Você está na página 1de 101

AN ANALYSIS OF CONSUMER ATTITUDES TOWARDS SHARE

TRADING: COMPARISION BETWEEN ONLINE SHARE TRADING


AND OFFLINE SHARE TRADING

SUMMER INTERNSHIP REPORT


Submitted for the Partial Fulfilment of MBA Degree
of

CERTIFICATE

This is to certify that ______________________________ has undertaken the Summer


Internship Training at Sharekhan Limited during 01/05/08 and 30/06/08. He has worked under my
guidance for the Project Title An analysis of consumer attitudes towards share trading: comparison
between online share trading and offline share trading in Sharekhan Ltd.

This project report is prepared in partial fulfilment of Master of Business Administration


(MBA) to be awarded by Amity University, Uttar Pradesh.

To the best of my knowledge, this piece of work is original and no part of this report has
been submitted by the student to any Institute/University earlier.

ACKNOWLEDGEMENT
Failure to prepare is preparing to fail.
I hereby express my sincere thanks to our _______________________________ for developing the
excellent academic environment in the institute, and encouraging the students to pursue such an
important area of study.
I express my deep sense of gratitude to __________________________ for his motivation and
encouragement throughout the period of the project study. I am indebted to his guidance, spirit and
valuable suggestions and words of wisdom which will go a long way in developing me to face the
corporate and to take up all the challenges. He always guided me through the uncharted seas, took
great pains and spared most valuable time whenever I wanted it.
I owe enormous intellectual debt towards my industry guide _____________________________
(Sales Manager - Sharekhan ltd.) for helping me in learning the consumer perspective and exposing
me to issues involved in the marketing of financial services. It was his useful guidance and valuable
suggestions that led to the successful completion of this project.
I would also like to thank him particularly for providing me with the much needed corporate
exposure for which this summer internship project has been especially designed for and for his
lessons which will surely pave my path in turning up as responsible corporate personality.
I am obliged to Management of Sharekhan Ltd. for cooperation during the Internship. My increased
spectrum of knowledge in this field is the result of their constant supervision and direction that has
helped me to absorb relevant and high quality information.
I would like to thank all the respondents without their cooperation my study would not have been
possible.
I feel highly indebted to my parents and my brother and sister who have provided me help directly or
indirectly in successful completion of this study.
Last but not the least, I feel highly indebted to Almighty God who helped throughout the project for
the successful completion of this project.

TABLE OF CONTENTS

Acknowledgements
1. Executive summary

2. Literature Survey

3. Introduction
3.1 History Of Stock Market

3.2 Stock Market

3.3 Online Share Trading

3.4 Advantages And Disadvantages

3.5 Offline Share Trading

3.6 Advantages And Disadvantages

4.

5.

3.7 Purpose Of Stock Market

3.8 Relation Between Stock Market And


Modern Financial System

3.9 Present State Of Stock Market

10

Consumer Behaviour

11

4.1 Reasons for Studying Consumer Behaviour

11

4.2 Factors That Influence Consumer Behavior

12

Company profile Sharekhan ltd.


5.1 Mission

13

5.2 Origin

13

5.3 Products Offered by Sharekhan ltd.

15

5.4 Reasons to Choose Sharekhan ltd.


6.

15

Research Methodology
6.1 Research Objectives

17

6.2 Methodology
6.2.1 Collection of Data

18

6.2.2 Sampling Methodology

18

6.2.3 Time Frame

19

6.3 Questionnaire Design

19

6.4 Designing a Reliable Instrument

19

6.4.1 Pilot Survey

20

6.4.2 Survey Place

21

6.5 Sampling And Sample Size

7.

21

6.5.1 Sampling

21

6.5.2 Sampling Method

21

6.5.3 Population

22

6.5.4 Sample Size

22

6.5.5 Sample Size Calculation

22

Data Analysis

24

7.1 Descriptive Statistics

24

7.2 Correlation Matrix

26

7.3 KMO and Bartletts Test

28

7.4 Total Variance Explained

29

7.5 Communalities

30
5

7.6 Component Matrix

32

7.7 Scree Plot

33

7.8 Rotated Component Matrix

34

8. Visual Illustrative Graphs

36

9.

Future Of Share Trading with Indian Problems

71

9.1 Mobile Trading The Future

73

10. Conclusions and Recommendations

75

11.

77

Limitations

12. Annexure
12.1 Questionnaire
13.

78

References

81

LIST OF TABLES AND FIGURES

Fig. 5.1

Number of share shops

14

Fig. 7.1

Scree Plot

33

Fig. 8.1 - 8.31

Visual Illustrative graphs

36 - 70

Table 7.1

Descriptive Statistics

24

Table 7.2

Correlation Matrix

25

Table 7.3

KMO and Bartletts Test

28

Table 7.4

Total Variance

29

Table 7.5

Communalities

30

Table 7.6

Component Matrix

32

Table 7.7

Rotated Component Matrix

34

Table 8.1 8.28

Visual Illustrative Table

38 - 69

LIST OF STATISTICAL ANALYSIS TOOLS USED

Descriptive Statistics

24

Correlation Matrix

25

KMO and Bartletts Test

28

Total Variance

29

Communalities

30

Component Matrix

32

Scree Plot

33

Rotated Component Matrix

34

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 significance of life as a whole

I hereby dedicate this piece of work to those two precious


years of my life at ABS where I got the opportunity to
understand the life outside the barriers of contemporary
education.

CHAPTER 1

EXECUTIVE
SUMMARY

10

11

12

CHAPTER 7

DATA ANALYSIS

13

CHAPTER 8

VISUAL
ILLUSTRATIVE
GRAPHS

14

CHAPTER 9

FUTURE OF SHARE
TRADING

15

CHAPTER 13

REFRENCES

16

EXECUTIVE SUMMARY
The objectives of the proposed study are:
1) Identify the specific factors that affect consumer attitudes towards share trading.
a) Identify the specific factors that affect consumer attitudes towards online share trading.
b) Identify the specific factors that affect consumer attitudes towards offline share trading.
2) Comparison between online and offline share trading methods.
The methodological approach to this study is descriptive, because we attempt to identify and explain
variables that exist in a given situation and to describe the relationship that exists between these
variables in order to provide a picture of a particular phenomenon, but not to ferret out cause-effect
relationship. The primary data was collected through questionnaire filling and by conducting
telephonic interviews. The secondary data was collected from journals, texts written by renowned
marketing gurus of reputed institutes around the world and the internet.
India has a large chunk of population which is at lower income level and at middle income level.
There is a need of creating awareness among them for share trading and the tremendous potential it
has. They are doing trading on the old methods which were used in the past. Now with the advent of
technology there are many options available to the traders which they can use without any fear. The
trend is moving towards the online share trading but still it has a lot to cover. The traders are more of
young age and middle age and dont fear from risk taking but the lack of knowledge doesnt allows
them to do so. So the stock broking companies should take measures to empower the normal
investors so that they can trade with the latest technologies available.
Target the youth as they are most potential customers of the stock market as their interest towards
stock trading is increasing. The stock broking companies should educate the investors by giving them
timely help in the form of reports and tips. The companies should try to work in more transparent
way. People want good services and are ready for paying extra penny. People prefer Ease of
transactions and security. So, brokerage companies should focus on security and making transactions
as simple as possible with simple usage of technology. The stock broking companies should also go
for tie-ups with the leading banks.

17

CHAPTER 2

LITERATURE
REVIEW

18

LITERATURE SURVEY
The stock market has been a part of people's lives throughout the twentieth century. Millions
of people around the world have money invested in their countries own respective markets. Since the
coming of age of online trading, more people have been investing their money in stocks than ever
before because of the advantages it offers. Online trading allows people to trade stocks quickly
without the help of a broker, letting the investors have more control over their transactions. The
competition between companies has helped decrease the cost of making the transactions. In addition
to that, ordinary people now have access to information that could only be seen by brokers. Overall,
online trading saves time, money and gives power to the investor rather than the broker.
The combined effects of financial services companies striving to drop the cost of providing
customer service and the significant rise in individual investors' interest in taking control of their
own investments continues to increase the use of online securities trading. Further, many individual
investors rely on the internet as a means of learning as much as they can about specific investments
before executing a stock or bond trade online, and this factor alone is changing the landscape of
financial services. It is seen that the financial services firms are walking a fine line between
automating transactions by putting powerful investment tools in the hands of individual investors,
while at the same time educating them of the financial benefits of long-term investing. With the
advancement of online trading individual investors have more control over their funds than ever
before, yet with that freedom comes a high level of responsibility to make sure the advice,
applications and tools they gain access from financial services firms are in fact the best match with
their investment needs.
For this industry, analysis can be conducted in an effort to determine who has the power, the
customers or the suppliers? Competitive forces provide buyers or suppliers with an advantage in
terms of who holds the bargaining power.
Tumbling markets, falling share prices.... make us appear the trading exercise very lucrative.
But still puzzled, where will we be able to choose the right lot from the markets.

The best way to predict the future is to invent it.

19

CHAPTER 3

INTRODUCTION

3.1 History of Stock Market


20

It was in the year 1875 that the working of stock exchange in India started. BSE is the oldest stock
market in India. Indian stock trading started with 318 persons taking membership in Native Share
and Stock Brokers Association, which is now known as the Bombay Stock Exchange or BSE in
short. In 1965, BSE got permanent recognition from the Government of India. National Stock
Exchange (NSE) comes second to BSE in terms of popularity. BSE and NSE represent themselves as
synonyms of Indian stock market.
The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is compiled based on
the performance of the stocks of 30 financially sound benchmark companies. In 1990 the BSE
crossed the 1000 mark for the first time. It crossed 2000, 3000 and 4000 figures in 1992. The reason
for such huge surge in the stock market was the liberal financial policies announced by the then
financial minister Dr. ManMohan Singh.
The buoyant mood of the market was suddenly gone with Harshad Mehta scam. It came to public
knowledge that Mr. Mehta, also known as the big-bull of Indian stock market diverted huge funds
from banks through fraudulent means. He played with 270 million shares of about 90 companies.
Millions of small-scale investors became victims to the fraud as the Sensex fell flat shedding 570
points. Thus, from that day it became very clear that the stock market is not a place where you can
earn money easily without taking into considerations about your environmental changes. It also made
it very clear that the small investors should themselves as safe as possible because of the uncertainty
in the market.
To prevent such frauds, the Government formed The Securities and Exchange Board of India (SEBI),
through an Act in 1992. SEBI oblige several rigid measures to protect the interest of investors. Now
with the inception of online trading and daily settlements the chances for a fraud is nil as the stock
broking companies had to make it very to each and every investor bout the various issues of the stock
market.
Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was crossed in
June and the 8000 mark on September 8 in 2005. After the liberalization, when the gates were open
for the foreign investors the Indian stock market was flooded with the FDIs (foreign direct
investments) and the market has shown tremendous amount of volatility. And very recently market
has even touched the 21,000 mark.
3.2 Stock Market
21

The market or place, where securities, viz. shares are exchanged or traded or simply where buying or
selling of shares takes place, is called stock exchange or stock market.
In India there are two types of stock exchanges:
1. National Stock Exchange (NSE)
2. Bombay Stock Exchange (BSE)
NSE is a Mumbai-based largest stock exchange in India in terms of daily turnover and number of
trades. Though it is mutually-owned by a set of leading financial institutions like banks, insurance
companies but its ownership and management operate as a separate entities. It is the second fastest
growing stock exchange in the world with a recorded growth rate of 16.6%. It was incorporated in
November 1992 as a tax paying company. In April 1993 it was recognized as a stock exchange under
the Securities Contracts Act, 1956. The capital market (equities) segment of the NSE commenced its
operations in November 1994, while operations in derivatives segment commenced in June 2000. It
is the third largest Stock Exchange in the world in terms of number of trades in equities.
BSE is the oldest stock exchange in Asia and also the biggest in the world in terms of listed
companies with 4800 listed companies as of August 2007. It was established in 1875. It played a
pivotal role in the development of its index SENSEX which is tracked worldwide. It has a PAN India
presence in 417 cities and towns.
In a nation with middle class population of above 200 million, most of whom dream of a better,
financially comfortable tomorrow, the stock market is obviously seen as the perfect place to invest
when you consider that stock markets can make you rich in a very short span of time provided you
play your cards correctly. But the scams in the last centuries have made the investors to play it safe,
if they dont know the rules of the game. In the past few years though have seen a wave of
technology enhancements sweeping through the Indian share markets, wiping out archaic
conventions. Due to this we have seen many changes coming into the picture like online share
trading gradually coming to India. These technological innovations have been brought out most
proactively by NSE.
The online share trading started way back in February 2000 with the Geojit Securities conducting the
first online transaction where 100 shares of Reliance was traded by SEBI Chairman D R Mehta for
Geojit Chairman A P Kurien. Since then a lot has changed in the Stock market. Currently, online
trading volumes in India is just about 20% of the total trades. Slow off the blocks, but online share
22

trading in India is poised to grow very fast in the future. From a base of about Rs 3 crore in April
2000, online trading volume has risen to nearly
In the stock market, basically trading of shares is done apart from commodities trading. Trading is
the process of buying at lower price and then selling it at a higher price for earning profits. Share
trading is one of the most successful trading and it has become simpler, fast, and secure from offline
trading or phone trading into online trading. Online trading is done with the help of internet.
One of the biggest problems with the stock market is that there are no guarantees. After doing a lot of
research at your home still it may be possible that the stock which you had picked falls to oblivion.
Share trading is done in mainly two ways:
1. Online share trading
2. Offline share trading
3.3 ONLINE SHARE TRADING
Online share trading is done with the help of computer, internet connection and with trading or demat account is called online share trading, or we can say that online trading is the trading of
securities via the internet. If you would like to do online share trading then you should have a
computer, internet connection and online trading account. It is done via internet means that all the
transaction are settled electronically.
3.4 Advantages:
1.The first and main benefit of this is that in online trading the member does not need to go to the
share market for checking, which consumes a lot of time. All the information about shares, stock
market is just one click away and it has made trading much simple, easy and attractive.
2. Dependence on broker or anybody else is nil for placing or squaring off the order. In short one is
his/her own boss for trading of shares.
4. Its not possible or viable for a broker to update customers about each and every news of the
market or any news which can have any influence on the share market. So if someone is doing online
trading himself, then a disaster can be averted. People can get news and updates on various websites
and also on their online trading system and most of the information will be free of cost.

23

5. All the transactions and related documents can be seen online and can also be downloaded to the
PC without depending on any broker. Status of the amount can also be checked on daily basis
through online trading system.
Disadvantages
1. One may face a problem of disconnection from internet and hence will not be able to login-in and
do share trading.
2. One may also face problem like electricity cut-off and at that time one has to call his broker and
place the order for execution.
Due to all of the above advantages it is clear that the trading in India is spreading like fire and is
surely going to increase in the future.

3.5 OFFLINE SHARE TRADING


In offline trading the transactions are done through the phone and when to buy or sell is directed
through phone. In other words trading will be done by another person on ones behalf based on the
instructions given by one, and then the other person can be a broker. The broker will do buying and
selling of shares on ones behalf depending on the instructions given by one. This type of trading was
done in the past but nowadays most of the trading is done through computers i.e. online. E.g.
Suppose that if Mr. X wants to sell n number of shares when the share price reaches Rs. 100, then X
will tell his broker to sell the share at Rs 100 (i.e. when the price of Rs. 100 is reached).
Nevertheless, with all the convenience of online trading there are still investors who prefer the old
fashion way of offline trading. Offline trading has lost some popularity but it is still the main form of
investing. Offline trading offers many benefits as well.
3.6 Advantages:
1. The one benefit that an investor appreciates the most is that they are not alone when making
investment decisions.

24

2. There are experienced and professional brokerage companies that handle their investments for
them.
3. Investors are not faced with the challenge of making these vital investment decisions; especially, if
they do not have the experience necessary to make the appropriate investments.
4. Also, there is someone there to answer any questions that may cause concerns.
Not to mention, with offline trading mistakes are less likely to take place. No one wants to throw
their money away or stand by and watch someone else throw their money away. It may be wise to
hire a professional to assist you in making the correct investment decisions if you feel you lack the
knowledge necessary.
The reason why online trading has emerged is due to the emergence of IT. Doing transactions online
is always advantageous and easy plus less time is taken by doing transactions online. Also following
are the disadvantages of doing transactions offline:
1. Not the cheapest fees available.
2. Lost some of its competitiveness in attracting new customers with higher commission rates.
3. Time consuming process.
4. Slow process than online trading. A delay of even a second can change the value of a particular
stock greatly.
3.7 PURPOSE OF STOCK MARKET
The basic purpose of stock market is to provide capital for investment and for the investors liquidity.
For large companies to emerge and function effectively there is a need to pool risk capital which
individual entrepreneurs cannot bring in on there own or with the help of relatives, friends and
acquaintances. The stock market is one of the most important sources for companies to raise money.
This allows businesses to raise additional capital for expansion or for financial needs by selling
shares of the company. Selling of shares is like selling of the ownership of the company in public
market. Share prices also affect the wealth of households and their consumption. Thus, central banks
keep an eye on the control of stock market and on the smooth operation of financial systems
functions.
The collection and delivery of shares is also very important to eliminate the risk to an individual
buyer or seller. The smooth functioning of all these activities facilitates economic growth and
increased prosperity.
3.8 RELATION BETWEEN STOCK MARKET AND MODERN FINANCIAL SYSTEM
25

There is a most remarkable transformation in the financial systems in most countries. One such
transformation is disintermediation. The heightened interest of general public in investing in the
stock market, either through equities or through mutual funds A portion of the funds involved in
saving and financing flows directly to financial markets instead of being routed via banks deposit
operations. Recent trends have shown that shares have made up an increasingly large proportion of
households financial assets. In all developed economic systems such as EU, the United States, Japan
and other nations, the trend has been same: saving has moved away from traditional bank deposits to
more risky securities of one sort or another.

3.9 PRESENT STATE OF STOCK MARKET

At present the stock market is not doing fine but thats a natural phenomenon to happen, i.e. anything
that goes up at one point of time, it has to come down at some other point of time. That is what is
happening with the stock market. But here lies a big opportunity for investors. Share prices for most
of the stocks are at their 52 week down. Hence, it is an appropriate time to buy any share (obviously
your pocket should allow that to happen) and forget about selling them for at least 1 year or
according to your needs (when you want to exit).
There are many reasons for this situation of the stock market such as rise in fuel prices, inflation, and
recession cycle in the USA, increasing fiscal deficit due to tons of subsidies, etc. Stock market may
fluctuate as per positive or negative news, political factors and many other factors. Selling on part of
the FIIs and bearish sentiment of the investors have kept the market in pressure as selling has been
witnessed from the last couple of weeks. Nifty 50 had broken the psychology level of 4800 and even
4600 and it is likely to break even 4200 mark. It is very difficult to believe that Indian stock market
has gone below 14000 points after crossing 20000 points mark at one time. From last few months,
India stock market is on constant down fall and investors have suffered huge losses accounting for
billions of dollars. Moreover, people still do not have clear idea about whether to invest in stock
market in present condition or remain away from it. Some experts have even predicted that market
can slide below 10,000 points in worst conditions because stock market is reacting negatively to rise
in inflation and increasing crude oil prices. Right now its a right time to buy stocks. Another thing is
that if someone is new to the stock market then he/she should not go for trading, better to go for
investments i.e., go for long term investment, which will always increase wealth.

26

CHAPTER 4

27

CONSUMER
BEHAVIOUR

CONSUMER BEHAVIOR
It is the study of how, when, what, and why people buy. Its elements blend with the elements of
marketing and psychology. It helps us to understand the buyer decision making process, both
individually and in groups. It helps us to study the characteristics of individual consumers like
demographic, psychographic, and other behavioral variables in an attempt to understand peoples
needs and wants.
The study of consumer behavior helps the firms and organizations in improving their marketing
strategies by understanding various issues such as:
1. How consumer thinks, feels, and select between different alternatives? (e.g., brands,
products)
2. How is consumer influenced by his or her environment?(e.g., culture, family, friends)
3. Consumer knowledge or information processing abilities.
4. How marketers can adapt and improve their marketing campaigns and strategies to reach the
consumers more effectively.

4.1 REASONS FOR STUDYING CONSUMER BEHAVIOR


28

Consumer analysis helps managers in many ways like:


1. Designing the marketing mix.
2. Segmenting the market place accordingly to consumer needs and wants.
3. Positioning and differentiating products of their companies differently to each consumer.
4. Provides knowledge about overall human behavior.
5. Provides the recent trend in the market among the consumer preferences.

4.2 FACTORS THAT INFULENCE CONSUMER BEHAVIOR


The factors that influence consumer behaviour are divided into mainly two categories:
1. Internal Factors :
The internal factors include the psychological factors such as:
a) Needs and motives
b) Personality
c) Perception
d) Learning
e) Attitudes
f) Involvement
2. External Factors:
The external factors include the factors from the environment such as:

29

a) Socio-cultural factors Societal values, economic factors, media, reference groups,


etc.
b) Demographic Characteristics Age, gender, income, educational level, occupation,
social class, ethnic group, etc.

30

CHAPTER 5

COMPANY PROFILE

SHAREKHAN LTD.

31

5.1 MISSION
To educate and empower the individual investor to make better investment decisions through
a) Quality advice
b) Innovative products and
c) Superior service
5.2 ORIGIN
Sharekhan Ltd. is one of the leading retail brokerage of SSKI (S.S. Kantilal Ishwarlal Securities
Limited) group which is running successfully since 1922 in the country. SSKI group has over eight
decades of experience in the business of stock broking. Sharekhan Ltd. started off as a retail arm of
SSKI. Citigroup Venture Capital International holds 75 per cent equity stake in Sharekhan while
IDFC holds another 10 per cent. The remaining equity is with the management and employees of the
brokerage firm.
Sharekhan Ltd. offers its customers a wide range of equity related services like execution on BSE,
NSE, derivatives, depository services, online trading, etc.
The firms online trading and investment site www.sharekhan.com was launched on Feb 2000.
Known for its jargon-free, investor friendly language and high quality research, the site has a
registered base of over 1 lakh customers. Out of total online trading in India, Sharekhan Ltd. alone
accounts for approximately 32 percent of the volumes traded online. Along with sharekhan.com
website, ShareKhan has around 750 offices (share shops) in 170 cities around the country. It started
with 82 share shops in 2001-02 and has grown to more than 750 share shops and outlets with the
expected 800 outlets till the end of September 2008. While its size and strong balance sheet allow
Sharekhan ltd to provide the clients with varied products and services at very attractive prices, it has
over 1000 Client Relationship Managers who are dedicated to serving their valued customers/clients
unique needs.
Share khan has one of the best state-of-art web portal providing fundamental and statistical
information across equity, mutual funds and IPOs. You can surf across 5,500 companies for

32

Fig. 1
in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You can also
access other market related details such as board meetings, result announcements, FII transactions,
buying/selling by mutual funds and much more.
Sharekhan is lead by a highly regarded management team that has invested crores of rupees into a
world class Infrastructure that provides its clients with real-time service & 24/7 access to all
information and products. Their flagship Sharekhan Professional Network offers real-time prices,
detailed data and news, intelligent analytics, and electronic trading capabilities, right at customers
finger-tips. This powerful technology complemented by the knowledgeable and customer focused
Relationship Managers. Sharekhan is creating a world of Smart Investor.
Sharekhan offers a full range of financial services and products ranging from Equities to Derivatives
to enhance its customers wealth and hence, achieve their financial goals.
The online trading portal has stood out among its competitors because of its steadfast dedication to
offering customers the best technology and superior information. Sharekhan Ltd unveiled an all-new,
world class online investing facility from the convenience of ones home or office, one could invest
in the equity market with the help of advice of experts on the markets.
5.3 PRODUCTS OFFERED BY SHAREKHAN
1. BOLT for offline trading.
2. NEAT for online trading.
33

3. Portfolio Management Services (PMS).


4. Online trade in commodities.
5. Mutual fund advisory.
6. Insurance.
5.4 REASONS TO CHOOSE SHAREKHAN LIMITED
1. Experience: SSKI has more than eight decades of trust and credibility in the Indian stock
market. After the launch of Sharekhan ltd. as its retail broking division in Feb 2000, it has
been providing institutional-level research and broking services to individual investors.
2. Technology: With the online trading account one can buy and sell shares in an instant from
any PC with an internet connection.
3. Accessibility:

Sharekhan provides advice, education, tools, and execution services for

investors. There are over 750 share shops all over the country and the website gives excess
to all the consumers 24X7.
4. Knowledge: The online trading portal of Sharekhan ltd. is rich in content and the research
reports are 80 percent accurate. It also contains useful set of knowledge-based tools that
empowers to take in decisions.
5. Convenience: One can do either online trading or trading through Dial-n-trade (offline).
6. Customer service: Customer service team assists every consumer for any kind help related
to transactions, billing, demat, and other queries.
7. Investment advice: Sharekhan has a dedicated research team for fundamental and technical
researches. The analysts constantly track the pulse of the market and provide timely
investment advice to each consumer in the form of daily research tips and statements.

34

CHAPTER 6

RESEARCH
METHODOLOGY

35

6.1 Research Objectives


The primary objectives of the proposed study are:
1) Identify the specific factors that affect consumer attitudes towards share trading.
i) Identify the specific factors that affect consumer attitudes towards online share trading.
ii) Identify the specific factors that affect consumer attitudes towards offline share trading.
2) Comparison between online and offline share trading methods.
Secondary objective:
To learn about the working of share market.
The methodological approach to this study is descriptive, because we attempt to identify and explain
variables that exist in a given situation and to describe the relationship that exists between these
variables in order to provide a picture of a particular phenomenon, but not to ferret out cause-effect
relationship. The phenomena to be studied, consumer attitudes or behaviour, is not new in the field of
research but is of utmost importance for the companies to strategise their future steps by increasing
the understanding of the current consumer behaviour pattern in this age of electronic services era.
The first source of secondary data needed for the study was collected from the database of the
customers of Sharekhan Ltd. And other sources for the secondary data are internet, from where we
got the database of the people who were interested in stock trading.
The primary data was collected through questionnaire filling and by conducting telephonic
interviews. The questionnaire was administered to those people who are doing stock trading and
were selected in terms of their trading habits. The questionnaire is designed in structured form and
most of the questions were multiple choice questions. And some open ended questions were also
included in the questionnaire. Respondents were asked to complete 5 to 7 point Likert scale in some
questions.
The data collected was analysed to see if there are any demographic differences between the users of
online and offline trading in an effort to investigate the general belief that the younger. More
educated and the more affluent the population are more likely to adopt online share trading.
Also, all the factors were tried to be accommodated in the study which were expected to affect the
adoption of online trading. The factors being cost of adoption, security concerns, convenience, ease
of use, internet accessibility and speed, trust in ones broker.

36

A total of 119 respondents participated in this limited survey out of which 104 respondents were of
use. The objective was to gather a highly representative sample as the sample represents
geographically NCR and the respondents were chosen in terms of their trading habits.
The statistical tool for doing the analysis on the primary data is SPSS. As it is known statistics is a
tool to make decisions. Decisions can be based on certain scientific modus operandi and their
applications. Statistics has a very wide scope ranging from collection of data to classification and
analysis by very measures or application of certain methods and thereby decisions.

6.2 METHODOLOGY
6.2.1 COLLECTION OF DATA
For collecting the primary data from the users a questionnaire was designed. This
questionnaire was administered to the individuals who already are investing or trading in the
stock market. Sample questionnaire is attached in annexure.
6.2.2

SAMPLING METHODOLOGY

Sampling locations Delhi NCR.

Sampling units people investing in stock market.

Sampling techniques probability sampling (convenient sampling).

Sample size 100

Mode of survey Personalized interviews


- Questionnaire
- Telephonic interview

6.2.3

TIME FRAME - 2nd May to 30th June

6.3 Questionnaire Design

37

In our survey, answers were of interest not intrinsically but because there exists a relationship to
something we were supposed to measure. Our questionnaire was reliable and provided consistent
results. In comparable situations, and valid; answers correspond to what they are intended to
measure. It is always what they are intended to measure. It was always important to us to remember
that the answers are valuable to us to the extent that it can be shown to have a predictable
relationship to facts or subjective states that are of interest.
There were two main objectives in mind while designing the questionnaire:

To maximize the proportion of subjects answering our questionnaire that is, the response
rate.

To obtain accurate relevant information for our survey.

6.4 Designing a reliable instrument


One step toward ensuring consistent measurement was that each respondent in our sample was asked
the same set of questions. The questionnaire consisted of all sorts of questions including scaled
questions like likert scale, semantic differential scale and rank order scale. Our questionnaire was
having both open ended questions and closed ended questions including Dichotomous questions-in
which the respondents were asked to answer yes or no.
Multiple choices questions -in which the respondents have several options to choose from
Open ended questions -the respondents are asked to supply their own views without being
constrained by a fixed set of possible responses.
As the project revolves around the consumer attitudes towards share trading, so it was quiet
important that the questions should focus on the parameters on which the consumers selects a stock
brokers service, factors which are important to consumers for share trading like security, internet
speed and costs, ease of use, whether they prefer online trading or offline trading. Today a customer
can be approached with many mediators like television, paper, magazines and promotional
campaigns like outdoor canopys, mall interaction, brochure or pamphlets distribution, road side
hoardings. But all the strategies depend on what the consumer thinks and what are the needs and
wants of the consumer in this technological world.
Important - non-important items are very prevalent in our survey research field and therefore deserve
special attention. One can see that the task that respondents are given in such items is different from
that of placing themselves in an ordered category. The usual approach is to read a statement to
respondents and ask them if it is important or not according to them.
38

These responses will give a good perspective view that after so much technological advancement and
availability of new technology in the market, what do the investors of share market think about
various stock broker companies and what do they think when do share trading and where does a
loophole exists.
At last the respondents are been asked about their personal details like age and sex so as to see the
effect of these attributes on the consumer behaviour. How do consumers behave in a certain
environment around him? What affects their decisions most? Do family, friends, colleagues play any
role in the decision making of the consumer?
6.4.1 Pilot survey
Once the questionnaire was developed, a small pilot survey was being taken in to consideration so as
to remove the unwanted questions and add those questions that were earlier forgotten. The pilot
survey was being done with a sample size of 10. This really helped me to make my questionnaire
more effective and will definitely move my research result towards accuracy.

6.4.2 Survey Place


Since we surveyed only those people who are investing in the stock market so we had contacted the
respondents over the phone and. The rest were filled by the investors who are coming to the
Connaught place share trading shops and branches.

6.5 SAMPLING AND SAMPLE SIZE


6.5.1 Sampling
The sampling process consisted of 5 stages:
1) Definition of population of concern.
2) Specification of a sampling method.
3) Determine the sample size.
4) Implementing the sampling plan.
39

5) Sampling and data collecting.


6.5.2 Sampling Method
The method which is selected for the research is convenient sampling, all elements of the frame are
treated equally and it is not subdivided or partitioned. Furthermore each possible sample of a given
size (n) has a known and equal probability. Since there are each and every type of people coming to
Connaught place from every corner of Delhi NCR so there was an equal chance of any person to be
asked and surveyed. This implies that every element is selected independently of every other
element. The samples were drawn by a random procedure from a sampling frame. We can even say
that this method is equal to a lottery system in which names are placed in a container, the container is
shaken and the names of the winner are then drawn out in an unbiased manner. In the same way our
sample also consists of getting selected on an equal chance from the population.
The two benefits of doing our research project is that it is

Easily understood

Results projectable

6.5.3 Population
A population is the aggregate of all the elements that share a common set of characteristics and that
compromise the universe for the purposes of the marketing research problem. Information about
population parameters may be obtained by taking a consensus or a sample.
Typically, we seek to take action on the population which invests in share market and do trading in
shares, mutual funds and commodities. So according to our Industry guide Mr. Nitin Vats, in the
Whole Delhi NCR there are approximately 5 and half lakh traders and investors. Since our
population cannot be brought under one cluster and strata thus we were not confined to just one area.
Also our population was scattered all around the NCR so we tried to take the attributes and features
of the whole population by interviewing the investors who are coming in to the Connaught place and
Barakhamba branches. We even made calls to many traders by calling randomly and asking them if
they are willing to be a part of our survey. Thus, we conducted telephonic interviews also.
Sample

40

A sample is a subgroup of the population selected for participation in the study. Sample
characteristics, called statistics, are then used to make inferences about the population parameters.
The inferences that link the sample characteristics and population parameters are estimation
procedures and tests of hypothesis.
6.5.4 Sample Size
Sample size refers to the number of elements or subjects included in the study without any biasness.
6.5.5 Sample size calculation
z 2 x (p) x (1-p)
n=
c2

Where:
z = z value (1.96 for 95% confidence level)
p = percentage picking a choice, expressed as decimal
(.6 used for sample size needed)
c = confidence interval, expressed as decimal
(e.g., .1 = 10)
(1.96) 2 x (0.6) x (1 - 0.6)
n =
(0.1)2
=

92

41

42

Descriptive Statistics
Mean
mark the following
parameters according to
your preferences for
online share trading(1
being least preferred, 5
being most
preferred)-accessibility
mark the following
parameters according to
your preferences for
online share trading(1
being least preferred, 5
being most
preferred)-adoption of
new technology
mark the following
parameters according to
your preferences for
online share trading(1
being least preferred, 5
being most
preferred)-costs
mark the following
parameters according to
your preferences for
online share trading(1
being least preferred, 5
being most
preferred)-trust in broker
mark the following
parameters according to
your preferences for
online share trading(1
being least preferred, 5
being most
preferred)-security
mark the following
parameters according to
your preferences for
online share trading(1
being least preferred, 5
being most
preferred)-convenience
mark the following
parameters according to
your preferences for
online share trading(1
being least preferred, 5
being most
preferred)-ease of use

Std. Deviation

Analysis N

Missing N

3.11

1.563

100

3.46

1.167

100

3.42

1.037

100

3.85

.936

100

4.09

1.181

100

3.78

1.069

100

3.75

1.158

100

Table.
7.1

Interpretation
43

1. In this descriptive statistics matrix it can be seen that mean of the accessibility is around 3.
So, majority of respondents are opting for OK option. That is without it also there is no
problem. And it has maximum of Std. Deviation which suggests that users are either not
preferring or preferring it highly.
2. Mean for adoption of new technology and costs is between 3 and 3.5. The Std. Deviation
is around 1. So, people treat it as an important parameter.
3. Trust in broker and security are rated very high i.e. around 4. So, majority of people are
rating them as preferred parameters. Also, here Std. Deviation is lowest.
4. Convenience and ease of use is also rated high, i.e. around 3.75 (mean). So these are also
important factor. But Deviation is around 1. So we can say that respondents are moving
towards most preferred.

7.2 Correlation Matrix(a)


This output shows an abridged version of the R-matrix. The top half of this table contains
the Pearson correlation coefficient between all pairs of questions whereas the bottom half

44

contains the one-tailed significance of these coefficients. We can use this correlation matrix to check
the pattern of relationships. Firstly, looking at the significance and values for any variable for which
the majority of values are greater than 0.05 and then scanning the correlation coefficients
themselves (looking for any greater than 0.9.), it was found that there are not many variables within
the specified range. So the data is not singular and no need to eliminate variable.
For this data, its value is 0.125 which is greater than the necessary value of 0.00001. Therefore,
multi-co linearity is not a problem for these data. To sum up, all questions in the SAQ correlate
fairly well and none of the correlation coefficients are particularly large; therefore, there is no need
to consider eliminating of any questions at this stage.

Correlatio
n

X1

X2

X3

X4

X5

X6

X7

X1

1.000

.625

.295

-.023

.099

.516

.479

X2

.625

1.000

.056

-.075

.050

.406

.400

X3

.295

.056

1.000

.159

.027

.148

.021

X4

-.023

-.075

.159

1.000

.487

.078

.012

X5

.099

.050

.027

.487

1.000

-.064

-.050

X6

.516

.406

.148

.078

-.064

1.000

.698

X7

.479

.400

.021

.012

-.050

.698

1.000

a Determinant = .125

Table. 7.2

where,
X1 - mark the following parameters according to your preferences for online share trading (1 being
least preferred, 5 being most preferred) - accessibility
X2 - mark the following parameters according to your preferences for online share trading (1 being
least preferred, 5 being most preferred) - adoption of new technology
X3 mark the following parameters according to your preferences for online share trading (1 being
least preferred, 5 being most preferred) - costs
X4 mark the following parameters according to your preferences for online share trading (1 being
least preferred, 5 being most preferred) - trust in broker
X5 mark the following parameters according to your preferences for online share trading (1 being
least preferred, 5 being most preferred) - security
45

X6 mark the following parameters according to your preferences for online share trading (1 being
least preferred, 5 being most preferred) - convenience
X7 mark the following parameters according to your preferences for online share trading (1 being
least preferred, 5 being most preferred) - ease of use

Findings- There is a strong correlation between adoption of new technology and accessibility (.625),
ease of use and convenience (.698), convenience and accessibility (.516).

KMO and Bartlett's Testa


Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
Bartlett's Test of
Sphericity

Approx. Chi-Square
df
Sig.

.620
199.405
21
.000

a. Based on correlations
Table. 7.3

7.3 KAISER-MEYER-OLKIN MEASURE of sampling adequacy and BARTLETT'S TEST of


sphericity:
The KMO statistic varies between 0 and 1. A value of 0 indicates that the sum of partial correlations
is large relative to the sum of correlations, indicating diffusion in the pattern of correlations (hence,
factor analysis is likely to be inappropriate). A value close to 1 indicates that patterns of correlations
are relatively compact and so factor analysis should yield distinct and reliable factors. Kaiser (1974)
46

recommends accepting values greater than 0.5 as acceptable (values below this should lead you to
either collect more data or rethink which variables to include).So, factor analysis is appropriate for
these data.
Bartlett's measure tests the null hypothesis that the original correlation matrix is an identity matrix.
For factor analysis to work we need some relationships between variables and if the R-matrix were
an identity matrix then all correlation coefficients would be zero. Therefore, we want this test to be
significant (i.e. have a significance value less than 0.05). A significant test tells us that the R-matrix
is not an identity matrix; therefore, there are some relationships between the variables we hope to
include in the analysis. For these data, Bartlett's test is highly significant (p < 0.001), and therefore
factor analysis is appropriate.

7.4 Total Variance


Compone
nt

1
2

Initial Eigen values


% of
Varianc Cumulative
Total
e
%
2.610 37.281
37.281
1.527 21.808
59.089

.997

14.246

73.335

.844

12.051

85.386

.443

6.323

91.709

.297
.283

4.245
4.046

95.954
100.000

Extraction Sums of Squared


Loadings
% of
Varianc Cumulative
Total
e
%
2.610 37.281
37.281
1.527 21.808
59.089

Rotation Sums of Squared


Loadings
% of
Varianc Cumulati
Total
e
ve %
2.599 37.126
37.126
1.537 21.962
59.089

Extraction Method: Principal Component Analysis.

Table. 7.4
This matrix lists the Eigen values associated with each linear component (factor) before extraction,
after extraction and after rotation. Before extraction, SPSS has identified 7 linear components
within the data set (we know that there should be as many eigenvectors as there are variables and so
there will be as many factors as variables). The Eigen values associated with each factor represent
the variance explained by that particular linear component and SPSS also displays the Eigen value
in terms of the percentage of variance explained (so, factor 1 explains 37.281% of total variance). It
47

should be clear that the first few factors explain relatively large amounts of variance (especially
factor 1) whereas subsequent factors explain only small amounts of variance. SPSS then extracts all
factors with Eigen values greater than 1, which leaves us with two factors. The Eigen values
associated with these factors are again displayed (and the percentage of variance explained) in the
columns labelled Extraction Sums of Squared Loadings. The values in this part of the table are the
same as the values before extraction, except that the values for the discarded factors are ignored
(hence, the table is blank after the second factor). In the final part of the table (labelled Rotation
Sums of Squared Loadings), the Eigen values of the factors after rotation are displayed. Rotation
has the effect of optimizing the factor structure and one consequence for these data is that the
relative importance of the two factors is equalized. Before rotation, factor 1 accounted for
considerably more variance than the remaining one.

7.5 Communalities
Communalities
Initial

mark the following parameters according to


your preferences for online share trading(1
being least preferred, 5 being most preferred)accessibility

Extraction

1.000

.700

mark the following parameters according to


your preferences for online share trading(1
being least preferred, 5 being most preferred)adoption of new technology

1.000

.547

mark the following parameters according to


your preferences for online share trading(1
being least preferred, 5 being most preferred)costs

1.000

.165

mark the following parameters according to


your preferences for online share trading(1
being least preferred, 5 being most preferred)trust in broker

1.000

.731

48

mark the following parameters according to


your preferences for online share trading(1
being least preferred, 5 being most preferred)security

1.000

.682

mark the following parameters according to


your preferences for online share trading(1
being least preferred, 5 being most preferred)convenience

1.000

.676

1.000

.637

mark the following parameters according to


your preferences for online share trading(1
being least preferred, 5 being most preferred)ease of use
Extraction Method: Principal Component Analysis.

Table 7.5

This shows the table of communalities before and after extraction. Principal component analysis
works on the initial assumption that all variance is common; therefore, before extraction the
communalities are all 1. The communalities in the column labeled Extraction reflect the common
variance in the data structure. So, for example, we can say that 70% of the variance associated with
parameter 1 is common, or shared variance. Another way to look at these communalities is in terms
of the proportion of variance explained by the underlying factors. After extraction some of the
factors are discarded and so some information is lost. The amount of variance in each variable that
can be explained by the retained factors is represented by the communalities after extraction.

49

7.6 Component Matrix(a)


Component
1

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-accessibility

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-convenience

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-ease of use

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-adoption of
new technology

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-trust in broker

50

.835

.821

.789

.736

.854

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-security

.825

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-costs
Extraction Method: Principal Component Analysis.
a 2 components extracted.

.304

Table 7.6

This output also shows the component matrix before rotation. This matrix contains the loadings of
each variable onto each factor. By default SPSS displays all loadings; however, we requested that
all loadings less than 0.3 be suppressed in the output and so there are blank spaces for many of the
loadings. This matrix is not particularly important for interpretation.
At this stage SPSS has extracted two factors. One important decision is the number of factors to
extract. We can also use the scree plot, which we asked SPSS to produce. The scree plot is shown
below with a thunderbolt indicating the point of inflexion on the curve. This curve is difficult to
interpret because the curve begins to tail off after three factors, but there is another drop after four
factors before a stable plateau is reached. Therefore, we could probably justify retaining either two
or four factors. Given the large sample, it is probably safe to assume Kaiser's criterion; however,
you could rerun the analysis specifying that SPSS extract only two factors and compare the results.

7.7 Scree Plot

Eigenvalue

0
1

Component Number

Fig. 7. 1
51

7.8 Rotated Component Matrix(a)


Component
1

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-accessibility

.825

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-convenience

.821

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-ease of use

.797

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-adoption of new
technology

.740

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-trust in broker

.854

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-security

.824

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-costs

.329

Extraction Method: Principal Component Analysis.

52

Table 7.7

Rotation Method: Varimax with Kaiser Normalization.


a Rotation converged in 3 iterations.

This output shows the rotated component matrix (also called the rotated factor matrix in factor
analysis) which is a matrix of the factor loadings for each variable onto each factor. This matrix
contains the same information as the component matrix in SPSS previous output except that it is
calculated after rotation. There are several things to consider about the format of this matrix. First,
factor loadings less than 0.3 have not been displayed because we asked for these loadings to be
suppressed. Second, the variables are listed in the order of size of their factor loadings because we
asked for the output to be Sorted by size. Finally, for all other parts of the output I suppressed the
variable labels (for reasons of space) but for this matrix I have allowed the variable labels to be
printed to aid interpretation.
Compare this matrix with the unrotated solution. Before rotation, most variables loaded highly onto
the first factor and the remaining factors didn't really get a look in. However, the rotation of the
factor structure has clarified things considerably: there are two factors and variables load very
highly onto only one factor. The suppression of loadings less than 0.3 and ordering variables by
loading size also makes interpretation considerably easier.
Interpretation
The parameters that load highly on factor 1 seem to all relate to the common factor thats been
named as Reliability. And the parameters that load highly on factor 2 seem to all relate to the
common factor thats been named as Ease of transactions

53

Fig. 8.1
InterpretationAs it can be seen that 74% of the sample are males while only 26% were females indicating that the
attitude of females towards share trading is not positive and they prefer stay away from the stock
market. The reason may be, females dont want to take much of risk and prefer to invest in
traditional way i.e. bank deposits.

Fig. 8.2

Fig. 8.3

54

InterpretationAs it can be seen that 48% of the traders do online trading and 27% do both online and offline
trading. So, it can be said that the trend is towards online trading and online traders are in the age
group of 18-40 who do online trading i.e. approximately 67% of the respondents. The attitude of
traders is very much upbeat towards online share trading. Young generation prefers doing online
transactions and hence this mode of trading should be promoted more.

Fig. 8.4
InterpretationAs we can see that 52% of the share traders confirm with their brokers after the order is executed, it
shows that people still dont believe technology that much and ask broker about their order. While
48% of the share traders dont call their brokers after the call is executed. This shows that the there is
no significant difference between people who confirm and who do not. But the attitude is like people
are still not that comfortable with the technology and they dont believe it 100%. This needs to be
changed for the better future and for that companies need to create awareness about the technology
behind online trading accentuating the advantages of doing trading online and how their transactions
are secured. Then only people will go for online trading.

what is your gender? * how do you utilize your savings?


how do you utilize your savings?

what is your

male

equties
and MF
43

bank deposits
19

real estate
7

55

Total
luxury items
like gold
5

74

gender?
Total

female

14

26

47

33

13

100

Interpretation Here it is very clear that men are more into equities and mutual funds than bank
deposits because they can use their money more effectively than just keeping it into bank deposits.
Women like to deposits their money into banks and are more fond of luxurious items. Real estate
option is very less in both cases as it requires a huge amount of investment in initial stages.

what is your gender? * mark the following parameters according to your preferences for online
share trading(1 being least preferred, 5 being most preferred) - accessibility

what is
your

male

mark the following parameters according to your


preferences for online share trading(1 being least
preferred, 5 being most preferred)-accessibility
not
least
most
preferred preferred
ok
preferred preferred
25
12
7
12
18
56

Total

74

gender?
female
Total

1
26

0
12

6
13

11
23

8
26

26
100

Interpretation Accessibility is not so important factor according to graph for either of them but
few males want to have a little of accessibility.

what is your gender? * mark the following parameters according to your preferences for online
share trading(1 being least preferred, 5 being most preferred) - adoption of new technology
mark the following parameters according to your
preferences for online share trading(1 being least
preferred, 5 being most preferred)-adoption of new
technology
not
least
most
preferred preferred
ok
preferred preferred
what is
your
gender?

Total

male
female

16

25

15

15

74

12

26

57

Total

17

28

27

23

100

Interpretation according to the survey it can be said that adoption of new technology is an
important factor for all as it is related with the trust and ease of use.
what is your gender? * mark the following parameters according to your preferences for online
share trading(1 being least preferred, 5 being most preferred) - cost
mark the following parameters according to your
preferences for online share trading(1 being least
preferred, 5 being most preferred)-cost
not
least
most
preferred preferred
ok
preferred preferred
what is
your
gender?

male
female

Total

Total

30

25

12

74

3
4

8
14

3
33

9
34

3
15

26
100

58

Interpretation cost is factor for online share trading which most of the men keep in their mind but
they dont give it much consideration as all of them know that for online transactions costs are
relatively lower than offline trading.
what is your gender? * mark the following parameters according to your preferences for online
share trading(1 being least preferred, 5 being most preferred) - trust in broker
mark the following parameters according to
your preferences for online share trading(1
being least preferred, 5 being most
preferred)-trust in broker
least
most
preferred
ok
preferred preferred
what is
your
gender?

male
female

Total

Total

18

33

18

74

4
9

7
25

5
38

10
28

26
100

59

Interpretation rust in broker is an important factor as approximately 70% people think that for
online trading trust is very important.
what is your gender? * mark the following parameters according to your preferences for online
share trading(1 being least preferred, 5 being most preferred) - security
mark the following parameters according to your
preferences for online share trading(1 being least
preferred, 5 being most preferred)-security
not
least
most
preferred preferred
ok
preferred preferred
what is
your
gender?

male
female

Total

Total

22

38

74

0
8

0
2

7
11

9
31

10
48

26
100

60

Interpretation security is the most important factor for all as online trading doesnt requires any
sort of checking and thus one easily use others money if there is any sort of security lapse. 80% have
said that security is important factor for them.
what is your gender? * mark the following parameters according to your preferences for online
share trading (1 being least preferred, 5 being most preferred) - convenience
mark the following parameters according to your
preferences for online share trading(1 being least
preferred, 5 being most preferred)-convenience
least
preferred
what is your
gender?

male
female

Total

ok

11

preferred
28

Total

most
preferred

22

13

74

21

26

14

28

24

34

100

61

Interpretation hence it is very much clear that convenience and ease of use is the most preferred
factor for the females as more than 90% have agreed on it.

what is your gender? * rank the following parameters according to your preferences for your
broker company from 1 to 6 - ease of use
rank the following parameters according to your preferences for your broker
company from 1 to 6-ease of use
most
important
what is your
gender?

male
female

Total

19

important

moderate

cannot
say

13

less
important

least
important

22

Total

74

12

26

31

15

15

24

100

62

Interpretation thus while selecting any stock broking company ease of use is very important
factor as they want to do share trading in an easy manner.

what is your gender? * rank the following parameters according to your preferences for your
broker company from 1 to 6 - phone trading
rank the following parameters according to your preferences for your broker
company from 1 to 6-phone trading
most
important
what is your
gender?

male
female

Total

important

moderate

cannot
say

less
important

Total

least
important

41

74

26

10

11

11

11

48

100

63

Interpretation in the age of new technology and fast world no one wants to go for offline trading.
They want to go for online trading and hence companies should make online trading easy and
effective. Hence phone trading is almost getting erased but still base cannot be forgotten and there
are people who at times go for offline trading.

what is your gender? * rank the following parameters according to your preferences for your
broker company from 1 to 6 - security
rank the following parameters according to your preferences for your broker
company from 1 to 6-security
most
important
what is your
gender?

male
female

Total

important

moderate

cannot
say

less
important

Total

least
important

25

15

11

13

74

10

26

31

20

21

15

100

64

Interpretation security is the most important factor while selecting any stock broking company.
They should have the transactions as secure as possible and thus they should give it due importance.

what is your gender? * in case of volatility in the stock market i would

in case of volatility in the stock market i would


if my
investments
immediately
if after a year
have declined
sell any
there is a
in value after a
investment that
decline in the
year, i will
looses money
value,i will pull
divert it
on daily or
out my
towards other
not invest
weekly basis
investments
avenues
further
what is your
gender?

male
female

Total

14

12

30

18

Total

74

26

20

20

36

24

100

65

Interpretation everyone wants to increase their wealth and hence in volatility period men mostly
prefer to divert it to other avenues and hence they are more risk takers but women prefer to pull out
their investments and wont invest further, hence they are less risk takers.

66

what is your age? * which stock broker's service do you avail?


which stock broker's service do you avail?

Total

what is
Your

18-30
30-40

reliance
money
1
2

age?

40-50

15

50 and
above

18

14

18

12

31

11

100

Total

icici
direct
2
6

religare
7
4

indiab
ulls
2
5

india
infoline
4
5

sharekhan
ltd
12
11

others
3
3

31
36

Interpretation Sharekhan has become the more preferred brand now as compared to earlier days.
Religare and ICICI Direct are the closed competitors. Most young age and middle age people prefer
to use Sharekhan services more than others because of convenience and easy to use services. Also
Sharekhan has more customers which do online trading than offline trading. Thus, it can be said that
Sharekhan has become a brand and it should focus on increasing its market share by giving more
effective services.
what is your age? * how do you invest in stock market?
how do you invest in stock market?

67

Total

online
what is
your
age?

offline

portfolio
management

both

18-30
30-40

23
14

1
8

6
11

1
3

31
36

40-50

15

50 and above
Total

18

48

13

27

12

100

Interpretation with the advancement of technology young age and middle age are more inclined
towards online share trading. They want to do it the hassle free way as they dont want to waste their
money by using old and slow ways of offline trading. Old age people also prefer online trading but
they also go for PMS as they are more experienced and they know the market very well and dont
want to take any chances with their money.
what is your age? * how do you utilize your savings?
how do you utilize your savings?

what is
your

18-30
30-40

equties
and MF
14
16

bank deposits
13
12

real estate
0
3

68

Total
luxury items
like gold
4
5

31
36

age?

40-50

15

50 and above

18

47

33

13

100

Total

Interpretation As everyone wants to increase their money as fast as possible and equities and
mutual funds are best methods available if one plays safe with them. No doubt they are risky but they
have the capability to increase the money invested in very short span of time. Also people prefer to
put some part of their money into bank deposits for emergencies and day-to-day needs. Investment in
real estate is not preferred much as it requires a good amount of initial investment which is not
possible for everyone.
what is your age? * what objectives do you keep in mind before investing?
what objectives do you keep in mind before
investing?
Total
protection
portfolio
retirement
or
diversificati
wealth
planning emergency
on
accrual
what
18-30
0
14
3
14
31
is
30-40
2
15
9
10
36
your
40-50
1
5
6
3
15
69

age?

50 and
above

Total

18

36

22

36

100

Interpretation the basic objectives which people do in keep mind while investing are protection or
emergency and wealth accrual. As it is perceived that young generation doesnt think much about
future but it turned out to be false. They are very keen for the protection or emergency needs and
hence they do keep this in mind while investing and keep some part of their earnings for this. But
they are also very much keen to increase their wealth. Middle age people mostly keep in mind the
protection or emergencies needs while old age people go for wealth accrual more than protection or
emergency.
what is your age? * what were the sources from where you got the information about the stock
broker to invest in the stock market ?
what were the sources from where you got the information
about the stock broker to invest in the stock market
business
magazines
and news
friends or
internet and
tv and radio
papers
colleagues
websites
what is
your
age?

Total

18-30
30-40

11

12

31

13

36

70

40-50

15

50 and above

18

20

30

36

14

100

Total

Interpretation Friends and colleagues are the most sought after sources for the information about
various stock broker companies in all the age group. Thus, word of mouth publicity is a great tool to
make a brand and it is the fastest n cheapest source of advertising. Business magazines and
newspaper are also not far behind as a source as they also give us a lot information about various
stock broker companies and about the stock market situation.
what is your age? * please rate your appetite of risk taking on a scale of 1 to 5 (moving
horizontally from low risk taking to high risk taking)
please rate your appetite of risk taking on a scale of 1 to 5(moving
horizontally from low risk taking to high risk taking)
what is
your

18-30
30-40

very low risk


3
9

age?

40-50
50 and above

Total

low risk
8
8

moderate
7
11

18

25

71

high

Total

8
6

very high
5
2

31
36

15

18

30

18

100

Interpretation As perceived young generations are very high risk takers. They want to earn money
very fast. Middle aged people are moderate risk takers as they are at an age where they have to keep
many things in their mind and hence they dont take much risk. Old age people are low risk takers as
they dont want to lose their money and also they want to accrue their wealth instead of losing it.
what is your net income? * please rate your appetite of risk taking on a scale of 1 to 5 (moving
horizontally from low risk taking to high risk taking)
please rate your appetite of risk taking on a scale of 1 to
5(moving horizontally from low risk taking to high risk
taking)
very low
6
1

low risk
2
0

moderate
0
3

what is your
net

under 1.5 lakhs


1.5 to 3 lakhs

income?

3 to 5 lakhs

5 to 10 lakhs

12

10 lakhs and
above

2
18

Total

Total

very
high

high
3
3

2
1

13
8

19

35

35

25

30

18

100

72

Interpretation Income is a very important for risk taking. As perceived it is general consumer
behaviour that low income level people are very low risk takers. With income level above 3 lakh the
risk taking capability increases as they want to earn money as fast as possible. Risk taking capability
is less in income level from 5 to 10 lakh as they are more inclined towards portfolio diversification
instead of just investing in equities.
what is your net income? * what objectives do you keep in mind before investing?

what objectives do you keep in mind before investing?

what is your
net
income?

Total

under 1.5 lakhs


1.5 to 3 lakhs
3 to 5 lakhs
5 to 10 lakhs
10 lakhs and
above

Total

retirement
planning
0
0

protection or
emergency
10
4

protfolio
diversification
1
0

wealth
accrual
2
4

13
8

11

10

12

35

10

14

35

36

22

36

100

73

Interpretation investments and income level are directly related. Low income level people keep in
mind for protection for their family or any emergency needs. Middle income level people are more
extroverts in this regard. They keep everything in their mind. They keep portfolio diversification,
wealth accrual and protection or emergency needs in their minds as objectives while investing. Upper
level income people keep wealth accrual as their main objective while investing as they want to earn
more money.
what is your age? * do promotional schemes affect your share trading?
do promotional schemes affect your
share trading?
yes
20

no
11

31

23

13

36

40-50

11

15

50 and above

11

18

65

35

100

what is
your

18-30
30-40

age?
Total

Total

74

Interpretation Promotional schemes do have an effect on consumer attitudes towards share


trading. If the promotional schemes are very attractive then they are bound to attract the existing
customers and also the new customers are also willing to test the various services. So companies
should come up with new and attractive promotional schemes regularly so that they can increase
their customer base.
How do you invest in stock market? * mark the following parameters according to your
preferences for online share trading(1 being least preferred, 5 being most preferred)
-accessibility
mark the following parameters according to your
preferences for online share trading(1 being least preferred,
5 being most preferred)-accessibility
not
preferred
12
3

least
preferred
8
1

Total

1
2

preferred
9
2

most
preferred
18
5

48
13

ok

how do you
invest

Online
Offline

in

Both

10

27

stock
market?

portfolio
management

12

26

12

13

23

26

100

Total

75

B
a
rC
h
a
rt b
m
a
r
k
t
h
e
f
o
l
w
i
n
g
p
r
s
a
c
o
r
d
to
y
u
p
e
e
s
f
o
r
le
n
ig
e
t
(
1
a
p
,
5
m
o
f
)
c
in
lo
s
b
y
tp
re
fre
d

C
ount

2
0
1
5
l
e
a
s
t
p
r
e
f
r
e
d
o
k
p
r
f
d
m
s
t
p
r
e
f
r
e
d
1
0
1
8
1
2
1
0
5
9
8
7
6
5
5
5
3
2
2
2
2
1
1
1
1
0o
n
lieo
flin
eb
o
thm
ta
p
fn
o
r
lg
ie
o
m
n
t

h
o
w
d
o
y
u
in
v
e
s
tin
s
to
c
k
m
a
rk
e
t?

Interpretation - It can be seen that people who do offline trading thinks that accessibility is the most
preferred parameter and this trend is followed by online traders also. The reason for the same can be
that people wants internet availability i.e. they can access web site anytime. Hence speed of the
server should be good and always there should be load balancing, so that web site can be accessed
anytime.
It is obvious that offline traders want share shops to be near their locality for easy accessibility.
The users who have opted for both the options prefer share shops or other medium through which
they can access the information about their trading.
And last are the HNI- portfolio management service clients. The response is mixed one. 50% wants
accessibility and 50% dont need that. May be they can access it through online terminals at the time
when they are able to access the web site. Also, a client going for the PMS dont need to stick to the
terminal neither they want to call or go to the share shops every time (the reason being lock in period
is 6 months for this investment). But those people who have rated accessibility towards highly
preferable parameter are the ones who want to know about their portfolio during the lock in period
(reason being any volatility in the market or anxiety or any other factor).

76

So in all consumer attitudes towards accessibility is much more upbeat. They prefer accessibility.
Reason will be computer awareness and people still dont trust technology fully. So would rather go
themselves.

How do you invest in stock market? * mark the following parameters according to your
preferences for online share trading(1 being least preferred, 5 being most preferred) - adoption
of new technology
mark the following parameters according to your preferences
for online share trading(1 being least preferred, 5 being most
preferred)-adoption of new technology
not
preferred

Total

how do you
invest

online
offline

0
1

least
preferred
13
0

in

both

27

stock
market?

portfolio
management

12

17

28

27

23

100

Total

10
5

preferred
13
4

most
preferred
12
3

48
13

ok

77

B
a
rC
h
a
rt b
m
a
r
k
t
h
e
f
o
l
w
i
n
g
r
s
a
c
o
r
d
tp
o
y
u
p
e
e
s
f
o
r
le
n
ia
e
s
t
(
1
g
a
p
,
5
m
o
f
)
d
te
ic
n
o
n
w
h
lg
y

C
ount

.1
1
2
5
0
.7
n
o
t
p
r
e
f
r
e
d
l
e
a
s
k
.5
5
p
r
f
r
e
d
m
o
s
t
p
f
r
e
d
1
3
1
3
1
2
1
0
.2
0
9
7
6
5
.0
5
4
4
4
3
3
2
2
1
1
1
.o
n
lie
o
f
l
i
n
e
b
o
t
h
p
o
r
t
f
l
i
o
m
a
n
g
e
m
n
t
h
o
w
d
o
y
u
in
v
e
s
tin
s
to
c
k
m
a
rk
e
t?

Interpretation - Here adoption of new technology is very much preferred by the users who are
online and those who are using both mediums. The reason can be emergence of new more adaptable
and more secured technologies in the market. People want secured transactions and if older
technology is giving them enough security then they will not mind adoption of new technology. Here
one more starkling observation is that not even a single user has chosen least preferred option.
Those who use both options, out of them around 33% people dont care, either is fine.
For Portfolio management service people dont want to adopt new technology.
So in all, it can be said that those who use online trading prefer adapting to new technology. And few
offline traders want to adapt to new technology may be they are ready for doing online trading.
Jist may be that proper awareness about the online trading, with all benefits and doubts about
security issues, should be created.

78

How do you invest in stock market? * mark the following parameters according to your
preferences for online share trading(1 being least preferred, 5 being most preferred)-trust in
broker
mark the following parameters according to
your preferences for online share trading(1
being least preferred, 5 being most preferred)trust in broker
least
preferred
7
0

Total

11
3

preferred
23
3

most
preferred
7
7

48
13

ok

how do you
invest

online
offline

in

both

11

27

stock
market?

portfolio
management

12

25

38

28

100

Total

79

B
a
rC
h
a
rt b
m
a
r
k
t
h
e
f
o
l
w
i
n
g
p
r
s
a
c
o
r
d
to
y
u
p
e
e
s
f
o
r
n
lig
e
s
t
(
1
e
a
p
f
,
5
m
o
)
tru
tle
ia
n
b
r
o
k
e
r
s
tp
re
fre
d

C
ount

2
5
2
0
o
k
p
r
e
f
r
e
d
1
5
m
s
t
p
f
r
e
d
2
3
1
0
1
1
5
9
7
7
7
7
7
3
3
3
2
0o
n
lieo
flin
eb
o
thm
p
o
rtg
fe
lm
io
a
n
n
t

h
o
w
d
o
y
u
in
v
e
s
tin
s
to
c
k
m
a
rk
e
t?

Interpretation - Here in this case it can be interpreted that trust in broker is the most important
parameter. And no matter whether a client is offline or online or PMS, he wants his broker to be
trustworthy.
So consumer attitude towards share trading builds on trust. Many people still thinks share market to
be a gamble. But if there is someone who can gain trust of people then we can see many people
going for stock trading.
How do you invest in stock market? * mark the following parameters according to your
preferences for online share trading(1 being least preferred, 5 being most preferred) -cost
mark the following parameters according to your
preferences for online share trading(1 being least
preferred, 5 being most preferred)-cost

Total

not
preferred
1
1

least
preferred
5
0

ok
17
2

preferred
15
9

most
preferred
10
1

48
13

how do you
invest

online
offline

in

both

27

stock
market?

portfolio
management

12

14

33

34

15

100

Total

80

B
a
rC
h
a
rt b
m
a
r
k
t
h
e
f
o
l
w
i
n
g
p
r
s
a
c
o
r
d
to
y
u
p
e
e
s
f
o
r
le
n
ig
e
s
t
(
1
a
p
f
,
5
m
o
)
c
s
n
o
tp
re
fre
d

Count

2
0
1
5
l
e
a
s
t
p
r
e
f
r
e
d
o
k
p
r
f
e
d
m
s
t
p
r
e
f
r
e
d
1
0
1
7
1
5
1
0
5
9
9
9
5
5
5
4
4
2
2
1
1
1
01o
n
lieo
flin
eb
o
thm
ta
p
fn
o
r
lg
ie
o
m
n
t

h
o
w
d
o
y
u
in
v
e
s
tin
s
to
c
k
m
a
rk
e
t?

Interpretation - It can be said from the figures that PMS clients and online clients dont consider
cost as an important factor for online trading. What they want is good service and if profits are good
then they dont mind giving extra penny. But the trend is exactly opposite in case of an offline trader.
Cost is the most preferred factor. Consumer perception is changing that costs are the only things that
matters. Brand loyalty is an important factor here.
How do you invest in stock market? * mark the following parameters according to your
preferences for online share trading(1 being least preferred, 5 being most preferred)-security
mark the following parameters according to your
preferences for online share trading(1 being least
preferred, 5 being most preferred)-security
not
preferred
7
1

least
preferred
1
0

Total

6
1

preferred
15
1

most
preferred
19
10

48
13

ok

how do you
invest

online
offline

in

both

11

12

27

stock
market?

portfolio
management

12

11

31

48

100

Total

81

B
a
rC
h
a
rt b
m
a
r
k
t
h
e
f
o
l
w
i
n
g
p
r
s
a
c
r
d
to
y
u
p
e
s
f
o
r
le
n
ig
e
t
(
1
,
5
m
o
p
f
)
inotprefry
s
c
u
r
e
d

C
ount

2
0
1
5
l
e
a
s
t
p
r
e
f
r
e
d
o
k
p
r
f
d
m
s
t
p
r
e
f
r
e
d
1
0
1
9
1
5
1
2
1
1
0
5
7
7
6
4
3
11
1
1
1
1
0o
n
lieo
flin
eb
o
thm
ra
p
tn
o
fe
lm
io
g
n
t

h
o
w
d
o
y
u
in
v
e
s
tin
s
to
c
k
m
a
rk
e
t?

Interpretation - Here it can be interpreted that security is the most preferred parameter for online
trading. The reason is obvious that anyone who will give money to a broker will demand that there is
enough security that their money is safe and system should be such that is cant be spoofed and it
should not be hacked easily.
since when are you investing? * please rate your appetite of risk taking on a scale of 1 to 5
(moving horizontally from low risk taking to high risk taking)
please rate your appetite of risk taking on a scale of 1
to 5(moving horizontally from low risk taking to high
risk taking)

since when
are you
Investing?

Total

very low

low risk

3 months to 1 year

1 year to 5 years

5 years to 15 years
more than15 years

less than 3 months

moderate

high

Total

very high

22

17

40

20

12

18

25

30

18

100

82

B
a
rC
h
a
r
t fa
lr(o
p
e
a
s
e
r
a
t
e
y
o
u
r
tm
in
o
f
i
s
k
t
a
k
i
n
g
c
l
o
f
1
5
v
n
g
h
z
l
y
o
w
t
o
h
rv
s
k
t
a
n
g
)
e
ry
o
w
ris
k
lo
w
ils
k

Count

2
0
1
5
m
o
d
e
r
a
t
e
h
i
g
v
e
r
y
h
i
g
1
0
1
7
5
9
9
7
6
5
5
5
5
4
4
3
3
3
3
2
2
2
2
2
1
1
0
le
s
tm
h
a
n
3
3
m
o
n
t
h
s
t
o
1
1
y
e
a
r
t
o
5
5
y
e
a
r
s
t
o
1
5
m
o
r
e
t
h
a
n
1
5
o
sy
e
a
rs y
rs

s
in
c
e
w
h
e
n
a
r
e
y
o
u
in
v
e
s
tin
g
?

Interpretation - Here the trend is that people who are trading for 1 to 5 years know that they dont
need to take high risks so they opt for moderate risk. And here also there are people who are willing
to take more risk as they think they are experienced enough to sniff the market forces. For them
higher the risk, higher is the return. And last the people who are new to the world of stock trading,
they will not take any risk. They will play safe. Their perception is that they dont want to take any
whimsical decision. Just take shares and may be forget about them, or when market is too low then
buy shares and when it reaches some high then sell or when they think they have enough of profits
then they will sell.
since when are you investing? * in case of volatility in the stock market i would

in case of volatility in the stock market i would


if my
investments
immediately
have
sell any
if after a year
declined in
investment
there is a
value after a
that looses
decline in the
year, i will
money on
value,i will
divert it
not
daily or
pull out my
towards other
invest
weekly basis investments
avenues
further
since when
are you
investing?

Total

less than 3
months

3 months to 1
year

10

22

83

1 year to 5 years
5 years to 15
years

more than15
years

B
a
r
C
h
a
r
t in
c
a
s
e
o
f
v
o
l
a
t
i
y
i
n
tib
h
t
c
k
m
r
k
e
w
u
d
m
e
d
i
a
t
e
l
y
s
e
l
a
n
y
n
v
s
t
m
n
h
a
t
o
s
e
o
y
o
d
i
y
r
w
k
l
y
iid
a
fe
e
r
a
y
e
r
e
i
a
c
ln
in
th
v
a
lu
,i
13

17

40

20

12

20

36

24

100

2
0
1
5
p
u
l
o
u
t
m
y
i
n
v
e
s
t
m
e
n
t
s
i
f
m
y
i
n
v
e
s
t
m
h
a
v
d
e
c
d
a
l
u
f
r
a
y
a
r
,
w
i
l
d
r
i
t
o
w
o
h
e
v
e
n
u
e
s
1
0
n
i
n
v
e
s
t
f
u
t
h
1
7
1
3
1
0
5
9
7
6
6
4
4
4
4
3
3
3
2
2
1
1
1
0
le
s
th
a
n
3
3
m
o
n
th
s
1
1
y
e
a
rts
o
5
5
y
e
a
rs
to
1
5
m
o
ry
e
th
n
1
5
m
o
s
y
e
a
rto
ra
s

Count

Total

20

s
in
c
e
w
h
e
n
a
r
e
y
o
u
in
v
e
s
tin
g
?

Interpretation - It can be interpreted that the people who are relatively new to investing in the stock
market (i.e. less than 1 year) are not going to take any risk if there is volatility in the market. They
will pull out their investments. Their attitude is to earn as quickly as possible and if they have started
losing then they will pull out their investments and will try to minimize their loss.
But those who are older player are willing to take more risks and good percentage of people under
the category of 1 to 15 years will divert their investments towards other avenues. Also, in the
category of 1 to 5 years, people are still conservative and opt for medium risk or no risk. May be
people who are more than 1 year old but less than 2 years old are conservative. And will take some
time to change their mind.
Majority of people who are more than 15 years old in the stock market also like to play safe and will
not take much risk.

84

how do you utilize your savings? * please rate your appetite of risk taking on a scale of 1 to 5
(moving horizontally from low risk taking to high risk taking)
please rate your appetite of risk taking on a scale of 1
to 5(moving horizontally from low risk taking to high
risk taking)
very low
how do you
utilize your
savings?

Total

low

moderate

high

Total

very high

equties and MF
5

17

15

47

bank deposits

12

33

real estate

luxury items like


gold

13

18

25

30

18

100

85

B
a
rC
h
a
r
t fa
lr(o
p
e
a
s
e
r
a
t
e
y
o
u
r
tm
in
o
f
i
s
k
t
a
k
i
n
g
c
l
o
f
1
5
v
n
g
h
z
l
y
w
t
o
h
rv
s
k
t
a
n
g
)
e
ry
o
w
ris
k
lo
w
ils
k

Count

2
0
1
5
m
o
d
e
r
a
t
e
h
i
g
v
y
h
i
g
1
0
1
7
1
5
1
2
5
9
8
6
5
5
4
3
3
2
2
2
2
2
2
1
0
e
q
u
tie
s
a
n
d
M
F
b
a
n
k
d
e
p
o
s
i
t
r
e
a
l
e
s
t
a
e
l
u
x
r
y
i
t
e
m
s
l
i
k
e
g
o
l
d
h
o
w
d
o
y
u
tilz
e
y
o
u
rs
a
v
in
g
s
?

Interpretation - The interpretation for this is that majority of those who have invested in equities
and M.F are willing to take moderate to high risk. Which means stock market is a risky business as
per the perception and attitude of the consumers. Whereas in all the other things except luxury items
like gold has nearly no risk to very low risk. But in luxury items there is a risk and people are aware
of it. Nowadays commodities are traded in commodity market itself, but it has relatively low risk.
what objectives do you keep in mind before investing? * in case of volatility in the stock market
i would

in case of volatility in the stock market i would


if my
investments
have
if after a year
declined in
there is a
value after a
immediately sell
decline in
year, i will
any investment that
the value,i
divert it
looses money on
will pull out
towards
not
daily or weekly
my
other
invest
basis
investments
avenues
further
what objectives
do you keep in
mind before
investing?

retirement
planning
protection or
emergency

Total

10

11

36

86

portfolio
diversification
wealth accrual
Total

22

5
20

8
20

13
36

10
24

36
100

Interpretation - Here a sizable amount of people would go for portfolio diversification if there is a
lot of volatility in the market and 35% people will put their money in other avenues. This is the best
strategy to nullify the volatility. These types of people have good knowledge of the stock market and
know when to enter and when to exit. Their attitude is to go into the battle field i.e. stock market and
invest in different stocks and different types of investments. Same trend is for the people who want
to increase their wealth. They just think wealth can be increased by being in the stock market and
they will divert their investments towards other avenues.

87

FUTURE OF SHARE TRADING WITH INDIAN PROBLEMS


While analysing the e-broking scenario in India some of the structural aspects need to be kept in
mind. Firstly, the breadth of participation in India in the stock market is very low. The awareness
among the people is still not up to the mark. The stock broking companies should take this as a
challenge and should come up with some new and innovative ways of trading easily and
conveniently. The broking companies should go for some tie-ups with the leading private and
government banks so that it would be easier for the traders to transfer their funds as and when
required. Even the brokers should increase the level of services. Like of we take the present market
situation, they are not in a position to convince the traders to invest more as this is the best time for
investments. Traders still want to play it safe on their part but lacking the knowledge about the
market is also very dangerous. So the companies should try and increase the knowledge of the
traders so that they can do more trading in the falling market also.
Secondly, internet penetration in India is very low. In other foreign markets, online brokerages are
advertised heavily. But India the online trading so far has not seen similar levels of aggressive
advertising, with the exception of some leading broking companies like ICICIDirect, Home Trade
and Sharekhan ltd. apart from this, there is one more limitation of the Indian stock market that only
the scrips that have been compulsorily dematerialised can be traded on the net.
Thirdly, the brokerage charges in India are very low with brokers charging from 0.85 to 1.30 per
trade. Thus, the scope for expansion of the market through reduction in brokerage is far lower.
Fourthly, technology bottlenecks are responsible for online trading to a large extent and it has not
taken off the ground. The main cause poor bandwidth is prominently one of the main reasons
behind this. The three main technological obstacles which are responsible for online trading are
internet penetration, bandwidth, and poor quality of ISP.
Fifthly, a physical presence is a must for any investor in India. An average investor calls his broker
for confirming about the execution of his order and thus the purpose of online trading is lost at that
point itself. This happens because if the connection is lost in the middle of execution then the
investor cant be sure about his order status and thus makes a call to his broker. As the online trading
is still at the grass root level and most traders going for offline trading, thus a physical presence is a
crucial for any brokerage firm in India.

88

During the survey, one more thing came to lime light that banking, broking and depository platforms,
though all linked to same trade, function on entirely different platforms. Integrating all of these is a
major obstacle.
In spite of the all the hassles and issues future looks quite bright. Big players like Reliance, Airtel
and BSNL are laying optic fibre across the country and the connectivity issue will mostly be solved.
Although the risk appetite of the traders has reduced but the participation level has increased a lot
and is stabilizing to high levels. The trend towards online trading is increasing very rapidly and this
is shown by its rapid acceptance in developed and structured capital markets. NSE and BSE have
also influenced the daily traders to learn the methods of online trading. Even the SEBI rules have
also been very strict now and the initial fear of entering into the markets is also reducing gradually.
The volatility in the stock market is also limited and varies according to the category in which the
shares of any particular company are. The dematerialization of shares is also been made mandatory
by SEBI and hence online trading has this advantage of flourishing in near future.
The number of online stock broking companies is also on a move and more and more companies are
giving the option of online trading to their customers at very low rates which are almost negligible as
compared to the advantages the online trading has.
Assurances to secure online transactions are very high as most of the stock broking firms are using
algorithms that use double encryption.

89

9.1 MOBILE TRADING THE FUTURE


The buying and selling of shares using the mobile phones is the next step of technology
advancement. As the mobile technology is increasing day-by-day, the mobile trading is not very far.
Even the leading stock broking firms are also ready for this. They are seeing a substantial growth in
this segment. The broking houses are waiting for the permission from the stock exchanges to offer
mobile trading and stock exchanges are awaiting the permission from the SEBI. The technology is
ready, mobile operators are ready and stock broking houses are waiting in the wings too. With the
fast connections through mobile phones with technologies like GPRS and EDGE (coming to India in
near future) mobile trading would be very easy and one execute their orders through phones. Already
the stock broking are providing streaming quotes, tips and research reports on the mobile phones.
Users can see the market rates, enter, modify, cancel orders, and view their positions and transaction
through a fully secure channel.
From the phone based trading to online trading, the stock market has covered a very large distance
and now from online trading to mobile trading is not very far. There are various supporting reasons
behind this advancement:

Growth in database the registered base of online trading customers is approximately around
22 lakh till the start of 2008 and is growing very fast. A large portion of this is young
professional who are in software, engineering, BPOs and other industries. These are not
intimidated by the technology and are ready to adopt new technology very frequently.

Untapped potential rules in various companies are different. Some allow their employees to
do trading in their offices hours and some dont, so they do trading either in their homes or
with their laptops or cybercafs. So if the trading facility were made available on the mobile
phones too then a large number of customers would use this facility.

High volumes it may be possible that trades per person may be low but the volumes could
be high. This will also earn more revenues for the broking houses and mobile company also.

Risk in times of crisis or volatile market, online trading is less risky as one second is also
very important in the stock market. The one second can even make you or destroy you.

Less intimidating using mobile is much easier than using internet. As mobile is in use from
a very long time and people also find it easy to use. Thus trading on mobile will much easier
and user friendly to people as they dont have many problems using mobile phones.
90

CHAPTER 10
91

CONCLUSIONS AND
RECOMMENDATIONS

92

CONCLUSION
With increased globalization, companies need to conduct continuous analysis in order to develop
strategies to address the contemporary condition of competitive markets. Industry analysis is
necessary to determine the forces of competition. The retail brokerage industry has experienced a
number of changes in recent times, particularly due to the shift in consumer behaviour from using
traditional full service brokerages to discount firms to online investing through e-trading.
By doing this survey it is found that the consumer attitude towards share trading is very much
positive. They are willing to adopt new technology provided they are given proper knowledge about
it. And, brokerage companies which can quickly adopt new technologies into the system with reliable
and ease in transactions will succeed and can tap greater pie of the market.
There are various factors which affect the attitudes of customers towards share trading:

People having more income are ready to take more risks and thus schemes should introduce
for them separately.

People of age more than 50 years are more willing to put their money into bank deposits.
They should be targeted basically for the PMS as they want more security and PMS till date
has given good results.

Brokerage being an important factor for many people but as such brokerage charged but
many stock brokers are very less so more expansion of the customer database on the basis of
reducing brokerage is not possible but they should try and improve their services as they
matter the most for all the traders.

The investors are more in their youth age and middle age and they are much more inclined
towards using the services of Sharekhan ltd. People trust Sharekhan more as the tips given by
the Sharekhan have a greater percentage of accuracy. So Sharekhan has become a brand and
it should try to increase its customers database by launching various schemes.

Youth and middle age dont hesitate while taking risk. They want to earn money very fast.
Middle aged people are moderate risk takers as they are at an age where they have to keep
many things in their mind and hence they dont take much risk. Old age people are low risk
takers as they dont want to lose their money and also they want to accrue their wealth instead
of losing it.
93

RECOMMENDATIONS
1. As its been observed that around 48% of the respondents are using online trading and only 13% of
the respondents are doing offline trading, so there is a greater scope to target people, who are not
doing stock trading, by aggressive advertising campaign and creating awareness about the brokerage
company highlighting all the benefits of technology and Reliability factor.
2. Another thing thats been found out during this survey is that people value services more than cost.
People want good services and are ready for paying extra penny.
3. People prefer Ease of transactions and security. So, brokerage companies should focus on security
and making transactions as simple as possible with simple usage of technology.
4. There are some companies which dont have tie ups with many banks, so that trading account can
be linked with the savings account of the brokerage company. So, a focus to go for tie ups with major
nationalized bank should be there.
5. Companies should provide knowledge to the customers regarding stock market. Aim should not be
making maximum profit at once. The advantage of this will be that the customer will trust broker and
will recommend to the other people also.
6. The company should provide a manual to their clients to ease them through the process of online
trading.

94

CHAPTER 11

LIMITATIONS

95

LIMITATIONS

Sometimes there are unknown reasons on the basis of which markets operate and the findings
of the project may not hold true in such cases. That is the reason why the market is sometimes
called as Irrational creature.

Mostly investors who invest in the stock market have money and they just want to invest with
no predefined objectives in mind and hence they rely upon the suggestions of the distributors
and marketing executives, which deviates the actual behaviour from the expected behaviour.

Lack of awareness of stock market: since the area is not known before, it takes a lot of time in
convincing people to invest in share market.

Some respondents are unwilling to talk or they dont have time to respond.

Misleading concepts: some people think that shares are too risky and are just another name of
gamble. But its not at all risky for long term investors.

96

CHAPTER 12

ANNEXURE QUESTIONNAIRE

97

ANNEXURE

An analysis of consumer attitudes towards share trading : a comparison between online trading
and offline trading.
Questionnaire
Name :
Gender:

Male

Age:

18-30

Female

30-40

40-50

50 and above

Q1. What is your net income?

Under 150,000
300,000-500,000

10,00,000 and above

150,000-300,000
500,000-10,00,000

Q2. Which stock brokers services do you avail?


Reliance money

ICICI DIRECT

Religare

India Bulls

India Infoline

Share Khan

Any Other (please specify)________________________


Q3. How do you invest in stock market?
Online

Both

Q4. Since when are you investing?


Less than 3months

5 to 15years

Offline
Portfolio Management

3 months to 1year
More than 15years

1 to 5 years

Q5. How do you utilize your savings?


Equities and Mutual funds

Bank deposits

Real estate

Luxury items like gold

Any Other (Specify)

_______________________________________

98

Q6. What objectives do you keep in mind while investing?


Retirement planning

Protection or emergencies
Portfolio diversification

Wealth accrual
Other (please specify) ________________________________________

Q7. Do you confirm from your broker after the order is executed?

Yes

No

Q8. What were the sources from where you got information about the stock broker for investing in
the stock market?
TV and radio

Business magazines and newspapers


Friends or colleagues

Internet and Websites

Other (please specify)_________________


Q9. Mark the following parameters according to your preferences for online share trading. (1being
not preferred and 5 being most preferred.)
1

Accessibility
Adoption of
new
technology
Costs
Trust in
broker(s)
Security
convenience
Ease of use
Q10. Rank the following parameters according to your preferences for the broker company from 1 to
6. (1 being most important and 6 being least important)
Brokerage

Exposure/Limit

Ease of use

Phone trading

Security

Costs

Q.11. Do promotional schemes affect your decisions for share trading?


99

Yes

No

Q.12. In case of volatility in the stock market I would


a.
b.
c.
d.

Immediately sell any investment that loses money on a daily or weekly basis.
If after a year there is a decline in the value, I will pull out my investment.
If my investment has declined in value after a year, I will divert it towards other avenues.
Not invest further.

Q13. Please rate your appetite of risk taking on a scale of 1 to 5 (Moving horizontally from very low
risk taking to very high risk taking).
Very low________________________________________________________very high
1

Thank You

REFERENCES
100

1. Web references

www.sharekhan.com

www.timesofindia.com

www.economictimes.com

www.yahoofinance.com

www.mktgresearch.com

http://www.thoughtsofanordinaryman.com/2008/06/india-stock-market-below-14000points.html

EzineArticles.com by William King.

www.newyorktimes (online)

2.Books and journals

A theory of buyer behaviour, John A Howard, Jagdish N. Sheth, marketing classics.

Training kit provided by sharekhan Ltd.

The 21st century consumer- A new model of thinking, International journal of Marketing
Research; Valentine,Virginia & Gordon; spring 2000.

Marketing Research-5th edition by Naresh K Malhotra.

For factor analysis- Field,A.P. (2005). Discovering statistics using SPSS(second


edition).London: sage

Tutorials given in the SPSS v15.

Alternative Economic Survey, 2001-02.

101