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Page 1 of 45
LOVELY PROFESSIONAL UNIVERSITY
DEPARTMENT OF MANAGEMENT
Report on Summer Training
A study on consumer preference toward educational products for stock market investments.
Submitted to Lovely Professional University
In partial fulfillment of the
Requirements for the award of Degree of
Master of Business Administration
Submitted by:
NEERAJ BHANOT
11301315
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
JALANDHAR NEW DELHI GT ROAD
PHAGWARA
PUNJAB
Page 2 of 45
DECLARATION
I hereby declare to the best of my knowledge and belief that the summer training project report
titled as A study on consumer preference toward educational products for stock market
investments. Is being submitted in partial fulfillment of requirement in the award of MBA degree,
has been written and submitted under the guidance of Mr. Amit Ghai, , branch manager ICICI
securities project guide and Asst. Prof. Souvik Chaudary, faculty guide.
I further declare that it is a original work done as a part of the academic course and has not been
submitted else where.
The project is based on the data collection by the under signed from primary source while preparing
this report.
Neeraj Bhanot
Page 3 of 45
ACKNOWLEDEGEMENT
I express my gratitude and thank those, who supported and guided me throughout the
progress of my report from possibility to actuality. They are the forces that helped me in
finalizing my report to its present form.
Asst. Prof. Souvik Chaudary, my internal project supervisor, whose belief and faith in the study
gave me the confidence to pursue this research.
My deepest appreciation also extends to Mr. Amit Ghai, Branch Manager at ICICI Securities
Pvt. Ltd. Ludhiana, for being my external project guide and critically reviewing my project report
& for providing suggestions.
The support and guidance of my external as well as internal supervisor was truly a major
force which led to the successful planning and preparation of the report.
I am grateful to Mr. Gajendera Dadhich, Manager Business development at ICICI Securities Pvt.
Ltd., for being so humble and approachable and sharing his experiences & knowledge whenever I
required.
I am also indebted to the employees of ICICI Securities Pvt. Ltd. who helped me in gaining
the insights of the Indian Capital market as well as the working of Brokerage houses. I
Thank all the respondents and interviewees for their assistance in completing the
questionnaire and sparing some time for interviews.
NEERAJ BHANOT
MBA
11301315
Page 4 of 45
Table of Contents
Table of Content Page no.
Acknowledgement
Executive Summary 6
Outline of Chapter 7
Chapter One: Introduction 10
Preface 10
Research Backdrop 10
Reason for undertaking the Particular study 11
Aim and Objective of the report 11
Chapter Two: Literature Review 12
About educational products on stock market investments 14
Chapter Three: company’s overview 16
About ICICI group 17
About ICICI securities 19
About ICICI direct center for financial learning 21
Chapter Four: Research Methodology 24
Research Methodology 25
Research Design 25
Sample Design 25
Sampling Technique 25
Sample Size 25
Sampling Area 25
Sampling Unit 25
Sources of data 26
Statistical tools 26
Limitations of the study 26
Chapter Five: Data Presentation and Analysis 27
Factor analysis 31
Chapter Six: Conclusion and Recommendation 35
Page 5 of 45
Introduction 36
Aim 36
Relation between Research objective and Data collected 36
Recommendation 37
Bibliography 38
Annexure 39
Page 6 of 45
Executive Summary
According to the author, this project is aimed at understanding consumer preference toward
educational products for stock market investments. As we know, retail investor in India is loosing
its interest in stock market as they consider it very risky and is more interested in parking their
money in fixed bonds. In order to revive confidence in Indian retail investor many brokers have
started investor awareness programs, but it did not get much success in market.
This report will help the reader to understand factors that effect investors perception toward
investor awareness programs offered by numerous brokerage houses. It will also help brokerage
houses to create value for money products for the customers.
The data collected by way of survey questionnaires has also been analyzed to determine the likely
causes for the results generated. Thus, a collective summary has been displayed to replicate
the highlights of the findings. In all the research has attempted to find suitable conclusions for the
research objectives and provide suggestions to the company.
Page 7 of 45
Outline of the chapters:
Chapter 1 - Introduction
The report begins with this chapter which gives a fair idea about the background and the reasons
for selecting this topic. It has also specified the main aim and the objectives of the project report.
It then moves on to giving a preview of the various elements of the research which has been
segregated into different chapters and has summarized each chapter accordingly. Later, it has
introduced the industry and the company in which the author has done her 6 weeks of Summer
Internship Training.
Chapter 2 – Literature Review
The second chapter begins with a brief summary of the Indian capital market and then
emphasizes on the reasons for any company to Focus on investor awareness.
Chapter 3 – Company’s Overview
This chapter give brief history of ICICI group and information about its current business domains.
It also explains the detailed business operations of ICICI securities ltd.
Chapter 3 - Research Methodology
This chapter initially projects the different research philosophies which are available to the
researcher and then moves on to showcasing the one which has been selected by the researcher
with suitable justification. Later, the different methods for data collection have been mentioned
and the ones which have been used in this research has been emphasized to be applicable with the
context of the subject.
Chapter 4 – Data Presentation and Analysis
This chapter is utmost important, as it helps to draw conclusions and justify the research
objectives. This chapter intends to present the data and analyze the same in order to have
the desired outcome for the entire research undertaken.
Page 8 of 45
Chapter 5 – Conclusions and Recommendation
This is the final chapter which is a critical reflection of the research as it tries to answer
the objectives by linking them to the findings and the literature review. Further
recommendations have been made by the researcher in order to have improved costing
techniques.
Page 9 of 45
CHAPTER ONE- INTRODUCTION
Page 10 of 45
CHAPTER ONE – INTRODUCTION
Preface:
This chapter commences by giving an introduction of the research topic by displaying a brief
backdrop about it. It then moves on to showcasing the reasons for selecting this topic which is
pursued by the aim of this research and the research questions set by the author. Finally, the chapter
provides a summary of the contents of all the other chapters to follow.
Research Backdrop:
In order to invest in a stock of a company and earn profits one should either do a technical or
fundamental analysis depending on the time horizon they are investing for. It is generally believed
that buying stocks on the basis of speculation in the market can be really risky. In order to do a
fundamental or technical analysis investor should be well aware about various tools and techniques
used to analyze a stock. As every investor is not aware about the various tools and techniques
many financial academies and brokerage houses have started various training programs to educate
the investor about the same.
Educational products for stock market investments includes different training programs offered by
different financial academies or brokerage houses. These training programs are focused to make
the customer aware about basic to advance tools and techniques used in stock market trading.
As there is numerous aspects required to be taught which could not be covered in only one training
package, so different packages are offered to the customers, for example ICICI Securities leading
Brokerage offers different training programs for its customers like foundation program, beginner
program, technical analysis and advance derivatives trading strategies. The customer who attend
the first program if finds value addition more than value invested i.e. money, time and effort
only then he would like to attend the next level program.
In order to reduce cost and increase profits in training program domain it is very important for the
company to retain customers who attended the first session for the next level session.
Page 11 of 45
Thus, this SIP report attempts to study the preference and perception of consumer toward these
programs. Which will help different brokerage houses and financial education academies to create
more value for the customer and increase their satisfaction level toward the service provided.
Reasons for undertaking the particular study.
After 1995, there is a continuous slump experienced by the primary market offering equity. The
main reason for slump is lack of investor confidence in the primary market. So it is important to
give right education about capital market for the revival of investor confidence leading to capital
mobilization and investment in right avenues creating, economic growth in the country. The retail
investors play important role in the capital market.
Though, their individual contribution may be small but, when it is summed it will become a huge
amount/fund. The economic disparities can be reduced by encouraging these retail investors. A
survey results says that only 12 per cent of the savings amount is coming to capital market.
This project report is a modest attempt to study the preference and perception of retail investors
toward educational programs offered by different companies in Indian capital market, which will
help the brokerage houses to add more value to their existing educational products.
Aims and Objectives of the Report:
To understand the preference of investor toward training programs.
Factors that will create value for the customer.
Recommending key focus area’s that will help retaining the customers.
Page 12 of 45
CHAPTER 2 – REVIEW OF LITERATURE
Page 13 of 45
CHAPTER 2 – REVIEW OF LITERATURE
Need for Investor awareness.
Stat man (2002) made a comparative study of investors today and investors a century ago. He
concluded that today’s investors are more rapidly informed than their predecessors, but they are
neither better informed nor better behaved.
Hall (2002) has conducted research on broker’s recommendations. He found that investors who
invested in the Johannesburg securities Exchange (JSE) based on their brokers‟ advice, were able
to get risk adjusted returns superior or equal to the market.
A Survey by PHD chamber on “Retail Investor’s” October 2012 “A survey of Rural, Urban &
Metropolitan Segments” explained that the investment pattern in the country suggests that
investment flow have been highest in the traditional modes of investment such as in real estate
market followed by gold and silver. This suggests that investors prefer to invest in less risky and
relatively less volatile markets such as real estate market and bullion market.
1. Hall, John.H. “Are brokers‟ buy, hold and sell recommendations of value to individual
investors?” University of Pretoria, working paper series.
2. Statman, Meir. “A century of investors”, Santa Clara university – Department of Finance
3. “Retail Investor’s Survey: October 2012 A survey of Rural, Urban & Metropolitan Segments”,
PHD chamber.
Page 14 of 45
ABOUT EDUCATIONAL PRODUCTS ON STOCK MARKET INVESTMENTS.
Educational products for stock market investments refers to paid investor education programs
offered by brokerage houses. These investor awareness programs are basically of two type’s first,
classroom program and second is eLearning program. This SIP report focuses on classroom
programs offered by Indian brokerage houses.
Most of the brokerage houses has divided these training programs into four different packages:
1. Foundation program.
2. Beginners program.
3. Technical analysis.
4. Advanced training or Derivative market.
Foundation program is designed for those customers who are new to stock market trading and want
to learn the basics. It involves basic knowledge about BSE and NSE, how a stock is traded, how
stock price fluctuate.
Beginners program involve training about how to enter and exit in a stock, how to analyze and
track a stock, educating customers about different ways of trading a stock like intraday trade,
derivatives and cash buy/sell.
Technical analysis is designed for those customers who are interested in short term trading. It
involves educating customers about different ways to read graphs and charts, how volume plays
important role in volatility of a stock price, etc.
Advanced training or Derivative market training program is designed for those who are more
interested in future and option trading. It helps the investor to learn enter and exit strategies they
should follow while trading in derivative market. It involves buying and selling strategies, effect
of FII’S and DII’S in F&O market, etc.
Page 15 of 45
All the above mentioned programs do not require any prior qualification, any one can enroll in
any of the program. Though it is recommended to attend sessions in the defined order but is not
happening in actual reality.
In order to meet sales target sales executives are not selling these products according to the need
of the customer, in fact these products are sold according to the scheduled calendar of the
company. Most of the customers are even unaware of the session they will be attending after
purchasing the product.
Page 16 of 45
CHAPTER 3 – COMPANY’S OVERVIEW
Page 17 of 45
CHAPTER 3 – COMPANY’S OVERVIEW
ABOUT ICICI GROUP
ICICI Group offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialised group companies and
subsidiaries in the areas of personal banking, investment banking, life and general insurance,
venture capital and asset management. With a strong customer focus, the ICICI Group Companies
have maintained and enhanced their leadership positions in their respective sectors.
ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$ 93 billion)
at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271 million) for the year ended
March 31, 2012. The Bank has a network of 2,791 branches and 10,021 ATMs in India, and has a
presence in 19 countries, including India.
ICICI Prudential Life Insurance is a joint venture between ICICI Bank, a premier financial
powerhouse, and Prudential plc, a leading international financial services group headquartered in
the United Kingdom. ICICI Prudential Life was amongst the first private sector insurance
companies to begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). ICICI Prudential Life's capital stands at Rs. 47.91
billion (as of March 31, 2012) with ICICI Bank and Prudential plc holding 74% and 26% stake
respectively. For FY 2012, the company garnered Rs.140.22 billion of total premiums and has
underwritten over 13 million policies since inception. The company has assets held over Rs. 707.71
billion as on March 31, 2012.
ICICI Lombard General Insurance Company, is a joint venture between ICICI Bank Limited,
India's second largest bank with consolidated total assets of over USD 91 billion at March 31, 2012
and Fairfax Financial Holdings Limited, a Canada based USD 30 billion diversified financial
services company engaged in general insurance, reinsurance, insurance claims management and
Page 18 of 45
investment management. ICICI Lombard GIC Ltd. is the largest private sector general insurance
company in India with a Gross Written Premium (GWP) of Rs. 5,358 crore for the year ended
March 31, 2012. The company issued over 76 lakh policies and settled over 44 lakh claims and
has a claim disposal ratio of 99% (percentage of claims settled against claims reported) as on
March 31, 2012.
ICICI Prudential Asset Management is the third largest mutual fund with average asset under
management of Rs. 688.16 billion and a market share ( mutual fund ) of 10.34% as on March 31,
2012. The Company manages a comprehensive range of mutual fund schemes and portfolio
management services to meet the varying investment needs of its investors through117 branches
and 196 CAMS official point of transaction acceptance spread across the country.
ICICI Venture is one of the largest and most successful alternative asset managers in India with
funds under management of over US$ 2 billion. It has been a pioneer in the Indian alternative asset
industry since its establishment in 1988, having managed several funds across various asset classes
over multiple economic cycles. ICICI Venture is a wholly owned subsidiary of ICICI Bank.
Page 19 of 45
ABOUT ICICI SECURITIES
ICICI Securities Ltd is the largest integrated securities firm covering the needs of corporate and
retail customers through investment banking, institutional broking, retail broking and financial
product distribution businesses. Among the many awards that ICICI Securities has won, the
noteworthy awards for 2012 were: Asiamoney `Best Domestic Equity House for 2012; 'BSE IPF
D&B Equity Broking Awards 2012' under two categories:- Best Equity Broking House - Cash
Segment and Largest E-Broking House; the Chief Learning Officer Award from World HRD
Congress for Innovation in Learning category. IDG India's CIO magazine has recognized ICICI
Securities as a recipient of CIO 100 award in 2009, 2010, 2011 and 2012. I-Sec won this awards
4 times in a row for which the CIO Hall of Fame award was additionally conferred in 2012.
ICICI Securities Primary Dealership Limited (‘I-Sec PD’) is the largest primary dealer in
Government Securities. It is an acknowledged leader in the Indian fixed income and money
markets, with a strong franchise across the spectrum of interest rate products and services -
institutional sales and trading, resource mobilisation, portfolio management services and research.
One of the first entities to be granted primary dealership license by RBI, I-Sec PD has made
pioneering contributions since inception to debt market development in India. I-Sec PD is also
credited with pioneering debt market research in India. It is one of the largest portfolio managers
in the country and amongst PDs, managing the largest AUM under discretionary portfolio
management.
I-Sec PD’s leadership position and research expertise have been consistently recognised by
domestic and international agencies. In recognition of our performance in the Fixed Income
market, I-Sec have received the following awards:
“Best Domestic Bond House” in India - 2007, 2005, 2004, 2002 by Asia Money
Page 20 of 45
“Best Bond House” - 2009, 2007, 2006, 2005, 2004, 2001 by Finance Asia
“Best Domestic Bond House” – 2009 by The Asset Magazine’s annual Triple A Country
Awards
Ranked volume leader - by Greenwich Associates in 2010 Asian Fixed-Income Investors
Study. Ranked 5th in ‘Domestic Currency Asian Credit’ with market share of 4.5%, Only
Domestic entity to be ranked.
Page 21 of 45
ABOUT ICICIDIRECT CENTRE FOR FINANCIAL LEARNING (ICFL)
ICICIdirect Centre for Financial Learning (ICFL) is an educational initiative of ICICI Securities
Limited. ICICIdirect strive to offer best in the class financial learning programmes, through one
of the most superior and practical learning approaches that would help students and professionals
reach their career goals and investors and traders build expertise to invest and trade.
With an objective to be one of the most preferred provider for education on Finance, ICICIdirect
offer premium education programmes ranging from Investor and Trader focused skill enhancement
programmes on Stock investing, Technical Analysis and Derivatives Trading to certification
programmes on Financial Planning and Wealth Management.
ICICIdirect is an Authorised Education Partner of Financial Planning Corporation (India) Pvt. Ltd.
(FPCIL) to offer Certified Financial PlannerCM certification in India.
ICICIdirect have partnered with American Academy of Financial Management India (AAFM
India.) to offer Chartered Wealth Management® - CWM® certification to working professionals,
college students and IA's / IFA's with a unique value proposition which only an Industry
practitioner can offer- Internships with Wealth Management teams and learning from practicing
Wealth Managers.
ICFL offers following programs:
Investment Education programs
Professional Certification & Development
programs
Partnership Programmes with
Colleges
Page 22 of 45
INVESTMENT EDUCATION PROGRAMS.
Investment education program is sub divided in to two categories.
1. Classroom program
2. E-Learn programs
CLASSROOM PROGRAMS
Classroom programs are designed for those how like classroom learning and have enough time to
attend sessions. Classroom program is again sub divided in to five different program.
1. Foundation Programme on Stock Investing
2. Beginners Programme on Futures and Options
3. Technical Analysis
4. Advanced Derivatives Trading Strategies
5. Market MASTER
E-LEARN PROGRAMS
1. Know more about E-Learn
2. Gateway to Stock Investing
3. Gateway to Futures and Options
4. Gateway to Stocks and Derivatives - COMBO
5. Gateway to Commodities Trading
All the above mentioned classroom program are priced at Rs2700/session for Ludhiana region
which includes:
One day session with expert in a hotel.
Two meals and snacks.
Page 23 of 45
Course books.
Contact details of the expert for further assistance.
Page 24 of 45
CHAPTER 3 - RESEARCH METHODOLOGY
Page 25 of 45
CHAPTER 3 - RESEARCH METHODOLOGY
Research Methodology
The word methodology is the combination of two words “method” which implies a
particular way of doing something plus “logus” the Latin word which implies “study”. Thus
methodology implies „ a systematic way of studying something.(Sarangi Prasad 2010) The
research method include all those methods and techniques that are used for conducting research .
Research Design
Descriptive Research Design has been used , which clearly indicates that the study is all
about a certain characteristic of individuals (investors) towards investment.
Sample Design
A sample design is a definite plan for obtaining a sample from a given population. Sample
design consists of a number of items such as, Sampling technique, Size of the sample, sampling
unit, sampling area.
Sampling Technique - Simple random sampling.
Sample Size- Sample size of 120 has been undertaken in this research.
Sampling Area- Ludhiana
Sampling Unit- Individuals indulging investment in equity shares with different backgrounds
have been selected.
Page 26 of 45
Sources of data
The study is based on primary and secondary data. Primary Data for this research work has been
collected through Structured, Multiple-choice Questionnaire containing mostly Closed-ended
Questions. Secondary data for this stud y has been collected through journals and the internet.
Statistical tools – Factor analysis using SPSS software.
Limitations of the study
1. There might be errors in the expression of opinion of respondents due to their personal bias.
2. The study was restricted to urban areas in Ludhiana City only.
Page 27 of 45
CHAPTER 4 - DATA PRESENTAION AND INTERPRETAION
Page 28 of 45
CHAPTER 4 - DATA PRESENTAION AND INTERPRETAION
This chapter is utmost important, as it helps to draw conclusions and justify the research
objectives. This chapter intends to present the data and analyze the same in order to have
the desired outcome for the entire research undertaken. The questionnaire segment provides a brief
evaluation of the findings collected by way of survey questionnaires. It tries to examine the overall
consumer preference toward educational products for stock market investments. At the end, there
is a brief analysis of the entire data of the segments taken together to generate results out of the
research carried out.
PRESENTATION AND ANALYSIS OF DATA COLLECTED THROUGH
QUESTIONNAIRE:
The researcher collected the data with the help of questionnaire survey. The URL of the online
questionnaire was e-mailed to 300 people. However the researcher managed to get 120 responses.
The key people who were the respondents and were targeted were investor who are holding a
trading account of any brokerage house of India and are active traders.
1. Age groups of the respondents.
Row Labels Count of Age
18yrs - 25yrs 71
26yrs - 40yrs 40
41yrs above 9
Grand Total 120 59%
33%
8%
18yrs - 25yrs
26yrs - 40yrs
41yrs above
Page 29 of 45
From the above data it is observed that age group of 18years to 25 years are more interested to
park their investments in stock market than other age groups. It also signify that the age group of
41 and above are more risk adverse than below 40 years.
2. Educational qualification of the respondents.
Most of the respondents who invest in stock market were graduates and it is observed that people
who are post graduates and doctorate avoids to invest their money in stock market as they believe
fixed income financial tools will give them more security for their invested capital.
We can also say highly qualified people i.e. post graduates or decorates find less time to devote
toward stock market investments, and want to invest more in risk free bonds where there is no
need to track the investments time to time.
Row Labels Count of Education
Qualification
Doctorate 3
Graduate 72
Post-Graduate 24
Undergraduate 21
Grand Total 120
2%
60%
20%
18%
Doctorate
Graduate
Post-Graduate
Undergraduate
Page 30 of 45
3. From how long respondents are investing in stock market.
Row Labels
Count of From how
long You are
investing in stock
market
1yrs - 2yrs 28
2yrs - 3yrs 37
Less than 1 year 29
More than 3
years 26
Grand Total 120
4. Estimated capital invested in market.
Row Labels Count of Estimated capital
invested in stock market.
1lakh to 3 lakhs 29
Less than 1 lakh 53
More than 3 lakhs 32
Prefer not to
disclose 5
Grand Total 120
23%
31%
24%
22% 1yrs - 2yrs
2yrs - 3yrs
Less than 1 year
More than 3years
24%
45%
27%
4% 1lakh to 3 lakhs
Less than 1 lakh
More than 3 lakhs
Prefer not todisclose
Page 31 of 45
Above mentioned pie chart shows 45% of the respondents are those who have invested less than
1 lakh rupees in stock market which implies that most of the investor still prefer investing less
money directly in to stock market and prefer other financial tools for investments.
FACTORS ANALYSIS
Data collected with the help of questionnaire survey was entered in SPSS- software to perform
factor analysis out of a set of 14 factors that may influence the preference of the investor toward
educational products for stock market investments offered by Indian brokerage houses.
Following are the 14 factors that were asked to the respondents.
F1. It is preferable to have the session in my regional language rather than in English.
F2. It is preferable to have less than 15 students in a batch for the session.
F3. I am comfortable in investing more than Rs.2700 for a one day training session.
F4. Trainer should be CFA certified or equivalent qualified.
F5. Trainer should have good time management skills.
F6. Online video lectures should be provided with the package instead of books.
F8. A virtual trading account for practice should be provided with the training package.
F8. A well experienced advisor should be provided to practice what I have learned in the
training sessions.
F9. The training session should be conducted in a hotel and not in branch office.
F10. Training sessions should be conducted on weekends.
F11. A short trail video of the training session should be provided prior to the purchase of the
package.
F12. There should be different training plans for students, retired and working professionals.
F13. There should small weekly market update sessions in the branch office for working
professionals.
F14. The trainer should have a experience of 8+ years of stock market advisory service.
Page 32 of 45
FACTOR ANALYSIS
As the first step, suitability of the data collected for using factor analysis is thoroughly checked.
The sample is greater than 100 as mentioned above. The proportion of the respondents and the
variables used is more than 5:1 (120 respondents and 14 variables).
SPSS Output 1 shows an abridged version of the R-matrix. For these data its value is a = .005
which is greater than the necessary value of 0.00001. Therefore, multicollinearity is not a problem
for these data. And factor analysis can be performed.
SPSS Output 2 shows several very important parts of the output: the Kaiser-Meyer-Olkin measure
of sampling adequacy and Bartlett's test of sphericity. The KMO statistic varies between 0 and 1.
A value of 0 indicates that the sum of partial correlations is large relative to the sum of correlations,
indicating diffusion in the pattern of correlations (hence, factor analysis is likely to be
inappropriate). A value close to 1 indicates that patterns of correlations are relatively compact and
so factor analysis should yield distinct and reliable factors. Kaiser (1974) recommends accepting
values greater than 0.5 as acceptable (values below this should lead you to either collect more data
or rethink which variables to include). For these data the value is 0. 581, which is acceptable: so,
we should be confident that factor analysis is appropriate for these data.
Bartlett's measure tests the null hypothesis that the original correlation matrix is an identity matrix.
For factor analysis to work we need some relationships between variables and if the R matrix were
an identity matrix then all correlation coefficients would be zero. Therefore, we want this test to
be significant (i.e. have a significance value less than 0.05). A significant test tells us that the R-
matrix is not an identity matrix; therefore, there are some relationships between the variables we
hope to include in the analysis. For these data, Bartlett's test is highly significant (p < 0.001), and
therefore factor analysis is appropriate.
Page 33 of 45
Using principal component and varimax rotation only attributes with factor loading of 0.5 or
greater on a factor were regarded as significant.
The Communalities are presented in output 3, communalities represents the proportion of variance
in the original variables that is accounted for the factor solution. The factor solution should explain
at least half of each original variable’s variance, so the communality value for each variable should
be 0.50 or higher. As can be seen from the table all the variables used have a communality higher
than 0.50. Output 3 shows the communalities.
Following table gives the 6 factors that explain 75.899 percent of total variation.
FACTOR
DESCRIPTION
VARIABLES INCLUDED
1. Cost of session. Price paid and no. of students in single batch.
2. Varity of training
packages.
Different packages for students, retired and working
professionals.
3. Training package
content.
A virtual trading account for practice, video lectures instead of
books and free advisory service for few days.
4. Convenience Weekly market update, sessions should be in regional language,
Session should be conducted in hotel/branch, sessions should
be on weekends.
5. Prior purchase
trail.
A demo video of the session before purchasing the package.
6. Quality of trainer. Should be CFA certified, 8+ years of experience, good time
management skills.
Page 34 of 45
The first and foremost factor for the consumers’ preference is the cost of session. The
number of students per session is also preferred. Customer disagreed on paying 2700
rupees for a single day session.
The second factor is the variety of training packages. Customer prefer attending session
according to his profession. (Student, retired, working professional.)
The third factor is the training package content. Customer prefer video lectures instead of
books and also like to practice the learning on a risk free virtual trading account. The
concept of having a free advisory service for few days after the session is also liked by the
customer.
The fourth factor is Convenience, they like to attend weekly market update sessions in the
branch office on weekends and prefer to attend the paid training session in their regional
language. Training session conducted in hotels are also liked by the customer.
The fifth factor is a demo of the training package. Customer wants to see a demo of the
training session before purchasing the package.
The sixth factor is Quality of trainer. Customer prefer a CFA certified trainer who have a
prior experience of 8+ years in the field of advisory. Trainer with good time management
skills is also liked by the customers.
Page 35 of 45
SPSS OUTPUT DATA
SPSS OUTPUT DATA – 1(correlation check)
Correlation Matrix
F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 F13 F14
F1 1 0.068 -
0.094 0.217 0.156 0.43 0.139
-
0.128 0.21 0.417
-
0.039 0.283 0.103 0.242
F2 0.068 1 0.179 -
0.124
-
0.179 0.089 -0.01
-
0.082 0.346
-
0.056 0.038
-
0.049
-
0.024
-
0.062
F3 -
0.094 0.179 1
-
0.088 0.115
-
0.057 0.336 0.05 0.153
-
0.273
-
0.044 0.077 0.057 0.084
F4 0.217 -
0.124
-
0.088 1 0.047
-
0.226
-
0.187
-
0.223 0.224 0.195 0.014 0.094 0.036
-
0.193
F5 0.156 -
0.179 0.115 0.047 1 0.117 0.008 0.372 0.096 0.321 0.195 0.762 0.455
-
0.163
F6 0.43 0.089 -
0.057
-
0.226 0.117 1 0.151 0.167 0.105 0.113
-
0.035 0.122 0.116 0.304
F7 0.139 -0.01 0.336 -
0.187 0.008 0.151 1 0.169 0.116 0 0.469
-
0.058 0.255 0.691
F8 -
0.128
-
0.082 0.05
-
0.223 0.372 0.167 0.169 1 0.028 0.282 0.156 0.179 0.382 0.11
F9 0.21 0.346 0.153 0.224 0.096 0.105 0.116 0.028 1 -
0.005 0.154 0.216 0.106 0.048
F10 0.417 -
0.056
-
0.273 0.195 0.321 0.113 0 0.282
-
0.005 1 0.181 0.344 0.312 0.029
F11 -
0.039 0.038
-
0.044 0.014 0.195
-
0.035 0.469 0.156 0.154 0.181 1 0.212 0.235 0.172
F12 0.283 -
0.049 0.077 0.094 0.762 0.122
-
0.058 0.179 0.216 0.344 0.212 1 0.52
-
0.132
Page 36 of 45
F13 0.103 -
0.024 0.057 0.036 0.455 0.116 0.255 0.382 0.106 0.312 0.235 0.52 1 0.012
F14 0.242 -
0.062 0.084
-
0.193
-
0.163 0.304 0.691 0.11 0.048 0.029 0.172
-
0.132 0.012 1
a. Determinant = .005
SPSS OUTPUT DATA – 2(adequacy and sphericity check)
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.581
Bartlett's Test of
Sphericity
Approx. Chi-Square 593.34
3
df 91
Sig. .000
Page 37 of 45
SPSS OUTPUT DATA – 3
Communalities
Initial Extraction
It is preferable to have the session in my regional language rather than
in English.
1.000 .843
It is preferable to have less than 15 students in a batch for the session. 1.000 .821
Trainer should have good time management skills. 1.000 .805
I am comfortable in investing more than Rs.2700 for a one day
training session.
1.000 .759
Trainer should be CFA certified or equivalent qualified. 1.000 .816
Online video lectures should be provided with the package instead of
books.
1.000 .746
A virtual trading account for practice should be provided with the
training package.
1.000 .911
A well experienced advisor should be provided to practice what I
have learned in the training sessions.
1.000 .635
The training session should be conducted in a hotel and not in branch
office.
1.000 .674
Training sessions should be conducted on weekends. 1.000 .681
A short trail video of the training session should be provided prior to
the purchase of the package.
1.000 .746
There should be different training plans for students, retired and
working professionals.
1.000 .795
There should small weekly market update sessions in the branch
office for working professionals.
1.000 .576
The trainer should have at least 8+ years of experience in stock
market
1.000 .819
Extraction Method: Principal Component Analysis.
Page 38 of 45
SPSS OUTPUT DATA –4
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
1 3.003 21.453 21.453 3.003 21.453 21.453 2.718 19.411 19.411
2 2.166 15.473 36.926 2.166 15.473 36.926 2.034 14.527 33.938
3 1.645 11.750 48.676 1.645 11.750 48.676 1.616 11.541 45.479
4 1.516 10.830 59.506 1.516 10.830 59.506 1.464 10.455 55.934
5 1.272 9.086 68.593 1.272 9.086 68.593 1.411 10.081 66.016
6 1.023 7.306 75.899 1.023 7.306 75.899 1.384 9.884 75.899
7 .756 5.401 81.300
8 .689 4.922 86.222
9 .573 4.095 90.317
10 .456 3.254 93.571
11 .315 2.247 95.818
12 .273 1.947 97.765
13 .208 1.488 99.253
14 .105 .747 100.000
Extraction Method: Principal Component Analysis.
Page 39 of 45
SPSS OUTPUT DATA – 5
Rotated Component Matrixa
Component
1 2 3 4 5 6
I am comfortable in investing more than Rs.2700 for a one day
training session. 0.845
It is preferable to have less than 15 students in a batch for the
session. 0.87
There should small weekly market update sessions in the branch
office for working professionals. 0.717
It is preferable to have the session in my regional language
rather than in English. 0.789
The training session should be conducted in a hotel and not in
branch office. 0.724
Training sessions should be conducted on weekends. 0.645
Trainer should be CFA certified or equivalent qualified. 0.891
The trainer should have at least 8+ years of experience in stock
market 0.78
Trainer should have good time management skills. 0.148
A short trail video of the training session should be provided
prior to the purchase of the package.
0.63
A virtual trading account for practice should be provided with
the training package. 0.923
Online video lectures should be provided with the package
instead of books. 0.775
A well experienced advisor should be provided to practice what
I have learned in the training sessions. 0.495
There should be different training plans for students, retired and
working professionals. 0.858
Extraction Method: Principal Component Analysis.
Page 40 of 45
CHAPTER 5 - CONCLUSION AND RECOMMENDATIONS
Page 41 of 45
CHAPTER 5 - CONCLUSION AND RECOMMENDATIONS
INTRODUCTION:
This chapter aims to conclude the report by relating the research objective with the data collected.
The chapter begins with correlating the theory of literature with the findings of the data. The
chapter then proceeds to the recommendations which are mainly highlighted for the future
scope. Further the limitations of the research have been discussed.
AIM:
The aim of this research is to understand consumer preference toward educational products for
stock market investments.
RELATION BETWEEN RESEARCH OBJECTIVES AND DATA COLLECTED:
The research objectives which were mentioned in the introduction chapter have been answered by
the research undertaken and attempts have been made by the researcher to link theory with practice.
OBJECTIVE 1: To understand the preference of investor toward training programs.
With the help of data collected and analyzed in SPSS six factors are extracted that influence the
preference of the consumer toward educational products for stock market investments.
Those six factors are:
1. Cost of session.
2. Varity of training packages.
3. Training package content.
4. Convenience
5. Prior purchase trail.
6. Quality of trainer.
Page 42 of 45
OBJECTIVE 2: Factors that will create value for the customer.
It was observed that consumer prefer to have more content in the package offered, for example
according to the above mentioned factor analysis consumer finds it difficult to understand the
content written in books and prefers to have video lectures instead of books.
Consumer also disagreed for paying rupees 2700 for a single day session which is an average price
demanded by different brokerage houses to their customers in India. So, it is important to
reconsider pricing of the packages.
Further providing a free virtual trading for practice will add value to the package and will not
increase any cost for the company, as most of the brokers are already offering the services to
everybody regardless of the relation with the company.so, creating a virtual trading account with
few more features than the normal offering will make their customer happy without incurring any
cost.
Giving a trail demo of the session to the customer before purchasing the package makes him more
clear and confident to invest his hard earned money in these products.
OBJECTIVE 3: Recommending key focus area’s that will help retaining the customers.
Recommended key focus area for the company to retain their customers are:
1. They should conduct weekly market update sessions where customers can get all market
related update of full past week in mere few hours. This will bring good relation between
customers and company and will also help generating more brokerage revenue as a well-
informed investor tends to invest more in the market.
2. An advisory service should be provide for few days to the customer who attended training
sessions. This trail will help the company to convert more customers to their advisory
service department which leads to the generation more revenues.
3. There should be different training packages for the customer according to their need , for
example a retired person can spare a lot of time toward learning stock market techniques
Page 43 of 45
where students can devote comparatively less and working professional and devote much
less time than both.
BIBLIOGRAPHY
Websites:
1. http://www.icicigroupcompanies.com/about_us.html
2. http://staff.neu.edu.tr/~ngunsel/files/Lecture%2011.pdf
3. http://content.icicidirect.com/newsiteContent/FinancialEducation/ClassroomOfProfit.asp
4. http://home.axisdirect.co.in/AxisDirectWEB/portal/axisdirect.portal?_nfpb=true&_nfxr=f
alse&_pageLabel=csrInEAssetBook_book
5. http://www.rgurukool.com/?src=HiAEXTmbmHYTd+WjJNPj9Q
Journal and Papers:
1. Hall, John.H. “Are brokers‟ buy, hold and sell recommendations of value to individual
investors?” University of Pretoria, working paper series.
2. Statman, Meir. “A century of investors”, Santa Clara university – Department of Finance
3. “Retail Investor’s Survey: October 2012 A survey of Rural, Urban & Metropolitan
Segments”, PHD chamber.
Page 44 of 45
ANNEXURE
QUESTIONNAIRE
A study on consumer preference toward educational products for
Stock market investments.
This questionnaire is designed study the perception and preference of investors toward
educational products for stock market investment.
First we’d like to ask few questions about you.
1. Name: ____________ 2. Email id. /Ph. No. : ____________
3. Occupation: __________
4. Age: 18yrs - 25yrs 26yrs- 40yrs 41yrs and above
5. Education Qual.: Undergraduate Graduate Post-Graduate Doctorate
6. From how long you are investing in stock market.
Less than 1 yr. 1yr. - 2yrs. 2yrs. - 3 yrs. More than 3yrs.
7. Estimated capital invested in stock market.
Less than 1 lakh 1lakh to 3 lakhs More than 3 lakhs Prefer not to disclose.
For the next several questions please choose a number from 1 to 5 to indicate how much you agree
with the statement.
Strongly disagree
Disagree Neutral Agree Strongly agree
1
2 3 4 5
Page 45 of 45
Question/response
Strongly disagree
(1)
Disagree
(2)
Neutral
(3)
Agree
(4)
Strongly agree(5)
It is preferable to have the session in my regional language rather
than in English.
It is preferable to have less than 15 students in a batch for the session.
Trainer should have good time management skills.
I am comfortable in investing more than Rs.2700 for a one day
training session.
Trainer should be CFA certified or equivalent qualified.
Online video lectures should be provided with the package instead of
books.
A virtual trading account for practice should be provided with
the training package. A well experienced advisor should be
provided to practice what I have learned in the training sessions.
The training session should be conducted in a hotel and not in
branch office.
Training sessions should be conducted on weekends.
A short trail video of the training session should be provided prior to
the purchase of the package.
There should be different training plans for students, retired and
working professionals.
There should small weekly market update sessions in the branch office
for working professionals.
Trainer should have a experience of 8+ years.