The consumer market for stockinformative 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.
When we talk about investment in India it is mostly Bank fix deposit, Gold and Real
estate but investment in stockmarket 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 stockmarket e.g. BSE and NSE are mostly govern by the FII (foreign investments),
if we peek up any information about the stockmarket 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 suddenfall 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.
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
Let’s have a look at the top ten Business Magazines in India by stockmarket sity
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 consistof 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.
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 ofthe 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 productshould be able
to satisfy that need. Also decisions of investing or not investing in the stockdiffer from
personto person. The main objective of any firm should be to understand those multiple
needs and bring the combined solution for all the problems.
A bookopined that, a) Indian stockmarkets 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 stockmarket investment
which opportunity for us to study those reasons why some investors have stopped investing
and also why others are not investing in the stockmarket. Investor’s psychology affects
mutual fund selection for investment and to withdraw from the fund (Goetzman 1997). It
means before launching any financial productthe 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
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
and invisible tax information (PROF. CA YOGESH at al oct2012) so there is a great
requirement of productwhich 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,perceptionof looking toward the
stock marketand basic understanding and knowledge ofstock 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
3. What is the basic level of knowledge and understanding of the stockmarket a
4. To evaluate the demographic characters of the investors and non-investors.
5. Does the investor gets quality time to read or not.
Following is the research design that we have followed
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
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
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.
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.
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 chooseis Pune district. But some online respondents are from other
TOOLS USED FOR ANALYSIS
We have donethe 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
ANALYSIS AND INTERPRETATION OF DATA
Table No. 1
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
Particular Frequency Percentage Particular Frequency Percentage
Male 106 92.18 UG 70 60.86
Female 9 7.82 PG 14 12.17
Total 115 100 PhD 1 0.86
other 30 26.08
Total 115 100
20-25 22 19.13 2 10 8.69
26-30 52 45.21 3 21 18.26
31-40 30 26.08 4 33 28.69
40-50 5 04.34 5 14 12.17
above 50 6 05.21 Above 5 37 32.17
Total 115 100 Total 115 100
Below 25 52 45.21 Married 62 53.91
25-36 13 11.30 Single 53 46.09
36-50 10 8.69 Total 115 100
50-60 0 0
Above 60 40 34.78
Total 115 100
Source:- Primary Research
are 19.13% , 26-30 are 45.21% 31-40 are 26.08%, 40-50 are 4.34% and above 50 are
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.
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%
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
Stocks or Shares
The ways in which you make savings or investments
The next question is
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
Here we can see that 78% of people think that investing in the stockmarket is Gamble or
not and 10% are very certain that yes it is gamble.
Ask an expert
Financial TV channels
One should make his/her own analysis
What do you think is a goodway of getting assistancewhile making
Do you think investing in stocks is a gamble?
We asked three inter related questions to the stake holder
Do you know any magazines that provide stock
If yes, do you get enough time to read a magazine?
Regularly Sometimes Not really
On the scale of 1 to 5 with 1-strongly agree and 5-strongly disagree
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
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.
Total Variance Explaineda
Extraction Sums of Squared
1 3.922 24.514 24.514 3.922 24.514 24.514
2 3.324 20.775 45.289 3.324 20.775 45.289
3 2.246 14.037 59.326 2.246 14.037 59.326
4 1.555 9.721 69.048 1.555 9.721 69.048
5 1.301 8.130 77.178 1.301 8.130 77.178
6 .981 6.130 83.307
7 .887 5.543 88.850
8 .605 3.783 92.633
strongly agree moderatly agree Nuetral moderatly disagree strongly disagree
Series1 53% 18.20% 15.20% 7.60% 6.10%
would it be helpful as an investment perspective to
on the phone or e-mail?
9 .343 2.145 94.778
10 .269 1.680 96.458
11 .243 1.516 97.973
12 .161 1.004 98.978
13 .078 .490 99.468
14 .059 .368 99.836
15 .025 .154 99.990
16 .002 .010 100.000
Extraction Method: Principal ComponentAnalysis.
a. Only cases for which VAR00008 = 1 are used in the analysis phase.
1 2 3 4 5
VAR00006 .105 -.589 .216 .499 .057
VAR00007 .633 -.421 .160 -.167 .513
VAR00009 .596 -.510 -.462 -.105 .140
VAR00010 .437 -.525 .562 .140 -.179
VAR00011 .244 .225 .313 .255 -.262
VAR00012 -.542 .015 .398 -.312 .400
VAR00013 .377 .566 .523 .203 .177
VAR00014 .571 .615 .090 -.078 .205
.224 .773 -.398 .164 -.137
Do you read
.449 .681 -.201 -.116 -.070
Do you think
stocks is a
-.021 .407 .077 .772 .348
VAR00018 -.706 .280 .327 -.055 -.395
Do you k2w
.769 -.132 -.104 -.214 -.500
VAR00020 .276 .434 .271 -.545 .253
VAR00021 .126 -.043 -.759 .222 .178
heard of Dalal
.842 -.042 .368 .084 -.187
Extraction Method: Principal ComponentAnalysis.
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 stockinvestment related assistance.
3] Invested in Stock Market before
4] Investing in the stockmarket 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.
H01: Stockmarket investment decision is independent of understanding of stockmarket
H02: There is no significance different between investing in the stockmarket and reading
H03: There is no significance difference between reading the magazine and education level
ANOVA AND CORRELATION
PF- Value Status Remark Correlation
H01 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.
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 stockmarket
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’tinvest 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’tget 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 stockmarket and it will tend to increase in stockmarket investment.
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
1] With the use of above results a manager from any stockmarket 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
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.
In totality the complete research focuses on the consumer and what is the perception of the
consumer of looking toward the stockmarket. 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.
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
be used to evaluate many other factors. Most of the respondents were youth so there is a
scopeto tap respondents of all age equally and also female respondents are very less so
their perspective needs to be evaluated in deep.
L.C. Gupta 1992 Stock Exchange Trading in India: Agenda for Reform, Society for Capital Market
Research and Development, Delhi, p. 123
Goetzman 1997 IOSRJournalof Economicsand 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 Preferencesof 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. PhaniKumar Jan2014 MADRAS UNIVERSITYJOURNAL OF BUSINESS AND
Prof GauriPrabhu IOSR Journal of Economics and Finance