A SUMMER INTERNSHIP REPORT

AN ANALYSIS OF CONSUMER ATTITUDES TOWARDS SHARETRADING: COMPARISION BETWEEN ONLINE SHARE TRADINGAND OFFLINE SHARE TRADING

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE

Of

MASTERS OF BUSINESS ADMINISTRATION Department of Management Studies, Jai Narain Vyas University, Jodhpur (Raj.) 2011-2013

Submitted to Dr. Meeta Nihalani Head of Department

Submitted by Kirti Jaiswal MBA(RMAT) Semester 3rd

ACKNOWLEDGEMENT
This project is undertaken by me, as a part of my MBA (RMAT) course, in the outgrowth of my experience of two month training in one of the reputed stock broking firms in India SHARE KHAN. I take great pleasure to thank and acknowledge the assistance and inspiration provided by Mr. Malay Joshi,Head Online Products and NRI Desk Mrs. Shanti Mantri Head, Back Department Mrs. Sanchita Sharma - Manger (Public Relations) Mrs. Mamta Shah- Executive Marketing Mr. Javed Akhtar Executive Marketing

who contributed in a substantial way during all the stages of preparation of this report. I also express thanks to the staff of Share khan Securities for allowing me to be trained under their expertise. I wish to record my thanks to Mr.Sunil jain (Customer Relationship Manger) for giving me an opportunity to work in the company. This acknowledgement would be incomplete without a word of thanks to Dr. Meeta Nihalani, who assisted me. I also express thanks to the faculty staff, library staff of the department and my classmates for guiding me.

CHAPTER SCEHME

1. 2. 3. 3.1 3.2 3.3 3.4 4. 4.1 4.2 4.3 5. 6. 6.1 6.2 6.3 6.4 6.5 6.6 6.7 7. 7.1

Introduction Review of literature Concept of freelancer wedding planner Qualification, education and experience Skills and knowledge Working condition Being a wedding planner your job may consist of following Scenario in India Wedding exhibition and carnivals Wedding malls Effects of recession on wedding in India
Nature & Growth of Business Advantages of begin a freelancer wedding planner

Getting paid as a wedding planner Working freelance as an independent consultant Having fun as an arranger of events Freedom of being your own boss Skills development flexibility National exposure Objective of the study Objectives

7.2 7.3 8. 8.1 8.2 8.3 8.4 8.5 8.6 9. 10. 11. 12.

Assumption hypothesis Research Methodology Research design Data collection method Sampling unit Sampling technique Sampling size Area of research Analysis and interpretation Findings of the study Conclusion References

COMPANY PROFILE

Share khan Ltd. is one of the leading retail stock broking house of SSKI Group which is running successfully since 1922 in the country. It is the retail broking armor the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Share khan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository investment siteservices, online trading, investment advice etc. The firms online trading and

www.sharekhan.com was launched on Feb 8,2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over one lakh customers. The content-rich and research oriented portal has stood out among its contemporaries because of it steadfast dedication to offering customers best-of-breed technology

andsuperior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. On April 17, 2002 Sharekhan launched Speed Trade, a net-based executableapplication that

emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net based trading station of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto Standard for the Day Trading community over the net. Share khans ground network includes over 331 centers in 137 cities in India which provide a host of trading related services. Share khan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, VeriSign

Financial Technologies India Ltd, Spider Software Pvt Ltd. To build its trading engine and

content. The Morakhiya family holds a majority stake in the company. HSBC, Intel &Carlyle are the other investors. With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance18 years ago. Presently SSKI is one of the leading players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market in each of these segments. SSKIs institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic

Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organizations revenue, with a daily turnover of over US$ 2million. The Corporate Finance section has a list of very prestigious clients and has many firsts to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and andShoppers Stop.

PROFILE OF THE COMPANY: Name of the company: Share khan ltd. Year of Establishment: 1925 Headquarter: Share Khan SSKIA-206 Phoenix House Phoenix Mills Compound Lower Parel Mumbai - Maharashtra, INDIA- 400013 Nature of Business: Service Provider Services: Depository Services, Online Services and Technical Research. Number of Employees: Over 3500 Website: www.sharekhan.com Slogan: Youre Guide to The Financial Jungle.

ACHIEVEMENTS OF SHAREKHAN: Rated among the top 20 wired companies along with Reliance, HUJl, Infosys, etc by Business Today, January 2004 edition. Awarded Top Domestic Brokerage House four times by Euro money and Asia money.

Pioneers of online trading in India amongst the top 3 online trading websites from India. Most preferred financial destination amongst online broking customers. Winners of Best Financial Website award. Indias most preferred brokers within 5 years. Awaaz customers Award 2005.

Future Plans: 2,00,000 plus retail customers being serviced through centralized call centers/ solutions Branches / Semi branches servicing affluent / aggressive traders through high skill financial advisor. 250 independent investment managers/ franchisee servicing 50,000 highly valued clients. New initiatives Portfolio management Services and commodities trading. web

Vision: To be the best retail brokering Brand in the retail business of stock market. Mission: To educate and empower the individual investor to make better investment quality advice and superior service. decisions through

Share khan is in fact Among the top 3 branded retail service providers No. 1 player in online business Largest network of branded broking outlets in the country serving more than 7, 00,000 clients.

Get everything you need at a Share khan outlet!

All you have to do is walk into any of our 640 share shops across 280 cities in India to get a host of trading related services our friendly customer service

staff will also help you with any accouts related queries you may have.

A Share khan outlet offers the following services: Online BSE and NSE executions (through BOLT & NEAT terminals) Free access to investment advice from Share khans Research team Share khan Value Line (a monthly publication with reviews of recommendations, stocks to watch out for etc) Daily research reports and market review (High Noon &Eagle Eye) Pre-market Report (Morning Cuppa) Daily trading calls based on Technical Analysis Cool trading products (Daring Derivatives and Market Strategy) Personalized Advice Live Market Information Depository Services: Demat & Remat Transactions Derivatives Trading (Futures and Options) Commodities Trading IPOs & Mutual Funds Distribution Internet-based Online Trading: Speed Trade

REASON TO CHOOSE SHAREKHAN LIMITED Experience: SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia Money broker's poll held recently, SSKI won the India's Best Broking House for 2004 ' award. Ever since it launched Share khan as its retail broking division in February 2000, it has been providing institutional level research and broking services to individual investors. Technology: With its online trading account one can buy and sell shares in an instant from any PC with an internet connection. One can get access to its powerful online trading tools that will help him take complete control over his investment in shares. Accessibility: Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for

investors. These services are accessible through its centers across the country over the internet (through the website www.sharekhan.com) as well as over the Voice Tool. Knowledge: In a business where the right information at the right time can translate into direct profits, one can get access to a wide range of information on Share khan limiteds content-rich portal. One can also get a useful set of knowledge-based tools that will empower him to take informed decisions. Convenience: One can call its Dial-N-Trade number to get investment advice and execute his transactions. Share khan ltd. has a dedicated call-centre to provide this service via Toll Free Number 1800-227500 & 1800-22-7050 from anywhere in India. Customer Service: Share khan limiteds customer service team will assist one for any help that one may require relating to transactions, billing, demat and other queries. Its

customer service can be contacted via a tollfree number, email or live chat on www.sharekhan.com. Investment Advice: Share khan has dedicated research teams of more than 30 people for fundamental and technical researches. Its analysts constantly track the pulse of the market and provide timely investment

advice to its clients in the form of daily research emails, online chat, printed reports and SMS on their mobile phone.

SSKI Group Companies SSKI Investor Services Ltd (Share khan) S.S. Kantilal Ishwarlal Securities SSKI Corporate Finance I dream Productions Palm spring estates Pvt Ltd. Fin flow Investment Pvt Ltd. I dream Production UK Pvt Ltd. Share khan Commodities Pvt Ltd. Archfund Properties Pvt Ltd.

SWOT ANALYSIS Strengths: It is a pioneer in online trading with a turn over of Rs.400crores and more than 800 peoples working in the organization. SSKI the parent company of Share Khan has more than eight decades of trust and credibility in the Indian stock market. In the Asian Money Brokers poll SSKI won the Indias best broking house for 2004 award. Share Khan provides multichannel access to all itscustomers through a strong online presence withwww.sharekhan.c om, 250 share shops in 130 cities and call-center based Dial-n-Trade facility Share Khan has dedicated research teams forfundamental and technical research. Which constantlytrack the pulse of the market and provide timelyinvestment advice free of cost to its clients which has a strike rate of 70-80%. Weakness: Localized presence due to insufficient investments for country wide expansion. Lack of awareness among customers because of non-

aggressive promotional strategies (print media, newspapers, etc).

Lesser emphasis on customer retention. Focuses more on HNIs than retail investors whichresults in meager market-

share as compared to closecompetitors. Opportunities: With the booming capital market it can successfully launch new services and raise its clients base. It can easily tap the retail investors with small savingthrough promotional channels like p rint media, electronicmedia, etc.

As interest on fixed deposits with post office and banks a real time low, more and more small investors are entering into stock market.

Abolition of long term capital gain tax on shares and reduction in short term capital gain is making stock market as hot destination for investment among small investors.

Increasing usage of internet through broadband connectivity may boost a whole new breed of investors for trading insecurities.

Threats: Aggressive promotional strategies by close competitors may hamper Share Khans acceptance by new clients.

Lack of sufficient branch-offices for speedy delivery of services.

Other players are providing margin funds to investors on easy terms whereas there is no such facility in share khan.

More and more players are venturing into this domain which can further reduce the earnings of Share Khan.

EXECUTIVE SUMMARY
The objectives of the proposed study are -1) Identify the specific factors that affect consumer attitudes towards share trading. a) Identify the specific factors that affect consumer attitudes towards online share trading. b) Identify the specific factors that affect consumer attitudes towards offline share trading. 2) Comparison between online and offline share trading methods. The methodological approach to this study is descriptive, because we attempt to identify and explain variables that exist in a given situation and to describe the relationship that exists between phenomenon, these variables but in order to provide a picture of a particular not to ferret out cause-

effectr e l a t i o n s h i p . T h e p r i m a r y d a t a w a s c o l l e c t e d t h r o u g h q u e s t i o n n a i r e f i l l i n g a n d b y c o n d u c t i n g telephonic interviews. The secondary data was collected from journals, texts written by renowned marketing gurus of reputed institutes around the world and the internet.

India has a large chunk of population which is at lower income level and at middle income level. There is a need of creating awareness among them for share trading and the tremendous potential it has. They are doing trading on the old methods which were used in the past. Now with the advent of technology there are many options available to the traders which they can use without any fear. The trend is moving towards the online share trading but still it has a lot to cover. The traders are more of young age and middle age and dont fear from risk taking but the lack of knowledge doesnt allows t h e m t o d o s o . S o t h e stock broking companies should take measures to empower the normal

investors so that they can trade with the latest technologies available.

Target the youth as they are most potential customers of the stock market as their interest towards stock trading is increasing. The stock broking companies should educate

the investors by giving them timely help in the form of reports and tips. The com panies should try to work in more transparent w a y . P e o p l e w a n t g o o d s e r v i c e s a n d are ready for p a y i n g e x t r a p e n n y. P e o p l e p r e f e r E a s e o f transactions and

security. So, brokerage companies should focus on security and making transactions as simple as possible with simple usage of technology. The stock broking companies should also go for tieups with the leading banks.

LITERATURE SURVEY
The stock market has been a part of people's lives throughout the twentieth century. Millions of people around the world have money invested in their countries own respective markets. Since the coming of age of online trading, more people have been investi ng their money in stocks than ever before because of the advantages it offers. Online trading allows people to trade stocks quickly without the help of a broker, letting the investors have more control over their transactions. The competition between companies has helped decrease the cost of making the transactions. In addition to that, ordinary people now have access to information that could only be seen by brokers. Overall, online trading saves time, money and gives power to the investor rather than the broker.

The combined effects of financial services companies striving to drop the cost of providing customer service and the significant rise in individual investors' interest in taking control of their own investments continues to increase the use of online securities trading. Further, many individual investors rely on the internet as a means of learning as much as they can about specific investments before executing a stock or bond trade online, and this factor alone is changing the lan dscape of f i n a n c i a l s e r v i c e s . It is seen that the financial services firms are walking a fine line between automating transactions by putting powerful investment tools in the hands of individual investors, while at the same time educating them of the financial benefits of long-term investing. With the advancement of online trading individual investors have more control over their funds than

ever b e f o r e , y e t w i t h t h a t f r e e d o m c o m e s a h i g h l e v e l o f r e s p o n s i b i l i t y t o m a k e s u r e t h e a d v i c e , applications and tools they gain access from financial services firms are in fact the best match with their investment needs.

For this industry, analysis can be conducted in an effort to determine who has the power, the customers or the suppliers? Competitive forces provide buyers or suppliers with an advantage in terms of who holds the bargaining power.

Tumbling markets, falling share prices.... make us appear the trading exercise very lucrative. But still puzzled, where will we be able to choose the right lot from the markets. The best way to predict the future is to invent it.

3.1 History of Stock Market

It was in the year 1875 that the working of stock exchange in India started. BSE is the oldest stock market in India. Indian stock trading started with 318 persons taking membership in Native Share and Stock Brokers Association, which is now known as the Bombay Stock Exchange or BSE in short. In1965, BSE got permanent reco gnition from the Government of India. National Stock Exchange (NSE) comes second to BSE in terms of popularity. BSE and NSE represent themselves as synonyms of Indian stock market. The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is compiled based on the performance of the stocks of 30 financially sound benchmark

c o m p a n i e s . I n 1 9 9 0 t h e B S E crossed the 1000 mark for the first time. It crossed 2000, 3000 and 4000 figures in 1992. The reason for such huge surge in the stock market was the liberal financial policies announced by the then financial minister Dr. Man Mohan Singh. The buoyant mood of the market was suddenly gone with Harshad Mehta scam. It came to public knowledge that Mr. Mehta, also known as the big -bull of Indian stock market diverted huge funds from banks through fraudulent means. He played with 270 million shares of about 90 companies. Millions of small-scale investors became victims to the fraud as the Sensex fell flat shedding 570 points. Thus, from that day it became very clear that the stock market is not a place where you can earn money easily without taking into considerations about your environmental changes. It also made it very clear that the small investors should themselves as safe as possible because of the uncertainty in the market. To prevent such frauds, the Government formed The Securities and Exchange Board of India (SEBI), through an Act in 1992. SEBI oblige several rigid measures to protect the interest of investors. Now with the inception of online trading and daily settlements the chances for a fraud is nil as the stock broking companies had to make it very to each and every investor bout the various issues of the stock market. Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was crossed in June and the 8000 mark on September 8 in 2005. After the liberalization, when the

gates

were

openf o r t h e f o r e i g n i n v e s t o r s t h e I n d i a n s t o c k m a r k e t w a s f l o o d e d w i t h t h e F D I s ( f o r e i g n d i r e c t investments) and the market

has shown tremendous amount of volatility. And very recently market has even touched the 21,000 mark.

3.2 Stock Market

The market or place, where securities, viz. shares are exchanged or traded or simply where buying or selling of shares takes place, is called stock exchange or stock market. In India there are two types of stock exchanges: 1. National Stock Exchange (NSE) 2. Bombay Stock Exchange (BSE) NSE is a Mumbai-based largest stock exchange in India in terms of daily turnover and number of trades. Though it is mutually-owned by a set of leading financial institutions like banks, insurance companies but its ownership and management operate as separate entities. It is the second fastest growing st ock exchange in the world with a recorded growth rate of 16.6%. It was incorporated in November 1992 as a tax paying company. In April 1993 it was recognized as a stock exchange under the Securities Contracts Act, 1956. The capital market (equities) segment of the NSE commenced its operations in November 1994, while operations in derivatives segment commenced in June 2000. It is the third largest Stock Exchange in the world in terms of number of trades in equities. BSE is the oldest stock exchange in Asi a and also the biggest in t h e w o r l d i n t e r m s o f l i s t e d companies with 4800 listed companies as of August 2007. It was established in 1875. It played a pivotal role in the development of its index SENSEX which is tracked worldwide. It has a PAN India presence in 417 cities and towns. In a nation with middle class population of above 200 million, most of whom dream of a better, financially comfortable tomorrow, the stock market is obviously seen as the perfect place to invest when you consider that stock markets can make you rich in a very short span of time provided you play your cards correctly. But the

scams in the last centuries have made the investors to play it safe, if they dont know the rules of the game. In the past few years though have seen a wave of technology enhancements sweeping through the Indian share markets, wiping out archaic conventions. Due to this we have seen many changes coming into the picture like online share trading gradually coming to India. These technological innovations have been brought out most proactively by NSE. The online share trading started way back in February 2000 with the Geojit Securities conducting the first online transaction where 100 shares of Reliance was traded by SEBI Chairman D R Mehta for Geojit Chairman A P Kurien. Since then a lot has changed in the Stock market. Currently, onlinetrading volumes in India are just about 20% of the total trades. Slow off the blocks, but online share

Trading in India is poised to grow very fast in the future. From a base of about Rs 3 crore in April2000, online trading volume has risen to nearly In the stock market, basically trading of shares is done apart from commodities trading. Trading is the process of buying at lower price and then selling it at a higher price for earning profits. Share trading is one of the most successful trading and it has become simpler, fast, and secure from offline trading or phone trading into online trading. Online trading is done with the help of internet. One of the biggest problems with the stock market is that there are no guarantees. After doing a lot of research at your home still it may be possible that the stock which you had picked falls to oblivion. Share trading is done in mainly two ways:

1. Online share trading 2. Offline share trading

3.3 ONLINE SHARE TRADING Online share trading is done with the help of computer, internet connection and with trading or demat account is called online share trading, or we can say that online trading is the trading of securities v i a t h e i n t e r n e t . I f yo u w o u l d l i k e t o d o o n l i n e s h a r e t r a d i n g t h e n yo u s h o u l d h a v e a c o m p u t e r , internet connection and online

trading account. It is done via internet means that all the transaction is settled electronically.

Advantages: 1. The first and main benefit of this is that in online trading the member does not need to go to the share market for checking, which consumes a lot of time. All the information about shares, stock market is just one click away and it has made trading much simple, easy and attractive. 2. Dependence on broker or anybody else is nil for placing or squaring off the order. In short one is his/her own boss for trading of shares. 3. Its not possible or viable for a broker to update customers about each and every news of the market or any news which can have any influence on the share market. So if someone is doing online trading himself, then a disaster can be averted. People can get news and updates on various websites and also on their online trading system and most of the information will be free of cost. 4. All the transactions and related documents can be seen online and can also be downloaded to the PC without depending on any broker. Status of the amount can also be checked on daily basis through online trading system.

Disadvantages 1. One may face a problem of disconnection from internet and hence will not be able to login-in and do share trading. 2. One may also face problem like electricity cut-off and at that time one has to call his broker and place the order for execution. Due to all of the above advantages it is clear that the trading in India is spreading like fire and is surely going to increase in the future.

3.4 OFFLINE SHARE TRADING In offline trading the transactions are done through the phone and when to buy or sell is directed through phone. In other words trading will be done by another person on ones behalf based on the instructions given by one, and then the other person can be a broker. The broker will do buying and selling of shares on ones behalf depending on the instructions given by one. This

type of trading was done in the past but nowadays most of the trading is done through computers i.e. online. E.g. Suppose that if Mr. X wants to sell n number of shares when the share price reaches Rs. 100, then Will tell his broker to sell the share at Rs 100 (i.e. when the price of Rs. 100 is reached). Nevertheless, with all the convenience of online trading there are still investors who prefer the old fashion way of offline trading. Offline trading has lost some popularity but it is still the main form of investing. Offline trading offers many benefits as well. Advantages: 1. The one benefit that an investor appreciates the most is that they are not alone when making investment decisions. 2. There are experienced and professional brokerage companies that handle their investments for them. 3. Investors are not faced with the challenge of making these vital investment decisions; especially, if they do not have the experience necessary to make the appropriate investments. 4. Also, there is someone there to answer any questions that may cause concerns. Not to mention, with offline trading mistakes are less likely to take place. No one wants to throw their money away or stand by and watch someone else throw their money away. It may be wise to hire a professional to assist you in making the correct investment decisions if you feel you lack the knowledge necessary. The reason why online trading has emerged is due to the emergence of IT. Doing transactions online is always advantageous and easy plus less time is taken by doing transactions online. Also following are the Disadvantages of doing transactions offline: 1. Not the cheapest fees available. 2. Lost some of its competitiveness in attracting new customers with higher commission rates. 3. Time consuming process. 4. Slow process than online trading. A delay of even a second can change the value of a particular stock greatly.

3.5 PURPOSE OF STOCK MARKET The basic purpose of stock market is to provide capital for investment and for the investors liquidity. For large companies to emerge and function effectively there is a need to pool risk capital which

30individual entrepreneurs cannot bring in on their own or with the help of relatives, friends and acquaintances. The stock market is one of the most important sources for companies to raise money. This allows businesses to raise additional capital for expansion or for financial needs by selling shares of the company. Selling of shares is like selling of the ownership of the company in public market. Share prices also affect the wealth of households and their consumption. Thus, central banks keep an eye on the control of stock market and on the smooth operation of financial systems functions. The collection and delivery of shares is also very important to eliminate the risk to an

individual buyer or seller. The smooth functioning of all these activities facilitates economic gro wth and increased prosperity.

3.6 RELATION BETWEEN STOCK MARKET AND MODERN FINANCIAL SYSTEM There is a most remarkable transformation in the financial systems in most countries. One such transformation is disintermediation. The heightened interest of general public in investing in the stock market, either through equities or through mutual funds A portion of the funds involved in saving and financing flows directly to financial markets instead of being routed via banks deposit operations. Recent trends have shown that shares have made up an increasingly large proportion of households financial assets. In all developed economic systems such as EU, the United States, Japan and other nations, the trend has been same: saving has moved away from traditional bank deposits to more risky securities of one sort or another.

3.7 PRESENT STATE OF STOCK MARKET At present the stock market is not doing fine but thats a natural phenomenon to happen, i.e. anything that goes up at one point of time, it has to come down at some other point of time. That is what is happening with the stock market. But here lies a big opportunity for investors. Share prices for most of the stocks are at their 52 week down. Hence, it is an appropriate time to buy any share (obviously your pocket should allow that to happen) and forget about selling them for at least 1 year or according to your needs (when you want to exit).There are many reasons for this situation of the stock market such as rise in fuel prices, inflation, and recession cycle in the USA, increasing fiscal deficit due to tons of subsidies, etc. Stock market may fluctuate as per positive or negative news, political factors and many other factors. Selling on part of the FIIs and

bearish sentiment of the investors have kept the market in pressure as selling has been witnessed from the last couple of weeks. Nifty 50 had broken the psychology level of 4800 and even4600 and it is likely to break even 4200 mark. It is very difficult to believe that Indian stock market has gone below 14000 points after crossing 20000 points mark at one time. From last few months, India stock market is on constant down fall and investors have suffered huge losses accounting for billions of dollars. Moreover, people still do not have clear idea about whether to invest in stock market in present condition or remain away from it. Some experts have even predicted that market can slide below 10,000 points in worst conditions because stock market is reacting negatively to rise in inflation and increasing crude oil prices. Right now its a right time to buy stocks. Another thing is that if someone is new to the stock market then he/she should not go for trading, better to go for investments i.e., go for long term investment, which will always increase wealth.

3.8 CONSUMER BEHAVIOR It is the study of how, when, what, and why people buy. Its elements blend with the elements of marketing and psychology. It helps us to understand the buyer decision making process, bothi ndividually and in groups. It helps us to study the characteristics of individual consumers like demographic, psychographic, and other behavioral variables in an attempt to understand peoples needs and wants. The study of consumer behavior helps the firms and organizations in improving their marketing strategies by understanding various issues such as: 1. How consumer thinks, feels, and select between different alternatives? (e.g., brands, products) 2. How is consumer influenced by his or her environment? (e.g., culture, family, friends) 3. Consumer knowledge or information processing abilities.4.How marketers can adapt and improve their marketing campaigns and strategies to reach the consumers more effectively.

4.1 REASONS FOR STUDYING CONSUMER BEHAVIOR Consumer analysis helps managers in many ways like: 1. Designing the marketing mix. 2. Segmenting the market place accordingly to consumer needs and wants. 3. Positioning and differentiating products of their companies differently to each consumer. 4. Provides knowledge about overall human behavior.

5. Provides the recent trend in the market among the consumer preferences.

4.2 FACTORS THAT INFULENCE CONSUMER BEHAVIOR The factors that influence consumer behavior are divided into mainly two categories: 1. Internal Factors: The internal factors include the psychological factors such as: a) Needs and motives b) Personality c) Perception d) Learning) Attitudes f) Involvement 2. External Factors: The external factors include the factors from the environment such as: a) Socio-cultural factors Societal values, economic factors, media, reference groups, etc. b) Demographic Characteristics Age, gender, income, educational level, occupation, social

class, ethnic group, etc.

RESEACRH METHODOLOGY
Research objective:
Primary objectives: of the proposed study are: 1.) Identify the specific factors that affect consumer attitudes towards share trading. i) Identify the specific factors that affect consumer attitudes towards online share trading. ii) Identify the specific factors that affect consumer attitudes towards offline share trading. 2.) Comparison between online and offline share trading methods. Secondary objective: To learn about the working of share market. The methodological approach to this study is descriptive, because we attempt to identify and explain variables that exist in a given situation and to describe the relationship that exists between these variables in order to provide a picture of a particular phenomenon, but not to ferret out cause-effect relationship. The phenomena to be studied, consumer attitudes or behavior, is not new in the field of research but is of utmost importance for the companies to strategies their future steps by increasing the understanding of the current consumer behavior pattern in this age of electronic services era. The first source of secondary data needed for the study was collected from the database of the customers of Share khan Ltd. And other sources for the secondary data are internet, from where we got the database of the people who were interested in stock

trading.The primary data was collected through questionnaire filling and by conducting telephoni cinterviews. The questionnaire was administered to those people who are doing stock trading and were selected in terms of their trading habits.

The questionnaire is designed in structured form and most of the questions were multiple choice questions. And some open ended questions were also included in the questionnaire. Respondents were asked to complete 5 point Likert scale in some questions. The data collected was analyzed to see if there are any demographic differences between the users of online and offline trading in an effort to investigate the general belief that the younger. More educated and the more affluent the population are more likely to adopt online share trading. Also, all the factors were tried to be accommodated in the study which were expected to affect the adoption of online trading. The factors being cost of adoption, security concerns, convenience, ease of use,

internet accessibility and speed, trust in ones broker. A total of 50 respondents participated in this limited

survey. The objective was to gather a highly representative sample as the sample represents geographically and the respondents were chosen in terms of their trading habits. The statistical tool for doing the analysis on the primary data is SPSS. As it is known statistics is a tool to make decisions.

RESEARCH METHODOLOGY:

6.2.1 COLLECTION OF DATA For collecting the primary data from the users a questionnaire was designed. Thisquestionnaire was administered to the individuals who already are investing or trading in the stock market. Sample questionnaire is attached in annexure. 6.2.2 SAMPLING METHODOLOGY Sampling locations JODHPUR Sampling units people investing in stock market. Sampling techniques probability sampling (convenient sampling). Sample size 50 Mode of survey Personalized interviews- Questionnaire- Telephonic interview

6.2.3 TIME FRAME - 2ndMay to 30thJune

6.3 Questionnaire Design: In our survey, answers were of interest not intrinsically but because there exists a relationship to something we were supposed to measure. Our questionnaire was

reliable and provided consistent results. In comparable situations, and valid; answers correspond to what they are intended to measure. It is always what they are intended to measure. It was always important to us to remember that the answers are valuable to us to the extent that it can be shown to have a predictable relationship to factor subjective states that are of interest. There were two main objectives in mind while designing the questionnaire: To maximize the proportion of subjects answering our questionnaire that is, the response rate. To obtain accurate relevant information for our survey.

6.4.2 Survey Place Since we surveyed only those people who are investing in the stock market so we had contacted the respondents over the phone and. The rest were filled by the investors who are coming to the Connaught place share trading shops and branches.

6.5 SAMPLING AND SAMPLE SIZE 6.5.2 Sampling Method The method which is selected for the research is convenient sampling, all elements of the frame are treated equally and it is not subdivided or partitioned. Furthermore each possible sample of a given size (n) has a known and equal probability. Since there are each and every type of people coming to Connaught place from every corner of Delhi NCR so there was an equal chance of any person to be asked and surveyed. This implies that every element is selected independently of every other element. The samples were drawn by a random procedure from a sampling frame. We can even say that this method is equal to a lottery system in which names are placed in a container, the container is shaken and the names of the winner are then drawn out in an unbiased manner. In the same way our sample also consists of getting selected on an equal chance from the population. The two benefits of doing our research project is that it is Easily understood Results projectable

6.5.3 Population A population is the aggregate of all the elements that share a common set of characteristics and that compromise the universe for the purposes of the marketing research problem. Information

about population parameters may be obtained by taking a consensus or a sample. Typically, we seek to take action on the population which invests in share market and do trading in shares, mutual funds and commodities. So according to our Industry guide Mr. Nitin Vats, in the Whole Delhi NCR there are approximately 5 and half lakh traders and investors. Since our population cannot be brought under one cluster and strata thus we were not confined to just one area. Also our population was scattered all around the NCR so we tried to take the attributes and features of the whole population by interviewing the investors who are coming in to the Connaught place. We even made calls to many traders by calling randomly and asking them if they are willing to be a part of our survey. Thus, we conducted telephonic interviews also. Sample A sample is a subgroup of the population selected for participation in the study. Samplecharacter istics, called statistics, are then used to make inferences about the population

parameters.The inferences that link the sample characteristics and population parameters are esti mation procedures and tests of hypothesis. 6.5.4 Sample Size Sample size refers to the number of elements or subjects included in the study without any biasness.

FUTURE OF SHARE TRADING WITH INDIAN PROBLEMS

While analyzing the e-broking scenario in India some of the structural aspects need to be kept in mind. Firstly, the breadth of participation in India in the stock market is very low. The awareness

among the people is still not up to the mark. The stock broking companies should take this as achallenge and should come up with some new and innovative ways of trading easily andconveni ently. The broking companies should go for some tieups with the leading private andgovernment banks so that it would be easier for the traders to transfer their funds as and when required. Even the brokers should increase the level of services. Like of we take the present market situation, they are not in a position to convince the traders to invest more as this is the best time for investments. Traders still want to play it safe on their part but lacking the knowledge about the market is also very dangerous. So the companies should try and increase the knowledge of the traders so that they can do more trading in the falling market also. Secondly, internet penetration in India is very low. In other foreign markets, online brokerages are advertised heavily. But India the online trading so far has not seen similar levels of aggressive advertising, with the exception of some leading broking companies like ICICI Direct, Home Trade and Share khan ltd. apart from this, there is one more limitation of the Indian stock market that only the scrips that have been compulsorily dematerialized can be traded on the net. Thirdly, the brokerage charges in India are very low with brokers charging from 0.85 to 1.30 per trade. Thus, the scope for expansion of the market through reduction in brokerage is far lower. Fourthly, technology bottlenecks are responsible for online trading to a large extent and it has not taken off the ground. The main cause poor bandwidth is prominently one of the main reasons behind this. The three main technological obstacles which are responsible for online trading are internet penetration, bandwidth, and poor quality of ISP. Fifthly, a physical presence is a must for any investor in India. An average investor calls his broker for confirming about the execution of his order and thus the purpose of online trading is lost at that point itself. This happens because if the connection is lost in the middle of execution then the investor cant be sure about his order status and thus makes a call to his broker. As the online trading is still at the grass root level and most traders going for offline trading, thus a physical presence is a crucial for any brokerage firm in India.

During the survey, one more thing came to lime light that banking, broking and depository platforms, though all linked to same trade, function on entirely different platforms. Integrating all of these is a major obstacle. In spite of the all the hassles and issues Future looks quite bright . Big players like Reliance, Airtel and BSNL are laying optic fibre across the country and the connectivity issue will mostly be solved. Although the risk appetite of the traders has reduced but the participation level has increased a lot and is stabilizing to high levels. The trend towards online trading is increasing very rapidly and this is shown by its rapid acceptance in developed and structured capital markets. NSE and BSE have also influenced the daily traders to learn the methods of online trading. Even the SEBI rules have also been very strict now and the initial fear of entering into the markets is also reducing gradually. The volatility in the stock market is also limited and varies according to the category in which the shares of any particular company are. The dematerialization of shares is also been made mandatory by SEBI and hence online trading has this advantage of flourishing in near future. The number of online stock broking companies is also on a move and more and more companies are giving the option of online trading to their customers at very low rates which are almost negligible as compared to the advantages the online trading has. Assurances to secure online transactions are very high as most of the stock broking firms are using algorithms that use double encryption. MOBILE TRADING THE FUTURE The buying and selling of shares using the mobile phones is the next step of technology advancement. As the mobile technology is increasing day-by-day, the mobile trading is not very far. Even the leading stock broking firms are also ready for this. They are seeing a substantial growth in this segment. The broking houses are waiting for the permission from the stock exchanges to offer mobile trading and stock exchanges are awaiting the permission from the SEBI. The technology is ready, mobile operators are ready and stock broking houses are waiting in the wings too. With the fast connections through mobile phones with technologies like GPRS and EDGE (coming to India in near future) mobile trading would be very easy and one execute their orders through phones. Already the stock broking are providing streaming quotes, tips and research reports on the mobile phones. Users can see the market rates, enter, modify, cancel orders, and view their positions and transaction through a fully secure channel. From the phone

based trading to online trading, the stock market has covered a very large distance and now from online trading to mobile trading is not very far. There are various supporting reasons behind this advancement: Growth in database the registered base of online trading customers is approximately around22 lakh till the start of 2008 and is growing very fast. A large portion of this is young professional who are in software, engineering, BPOs and other industries. These are not intimidated by the technology and are ready to adopt new technology very frequently. Untapped potential rules in various companies are different. Some allow their employees to do trading in their offices hours and some dont, so they do trading either in their homes or with their laptops or cybercafs. So if the trading facility were made available on the mobile phones too then a large number of customers would use this facility. High volumes it may be possible that trades per person may be low but the volumes could be high. This will also earn more revenues for the broking houses and mobile company also. Risk in times of crisis or volatile market, online trading is less risky as one second is also very important in the stock market. The one second can even make you or destroy you. Less intimidating using mobile is much easier than using internet. As mobile is in use from a very long time and people also finding it easy to use. Thus trading on mobile will much easier and user friendly to people as they dont have many problems using mobile phones.

CONCLUSION

With increased globalization, companies need to conduct continuous analysis in order to developstrategies to address the contemporary condition of competitive markets. Industry analysi s is necessary to determine the forces of competition. The retail brokerage industry has experienced a number of changes in recent times, particularly due to the shift in consumer behavior from using traditional full service brokerages to discount firms to online investing through e-trading. By doing this survey it is found that the consumer attitude towards share trading is very much positive. They are willing to adopt new technology provided they are given proper knowledge about it. And, brokerage companies which can quickly adopt new technologies into the system with reliable and ease in transactions will succeed and can tap greater pie of the market. There are various factors which affect the attitudes of customers towards share trading:

People having more income are ready to take more risks and thus schemes should introduce for them separately.

People of age more than 50 years are more willing to put their money into bank deposits. They should be targeted basically for the PMS as they want more security and PMS till date has given good results

Brokerage being an important factor for many people but as such brokerage charged but many stock brokers are very less so more expansion of the customer database on the basis of reducing brokerage is not possible but they should try and improve their services as they matter the most for all the traders.

The investors are more in their youth age and middle age and they are much more inclined towards using the services of Share khan ltd. People trust Share khan more as the tips given by the Share khan have a greater percentage of accuracy. So Share khan has become a brand and it should try to increase its customers database by launching various schemes.

Youth and middle age dont hesitate while taking risk. They want to earn money very fast. Middle aged people are moderate risk takers as they are at an age where they have to keep many things in their mind and hence they dont take much risk. Old age people are low risk takers as they dont want to lose their money and also they want to accrue their wealth instead of losing it.

RECOMMENDATIONS

1. As its been observed that around 48% of the respondents are using online trading and only 13% of the respondents are doing offline trading, so there is a greater scope to target people, who are not doing stock trading, by aggressive advertising campaign and creating awareness about the brokerage company highlighting all the benefits of technology and Reliability factor. 2. Another thing thats been found out during this survey is that people value services more than cost. People want good services and are ready for paying extra penny. 3. People prefer Ease of transactions and security. So, brokerage companies should focus on security and making transactions as simple as possible with simple usage of technology. 4. There are some companies which dont have tie ups with many banks, so that trading account can be linked with the savings account of the brokerage company. So, a focus to go for tie ups with major nationalized bank should be there. 5. Companies should provide knowledge to the customers regarding stock market. Aim should not be making maximum profit at once. The advantage of this will be that the customer will trust broker and will recommend to the other people also. 6. The company should provide a manual to their clients to ease them through the process of online trading.

LIMITATIONS

Sometimes there are unknown reasons on the basis of which markets operate and the findings of the project may not hold true in such cases. That is the reason why the market is sometimes called as Irrational creature.

Mostly investors who invest in the stock market have money and they just want to invest with no predefined objectives in mind and hence they rely upon the suggestions of the distributors and marketing executives, which deviates the actual behavior from the expected behavior .

Lack of awareness of stock market: since the area is not known before, it takes a lot of time in convincing people to invest in share market.

Some respondents are unwilling to talk or they dont have time to respond.

Misleading concepts: some people think that shares are too risky and are just another name of gamble. But its not at all risky for long term investors.