Inte rnational Journal of Engineering Technology, Manage ment and Applied Sciences

www.ijetmas.com June 2015, Volume 3, Issue 6, ISSN 2349-4476

A Study on Customer Satisfaction towards the Financial

Services provided by Karvy Stock Broking Limited in
Bangalore City
Minu.M1 , Hariharan.R2
1
Lecturer, Department of Commerce, New Horizon College
2
Lecturer, Department of Commerce and Management, CMR Institute of Management Studies

Abstract
This study entitled “A study on Customer Satisfaction towards the Financial Services Provided by Karvy in Bangalore
City” was conducted for Karvy Stock Broking Limited, Bangalore. The primary objectives of the study are to find out the
satisfaction of the customers towards various financial services, the study also aims at to find out the awareness, highest
business area, factor influencing, Quality of services, charges levied, customer relation and facilities.
Descriptive research is used in this research. The primary data is collected from 200 customers of Karvy Stock
Broking Limited in Bangalore city using structured questionnaire method. The existing customers of Karvy Stock Broking
Limited were directly interviewed and their responses were recorded. The sampling technique that was adopted for the
study was judgmental sampling where the data was collected from existing customer group.
The collected data was analyzed using summary (or) descriptive statistics. Percentage analysis, Chi- square test was the
main tools used for the analysis. The study brought to the surface various insights. More than 4/5 th of the customers are
satisfied about the range of services and quality of services provided by Karvy, but effort should be taken by Karvy to
create better awareness about all its services to all customers and also for the prospectus.
Keywords: Customer Satisfaction, Financial Services, Awareness, Infl uences, Awareness.

1. Introduction
The customer satisfaction is the relationship between the customer expectations and the product’s perceived
performance. If the product matches the expectations, the customer is satisfied, if it exceeds, the customer is
highly satisfied.
Customer satisfaction has become increasingly important, as more firms look at whether all attempts to
improve quality, price, and service of the product and generate sufficient sales and profit.
Company should examine the Customer expectation and preferences, how well the firm is meeting those
expectations. For measuring the customer satisfaction, company should use the tools like suggestion and
findings systems, Survey, customer analysis, Precaution in measuring customer satisfaction and Ghost
shopping.
Investment is a commitment of funds made in the expectation of some positive return. If the investment is
properly undertaken, the returns will match with the risk the investor assumes. Investment goals vary from
person to person, business to business. While some want security, others give more weightage to returns
alone.
There are various types of investments such as real estate, stocks and shares, bonds and debentures, mutual
funds, fixed deposits, insurance, national saving certificate etc. As far as the returns are high the risk involved
is also more. A concept, which balances the risk and returns, is mutual funds.

2. Review of Literature
According to Yang, Zhilin and Robin Peterson intends to extend our understanding of service quality and
customer satisfaction within the setting of online securities brokerage services. The results indicate that
primary service quality dimensions leading to online customer satisfaction, with the exception of ease of use,
are closely related to traditional services while key factors leading to dissatisfaction are tied to information
systems quality. In addition, major drivers of satisfaction and dissatisfaction are identified at the sub-
dimensional level.
According to S. Gopalakrishnan and Dr. D.Muruganantham, because of the efforts of the government and
organizations, people have started to think green for consuming product this will lead to increase customer

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 Inte rnational Journal of Engineering Technology, Manage ment and Applied Sciences

www.ijetmas.com June 2015, Volume 3, Issue 6, ISSN 2349-4476

satisfaction of any product or service. They have brought green products into their consideration set. Hence, it
is a good sign for the companies to acknowledge the purchase preferences shift of consumer and capitalize
this to market their products and services.

3. Objectives of the Study

3.1 Primary objective:
To study satisfaction of the customers towards the various financial services offered by Karvy Stock Broking
Limited in Bangalore city.
3.2 Secondary Objectives:
1. To find out the awareness of the customers about the entire range of products/ services provided by
the company.
2. To identify the highest business area among the range of financial products/ services.
3. To find the factors influencing choice the products / services.
4. To analyze the satisfaction of customers towards the quality of services provided, and the charges
levied for services.
5. To find the expectations of customers regarding value added services.

4. Research Methodology
It is design of the study connected with the techniques for collection of the data and analysis of the data in a
manner that aims to have relevance to research purpose. Descriptive – the research design includes survey and
fault finding enquiries of different kinds, it deals with the state of affairs and is an expert factor research. The
researcher does not have any influence on the data being collected.
4.1 Collection of Data
Data collection through the questionnaire is quite popular. Pilot study has been conducted with 20 customers
of Karvy to find the effectiveness of questionnaire, and then the questionnaire has been serviced. It is well
designed & structured in order to enable collection of data required.
4.2 Data source:
For this study the source of data selected was primary data. Primary data are that which is collected fresh i.e.
for the first time, and those happen to be original in nature. The researcher has collected the data from the
respondent through personal contact using the questionnaire. Secondary data regarding company, retailer and
product profiles, and customer list for sampling was collected from company records.
4.3 Sampling Design
Sampling design is a define plan for obtaining sample from a population. It refers to the procedure of selecting
the sample. The sample units are chosen primary on the basis of judgment and hence non- probabilistic. The
Sampling Unit consists of customers for Karvy, Bangalore and the Sample size consist of the present study is
200.
In this method of sampling the choice of sample items depends exclusively on the judgment of the
investigator. Judgment sampling is a type of non-random sampling and is also purposive sampling or
deliberate sampling.
In this study judgment sampling has been adopted to select the samples. The sample unit being Karvy’s
customers.
4.4 Tools Used For Data Collection
Questionnaire is the tool used for data collection. The Questionnaire is designed by keeping the objectives in
mind. For this study various types of questions were framed as direct questions, they are just what their name
indicates. They explicitly ask for the information required. e.g. Name, Address, Closed ended. Here both the
questions as well as answer are structured. Respondents are forced to select one or more than one options for
those particular questions. e.g. Age group – choice, Occupation – choice and Multiple-choice questions are
questions with more than two possible answers e.g. Factors influencing choice of Karvy.
4.5 Tools Used for Analysis of Data
1. Simple percentage analysis
2. Chi-square Analysis

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www.ijetmas.com June 2015, Volume 3, Issue 6, ISSN 2349-4476

5. Analysis and Interpretation

Analysis is the process of placing the data in an ordered form, combining them with the existing information
and extracting the meaning from them. The raw data become information only when they are analyzed and put
in a meaningful form.
Interpretation is the process of relating various bits of information to other existing information. Interpretation
attempts to answer, “What relationship exists between the findings to the research objectives and hypothesis
framed for the study in the beginning”.
Table No. 5.1 - Demographic profile of the Respondents
Variables Range No. of respondents Percentage
Below Rs. 5000 28 14
Rs.5000- 8000 54 27
Monthly Income Rs. 8000- 10000 62 31
Rs. 10000- 15000 22 11
Above Rs. 15000 14 17
Married 138 69
Marital Status
Unmarried 62 31
Below 25 Yr 20 10
26-35 100 50
Age 36-45 42 21
46-55 20 10
Above 55 yrs. 18 9
Schooling 38 19
Diploma / degree 84 42
Educational Qualification
Post-graduate 50 25
Professional degree 28 14
Govt. employee 24 12
Private employee 44 22
Business 38 19
Occupation
Retired 20 10
Professional 24 12
Others (share brokers) 50 25

CHI-SQUARE ANALYSIS
Relationship between Age Group and Customer Satisfaction
Hypothesis:
Ho: There is no significant relationship between Age group of the respondents and customer satisfaction
H1: There is significant relationship between Age group of the respondents and customer satisfaction.

Table No. 5.2 Relationship between Age Group And Customer Satisfaction
Customer Satisfaction High Poor
Moderate
High Poor
Total
Age group Oi Ei Oi Ei Oi Ei
< 25 8 13.6 6 3.4 6 3 20
25-35 89 68 6 17 5 15 100
35-45 26 28.56 10 7.14 6 6.3 42
45-55 8 13.6 5 3.4 7 3 20
Above 55 5 12.24 7 3.06 6 2.7 18
Total 136 34 30 200

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 Inte rnational Journal of Engineering Technology, Manage ment and Applied Sciences

www.ijetmas.com June 2015, Volume 3, Issue 6, ISSN 2349-4476

Oi & Ei indicate the observed and expected frequencies

Row total x Column total

Ei =
Grand Total
Calculation:

 (Oi – Ei)2
=
2

Ei

Calculated value of 2 = 50.73

Level of significance = 5%
Degrees of freedom = (c-1) x (r -1)
=2x4
=8
 2 Table value = 15.5
50.73 > 15.5
Calculated value > table value
H1 is rejected
Inference:
From the analysis it can be inferred that there is no significant relation between age group of the respondents
and customer satisfaction towards Karvy.
Relationship between Occupation and Customer Satisfaction
Hypothesis:
Ho: There is no significant relationship between occupation of the respondents and customer satisfaction
H1: There is significant relationship between occupation of the respondents and customer satisfaction
5.2 Relation Ship between Occupation and Customer Satisfaction
Customer
Satisfaction High Moderate Poor Total

Occupation Oi Ei Oi Ei Oi Ei
Govt. employee 14 16.32 5 4.08 5 3.6 24

Private employee 34 29.92 5 7.48 5 6.6 44

Business 27 25.84 6 6.46 5 5.7 38

Retired 10 13.6 5 3.4 5 3 20

Professional 14 16.32 5 4.08 5 3.6 24
Others 37 34 8 8.5 5 7.5 50
Total 136 34 30 200

Oi &Ei indicate the observed and expected frequencies

Row total x Column total

Ei =
Grand Total

260 Minu.M , Hariharan.R

 Inte rnational Journal of Engineering Technology, Manage ment and Applied Sciences

www.ijetmas.com June 2015, Volume 3, Issue 6, ISSN 2349-4476

Calculation:

 (Oi – Ei)2
=
2

Ei
Calculated value of 2 = 7.3137
Level of significance = 5%
Degree of freedom = (c-1) x (r -1)
=5x2
= 10

 2 Table value = 18.3

7.3 < 18.3

Calculated value < table value
H1 is accepted
Inference:
From the analysis it can be inferred that there is significant relationship between occupation as the primary
source of customer satisfaction.
Findings
Analysis of the survey conducted with 200 respondents reveals the following:
o Half the respondents belongs to the age group of (25-35) years, and 21% belongs to the age group of
(35-45) years; a majority of 42% is degree/ diploma holders, 25% is share brokers, and 31% earns between
Rs. (8000-10000) a month. More than 2/3rd (69%) is married and 46% has (2-4) dependents is their family.
o Karvy’s range of services is known better only to a 15.5%, while 59% knows to some extent about it;
More than half (57%) has dealings with other such service providers also, out of which around 25% deals with
ICICI and HDFC.
o Recommendation by friends/ relatives, the welcome approach is the factors influencing choice of
Karvy. Share/ stock broking is the highly sought after service at Karvy, while Insurance business and availing
TIN facility (PAN, TAN, TDS….) come next.
o Immediate attention provided for the customers, the time taken for providing the service, and on-line
services, are appreciated by the customers, while they are not satisfied much about the quality of advice given,
display of the financial products and application dealt, and the office timings at Karvy.
o The conference hall facility and the hospitality of the staff at Karvy office are satisfactory, while the
seating/ waiting hall, and Drinking water, toilet facility need to be improved.
o Among the customer relations factors- warm welcome, friendly attitude of the staff are appreciated,
while query handling and timely reminders for the services need to be improved.
o More than half the respondents feels that the charges levied by Karvy is moderate, and 34% feels it is
high; and around two-thirds expect more services from Karvy.
o While 61% will recommend Karvy to their friends/ Relatives, 4.5% will not. More than half the
respondents (57%) has faced a drawback/ problem at Karvy.
o A bit more than two- third (68%), are very satisfied about Karvy and the services provided, while
17% has a moderate level of satisfaction, 15% has a low level of satisfaction.
o Chi-square analysis reveals that there is significant association between:
 Dealings with other service providers & customer satisfaction
 Charges levied by Karvy for services & customer satisfaction
 Drawback/ problem faced at Karvy & customer satisfaction
 Other services expected from Karvy & customer satisfaction
 Occupation of the respondents & customer satisfaction.
o Chi-square analysis reveals that there is no significant association between:
 Age group of the respondents & customer satisfaction

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Conclusion
The study on customer satisfaction about the financial services provided by Karvy deals with the quality of
services provided by Karvy, awareness of the customers towards the entire range of services, the factors
influencing choice of Karvy, the highly sought after services, other services expected, and drawback faced etc.
The charges levied by Karvy for the services provided, facilities at Karvy’s office, Customer relation aspects
like friendly and warm attitude, query handling, attitude of the customers about recommending Karvy to
others were also covered. Relationship between the relevant demographic factors and customer satisfaction
towards Karvy, and also with their dealings with other such service providers were studied. The data collected
was analyzed using appropriate statistical tools, based on which suggestions to improve the satisfaction of
customers were given

References:
[1]. S.Gopalakrishnan & Dr.D.Muruganandam, “A micro analysis on dissect of consumer’s to procure green
products”, Life science journals 2013; 10 (2): 1028 – 1032. ISSN 1097 – 8135.
[2]. S. Gopalakrishnan, “An assessment of mutual fund investors behavior”, Journal of Management and Science,
ISSN: 2249-1260, Volu me 3, Issue 12, April 2013, PP 27-33
[3]. Yang, Zhilin and Robin Peterson (2004) “Customer Satisfaction, Perceived Value, and Loyalty: The Role of
Switching Costs,” Psychology & Marketing, 21 (10), 799-822.
[4]. Richard I. Levin & Dav id S.Rubin, “Statistics for Management”, Pearson Education, Seventh Ed ition, 2002.
[5]. C.R. Kothari, “Research Methodology Methods and Techniques” Vishwa Prakashan, Second Ed ition

262 Minu.M , Hariharan.R