10-10-2014, 11:45 AM
INVESTORS ASSOCIATION WITH SHARE BROKER A
DISCRIMINANT ANALYSIS
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ABSTRACT
Proficient financial service delivery is very much depends on how the investors and
share brokers are connected. The research is indentured to find out how the share
brokers are associated with the investors. The study identified 27 relationship
components and discrimination has been analysised. Among the regional stock
exchanges located in India, the Coimbatore has been selected for the present study.
The share brokers and investors have been selected by adopting simple random
sampling technique. The data has been collected through pre-tested, structured
interview schedule through direct interview method. The data and information have
been collected from 150 share brokers and 450 investors. The discriminant analysis
indicates that frankness, care, disclosure, friendship, attitude and safe and security
discriminate best among four associated groups.
INTRODUCTION
Indian financial service sector is the one of the most vibrant sector for the past decades
due to liberalization and deregulation. Changes in customers’ behavior are the
fundamental drivers of new business development in the financial services industry.
Some of the current trends include a demand for ubiquitous availability of information
and services, provision of individualized information (including personalized consulting
and problem solutions specific to individual financial issues), and the availability of
various high-quality communication channels (for example mobile banking, Internet
services, call centers, etc.) (Korner and Zimmerman, 2000).
The numbers of surplus savers are in increasing in India due improved earning
capacity and increased family income. Financial service institutions are working hard to
get more investors to improve their business. Relationship management is considered
to be as one of the most important tool to retain customers of financial service
institutions in the digital era.
CONCLUDING REMARKS
The highest value (0.45) corresponds to the first discriminant function, which shows that
it has the strongest power of discrimination of the two functions. Also, the first function
accounts in a ratio of 79.80% for the dispersion of the group means, as compared to the
second and third function account 13.30 and 6.90% respectively.
The canonical correlation coefficient, measuring the relation between discriminant
factorial coordinates and the grouping variable show that 79.75 that is, (0.893)2
of the
total variance accounts for the differences among the four associated groups through
the first discriminant function.
For the first discriminant function, it can be seen that correlation coefficients have high
values for five measures viz., disclosure, care, frankness, attitude and safe and security,
which means that these measures are strongly correlated with the first function. These
measures would probably characterize best division of associated groups.
For the second function complaints, responsibility, rules, commitment, opportunities,
tolerance, innovations, facilities, timely transaction and accuracy are strongly correlated.
These measures would also probably characterize best division of associated groups.