Customer Buying Behavior

for Demat Account

Group XVaibhav Munjal | Vikram Sunda | Vinoth Shankar Nagarajan |

Viral Mehta | Vishal Sah

• Account that holds all your shares/securities in electronic or dematerialized form

• Account holds the certificates of financial instruments like shares, bonds, government securities, mutual funds & exchange traded funds (ETFs)

• Cannot trade in the stock market without a Demat account

Demat Account: Introduction

Research ObjectiveTo understand the customer buying behavior and decision making process for thepurchase/opening of Demat account.

Dependent variable: Expectations of a consumer from a Demat account

Independent variables: Awareness, Interest, Duration, Depository Choice, Complexity in Understanding the system, Cost Structure, Type of Cost Structure, Value Added Services.

Secondary data: Reports on Share Brokers, Websites and Telephonic conversation with the market players

Instrument of data collection: Questionnaire

Sampling Method: Convenience Sampling

Sample Size: 44

Research Methodology and Design:

Actual questionnaire used: Mapping questions to outcome

Customer Decision Making Process: Demat Account

TestingMapping

Need v. Availability

Search for the Options

NeedRecognition

Buying Decision

Factors effecting each step of process:

Need Recognition

Invest/Trade

Transfer

Cost

Value added services

Convenience

Brand etc

Search for the options

Knowledge

Availability

Eligibility

Expectations

Market size

Competition etc

Mapping Expectations

Inputs

Evaluation

Reviews

Recognition

Brand value

Cross verify

etc

Testing

Hands on

Comparison

Compatibility

Effectiveness

Effectiveness

etc

Segmentation Process:• Identify segmentation criteria• Conduct market research• Apply cluster analysis (Using advanced statistical

techniques eg: SPSS)Strategies:• Single segment Concentration: Total marketing

effort is concentrated only on one market• Multi-segment coverage: Selective specialization• Product Specialization: One product multiple

segments• Segment specialization: Many products single

segment• Full market coverage

Customer Specific Situation Specific

Observable • Cultural Variables

• Geographic Variables

• Demographic Variables

• Socio-Economic Variables

• User Status• Frequency Of

Use• Brand-loyalty

Unobservable • Psychographics• Personality• Lifestyle

• Benefits• Perceptions• Attitudes• Preferences• Intentions

Classification of basis for segmentation

Segmentation strategy:

• Search engine optimization to find the potential customers

• Aggressive digital marketing

• Reputed brand name• Massive customer

base of around 8 lakhs

• Attractive brokerage charges

Search

• Low brokerage cost• Attractive product

portfolio• Highly responsive

customer service• Providing value

added services to the client

• Technological advancements in their operation

• Customers looking for Online share trading

• They target young corporate people

• People looking for ease and comfortability

• Digital platforms like BankBazaar, policy bazaar etc.

Evaluation Outlet selection

Company’s plan to influence at each stage:

• Dedicated Facebook page to cater customer needs

• Regular interactions and discussions

• 24/7 customer care system which takes customer queries

• They also provide support through E-mail

• Dedicated twitter handle which is highly responsive

• Around 23000 followers

Post-purchase Feedback Mechanism:

Recommendations and Conclusion:

Providing value added services is important for getting new customers

Offering quality services with cost effectiveness will drive the customer most

Offering both the depository options NSDL & CDSL advisable, most favor NSDL.

Offering two way cost structure i.e. One-time and Annual (66% v 34%)

Provision of effective after sales and product support

Keeping the prices competitive

Making the product and services available in all major locations

Innovating the product offerings and service bundle