Research Research

ABSTRACT

The consumer market for stock informative magazine and other channels is overtaken by many other channels and brokerage firms. This research is conducted to understand the consumer and demographics also many other views are noted down and evaluated in the research and analyzed with the help of the many statistical tools. The results are predicted and can be applied to various conditions in the business and used to form the right strategy. Research also concentrates on the saving pattern and what investments are preferred by the consumer the data is analyzed and predicted in the research also many such other matters are focused while studying the consumer during the depth interview.

INTRODUCTION

When we talk about investment in India it is mostly Bank fix deposit, Gold and Real estate but investment in stock market is very rare phenomena, there are many reasons why people don’t invest in the stock market which we are going to evaluate in our research. The Indian stock market e.g. BSE and NSE are mostly govern by the FII (foreign investments), if we peek up any information about the stock market the investment record will show that percentage of FII is more than DII.

We often see that there is sudden fall or rise in the Indian share market which is happens when FII is pulled out or poured in so to avoid this sudden fall or rise of share market or to have more stable share market we somehow need to increase the Indian investment in the share market and for that we need to understand the problems of not investing in the share market and try to find the suitable solution for those problems and also how we can change the perception of potential and current investor in the share market by understanding what is in their mind right now.

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Research paper

To understand the consumer preferences, perception of looking toward the stock market and basic understanding and knowledge of stock market

By *A. S. Mokase** A. B. Rajurkar

COMPETITIVE ANALYSIS

Let’s have a look at the top ten Business Magazines in India by stock market sity

Business Today

Business India

Money Today

Outlook Business

Business World

Outlook Money

Business and

Economy

Business Week

Business and

Economy

050000

100000150000200000250000300000350000400000

No. of readers

10. Franchise Plus: Data not available, fastest growing readership pulls to top.

This represents only the magazines but the total industry of stocks information provider consist of multiple channels like business news channels, newsletters and financial columns in newspaper and research reports by many mutual fund firms, online portals and mainly the brokerage firms. To survive in this competitive market you really need to have very unique features to make the presence at start and grow gradually. You need to be much focused in terms of your short term and long term goals to take the benefits of the competition.

A firm should understand its own weaknesses and the competitors strengths, there different models that can help to understand the possible strategies and the use of right marketing mix. Many magazines are very customer focused and provide very concise information as to what their customers want and expects in the near future these magazines are regularly doing that but over period of time it is observed that focus of these magazines is shifting and the magazines are coming with much more not required information than before like adds which sidelines the main contains and this is creating an opportunity for other to enter in the market and bring more customer focused products and services and whoever does that gets the attention of the customer.

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LITERATURE REVIEW

Major trading in the Indian share market happens through BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). The BSE was started in 1875 and NSE founded in 1992 and started trading in 1994 but the process of the trading mechanism they follow is almost the same. BSE has more than 5000 listed firms whereas the NSE has more than 2000 firms, out of total listed companies in BSE, only 500 firms acquires more than 90% of total market capital.

Any current or potential investor invest in shares of the company to get better returns in the form of the dividend and monetary appreciation wherein salaried employees seek return, safety, liquidity, convenience and affordability and also tax benefits(B.B.S. Parihar and K.K. Sharma 2012). Investment preferences of salaried person and the business man and also there difference between the ways they seek the information, so a single product should be able to satisfy that need. Also decisions of investing or not investing in the stock differ from person to person. The main objective of any firm should be to understand those multiple needs and bring the combined solution for all the problems.

A book opined that, a) Indian stock markets are very speculative, b) Indian investors are dissatisfied by the service provided by brokers, c) Margins given by stock exchanges are insufficient and d) Liquidity in the a large number of stocks of BSE and NSE is very low(L.C. Gupta 1992) According a survey the majority of investors are very satisfied regarding the clearing and settlement offered by different trading channels (Dr. T.V.V. Phani Kumar Jan2014). But still there are many people turning their back on stock market investment which opportunity for us to study those reasons why some investors have stopped investing and also why others are not investing in the stock market. Investor’s psychology affects mutual fund selection for investment and to withdraw from the fund (Goetzman 1997). It means before launching any financial product the study and in depth research of investor’s psychographic profile is very necessary. To embed the mutual fund investment culture deep in to society asset management companies have to work hard on steering the consumer distribution model (Prof Gauri Prabhu) Segmentation of mutual fund products according to the investor is need to increase popularity of the mutual funds (Raja Rajan 1997) Greed (Want for more) is the greatest and most portent enemy of the investor which has been noticed world over. Many times it happens that a rational thinking person tent to behave in a very irrational manner while investing in the stocks. It is important to analyze two key factors while investing (a) Taxation and Inflation and (b) Risk and Return so we may that the sound investment is one which gives the investor better returns after tax

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and invisible tax information (PROF. CA YOGESH at al oct2012) so there is a great requirement of product which not only suggest which stocks to buy but also information in simple terms about the above mentioned factors.

STATEMENT OF PROBLEM

To understand the consumer preferences, perception of looking toward the stock market and basic understanding and knowledge of stock market

OBJECTIVES OF THE STUDY

1. To study the consumer preferences while making purchase of the stocks.2. How consumers perceive stock market investment and decisions made and those

perceptions.3. What is the basic level of knowledge and understanding of the stock market a

common person has.4. To evaluate the demographic characters of the investors and non-investors.5. Does the investor gets quality time to read or not.

RESEARCH METHODOLOGY

REASEARCH DESIGN

Following is the research design that we have followed

SECONDARY SOURCES

The various secondary information used for research include various published and non-published works including books, magazines, journals, websites and news which can add value to the research

PRIMARY SOURCES

A well-structured questionnaire was prepared and verified and then we went to the market with those questionnaire and conducted depth interviews of the different stack holders and working professional also the same questionnaire is circulated online to reach

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farther and outskirt areas of the Pune. During the depth interview we got many interesting insights and interacted and got in touch with those people also few of them became our clients and bought the magazine subscription

During interview some people shared more information which helped us to reframe the questionnaire and in totality added value to the research only.

SAMPLING METHOD

We have used probabilistic sampling in which we used simple random sampling so that after analyzing reports we can generalize the results for bigger population size.

SAMPLE SIZE

We have used a formula to calculate the sample size which is as follows

Where n= Sample size

Z= Value for confidence level 5%=1.96

P= (Target audience/Total audience)

= (90000/1800000) = 0.05

M= margin of error= 0.04

.;. n=114 approx.

We spread out the total number of people over a span of different demographic and geographic location so we get the equal respondents from different areas and

AREA OF STUDY

The area for study we choose is Pune district. But some online respondents are from other areas.

TOOLS USED FOR ANALYSIS

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n= z2 p(1−p )M 2

We have done the reliability test for the complete sample which was 0.724 means the data is 72.4% reliable.

We have also used factor analysis to identify the different important factors and correlation to check how much the correlated to each other.

We also have used the Single factor ANOVA to test the hypothesis that we have formulated.

ANALYSIS AND INTERPRETATION OF DATA

Table No. 1

Particular Frequency Percentage Particular Frequency PercentageGender EducationMale 106 92.18 UG 70 60.86Female 9 7.82 PG 14 12.17Total 115 100 PhD 1 0.86

other 30 26.08Total 115 100

Age Family size

20-25 22 19.13 2 10 8.6926-30 52 45.21 3 21 18.2631-40 30 26.08 4 33 28.6940-50 5 04.34 5 14 12.17above 50 6 05.21 Above 5 37 32.17Total 115 100 Total 115 100

Income in thousand

Marital status

Below 25 52 45.21 Married 62 53.9125-36 13 11.30 Single 53 46.0936-50 10 8.69 Total 115 10050-60 0 0Above 60 40 34.78Total 115 100

Source:- Primary Research

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As shown in the table the male respondents are 92.18% and female are 7.82% and marital status is 53.91% are married and 46.09 are single. And belong to the age group of 20-25 are 19.13% , 26-30 are 45.21% 31-40 are 26.08%, 40-50 are 4.34% and above 50 are 5.21%.

The education level of these people is UG are 60.86%, PG are 12.17% PhD are .86% and Other are 26.08%.

The above given figures are the demographic independent factors represented with respective percentage and obtained by primary research.

Also we have collected data like.

Fixed Deposit

Gold

Real Estate

Mutual Fund

Stocks or Shares

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

46.10%

65.80%

61.80%

9.20%

11.80%

The ways in which you make savings or investments

This chart shows that gold is still the highest 65.80% while investing the money and after that real estate have 61.80% investments and stock investment is at 11.80%

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The next question is

Ask an expert

Financial TV channels

Financial magazines

Stock broker

One should make his/her own analysis

71.10%

18.40%

13.20%

57.90%

39.50%

What do you think is a good way of getting assistance while mak-ing stock

investment decisions?

Investment decisions are mostly taken by having an advice from an expert which is 71.10% and then stock broker and 39.50% of people says make your own analysis

When asked

11%

12%

78%

Do you think investing in stocks is a gamble?

Yes No Maybe

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Here we can see that 78% of people think that investing in the stock market is Gamble or not and 10% are very certain that yes it is gamble.

We asked three inter related questions to the stake holder

1st

Yes80%

No 20%

Do you know any magazines that provide stock investment related

assistance?

2nd

9

6%

36%

59%

If yes, do you get enough time to read a magazine?Regularly Sometimes Not really

3rd

On the scale of 1 to 5 with 1-strongly agree and 5-strongly disagree

strongly agree moderatly agree Nuetral moderatly disagree strongly disagree0%

10%

20%

30%

40%

50%

60%

would it be helpful as an investment perspective to receive newsletters

on the phone or e-mail?

These three questions gives us an idea that even people are not having enough time to read the magazine even if they having one so we asked would it helpful as an investment

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perspective to receive newsletters on the phone or e-mail so you can access them on the move and as expected most greed to that and very few said no.

ANALYSIS

FACTOR ANALYSIS

Total Variance Explaineda

Component

Initial EigenvaluesExtraction Sums of Squared

Loadings

Total

% of Varianc

eCumulativ

e % Total

% of Varianc

eCumulativ

e %1 3.922 24.514 24.514 3.922 24.514 24.5142 3.324 20.775 45.289 3.324 20.775 45.2893 2.246 14.037 59.326 2.246 14.037 59.3264 1.555 9.721 69.048 1.555 9.721 69.0485 1.301 8.130 77.178 1.301 8.130 77.1786 .981 6.130 83.3077 .887 5.543 88.8508 .605 3.783 92.6339 .343 2.145 94.77810 .269 1.680 96.45811 .243 1.516 97.97312 .161 1.004 98.97813 .078 .490 99.46814 .059 .368 99.83615 .025 .154 99.99016 .002 .010 100.000Extraction Method: Principal Component Analysis.a. Only cases for which VAR00008 = 1 are used in the analysis phase.

Component Matrixa,b

Component1 2 3 4 5

VAR00006 .105 -.589 .216 .499 .057VAR00007 .633 -.421 .160 -.167 .513VAR00009 .596 -.510 -.462 -.105 .140VAR00010 .437 -.525 .562 .140 -.179VAR00011 .244 .225 .313 .255 -.262VAR00012 -.542 .015 .398 -.312 .400VAR00013 .377 .566 .523 .203 .177VAR00014 .571 .615 .090 -.078 .205

invested in Stock Market

.224 .773 -.398 .164 -.137

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Do you read any fi5ncial newspaper or magazine?

.449 .681 -.201 -.116 -.070

Do you think investing in stocks is a gamble?

-.021 .407 .077 .772 .348

VAR00018 -.706 .280 .327 -.055 -.395Do you k2w any magazines that provide stock investment related assistance?

.769 -.132 -.104 -.214 -.500

VAR00020 .276 .434 .271 -.545 .253VAR00021 .126 -.043 -.759 .222 .178Have you heard of Dalal Times?

.842 -.042 .368 .084 -.187

Extraction Method: Principal Component Analysis.a. 5 components extracted.b. Only cases for which VAR00008 = 1 are used in the analysis phase.

The factor analysis shows that there are five important factors as the Eigen value of five components is more than one and the five important factors are marked yellow in the table given below they are sequentially as per their component value

1] Have you heard of Dalal Times is one of the important factors to check the awareness about the newly launched financial magazine.

2] Magazines that provide stock investment related assistance.

3] Invested in Stock Market before

4] Investing in the stock market is gamble

5] Do they read a financial magazine or not

A company can take the decision based on this factors as the factor analysis show from the research we have done these are the important factors and are given as in order of preference. E.g. let’s take the first factor which is awareness about the Dalal Times means the company should focus on generating the more revenue by reaching out to as many people as possible.

HYPOTHESIS TESTING

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H01: Stock market investment decision is independent of understanding of stock market

H02: There is no significance different between investing in the stock market and reading the magazine

H03: There is no significance difference between reading the magazine and education level

ANOVA AND CORRELATION

P\F- Value Status Remark CorrelationH01 0.001916051 Rejected P value < 0.05 0.6 moderate correlation

H02 39.64952933 Rejected F tab> F cal 0.3681 weak correlation

H03 0.145 Accepted P value > 0.05 0.365 weak correlation

Primarily the reliability of the data is tested which is 72.4% reliable. This establishes a good relationship for the research and further ANOVA is used.

SUGGESTIONS OFFERED

1] As people are still believe most in gold savings, marketers need to come up with something that will develop the same confidence like the gold and eventually stock market investment may increase.

2] Experts’ advice is always seen as important while making investments, so we need to identify and link the name of those people with our financial magazine.

3] Many potential stock investors this that trading is not a respected job or it is a way of gambling and that’s why people don’t invest so we need to change the perception of those people of looking stock market investment as like any other dignified job.

4] Customers now days are expecting many augmented services from brands as people don’t get much time to read so an email service or SMS service would be useful.

5] Customers need to be provided with basic investment and stock market information and safer ways of trading and how to do your own analysis so it will result in basic understanding of the stock market and it will tend to increase in stock market investment.

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6] Its not necessary that only the people who invest, will read the financial magazine so financial institution and target more audience.

7] Also financial informative booklets or magazines are not only for highly educated people but it could be any one which also increases the audience size irrespective of the education.

MANAGERIAL IMPLETIONS

1] With the use of above results a manager from any stock market information and research field will look upon making of customer focused products.

2] A right marketing mix for that as per the audience mind set.

3] A data can be used to form long term and short term strategies and how a firm should progress.

4] It is very necessary for a manager to stay updated on the latest information about market and this piece of information will defiantly add value to their overall performance.

CONCLUSION

In totality the complete research focuses on the consumer and what is the perception of the consumer of looking toward the stock market. This research is conducted in Pune and getting the views of the consumer is something very amazing experience all together. We have used tools like ANOVA and results will help us to understand and prepare a strategy which would be more consumer focused. Here there income level and other demographics are taken into consideration and complete understanding of investor profile is done such as customers now days are expecting many augmented services from brands, as people don’t get much time to read, so an email service or SMS service would be useful while the people are on the move or when internet is not working and if internet is there then an app could be useful, basically the motto here is tap consumer on every possible platform.

FUTURE SCOPE

Due to restricted working area the study was only conducted in Pune district which can be done in many other cities. Even in Pune there is a need to tap more population as a now days many corporates are moving their businesses in pune. More detailed questionnaire can

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be used to evaluate many other factors. Most of the respondents were youth so there is a scope to tap respondents of all age equally and also female respondents are very less so their perspective needs to be evaluated in deep.

REFERENCES

L.C. Gupta 1992 Stock Exchange Trading in India: Agenda for Reform, Society for Capital MarketResearch and Development, Delhi, p. 123

Goetzman 1997 IOSR Journal of Economics and Finance (IOSR-JEF) e-ISSN: 2321-5933, p-ISSN: 2321-5925

B.B.S. Parihar and K.K. Sharma 2012 An Empirical Study of the Investment Preferences of Salaried Employees, Technofame- A Journal of Multidisciplinary Advance Research, Vol.1 No. 2, 39-48

PROF. CA YOGESH at al oct2012 Asia Pacific Journal of Marketing & Management Review Vol.1 No. 2, October 2012, ISSN 2319-2836

Dr. T.V.V. Phani Kumar Jan2014 MADRAS UNIVERSITY JOURNAL OF BUSINESS AND FINANCE

Prof Gauri Prabhu IOSR Journal of Economics and Finance

http://www.stockmarketsity.com/2010/07/t...

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