customer perception & satisfaction towards edelweiss’s … · 2019-06-12 · the company...

Periyar Journal of Research in Business and Development Studies, 4(1), January-June 2019, ISSN 2456-0987(O) Special Issue: Proceedings of paper(s) presented in National Conference

144

Bi-annual e-Journal published by Periyar Management and Computer College, New Delhi

Customer perception & satisfaction towards Edelweiss’s investment products

Susheel Chhabra, Periyar Management and Computer College, Delhi

Priya Arora, Research Scholar, Periyar Management and Computer College, Delhi

Abstract

The paper studies customer perception & satisfaction towards Edelweiss’s investment products

based on trading and investment parameters and investigates competitive opportunities and

challenges expected to be faced by the Edelweiss Broking Ltd. The survey of 50 respondents of

retail company clients was conducted. Based on survey and analysis, suggestions along with how

to handle customers effectively have been suggested at the end of study.

Keywords: Customer perception, satisfaction, investment products

Introduction

Customer perception & satisfaction and corresponding value generated through products and

services is the essential component for survival in the market. The customer perception of clients

indicates the challenges the company is expected to face and what type of additional products

and services the company should offer.

Objectives of Study

The objective of the study is to identify customer perception & satisfaction towards edelweiss

investment products and suggest how areas for improvement for the growth of the company.

Research Methodology

The scope of the study is existing clients of the Edelweiss. The present research work is based

on the mix of exploratory & descriptive research as the prime aim is to explore customer

perception & satisfaction towards edelweiss investment products. Primary survey of 50 clients of

the company based on questionnaire was conducted in Delhi NCR using convenience sampling

technique.


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Data Analysis

The type of questions asked in the questionnaire along with interpretation of data is given blow

for further analysis and to make recommendations.

What is your Annual Income?

Figure - 1

It is seen that many customers of Edelweiss have income more than 5 lakhs. This is good sign for

the company as rich people trade more than people having less income and also provide the

company with a huge sum of brokerage. Also this justifies that company’s target group of

clients.

What are the possible sources that you search for financial product information before

making any decision?

Figure - 2

14%

24%

28%

34%<3 Lakhs

3 - 5 Lakhs

5 -7 Lakhs

7 Lakhs and Above

No. of respondents <3 Lakhs 3 Lakhs – 5

Lakhs

5 Lakhs – 7

Lakhs

7 Lakhs and

above

50 7 (14%) 12 (24%) 14 (28%) 17 (34%)


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As seen, many people prefer to buy from word of mouth and through their friends and relatives.

That’s good for the company as 98% of people would recommend Edelweiss to others. So this

will help in generating positive word of mouth, and as seen many people get convinced by word

of mouth rather than other advertisement channels.

Through which one of the channels do you usually buy a financial product?

Figure – 3

05

101520

No

. of

Re

spo

nd

en

ts

Series 1

0

10

20

30

40

Axis TitleSeries 1

No. of

respondents

Television/Radio Internet/Website Newspapers/Magazines Word of

Mouth

Friends/Relatives

50 7 (14%) 5 (10%) 6 (12%) 18

(36%)

14 (28%)


147


About 78% of clients prefer to buy their financial products through a broker where as 10% and

4% people prefer sub-brokers/franchisee and Internet respectively. They feel that it is better to

buy any financial product from the company outlet as it is the most trusted source than any

individual selling the same product through its franchisee. So, this is good for the company as

company also doesn’t believe in sub-brokers or franchisee. The company has adequate branches

all over the city, so the customer does not find it difficult to reach them. Also many people trust

company placed brokers or branches and not sub-brokers or franchisee. So, this gives a company

an edge

What is your preferable tool of investment?

Figure- 4

0

2

4

6

8

10

12

14

Bank Deposits

Real Estate Derivative Instruments

Mutual Funds

Golds and Bullion

Equity Shares

Axis TitleSeries 1

No. of

respondents

Internet Broker Sub – Brokers/Franchisee

50 2 (4%) 38 (76%) 10 (20%)


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When it comes to investing one’s income 28% of the people prefer to be on a safer side and

avoid risk by investing in bank deposit. The next option is mutual funds, about 22%

derivative/F&O is the next best option. So, there is a huge potential for the company to convert

those customers to deal with equities and open up their Demat account. So, this could increase

the market size and would help the company to increase their customer base and hence revenue.

Therefore, we can say that people prefer risk free and low returns and rather than risky.

How did you come to know about Edelweiss?

Figure-5

No. of

respondents

Internet Media Family Reference

Group

By Chance

50 6 (12%) 4 (8%) 17 (34%) 16 (32%) 7 (14%)

The above graph shows that Edelweiss has a good reputation among-st its customer as most of

the people have heard the company’s name form their family, 34% and reference group, 32%.

0

2

4

6

8

10

12

14

16

18

Internet Media Family Reference Group

By Chance

Axis TitleSeries 1

No. of

respondents

Bank Deposits Real Estate Derivative

Instruments

Mutual

Funds

Gold and

Bullion

Equity Shares

50 14 (28%) 5 (10%) 10 (20%) 11

(22%)

4 (8%) 6 (12%)


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So, company needs to maintain this reputation and this would help the company to bring more

new clients and also will increase the reputation of the company in the market. This will also

help to create satisfied and thus loyal.

Are you aware of all the products offered by Edelweiss?

Figure - 6

No. of respondents YES NO

50 16 (32%) 34 (68%)

When it comes to awareness of the products, 68% of the people are unaware of the Edelweiss

offerings. In this category few respondents knew about the equity trading but were not aware of

all the products of Edelweiss, while a large chunk of respondents had never heard of Edelweiss.

Since how long you have been trading?

Figure-7

32%

68%

YES

NO


150


No. of

respondents

0 – 3 Months 3 – 6 Months 6 – 12 Months More than

an Year

50 7 (14%) 11 (22%) 18 (36%) 14 (28%)

28% of the respondent’s population is involved in trading for more than a year while 36% for 6 –

12 Months, 22% for 3 – 6 Months and 14 % for less than 3 months. So, this proves that most of

the Edelweiss clients have knowledge about the market and shares as they are being traded for

sufficient amount of time. Hence, it becomes easy for handling the customers as they already

have adequate knowledge about the share market.

Which Edelweiss Products are you using now?

Figure- 8

0

2

4

6

8

10

12

14

16

18

0 - 3 Months 3 - 6 Months 6 - 12 Months More than an Year

Axis TitleSeries 1


151


No. of

respondents

Mutual Funds De-mat Initial Public Offering Futures and

Options

50 11 (22%) 17 (46%) 3 (6%) 19 (38%)

From the response it can be seen that Demat (Equity shares) is the highest selling products of

Edelweiss followed by Futures and Options (F&O). 46% of the respondent’s populations prefer

Demat. 38% are with F&O and 22% with Mutual Funds.

How long have you been associated with Edelweiss?

Figure-9

0

2

4

6

8

10

12

14

16

18

20

Mutual Funds Demat Initial Public Offering

Derivatives (F&O)

Axis TitleSeries 1


152


This graph shows that 24% of people are associated with Edelweiss with more than a year while

32% for 6 – 12 Months, 16% for 3- 6 Months, 16% for 1 – 3 Months and12% for less than a

month. So this proves that many of the people are associated with Edelweiss for much time. So

this justifies the point of, “Cream Clients”, loyal customers. So, the more loyal the customers,

more number of trust could be build and these customers will help to generate positive word of

mouth. Therefore, the company need to maintain the same reputation that it already has in the

market to retain the old clients and attract new clients.

Do you feel that Edelweiss provide effective and profitable TIPS?

Figure- 10

0

2

4

6

8

10

12

14

16

Less than 1 Month

1 - 3 Months

3 - 6 Months

6 - 12 Months

More than an Year

Axis TitleSeries 1

No. of

respondents

Less than 1 Month 1 Month – 3

Months

3 Months – 6

Months

6 Months

– 12

Months

More than an

Year

50 6 (12%) 8 (16%) 8 (16%) 16 (32%) 12 (24%)


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50 46 (92%) 4 (8%)

People are very happy with the Edelweiss tips. And also their tips and research are considered to

be the best in the market. This is proved by the above graph as 92% of population feels that

Edelweiss tips are profitable. So, company should highlight this point so as to boost sales. This

will create a good impression in the minds of potential customer. The company should find ways

to promote and highlight this point.

Please indicate the level of importance regarding your decision factor in buying a

financial product?

Figure - 12

92%

8%

YES

NO


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When it comes to the choice of the company the factor that affects the decision to the largest

extents is the service of the company and brokerage charge of the company. Dealer support and

guidance combined with brand image of the company i.e. the reputation of the company is the

second best choice of the customers. As seen before Edelweiss provides the best brokerage

(cheapest) rate compared to its competitors. So, it has the capability to attract lots of customers.

Also Edelweiss has a good brand image in the market and provides the best research so that

works as an edge for Edelweiss.

How would you rate your relationship with your dealer/relationship manager?

Figure - 12

0

2

4

6

8

10

12

Axis Title

Series 1

No. of

respondents

Brand Image

of the

Company

Innovative

Products

Proximity of the

Outlet

Service Dealer

Support and

Guidance

Brokerage

50 9 (18%) 4 (8%) 4 (8%) 12

(24%)

9 (18%) 12 (24%)


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40% of the people say that they are happy with their dealer and RM (Relationship Manager)

provided to them by the company. 38% of the people say that they are satisfied with their dealer

and RM. This is good for the company as seen before that people also considers the dealer

support and guidance in deciding the company to buy any financial product. So if people are

satisfied with the dealer and RM, they will help to spread positive word of mouth and bring in

more customers.

If you have any problems, are your Dealer and Relationship Manager easily approachable

and accessible?

Figure – 13

0% 0%

22%

38%

40%1

2

3

4

5

92%

8%

YES

NO

No. of

respondents

1 2 3 4 5

50 0% 0% 11 (22%) 19 (38%) 20 (40%)


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50 46 (92%) 4 (8%)

92% of the people say that if they have any problem, their dealer and RM are easy available. So

this proves that Edelweiss provides a good service and customers are very happy to be associated

with Edelweiss. This point will help to create a healthy long term relationship with the customers

or loyal customers as many people are convinced by the dealer support and guidance when

choosing the company to buy financial product.

Is your company website easily accessible?

Figure – 14


50 48 (96%) 2 (4%)

96% of the sample size population says that the Edelweiss website is easily accessible. That is

good for the company as it should try as simple as possible to make ease for the customers to

maximize their satisfaction level.

Does your company website contain all the information you need?

Figure – 15

96%

4%

YES

NO


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72% of the people think that their

website contains everything they needed to trade but yet there are 28% of the people who says

that there are not enough feature available at the Edelweiss trading site. It means there are still

feature missing in the website which Edelweiss needs to take care of. The features are discussed

in the recommendations and suggestions.

What was the perception about the company before joining the company?

Figure-16

No. of

respondents

Excellent Good Fair Bad

50 17 (34%) 23 (46%) 10 (20%) 0%

34% of the people have an excellent perception about the company. 46% of the people have a

good perception about the company followed by the rest 20% who had a fair perception about

the company. This proves that Edelweiss has a good reputation in the market as many of the

people have a good perception in the market before joining the company itself. This has led the

company to become one of the top brokering firms in the industry.

What is your current perception about the company?

Figure - 17

34%

46%

20%

0%

Excellent

Good

Fair

Bad

No. of

respondents

YES NO

50 36 (72%) 14 (28%)


158


No. of

respondents

Excellent Good Fair Bad

50 36 (72%) 12 (24%) 2 (4%) 0%

As seen many people had a good perception about the company before joining the company. But

after they are associated with the company, most people’s perception has changed from good to

excellent. This has made the company a difference in the market. They keep the customer so

satisfied and happy that their perception changes to excellent and these are only the people who

help to spread positive Word of Mouth. Also as found, the company is customer centric which

has helped the company to emerge as one of the giants.

Please rate the overall performance of Edelweiss on following scale.

Figure - 18

72%

24%

4% 0%

Excellent

Good

Fair

Bad

0

5

10

15

20

25

Extremely Satisfied

Satisfied Neutral Less Satisfied

Dissatisfied

Axis TitleSeries 1


159


As seen, most of the people seem satisfied with the company. Yet there are 12% of the people

who are neither satisfied nor dissatisfied. They do not seem to justify why the company is good.

They feel that Edelweiss does not have any point of difference; it’s the same as the other

companies in the industry. So Edelweiss needs to focus on these types of customer and find a

way to make them believe that Edelweiss is the best brokering firm in the industry. This will help

the company to construct people’s perception superior and will also help to develop the

reputation of the company.

Will you recommend Edelweiss products to your friends/family?

Figure - 19

98% of the people will recommend the Edelweiss products to their family or friends. As

discovered above, many people consult their reference group while buying any financial product.

98%

2%

YES

NO

No. of

respondents

Extremely

Satisfied

Satisfied Neutral Less

Satisfied

Dissatisfied

50 19 (38%) 25 (50%) 6 (12%) 0% 0%

No. of

respondents

YES NO

50 49 (98%) 1 (2%)


160


So due to Edelweiss’s good reputation in the market and due to the customer being satisfied, they

will recommend it to others. This can help to create good business through references.

What is your opinion about selling strategy of Edelweiss?

Figure -20

No. of

respondents

Excellent Above Average Average Below

Average

50 6 (12%) 9 (18%) 20 (40%) 15 (30%)

Only few people think that Edelweiss’s selling strategy is good enough for the market, about

30%. Rest 70% of the people thinks that Edelweiss needs to work on their selling strategy so as

to be more recognized in the market and to create more awareness. As they think that

Edelweiss’s selling strategy is either average or below average.

According to you what is the competitive advantage of Edelweiss over its rivals?

Figure -21

0

5

10

15

20

Excellent Above Average Average Below Average

Axis Title Series 1


161


28% of the people think that Edelweiss’ quality of service is the best in the market as they think

it as an advantage over competitors. Many other people think that Edelweiss has an advantage in

minimum cost (brokerage rate) and this is also justified above in this report that Edelweiss

provides the lowest brokerage rate in the market. 24% of the people think that Edelweiss holds

an advantage on minimum cost over its competitors. Other 20% people say that Edelweiss’

research is the main advantage over its competitors. Very few people think that Edelweiss has an

advantage on diversified product portfolio. Edelweiss seems to be working on this issue as it is

now diversifying its product portfolio to commodities. Only 4% of the people believe that

Edelweiss ease of service is an advantage of Edelweiss over its competitors.

Who do you think has the best trading software in the industry?

Figure -22

02468

101214

Axis Title

Series 1

No. of

respondents

Minimum

Cost

Quality of

Service

Diversified

Product

Portfolio

Good

Research

Team

Trained

Staff

Easy

Availability

of Service

Provide RM

and Dealer in

Minimum Plan

50 12 (24%) 14 (28%) 3 (6%) 10

(20%)

5

(10%)

2 (4%) 4 (8%)


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No. of

respondents

Edelweiss

Broking Limited

Share Khan Angel Broking

Limited

Motilal

Oswal

India Info Line

(IIFL)

50 15 (30%) 27 (54%) 4 (8%) 2 (4%) 2 (4%)

It seems that Edelweiss does not have the best software in the industry but it still has a good

enough for the customers. Share Khan possesses the best software. Others’ company software

have been rated very low.

Summary of Data Interpretation

• People usually prefer to invest or buy from word of mouth & through their friends or

relatives therefore, the company needs to maintain its current position so that it will

help to spread positive word of mouth.

• Study reveals that 78% of respondents prefer to invest their financial product through a

broker.

0

5

10

15

20

25

30

Edelweiss Broking Limited

Share Khan Angel Broking

Motilal Oswal

IIFL

Axis Title

Series 1


163


• When it comes to investing one’s income than 28% of respondent prefer bank deposit

to be on the safer side.

• Edelweiss has a good reputation among its customers as 34% respondents have heard

from their family & 32% as reference group.

• 28% respondents have been involved in trading for more than a year while 36% for 6-12

months.

• 46% of respondents prefer De-mat Account with Edelweiss followed by 38% for Future

& Options.

• 92% of respondents feel that tips & research of the company are profitable.

• Brokerage and services with 24% of respondents is the factor that effects the decision

regarding choice of the company.

• 40% of respondents are happy with their Relationship Manager provided by the

company.

• 92% of the respondents agree that they are easy approachable to their Relationship

Manager or dealer in case of issues.

• 50% of the respondents rated Edelweiss as satisfied.

Conclusions

Edelweiss has achieved goals as per the expectations of clients. In order to achieve the desired

expectations and to build more healthy brand image in consumers’ minds they have further made

corporate tie ups. At the same time, the company has built corporate presentations to build the


164


right and focused perception in consumer’s mind. They are more concerned about customer’s

queries and problem-solving approach for better customer satisfaction.

Running a successful investment requires complete understanding of the peculiarities of the

Indian Stock Market and also the psyche of the small investor. This study has made an attempt to

understand the behavior of small investors in connection with the scheme preference and

selection.

People don’t understand the relation between risk and reward. On one hand they want high

returns and on other hand they want to remain risk free. This is due to lack of knowledge among

investors.

Many people neglect their needs and long-term financial goals before investing. Unfortunately,

this often results in their falling short of their expectations.

There is wide untapped Insurance and Mutual funds market in India.

Investors don’t have good investment knowledge. This leads to the gap in savings and

investment.

This is evident that individuals behave differently and have different mindsets. So, we need to

understand each individual. Understand his/her needs and capabilities so as to provide him with a

suitable investment avenue.

Bibliography

www.moneycontrol.com

www.nseindia.com

www.bseindia.com

www.investopidia.com

www.sebi.gov.in

http://dl6.globalstf.org/index.php/gbr/article/view/679/624

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.735.4905&rep=rep1&type=pdf#page=

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customer perception & satisfaction towards edelweiss’s … · 2019-06-12 · the company...

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