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

 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

Faculty Guide
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
 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 1st 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 be
submitted in future to any other University or Institution for the award of
any other Degree or diploma.

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

Deepanshu Pathak
 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.
 TABLE OF CONTENTS

SL. NO. TITLE PAGE NO.

Chapter 1

1 ORGANISATIONAL STUDY
• Company Profile
1-3
• Mission, Vision 4

• Organisational Structure
5
• Values
5
• Goals
5

• 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

11
Chapter 2

• Executive Summary 12-15

• Topic of Study 13- 14
 • Background of the Research Topic

15
• Existing Practices

15
3 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 26

4 Chapter 4 27- 42

5 Chapter 5 43- 48

• Summary of Findings 44- 45

• Conclusion 46

• Recommendations 47- 48
6 Annexure 49- 51

• Questionnaire 50- 51

7 Bibliography 52

LIST OF TABLES AND GRAPHS

SL. NO. TITLE PAGE NO.

1 Nature of Business 6
2 Values 8
3 Sampling Plan 22
4 Respondents Preference in Investment 28
5 Expectations of Respondents from an Investment 29
6 Percentage of Respondents Availing Financial Services 30
7 Respondents choice of Financial Firms 31
8 Partition of Respondents Based on Years Since Invested 32
9 Factors Influencing Loyalty 33
10 Recommendations of Financial Service to Others 34
11 Product and Service Percentage 35
12 Employee Rating Percentage 36
13 Investment Pattern Rating Percentage 37
14 Return Ratings Percentage 38
15 Cross Tabulation of Demographics with Different 39- 42
 Responses
Relationship Between Age of Respondents and Number

16 of Years of Investments 45
 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 country’s 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 of ‘Destimoney’.

1.2 NATURE OF BUSINESS

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.
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,
Manufacturing, Financial Services and Infrastructure. NSR
acquired a 100% stake in Dawnay Day AV in the year 2008.

1.4 VISION

 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 manufacture
only 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 client’s
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 today’s 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
 BRIJESH PARNAMI
BUSINESS DIRECTOR

GIRI KRISHNASWAMY
DIRECTOR-FINANCE
1.6 Organisational
Structure
P.RANGARAJA
N

VIVEK VIG
KARTIK BHANSALI
MD&CEO
HEAD-INSTITUTIONAL

BHARAT DALAL
FUND MANAGER

VIRAF GHYARA
DIRECTOR HR

SHEKHAR
DESHPANDE

1.7 VALUES
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
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
 • 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 the
clients to achieve their financial goals.

• Client centric approach

All the activities are build around their clients, giving them
the highest priority.

• Goal Oriented approach

 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
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.
 • Government regulations (SEBI and RBI).

CHAPTER TWO

EXECUTIVE SUMMARY

Customer Satisfaction is the company’s ability to fulfil the

business, emotional and psychological needs of its customers. It’s
a measurement or indicator of the degree to which customers or
users of an organization’s 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
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
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

Customer Satisfaction is a person’s feeling of pleasure or
disappointments resulting from comparing a product’s 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 and
upgrades 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. Xerox’s 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

  Customers stay with the company longer.

 Customers deepen their relationship with company.

 Customers demonstrate less price sensitivity.

 Customers recommend company’s 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 positive

experience. 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?
  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 its
business 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 service

provided by Destimoney.

 The feedback form includes aspects like Time horizon, Risk

Appetite, Investment Objectives and Future Planning.
 CHAPTER THREE

DESIGN OF THE STUDY

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. India’s
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.
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.
  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 person’s feeling of pleasure or

disappointments resulting from comparing a product’s 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.
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 investment
management. 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

 -3 -2 -1 0 1 2 3

Usually, the position marked 0 is labelled "neutral," the 1 positions

are 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 have numbers, 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
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
customer’s 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.
3.6 SAMPLING TYPE

SAMPLING PLAN

The various steps involved in a sampling process are given in the

figure.
Identifying the target: The target population identified consisted
mainly of employed people and some businessmen.
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 HR’s 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

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:

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 the
analysis 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
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 slices
cut from pie.
3.9 LIMITATIONS OF THE STUDY

 Since judgemental sampling was used so only

approachable customers were taken for the study.

 The customer’s 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.
 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 64
Insurance 44
Mutual funds 38
Equity 34
Others 7
  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.

CHOICE NO OF RESPONDENTS
High return 70
Tax saving 48
Low risk 40
  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.

CHOICE NO OF RESPONDENTS
YES 86
NO 14
  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 22
HDFC 20
OTHERS 19
SEBI 16
RELIGARE 7
BIRLA 7
GEOJIT 6
DESTIMONEY 3
  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.
 NO OF YEAR NO OF RESPONDENTS
1 YEAR 20
2YEARS 31
3YEARS 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.
 FACTORS NO OF RESPONDENTS
TRANSPARENCY 23
TRUSTWORTHY 25
CONSISTENCY 21
EASE 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:
Graph 7: Shows the percentage of recommending the services.

CHOICE NO OF RESPONDENTS
YES 71
NO 29

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

financial service and have recommended the same to
others.
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 0
2 7
3 9
4 16
5 26
6 18
7 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.
Graph 8(b): Showing the percentage of rating with respect to the
employees of the financial firm.

RATING NO OF RESPONDENTS
1 1
2 2
3 6
4 8
5 34
6 19
7 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).
Graph 8(c): Showing the percentage of rating of the Investment
pattern.

RATINGS NO OF RESPONDENTS
1 0
2 0
3 7
4 11
5 19
6 23
7 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.

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

RATINGS NO OF RESPONDENTS
1 0
2 0
3 1
4 11
5 25
6 31
7 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.
 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.
 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.
10: MALE AND FEMALE RESPONSE TO FACTORS
AFFECTING LOYALTY
  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 4.8 4.7 4.9
SERVICES
EMPLOYEE 5.3 5.3 5.2
INVESTMENT 5.58 5.6 5.5
PATTERN
RETURN 5.63 5.6 5.7
OVERALL 5.32 5.3 5.325
SATISFACTION

 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.
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS

AND RECOMMENDATIONS
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.
 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 shows
that 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 FINANCIAL

FIRM

24-28 1 YEAR
29-34 2 YEARS
 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
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 end
with 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 customer’s expectations to sustain the market.

5.3 RECOMMENDATIONS
 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.
 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 customer’s 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.
ANNEXURE
 ANNEXURE-1

QUESTIONNAIRE

CUSTOMER SATISFACTION AND

LOYALTY

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

University). I am doing a research on the above mentioned topic. I request
you 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 interested

in?

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

Insurance e) Others
 2) How did you invest in the last quarter?

___________________________________________________________
___________

___________________________________________________________
____________

3) What do you expect from an investment in a financial

company?

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

Others

4) Which company have you opted as your financial

advisor and why?
___________________________________________________________
_________________

___________________________________________________________
_________________

5) Since how long have they been involved in your

investment 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 in

future? Have you recommended it in the past also?

___________________________________________________________
_________________

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

PRODUCT & SERVICES:

1 2 3 4 5
6 7

EMPLOYEES: (Relationship manager with whom the

customer comes in contact)
1 2 3 4 5
6 7

INVESTMENT PATTERN: (The way the company invests for

you)
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.
 William G. Zikmund, Business Research Methods,
Thomson South Western, 7th Edition, 2005

 www.dawnaydayavsecurities.com

 www.destimoney.com

 www.nseindia.com

 www.valueresearchonline.com

 www.money.rediff.com

 www.wikipedia.com