
The )uying and se%%ing of shares using the mo)i%e phones is the net step of techno%ogy adancement 's the mo)i%e techno%ogy is increasing day4)y4day the mo)i%e trading is not ery far Den the %eading stock )roking firms are a%so ready for this They are seeing a su)stantia% gro"th in this segment The )roking houses are "aiting for the permission from the stock echanges to offer mo)i%e trading and stock echanges are a"aiting the permission from the SD,I The techno%ogy is ready mo)i%e operators are ready and stock )roking houses are "aiting in the "ings too Fith the fast connections through mo)i%e phones "ith techno%ogies %ike #BS and D;D -coming to India in near future. mo)i%e trading "ou%d )e ery easy and one eecute their orders through phones '%ready the stock )roking are proiding streaming uotes tips and research reports on the mo)i%e phones sers can see the market rates enter modify cance% orders and ie" their positions and transaction through a fu%%y secure channe% 2rom the phone )ased trading to on%ine trading the stock market has coered a ery %arge distance and no" from on%ine trading to mo)i%e trading is not ery far There are arious supporting reasons )ehind this adancement( •
ro"th in data)ase C the registered )ase of on%ine trading customers is approimate%y around << %akh ti%% the start of <008 and is gro"ing ery fast ' %arge portion of this is young professiona% "ho are in soft"are engineering ,#?s and other industries These are not intimidated )y the techno%ogy and are ready to adopt ne" techno%ogy ery freuent%y
•
ntapped potentia% C ru%es in arious companies are different Some a%%o" their emp%oyees to do trading in their offices hours and some don@t so they do trading either in their homes or "ith their %aptops or cy)ercafs So if the trading faci%ity "ere made aai%a)%e on the mo)i%e phones too then a %arge num)er of customers "ou%d use this faci%ity
•
!igh o%umes C it may )e possi)%e that trades per person may )e %o" )ut the o%umes cou%d )e high This "i%% a%so earn more reenues for the )roking houses and mo)i%e company a%so
•
Bisk C in times of crisis or o%ati%e market on%ine trading is %ess risky as one second is a%so ery important in the stock market The one second can een make you or destroy you
•
Less intimidating C using mo)i%e is much easier than using internet 's mo)i%e is in use from a ery %ong time and peop%e a%so find it easy to use Thus trading on mo)i%e "i%% much easier and user friend%y to peop%e as they don@t hae many pro)%ems using mo)i%e phones 90
C,A4TER !7 91
CONCL?SIONS AND RECOMMENDATIONS
92
CONCL?SION
Fith increased g%o)a%iHation companies need to conduct continuous ana%ysis in order to dee%op strategies to address the contemporary condition of competitie markets Industry ana%ysis is necessary to determine the forces of competition The retai% )rokerage industry has eperienced a num)er of changes in recent times particu%ar%y due to the shift in consumer )ehaiour from using traditiona% fu%% serice )rokerages to discount firms to on%ine inesting through e4trading ,y doing this surey it is found that the consumer attitude to"ards share trading is ery much positie They are "i%%ing to adopt ne" techno%ogy proided they are gien proper kno"%edge a)out it 'nd )rokerage companies "hich can uick%y adopt ne" techno%ogies into the system "ith re%ia)%e and ease in transactions "i%% succeed and can tap greater pie of the market There are arious factors "hich affect the attitudes of customers to"ards share trading( •
#eop%e haing more income are ready to take more risks and thus schemes shou%d introduce for them separate%y
•
#eop%e of age more than 50 years are more "i%%ing to put their money into )ank deposits They shou%d )e targeted )asica%%y for the #+S as they "ant more security and #+S ti%% date has gien good resu%ts
•
,rokerage )eing an important factor for many peop%e )ut as such )rokerage charged )ut many stock )rokers are ery %ess so more epansion of the customer data)ase on the )asis of reducing )rokerage is not possi)%e )ut they shou%d try and improe their serices as they matter the most for a%% the traders
•
The inestors are more in their youth age and midd%e age and they are much more inc%ined to"ards using the serices of Sharekhan %td #eop%e trust Sharekhan more as the tips gien )y the Sharekhan hae a greater percentage of accuracy So Sharekhan has )ecome a )rand and it shou%d try to increase its customer@s data)ase )y %aunching arious schemes
•
Nouth and midd%e age don@t hesitate "hi%e taking risk They "ant to earn money ery fast +idd%e aged peop%e are moderate risk takers as they are at an age "here they hae to keep many things in their mind and hence they don@t take much risk ?%d age peop%e are %o" risk takers as they don@t "ant to %ose their money and a%so they "ant to accrue their "ea%th instead of %osing it 93
RECOMMENDATIONS
1 's it@s )een o)sered that around 8J of the respondents are using on%ine trading and on%y 13J of the respondents are doing off%ine trading so there is a greater scope to target peop%e "ho are not doing stock trading )y aggressie adertising campaign and creating a"areness a)out the )rokerage company high%ighting a%% the )enefits of techno%ogy and Be%ia)i%ity factor < 'nother thing that@s )een found out during this surey is that peop%e a%ue serices more than cost #eop%e "ant good serices and are ready for paying etra penny 3 #eop%e prefer Dase of transactions and security So )rokerage companies shou%d focus on security and making transactions as simp%e as possi)%e "ith simp%e usage of techno%ogy There are some companies "hich don@t hae tie ups "ith many )anks so that trading account can )e %inked "ith the saings account of the )rokerage company So a focus to go for tie ups "ith ma$or nationa%iHed )ank shou%d )e there 5 =ompanies shou%d proide kno"%edge to the customers re garding stock market 'im shou%d not )e making maimum profit at once The adantage of this "i%% )e that the customer "i%% trust )roker and "i%% recommend to the other peop%e a%so 6 The company shou%d proide a manua% to their c%ients to ease them through the process of on%ine trading
94
C,A4TER !!
LIMITATIONS
95
LIMITATIONS •
Sometimes there are unkno"n reasons on the )asis of "hich markets operate and the findings of the pro$ect may not ho%d true in such cases That is the reason "hy the market is sometimes ca%%ed as &Irrationa% creature*
•
+ost%y inestors "ho inest in the stock market hae money and they $ust "ant to inest "ith no predefined o)$ecties in mind and hence they re%y upon the suggestions of the distri)utors and marketing eecuties "hich deiates the actua% )ehaiour from the epected )ehaiour .
•
Lack of a"areness of stock market( since the area is not kno"n )efore it takes a %ot of time in conincing peop%e to inest in share market
•
Some respondents are un"i%%ing to ta%k or they don@t hae time to respond
•
+is%eading concepts( some peop%e think that shares are too risky and are $ust another name of gam)%e ,ut its not at a%% risky for %ong term inestors
96
C,A4TER !*
ANNE?RE ;?ESTIONNAIRE
97
ANNE?RE
An analysis of consumer attitudes towards share trading : a comparison between online trading and offline trading.
Questionnaire
7ame ( ender(
+a%e
'ge(
18430
2ema%e 3040
0450
50 and a)oe
M1 Fhat is your net incomeG nder 150000
1500004300000
3000004500000
1000000 and a)oe
50000041000000
M< Fhich stock )roker@s serices do you aai%G Be%iance money
I=I=I ;IBD=T
Be%igare
India ,u%%s
India Info%ine
Share >han
'ny ?ther -p%ease specify.________________________ M3 !o" do you inest in stock marketG ?n%ine ,oth M Since "hen are you inestingG Less than 3months 5 to 15years
?ff%ine #ortfo%io +anagement
3 months to 1year +ore than 15years
1 to 5 years
M5 !o" do you uti%iHe your saingsG Duities and +utua% funds
,ank deposits
Bea% estate
Luury items %ike go%d
'ny ?ther -Specify.
_______________________________________
98
M6 Fhat o)$ecties do you keep in mind "hi%e inestingG Betirement p%anning #rotection or emergencies #ortfo%io diersification Fea%th accrua% ?ther -p%ease specify. ________________________________________
M9 ;o you confirm from your )roker after the order is eecutedG
Nes
7o
M8 Fhat "ere the sources from "here you got information a)out the stock )roker for inesting in the stock marketG T: and radio ,usiness magaHines and ne"spapers 2riends or co%%eagues Internet and Fe)sites ?ther -p%ease specify._________________
MA +ark the fo%%o"ing parameters according to your preferences for on%ine share trading -1)eing not preferred and 5 )eing most preferred. 1
<
3
5
'ccessi)i%ity 'doption of ne" techno%ogy =osts Trust in )roker-s. Security conenience Dase of use M10 Bank the fo%%o"ing parameters according to your preferences for the )roker company from 1 to 6 -1 )eing most important and 6 )eing %east important. ,rokerage
Dposure/Limit
Dase of use
#hone trading
Security
=osts
M11 ;o promotiona% schemes affect your decisions for share tradingG 99
Nes
7o
M1< In case of o%ati%ity in the stock market I "ou%d a ) c d
Immediate%y se%% any inestment that %oses money on a dai%y or "eek%y )asis If after a year there is a dec%ine in the a%ue I "i%% pu%% out my inestment If my inestment has dec%ined in a%ue after a year I "i%% diert it to"ards other aenues 7ot inest further
M13 #%ease rate your appetite of risk taking on a sca%e of 1 to 5 -+oing horiHonta%%y from ery %o" risk taking to ery high risk taking. :ery %o"________________________________________________________ery high 1
<
3
Than !ou
REFERENCES
100
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