Intern (Autosaved)1

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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

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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

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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

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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

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Introduction 36

Aim 36

Relation between Research objective and Data collected 36

Recommendation 37

Bibliography 38

Annexure 39

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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.

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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.

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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.

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CHAPTER ONE- INTRODUCTION

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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.

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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.

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CHAPTER 2 – REVIEW OF LITERATURE

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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.

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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.

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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.

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CHAPTER 3 – COMPANY’S OVERVIEW

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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

http://www.icicibank.com/

http://www.iciciprulife.com/

https://www.icicilombard.com/

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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.

http://www.icicipruamc.com/

http://www.iciciventure.com/

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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

http://www.icicisecurities.com/

http://www.icicisecuritiespd.com/

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“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.

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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

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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.

http://content.icicidirect.com/newsiteContent/FinancialEducation/programcode/FoundationProgrammeonStockInvesting.pdf

http://content.icicidirect.com/newsiteContent/FinancialEducation/programcode/BeginnersProgrammeonFuturesandOptionsTrading.pdf

http://content.icicidirect.com/newsiteContent/FinancialEducation/programcode/TechnicalAnalysis.pdf

http://content.icicidirect.com/newsiteContent/FinancialEducation/programcode/AdvancedDerivativesTradingStrategies.pdf

http://content.icicidirect.com/mailimages/index_About%20the%20course.html?utm_source=email&utm_medium=email&utm_campaign=MarketMASTER_scroller

http://content.icicidirect.com/newsiteContent/FinancialEducation/learnaboutelearning.pdf?TB_iframe=true&width=750&height=550&top=0&left=0

http://content.icicidirect.com/newsiteContent/FinancialEducation/about_gsi.pdf

http://content.icicidirect.com/newsiteContent/FinancialEducation/ClassroomOfProfit.asp

http://content.icicidirect.com/newsiteContent/FinancialEducation/about_gfo.pdf

http://content.icicidirect.com/newsiteContent/FinancialEducation/about_combo.pdf

http://content.icicidirect.com/newsiteContent/FinancialEducation/about_commodities.pdf

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Course books.

Contact details of the expert for further assistance.

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CHAPTER 3 - RESEARCH METHODOLOGY

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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.

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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.

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CHAPTER 4 - DATA PRESENTAION AND INTERPRETAION

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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

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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

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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

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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.

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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.

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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.

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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.

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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

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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

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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.

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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


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SPSS OUTPUT DATA – 5

Rotated Component Matrixa

Component

1 2 3 4 5 6


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


working professionals. 0.858


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CHAPTER 5 - CONCLUSION AND RECOMMENDATIONS

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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.

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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

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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.

http://www.icicigroupcompanies.com/about_us.html

http://staff.neu.edu.tr/~ngunsel/files/Lecture%2011.pdf

http://content.icicidirect.com/newsiteContent/FinancialEducation/ClassroomOfProfit.asp

http://home.axisdirect.co.in/AxisDirectWEB/portal/axisdirect.portal?_nfpb=true&_nfxr=false&_pageLabel=csrInEAssetBook_book

http://home.axisdirect.co.in/AxisDirectWEB/portal/axisdirect.portal?_nfpb=true&_nfxr=false&_pageLabel=csrInEAssetBook_book

http://www.rgurukool.com/?src=HiAEXTmbmHYTd+WjJNPj9Q

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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

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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.


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.


working professionals.

There should small weekly market update sessions in the branch office

for working professionals.

Trainer should have a experience of 8+ years.

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