My Project (2)Garg

8/6/2019 My Project (2)Garg

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MS RAMAIAH MANAGEMENT INSTITUTE

NEW BEL ROAD, Bangalore 560 025

A STUDY ON CUSTOMER SATISFACTION IN WEALTH

MANAGEMENT SERVICES ACROSS BANGALORE

Project Report

Submitted in partial fulfilment of the requirements

For the award of

PRIST UNIVERSITY

(A TWO YEAR FULL TIME PROGRAM IN MANAGEMENT)

Submitted by

DEEPANSHU PATHAK

Roll No 093117 PRIST 2009-11

MS RAMAIAH MANAGEMENT INSTITUTE

NEW BEL ROAD, Bangalore 560 025


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CERTIFICATE

This is to certify that the project entitled A study on Customer

Satisfaction in Wealth Management Services across Bangalore is

an authentic record of the project work carried out by Deepanshu Pathak

(Register No: 093117), in partial fulfilment of the requirements for the

award of The Prist university.

Prof Dr H. Muralidharan

FacultyGuide


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This is to certify that Mr Deepanshu pathak a student of MS Ramaiah

Management Institute College of Business Administration; Bangalore had

undertaken a project entitled A study on Customer Satisfaction in

Wealth Management Services across Bangalore from 1st July 2010 to

16th August 2010 as a trainee.

The project has been completed successfully to our satisfaction.

Dated: 16th July 2010 for Destimoney Pvt Limited

[Name:]

Cluster Manager

Project Guide


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DECLARATION

I hereby declare that the project report entitled A study on Customer

Satisfaction in Wealth Management Services across Bangalore has

been prepared by me during the period from 1 st July to 16th August 2010

under the guidance of Mr Dipanjan Naha (cluster head), Destimoney

Enterprises Pvt Ltd and Prof. Dr H Muralidharan, Faculty Member, MS

Ramaiah Management Institute, Bangalore.

I also declare that this project has not been submitted nor shall it besubmitted in future to any other University or Institution for the award of

any other Degree or diploma.

Date: Signature .................................

Deepanshu Pathak


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ACKNOWLEDGEMENT

I express my heartfelt gratitude to Mr Dipanjan Naha (cluster head), Destimoney

Enterprises Pvt Ltd for allowing me to do this project in their esteemed organisation.

I thank prof. Dr H Muralidharan, Faculty, who spared no pains in guiding me. His

advice and guidance throughout the course of my project work was valuable.

I also extend my thanks to the respondents of this study for their willingness and

cooperation. I am deeply indebted to my parents and friends for their help in the

completion of this project work.


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TABLE OF CONTENTS

SL. NO. TITLE PAGE NO.

1

Chapter 1

ORGANISATIONAL STUDY

Company Profile 1-3

Mission, Vision 4

Organisational Structure5

Values5

Goals5

Key result areas of the department in which project

are being done.6

Nature of Business

6- 8

Services

8- 10

Infrastructure

10

Competitors

10

SWOT Analysis

11Chapter 2

Executive Summary 12-15

Topic of Study 13- 14


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Background of the Research Topic

15

Existing Practices

153 Chapter 3 16- 26

Objective of the Study

17

Scope of the Study

17

Hypothesis Used

18

Operational Definitions

19- 20

Methodology 21

Sampling Type 22- 23

Tools and Techniques for Data Collection 24

Plan of analysis 25- 26

Limitation of the Study 264 Chapter 4 27- 42

5 Chapter 5 43- 48

Summary of Findings 44- 45

Conclusion 46

Recommendations 47- 48


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6 Annexure 49- 51

Questionnaire 50- 51

7 Bibliography 52

LIST OF TABLES AND GRAPHS

SL. NO. TITLE PAGE NO.

1 Nature of Business 62 Values 83 Sampling Plan 224 Respondents Preference in Investment 28

5 Expectations of Respondents from an Investment 296 Percentage of Respondents Availing Financial Services 307 Respondents choice of Financial Firms 318 Partition of Respondents Based on Years Since Invested 329 Factors Influencing Loyalty 3310 Recommendations of Financial Service to Others 3411 Product and Service Percentage 3512 Employee Rating Percentage 3613 Investment Pattern Rating Percentage 3714 Return Ratings Percentage 38

15 Cross Tabulation of Demographics with Different 39- 42


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Responses

16

Relationship Between Age of Respondents and Number

of Years of Investments 45


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CHAPTER ONE

COMPANY PROFILE

1.1 COMPANY PROFILE

Dawnay Day was established in the City of London in 1928 as an

issuing house. Dawnay Day AV was established in India in 2006,in response to the dynamics presented by the countrys rapidly

growing economy.

In 2008, Dawnay Day AV went into receivership and New Silk

Route (NSR) acquired 100% stake in the company. NSR

appointed a new management team to run the company with a

vision to take it to a large scale in Indian Financial Services arena.With the new funding partner and the management with a new

vision, it was important as well as a regulatory requirement also,

to change the name and thus Dawnay Day AV acquired the new

name ofDestimoney.

1.2 NATURE OF BUSINESS


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Destimoney Securities Private Limited is a full-service financial

services provider and advisory firm. By establishing deep

relationships with clients and taking time to understand their

individual needs, they have quickly created an impact across

several businesses.

In addition to well experienced teams of Insurance Advisors and

Distributors, they cater to virtually every financial need, from

loans, mutual funds and equity broking to wealth advisory, with a

full-time employee base of over 3000 in 137 branches in 72 cities.

With over 497 Distribution Partners across India, they look forward

to serve people better.

They intend to offer their clients access to a range of traditional

and alternative investment opportunities - relying on a mix of local

and global capabilities - including direct equity through online

trading portal, private equity, real estate, insurance, and corporate

finance.

Destimoney Securities is committed to help customers to pursue

financial independence their way. They deliver state-of-the-art

tools, excellent customer care, affordable pricing and innovative

technology so customers can follow their own path. Their Product

Bouquet is all about giving a need based solution.


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1.3 FUNDING PARTNER

New Silk Route it is a leading Asia-focused growth capital firm

which was founded in 2006 with over $1.4 billion under

management. It is focused on the Indian sub-continent and other

rapidly growing economies in Asia and the Middle East. It has

nine investments to date in Consumer Services, Telecom,


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Manufacturing, Financial Services and Infrastructure. NSR

acquired a 100% stake in Dawnay Day AV in the year 2008.

1.4VISION

To build a world class customer centric financial services

entity that fulfils the financial needs of Middle India with

global processes.

To focus on profitable growth

To distribute many financial products, and manufactureonly a select few.

To unlock potential across four dimensions: Individual,

Team, Customer and

Market place.

1.5 MISSION

Their mission is to forge strong, sustained relationships

with their clients by creating value for them.

They do this by gaining a thorough insight into a clients

financial needs and objectives.

Attuned to the fact that no two clients are the same, their

approach to investing underscores the need for

personalized solutions in todays financial markets.

In providing services to their clients, they take the fiduciary

trust they place in them very seriously

By strictly adhering to their core values, they ensure that

their processes, risk management systems, and staffing are

concentrated solely on preserving and increasing their

clients hard earned capital within a transparent and

controlled investment process


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1.6 Organisational

Structure

1.7 VALUES

VIVEK VIG

MD&CEO

BRIJESH PARNAMI

BUSINESS DIRECTOR

GIRI KRISHNASWAMY

DIRECTOR-FINANCE

P.RANGARAJA

N

KARTIK BHANSALIHEAD-INSTITUTIONAL

BHARAT DALAL

FUND MANAGER

VIRAF GHYARA

DIRECTOR HR

SHEKHAR

DESHPANDE


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1.8 GOALS

To transform Destimoney into a world class customer

driven Financial Service Provider.

To create customer delight.

To face a global competition and government policies.

1.3 Key result areas of the department in which project is

being done

A) Client Acquisition-

Company is having a client database of

5000.

All the clients are having net worth of above

5 lacs


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B) Product diversification-

A) Traditional Investment Products

Equity

Direct Equity

IPOs

Equity Mutual Funds

My OMFA (Online Mutual Fund Account)

Debt

Debt Mutual Funds

Term Deposits

NCDs

Bonds

B) Liability Management Products

Loans

IPO Financing

Loan Against Shares

C) Risk Management Products

Life Insurance

General Insurance


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Wills, Trusts and Estate Planning Services

D) Structured products

Portfolio Management Services (PMS)

Private Equity Funds

E) Specialized Products

Family Office

Windmill

F) Wealth Management

Wealth management is an advanced investment

advisory discipline and is an ongoing process that

incorporates financial planning and specialist financial

services.

The objective of wealth management is to manage the

existing wealth of the client, sustaining the wealth and

striving for long-term wealth creation in order to help theclients to achieve their financial goals.

Client centric approach

All the activities are build around their clients, giving them

the highest priority.

Goal Oriented approach


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The complete financial planning and all the investments

suggested to the client would be done by keeping the goals

of the client in mind.

1.9 INFRASTUCTURE

Destimoney has a strong force of 3000 plus

employees and customer base of more than 35000.

It has footprint in 72 locations and 133 branches in

20 states which cover 67% of the country.

We have a highly qualified team of 70 relationship

managers

Present across 6 locations in India Mumbai, New

Delhi, Bangalore, Kolkata, Hyderabad, and Jaipur.

Supported by Service Managers, Wealth Dealers,

Product Team and Research Team.

2.0 COMPETITORS

Religare

Kotak securities

HDFC

ICICI

Geojit

Birla


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2.1 SWOT ANALYSIS

STRENGTH:

Present in 20 states with 133 branches and has a customer

base of 35000.

Dedicated Relationship manager trained in an extensive

range of products.

Research-based investment support and Pan-India

branches to service the customers.

Greater transparency in providing its products and services.

WEAKNESS:

Lack of proper and good publicity.

Not having a good brand image.

Late entrant in this Industry.

Lack of credibility among people because Destimoney is a

private player and does not have much popularity.

OPPORTUNITIES:

Fast growing per capita income of the people.

Customers are looking for greater value rather than product

alone.

Untapped markets. (Wealthy but uneducated people).

It is a volume business i.e., even if the company has few

good corporate, the turnover cease to increase by manifold.

Products (MyOMFA).

THREATS:

Increased competition among domestic players.

Changing consumer behaviour will reduce brand loyalty.

Fluctuations in the stock markets.


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Government regulations (SEBI and RBI).

CHAPTER TWO

EXECUTIVE SUMMARY

Customer Satisfaction is the companys ability to fulfil the

business, emotional and psychological needs of its customers. Its

a measurement or indicator of the degree to which customers or

users of an organizations products or services are pleased with

those products or services, typically measured by an attitude

questionnaire. The days when customers must deal with

whatever they are handed over by the companies are long gone.

To maintain good customer loyalty is a challenging job in this

modern business world. Customers would not think a second

thought to switch to a company where they get the products and

service they require.

This is a research work to study the satisfaction level of customers

of wealth management services in Bangalore. The research is an

exploratory research to generate qualitative and quantitative

reports so that it would help Destimoney to strategize the possible


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business alternatives. The primary data for this research was

collected using questionnaire through personal interviews, e-mails

with customers. The target respondents were mainly the software

professionals.

In last few years, India has emerged as one of the most rapidly

growing economies in the world. India has been categorised with

nations like Brazil, Russia and China (BRIC nations) who are

going to be the prime divers of the world economy in the next few

decades. India along with other Asian power house China makes

the fastest growing nations in the entire world.

Even if we take the case of ongoing recession, India has managed

to perform far better than other nations, right from the banking

system to financial regularities. The country has thrived on

discipline and performance. The booming Indian economy

resulted in widespread growth and arrival of new industries. The

most sparkling phenomenon is in the form of financial market of

India.

Financial services in India has taken a giant leap from the days of

standing in banks queue for several hours for opening a savings

account or trying to get some fixed deposits done. The financial

services have increased manifold. Now people have a choice to

choose the one that most suitably fits the bill.

There are several services like broking firms, investment services,

financial consulting, national banks, numerous private banks,

mutual funds, car and home loans, equity markets and other

banking services.

Customer satisfaction, a business term, is a measure of how

products and services supplied by a company meet or surpass

customer expectation. It is seen as a key performance indicator

within business. In a competitive marketplace where businesses

compete for customers, customer satisfaction is seen as a key


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differentiator and increasingly has become a key element of

business strategy. Organizations need to retain existing

customers while targeting non-customers. Measuring customer

satisfaction provides an indication of how successful the

organization is at providing products and services to the

marketplace.

INTRODUCTION TO THE

PROJECT

2.1.1 TOPIC OF STUDY


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Customer Satisfaction is a persons feeling of pleasure or

disappointments resulting from comparing a products perceived

performance in relation to his/her expectations. If the performance

falls short of expectations, the consumer is dissatisfied, if the

performance matches the expectations, the customer is satisfied

and if the performance exceeds expectations the customer is

highly satisfied or delighted.

A company would be wise to measure customer satisfaction

regularly because one key to customer retention is customer

satisfaction. A highly satisfied customer generally stays loyal

longer, buys more as the company introduces new products andupgrades existing products, talks favourably about the company

and its product, pays less attention to competing brands and is

less sensitive to price, offers or service ideas to the company, and

cost less to serve than new customers because transaction are

routine.

The link between customer satisfaction and customer loyalty,

however, is not proportional. Suppose customer satisfaction is

rated on a scale from one to seven. At a very low level of

customer satisfaction (level one and two), customers are likely to

abandon the company and even bad mouth it. At level three to

five, customers are fairly satisfied but still find it easy to switch

when a better offer comes along. At level six and seven, the

customers are very likely to repurchase and even spread good

word of mouth about the company. High satisfaction or delight

creates an emotional bond with the brand or company, not just a

rational preference.

For e.g. Xeroxs customer management found out that its

completely satisfied customers were six times more likely to

repurchase Xerox product over the following 18 months than its

very satisfied customers.

2.1.2 BENEFITS OF CUSTOMER SATISFACTION


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Customers stay with the company longer.

Customers deepen their relationship with company.

Customers demonstrate less price sensitivity.

Customers recommend companys products or service to

others.

2.1.3 IMPORTANT CUSTOMER SATISFACTION

STATISTICS

It costs five to six times more to attract a new customer

than to keep an existing one.

Companies can boost profits anywhere from 25 to 125% by

retaining merely 5% more existing customers.

Only one out of the dissatisfied customers will express

dissatisfaction.

Happy customers tell 4 to 5 others of their positiveexperience. Dissatisfied customers tell 9 to 12 how bad it

was.

Two-thirds of customers do not feel valued by those serving

them.

2.1.4 HOW COMPANY CAN USE THIS INFORMATION

FROM CUSTOMER SATISFACTION STUDY

How delighted and loyal are the customers with the quality

of services and products that you market?

What aspects drive this loyalty?

What the company can leverage in the marketplace and

what areas must the company improve to become more

competitive?


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How likely are customers to buy from the company?

How likely is it that the customers would recommend the

products and services to others?

2.2.5BACKGROUND OF THE RESEARCH TOPIC

Today the field of investment is even more dynamic than it was a

decade ago. The individual has so many assets to choose from

and the amount of information available to the investors is

staggering and continually growing. Furthermore, inflation has

served to increased awareness of the importance of financial

planning and wise investing.

In order to align the business practices to sustain and increase the

brand loyalty, understanding the satisfaction level of the customer

is very important. This research work will help Destimoney to

know the satisfaction level of its customers and other financial

services as well as factors affecting loyalty and will help to align itsbusiness practices to sustain in this fast growing industry.

2.2.6EXISTING PRACTICES

The company is using a customer feedback form.

The feedback form is given to the customer to rate the serviceprovided by Destimoney.

The feedback form includes aspects like Time horizon, Risk

Appetite, Investment Objectives and Future Planning.


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CHAPTER THREE

DESIGN OF THE STUDY


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3.1 OBJECTIVES OF THE STUDY

To study the customer satisfaction level that will provide

Destimoney:

With insights to help the organization to align practices with

customer needs.

To maintain high levels of customer satisfaction and to

build and sustain customer loyalty.

To understand the value of customer satisfaction in the

service industry.

3.2 SCOPE OF THE STUDY

The growth of the share market in India has opened more

avenues for Investment options to average Indian investor. Indias

income levels are rising at a much faster rate, as a result of the

demand investment options are also on the rise. However,

investors need to have a thorough knowledge of the different

markets and their changing trends.


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The objective of the report is to find out to what extend financial

services identifies, maintains and builds up a network of individual

customers and continuously strengthen the network for mutual

benefits for both sides through interactive, individualised value

added services over a long period of time to maintain the

satisfaction level of the customers very high.

The study was restricted to the whole of India and mainly the IT

and ITES employees. The study was also conducted with regard

to the customers of different financial services, giving a

competitive advantage.

3.3 HYPOTHESIS USED

There is no significant difference in the opinion of the male

and female respondents about their satisfaction over the

services provided by Destimoney and other financial

services.

There is no significant difference in the opinion of the male

and female respondents on the factors determining the

loyalty.


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The age of the respondents is directly related to the

number of years since he/she is investing.

The difference in the opinion of the male and female

respondents as to the quality of services is not very

significant.

The male respondents tend to take more risk than female

respondents.

3.4 OPERATIONAL DEFINITION

Customer Satisfaction is a persons feeling of pleasure or

disappointments resulting from comparing a products perceived

performance in relation to his/her expectations. If the performance

falls short of expectations, the consumer is dissatisfied, if the

performance matches the expectations, the customer is satisfied

and if the performance exceeds expectations the customer is

highly satisfied or delighted.

Loyalty is a deeply held commitment to re-buy or re-patronize a

preferred product or service in the future despite situational

influences and marketing efforts having the potential to cause

switching behaviour.

Total Customer Value is the perceived monetary value of the

bundle of economic, functional and psychological benefits

customers expect from a given market offering.

Value Proposition consists of the whole cluster of benefits the

company promises to deliver.


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Customer Relationship Management (CRM) is the process of

managing customer detailed information about individual

customers and carefully managing all customer touch points to

maximize customer loyalty.

Wealth management is an investment advisory discipline that

incorporates financial planning, investment portfolio management

and a number of aggregated financial services. High net worth

individuals, small business owners, professionals and families

who desire the assistance of a credentialed financial advisory

specialist call upon wealth managers to coordinate retail banking,

estate planning, legal resources, tax professionals and investmentmanagement. Wealth management can be provided by large

corporate entities, independent financial advisers or multi-licensed

portfolio managers whose services are designed to focus on high-

net worth customers.

Demographic segmentation consists of dividing the market into

groups based on variables such as age, gender family size,

income, occupation, education, religion, race and nationality. As

one might expect, demographic segmentation variables are

amongst the most popular bases for segmenting customer groups.

This is because customer wants are closely linked to variables

such as income and age. Also, for practical reasons, there is often

much more data available to help with the demographic

segmentation process.

The Semantic Differential (SD) measures people's reactions to

stimulus words and concepts in terms of ratings on bipolar scales

defined with contrasting adjectives at each end. An example of an

SD scale is:

BAD____ ____ ____ ____ ____ ____ ____GOOD


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-3 -2 -1 0 1 2 3

Usually, the position marked 0 is labelled "neutral," the 1 positionsare labelled "slightly," the 2 positions "quite," and the 3 positions

"extremely. A scale like this one measures the direction of a

reaction (e.g., good versus bad) and also intensity (slight through

extreme). Typically, a person is presented with some concept of

interest, e.g., Red China, and asked to rate it on a number of such

scales. Ratings are combined in various ways to describe and

analyze the person's feelings.

Numerical Scales havenumbers, rather than semantic space or

verbal description, as response options, to identify categories

(response positions). If the scale items have five response

positions, the scale is called a 5-point numerical scale; with seven

response positions, it is called a 7-point numerical scale and so

on.

BAD 1 2 3 4 5 6 7 GOOD

3.5 METHODOLOGY

Research design is a conceptual structure within which the

research would take place. The presentation of such a design


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facilitates the research to be as efficient as possible yielding

maximum information. Exploratory form of research that would

help to seek general opinion of the customer about the financial

firm which they opt and its services was used in this research. As

well the factors affecting the customer satisfaction of other

financial services which would be helpful in incorporating in

Destimoney. This research method which is flexible, structured

and qualitative will help to obtain a thorough understanding of the

customers requirement and feedback.

Descriptive research, also known as statistical research, describes

data about the population being studied. Descriptive research

answers the following questions: who, what, where, when and

how. Although the data description is factual, accurate and

systematic, the research cannot describe what caused a situation.

Thus, descriptive research cannot be used to create a casual

relationship, where one variable affects another. The description is

used for frequencies, averages and other statistical calculations.

Often the best approach, prior to writing descriptive research, is to

conduct a survey investigation. Thus, the development of

hypothesis provides guidance to the researcher by introducing

more details to the research question. The exploratory research is

conducted primarily to study the feasibility of the research work

and to analyze how the respondents responds and what will be

the outcomes. Then descriptive research is conducted for

collection data analysis. The clear cut hypothesis was built and

tested for the completion of work.
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3.6 SAMPLING TYPE

SAMPLING PLAN

The various steps involved in a sampling process are given in thefigure.


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Identifying the target: The target population identified consisted

mainly of employed people and some businessmen.


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Determining the sampling frame: The sample consisted of IT

professionals, a few professionals from other services and a few

businessmen.

Selecting the sampling procedure: The following methods were

determined to do the sampling-

Questionnaires given directly to the targeted participants in

the research

Direct mails sent to IT professionals

Determining the relevant sample size: A sample consisting of

100 respondents were taken.

Executing Sampling:

a) Took appointment from HRs of a few IT companies, met

them and gave the questionnaires. Collected the filled in

questionnaires later.

b) Went to certain customers, gave the questionnaires and got

them filled then and there.

c) Mailed the questionnaires to a few customers. They filled

those questionnaires and sent them back.

As the sample size was provided by the company and they

wanted to work on that sample size to know the satisfaction level

and thus judgemental sampling was used for the study.

SAMPLING FRAME : India

SAMPLING SIZE : 100


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SAMPLING UNIT : The total sample size included

customers of different

Financial services

3.7 TOOLS AND TECHNIQUES FOR DATA

COLLECTION

3.7.1 PRIMARY SOURCE:

Primary data are those, which are collected afresh and for the first

time and thus happen to be original in character. It is not only

relevant for research project but also reliable, accurate and

dependable. A questionnaire was used as a research tool to

collect the primary data. The questionnaire was designed using

both quantitative and qualitative questions. Data collection was

done through primary method of collecting data, i.e., personal

interviews, telephonic Interview and through mails.

3.7.2 SECONDARY SOURCE:


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Secondary data are those which have already been collected by

someone else and which have been already passed through

statistical process. For example like company website,

magazines, company articles, previous journals, etc. The

company website gives details of the company profile and its

products and services.

The data thus collected were tabulated. Charts and diagrams

were also used to simplify the data.

3.8 PLAN OF ANALYSIS

The questionnaire consist of a total of eleven questions,

which includes three open ended questions, four multiple

choice questions and four questions based on scaling.

Each question will be analysed based on the response.

Inference will be made with the help of response and also

with the help of the graphs in the analysing part.

The statistical data has been organised, condensed and

integrated through classification and tabulation. It enabled theanalysis and interpretation. Analysis is the process of planning the

data in an ordered form in such a way to combine them with the

subjection of the study. Interpretation is the outcome of the

analysis in the form of suggestions.

3.8.1 TABULATION


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Tabulation means a systematic presentation of numerical data in

columns and rows in accordance with some salient features or

characteristics.

The important statistical tools used in this study are:

1. Percentage analysis

2. Bar diagram

3. Pie diagram

3.8.2 PERCENTAGE ANALYSIS

Percentage analysis is used to find out the percentage of

respondents from the total number of respondents, responded to

each question.

3.8.3 DIAGRAMS

Diagrams are the pictorial representation of collected data. The

two types of diagram used are bar diagram and pie diagram.

3.8.4 BAR DIAGRAM

Bar diagrams use vertical bars to display different values of one or

more data items. Bar diagrams are mostly used to compare

values across different categories. They are ideal for showing the

variation in the value of an item.

3.8.5 PIE DIAGRAM

Pie diagrams are very popularly used in practice to show

percentage break downs. The pie chart is so called because the

entire graph look like a pie and the components resemble slicescut from pie.


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3.9 LIMITATIONS OF THE STUDY

Since judgemental sampling was used so only

approachable customers were taken for the study.

The customers opinion is only subjective, i.e., his/her

opinion may be influenced by the happenings in the recent

past; hence the feedback may not be error free.

The study is restricted to customer satisfaction only.

Non cooperation from the respondents.

Time constraint.

Generally the company websites give an exaggerated view

of the company which could be misleading.


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CHAPTER FOUR

ANALYSIS OF DATA

Q1: TYPES OF INVESTMENTS MADE BY THE

RESPONDENTS:

Graph 1: As it was a multiple choice question so total number of

counts in each option with a percentage pie chart.

CHOICE NO OF RESPONDENTS

FD/SB 64Insurance 44

Mutual funds 38Equity 34Others 7


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Fixed deposits and Savings bank is the major source of

Customer preference in investments where as others

(Mutual funds, Equity, Insurance) are equally distributed in

the Pie chart.

Q3: EXPECTATIONS FROM AN INVESTMENT IN A FINANCIAL

SERVICE:

Graph 3: As it was a multiple choice question so total number of

counts in each option with a percentage pie chart.


High return 70Tax saving 48

Low risk 40


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Target respondents are expecting high returns as

compared to low risk and tax saving.

None of respondents choose the option others.

Q4: NO OF RESPONDENTS WHO OPTED FOR WEALTH

MANAGEMENT SERVICE:

Graph 4(a): Showing the percentage of people opting service.


YES 86NO 14


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Most of the respondents opted wealth management

services among the target sample.

Graph 4(b): Choice of the Financial Company.

FINANCIAL FIRM NO OF RESPONDENTS

ICICI 22HDFC 20

OTHERS 19SEBI 16

RELIGARE 7BIRLA 7

GEOJIT 6DESTIMONEY 3


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ICICI and HDFC are the market leaders in the providing

services.

SEBI is third with 16% of the total respondents.

RELIGARE, GEOJIT and BIRLA have almost equal market

share close to 6%.

DESTIMONEY has a market share of 3% as it is a new

entrant.

The percentage of others is as high as 19%.

Q5: NUMBER OF YEARS SINCE THE RESPONDENTS ARE

INVESTING:

Graph 5: Showing the percentage of sample according to the

years of investing.


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NO OF YEAR NO OF RESPONDENTS

1 YEAR 202YEARS 313YEARS 25

4 YEARS OR MORE 34

The total sample taken is evenly distributed in all the

options i.e., 1 year, 2years, 3years and 4 years and above

of Investment.

It helps in connecting the satisfaction level to the number of

years of investment.

Q6: FACTORS ON WHICH LOYALTY DEPENDS:

Graph 6: Showing the percentage of different factors with their

total count.


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FACTORS NO OF RESPONDENTS

TRANSPARENCY 23TRUSTWORTHY 25CONSISTENCY 21EASE OF USE 17

BRAND NAME 14

Transparency and trustworthiness are the most important

factors influencing loyalty of customers in wealth

management services.

Transparency leads to trustworthiness.

Brand name and ease of use are less influencing as

compared to other factors.

Q7: RECOMMENDATION OF CURRENT FINANCIAL FIRM TO

OTHERS:


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Graph 7: Shows the percentage of recommending the services.


YES 71NO 29

It shows that 71% of the respondents are satisfied with their

financial service and have recommended the same to

others.


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Q8: RATING BY RESPONDENTS ON A SEMANTIC

DIFFERENTIAL SCALE:

Graph 8(a): Showing the percentage of rating in Products and

services.

RATING NO OF RESPONDENTS

1 02 73 94 165 266 187 10

The mean rating of products and services is 4.8 which

show that respondents are moderately satisfied as a whole.

About 12% of the respondents are extremely satisfied and

16% are dissatisfied.

19% respondents have neutral opinion about their financial

service provider.


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Graph 8(b): Showing the percentage of rating with respect to the

employees of the financial firm.

RATING NO OF RESPONDENTS

1 12 23 64 85 346 197 17

The mean employee rating by the respondents is 5.3. So

they are a bit more than moderately satisfied.

9% of respondents are neutral in their opinion.

9% are not satisfied with the employee (Relationship

manager).


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Graph 8(c): Showing the percentage of rating of the Investment

pattern.

RATINGS NO OF RESPONDENTS

1 02 03 74 115 196 237 26

The mean rating of investment pattern is 5.58, respondents

are satisfied.

30% are extremely satisfied.

13% are neutral and 8% are not satisfied.


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Graph 8(d): Showing the percentage of rating of returns.

RATINGS NO OF RESPONDENTS

1 02 03 14 115 256 317 18

86% of the respondents are satisfied with the returns on

their investments.

13% are neutral and only 1% are unsatisfied.

As most of the respondents (mean is 5.62) are the current

customers of respective financial services, it shows that the

return on investments is an important factor of overall

satisfaction.


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CROSS TABULATION OF DEMOGRAPHICS WITH

DIFFERENT RESPONSES

9: RELATIONSHIP BETWEEN RESPONDENTS AGE AND

YEARS SINCE HE/SHE IS INVESTING

Most of the respondents in the age group (24-28) are

having wealth management services since a year.

A higher proportion of respondents in the age group (29-34)

are having services since two years.


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A large no of respondents in the age group (above 35 yrs)

are availing wealth management services since four years

or more.

Therefore age of the respondent is directly related to the

number of years since he/she is availing service.


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10: MALE AND FEMALE RESPONSE TO FACTORS

AFFECTING LOYALTY


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There is no significant change in the percentage of

transparency and trustworthiness between the male and

female respondents.

Consistency factor percentage is considerably higher in

male respondents (4% difference).

Ease of use percentage is higher in female respondents (5

%difference).

11: SATISFACTION LEVEL OF MALE AND FEMALE

RESPONDENTS IN DIFFERENT CATEGORIES (MEAN)

CHOICES GENERAL MALE FEMALE

PRODUCT AND

SERVICES

4.8 4.7 4.9

EMPLOYEE 5.3 5.3 5.2INVESTMENT

PATTERN

5.58 5.6 5.5

RETURN 5.63 5.6 5.7

OVERALL

SATISFACTION

5.32 5.3 5.325

There is no significant difference in the satisfaction level of

male and female respondents as the ratings in different

categories (products and services, employee, investment

pattern, return) are same.

The overall satisfaction of the respondents is also same

with the mean of male respondents at 5.3 and that of

females at 5.325.


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CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS

AND RECOMMENDATIONS


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5.1 SUMMARY OF FINDINGS

Most of the customers are interested in fixed deposit,

savings bank and insurance as compared to mutual funds,

equity and others.

Male customers are more interested in mutual funds as

compared to female customers.

Male customers are more into tax saving investments as

compared to female customers.

Female customers are willing to take more risk as

compared to male customers.

86% respondents are availing wealth management services

and 14% respondents are not availing any wealth financial

service.

Most of the respondents (approximately 22%) are availing

ICICI services and 20% are having HDFC as financial

advisor.

A large no of respondents nearly 19% are availing services

of others (which include domestic players like Muthoot,

Gokulam finance and so on.


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The sample size is evenly distributed with people of all age

groups which indicate people in all age groups avail

financial services.

Transparency and trustworthiness are the two most

important factors which affect loyalty.

Brand name and ease of use do very less in making

customer delight.

71% of the total respondents have recommended their

companies to others which indicate that the respondents

are generally satisfied.

The mean of products and service rating is 4.8 which is

less as compared to the overall satisfaction level mean of

5.32. Therefore financial firms need to improve their

products.

The mean of investment pattern (5.58) and returns (5.63) is

above the overall satisfaction level mean (5.32). It showsthat these two play a major role in customer satisfaction as

most of the respondents are satisfied as a whole.

The relationship between the age of the respondent and

the number of years of investment is clearly seen in the

graphs.

AGE NO OF YEARS WITH A FINANCIALFIRM

24-28 1 YEAR

29-34 2 YEARS


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35 AND ABOVE 4 YEARS AND ABOVE

There is no significant change in the factors affecting

loyalty between the male and female respondents except

that female respondents are attracted to ease of use of the

financial service.

There is no significant change in the overall satisfaction

level of the male and female respondents.

5.2 CONLUSION

Competition prevails in every field. In order to become the market

leader and to sustain in the fast growing market, every company

should ensure high levels of customer satisfaction. Consumer


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behaviour need not be stable over a period of time. Customers

may change their financial advisory, if they are provided with

better products and services compared to other financial firms.

It can be concluded that customer satisfaction is one of the keys

for customer retention. A highly satisfied customer generally stays

loyal for a longer time, invests more as the company introduces

new products and upgrades existing products, talks favourably

about the financial firm and its product, pays less attention to other

financial firms and is less sensitive to price, offers or service ideas

to the company. It costs lesser for the company to serve loyal

customers than new ones. Customer satisfaction does not endwith providing the right product to meet their expectations but it is

an ongoing process that extends up to providing a very good

service but also consistency in its objective.

In this competitive world, satisfaction should be replaced by

customer delight by providing products and services exceeding

the customers expectations to sustain the market.

5.3 RECOMMENDATIONS


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Partnership marketing can be introduced to involve

customers in designing the financial products especially

financial consultants as they have the potential to bring

customers.

Whenever new products are introduced, existing customers

can be informed so that customers will feel they are part of

the company rather than being a customer.

A marketing campaign can be launched once in a year to

involve customers in it and make them feel part of the

company. For e.g., the marathon organised by HDFC.

CRM software should be used more effectively by the

financial firms. The major advantages are:

Can track all the customers

Through the individual account information the

company can know about each value customer,

financial firms can customize market offerings, etc.

In this fast growing world, internet plays a major role. All the

customers can be reached with just a click of the button

and at minimum cost. Financial firms can:

Advertise about its products on frequently visited

websites like Google, Yahoo etc.

Take feedback from the customers through internet

so that a lot of time and money can be saved.

The websites of the financial firms should be

improved with more details about the products and

services.


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The business activities of a lost customer can be studied

which will give an idea about what went wrong and such

mistakes can be avoided in future.

Customers should be promised with what the company is

capable of doing. The promises will develop certain

expectation in the customers mind. The customers will be

satisfied if the promise is fulfilled.

Each complaint and problem of the customers should be

seen as the opportunity to impress the customer and

maximize the satisfaction level rather than viewing it as a

failure.

Create demanding customers i.e., if the customers had to

shift to the competitor, they should demand the same level

of the service that the company provides.

Customers can be rewarded based on few parameters to

increase the loyalty of customers.

The company should focus on customer delight rather than

just satisfying them, by giving products and services

exceeding their expectations.


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ANNEXURE


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ANNEXURE-1

QUESTIONNAIRE

CUSTOMER SATISFACTION ANDLOYALTY

I am a student of MS Ramaiah Management Institute, Bangalore (Prist

University). I am doing a research on the above mentioned topic. I requestyou to kindly fill in the questionnaire given below to help me gather

relevant information in order to complete my research successfully. I

assure you that the information provided by you will be held confidently

and is purely for the academic purpose.

Thank you.

NAME: __________________________ GENDER: ___

AGE: ___ CONTACT NO _____________ OCCUPATION: _________________

Note: If applicable tick more than one choice.

1) What are the types of investments you are interestedin?

A) FD/SB b) Mutual funds c) Equity d)

Insurance e) Others


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2) How did you invest in the last quarter?

______________________________________________________________________

_______________________________________________________________________

3) What do you expect from an investment in a financialcompany?

a) High return b) Low risk c) Tax saving d)

Others

4) Which company have you opted as your financialadvisor and why?

____________________________________________________________________________

____________________________________________________________________________

5) Since how long have they been involved in yourinvestment decisions?

A) 1 year b) 2 year c) 3 year d) 4 year or more

6) Your loyalty towards the company depends upon?

a) Transparency b) Consistency c) Ease of Use d) Trustworthy

e) Brand Name

7) Would you recommend this particular company infuture? Have you recommended it in the past also?

____________________________________________________________________________

____________________________________________________________________________


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Rate the following (for your present financial advisor) onthe scale ranging from 1 to 7 where 1 means lowest and7 is highest score:-

PRODUCT & SERVICES:

1 2 3 4 56 7

EMPLOYEES: (Relationship manager with whom thecustomer comes in contact)1 2 3 4 5

6 7

INVESTMENT PATTERN: (The way the company invests foryou)1 2 3 4 5

6 7

RETURN:1 2 3 4 5

6 7

.

BIBLIOGRAPHY

Philip Kotler, Marketing Management, Dorling Kindersley

Pearson education, India, 13th edition 2009.

Business World, The CSMM-BW customer loyalty survey

(06-07), 2 Aug 2007.


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William G. Zikmund, Business Research Methods,

Thomson South Western, 7th Edition, 2005

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