A STUDY ON CUSTOMER SATISFACTION TOWARDS

ON-LINE SHARE TRADING WITH SPECIAL REFERENCE TO

COIMBATORE CITY

Project Report
Submitted
By

R. Vishnu
[Reg.No.07PT024]

Under the guidance of

Mr. N. SARAVANABHAVAN M.Com, M.Phil, PGDCA

In Partial Fulfillment of the Requirements for the Award of Advanced Diploma in

Sales Promotion Management as a part of the Degree of Master of Science
(Finance and Computer Applications)

DEPARTMENT OF FINANCE AND COMPUTER APPLICATIONS

S.N.R. SONS COLLEGE (AUTONOMOUS)
(An ISO 9001:2000 Certified Institution & Re-accredited by NAAC)

NOVEMBER -2008
Declaration
 Declaration

I hereby declare that this project work entitled “A Study on Customer

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

(R. VISHNU)
 Certifi
cate
 Certificate

This is to certify that the project work entitled ‘A Study on Customer

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

Supervisor Head of Department

( N. SARAVANABHAVAN ) ( R. SRINIVASAN )

Submitted for the Viva-Voce Examination held on

Internal Examiner External Examiner

 Acknowled
gement
 Acknowledgement

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

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

I would like to take this opportunity to thank our beloved

Dr. V. SENGODAN, the Principal and Secretary, S.N.R. SONS
COLLEGE for the initiatives and inspirations provided to perform the work.

I offer my sincere thanks to Prof R. SRINIVASAN, M.Com., M.Phil., Head

of the Department, M.Sc(Finance and Computer Applications) for all the valuable
guidance and support rendered at all stages of my project to bring it out as a
successful work.

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

M.Com, M.Phil, PGDCA., Lecturer and Staff in the department of

M.Sc(Finance and Computer Application) my faculty guide for the valuable
guidance, suggestions and encouragement from time to time throughout my
project.

I would also like to thank all the faculty members of the department for their
support and advice throughout the study.
 Chapter
–1
 Introduction and
Design of the study

CHAPTER -1

INTRODUCTION AND DESIGN OF THE STUDY

Introduction:

India is a developing economy. Its prospering in all spheres. Share Market is a

compelling determinant of the economy and the financial situation of a country.

Ever since the liberalization, privatisation and globalisaton, the foreign

investment in our country is booming. Share Market is a clear indicator of the
developing trend prevailing in our country.

Statistics reveal that the trade volume has been increasing continuously,
coupled with the ups & downs which is a nature of share trading.

We are living in an interlinked world. With growing volume of trade, it has

become a necessity that people are aware of the intricacies of the web world.
 SENSEX the benchmark indicator of share trading has more than tripled
ever since on-line share trading commenced. It has become imperative to be a
participant of this mode of trading.

Recently, the crisis in the financial market resulted in global inflation. The
share market was a clear indicator of the prevailing prices.

Statement of the problem:

Share trading is a way for faster earning and losing money. In the recent years, a
volatile market could be witnessed. In the desire to earn money in a quick
manner, more and more people have ventured out into share trading. Lack of
awareness of many investors have made them loose lakhs of money in the Stock
Market. Wise play by many others have made them earn in crores.

At such a time, it would be interesting to know the attitude of the players and the
conditions in the market. A survey about investors and the share market in such a
time would be educative to tomorrow’s investors. It could also lead to
improvements in the conditions prevailing in Coimbatoe City that would facilitate
increase in the share trading.

Several website provide information about the stock market. They educate
people about share trading and guide them through each step. On-line share
trading has become so common. Still, many of them are unaware of the
intricacies involved in share trading.

Where the American NASDAQ is in the commanding position, Hongkong, Tokyo

etc are some of the asian exchanges being quoted repeatedly when it comes to
news about the share market. SENSEX is not far behind. Indian bourses are also
often quoted.

Our Finance Minister P. Chidambaram is always optimistic when it comes to the

role of the stock markets in the economy. Quite often, we hear that the markets
are down or they are in an upbeat.

Conditions being such, it is necessary to take stock of the market activity and the
awareness of the investors in our town.

Objectives of the Study:

1. To understand the attitude of the on-line share traders in Coimbatore.

2. To measure the effectiveness of broking sites in Coimbatore.
3. To conduct an enquiry among the share trading public in Coimbatore about
their experience with broking sites.
4. To suggest some improvements in these sites if need be.
5. To understand the depth up to which the on-line share traders are clear
and aware of on-line share trading.

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

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

Scope of the study:

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

Limitations of the study:

The objective of this study is to understand the conditions prevailing among the
investing public. Considering the cost involved, time factor and lack of awareness
of efficient data gathering techniques and tools for analysis, all the online-share
trading public may not be covered. It may not be possible to arrive at the exact
value of the findings.

Tools used for Analysis:

The tool employed here is Percentage Analysis. The total of the data collected
under one factor are summed up and their percentage is calculated. Suppose we
consider 10 factors with 5 attributes for each factor. Each attribute is given ranks.
The values are added and the percentage for each attribute is calculated. These
values are used for analysis. This is Percentage Analysis.
Chapter Scheme

Chapter 1 : INTRODUCTION AND DESIGN OF THE STUDY

This chapter represents Introduction about On-line share trading,

Objectives of the study, Research Methodology, Scope of the study, Limitations
of the study and the Tool used for analysis

Chapter 2 : THEORY OF SHARE MARKET

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

Chapter 3 : ANALYSIS AND INTERPRETATION

This chapter deals with the analysis of the data collected and
interpretation of the data

Chapter 4 : FINDINGS, SUGGESTIONS AND CONCLUSION

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

Chapt
er 2
 Theory of
Share Market

CHAPTER - 2

THEORY OF SHARE MARKET

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

Electronic Trading :- Electronic trading eliminates the need for physical trading
floors. Brokers can trade from their offices, using fully automated screen-based
processes. Their workstations are connected to a Stock Exchange's central
computer via satellite using Very Small Aperture Terminus (VSATs). The orders
placed by brokers reach the Exchange's central computer and are matched
electronically.
Stock Exchanges in India :- The Stock Exchange, Mumbai (BSE) and the
National Stock Exchange (NSE) are the country's two leading Exchanges. There
are 20 other regional Exchanges, connected via the Inter-Connected Stock
Exchange (ICSE). The BSE and NSE allow nationwide trading via their VSAT
systems.

Index :- An Index is a comprehensive measure of market trends, intended for

investors who are concerned with general stock market price movements. An
Index comprises stocks that have large liquidity and market capitalisation. Each
stock is given a weightage in the Index equivalent to its market capitalisation. At
the NSE, the capitalisation of NIFTY (fifty selected stocks) is taken as a base
capitalisation, with the value set at 1000. Similarly, BSE Sensitive Index or
Sensex comprises 30 selected stocks. The Index value compares the day's
market capitalisation vis-a-vis base capitalisation and indicates how prices in
general have moved over a period of time.
Stock :- The word stock simply refers to a supply. You may have a stock of T-
shirts in your closet, or a stock of pencils in your desk. In the financial market,
stock refers to a supply of money that a company has raised. This supply comes
from people who have given the company money in the hope that the company
will make their money grow.
A market is a public place where things are bought and sold. The term "stock
market" refers to the business of buying and selling stock. The stock market is
not a specific place, though some people use the term "Wall Street"—the main
street in New York City's financial district—to refer to the U.S. stock market in
general.

Why Companies issue stock :- If a company wants to grow—maybe build more

factories, hire more people, or develop new products—it needs money. It could
get a loan from a bank. But then it would owe money. By issuing stock, a
company can raise money without going into debt. People who buy the stock are
giving the company the money it needs to grow.
Not every company can issue stock. A business owned by one person (a
proprietorship) or a few people (a partnership) cannot issue stock. Only a
business corporation can issue stock. A corporation has a special legal status.
Like a school, its existence does not depend on the people who run it. Under the
law it is separate from the people associated with it, and has special legal rights
and responsibilities as well as its own unique name.

Why People Buy it :- Owning stock in a company means owning part of that
company. Each part is known as a share. If a company has issued 100 shares of
stock, and you bought one, you own 1% of that company. People who own stock
are called stockholders, or shareholders.
Stockholders hope the company will earn money as it grows. If a company earns
money, the stockholders share the profits. Over time, people usually earn more
from owning stock than from leaving money in the bank, buying bonds, or making
other investments
Funny fractions :- In April 2002, all stock exchanges in the U.S. began trading
their stocks in dollars and cents.
For instance, the price of a particular stock might go up $1.10. This means that
the price of a stock increased $1.10 over its previous price. If a share of stock
had been worth $10, it would now be worth $11.10.
This is different from the earlier system, when stocks were traded in fractions
based on 1/8th. If a stock worth $10 went up 1 and 5/8ths, it meant that the stock
had risen $1 plus 5/8ths of a dollar in price, or a total of $1.62. In other words, if
each share had been worth $10 previously, it would now be worth $11.62.
But why divide each dollar into eighths when it could simply be divided into
hundredths—a hundred pennies, to be exact? It's because the U.S. dollar is a
relatively new kind of currency. When the stock market opened at the end of the
eighteenth century, prices were based on the Spanish dollar, which is divided into
eighths.
Bears and Bulls :- Bears are cautious animals who don't like to move too fast.
Bulls are bold animals who might charge right ahead. An investor is said to be
"bearish" if he or she believes the stock market will go down. A "bearish" investor
will buy stock cautiously. A "bullish" investor believes the market will go up. He or
she will charge ahead and put more money into the market. An investor can be
bearish or bullish about a particular kind of stock.
Likewise, the term "bear market" describes a time when stock prices have been
falling on the whole. A "bull market" is a period when stock prices are generally
rising.

Chapt
er 3
 Analysis and
Interpretation

CHAPTER - 3

ANALYSIS AND INTERPRETATIONS

The data collected from the customers were systematically applied and
they are presented as tables under various headings in the following pages. They
are also arranged in such a way that a detailed analysis can be made so as to
present suitable interpretations for the same.
 TABLE -1

TABLE SHOWING AGE GROUP OF RESPONDENTS

S. No Age No. of Respondents Percentage

1 Below 30 years 29 41%
2 30 – 50 years 16 37%
 3 Below 50 years 15 22%
TOTAL 70 100%

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

It shows that majority of the respondents were below 30 years

TABLE -2

TABLE SHOWING THE GENDER RATIO OF THE RESPONDENTS

S. No Gender No. of Respondents Percentage
1 Male 42 60%
2 Female 28 40%
TOTAL 70 100%

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

TABLE- 3

EDUCATIONAL QUALIFICATION

S. No Qualification No. of Respondents Percentage

1 School level 5 7%
2 Diploma 12 17%
3 Under 35 50%
 graduate
4 Post graduate 18 26%
TOTAL 70 100%

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

TABLE - 4

INCOME

S. No Income No. of Respondents Percentage

Below 10000
1 18 26%
P.M.
10000 – 20000
2 40 57%
P.M.
20000 – 30000
3 11 16%
P.M.
Above 30000
4 1 1%
P.M.
 TOTAL 70 100%

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

TABLE - 5

INDUCING FACTOR

Inducing
S. No No. of Respondents Percentage
factor
1 Friends 40 57%
2 On-line advt. 10 14%
Financial
3 20 29%
Consultant
TOTAL 70 100%

The above table indicates that out of the total respondents, 57% of the
respondents were induced by Friends into On-line share trading, 14% of the
respondents were induced by On-line advertisements and 29% of the
respondents were induced by Financial Consultants.
 CHART- 1

INDUCING FACTOR
 40
35

30
25
Frds
20 O-ad
15 FC

10
5
0

Frds = Friends

O-ad = On-line advertisement

FC = Financial Consultant

TABLE - 6

INTERNET ACCESS

Internet Access No. of

S. No Percentage
Place Respondents
1 Home 19 27%
2 Stock Broker Office 33 47%
3 Browsing Centre 18 26%
TOTAL 70 100%

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

TABLE - 7

TRADING PERIODICITY
 S. No Trading Periodicity No. of Respondents Percentage
1 Daily basis 31 14%
2 Weekly basis 20 29%
3 Monthly basis 5 7%
4 Irregular 14 20%
TOTAL 70 100%

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

CHART - 2

TRADING PERIODICITY
 35

30

25

20 Daily
Weekly
Monthly
15
Irregular

10

TABLE - 8

SHARE BROKING COMPANY

S. No Share Broking Company No. of Respondents Percentage

1 Anandrathi 12 17%
2 Karvy 18 26%
3 Sharekhan 12 17%
4 Geojit 14 20%
 5 Il%FS 11 16%
6 Others 3 4%
TOTAL 70 100%

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

CHART - 3

SHARE BROKING COMPANY

 18

16

14

12
Anandrathi
Karvy
10
Sharekhan
8 Geojit
Il&FS
6 others

TABLE - 9

INFRASTRUCTURE OPINION

S.No Rating No. of Respondents Percentage

1 Poor 15% 21%
 2 Average 20% 58%
3 Good 15% 21%
TOTAL 70 100%

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

CHART - 4

INFRASTRUCTURE OPINION
 40

35

30

25
P
20 A
G
15

10

P = Poor

A = Average

G = Good

TABLE - 10

BANK RELATED ACTIVITIES

S. No Rating No. of Respondents Percentage

1 Very Good 12 17%
 2 Good 33 47%
3 Average 23 32%
4 Satisfactory 2 4%
TOTAL 70 100%

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

CHART - 5

BANK RELATED ACTIVITIES

35

30

25
VG
20
G
15 A
S
10

VG = Very Good
G = Good
A = Average
S = Satisfactory
 Chapt
er 4

Findings,
Suggestions &
Conclusion
 CHAPTER - 5

FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS:

The study has revealed the nature of the share investors, share broking
firms and investment atmosphere in Coimbatore.

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

Share trading in Coimbatore city seems to be good. To improve the volume of

share trade in Coimbatore city, these could be implemented

a) Conducting more awareness among the public through local media.

b) Training camps on the methods of on-line trade could be conducted.
c) Telecommunication and Internet provision could be further enhanced.
d) Share trading could be highlighted as a means to earn income for the
commerce graduates
e) House wives could be educated in ladies clubs etc.
CONCLUSION:

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

Books
1. Dalal Street Journal’s STOCK MARKET BOOK

2. How to make money trading with Charts Ashwani Gujral

2. Investing Rules From the Masters Philip Jenks

3. Intelligent Stock Market Investing N.J. Yasaswy

Journals & Magazines

1. Business World

2. Business India

3. Business Today

4. Capital Market

5. The Economic Times

6. Business Line

Websites
1. www.tradersplace.in
2. www.sharekhan.com

Appen
dix
 APPENDIX
QUESTIONNAIRE

CUSTOMER SATISFACTION TOWARDS ON-LINE SHARE

TRADING WITH SPECIAL REFERENCE TO COIMBATORE CITY

1) Name:

2) Age: i) below 30 []
ii) 30 – 50 []
iii) above 50 []

3) Gender:
i) Male []
ii) Female []

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

5) Income:
i) below 10,000 []
i) 10,000 – 20,000 per month [ ]
ii) 20,000 – 30,000 per month [ ]
iii) above 30,000 []
6) Marital Status
i) Married []
ii) Unmarried []

7) What induced you to begin on-line share trading?

i) Reference by friends []
ii) On-line advertisements []
iii) Advice by financial consultants [ ]

8) Were you doing share trading before choosing

online?
i) Yes []
ii) No []

9) Where do you access the internet?

i) Home []
ii) Stock broker office []
iii) Browsing centre []

10)How often do you do on-line share trading?

i) Daily basis []
ii) Weekly basis []
iii) Monthly basis []
iv) Irregular []

11)Are you a professional trader?

i) Yes []
ii) No []
12)Which site do you use for trading?
i) Anandrathi []
ii) karvy []
iii) Sharekhan []
iv) Geojit []
v) IL&FS []
vi) if others, please state ________________

13)Does the site guide you on on-line trading?

i) Yes []
ii) No []

14) Is the information provided by your on-line stock

broker sufficient?
i) Yes []
ii) No []

15)If no, are you interested in getting more

information?
i) Yes []
ii) No []

16)How would you rate the internet and

telecommunication facility in Coimbatore?
i) Poor []
ii) Average []
iii) Good []

17)Does your broker site provide you with up-to-date

news about IPOs (Initial Public Offer)?
 i) Yes []
ii) No []

18)How would you grade the bank associated activities

of the site?
i) Very Good []
ii) Good []
iii) Average []
iv) Not satisfactory []

19)Do you feel that there is more transparency in on-

line
share trading?
i) Yes []
ii) No []

20)Is the commission charged by the trading site

reasonable?
i) Yes []
ii) No []

21)Are you aware of T +2 method of trading?

i) Yes []
ii) No []

22)Is on-line trading simple?

i) Yes []
ii) No []

23)Do you feel that the trading volume will increase in

near future?
i) Yes []
 ii) No []

24)Does these affect you?

i) Money getting blocked []
ii) Delay in receiving share certificates [ ]
iii) No troubles []

25)What are your suggestions to develop share trading

in Coimbatore ?

__________________________________________.