Transcript
Buying behavior of investors regarding demat and trading in equity services in surat city
1 Bhagwan Mahavir College of Management
CHAPTER 1
INTRODUCTION
1.1 Industry Profile
1.2 Company Profile
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1.1 INDUSTRY PROFILE
INDIAN STOCK MARKET OVERVIEW
The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)
are the two primary exchanges in India. In addition there are 22 region
Stock exchanges. However the BSE and NSE have established themselves
as the two lending exchange and account for about 90% of the equity
volume trade in India. The Securities and Exchange Board of India (SEBI)
is the authorized body, which regulates the operations of stock
exchanges.
The primary index of BSE is SENSEX comprising 30 stocks and for the
NSE is NIFTY which comprising 50 stocks.
The BSE Sensex is the older and more widely followed index. Both these
are calculated on the basis of market capitalization and contain the
heavily traded share from key sectors. The market is closed on Saturdays
and Sundays. Both the exchange has Switched over from the open outcry
trading system to a fully automated computerized mode of trading known
as BOLT (BSE Online Trading) and NEAT (National Exchange Automated
Trading) system. IT facilitates more efficient processing, automatic order
machine, faster execution of trader and transparency.
The scripts traded on the BSE have been classified in to A, B1, B2, C, F,
Z groups. The A group represent those, which are carry forward system
(Badla). The F group represents the debt market (Fixed income Securities)
segment. The Z group scrip‘s are black listed companies. The C groups
cover the odd lot securities in A, B1, B2 groups and rights renunciations.
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PRIMARY MARKET:
In the primary market securities are issued to the public and the
proceeds go to the issuing company.
Primary market:
Companies share ownership by issuing shares:
Companies allocate shares to individuals and those who get shares
become part owners of the company.
Companies want to
raise money to expand
their business
Individuals want to
invest in business
Company
IPO Individual apply to get shares of the company
Company
Owners No of
Shares
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SECONDARY MARKET
Secondary market is a term used for stock exchanges, where stocks are
bought and sold after they issued to the public.
Companies get themselves listed on popular stock exchange like BSE
NSE.
Company
Stock Exchange
SHAREKHAN
Broker
Investors
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DYNAMICS OF THE SHARE MARKET
Investors buy and sell shares through a stock market.
Similar process happens for the transfer of shares from the seller‘s end. A
fixed process is followed for easy transfer of money and shares.
It is termed as a settlement cycle of ― T+2‖ or ― Trade +2 days‖, which
means that if you buy share on Monday then you will get delivery of the
shares after two working days, i.e. on Wednesday. Similarly if u sells
shares on Monday then you will receive your money on Wednesday.
Buyers
Pays
Money to
Broker
Sharekhan
Broker
Pays
Money to
Stock
Exchange
Stock
Exchange
Pays it to The
Seller‘s
Broker
Broker
Finally
Pays the
Money to
The
Seller
Seller
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SHARE BROKING SERVICE SECTOR
There are several national as well as local players in stock trading
services which are providing various services to their customers like
online trading, portfolio management system, stock broking etc. Various
key players in this sector are:
KEY PLAYERS:
5Paisa.com - Online trading, live stock quotes and market research
Advani Share Brokers - Share broking and market research services
Anand Rathi Securities - Portfolio management, corporate finance,
equity & fixed income brokerage services
Arcadia Stock broking pvt ltd. - Advisory and broking services
Brescon Group - Advisory and broking services
CIL Securities - Stock broking & merchant banking services
CRN India - Trends of stock market, trading tips, chat etc
Churiwala Securities - Stock trading, quotes and market analysis
DSP Merrill Lynch - Investment banking and brokerage services
Dalmia Securities - Stock broking & depository services
EquityTrade - Stock trading, company news & market research
Edelwise Finacial Advise Ltd
Gandhi Securities - Stock broking and investment services
Gogia Capital Services - Stock broking and market analysis
Hasmukh Lalbhai - Stock trading services
Idafa Investments - Stock broking services
India Market Access - Offers stock broking, portfolio management
and investment banking services
Investsmart India - Personal finance advisory & online brokerage
services
Kisan Ratilal Choksey Shares - Stock broking and e-trading services
Kotak Securities - Brokerage services & retail distributor of financial
securities
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Manubhai Mangaldas Securities - Stock broking and market
analysis
Moneypore - Investment and broking services
Motilal Oswal - Online trading, live BSE and NSE quotes
Navia Markets - Stock broking, IPO and mutual funds services
Parag Parikh - Stock broking and portfolio management
Parsoli Corporation - Investment management & stock trading
services
Pratibhuti Viniyog - Stock broking services
Prudential - Investment management services
Quantum Securities - Offers broking and portfolio management
services.
Sharekhan - Online trading, live BSE and NSE quotes, Stock
broking, IPO and mutual funds services
Sivan Securities - offers services related investment banking & stock
broking with a focus on South India.
Skindia Finance - Brokerage firm focusing on GDR arbitrage,
equities & debt
Stock Holding Corporation of India - Custody management,
safekeeping & stock broking services
StockMarkit.com - Stock quotes, news, market indicators etc
Sunidhi Consultancy - Stock broking, portfolio management &
equity research
SSJ finance - Advisory and broking services
Techno Shares - Stock broking and portfolio management
Valia Consultancy - Stock investment and trading consultancy
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1.2 COMPANY PROFILE
Sevaklal Sevantilal Kantilal
Ishwarlal
Securities Private Limited.
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ABOUT SHAREKHAN
SHAREKHAN is a full service investment firm offering clients access to
tremendous range of financial service Along with Sharekhan.com website,
from 168 branches, 1120 franchisees across 325 cities. The company has
a strong team of relationship managers focused on serving customer‘s
unique needs. The company has around 2,50,000 customers from that
1,20,000 use online service, around 46,000 use offline service and
remaining are franchisee customers. The company processes world –class
infrastructure, built with tens of crores of investment, and provides their
clients with real-time service, multi-channel & 24*7 access to all
information and products. SHAREKHAN has expanded and developed to
serve the need of all kind of investors. SHAREKHAN offers a full range of
financial services and product ranging from Equities to PMS to enhance
customer wealth and hence, achieve their financial goals.
Chairman of the company is MR. Shripal Morakhia and the CEO of
the company is MR. Tarun Shah. Head office is located at Mumbai.
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COMPANY HISTORY
SHAREKHAN is the retail broking arm of SSKI Securities Pvt. Ltd. SSKI
stands for Shripal Sevantilal Kantilal Iswarlal Securities Pvt. Ltd,
SSKI was founded in 1922, an organization with more than 80 years of
trust and credibility in the stock market. SSKI owns 56% in
SHAREKHAN; balance ownership is HSBC, First Carlyle, and Intel
Pacific.
SSKI named its online division as ―SHAREKHAN‖ on February 8, 2000
coinciding with the launch of its website.
SHAREKHAN is one of India‘s leading broking houses providing a
complete life cycle of investment solution in EQUITIES, DERIVATIVES,
CURRANCY & COMMODITIES.
The institutional comprises of institutional broking and corporate
finance. The institutional investors, while the Corporate Finance
Divisions focuses on niche areas such as infrastructure, telecom and
media. Through their portable sharekhan.com, they have been providing
investors powerful online knowledge-based tools for over 10 years now.
They have dedicated terms for fundamental and technical research so
that client gets all information that they need to take the right investment
decisions. With branches and outlets across the country, their ground
network is one of the biggest in India. They have a talent pool of
experienced professions specially designated to guide client when they
need assistance, which is why investing with them is bound to be a
hassle-free experience for client. Now SHAREKHAN is providing the
facility that their customers can do trading with the help of their mobile
handset. For tat purpose they have to pay some extra charge to activate
that facility.
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SHAREKHAN’S INVESTMENT PHILOSOPHY
―Given the client‘s risk profile, maximize performance by adhering to a
disciplined investment approach backed by quality research‖
CURRENT POSITION
VISION
To empower the investor with quality advice and superior service to help
him take better investment decisions. We believe that our growth
depends on client satisfaction.
MISSION
To provide the best customer service and product innovation tuned to
diverse needs of clientele.
Continuous up-gradation with changing technology, while maintaining
human values.
Respond to progressive globalization and achieving international
standard.
Efficiency and effectiveness built on ethical practices.
CORE VALUE
Customer satisfaction through
– Providing quality service effectively and efficiently
– ―Smile, it enhances your face value‖ is a service quality
stressed on periodic customer service Audits
Maximization of stakeholder value
Success through Teamwork, integrity and People
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CORE ACTIVITIES
SHAREKHAN is India‘s leading broking houses providing a complete life
cycle of investment solution in:
Equity & Derivatives Trading on NSE and BSE
Online Trading ( Integration of Online Trading + Bank account + Demat
account )
Commodities Trading on MCX & NCDEX
Portfolio Management Services
Depository Services
IPO Services
Wide Range of Customized Research Products
Uniform Service Standards
Mutual fund (Distribution)
Fundamental and Technical Research
Feathers of Share Khan’s Hat
Among the top 3 banking houses in terms of overall stock market
turnover.
Awarded to SHAREKHAN at Awaaz ―Consumer Award 2005‖ in
―Stock Broking‖ category conduced by AC Nielsen- ORG MARG for
CNBC Awaaz.
All you have to do is walk into any of SHAREKHAN‘S 588 shares
across 325 cities in India to get a host of trading related services – our
friendly customer service staff will also help you with any account
related queries you may have.
Voted four times as the top domestic brokerage house by Asia money
survey, SSKI is consistently ranked amongst the top domestic
brokerage houses in India.
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OBJECTIVES OF SHAREKHAN
To provide financial consultancy services; to provide investment
advisor/services on the internet or otherwise; provide financial
consultancy in the area of personal and corporate finance; publish
books (value line) monthly and stock ideas.
To conduct the business of sale, purchase, distribution and transfer of
shares, debt, instruments and hybrid financial instruments and to
perform all related, Incidental, ancillary and allied services.
To conduct depository participant services; to conduct
dematerialization and dematerialization of shares; set up depository
participant centers at various regions in India and to perform all
related, incidental, ancillary and allied services.
To achieve rapid growth in terms of profits, geographical coverage and
market penetration.
To achieve high growth, the company focuses on its two-point agenda.
First is to increase the number of client relationships and, second to
increase the number of products and services to its customers.
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SWOT ANALYSIS
STRENGTHS
Extensive Branch Network :
Since the inception in the year 2010 the company has grown from
a single location to 168 branches, 1120 franchisees across 325
cities.
Bouquet of financial products an services :
The company offers various financial services ranging from equity,
Future and option and wholesale debt, mutual funds, IPO
distribution, equity research analysis, depository service,
commodity, currency etc. Well maintained infrastructure,
Dedicated, Intelligent and Loyal staff. On-line Trading products,
lowest brokerage and other charges w.r.t. Competitors, The best
investment advice correct up to 70-90 % through dedicated.
Ability to combine People and Technology in unique ways :
The Company provides multiple distribution channels by combing
people and technology. Clients can visit any of the branches via
telephone, call centers or online channel.
The company has been able to increase the revenues per customer
significantly in the past few years and feel there is enough scope to
increase that further.
SHAREKHAN launches Share Mobile, an exclusive live streaming
quotes and trading facility for its online trading customers.
Benchmark :
SSKI has been voted as the top domestic Brokerage House in the
research category by Euro money survey and Asia Money survey.
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Weaknesses
Time consuming process for account opening, resolving the
problems of the customers, etc.
Service quality is not maintained accordingly how they are
promoted.
Opportunities
Slope of stock market towards delivery based transaction.
Large potential market for delivery and intra-day transactions.
Open interest of the people to enter in stock market for investing.
Attract the customers who are dissatisfied with other broker &
DPs.
An indirect opportunity generated by the market from its
bullishness.
Large untapped market in the Saurashtra region of Gujarat.
Threats
Decreasing rates of brokerage in the market.
Increasing competition against other brokers & DPs
Poor marketing activities for making the company known among
the customers.
A threat of loosing clients for any kind of weakness of the company.
Loosing the untapped market with the entry of the competitors.
BANK AFFILIATION
SHAREKHAN has affiliation with 7 banks, which allows its customers to
enjoy the facility of instant credit and transfer of funds from his savings
bank account to his SHAREKHAN trading account. The Affiliated banks
are as follows:
HDFC BANK
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UTI BANK
CITI BANK
ORIENTAL BANK OF COMMERCE
IDBI BANK
UBI BANK
CORPORATION BANK
PROMOTION TOOLS AND ADVERTISEMENT OF SHAREKHAN
Promotion:
Online share trading is totally a new concept in Indian market. Generally
investor doesn‘t like to come from conventional way of share trading.
SHAREKHAN has introduced this product in the concept and products
are still new in the market. Therefore the company has undertaken
extensive promotion campaign to create awareness about the product.
SHAREKHAN adopts the following tools for promoting the product.
Internet
Tele Marketing
Retail Share Shops
Franchisee Owners
Sales Force
Advertising:
Company advertises its product through TV media on channels like
CNBC, Print Media-in leading dailies and outdoors media. It advertises
itself as an innovative brand with a cartoon of tiger-called SHERU.
Besides attractive and colorful brochures as well as posters are used
giving full details about the product. Mails are sent to people togging on
to sites like moneycontrol.com and rediff.com.
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INVESTMENT SERVICES OF THE COMPANY
Equities
Help your customers an informed investment decision based
on SHAREKHAN product and research support.
In the equity there are two options:-
Online Trading
Offline Trading
Derivatives
Participate in the F&O (future and option) segment through
in depth research and product support on both futures as
well as options strategies.
In future one month cr. Period given and in option
premium‘s being provided.
Commodities
The fastest growing segment with a potential to become multi
multiple times of the current business. Commodities trading
is imperative to grow ones business and with our membership
with MCX and NCDEX we are able to provide one of the most
comprehensive and competitive platform.
It included Crude oil, Gold, Silver, Grains, etc.
Currency
The Currency Derivatives allows you to trade on the movement
of conversion rate of USD/EUR /GBP/JPY with INR. Currency
derivatives indeed command the largest derivative market
across the world. With SHAREKHAN you can provide trading
options to all your clients with online monitoring and
surveillance mechanism.
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Portfolio management service (PMS) :
Avail of our multiple portfolio management schemes designed
to meet the growing needs of your HNI customers. The
schemes are based on the risk-return appetite of your
customers. PMS Prop rime is aimed at long-term investors
focuses on steady returns and PMS Protect focusing on
absolute returns in the stock market.
Mutual Funds & IPOs :
Give your customers the freedom to choose from over 30 fund
houses while buying or redeeming mutual funds and booking
IPOs online.
Advisory Services :
For HNI clients who want to manage their own accounts but
want expert advice, our Central Advisory team backed by a
range of services can guide with personalized investment
advice.
Advise line :
Your customers can stay connected to market opportunities
even when on the move with SMS and voice updates on
their cell phone with the Advise line service available to all
customers.
SIP or Top Picks:
Secure recurring investments from customers by suggesting
regular, fixed investments with a Systematic Investment Plan
in the Equities or Mutual Funds of your choice or follow the
Top Picks basket recommended by our Research team.
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PRODUCTS AND SERVICE OFFERINGS
SHAREKHAN offers a full range of financial services and products raging
from Online to Offline to enhance the wealth of its customer and help
them achieve their financial goals. SHAREKHAN Professional Network
offers real-time prices, detailed data and news, intelligent analytics, and
electronic trading capabilities, right at the figure tips. To provide the
highest possible quality of service, SHAREKHAN provides full access to
all products and services through multi-channels.
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EQUITIES AND DERIVATIVES
Comprehensive service for independent investors, active traders &
non-resident Indians.
SHAREKHAN RESEACH ANALYSIS
Premium research on 401+ companies update daily.
DEPOSITORY SERVICES
Value added services for seamless delivery.
1) EQUITIES AND DERIVATIVES
SHAREKHAN Retail Equity Business caters to the needs of individual
Indian and Non-Resident Indian (NRI) investors. It offers broker assisted
trade execution, automated online investing and access to all IPO‘s.
Through various types of brokerage accounts, SHAREKHAN offers the
purchase and sale securities, Which includes Equity, Derivatives and
Commodities instruments listed on National Stock Exchange of India Ltd.
(NSEIL), The stock Exchange, Mumbai (BSE) and NCDEX.
SHAREKHAN TRADING ACCOUNT:
The company provides multitude of ways to access the account either
through priority access to Relationship Manager over phone or Online
access to the clients Accounts & Research Tools.
SHAREKHAN TRADING ACCOUNT FEATURES:
Priority Service:
The company gives at most Priority to the clients who can access their
accounts through telephone with the help of their respective Relationship
Manager.
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Premium Research:
The company is heavily into research hence gives benefits to the clients.
Clients can take full benefit by accessing to SHAREKHAN research
Analysis. Which is objective, fast-based approach to rating stocks.
Online Accounting:
The company allows clients to stay on the top of their investment with a
snapshot of their Account statements. Customers get access to portfolio
statement and access to digital contract notes.
2) SHAREKHAN RESEARCH ANALYSIS
The SHAREKHAN research Analysis helps in building and maintaining
the client‘s ideal portfolio, demand objective, dependable information. It
also helps the client in identifying the stocks by rating the stocks on the
basis of facts and latest news.
3) DEPOSITORY SERVICE
SHAREKHAN is a depository participant with the National Securities
Depository Limited and Central Depository Services (India) Limited for
trading and settlement of dematerialized shares. SHAREKHAN performs
clearing services for all securities transactions through its
accounts/company offers depository services to create a seamless
transaction platform – execute trade through the SHAREKHAN securities
and settle these transactions through the SHAREKHAN Depository
services is part of SHAREKHAN value added services for the clients that
creates multiple interfaces with the client and provides for a solution that
care of all customer‘s needs.
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ONLINE TRADING PRODUCTS
1) CLASSIC/ FAST TRADE
2) TRADE TIGER / SPEED TRADE
3) DIAL – N – TRADE
TRADE ONLINE WITH SHAREKHAN
With A SHARKHAN online trading account you can buy and sell shares in
an instant. Anytime you like you can choose the online trading account
that suits your trading habits and preferences.
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1) CLASSIC / FAST TRADE:
A simple, user friendly online trading product which allows the users
to buy/sell shares online and receive updated market information in
the form of streaming quotes.
Consumers Type:
Retail investors, who are risk averse, invest long-term and do not
trade too frequently.
Features of classic account:
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Streaming quotes of live market information
Free depository account
24 * 7 Order – Any time ordering
Multiple bank option
Instant cash transfer
Mobile phone alerts
One share at a time
Multiple watch lists
Integrated Banking, demat and digital contracts
Instant credit and transfer
Real time portfolio tracking with price alerts and secure
transactions.
Online trading account for investing in Equities and Derivatives
Make IPO booking
Instant order and trade confirmations by email
Personalized Market Scan with your own customized stock ticker
Single screen interface for cash and Derivatives
Your very own Portfolio Tracker
EXPOSURE :
Intraday - Up to 10 Times till 3:15pm
Delivery - Up to 4 Times T+5 Days
Benefits of classic account:
Trouble – Free and secure storage for shares
Flexibility to choose a bank
Flexibility to buy/sell even 1 share at a time
Immediate conformation of order
Apply IPO on
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2. TRADE TIGER / SPEED TRADE:
Seed Tread is state–of-the–art web trading product ideal for active
trading. It provides a single screen steaming quotes, online tic-by-tic
charts, instant order placement and trade conformation for equity / cash
market. It is ideal for active traders and jobbers who transact frequently
during day‘s trading session to capitalize on intra-day price movements.
Power- paced features:
Real time Streaming quotes, tic-by-tic charts.
Market summary (most traded, highest value, top gainers etc.)
Ability to customize the terminal screen
Hot keys for buy & sell
Lightning fast order and trade execution & conformation
Report for personal account details
Pre-defined detailed sector – wise script list
Simple order entry process
Alerts and reminders
Ability to place limit order and subsequently modify / cancel
instantly
Live market depth
Order by phone
After market order
Common screen for cash as well as derivatives
Sell Next Day (SND)
Cancel all/ square off all
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Benefits:
All benefits of classic/fast trade plus
SPEED- critical for traders
Streaming quotes
Customized market watch- 2 market watch at a time
Detailed and up-to-date market information and analysis – e.g.
market depth of a script, top traded volumes, top gainers & looser.
Up to 6 charts visible at a time
3. DIAL-N-TRADE
Free with your SHAREKHAN Classic Account, the Dial-n-Trade service
enables you to place order.
Features of Dial-n-Trade
That enables you to trade effortlessly
TWO dedicated numbers for placing your orders with your cell
phone or landline. Toll free number: 1-800-22-7050. For people
with difficulty in accessing the toll-free number, we also have a
Reliance number (Your Local STD Code) 30307600 which is
charged at as a local call.
Simple and Secure Interactive Voice Response based system for
authentication
No waiting time.
Enter your TPIN to be transferred to our telebrokers
You also get the trusted, professional advice of our telebrokers
After hours order placement facility between 8.30 am and 9.00 am
Reliable service, wherever you are
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CHAPTER 2
LITERATURE REVIEW
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Chapter-2 LITERATURE REVIEW
IMPORTANCE
Literature review helps to understand the topic thoroughly. It provides
valuable insight in the topic. It helps for decision making about the
problem. The information collected for the literature review should be
relevant and valid as well as reliable. Literature review helps in removing
the gaps between theory and the existing study. So in short to clean the
rosy picture and to identify the clear cut solution literature review is
helpful.
CONSUMER BUYING BEHAVIOUR
Consumer is God, Consumer is always right, Consumer is the most
important guest in our premises — these are some of the phrases that
have been in use since the advent of business. Earlier, the market used
to be small and limited to a few manufacturers and consumers, but as it
expanded beyond geographical boundaries, sellers as well as buyers
increased several folds. The free market has led to cutthroat competition
among the manufacturers who are trying to capture as much market
share as possible.
Almost all major companies, whether in telecommunication, banking,
credit card, finance or IT, have realized the importance of consumer and
are therefore trying to retain their loyalty. Organizations are now, just not
only selling product or services, but also expanding their operations to
understand their consumer‘s demographic profile, buying behavior and
preferences in order to build long-lasting relationship.
According to Schiffman & Kanuk,
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―Consumer Behavior can be defined as the behavior that consumer
displays in searching for, purchasing, using, evaluating and disposing of
product and services that they expect will satisfy their needs‖
According to Phillip Kotler,
―Consumer Buying Behavior refers to the behavior of ultimate user of
the product‖
―Buying Behavior is defined as the body of knowledge that tries to
understand and predict consumers‘ reactions based on individuals
specific characteristics.‖
According to N.K.Malhotra,
―The decision processes and acts of final household consumers
associated with evaluating, buying, consuming, and discarding products
for personal consumption.‖
―An analysis of the consumer‘s behavior in terms of consumer
consumption patterns, consumer preferences, consumer motivation,
consumer buying process and shopping behavior is very much helpful to
formulate a firm‘s marketing strategy. ―
The study of consumers helps firms and organizations improve their
marketing strategies by understanding issues such as how
The psychology of how consumers think, feel, reason, and select
between different alternatives (e.g., brands, products);
The psychology of how the consumer is influenced by his or her
environment (e.g., culture, family, signs, media);
The behavior of consumers while shopping or making other marketing
decisions;
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Limitations in consumer knowledge or information processing abilities
influence decisions and marketing outcome;
How consumer motivation and decision strategies differ between
products that differ in their level of importance or interest that they
entail for the consumer; and
How marketers can adapt and improve their marketing campaigns
and marketing strategies to more effectively reach the consumer.
Understanding these issues helps us adapt our strategies by taking the
consumer into consideration. For example, by understanding that a
number of different messages compete for our potential customers‘
attention, we learn that to be effective, advertisements must usually be
repeated extensively. We also learn that consumers will sometimes be
persuaded more by logical arguments, but at other times will be
persuaded more by emotional or symbolic appeals. By understanding the
consumer, we will be able to make a more informed decision as to which
strategy to employ.
So the ultimate objective of a business firm is to create a consumer who
is said to be pivot around which the entire business of a firm revolves.
Thus the marketing concept is consumer oriented and the emphasis is
more on the consumer rather than on the product.
The essence of modern marketing lies in building of profit along with
creating meaningful value satisfaction for the costumers, whose needs
and desires have to be coordinated with the set of products and
production programmers. Therefore, marketing success an enterprise
depends as its ability to create a community of satisfied consumers. All
the business activities should be carried out in ways which are directed
towards the satisfaction of the consumer needs.
The marketing concept is consumer oriented and the emphasis is more
on the consumer rather than on the product. The essence of modern
marketing lies in building of profit along with creating meaningful value
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satisfaction for the costumers, whose needs and desires have to be
coordinated with the set of products and production programmers.
Therefore, marketing success an enterprise depends as its ability to
create a community of satisfied consumers.
All the business activities should be carried out in ways which are
directed towards the satisfaction of the consumer needs. Consumer
behavior is affected by a host of variables ranging from personal,
professional needs, attitudes and values, personality characteristics,
social economic and cultural background, age, gender, professional
status to social influences of various kinds exerted a family, friends,
colleagues, and society as a whole.
The combination of these factors help the consumer in decision making
further Psychological factors that as individual consumer needs,
motivations, perceptions attitudes, the learning process personality
characteristics are the similarities, which operate across the different
types of people and influence their behavior.
Marketing starts with the consumers and ends with the consumer.
Satisfaction of the consumers becomes the most important goal of a
business enterprise. The effort to ensure consumer satisfaction lies in
understanding the consumer, his likes dislikes, his expectations and
motivation.
Buying Behavior is the decision processes and acts of people involved in
buying and using products.
Consumer Buying Behavior refers to the buying behavior of the ultimate
consumer. A firm needs to analyze buying behavior for:
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Buyers‘ reactions to a firms marketing strategy has a great impact on
the firms‘ success.
The marketing concept stresses that a firm should create a Marketing
Mix (MM) that satisfies (gives utility to) customers, therefore need to
analyze the what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to
marketing strategies.
Types of Buying Behavior
Consumer decision making varies on the basis of product characteristics.
It can be any of the following.
1. Complex buying behavior.
2. Dissonance reducing buying behavior.
3. Variety seeking buying behavior.
4. Habitual buying behavior.
1. COMPLEX BUYING BEHAVIOR
Consumers are highly involved in a purchase when it is expensive bought
in frequently risky and highly self-expressive. Typically the consumer
COMPLEX BUYING
BEHAVIOR
VARIETY SEEKING
BUYING BEHAVIOR
DISSONANCE RDUCING
BUYING BEHAVIOR
HABITUAL
BUYING BEHAVIOR
Significance
difference
Between brands
No difference
Between brands
High Involvement Low Involvement
Significance
difference
Between brands
No difference
Between brands
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does not know much about the product category and has much to learn.
This buyer will pass thought a cognitive learning process characterized
by then attitude and the making a thoughtful purchase choice.
2. DISSONANCE - REDUCING BUYING BEHAVIOR
The high involvement is again based of the fact that the purchase is
expensive infrequent and risky. The buyer will shop around to learn what
is available but will buy fairly quickly because brand differences are not
pronounced the buyer may respond primary to a good price or the
convenience of purchasing at that time or place.
3. HABITUAL BUYING BEHAVIOR
Consumer‘s behavior in these cases not passes through the belief
attitude consumers do not search extensively for information about the
evaluation their characteristics and make a weighty decision on which
one to buy..
4. VARIETY- SEEKING BUYING BEHAVIOR
Some buying situation is characterized by low consumer involvement but
significant brand differences. Here consumers are often observed to do a
lot of brand switching.
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MAJOR FACTORS INFLUENCING BUYING BEHAVIOR
INTERNAL INFLUENCES
1. PERCEPTUAL FILTER:
Perception is how we see ourselves and the world we live in.
―Perception is a unique way in which individual see, receive, organize or
interpret the things to give meaning to the surrounding environment.‖
Perception has several steps.
Exposure – sensing a stimuli (e.g. seeing an ad)
Attention – an effort to recognize the nature of a stimuli (e.g.
recognizing it is an ad)
Awareness – assigning meaning to a stimuli (e.g., humorous ad for
particular product)
Retention – adding the meaning to one‘s internal makeup (i.e.,
product has fun ads)
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Marketing Implication
Marketers must understand the process of perception through which
customer passes. They must make their communication such that target
audience can interpret it same as intended by marketers.
2. KNOWLEDGE:
Knowledge is the sum of all information known by a person. It is the
facts of the world as he/she knows it and the depth of knowledge is a
function of the breadth of worldly experiences and the strength of an
individual‘s long-term memory.
Marketing Implications:
Marketers may conduct research that will gauge consumers‘ level of
knowledge regarding their product. As we will see below, it is likely that
other factors influencing consumer behavior are in large part shaped by
what is known about a product. Thus, developing methods (e.g.,
incentives) to encourage consumers to accept more information (or
correct information) may affect other influencing factors.
3. ATTITUDE:
Attitude refers to what a person feels or believes about something.
―Attitude is predispositions to act or react to a particular thing‖
Marketing Implication:
Marketers facing consumers who have a negative attitude toward their
product must work to identify the key issues shaping a consumer‘s
attitude then adjust marketing decisions (e.g., advertising) in an effort to
change the attitude. For companies competing against strong rivals to
whom loyal consumers exhibit a positive attitude, an important strategy
is to work to see why consumers feel positive toward the competitor and
then try to meet or beat the competitor on these issues. Alternatively, a
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company can try to locate customers who feel negatively toward the
competitor and then increase awareness among this group.
4. PERSONALITY:
An individual‘s personality relates to perceived personal characteristics
that are consistently exhibited, especially when one acts in the presence
of others.
Marketing Implication:
For marketers it is important to know that consumers make purchase
decisions to support their self concept. Using research techniques to
identify how customers view themselves may give marketers insight into
products and promotion options that are not readily apparent.
For example, when examining consumers a marketer may initially build
marketing strategy around more obvious clues to consumption behavior,
such as consumer‘s demographic indicators (e.g., age, occupation,
income). However, in-depth research may yield information that shows
consumers are purchasing products to fulfill self-concept objectives that
have little to do with the demographic category they fall into (e.g., senior
citizen may be making purchases that make them feel younger).
Appealing to the consumer‘s self concept needs could expand the market
to which the product is targeted.
5. LIFESTYLE:
This influencing factor relates to the way we live through the activities we
engage in and interests we express.
In simple terms it is what we value out of life. Lifestyle is often
determined by how we spend our time and money.
Marketing Implication:
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Products and services are purchased to support consumers‘ lifestyles.
Marketers have worked hard researching how consumers in their target
markets live their lives since this information is key to developing
products, suggesting promotional strategies and even determining how
best to distribute products.
6. ROLES:
Roles represent the position we feel we hold or others feel we should hold
when dealing in a group environment.
Marketing Implication:
Advertisers often show how the benefits of their products aid consumers
as they perform certain roles. Typically the underlying message of this
promotional approach is to suggest that using the advertiser‘s product
will help raise one‘s status in the eyes of others while using a
competitor‘s product may have a negative effect on status
7. MOTIVATION:
Motivation relates to our desire to achieve a certain outcome. ―Motivation
refers to the intensity, direction and persistence of efforts of an individual
towards achieving a particular goal.‖
Marketing Implication:
Motivation is also closely tied to the concept of involvement, which relates
to how much effort the consumer will exert in making a decision. Highly
motivated consumers will want to get mentally and physically involved in
the purchase process. Not all products have a high percentage of highly
involved customers (e.g., milk) but marketers who market products and
services that may lead to high level of consumer involvement should
prepare options that will be attractive to this group. For instance,
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marketers should make it easy for consumers to learn about their
product (e.g., information on website, free video preview) and, for some
products, allow customers to experience the product (e.g., free trial before
committing to the purchase.
B. EXTERNAL INFLUENCES
Consumer purchasing decisions are often affected by factors that are
outside of their control but have direct or indirect impact on how we live
and what we consume.
1. CULTURE:
Culture represents the behavior, beliefs and, in many cases, the way we
act learned by interacting or observing other members of society.
Marketing Implication:
As part of their efforts to convince customers to purchase their products,
marketers often use cultural representations, especially in promotional
appeals. The objective is to connect to consumers using cultural
references that are easily understood and often embraced by the
consumer. By doing so the marketer hopes the consumer feels more
comfortable with or can relate better to the product since it corresponds
with their cultural values. Additionally, smart marketers use strong
research efforts in an attempt to identify differences in how sub-culture
behaves. These efforts help pave the way for spotting trends within a
sub-culture, which the marketer can capitalize on through new
marketing tactics (e.g., new products, new sales channels, added value,
etc.
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2. OTHER GROUP MEMBERSHIP:
Some of the basic groups we may belong to include:
Social Class – represents the social standing one has within a society
based on such factors as income level, education, occupation
Family – one‘s family situation can have a strong effect on how
purchase decisions are made
Reference groups – most consumers simultaneously belong to many
other groups with which they associate or, in some cases, feel the
need to disassociate
Marketing Implication:
Identifying and understanding the groups‘ consumers belong to is a key
strategy for marketers. Doing so helps identify target markets, develop
new products, and create appealing marketing promotions to which
consumers can relate. In particular, marketers seek to locate group
leaders and others to whom members of the group look for advice or
direction. These opinion leaders, if well respected by the group, can be
used to gain insight into group behavior and if these opinion leaders
accept promotional opportunities could act as effective spokespeople for
the marketer‘s products.
3. SITUATION:
A purchase decision can be strongly affected by the situation in which
people find themselves. Not all situations are controllable, in which case
a consumer may not follow their normal process for making a purchase
decision.
Marketing Implications:
Marketers can take advantage of decisions made in uncontrollable
situations in at least two ways.
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First, the marketers can use promotional methods to reinforce a specific
selection of products when the consumer is confronted with a particular
situation. For example, automotive services can be purchased that
promise to service vehicles if the user runs into problems anywhere and
at anytime. Second, marketers can use marketing methods that attempt
to convince consumers that a situation is less likely to occur if the
marketer‘s product is used. This can also be seen with auto products,
where marketers explain that using their product will prevent unexpected
damage to their vehicles.
A recent survey on buying behavior by Jeremy Nye, BBC gives the
following findings:
Who decides?
Self Spouse Joint Family Elder
s
Childr
en
Buying a house 25% 5.8% 20.8% 30.1% 14% 0.4%
Child's marriage 7.7% 5.9% 21.8% 18.7% 11.5% 4%
Own marriage 20.4% 2.5% 6.2% 22.4% 29.7% 0.9%
Child's
education 15.1% 6.6% 34% 12.5% 5.6% 4.6%
Taking a loan 31.4% 5% 24.3% 18.1% 9.2% 0.6%
Fixing monthly budget
24.2% 10.3% 33.3% 18.5% 11.2% 0.6%
Buying entertainment
durables, like TVs
21.4% 8.2% 33.4% 26.7% 7.4% 1.6%
Buying durables like washing
machines
19.3% 10.7% 33.3% 26.2% 8.2% 1%
Deciding on holiday
destinations
20.6% 6.1% 28.4% 31.8% 4.5% 5.6%
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How Consumers buy?
Now that we have discussed the factors influencing a consumer‘s
decision to purchase, let‘s examine the process itself. This process is
presented in a sequence of 5 steps as shown below.
However, whether a consumer will actually carryout each step depends
on the type of purchase decision that is faced. For instance, for minor re-
purchases the consumer may be quite loyal to the same brand, thus the
decision is a routine one (i.e., buy the same product) and little effort is
involved in making a purchase decision.
In cases of routine, brand loyal purchases consumers may skip several
steps in the purchasing process since they know exactly what they want
allowing the consumer to move quickly through the steps. But for more
complex decisions, such as Major New Purchases, the purchasing
process can extend for days, weeks, months or longer.
So in presenting these steps marketers should realize that, depending on
the circumstances surrounding the purchase, the importance of each
step may vary.
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STAGES OF THE CONSUMER BUYING PROCESS:
Five Stages to the Consumer Buying Decision Process (For complex
decisions). Actual purchasing is only one stage of the process. Not all
decision processes lead to a purchase. All consumer decisions do not
always include all 5 stages, determined by the degree of
complexity...discussed next.
1. Problem Recognition (Need Recognized):
Difference between the desired state and the actual condition. e.g:
Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by
the marketer through product information-did not know you were
deficient? I.E., see a commercial for a new pair of shoes, stimulates your
recognition that you need a new pair of shoes.
2. Information search
Internal search, memory.
External search if you need more information. Friends and relatives
(word of mouth). Marketer dominated sources; comparison shopping;
public sources etc.
A successful information search leaves a buyer with possible alternatives,
the evoked set.
Hungry, want to go out and eat, evoked set is:
Chinese food
South Indian food
Punjabi Food
3. Evaluation of Alternatives:
Need to establish criteria for evaluation, features the buyer wants or does
not want. Rank/weight alternatives or resume search. May decide that
you want to eat something spicy, Indian gets highest rank etc.
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If not satisfied with your choice then returns to the search phase. Can
you think of another restaurant? Look in the yellow pages etc.
Information from different sources may be treated differently. Marketers
try to influence by "framing" alternatives.
4. Purchase decision:
Choose buying alternative, includes product, package, store, method of
purchase etc.
Actual Purchase: May differ from decision, time lapse between 4 & 5,
product availability.
5. Post-Purchase Evaluation:
Outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you
made the right decision. This can be reduced by warranties, after sales
communication etc. After eating an Indian meal, may think that really
you wanted a Chinese meal instead.
BUYING ROLES:
We can distinguish the five roles people ply in buying decisions.
1. Initiator: - The person who first suggests to buy a good or service.
2. Influencer: - The person whose views or advice influence the buying
decision.
3. Decider: - The person who decides on any component of buying
decisions; whether to buy, what to buy, how to buy, or where to buy.
4. Buyer: - The person who ultimately buys the product.
5. User: - The person who consumes or uses the product.
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TREND OF CONSUMERS AND THEIR BUYING BEHAVIOUR IN INDIA
India is the fourth largest economy in the world as far as purchasing
power is concerned just behind USA, Japan, and China. India‘s growth
rate in the past two decades has been amongst the top ten in the world.
It was amongst the top 5 recipients of private equity flows in Asia in 2003
and expects around US$1.2bn of investments in 2004 (CMIE). The equity
focus has shifted from IT, BPO, and PSU disinvestments to
infrastructure, energy, pharmacy, distressed assets, banks, and real
estate.
Even though 25% of the population lives below the poverty line, India has
a large and growing middle class population of 300 mn people that has
the disposable income for consumer goods making it a strong emerging
market.
The Indian consumer is in the grip of a big change. This is because the
country and its environment have become more complex in recent times.
A new trend towards globalization is taking India further on the path of
change. The well-off segments of the population are becoming more
cosmopolitan in work-culture, food habits, entertainment, and lifestyle in
general.
Even today, only 16 % of Indian professionals are women. Therefore,
consumer decision-making in all areas -- ranging from what cars to buy
to what clothes manufacturers to patronize -- is dictated by men when it
comes to the most upscale market segment in India.
To examine the family buying process and to identify the roles played by
different family members, D. P. S. Verma and Sheetal Kapoor surveyed
313 families living in Delhi, who had purchased one of six durable
consumer products in recent years.
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Five roles (namely, the initiator, the influencer, the decider, the buyer
and the user) played by family members were examined for the study.
While the young, well-educated women in the family emerged
significantly as initiators of the buying decision and students and
children among the influencers, and the purchase decision process was
relatively democratic at the initial stages, subsequently it seemed to
become much more unilateral in terms of the role played by the decider-
member. The husband was found to play the highly significant roles of
coordinator, decider and buyer.
'Horizon 2003', a study by BBC World, BBC's 24-hour international
news and information channel, using the latest census as a base, gives
some startling insights into the attitudes and activities of India's leading
consumers and decision makers.
The research, conducted by market research agency NFO-MBL across six
top metros and profiling 3,80,000 people, will greatly help media
planners, agencies and advertisers to understand this particular horizon
professional.
The following are the findings of various researches done in India.
Life insurance was found to be the biggest financial investment for most
Indians, followed by the stock markets. Washing machines were the most
desirable consumer durable products, followed by cars and desktop
computers.
42% of the respondents owned a mobile phone, of which 52% had a
Nokia, and 42% of these subscribed to AirTel cellular service.
56% of the people surveyed felt that it was all right to give or take bribes
to get their work done. A slightly smaller number (40%) thought it
perfectly acceptable 'to make money through underhand means/deals.
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INVESTORS BEHAVIOUR:
It is a well documented empirical fact in the finance literature that there
is significant heterogeneity across individuals in investment behaviors
such as the decision to invest in the stock market and the choice of asset
allocation.
Are individual investors genetically predisposed to certain behaviors and
born with a persistent set of abilities and preferences which affect their
decisions in the financial domain or are investment behavior to
significant extent shaped by environmental factors, such as parenting or
individual-specific experiences? These questions are fundamental for our
understanding of the behavior of individual investors, but so far existing
research has not offered much systematic evidence on them. In this paper,
we seek to fill this void by estimating the extent to which nature, i.e., genetic
variation across individuals, versus nurture or other environmental
treatments explain the observed heterogeneity in investment decisions.
To decompose the variance of three important measures of investment
behavior ± stock market participation, the relative amount invested in
equities (share of equities) and portfolio volatility ± into genetic and
environmental components, we examine identical and fraternal twins.
The intuition of our identification strategy is right forward: if individuals
who are more closely related genetically (e.g., identical twins) tend to be
more similar on measures of investment behavior, then this is Evidence
for that behavior being, at least partially, caused by a genetic factor.
Using data on twins Allows us to identify an unobservable genetic
component and environmental components that are either common
(shared) or non-shared among twins. Our data on 37,504 twins are from
the Swedish Twin Registry, which maintains and manages the world¶s
largest database of twins. Until the abolishment of the wealth tax in
Sweden in 2006, the law required all financial institutions to report
information to the Swedish Tax Agency about assets an individual owned
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as of December 31 of that year. This allows us to compile a matched data
set of twins and their complete financial portfolios.
A study on Individual Investor Behaviour by Hisashi Kaneko:
Senior Quantitative Analyst Financial Knowledge Research Division
Nomura Research Institute (Chartered Member of the security Analysts
Association of Japan)
Although institutional aspects in Japan have been improved to encourage
the holding of investment trusts by individual investors, it cannot yet be
said that investment trusts have permeated the individual investor
market. One reason for this is that the improvement of related systems
was conducted without sufficient understanding of the reasons behind
the investment behavior of individual investors.
By focusing on the buying and selling of investment trusts by individual
investors, and examining such behavior from a behavioral finance
perspective, phenomena such as realize profits quickly when in the black,
but defer taking losses when in the red and selecting funds based on the
level of unit price can be observed. If these characteristics of buying and
selling behavior by individual investors are taken into consideration, it is
clear that many investment trusts have room to rethink the way in which
they manage their funds.
In addition, to promote the holding of long-term positions in investment trusts,
purchasing methods such as the dollar-cost averaging method may be effective.
This report conducted an analysis focusing on investment trusts.
However, other assets including savings deposits and shareholdings
must be considered when analyzing individual asset management
decisions. Sales methods applied to investment trusts should be
considered in the light of the above points, on which subject future debate is also
necessary.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1 Problem definition
3.2 Research Objectives
3.3 Research Design
3.4 Sampling Design
3.5 Data Collection Method
3.6 Analysis tools and techniques
3.7 Limitation of Research
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Chapter: 3 RESEARCH METHODOLOGY
MEANING OF RESEARCH
Research in common parlance refers to a search for knowledge. Once can
also define research as a scientific and systematic search for pertinent
information on a specific topic. In fact, research is an art of scientific
investigation. The Advanced Learner‘s Dictionary of Current English lays
down the meaning of research as ―a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.‖
Redman and Mory define research as a ―systematized effort to gain new
knowledge.‖
According to Clifford Woody ―research comprises defining and redefining
problems, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data; making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis‖
Research is, thus, an original contribution to the existing stock of
knowledge making for its advancement. It is the pursuit of truth with the
help of study, observation, comparison and experiment. In short, the
search for knowledge through objective and systematic method of finding
solution to a problem is research. The systematic approach concerning
generalization and the formulation of a theory is also research.
As such the term ‗research‘ refers to the systematic method consisting of
enunciating the problem, formulating a hypothesis, collecting the facts or
data, analyzing the facts and reaching certain conclusions either in the
form of solutions(s) towards the concerned problem or in certain
generalizations for some theoretical formulation.
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Research methodology is the systematic design, collection, analysis and
reporting of data and finding, relevant to appraisal specific personnel
situation facing the company. Research methodology describes the
research procedure. It is cover the following points:
A. Research design.
B. Data collection method.
C. Sample Design.
OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find
out the truth which is hidden and which has not been discovered as yet.
Though each research study has its own specific purpose, we may think
of research objectives as falling into a number of following broad
groupings:
a. To gain familiarity with a phenomenon or to achieve new insights into
it (studies with this object in view are termed as exploratory or
formulate research studies);
b. To portray accurately the characteristics of a particular individual,
situation or a group (studies with this object in view are known as
descriptive research studies);
c. To determine the frequency with which something occurs or with
which it is associated with something else (studies with this object in
view are known as diagnostic research studies);
d. To test a hypothesis of a causal relationship between variables (such
studies are known as hypothesis-testing research studies)
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3.1 Problem definition
Problem Statements:
How to know requirements of peoples of Surat city regarding trading
in equity service?
How to get comparative advantage in competitive market of trading in
equity service in Surat city?
As a new branch in Surat city, How to make our communication
effective to the customer/investors so it provide solution for their
investment services problems?
Management Decision Problem
―How to increase clients by providing them best services in the field of
Demat a/c & trading in equity services?‖
Marketing Research Problem
―What is investors‘ Buying Behavior regarding Demat account and
trading in equity services in Surat city?‖
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3.2 Research Objectives
Primary Objective:
To know the buying behavior of investors regarding Demat and
trading in equity services in Surat city.
Secondary Objectives:
To know people‘s preference about various brands for investment in
equities in Surat city.
To identify the most popular type of trading in equities in Surat city.
To identify the effective medium of communication in Surat city.
To identify the social factors that affect investors‘ buying behavior in
Surat city.
To measure the importance of various parameters for investment in
equities services in Surat city.
To measure the satisfaction level of investors regarding various
parameters for investment in equities services in Surat city.
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3.3 Research Design
―It is an overall framework of project that indicates what information to
be collected from which sources and by which procedures.‖
It is also the plan, structure, and strategy of investigation conceived so
as to obtain answers to research questions and to control variance.
1. Exploratory Stage:
The first stage in research design is exploration of current situation. In
this stage clarification of the specific problem is identified. How we came
to know about problem statement? Answer is we have gone through
secondary data of the company. Also we have gone through internal
database of the company. For more information about that we have also
gone through literature review with that regard. We have talked to the
management.
Why Exploration?
One of the reasons is that the area of my investigation was new; this
is my first study of investigation.
Here company did not have any clarity about the problem statement.
What should be researched what should be not?
Also due to time constrains, It saved time because it helped me to
clarify the situation more precisely.
2. Descriptive studies:
In this project, Descriptive and cross-sectional research design was used
because it described the phenomena under study and recommendations
/ findings were specific under this study.
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―Descriptive studies are undertaken in many circumstances. When the
researcher is interested in knowing the characteristics of certain group
such as age, sex, educational level, occupation or income, a descriptive
study may be necessary.‖
―Other cases when a descriptive study could be taken up are when he or
she is interested in knowing the proportion of people in a given
population who have behaved in a particular manner, making
projections of a certain thing: or determining the relationship between
two of more variables. The objective of such studies is to answer who,
what, when, where, and way of the subject under investigation.
Descriptive studies can be complex, demanding a high degree of
scientific skill on the part of the researcher.‖
Descriptive studies can be divided into two broad categories cross-
sectional and longitudinal. Researcher frequently uses them.
Cross-Sectional Studies:
Cross-sectional studies are carried out once and selected, as the
research will be carried out in a particular time only.
A cross-sectional study is concern with a sample of element from a given
population. Cross-sectional studies are two types – field studies &
survey method. Although the distinction between them is not clear-cut,
there are come practical difference, which needs different technique and
skill.
Exploratory
Descriptive
Cross-sectional
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3.4 Sampling Design
Sampling Method:
In this study, non-probability Sampling design had been used and the
Sampling method employed was convenience Sampling. This had been
done instead of pure random sampling method (probability Sampling)
because of time and money constraints.
Defining the target population
Element: Potential users of Demat account and trading of
equity services.
Sampling unit: users of trading in equity service
Extent: Surat city.
Survey Time: 1st July to 13th July
Execution of sampling process:
I had collected data from users of Demat and trading in equity service.
Sample size:
Considering both TIME & MONEY constraints, I went for survey of 120
respondents.
Buying behavior of investors regarding demat and trading in equity services in surat city
56 Bhagwan Mahavir College of Management
3.5 Data Collection Method
Data Sources:
Primary Data:
Utilizing the information from the Secondary data, questionnaire was
prepared to study the investors‘ behavior. Primary data were collected
directly from the respondents to solve the problem.
Secondary Data:
Secondary data were collected from many sources like books,
newspapers, company‘s report, and magazines.
Buying behavior of investors regarding demat and trading in equity services in surat city
57 Bhagwan Mahavir College of Management
3.6 Analysis tools and techniques
Research Approach:
Survey method was adopted to gather the primary data. This survey
included face-to-face interview with respondents.
Research Instrument:
The most effective research instrument for data collection was
questionnaire, for this study the structured questionnaire was
used. This questionnaire was administered through face-to-face
interviews.
Types of questions:
In the questionnaire, both close-ended questions and open-ended
questions were included. There were multiple-choice questions as well
as Interval Scale Questions and open ended questions.
Pre-testing of questionnaire:
It was necessary to check the questionnaire, before actual research was
done. Therefore pilot testing was done. In this case, pilot testing was
done for 10 respondents. And based on the feedback, the questionnaire
was fine-tuned.
Buying behavior of investors regarding demat and trading in equity services in surat city
58 Bhagwan Mahavir College of Management
3.7 Limitation of Research
As every coin has two sides, one good and other bad, my study has some
limitation. Some of the major limitations of my study are mentioned
below:
Probability sampling was not used and therefore the results cannot be
generalized.
Here only those respondents who were available at trading branch.
Especially some people found less concentrated towards questionnaire
which may lead to bias.
The sample size of 120 customers is very small compared to the
population size. There for, findings cannot be generalized to the larger
population.
Buying behavior of investors regarding demat and trading in equity services in surat city
59 Bhagwan Mahavir College of Management
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Buying behavior of investors regarding demat and trading in equity services in surat city
60 Bhagwan Mahavir College of Management
Chapter: 4 Data Analysis and Interpretation
The demographic profile of the respondent is as follows:
1. Age Group:
From above table it is found that 66.67% respondents are between ages
of 18 years-30 years, which collectively covers maximum respondents
16.67 % are between ages of 31 years – 40 years. And 10% are of age 41-
50 years and 6.67% respondents are more than 50 years. Here series 1
shows the series of different age groups.
Age Group
No. of Respondent
Percentage
18 years - 30 years
80
66.67
31 years - 40 years
20
16.67
41 years - 50 years
12
10.00
Above 50 years
8
6.67
Total
120
100.00
0
10
20
30
40
50
60
70
80
18-30 31-40 41-50 >50
Series1 80 20 12 8
80
20
12 8
No.
of
Respondent
Age Group
Series1
Buying behavior of investors regarding demat and trading in equity services in surat city
61 Bhagwan Mahavir College of Management
2. Income Group:
From above table it is founds that 40.00% respondents are having
income range of 10,001-25,000 rupees per month while 11.67%
respondents having less than 10,000 rupees per month and 26.67 %
having 25,001-50,000 rupees per month and 8% respondents having
above 1,00,000 rupees. Here series 1 shows the series of different income
groups.
Income Group
No. of Respondent
Percentage
Less than 10,000
14
11.67
10,001 - 25000
48
40.00
25,001 – 50,000
32
26.67
50,001 – 1,00,000
18
15.00
>1,00,000
8
6.67
Total
120
100.00
0 10 20 30 40 50
Less than 10000
10001 - 25000
25001 - 50000
50001 - 100000
> 100000
14
48
32
18
8
No. of respodent
Inco
me
Gro
up
Series1
Buying behavior of investors regarding demat and trading in equity services in surat city
62 Bhagwan Mahavir College of Management
3. Education:
From above table it is found that 3.33% respondents are H.S.C pass,
60.84% respondents are graduates, and 0.00 % is S.S.C pass while
35.83% respondents are post graduates. Here series 1 shows the series of
different education.
Education
No. of Respondent
Percentage
S.S.C
0
0.00
H.S.C
4
3.33
Graduate
73
60.84
P.G
43
35.83
Total
120
100.00
0 20 40 60 80
S.S.C
H.S.C
Graduate
P.G
0
4
73
43
No. of respondent
Educati
on
Series1
Buying behavior of investors regarding demat and trading in equity services in surat city
63 Bhagwan Mahavir College of Management
4. Occupation:
From above table it is found that 6.67% respondents are student, 40.83%
are businessmen, 5.00% are retired, 39.17% are employees, 7.5% are
Professional while 0.83 % are other category which is in this case she is
housewife. Here series 1 shows the series of different occupation.
Occupation
No. of Respondent
Percentage
Student
8
6.67
Service
47
39.17
Professional
9
7.5
Business
49
40.83
Retired
6
5.00
Others
1
0.83
Total
120
100.00
0
10
20
30
40
50
8
47
9
49
6
1
No.
of
Respodent
Occupation
Series1
Buying behavior of investors regarding demat and trading in equity services in surat city
64 Bhagwan Mahavir College of Management
Q.1 Which of the following brand for DEMAT account and
trading in equities have you ever deal in Surat city?
Purpose of this Question:
This question is asked to respondents to know their preferences
about various brands that are operating in surat.
Brand’s
No. of Respondent
Percentage
Sharekhan
45
37.5
Angel Broking
18
15.00
5paisa.com
5
4.17
Kotak Securities
5
4.17
Indiainfoline Ltd
6
5.00
Motilal Oswal Ltd
15
12.5
HDFC Securities
3
2.5
Reliance Money
9
7.5
Others
14
11.66
Total
120
100.00
37,50%
15% 4,17%
4,17%
5%
12,50%
2,50%
5,00% 11,66%
Brand's
Sharekhan
Angel Broking
5paisa.com
Kotak Securities
Indiainfoline Ltd
Motilal Oswal Ltd
HDFC Securities
Reliance Money
Others
Buying behavior of investors regarding demat and trading in equity services in surat city
65 Bhagwan Mahavir College of Management
From the above table it is found that brand has its highest brand prefer
Sharekhan for trading is among peoples (37.50%) in Surat, whereas the
brand preference for other brands in descending order are (15.00%)Angle
Broking, (12.5%) Motilal Oswal, (11.67) other local brands, (7.5%)
Reliance Money, (5.00%)Indiainfoline, (4.17%) for 5paisa.com and Kotak
securities. The Pie charts represent percentage of investor‘s preferences
for each brand. And from the result the ranking of various brands is
done.
Buying behavior of investors regarding demat and trading in equity services in surat city
66 Bhagwan Mahavir College of Management
Q.2 At which brand(s) you are investing in equities?
Purpose of this question:
This question helps to know investor‘s brand which will help in knowing
the market share of various brands.
Respondent's Brand
Brand’s
No. of
Respondent
Percentage
Sharekhan
45
37.5
Angel Broking
18
15.00
5paisa.com
5
4.17
Kotak Securities
5
4.17
Indiainfoline Ltd
6
5.00
Motilal Oswal Ltd
15
12.5
HDFC Securities
3
2.5
Reliance Money
9
7.5
Others local brands
14
11.66
Total
120
100.00
Buying behavior of investors regarding demat and trading in equity services in surat city
67 Bhagwan Mahavir College of Management
From the above table it is found that Sharekhan is the first in terms of
investors having 37.5% respondents, Angle Broking having 15.00% of
investors, Motilal Oswal having 12.5% of investors, other local brands
having 11.67% of investors, Reliance Money having 7.5% of investors,
Indiainfoline having 5.00% of investors, 4.17% of investors from
5paisa.com and Kotak securities. Here series 1 shows the series of
respondents of various brand in surat city.
0
5
10
15
20
25
30
35
40
45
45
18
5 5 6
15
3
9
14
No.
of
Respondent
Brand's
series1
Buying behavior of investors regarding demat and trading in equity services in surat city
68 Bhagwan Mahavir College of Management
Q.3 Which type of trading do you prefer?
Purpose of this question:
This question helps to know investor‘s preferences for trading in
equity in share market.
From the above table it is found that 85.83% respondents prefer online
trading while only 14.17% people prefer offline trading. Here series1
shows the series of respondent‘s preferences for trading in equity in surat
city.
Type of Trading
No. of
Respondent
Percentage
Online
103
85.83
Offline
17
14.17
Total
120
100.00
0
20
40
60
80
100
120
Online Offline
103
17
No.
of
Respodent
Types of Trading
Series1
Buying behavior of investors regarding demat and trading in equity services in surat city
69 Bhagwan Mahavir College of Management
Q.4 Which of the following type of trading transaction you perform?
Purpose of the question:
There are various options available for trading in equity to the investors.
So this question helps us to identify the most effective type of trading.
Delivery:
Intraday:
Future & Option:
No. of
Respondent
Percentage
Yes
115
95.83
No
05
4.17
Total
120
100.0
No. of
Respondent
Percentage
Yes
95
79.17
No
25
20.83
Total
120
100.0
No. of
Respondent
Percentage
Yes
84
70.00
No
36
30.00
Total
120
100.0
Buying behavior of investors regarding demat and trading in equity services in surat city
70 Bhagwan Mahavir College of Management
From the table it is found that 95.83% investors like to invest in
DELIVERY TYPE of trading in equities. They would not like to take higher
risk. They would like to be at safer side.
As in Delivery Type of trading people buy shares at particular price and
until and unless they could not get profitable margin they will not sell
their equities. 79.17% investors like to invest in INTRADAY and 70.00%
investors like to invest in FUTURE & OPTION. Here series1 shows the
series of investors like to invest different types of Trading.
0
20
40
60
80
100
120
Intraday Future & Option Delivery
95
84
115
25
36
5
No.
of
Respondent
Type of Trading
Yes
No
Buying behavior of investors regarding demat and trading in equity services in surat city
71 Bhagwan Mahavir College of Management
Q.5 For how long you are investing in equities?
Purpose of the Question:
This question helps in considering the suggestions and their view as
important because they are having long experience of equity market.
Duration:
Less than(<)1 month
No. of
Respondent
Percentage
Yes
72
60.00
No
48
40.00
Total
120
100
1 – 6 month
No. of
Respondent
Percentage
Yes
65
54.17
No
55
45.83
Total
120
100
6 month – 1 year
No. of
Respondent
Percentage
Yes
81
67.5
No
39
32.5
Total
120
100.0
1 – 5 year
No. of Respondent
Percentage
Yes
20
16.67
No
100
83.33
Total
120
100.0
Buying behavior of investors regarding demat and trading in equity services in surat city
72 Bhagwan Mahavir College of Management
From above table it is derived that about frequency of 60.00% investors
are investing for Less than 1 month other frequency of 67.5% investors
are investing for 6 month to 1 year. The Frequency of 54.17% investors is
investing for 1 to 6 month. Only 3.33% investor are interested to invest
for more than 5 years and 16.67% investor are interested to invest for 1
to 5 years. Here series1 shows the series of investor‘s preferences of
duration for invest in equity.
More than 5 years
No. of Respondent
Percentage
Yes
4
3.33%
No
116
96.67%
Total
120
100%
Duration
0
20
40
60
80
100
120
Less than 1month
1 - 6 month 6 month - 1year
1 - 5 year More than 5year
72
65
81
20
4
48
55
39
100
116
No.
of
Respondent
Duration
Yes
No
Buying behavior of investors regarding demat and trading in equity services in surat city
73 Bhagwan Mahavir College of Management
Q.6 Through which media you first came to know about brand in which you are investing in equities?
Purpose of the question:
This question is asked to the respondents to know the effectiveness of
media. How different people come to know about the brand in which they
are investing in equities. This question helps us to identify the most
effective media to communicate.
Non Personal Media
Television
No. of
Respondent
Percentage
Yes
108
90.00
No
12
10.00
Total
120
100.0
Newspaper
No. of Respondent
Percentage
Yes
115
95.83
No
05
4.17
Total
120
100.0
Magazine
No. of
Respondent
Percentage
Yes
2
1.67
No
118
98.33
Total
120
100.0
Hoardings
No. of Respondent
Percentage
Yes
3
2.5
No
117
97.5
Total
120
100.0
Buying behavior of investors regarding demat and trading in equity services in surat city
74 Bhagwan Mahavir College of Management
From the table it is found that people come to know about various
brands form different non personal media. In this News paper plays a
very important role. 95.83% respondents come to know about their brand
from Newspaper. 90.00% from television, 1.67% from magazine, 2.5%
from Hoardings & 62.5% from Internet. The Bar chart represent the
frequency of different Non personal media channel through investor are
come to know about the brand in which they are investing in equities.
Internet
No. of Respondent
Percentage
Yes
75
62.5
No
45
37.5
Total
120
100.0
0
20
40
60
80
100
120
Television Newspaper Magazine Hoardings Internet
108
115
2 3
75
12
5
118 117
45
No
. of
Re
spo
nd
en
t
Non Personal media
Yes
No
Buying behavior of investors regarding demat and trading in equity services in surat city
75 Bhagwan Mahavir College of Management
Q.7 Who first introduce/initiate you with Demat account while
opening a Demat account for trading in equity service?
Purpose of the question:
This question is asked to the respondents to know the role of initiator.
This question helps us to identify the most effective persons to
communicate.
Initiator:
Self
No. of Respondent
Percentage
Yes
74
61.67
No
46
38.33
Total
120
100.0
Children
No. of Respondent
Percentage
Yes
2
1.67
No
118
98.33
Total
120
100.0
Friend
No. of Respondent
Percentage
Yes
54
45.00
No
66
55.55
Total
120
100.0
Relative
No. of
Respondent
Percentage
Yes
38
31.67
No
82
68.33
Total
120
100.0
Buying behavior of investors regarding demat and trading in equity services in surat city
76 Bhagwan Mahavir College of Management
Spouse
No. of Respondent
Percentage
Yes
3
2.5
No
117
97.5
Total
120
100.0
Parents
No. of Respondent
Percentage
Yes
1
0.83
No
119
99.17
Total
120
100.0
Broker
No. of Respondent
Percentage
Yes
62
51.67
No
58
48.33
Total
120
100.0
Buying behavior of investors regarding demat and trading in equity services in surat city
77 Bhagwan Mahavir College of Management
From above table it is found that 61.67% people are initiated by
themselves. 45.00% people are introduced to Demat Account and trading
in equity services by their friend, 51.67% people are introduced by
broker, 31.67% by relative, 1.67% by children, 2.5% by spouse, .83% by
parents. So self, friend, broker are covering much more for initiating to
open an account for trading in equities.
0
20
40
60
80
100
120
Self Children Friend Spouse Parents Broker Others
112
5 7 5 0
3 0
8
115 113 115 120
117 120
No.
of
Respondent
Initiator
Yes
No
Buying behavior of investors regarding demat and trading in equity services in surat city
78 Bhagwan Mahavir College of Management
Q.8 Who are the user/s of DEMAT account?
Purpose of the question:
This question is asked to the respondents to know the role of user. This
question helps us to identify the other person who is involved with
investor & who influence the investor.
User/s:
Self
No. of Respondent
Percentage
Yes
112
93.33
No
8
6.67
Total
120
100.0
Children
No. of Respondent
Percentage
Yes
5
4.17
No
115
95.83
Total
120
100.0
Friend
No. of
Respondent
Percentage
Yes
7
5.83
No
113
94.17
Total
120
100.0
Spouse
No. of Respondent
Percentage
Yes
5
4.17
No
115
95.83
Total
120
100.0
Buying behavior of investors regarding demat and trading in equity services in surat city
79 Bhagwan Mahavir College of Management
From above table it is found that 93.33% are the self user. They are the
sole user, 5.83% are the user with friend, 4.17% are the user with spouse
and with children And only 2.5% tells that user are broker only.
Broker
No. of
Respondent
Percent
Yes
3
2.5
No
117
97.5
Total
120
100.0
0
20
40
60
80
100
120
Self Children Friend Spouse Parents Broker Others
112
5 7 5 0 3 0
8
115 113 115 120 117 120
No.
of
Respondent
User's
Yes
No
Buying behavior of investors regarding demat and trading in equity services in surat city
80 Bhagwan Mahavir College of Management
Q.9 Which of the following member helps you in taking decision
regarding investment in equities?
Purpose of the question:
This question is asked to the respondents to know the role of .decider.
This question helps us to identify the person who helps investor to taking
decision.
Decider:
Self
No. of
Respondent
Percentage
Yes
104
86.67
No
16
13.33
Total
120
100.0
Children
No. of Respondent
Percentage
Yes
10
8.33
No
110
91.67
Total
120
100.0
Friend
No. of Respondent
Percentage
Yes
41
34.17
No
79
65.83
Total
120
100.0
Relative
No. of Respondent
Percentage
Yes
32
26.67
No
88
73.33
Total
120
100.0
Buying behavior of investors regarding demat and trading in equity services in surat city
81 Bhagwan Mahavir College of Management
Spouse
No. of Respondent
Percentage
Yes
5
4.17
No
115
95.83
Total
120
100.0
Parents
No. of
Respondent
Percentage
Yes
5
4.17
No
115
95.83
Total
120
100.0
Broker
No. of Respondent
Percentage
Yes
66
55.00
No
54
45.00
Total
120
100.0
Buying behavior of investors regarding demat and trading in equity services in surat city
82 Bhagwan Mahavir College of Management
From above table it is found that 86.67% investors‘ takes help from
themselves, 34.17% their friends, 26.67% from relatives, 8.33% from
children, 4.17% form parents and from spouse, 55.00% from friend for
trading in equities.
0
20
40
60
80
100
120
Self Children Friend Relative Spouse Parents Broker Others
104
10
41
32
5 5
66
16
110
79
88
115 115
54
No.
of
Respondent
Desider
Yes
No
Buying behavior of investors regarding demat and trading in equity services in surat city
83 Bhagwan Mahavir College of Management
Q.10 Rate the following parameters for investment in equity
services according to its importance.
Purpose of the question:
This question is asked to know the importance level for different
parameters. These are the different parameters of trading in equity
services.
Parameters:
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied Highly Satisfied
Brand Name 0 0 1 20 99
Brokerage 0 0 2 32 86
Knowlege 0 0 0 23 97
Mobile Trading
0 3 9 41 67
Staff response 0 0 2 46 72
Quick service 0 0 2 34 84
Time for fund
transfer 0 0 1 25 94
Infrastructure 0 0 15 52 53
SMS Facility 0 0 9 41 70
Monthly a/c transation
report
0 0 2 24 94
Advisory Support
0 1 1 31 87
Portfolio
Management Service
0 1 15 39 65
Buying behavior of investors regarding demat and trading in equity services in surat city
84 Bhagwan Mahavir College of Management
From above table it is found that respondents are considering Brand
Name as one of the important parameters. Other important parameters
are knowledge, brokerage, Time for fund transfer, Monthly a/c
transaction report, Advisory support, Quick service, staff response, SMS
facility While Mobile Trading, Portfolio Management System and
infrastructure Facility falls between Neutral and Important.
0 20 40 60 80 100
Brand Name
Brokerage
Knowlege
Mobile Trading
Staff response
Quick service
Time for fund transfer
Infrastructure
SMS Facility
Monthly a/c transation report
Advisory Support
Portfolio Management Service
0
0
0
0
0
0
0
0
0
0
0
0
20
0
0
3
0
0
0
0
0
0
1
1
1
2
0
9
2
2
1
15
9
2
1
15
20
32
23
41
46
34
25
52
41
24
31
39
99
86
97
67
72
84
94
53
70
94
87
65
No. of Respondent
Para
mete
r's
Highly Satisfied
Highly DissatisfiedSatisfied
Highly DissatisfiedNeutral
Highly DissatisfiedDissatisfied
Highly Dissatisfied
Buying behavior of investors regarding demat and trading in equity services in surat city
85 Bhagwan Mahavir College of Management
Q-11 Rate the following parameters for investment in equities
services according to your satisfaction.
Purpose of the question:
This question is asked to know the satisfaction level for different
parameters. These are the different parameters of trading in equity
services.
Parameters:
Highly
Dissatisfied Dissatisfied Neutral Satisfied
Highly Satisfied
Brand Name 0 0 46 66 8
Brokerage 0 0 54 66 0
Knowlege 0 0 43 73 7
Mobile
Trading 0 2 84 32 2
Staff response 0 0 72 47 1
Quick service 0 1 66 50 3
Time for fund
transfer 0 2 63 52 3
Infrastructure 0 0 85 32 3
SMS Facility 0 4 69 45 2
Monthly a/c
transation report
0 0 62 53 5
Advisory
Support 0 2 64 54 0
Portfolio Management
Service
0 5 73 39 3
Buying behavior of investors regarding demat and trading in equity services in surat city
86 Bhagwan Mahavir College of Management
From above table it is found that respondents are mostly satisfied with
parameters like Brokerage, Brand Name and Knowledge. Other important
parameters are Time for fund transfer, Monthly a/c transaction report,
Advisory support, Quick service, staff response, SMS facility, Portfolio
Management System While Mobile Trading and infrastructure Facility
falls between Neutral and Important.
0 50 100
Brand Name
Brokerage
Knowlege
Mobile Trading
Staff response
Quick service
Time for fund transfer
Infrastructure
SMS Facility
Monthly a/c transation report
Advisory Support
Portfolio Management Service
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2
0
1
2
0
4
0
2
5
46
54
43
84
72
66
63
85
69
62
64
73
66
66
73
32
47
50
52
32
45
53
54
39
8
0
7
2
1
3
3
3
2
5
0
3
No. of Respondent
Para
mete
rs
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Buying behavior of investors regarding demat and trading in equity services in surat city
87 Bhagwan Mahavir College of Management
CHAPTER 5
FINDINGS AND CONCLUSIONS
Buying behavior of investors regarding demat and trading in equity services in surat city
88 Bhagwan Mahavir College of Management
Chapter : 5 Findings and Conclusions
It is found that most of the respondents are aware by the brand name
SHAREKHAN (37.5%), Angle Broking (15%), Motilal Oswal (12.5%).
One of the reasons is found that these are the brands which are
existed into market for longer period of time. Then the preferences for
Other local brands (11.66), Relience money (7.5), Indiainfoline (5%)
and 5paisa and Kotak securities (4.17%) which are new players, and
HDFC securities (2.5%).
85.83% investor‘s prefer online trading while only 14.17% investor‘s
prefer offline trading.
The most popular type of trading among the investors is Delivery Type
(95.83%), Intraday (79.17%) and Future & Option (70%).
Most of the respondents (67.5%) are trading in equity for 6 month - 1
year. So as they are new in the equity trading they are more conscious
about the services provided by the broker.
As there are many information sources available but the most effective
communication source in Surat city is Television (95.33%) and then
News Paper (90.00%) and Internet (62.5%).
While communicating to the investors/prospects the most effective
initiator in social group for trading in equity is firstly the person
himself/herself (61.67%) and then friend (45.00%).
Mostly the role of user is performed by the respondent him/her self
(93.33%) and then in minor case by the friend (5.88%).
Buying behavior of investors regarding demat and trading in equity services in surat city
89 Bhagwan Mahavir College of Management
While taking decision regarding to investment in equity most of
respondent are taking help of him/her self (86.67%) and other mostly
by Broker (26.67%).
Respondents are mostly satisfied with parameters like Brokerage,
Brand Name and Knowledge While Mobile Trading and infrastructure
is very negative and it found that investors are dissatisfied with these
parameters.
Four important factors are identified which are as follows:
1. Customer Care:
2. Brand Image:
3. Personal Trading Facility:
4. Trading at Branch Facility:
Buying behavior of investors regarding demat and trading in equity services in surat city
90 Bhagwan Mahavir College of Management
CHAPTER 6
RECOMMENDATIONS
Buying behavior of investors regarding demat and trading in equity services in surat city
91 Bhagwan Mahavir College of Management
Chapter: 6 Recommendations
1. In terms of brand preferences SHAREKHAN got 1st rank. To increase
the level of awareness among the people of Surat city it is
recommended to communicate the strengths and services of
SHAREKHAN by non personal media like Internet, Television and
News Paper and personnel media like Brokers or Sales persons.
2. The most popular type of trading in Surat city is Delivery. People are
not still more focusing on Commodity type of trading, so it is good
opportunity for SHAREKHAN to initiate Commodity Type of trading.
3. 67.5% investors are trading for 6 month-1 year or less than that
period which shows that still there is good potential for SHAREKHAN
to increase its market share.
4. While communicating to people it is recommended to target the people
(prospects) directly or their friends (Decider).
5. It is also recommended that main user are individual themselves so
try to target your prospect directly.
6. It is recommended to focus on the segment of age group having age of
18 - 30 years.
7. It is recommend focusing on the parameters like Advisory support,
Brand Image, Online trading facility, offline trading Facility.
8. Investors are dissatisfied with parameters like Mobile Trading,
Infrastructure facility and portfolio management System. So it is
recommended to concentrate on those aspects.
Buying behavior of investors regarding demat and trading in equity services in surat city
92 Bhagwan Mahavir College of Management
Scope of Further Study
1. From my research I have solved aspects of non personal
communication media, different buying roles, important parameters
for trading in equity services and the satisfaction level for different
parameters.
2. For further Sharekhan can go for the study relating to satisfaction
measurement for their services.
3. Also they can do study regarding requirements of the different market
segments.
Buying behavior of investors regarding demat and trading in equity services in surat city
93 Bhagwan Mahavir College of Management
BIBLIOGRAPHY
BOOKS:
1. Nargundkar Rajendra, Marketing Research 2nd addition, New Delhi,
Tata Mcgraw-Hill Publishing (2005). ( PAGE NO. 187 -333)
2. Kottler Philip, Marketing Management, analysis, planning
implementation and control, Prentice Hall of India Publishing, New
Delhi.2002. ( PAGE NO. 65-122)
3. Schiffman G.Leon., Consumer Behaviour, Prentice Hall of India
Pvt. Ltd., New Delhi 2001.( PAGE NO. 22-98)
WEBSITES:
www.sharekhan.com
http://www.searchindia.com/search/Business/Money_and_Banki
ng/Stock_Brokers/index2.shtml
http://www.tribuneindia.com/2001/20010326/login/main3.htm
http://www.sykronix.com/tsoc/courses/sales/sls_cons.htm
http://www.udel.edu/alex/chapt6.html
http://www.iimb.ernet.in/iimb/html/man-review-article-
01.jsp?aid=241&edition=19&isvol=15&issueno=4
http://inhome.rediff.com/money/2003/may/02spec.htm
http://72.14.235.104/search?q=cache:ghE3kAiD9IJ:www.ficci.co
m/realestatesummit2006/htruf/Backgroundpaper2004.doc+Findi
ngs+on+buying+behaviour+regarding+investment+service+in+India
&hl=en&ct=clnk&cd=1&gl=in
http://www.knowthis.com/tutorials/principles-of-marketing/consumer-
buying-behavior/12.htm
Buying behavior of investors regarding demat and trading in equity services in surat city
94 Bhagwan Mahavir College of Management
APPENDIX
QUESTIONNAIRE:
I am Patel Nital, pursuing MBA from Bhagwan Mahavir College of
Management at Surat city. As a part of our curriculum, I am working on
a research project, titled
“TO STUDY BUYING BEHAVIOR OF INVESTORS REGARDING DEMAT
AND TRADING IN EQUITY SERVICES IN SURAT CITY”
I seek your kind co-operation in this regard & request you to fill up the
Questionnaire. This study is for academic purpose only. No information
shall be disclosed anywhere else.
Kindly Answer following Questions with your keen Interest and dedicated
Attention:
1) Which of the following brand for DEMAT account and trading in
equities have you ever deal in Surat city?
[TICK AS MANY AS APLLY]
2) At which brand(s) you are investing in equities?
3) Which type of trading do you prefer?
Online Offline
Indiainfoline Ltd
Motilal Oswal Ltd
HDFC Securities
Reliance Money
Sharekhan
Angel Broking
5paisa.com
Kotak Securities
Other please specify:
Buying behavior of investors regarding demat and trading in equity services in surat city
95 Bhagwan Mahavir College of Management
4) Which of the following type of trading transaction you perform?
[TICK AS MANY AS APLLY]
5) For how long you are investing in equities? [TICK AS MANY AS APLLY]
6) Through which media you first came to know about brand in which you are investing in equities? [TICK AS MANY AS APLLY]
7) Who first introduce/initiate you with Demat account while opening a
Demat account for trading in equity service? [TICK AS MANY AS APLLY]
8) Who are the user/s of DEMAT account? [TICK AS MANY AS APLLY]
Future & option
Other please specify____________.
Magazine
Hoardings
Spouse
Parents
Broker
Other please specify_____________.
Spouse
Parents
Broker
Intraday
Delivery
Less than 1 Month
More than 1 Month to 6 Months
More than 6 Months to 1 Year
More than 1 Year to 5 Years
More than 5 Years
Television
News paper
Other please specify
Self
Children (Age => 18 y)
Relative
Friend
Self
Children (Age => 18 y)
Friend
Other please specify
Buying behavior of investors regarding demat and trading in equity services in surat city
96 Bhagwan Mahavir College of Management
9) Which of the following member helps you in taking decision regarding investment in equities? [TICK AS MANY AS APLLY]
10) Rate the following parameters for investment in equities services according to its importance.
Where,
Parameter :
Brand Name……………………………
Brokerage……………………………….
Knowledge………………………………
Mobile Trading…………………………
Staff Response………………………...
Quick service……………………………
Time for fund Transfer……….........
Infrastructure facility………………..
SMS facility……………………………..
Monthly a/c transaction report……
Advisory support………………………
Portfolio Management System…….
Spouse
Parents
Broker
Other please specify__________.
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 = Highly Dissatisfied
2 = Dissatisfied
3 = Neutral
4 = Satisfied
5 = Highly Satisfied
Self
Children (Age => 18 y)
Relative
Friend
Buying behavior of investors regarding demat and trading in equity services in surat city
97 Bhagwan Mahavir College of Management
11) Rate the following parameters for investment in equities services according to your satisfaction.
Where,
Parameter:
Brand Name……………………………
Brokerage……………………………….
Knowledge………………………………
Mobile Trading…………………………
Staff Response………………………...
Quick service……………………………
Time for fund Transfer……….........
Infrastructure facility………………..
SMS facility……………………………..
Monthly a/c transaction report……
Advisory support………………………
Portfolio Management System……..
12) Any suggestions that will help you to improve your satisfaction level.
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 = Highly Dissatisfied
2 = Dissatisfied
3 = Neutral
4 = Satisfied
5 = Highly Satisfied
Buying behavior of investors regarding demat and trading in equity services in surat city
98 Bhagwan Mahavir College of Management
Name:
Contact No:
E-mail id:
Sex: Male Female
Age Group:
Income Group: [Monthly family income in rupees]
Education:
Occupation:
31 years - 40 years
Above 50 years
10,001 – 25,000
50,001 – 1,00,000
Service
Student
Other please specify__________.
18 years - 30 years
41 years - 50 years
Less than 10,000
25,001 – 50,000
Above 1,00,000
Business
Retired
Professional
S.S.C
H.S.C
Graduate
P.G
Other please specify__________
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