In an economy highly inclining towards an index, there should be no surprise if people receive frequent ("annoying"!) calls from the brokers to open demat account.
However, do these companies really know what a 'prospective' customer wants?
Answer to this is no concrete but an attempt has been made to understand the decision-making process and buying behavior of the willing demat account holder by focused individual research.
The results along with some valuable recommendations are presented through the slides which are self-explanatory and be referred for better understanding.
Rise and fall of Kulula.com, an airline won consumers by different marketing ...
Customer buying behavior for demat account: A research perspective
1. Customer Buying Behavior
for Demat Account
Group X
Vaibhav Munjal | Vikram Sunda | Vinoth Shankar Nagarajan |
Viral Mehta | Vishal Sah
2. • 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 Objective
To understand the customer buying behavior and decision making process for the
purchase/opening of Demat account.
3. 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:
6. Factors effecting each step of process:
Hands on
Comparison
Compatibility
Effectiveness
Effectiveness
etc
7. 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:
8. • 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:
9. • 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:
10. 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
