A Study On Customer Satisfaction Towards On-line Share Trading With Special Reference To Coimbatore City

A STUDY ON CUSTOMER SATISFACTION TOWARDS ON-LINE SHARE TRADING WITH SPECIAL REFERENCE TO COIMBATORE CITY Project Report Submitted By R. Vishnu [Reg.No.07PT024]

Under the guidance of Mr. N. SARAVANABHAVAN M.Com, M.Phil, PGDCA In Partial Fulfillment of the Requirements for the Award of Advanced Diploma in Sales Promotion Management as a part of the Degree of Master of Science (Finance and Computer Applications)

DEPARTMENT OF FINANCE AND COMPUTER APPLICATIONS S.N.R. SONS COLLEGE (AUTONOMOUS) (An ISO 9001:2000 Certified Institution & Re-accredited by NAAC) NOVEMBER -2008

Declaration

Declaration I hereby declare that this project work entitled “A Study on Customer Satisfaction Towards on-line share trading with special reference to Coimbatore City” is submitted in partial fulfillment of the requirement for the award of Advanced Diploma in Sales Promotion Management as a part of the Degree of Master of Science (Finance and Computer Applications) is an original work done by me and this project work has not formed the basis for the award of any degree/ diploma/ fellowship/ associateship similar title to any candidate of any university.

(R. VISHNU)

Certifi cate

Certificate

This is to certify that the project work entitled ‘A Study on Customer Satisfaction Towards On-line Share Trading with special reference to Coimbatore City’, submitted in partial fulfillment of the requirement for the award of Advanced Diploma in Sales Promotion Management as a part of the Degree of Master of Science (Finance and Computer Applications) is a record of original work done by Mr.R. VISHNU. (Reg.No.07PT024) under my supervision and guidance.

Supervisor

Head of Department

( N. SARAVANABHAVAN )

( R. SRINIVASAN )

Submitted for the Viva-Voce Examination held on

Internal Examiner

External Examiner

Acknowled gement

Acknowledgement I wish to express my sincere gratitude to our beloved Managing Trustee

SEVARATNA Dr. R.VENKATESALU for allowing me to participate in this program.

I

would

like

to

take

this

opportunity

to

thank

our

beloved

Dr. V. SENGODAN, the Principal and Secretary, S.N.R. SONS COLLEGE for the initiatives and inspirations provided to perform the work. I offer my sincere thanks to Prof R. SRINIVASAN, M.Com., M.Phil., Head of the Department, M.Sc(Finance and Computer Applications) for all the valuable guidance and support rendered at all stages of my project to bring it out as a successful work.

I acknowledge my sincere thanks to Mr. N. SARAVANABHAVAN,

M.Com, M.Phil, PGDCA., Lecturer and Staff in the department of M.Sc(Finance and Computer Application) my faculty guide for the valuable guidance, suggestions and encouragement from time to time throughout my project.

I would also like to thank all the faculty members of the department for their support and advice throughout the study.

Chapter –1

Introduction and Design of the study

CHAPTER -1 INTRODUCTION AND DESIGN OF THE STUDY Introduction: India is a developing economy. Its prospering in all spheres. Share Market is a compelling determinant of the economy and the financial situation of a country. Ever since the liberalization, privatisation and globalisaton, the foreign investment in our country is booming. Share Market is a clear indicator of the developing trend prevailing in our country. Statistics reveal that the trade volume has been increasing continuously, coupled with the ups & downs which is a nature of share trading. We are living in an interlinked world. With growing volume of trade, it has become a necessity that people are aware of the intricacies of the web world.

SENSEX the benchmark indicator of share trading has more than tripled ever since on-line share trading commenced. It has become imperative to be a participant of this mode of trading. Recently, the crisis in the financial market resulted in global inflation. The share market was a clear indicator of the prevailing prices.

Statement of the problem: Share trading is a way for faster earning and losing money. In the recent years, a volatile market could be witnessed. In the desire to earn money in a quick manner, more and more people have ventured out into share trading. Lack of awareness of many investors have made them loose lakhs of money in the Stock Market. Wise play by many others have made them earn in crores. At such a time, it would be interesting to know the attitude of the players and the conditions in the market. A survey about investors and the share market in such a time would be educative to tomorrow’s investors. It could also lead to improvements in the conditions prevailing in Coimbatoe City that would facilitate increase in the share trading. Several website provide information about the stock market. They educate people about share trading and guide them through each step. On-line share trading has become so common. Still, many of them are unaware of the intricacies involved in share trading. Where the American NASDAQ is in the commanding position, Hongkong, Tokyo etc are some of the asian exchanges being quoted repeatedly when it comes to

news about the share market. SENSEX is not far behind. Indian bourses are also often quoted. Our Finance Minister P. Chidambaram is always optimistic when it comes to the role of the stock markets in the economy. Quite often, we hear that the markets are down or they are in an upbeat. Conditions being such, it is necessary to take stock of the market activity and the awareness of the investors in our town.

Objectives of the Study: 1. To understand the attitude of the on-line share traders in Coimbatore. 2. To measure the effectiveness of broking sites in Coimbatore. 3. To conduct an enquiry among the share trading public in Coimbatore about their experience with broking sites. 4. To suggest some improvements in these sites if need be. 5.

To understand the depth up to which the on-line share traders are clear and aware of on-line share trading.

Research Methodology: Research is a systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. According to Clifford Woody, Research comprises defining and re-defining the problem, formulating hypothesis or suggesting solution, collecting, collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulated hypothesis Research Design:

A Reseach design is an arrangement of conduction for collection and analysis of data in a manner that aims to combine relevant to a research purpose with economy in procedure. The research designs adopted for the study are analytical in nature.

Scope of the study: It would be helpful to take stock of the prevailing trend of the investor public in any city. This study is aimed at collecting information from the share investing public of Coimbatore with respect to Online-share trade.

Limitations of the study: The objective of this study is to understand the conditions prevailing among the investing public. Considering the cost involved, time factor and lack of awareness of efficient data gathering techniques and tools for analysis, all the online-share trading public may not be covered. It may not be possible to arrive at the exact value of the findings. Tools used for Analysis: The tool employed here is Percentage Analysis. The total of the data collected under one factor are summed up and their percentage is calculated. Suppose we consider 10 factors with 5 attributes for each factor. Each attribute is given ranks. The values are added and the percentage for each attribute is calculated. These values are used for analysis. This is Percentage Analysis.

Chapter Scheme

Chapter 1 :

INTRODUCTION AND DESIGN OF THE STUDY

This chapter represents Introduction about On-line share trading, Objectives of the study, Research Methodology, Scope of the study, Limitations of the study and the Tool used for analysis

Chapter 2 :

THEORY OF SHARE MARKET

This chapter gives an overview of share trading, the rules, practices and about the share market

Chapter 3 :

ANALYSIS AND INTERPRETATION

This chapter deals with the analysis of the data collected and interpretation of the data Chapter 4 :

FINDINGS, SUGGESTIONS AND CONCLUSION

This chapter provides a brief summary of the findings and includes suggestions to improve on-line share trading in Coimbatore city.

Chapt er 2

Theory

of

Share Market

CHAPTER - 2 THEORY OF SHARE MARKET Stock Exchange :- A common platform where buyers and sellers come together to transact in stocks and shares. It may be a physical entity where brokers trade on a physical trading floor via an "open outcry" system or a virtual environment.

Electronic Trading :- Electronic trading eliminates the need for physical trading floors. Brokers can trade from their offices, using fully automated screen-based processes. Their workstations are connected to a Stock Exchange's central computer via satellite using Very Small Aperture Terminus (VSATs). The orders placed by brokers reach the Exchange's central computer and are matched electronically.

Stock Exchanges in India :- The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) are the country's two leading Exchanges. There are 20 other regional Exchanges, connected via the Inter-Connected Stock Exchange (ICSE). The BSE and NSE allow nationwide trading via their VSAT systems. Index :- An Index is a comprehensive measure of market trends, intended for investors who are concerned with general stock market price movements. An Index comprises stocks that have large liquidity and market capitalisation. Each stock is given a weightage in the Index equivalent to its market capitalisation. At the NSE, the capitalisation of NIFTY (fifty selected stocks) is taken as a base capitalisation, with the value set at 1000. Similarly, BSE Sensitive Index or Sensex comprises 30 selected stocks. The Index value compares the day's market capitalisation vis-a-vis base capitalisation and indicates how prices in general have moved over a period of time. Stock :- The word stock simply refers to a supply. You may have a stock of Tshirts in your closet, or a stock of pencils in your desk. In the financial market, stock refers to a supply of money that a company has raised. This supply comes from people who have given the company money in the hope that the company will make their money grow. A market is a public place where things are bought and sold. The term "stock market" refers to the business of buying and selling stock. The stock market is not a specific place, though some people use the term "Wall Street"—the main street in New York City's financial district—to refer to the U.S. stock market in general. Why Companies issue stock :- If a company wants to grow—maybe build more factories, hire more people, or develop new products—it needs money. It could get a loan from a bank. But then it would owe money. By issuing stock, a company can raise money without going into debt. People who buy the stock are giving the company the money it needs to grow.

Not every company can issue stock. A business owned by one person (a proprietorship) or a few people (a partnership) cannot issue stock. Only a business corporation can issue stock. A corporation has a special legal status. Like a school, its existence does not depend on the people who run it. Under the law it is separate from the people associated with it, and has special legal rights and responsibilities as well as its own unique name. Why People Buy it :- Owning stock in a company means owning part of that company. Each part is known as a share. If a company has issued 100 shares of stock, and you bought one, you own 1% of that company. People who own stock are called stockholders, or shareholders. Stockholders hope the company will earn money as it grows. If a company earns money, the stockholders share the profits. Over time, people usually earn more from owning stock than from leaving money in the bank, buying bonds, or making other investments Funny fractions :- In April 2002, all stock exchanges in the U.S. began trading their stocks in dollars and cents. For instance, the price of a particular stock might go up $1.10. This means that the price of a stock increased $1.10 over its previous price. If a share of stock had been worth $10, it would now be worth $11.10. This is different from the earlier system, when stocks were traded in fractions based on 1/8th. If a stock worth $10 went up 1 and 5/8ths, it meant that the stock had risen $1 plus 5/8ths of a dollar in price, or a total of $1.62. In other words, if each share had been worth $10 previously, it would now be worth $11.62. But why divide each dollar into eighths when it could simply be divided into hundredths—a hundred pennies, to be exact? It's because the U.S. dollar is a relatively new kind of currency. When the stock market opened at the end of the eighteenth century, prices were based on the Spanish dollar, which is divided into eighths.

Bears and Bulls :- Bears are cautious animals who don't like to move too fast. Bulls are bold animals who might charge right ahead. An investor is said to be "bearish" if he or she believes the stock market will go down. A "bearish" investor will buy stock cautiously. A "bullish" investor believes the market will go up. He or she will charge ahead and put more money into the market. An investor can be bearish or bullish about a particular kind of stock. Likewise, the term "bear market" describes a time when stock prices have been falling on the whole. A "bull market" is a period when stock prices are generally rising.

Chapt er 3

Analysis and Interpretation

CHAPTER - 3 ANALYSIS AND INTERPRETATIONS The data collected from the customers were systematically applied and they are presented as tables under various headings in the following pages. They are also arranged in such a way that a detailed analysis can be made so as to present suitable interpretations for the same.

TABLE -1

TABLE SHOWING AGE GROUP OF RESPONDENTS

S. No Age No. of Respondents 1 Below 30 years 29 2 30 – 50 years 16

Percentage 41% 37%

3

Below 50 years TOTAL

15 70

22% 100%

The above table indicates that out of the total number of respondents, 41% of the respondents were below 30 years of age, 37% of the respondents were between 30 years and 50 years and 22% of the respondents were above 50 years of age. It shows that majority of the respondents were below 30 years

TABLE -2

TABLE SHOWING THE GENDER RATIO OF THE RESPONDENTS

S. No 1 2

Gender Male Female TOTAL

No. of Respondents 42 28 70

Percentage 60% 40% 100%

The above table indicates that out of the total respondents, 60% of the respondents were Male and 40% were Female

TABLE- 3 EDUCATIONAL QUALIFICATION

S. No 1 2 3

Qualification School level Diploma Under

No. of Respondents 5 12 35

Percentage 7% 17% 50%

4

graduate Post graduate TOTAL

18 70

26% 100%

The above table shows that out of 70 respondents, 5 have school level education, 12 having Diploma, 35 of them Under graduates and 18 of them hold Post Graduate level of education.

TABLE - 4 INCOME

S. No Income No. of Respondents Below 10000 1 18 P.M. 10000 – 20000 2 40 P.M. 20000 – 30000 3 11 P.M. Above 30000 4 1 P.M.

Percentage 26% 57% 16% 1%

TOTAL

70

100%

The above table indicates that out of the total respondents, 26% of the respondents had an income below Rs. 10,000 per month, 57% of the respondents had income in the range of Rs. 10,000 and Rs. 20,000, 16% of the respondents had income in the range of Rs. 20,000 and Rs. 30,000 and 1% of the respondents had income above Rs. 30,000

TABLE - 5 INDUCING FACTOR

S. No 1 2 3

Inducing factor Friends On-line advt. Financial Consultant TOTAL

No. of Respondents

Percentage

40 10

57% 14%

20

29%

70

100%

The above table indicates that out of the total respondents, 57% of the respondents were induced by Friends into On-line share trading, 14% of the respondents were induced by On-line advertisements and 29% of the respondents were induced by Financial Consultants.

CHART- 1 INDUCING FACTOR

40 35 30 25

Frds O-ad FC

20 15 10 5 0

Frds = Friends O-ad = On-line advertisement FC

= Financial Consultant

TABLE - 6 INTERNET ACCESS

S. No 1

Internet Access Place Home

No. of Respondents 19

Percentage 27%

2 3

Stock Broker Office Browsing Centre TOTAL

33 18 70

47% 26% 100%

The above table indicates that out of the total respondents, 27% of the respondents were accessing Internet for Share trading at home, 47% of the respondents were accessing internet for Share trading at the Stock Brokers Office and 26% of the respondents were accessing internet for Share trading at Browsing Centres

TABLE - 7 TRADING PERIODICITY

S. No 1 2 3 4

Trading Periodicity Daily basis Weekly basis Monthly basis Irregular TOTAL

No. of Respondents 31 20 5 14 70

Percentage 14% 29% 7% 20% 100%

The above table indicates that out of the total respondents, 14% of the respondents were doing On-line Share trading on a daily basis, 29% of the respondents were doing On-line Share trading on a Weekly basis, 7% of the respondents were doing On-line Share trading on a monthly basis and 20% of the respondents were doing On-line Share trading on an irregular basis.

CHART - 2 TRADING PERIODICITY

35 30 25 Daily Weekly Monthly Irregular

20 15 10 5 0

TABLE - 8 SHARE BROKING COMPANY S. No 1 2 3 4

Share Broking Company No. of Respondents Anandrathi 12 Karvy 18 Sharekhan 12 Geojit 14

Percentage 17% 26% 17% 20%

5 6

Il%FS Others TOTAL

11 3 70

16% 4% 100%

The above table indicates that out of the total respondents, 17% of the respondents chose Anandrathi as their broker to do On-line Share trading, 26% of the respondents chose Karvy as their broker to do On-line Share trading, 17% of the respondents chose Sharekhan as their broker to do On-line Share trading, 20% of the respondents chose Geojit as their broker to do On-line Share trading, 16% of the respondents chose IL&FS as their broker to do On-line Share trading and 4% of the respondents chose other firms like Motilal as their broker to do Online Share trading.

CHART - 3 SHARE BROKING COMPANY

18 16 14 12

Anandrathi Karvy Sharekhan Geojit Il&FS others

10 8 6 4 2 0

TABLE - 9 INFRASTRUCTURE OPINION

S.No 1

Rating Poor

No. of Respondents 15%

Percentage 21%

2 3

Average Good TOTAL

20% 15% 70

58% 21% 100%

The above table indicates that out of the total respondents, 21% of the respondents rate the Telecommunication and Internet facility in Coimbatore city as Poor, 58% of the respondents rate the Telecommunication and Internet facility in Coimbatore city as Average and 21% of the respondents rate the Telecommunication and Internet facility in Coimbatore city as Good.

CHART - 4 INFRASTRUCTURE OPINION

40 35 30 25

P

20

A G

15 10 5 0

P = Poor A = Average G = Good

TABLE - 10 BANK RELATED ACTIVITIES

S. No 1

Rating Very Good

No. of Respondents Percentage 12 17%

2 3 4

Good Average Satisfactory TOTAL

33 23 2 70

47% 32% 4% 100%

The above table indicates that out of the total respondents, 17% of the respondents grade the Bank Related Activities of their Share Broking Company as Very Good, 47% of the respondents grade the Bank Related Activities of their Share Broking Company as Good, 32% of th respondents grade the Bank related activities of their Share Broking Company as Average and 4% of the respondents grade the Bank related activities of their Share Broking Company as Satisfactory.

CHART - 5 BANK RELATED ACTIVITIES

35 30 25 VG G A S

20 15 10 5 0 VG = Very Good G

= Good

A

= Average

S

= Satisfactory

Chapt er 4

Findings, Suggestions Conclusion

&

CHAPTER - 5 FINDINGS, SUGGESTIONS & CONCLUSION FINDINGS: The study has revealed the nature of the share investors, share broking firms and investment atmosphere in Coimbatore. * Its good to note that the younger generation is more involved in on-line share trading. * Men are more into this investment mode. * Post graduate investors are found to be more in this study. * People in the beginning of their earning life seem to be more involved in on-line share trading. * Married men and women have found on-line share trading as a source for extra income. * Friends have been the major inducing factor towards on-line share trading. * Most of the respondents access the internet at the stock brokers office and they access it on all business days. * Only less than 1/3rd of the investors are professionals Coimbatoreans show equal consideration towards the trading sites. * The investors of the Manchester of South India are interested in getting more information about the stock prices etc. * 50% of the on-line share trading respondents here rate the infrastructure facility in this town as average. * Majority of the respondents grade the bank associated activities of their on-line trading site as Good.

SUGGESTIONS: Share trading in Coimbatore city seems to be good. To improve the volume of share trade in Coimbatore city, these could be implemented a) Conducting more awareness among the public through local media. b) Training camps on the methods of on-line trade could be conducted. c) Telecommunication and Internet provision could be further enhanced. d) Share trading could be highlighted as a means to earn income for the commerce graduates e) House wives could be educated in ladies clubs etc.

CONCLUSION: The purpose of this study is well achieved. The day is not far when there would be free internet access in this city. Its delightful to note that the investors are eager to be updated about the market situation. Considering the ongoing trend in Coimbatore city, the infrastructure for on-line share trading will improve in the city and there would be hike in volume of share trading.

Bibliogra phy

BIBLIOGRAPHY Books 1.

Dalal Street Journal’s STOCK MARKET BOOK

2.

How to make money trading with Charts

Ashwani Gujral

2.

Investing Rules From the Masters

Philip Jenks

3.

Intelligent Stock Market Investing

N.J. Yasaswy

Journals & Magazines 1.

Business World

2.

Business India

3.

Business Today

4.

Capital Market

5.

The Economic Times

6.

Business Line

Websites 1.

www.tradersplace.in

2.

www.sharekhan.com

Appen dix

APPENDIX QUESTIONNAIRE CUSTOMER SATISFACTION TOWARDS ON-LINE SHARE TRADING WITH SPECIAL REFERENCE TO COIMBATORE CITY

1)

Name:

2)

Age: i) below 30 ii) 30 – 50 iii) above 50

[] [] []

3)

Gender: i) Male ii) Female

[] []

4)

5)

Educational Qualification i) School level i) Diploma ii) Under Graduate iii) Post Graduate iv) others – please specify _____________

[] [] [] []

Income: i) below 10,000 [] i) 10,000 – 20,000 per month [ ] ii) 20,000 – 30,000 per month [ ] iii) above 30,000 []

6)

Marital Status i) Married ii) Unmarried

7)

[] []

What induced you to begin on-line share trading? i) Reference by friends [] ii) On-line advertisements [] iii) Advice by financial consultants [ ]

8) Were you doing share trading before choosing online? i) Yes [] ii) No [] 9)

Where do you access the internet? i) Home [] ii) Stock broker office [] iii) Browsing centre []

10)How often do you do on-line share trading? i) Daily basis [] ii) Weekly basis [] iii) Monthly basis [] iv) Irregular [] 11)Are you a professional trader? i) Yes ii) No

[] []

12)Which site do you use for trading? i) Anandrathi [] ii) karvy [] iii) Sharekhan [] iv) Geojit [] v) IL&FS [] vi) if others, please state ________________ 13)Does the site guide you on on-line trading? i) Yes [] ii) No [] 14) Is the information provided by your on-line stock broker sufficient? i) Yes [] ii) No [] 15)If no, are you interested in getting more information? i) Yes [] ii) No [] 16)How would you rate the internet and telecommunication facility in Coimbatore? i) Poor [] ii) Average [] iii) Good [] 17)Does your broker site provide you with up-to-date news about IPOs (Initial Public Offer)?

i) Yes ii) No

[] []

18)How would you grade the bank associated activities of the site? i) Very Good [] ii) Good [] iii) Average [] iv) Not satisfactory []

19)Do you feel that there is more transparency in online share trading? i) Yes [] ii) No [] 20)Is the commission charged by the trading site reasonable? i) Yes [] ii) No [] 21)Are you aware of T +2 method of trading? i) Yes [] ii) No [] 22)Is on-line trading simple? i) Yes ii) No

[] []

23)Do you feel that the trading volume will increase in near future? i) Yes []

ii) No

[]

24)Does these affect you? i) Money getting blocked [] ii) Delay in receiving share certificates [ ] iii) No troubles [] 25)What are your suggestions to develop share trading in Coimbatore ?

__________________________________________.