Ideas On Polanyi's Markets

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JOURNAL OF
MANAGEMENT AND SCIENCE
Published by
Non Olympic Times
Journal of Management and Science - JMS
A International Level Quarterly Journal

on Journal of Management and Science
April-June, 2012
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June Issue
JOURNAL OF MANAGMENT AND SCEINCE
Dr.A.Chandran
Managing Editor,
Dean, RVS Faculty of Engineering,
Tamilnadu, India.
ASSOCIATE EDITORS
Dr.Frank Fuller
Professor, Department of Political
Science, Clark Atlanta University,
USA.
Dr. Arup Barman
Reader, Dept. Of Business
Administration, Assam University,
Assam, India.
CONTENTS
Page No.
IDEAS ON POLANYIS MARKETS

Frank Fuller
3-10
A EFFECTIVENESS OF TECHNICAL INDICATORS - A STUDY

ON CNX IT INDICES
K.Prabhakaran and S.Nagarajan
11-20
A STUDY ON HR ISSUES IN RETAIL OUTLETS IN

COIMBATORE
M.G.Saravanaraj, S.Arulsenthilkumar and N.Punitha
21-32
ANALYSING THE VOLATILITY OF NSE INDICES EMPRICAL

STUDY
V.Prabakaran and D.Lakshmi Prabha
33-41
THE EFFECT OF DEMOGRAPHICS ON INVESTMENT CHOICE:

AN EMPIRICAL STUDY OF INVESTORS IN RAJASTHAN
Dhiraj Jain and Khushboo Ranawat
42-61
Prof.P.Malyadri
Principal, Government Degree College
Osmania University, A.P., India.
AN EMPIRICAL STUDY ON BARRIERS OF INNOVATION IN

INDIAN SMES
S.Poornima and K. Nithya Kala
62-68
Dr.V.Vijay Durga Prasad

Professor and Head, Department of
Management Studies
Potti Sriramulu College of Engineering
and Technology, A.P., India.
IMPLICATIONS OF INTERMEDIARIES IN GLOBAL LOGISTICS

OF FOREIGN TRADE
C. Muthuvelayutham and R.Karuppasamy
69-74
A STUDY ON CONSUMERS BRAND PREFERENCE TOWARDS

PURCHASING CAR
IN TIRUNELVELI DISTRICT
T. Samson Joe Dhinakaran
75-80
WORD OF MOUTH: THE KEY TO UNLOCK HINTERLAND

P.Prialatha and K.Malar Mathi
81-95
EVALUATION OF CONSUMER PROTECTION COUNCIL WITH

SPECIAL REFERENCE TO ERODE DIRSTRICT
N.A.Krishnamurthi and K.M. Suresh
96-105
Dr. Arul Suresh

Professor , Department of Commerce
Loyola College (Autonomous), India.
Prof.M.Venkatachalam
Department of Mathematics
RVS Faculty of Engineering, India.
Prof.K.Prabhakaran
Department of Management Studies
RVS Faculty of Management, India.
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EDITORIAL BOARD
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IDEAS ON POLANYIS MARKETS
Frank Fuller
Department of Political Science, Clark Atlanta University, USA.
ABSTRACT: What makes a market society one that is more beneficial than a society that is stateregulated? Is the world market truly leading towards these types of changes? Prosperity comes from greater
interaction between states and markets. Firms drive needs for global trade, but society within states
promotes market changes. Some regulation of markets is desirable, while free markets must have some
enforcement mechanism of rules to address inequalities and alleviate some of the side-effects of market
transition.
Key words: Polanyi, Political Economy, Subsistence Farming, Globalization
1. Introduction. One can ask the question, does democracy reduce income inequality, or does it in fact
have the opposite effect, especially with respect to Latin America and Eastern Europe? Is a democraticoriented society more beneficial than a society that is state-regulated? Polanyi asserts that societies that
endorse much of the laissez-faire ideology today, especially endorsed by democracies, are sorely lacking in
providing needs for the poor and in assessing the problems of the underprivileged. Who are the ones that
actually benefit, such as when more industrialized countries go in and invest in a Third World nation (such
as Mexico) to build a manufacturing plant, with most of the profits being funnelled back into the host
country? Lenin, for one, emphasized this point about capitalism:
Lenin asserted that finance capital was responsible for imperialism, notably for the struggle for
spheres of influence, concessions, extraterritorial rights, and the innumerable forms in which the
utilities, ports, and other permanent establishments on which their heavy industries made profits,
as cited by Polanyi (2001, 16).
2. Problems with Income Inequality. Such are certain gaping disparities that exist even in today's global
economy. The call for state regulation of markets is not unwarranted, as Polanyi would advise even the
most stable of markets to have some sort of regulation. However, the Washington consensus favours the
opposite view and perceives the inequalities as mere side effects that are necessary in any society that is
moving towards a freer, more interconnected world system, for they believe that "the key to transformation
is 'getting prices right' and getting the government out of the economy through privatization and
liberalization," cited by Polanyi (2001, XIV). The challenge is to find which system is the most effective
and perhaps view some alternative means of resolving the debate. The most difficult part of a society
moving from one of, for example, subsistence farming into one of diversified industries is the fact that there
are many people who will not benefit from these drastic changes. The poorest of the poor and those whose
Western Powers got a stranglehold on backward regions, in order to invest in railways, public
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products will become obsolete with emerging technology will be most affected. What is to be done about
these people, economically speaking? Democracy is supposed to bring excitement, opportunity. However,
we see that this is not always the case, as the reality sometimes paints a different picture in Budapest,
Hungary:
Intense, undisguised begging is certainly a new phenomenon in Budapest. Poverty is not new, but
the wide-spread perception of misery is, and inequalities are more striking than earlier. Begging,
usually considered an offense by the police, was not possible during the state socialist period: the
fiction of full employment and security held so strong in the days of high socialism that the
motivators for givingbad conscience or genuine empathy for displayed povertydid not exist.
While taking note of the striking and colourful crowd of beggars during his visit to Moscow in
1926-27, Walter Benjamin observed that one very seldom sees anyone to give. Begging has lots
its strongest foundation, the bad social conscience, which opens purses so much wider than does
pity. But social conscience is back and it does open purses, but due to the homogenization of
neighbourhoods and to increasing motorization, not the purses of those whose conscience is
supposed to be the worst: the wealthiest hardly ever encounter beggars. (Field evidence suggests
that this is one reason that this is one reason for choosing to drive instead of using public transport
on the part of those who have a choice.), according to Bodnar (1998, 499-500).
The only possible alternative to such a situation, Polanyi would say, is to regulate markets so that the
disparity of income is minimized somewhat. Public housing can be provided for the poor, as well as public
assistance of various kinds. The system of governance cannot always be accounted for in contributing to
many of the problems. Even in a stable system with sound political solutions, there is always going to be
one group left out, for in self-regulating markets, "such an institution could not exist for any length of time
without annihilating the human and natural substance of society; it would have physically destroyed man
with the help of the state, can be taught to be aware of these types of changes that formulate. The
involvement of the state is critical to helping these underprivileged groups to survive, for if no one claims
them, they can wither and die. In times of crisis, such as a famine, a Third World nation, such as Mexico,
on the brink of industrialization suffers most if it does rely heavily on subsistence farming, as stated earlier.
There is little room for compromise when considering the effects of how the total markets will be affected,
since profits will virtually be eliminated for the small farmer and the means to survive will decline even
further.
The state's efforts can offset the losses, provide for a workshop or two on better farming
techniques, and even aid the workers in investing in more sophisticated farming equipment. Unregulated
markets, particularly those that operate under capitalism, can lead to unintended consequences, not the least
of which is providing for the few and taking away from the many. Tony Waters, in an article on Tanzania,
for example, explains that activities such as subsistence farming are outside of the typical market activities
and can often lead to exploitation if some effort is not made by the state to address this sector of the
and transformed his surroundings into a wilderness," as Polanyi (2001, 3) states. Those in abject poverty,
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economy, according to Waters (2000, 617). Industrialization also cannot avoid certain realities, which
"Pauperism fixed attention on the incomprehensible fact that poverty seemed to go with plenty. Yet this
was only the first of the baffling paradoxes with which industrial society was to confront modern man,"
says Polanyi (2001, 88).
3. Unregulated Markets vs. State Intervention. Is the world market truly leading towards these types of
changes? Is the Washington consensus striving entirely to industrialize with regard for little else? This
seems so, since many Western European democracies are pushing ahead with entrepreneurial spirit and
with sparse room for many alternatives. What would happen if the unregulated markets were to continue
unchecked? Disaster would not only occur in crises, but the income gap would be widened between the
haves and the have-nots. This would not be the only problem, but exploitation would occur by host
countries to Third World institutions. Exploitation itself "has been perpetrated so often, so persistently, and
with such ruthlessness on the backward peoples of the world by the white man" that it remains such a
critical issue even to this day, according to Polanyi (2001, 166). One can actually observe this exploitation
if one looks carefully at the way that United States' businesses operate in Mexico. For example, many of
the factory workers in Mexico (in the plants set up by US and other multinational corporations a
corporations are often non-unionized, poorly paid, and deprived of the social benefits of economic
development according to Sklair (1992, 99). Mexican organizations can pick and choose how they
decide to initiate democratic principles, which makes managing at the micro level harder. The labour
unions are few, the pay for workers, especially at minimum wage, is much less, and the environmental
regulations set forth by many governments have declined to the point of being major hazards throughout
this smaller, more vulnerable nation. The most dangerous aspects here are the fact that the environmental
regulations would have fewer boundaries or limits as to how much pollution there is. There must be some
kind of authority to check on private corporations in maintaining an ecologically friendly approach. Vicki
devastating effects of a self-regulating market; despite being a critic of capitalism, Polanyi wasa
pragmatist who believed socialist ideals could be accommodated once the myth of the free market was
finally disposed of and the economy re-submerged in social life rather than its obverse under economic
liberalism, cites Birch field (2005, 587). All of the nightmares of the antitrust and the extreme pollution
that everyone hears about will certainly come true if free markets continue unchecked in other nations in
the foreseeable future. However, there is hope, as Birch field and Polanyi stated. Prosperity comes from
greater interaction between states and markets. Critics should not be so quick to dismiss the old state-run
regimes, as they have valuable lessons to learn, since democracy does not come overnight, and a transition
to another form of government brings difficult conditions: But if communism is dead as an ideology and a
system of rule, its encumbering legacy continues to haunt the political and social landscape. Since the
transition was gentle, the bulk of the old nomenklatura remains, attempting at every turn, as Elemer
Hankiss puts it, to convert its old politically based privileges into new economic rights. This spectacle has
Birch field contends that Polanyi demonstrated that capitalist productionhad to be insulated from the
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fostered a diffuse but profound sense of injustice and tempted many to follow the radicals in demanding a
settling of accounts with officials and the collaborators who ran the repressive machinery of
the
old
regime. After a soft transition have come economic and social hardship and a search for those responsible
for the crimes of the past and the difficulties of the present, as cited by Rupnik (1996, 367).
4. Privatization vs. Strong State Models. Markets are only effective when there is a fine line between
businesses being profitable while reminding them of their limitations in profit-maximizing schemes. Some
aid must be given to workers while they adjust to market changes, and interest rates also must be adjusted
from time to time in order to be fair, especially in the capitalist system, which is notorious for its
exploitations, as Polanyi would say. Many experts of the Washington consensus argued that there is no
need for government intervention; they rest on the idea that the "invisible hand" will right things when they
seem to be inevitably going bad. Development itself, in their view, is "little more than the accumulation of
capital and improvements in the efficiency with which resources are allocated," cites Polanyi (2001, XIV).
However, the invisible hand only works when a system is in place to evenly balance everything and
everyone. Not only are such necessary measures as inflation adjustments needed, but subsidizing the poor
and the oppressed and new re-training methods in jobs can prove to help workers in the long run. The state
should first be allowed to take the initiative, creating sufficient infrastructure that attracts investment.
Having both the state and the market work together on achieving a singular vision allows for the
transformation of societies in which each household has the ability to produce what it needs for basic daily
survival and social reproduction into ones where market mechanisms must operate for households to meet
basic daily survival needs, cites Waters (2000, 615). The market, then. is obligated to follow through once
the state takes the lead early on.
5. Alternatives to Capitalistic Models. This is perhaps the beginning of some alternative solutions that are
available. Today, we realize more and more what the social ills of capitalism can do to those who struggle
privatization of everything leaves less responsibility for any one organization in addressing these social
ills of society. Capitalism may benefit many, but who is going to help those who are left out if there is no
public assistance? The early forms of capitalism show that especially without a labor market it "failed
disastrously. The laws governing such an order (the landlord and the allowance system) had asserted
themselves and manifested their radical antagonism to the principle of paternalism," cites Polanyi (2001,
84). Also, in this increasingly technological world that we live in with fast-moving markets and jobs that
seemingly change overnight, there have to be some safety mechanisms in order to prepare people for these
changes. In the rush to impose democratic incentives, the lesson of gradual transition remains steadfast,
especially post-Communism to formulating a democratic structure, here exemplified in Eastern Europe:
There are other, more pragmatic considerations that one might add to these. After a negotiated
revolution, it would have been awkward to suddenly turn against the very same roundtable partners who
allowed the nonviolent transition to occur.
While the moral imperative to oust collaborators or the
the most. Privatization of all industries can make things more difficult for legitimizing businesses, and mere
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nomenklatura is understandable, it could also undermine economic efficiency. Getting rid of the old
economic officials, high-level administrators, and judges may be desirable, but who is to replace them?
Dissidents? There were not many of them, and while they were surely virtuous, they are not necessarily
qualified to manage the economy or modernize the state apparatus. For liberals, however, the most
objectionable idea is that decommunization can provide society with a kind of collective catharsis.
Communisms legacy in the structures and mentality of the society was decades in the making. The debate
about the weight of this legacy thus leads to a pessimistic vision that extends beyond the reach of moral
injunctions: the totalitarian experience soils the victim as much as it does the torturer, cites Rupnik (1996,
367-68).
England was able to withstand change during the Tudor and Stuart dynasties because of certain adjustments
that were made by the state: England withstood without grave damage the calamity of the enclosures only
because the Tudors and the early Stuarts used the power of the Crown to slow down the process of
economic improvement until it became socially bearable employing the power of the central government to
relieve the victims of the transformation, and attempting to canalize the process of change so as to make its
course less devastating, says Polanyi (2001, 40).
Job retraining programs are an excellent form of public assistance to help those in need and those people
who are left "in the dust," with seemingly no one to anchor their problems. When people are eliminated
from their jobs because of downsizing, for example, one of the biggest tragedies that comes out of this is
the fact that workers can sometimes only temporarily obtain severance pay, but overall many of them lose
their retirement benefits. This is one of the most difficult realities that we face today, and so in capitalism's
right to maximize profits, it often loses its ability to help others when it resorts to these actions in getting
rid of existing jobs that are deemed unnecessary to continue or obsolete because of emerging technology in
replacing workers. One can consider another special example in one of many of capitalism's faults. In
painstakingly go through the fields and hire people to hand-pick them. However, the efficiency of this
technology allowed many workers to be displaced because of the time saved and the smaller number of
laborers that were required to operate the machinery. The time may have been well spent in utility of costs,
but the many union workers in California saw the machines as a threat to their employment. The workers
lobbied successfully to get the machines banned so that many people that relied on picking these tomatoes
were allowed to continue without being forced out of the markets. Also, if one takes a closer look, one
realizes that if there were no unionization of workers in the state, these laborers would never be allowed to
have their jobs. Many of them are poor, uneducated, and little equipped to transfer quickly to other sectors,
and many of them come from Mexico and must provide for their families back in their home countries.
The problem is that mechanized picking had been a response to the growing strength of labor and the
organization of the United Farm WorkersMechanized picking had been availablefor some time, but
they only introduced machines into thefields whenfaced with unionization and new labor legislation,
California some time ago, machines were invented to pick tomatoes to cut the time of having to
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says Burawoy (1979, 240). A more constructive approach would have been to follow the advice of Trist
and his peers on combining the best of both worlds, such as he suggested in mining operations: Trist et
alclaim that mechanization of mining, which involves the fragmentation of work and the break-up of the
self-regulating, self-selecting work group, leads to higherstress,absenteeism, and lowerproductivity
than a system which involves the mutual adaptation of men and machines in the retention of the relatively
autonomous work group of the single-place traditionWhereas management naturally chose
mechanization to appropriate controlTrist and company suggest that the transition to a composite work
organization in which miners collectively decide how and when to use machines would be more effective
As in the Western Electric studies, little attention is directed to changes in the environment
during the period of observation. Their claim is generalthat machines should not be designed or used
to fragment work or appropriate control but ratherto consolidate the responsible autonomy of the primary
work group, according to Burawoy (1979, 241).
In an era of globalization, what is the ultimate solution to prosperity throughout the world?
Capitalism certainly has gaping holes, but Polanyi believes that there can be a healthy combination of the
two opposite trends of this Washington consensus and of state-regulated markets. There are certain
parameters within which states can be enforced, and of how markets function; it is through individual
actors or societal forces, not through institutions. Corporate institutions especially are how business is
conducted daily throughout the world but societal forces shape these decisions. Firms drive needs for
global trade, but society within states promotes market changes. A state will keep functioning even if it has
no money because a state itself creates policies and can borrow if they have problems; the government is
not a corporate entity but runs a country. States promote more open trade amongst nations because firms
wish to establish business relationships in other countries, but only because societal forces encourage or
discourage these. Firms technically run the markets, but ultimately people, through the governments, are
asserts, who determine, through such reforms as Social Security and the National Labor Relations Act, that
"society would decide through democratic means to protect individuals and nature from certain economic
dangers," cites Polanyi (2001, XXXVI).
One of the prevailing trends today is deregulation of international trade through
lowering of tariffs, fewer export taxes, and other forms of reducing protectionism. Polanyi strongly asserts
that institutionalizing capitalism is the worst alternative but expanding society's role in it is the key to
finding the balance between extremes of capitalism and state-dominated markets. Favoring a complete
change would not help in the search for equality, especially in Eastern Europe after Communisms demise:
The euphoria that accompanied the fall of communism has given way to disappointment, social
anomie, and the emergence of new dangers. The unity of the great mass rallies for democracy has
shattered, and wide-ranging economic hardship has overshadowed political gain for most citizens. Instead
of civil societies, one sees a splintered landscape teeming with corporatisms and resurgent communal
there to set the guidelines and enforce the rules on how business is conducted. People are the ones, Polanyi
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loyalties, cites Rupnik (1996, 365).
For stability and balance in a society, one must set forth a system of finding markets that balance each other
and enforce a standard set of international laws based on an international societal consensus. There can be
required mechanisms, in that by lowering trade, these countries agree to do these things to make sure that
certain social ills do not come about. Exploitation is less of a problem if there is a political system willing
to enforce certain rules, like establishing environmental regulations or that there must be a standard for
minimum wage based on various economic indicators, for example. This would at least alleviate some of
the disparities if one calls for international cooperation and standards on markets. Of course, one cannot
resolve all of these societal social ills, but at least having standards and an enforcement mechanism is a
good start. Roosevelt's New Deal reforms helped to address a set of mechanisms in that they "meant that
the U.S. economy continued to be organized around markets and market activity," but also that "a new set
of regulatory mechanisms now made it possible to buffer both human beings and nature from the pressures
of market forces," according to Polanyi (2001, XXXV-XXXVI).
6. Conclusions. A free-market society, then, is not necessarily better than one that is heavily stateinfluenced. Economies with many restrictions do not always provide for efficient ones either. Laissez-faire
economics tends to leave some of the underprivileged with less to work with, and industrialization is not
always the answer. In fact, one realizes that democracy and modernization do not make everything equal in
all societies:
Whatever their theoretical and political differences, both Samuel P. Huntington and Guillermo
ODonnell claim that there is a level beyond which further development actually decreases the
probability that democracy will survive.
Huntington argues that both democracies and
dictatorships become unstable when a country undergoes modernization, which occurs at some
country exhausts the easy stage of import substitution, again at some intermediate level. Our
finding, however, is that there is no income level at which democracies become more fragile than
they were when they were poorer. Only in the Southern Cone countries of Latin America have
authoritarian regimes arisen at the intermediate levels of development. Four out of the nine
transitions to authoritarianism above $3,000 ($6,000 is considered stable in a nation) transpired in
Argentina. Adding Chile and Uruguay, we see that the instances in which democracy fell at
medium levels of development are to a large extent peculiar to the Southern Cone, according to
Przeworski et al. (2001, 169).
Exploitation of industry in the Third World can indeed result from a host country investing heavily with
less need to worry about restrictions, creating more problems and more disparities. Some regulation of
markets is desirable, while free markets must have some enforcement mechanism of rules to address
inequalities and alleviate some of the side effects of market transition. Polanyi was certain that
intermediate level of development. ODonnell, in turn, claims that democracies tend to die when a
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collaboration between "governments would produce a set of agreements to facilitate high levels of
international trade, but societies would have multiple means to buffer themselves from the pressure of the
global economy," cites Polanyi (2001, XXXVI). Globalization continues to reduce barriers, but
deregulation with respect to following set policies uniformly throughout the world can help to benefit
people of all incomes more equally. Dispersing institutionalization of capitalism and promoting societal
factors can come with market reforms in addressing a healthy balance, and so striking the even scale is
perhaps most effective.
Acknowledgements. I would like to thank my old professor at Georgia Tech, Dr. Vicki Birchfield, for
inspiring me to write this article. Without her input, I would not have written this or considered presenting
it at a conference for possible future publication.
REFERENCES
[1]
V. Birchfield (2005), Jos Bov and the Globalisation Countermovement in France and Beyond:
A Polanyian Interpretation, Review of International Studie, vol. 31, no. 3, pp. 581-598.
[2]
J. Bodnar (1998), Assembling the Square: Social Transformation in Public Space and the Broken
Mirage of the Second Economy in Postsocialist Budapest, Slavic Review, vol. 57, no. 3, pp. 489515.
[3]
M. Burawoy (1979), The Anthropology of Industrial Work, Annual Review of Anthropology,

vol. 8, pp. 231-266.
[4]
K. Polanyi (2001), The Great Transformation, Beacon Press, Boston, MA, USA.
[5]
A. Przeworski, M. Alavarez, J. A. Cheibub, and F. Limongi (1996), What Makes Democracies
[6]
J. Rupnik (1996), The Post-Totalitarian Blues, in The Global Resurgence of Democracy, eds. L.
Diamond and M. F. Plattner, Johns Hopkins University Press, Baltimore, MD, USA, pp. 364-378.
[7]
L. Sklair (1992), The Maquilas in Mexico: A Global Perspective, Bulletin of Latin American
Research, vol. 11, no. 1, pp. 91-107.
[8]
T. Waters (2000), The Persistence of Subsistence and the Limits to Development Studies: The
Challenge of Tanzania, Africa: Journal of the International African Institute, vol. 70, no. 4, pp.
614-652.
Endure? Journal of Democracy, vol. 7.1, pp. 39-55.
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A EFFECTIVENESS OF TECHNICAL INDICATORS - A STUDY ON CNX IT INDICES

K.Prabhakaran1 and S.Nagarajan2
1
2
Assistant Professor, RVS Faculty of Management, Coimbatore, Tamilnadu, India.
Assistant Professor, Maharaja Prithvi Engineering College, Coimbatore, Tamilnadu, India.
ABSTRACT: There are numerous technical tools available to predict future trend of index prices. All tools
may not be effective for all the companies and at all times. The purpose of this study is to find out the
effectiveness of technical tools in predicting the index price movement. The research is based on secondary
data collected from various websites. The data is collected for two different time periods representing the
bullish and bearish seasons. The technical indicators taken for the study are Relative Strength Index (RSI),
Money Flow Index (MFI) and On Balance Volume (OBV). From the study it is found that Relative
Strength Index, Money Flow Index and On Bonus Volume are effective in predicting the index movement
CNX IT during the Bullish period and during the Bearish period, Stochastic Oscillator is deemed effective.
Key words: Technical Analysis, MFI, RSI, OBV
INTRODUCTION
Technical analysis is a method of evaluating securities by analyzing statistics generated by market
activity, past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value;
instead they look at stock charts for patterns and indicators that will determine a stock's future performance.
Technical analysis has become increasingly popular over the past several years, as more and more people
believe that the historical performance of a stock is a strong indication of future performance. The use of
People using fundamental analysis have always looked at the past performance of companies by
comparing fiscal data from previous quarters and years to determine future growth. The difference lies in
the technical analyst's belief that securities move according to very predictable trends and patterns. These
trends continue until something happens to change the trend, and until this change occurs, price levels are
predictable.
There are many instances of investors successfully trading a security using only their knowledge
of the security's chart, without even understanding what the company does. However, although technical
analysis is a terrific tool, most agree it is much more effective when used in combination with fundamental
analysis. The methods used to analyze and predict the performance of a company's stock fall into two broad
categories: fundamental and technical analysis. Those who use technical analysis look for peaks, bottoms,
trends, patterns and other factors affecting a stock's price movement and then make buy/sell decisions
based on those factors. It is a technique many people attempt, but few are truly successful at it.
past performance should come as no surprise.
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The world of technical analysis is huge today. There are literally hundreds of different patterns
and indicators that investors claim to have success with. We have tried to keep this tutorial as short as
possible. Our goal is to introduce you to the different types of stock charts and the various technical
analysis tools available to investors.
Indian Stock Exchanges are a structured marketplace for the proper conduct of trading in company
stocks and other securities. There are 24 Recognized Stock Exchanges in India, including the Over the
Counter Exchange of India for providing trading access to small and new companies. The main services of
the India Stock Exchanges all over the country are to provide nation-wide services to investors and to
facilitate the issue and redemption of securities and other financial instruments.
HISTORY OF THE STOCK EXCHANGE
The working of Stock Exchanges in India started in 1875. BSE is the oldest stock market in India.
The history of Indian stock trading starts with 318 persons taking membership in Native Share and Stock
Brokers Association, which we now know by the name Bombay Stock Exchange or BSE in short. In 1965,
BSE got permanent recognition from the Government of India.
INDEX PARAMETERS
The 30 stock Sensitive Index or SENSEX was first compiled in 1986. The SENSEX is compiled
based on the performance of the stocks of 30 financially sound benchmark companies. The NIFTY is
compiled based on the performance of the stock of 50 financially sound benchmark companies.
INTRODUCTION OF SEBI
To prevent frauds, the Government formed The Securities and Exchange Board of India, through
an Act in 1992. SEBI is the statutory body that controls and regulates the functioning of stock exchanges,
brokers, sub-brokers, portfolio managers investment advisors etc. SEBI oblige several rigid measures to
protect the interest of investors. Now with the inception of online trading and daily settlements the chances
CNX IT INDEX
Information Technology (IT) industry has played a major role in the Indian Economy during the
last few years. A number of large, profitable Indian companies today belong to the IT sector and a great
deal of investment interest is now focused on the IT sector. In order to have a good benchmark of the
Indian IT sector, IISL has developed the CNX IT sector index. CNX IT provides investors and market
intermediaries with an appropriate benchmark that captures the performance of the IT segment of the
market.
for a fraud is nil, says top officials of SEBI.
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CHART NO - 1
PERFORMANCE OF CNX IT INDEX
CNX IT
30000
PERFORMANCE
25000
20000
15000
10000
5000
9/1/2011
3/1/2011
9/1/2010
3/1/2010
9/1/2009
3/1/2009
9/1/2008
3/1/2008
9/1/2007
3/1/2007
9/1/2006
3/1/2006
9/1/2005
3/1/2005
9/1/2004
3/1/2004
9/1/2003
YEAR
STATEMENT OF THE PROBLEM

Several investors have gained as well as lost in the stock market. One way to determine the stock
price is fundamental analysis, which in turn is composed of economy, industry and company. The other
way is technical analysis, which says that the past trends will repeat in the future.
The question that arises here is how market index moving whether towards efficient or inefficient.
So that losses and gains can be estimated with the movement of the market index.
REVIEW OF LITERATURE
Vinothini, (2007) this study is made to find out Risk Perception and Portfolio Management of
Equity Investors. The study reveals that the investors in Erode are not aware of portfolio which would
understanding about risk and the importance of portfolio management as they are not aware of the portfolio
management proper steps to be taken in order to improve the awareness level in the minds of the investors.
Venkataraman (2008) suggests that Price movements do not only depend wholly in Technical
Analysis. Fundamental factors also affect the commodity market price. So, each and every investor should
think about their selling and buying the product before the investment. Day to day prices changes in
Government policies also affect the market prices. Political stability, war, depression / boom of the
economic condition will affect the market. In India, commodity market growth have been increasing day by
day awareness spread out throughout the country now ignorance of the commodity market slightly removed
by the government policies.
minimize risk and maximize the return. And also it is clear that the investors in erode have low level of
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Technical Indicators
Practitioners reliance on technical analysis is well documented. Frankel and Froot (1990a) noted
that market professionals tend to include technical analysis in forecasting the market. There is also a shift
away from the fundamentals to technical analysis in the 1980s, according to a survey done by Euro money
(see Frankel and Froot, 1990a). On a market level, the prevalence of technical analysis is demonstrated by
the fact that most real time financial information services, like Reuters and Telerate, provide detailed,
comprehensive and up-to-date technical analysis information. It is obvious that the frequent upgrading of
technical analysis services is a response to the demand for technical analysis services and competition
among the financial information service providers.
OBJECTIVES OF THE STUDY
To gain knowledge of the equity market and the instruments being traded in Indian stock market.
To analysis the index price movement of CNX IT.
To find out this is a suitable level to entry and exit the trade in CNX IT indices.
SOURCES OF DATA
The data employed in the study consists of Monthly indices CNX IT for the period January 2007 to
December 2011. The prices used are Monthly Open, High and Close prices. These data will be collected
from National Stock Exchange website.
PERIOD OF THE STUDY

The period of data is from January 2007 To October 2011 - (For the past 05 Years).
TOOLS USED FOR THE ANALYSIS
The following tools were used to analyze the data
2) Money Flow Index (MFI)

3) On Balance Volume (OBV)
1) RELATIVE STRENGTH INDEX (RSI)
The RSI (Relative Strength Index) is one of the most popular momentum oscillators in
Technical Analysis use today. It was introduced in a 1978 book by J. Welles Wilder. RSI helps to signal
overbought and oversold conditions in a security. The indicator is plotted in a range between zero and 100.
A reading above 70 is used to suggest that a security is overbought, while a reading below 30 is used to
suggest that it is oversold. This indicator helps traders to identify whether a securitys price has been
unreasonably pushed to current levels and whether a reversal may be on the way.
The standard calculation for RSI uses 14 trading days as the basis, which can be adjusted to
meet the needs of the user. If the trading period is adjusted to use fewer days, the RSI will be more volatile
and will be used for shorter term trades.
1) Relative Strength Index (RSI)
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FORMULA
100
RSI
100 ---------1 + RS
Average Gain
Total Gains / n
Average Loss
Total Loss / n
Average Gain
First RS
---------------------Average Loss
(n=number of periods taken)

When the average gain is greater than the average loss, the RSI rises because RS will be greater
than 1. Conversely, when the average loss is greater than average gain, the RSI declaims because RS will
be less than 1. Note: if the average loss ever becomes zero, RSI become 100 by definition.
OVER BOUGHT / OVER SOLD ZONES
Wilder recommended using 70 and 30 and overbought and over sold levels respectively. If the RSI
rises above 30 it is considered bullish for the underlying stock. If the RSI falls below 70 it is a bearish
signal. Basically, the RSI is a measure of the strength of a recent trend:
RSI is considered strongly bullish if the 14-day RSI exceeds 70 this means the security has
trended up strongly over the past 14 days. Some would consider the security to be overbought at
these levels, and a potential selling point might thus be reached when the RSI exceeds 70;
If the 14-day RSI is between 50 and 70, the security has moved up over the past 14 days; however,
the uptrend has not been very pronounced;
If the 14-day RSI is between 30 and 50, the security has moved down over the past 14 days;
If the 14-day RSI is below 30, the security has trended strongly lower over the past 14 days and
the RSI is considered strongly bearish. Some would consider the security to be oversold at these
levels, and an RSI reading below 30 might thus mark a potential buying point.
2) MONEY FLOW INDEX (MFI)

Money flow index was discovered by Created by Gene Quong and Avrum Soudack. Money flow
is positive when the typical price rises. This is due to buying pressure. A ratio of positive and negative
money flow is then plugged into an RSI formula to create an oscillator that moves between zero and one
hundred. As a momentum oscillator tied to volume the money flow index (MFI) is best suited to identify
reversals and price extremes with a variety of signals.
FORMULA
Money Flow Index = 100 - (100/ (1 + Money Ratio))
however, the downtrend has not been very strong;
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3) ON BALANCE VOLUME (OBV)
On Balance Volume (OBV) measures buying and selling pressure as a cumulative indicator that
adds volume on up days and subtracts volume on down days. OBV was developed by Joe Granville and
introduced in his 1963 book, Granville's New Key to Stock Market Profits. It was one of the first indicators
to measure positive and negative volume flow. Chartists can look for divergences between OBV and price
to predict price movements or use OBV to confirm price trends.
FORMULA
If the closing price is above the prior close price then:

Current OBV = Previous OBV + Current Volume
If the closing price is below the prior close price then:
Current OBV = Previous OBV - Current Volume
If the closing prices equals the prior close price then:
Current OBV = Previous OBV (no change)
DATA ANALYSIS AND INTERPRETATION
TABLE NO-1
High
5626.95
5347.75
5218.45
5429.55
5257
5203.1
5094.25
4820.1
4882.85
4833.25
4452.4
4860.95
3914.9
4060.4
3855.3
4414.45
4704.35
4067.15
3819.25
3931.6
3192.25
2802.25
Low
5517.95
5066.65
5155.7
5275.15
5193.85
5165.85
5015.45
4768.2
4769.45
4759.45
4303.3
4778.95
3776.75
3932.65
3650.8
4284.5
4543.15
3977.75
3732.45
3827
2902.1
2585.7
Close
5535
5129.6
5180.7
5418.4
5218.35
5192.3
5086.7
4813.2
4804.2
4793.65
4431.15
4812.6
3838.15
3984.5
3704.95
4357.65
4688.35
3999.4
3752.85
3926.8
3107.05
2686.95
MFI
RSI
47.76814
48.49776
54.32169
47.26411
48.20649
46.8955
52.68257
52.25253
14 Days RSI
Open
5597.5
5301.75
5195.3
5276.05
5193.85
5169.5
5083.85
4775.55
4790.65
4828.35
4303.3
4833.1
3850.45
4055.25
3808.65
4330.35
4592.4
4016.75
3819.25
3827
2974.5
2585.7
14 Days MFI
Date
31-Jan-07
28-Feb-07
30-Mar-07
30-Apr-07
31-May-07
29-Jun-07
31-Jul-07
31-Aug-07
28-Sep-07
31-Oct-07
30-Nov-07
31-Dec-07
31-Jan-08
29-Feb-08
31-Mar-08
30-Apr-08
30-May-08
30-Jun-08
31-Jul-08
29-Aug-08
30-Sep-08
31-Oct-08
97.84366
95.52681
94.72053
96.44708
96.50064
96.08052
96.82001
96.93858
OBV
12055
33835
24665
37675
54534
40906
32063
23747
37254
58105
46013
37263
57679
50163
63073
86057
68735
56640
76224
64590
86260
64613
RELATIVE STRENGTH INDEX OF CNX IT INDEX
16
28-Nov-08
2322.2
2466.9
2322.2
2449.95
47.59206
31-Dec-08
2215.6
2222.65
2170
2187
54.31414
30-Jan-09
2187.35
2233.8
2167.8
2225.75
49.99398
27-Feb-09
2104.8
2105.6
2042.25
2094.1
49.47044
31-Mar-09
2296
2335.6
2280.25
2318.7
47.02449
29-Apr-09
2650.2
2781.6
2650.2
2770.85
58.10048
29-May-09
3138.6
3217.55
3121.5
3206.2
57.32987
30-Jun-09
3515.05
3552.05
3480.5
3497.65
48.73239
31-Jul-09
4334.7
4374.55
4284.25
4330.05
63.645
31-Aug-09
4644.05
4649.95
4602.75
4618.35
59.40369
30-Sep-09
5043.9
5141.55
5043.9
5122.1
58.66704
30-Oct-09
5112.25
5192.3
4978.15
5048.8
63.97176
30-Nov-09
5315.8
5397.5
5309.6
5364.2
51.68352
31-Dec-09
5797.15
5843.2
5797.15
5818.4
53.90732
29-Jan-10
5554.85
5619.45
5423.45
5594.15
56.41774
26-Feb-10
5787.3
5832
5724.8
5766.7
48.49711
31-Mar-10
5947.6
5967.55
5842.3
5855.95
53.31748
30-Apr-10
5947.85
6021.75
5914.7
5985.8
55.03691
31-May-10
5852.35
5852.35
5704.2
5761.95
54.48987
30-Jun-10
5877.8
5949.6
5837
5928.3
47.31266
30-Jul-10
6139.25
6144.25
6045.6
6086.85
45.69129
31-Aug-10
5936.5
5987.8
5908.7
5974.9
47.62237
30-Sep-10
6583.75
6645.55
6532.15
6613.4
39.53223
29-Oct-10
6666.45
6666.45
6554.4
6613.25
39.41648
30-Nov-10
6645
6745.65
6602.95
6703.6
48.00793
31-Dec-10
7484.8
7511.05
7436.15
7491.1
39.93218
31-Jan-11
6990.75
6995.1
6884.9
6971.25
50.53283
28-Feb-11
6688.55
6918.7
6628.05
6666.3
49.56581
31-Mar-11
7021.45
7192.35
7021.45
7148.1
49.99468
29-Apr-11
6722.8
6752.1
6680.65
6718.35
47.01354
31-May-11
6533.45
6604.4
6525.1
6538.5
48.71936
30-Jun-11
6579.05
6640.5
6558.95
6624.7
59.04396
29-Jul-11
6293.65
6356.5
6264.75
6335.1
53.73563
30-Aug-11
5407.65
5474.85
5325.45
5451.25
51.76985
30-Sep-11
5709
5771.3
5658.75
5678.9
51.99527
31-Oct-11
6271.2
6333.85
6261.25
6278.7
51.94205
30-Nov-11
5814.9
5924.15
5803.45
5893.25
51.13757
30-Dec-11
6126.55
6171.55
6115.85
6139
50.13163
Note:Bolded items in the table indicate Over Bought Zones of RSI and MFI.
97.10638
97.27191
96.96144
97.69322
96.50041
95.84585
94.45218
95.27946
94.1344
91.54974
88.99256
89.87646
82.32216
72.00756
71.63816
59.98183
59.68098
49.85907
64.80325
66.49026
68.21004
74.02964
75.2478
77.13918
80.01624
72.3152
84.91054
89.67345
85.68589
89.75318
90.9945
91.14056
91.43062
94.43756
94.276
92.61411
94.85465
94.32969
45507
108890
84857
67125
88878
128481
91459
66224
121581
85655
50338
93710
76696
96786
122825
102392
86208
102913
121220
108234
97216
86851
107673
98630
122187
108568
122392
139159
159432
146204
133507
164744
140491
122017
105643
91761
117658
107221
April-June, 2012
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CHART NO -2
RELATIVE STRENGTH INDEX OF CNX IT INDEX
RELATIVE STRENGTH INDEX

120
100
RSI
80
60
RSI
40
20
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
Jun-08
Mar-08
YEAR
CHART NO - 3
MONEY FLOW INDEX OF CNX IT INDEX
YEAR
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
Jun-08
MFI
70
60
50
40
30
20
10
0
Mar-08
MFI
MONEY FLOW INDEX
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CHART NO 4
ON BALANCE VOLUME OF CNX IT INDEX
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
High 3
OBV
High 1
High 2
Ja
nM 07
ay
Se 07
p0
Ja 7
nM 08
ay
-0
Se 8
p0
Ja 8
nM 09
ay
-0
Se 9
p0
Ja 9
nM 10
ay
Se 10
p1
Ja 0
nM 11
ay
-1
Se 1
p11
OBV
ON BALANCE VOLUME
YEAR
INTERPRETATION
RSI is considered strongly bullish in this study because it exceeds 70 mark levels in maximum
cases. This means the security has trended up strongly over the past 14 days. RSI is between 50 and 70
indicates that the security has not been hold uptrend. MFI is considered that the security moves with normal
ups and downs in 14 days MFI because the researcher could not able to find overbought zones and oversold
explain through high 1, high 2 (higher high), high 3 (higher high) and More buying pressure will increase
the volume that will automatically leads to increase the OBV. This is also applicable for lower lows.
FINDINGS
RSI shown maximum bullish in this research due to buying pressure.
RSI is below 30, the security has trended strongly lower over the past 14 days and the RSI is
considered strongly bearish. But in this research the researcher could not able to find oversold
zones.
MFI is clearly shown that there is normal buying pressures because the research could not able to
find overbought zones.
The higher highs depicted bullish signals. OBI is also holding more highs and higher highs.
zones too. A rising OBV reflects positive volume pressure that can lead to higher prices. That can be
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This bearish difference warned stock traders that the recent price increases were lacking strong
commitment by buyers.
CONCLUSION
This study concentrated on tools such as RSI, MFI, and OBV used to find the bullish and bearish
signals. This study is to focus the forecasting of future price movements based on an examination of past
price movements. Based on the finding from this study, the researcher would say that CNX IT indices
having more bullish signals compare with bearish signals. The Investors having an option to do trading in
CNX IT and It would provide opportunities to test bullish growth. But Technical Analysis does not give
absolute predictions about the future. Instead it can be used as an anticipatory tool.
REFERENCES
[1] BallaV.K -Investment Management (Security Analysis and Portfolio Management), (11th Edition,
Tata McGraw-Hill Publication, New Delhi).
[2] Punithavathy Pandian -Security Analysis and Portfolio Management, (Vikas Publishing House Pvt
Ltd.,).
[3] Prasanna Chandra- Investment Analysis and Portfolio Management, (2nd Edition, Tata McGrawHill Publication, New Delhi).
[4] Preethi Singh,-Investment Management (Security Analysis and Portfolio Management), (14 th
Edition, Himalaya Publishing House, Mumbai).
[5] Raman. V.N.S Investment principles and techniques (2nd Edition, Vikas Publishing House,
New Delhi )
th
[6] Robert D. Edwards, John Magee Technical analysis of stock trends, 8 Edition.
[1] http://www.nseindia.com/
[2] http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators
[3] http://en.wikipedia.org/wiki/Money_flow_index
[4] http://www.investopedia.com/terms/o/onbalancevolume.asp
WEBSITES
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A STUDY ON HR ISSUES IN RETAIL OUTLETS IN COIMBATORE

M.G.Saravanaraj1, S.Arulsenthilkumar2 and N.Punitha3
1
Professor & Head /MBA, Muthayammal Engineering College- Rasipuram.

2
Research scholar, Manonmaniam Sundaranar University, Tirunelveli.

3
Executive Development, FEDUNI, Coimbatore.
ABSTRACT: Although retailing is a one of the very emerging fast growing sector in our country, Now
massive retail stores has been functioning in the nook and corner of the all across the areas for fulfilling the
customer needs under one roof Now, various well reputed organizations are very clear to setting up shop in
India; they have a passion to be closer to the customer. At this time when the countrys retail business is
going through a transformation, there is a Compelling need for those involved in retailing and those who
wish to be involved to understand this phenomenon systematically so that they can practice it perfectly.
However one of the most problematic parts in the retail industry is that of acquiring, developing and
retaining the personnel involved in the business of retail. This article has been undertaken to identify the
pertinent HR issues faced in the retail sector, with a focus on retail outlets in Coimbatore. In this Study, a
foundation to the aspect of retailing has been given, which includes Retailing in the global and Indian
scenario, retail formats, etc. Then primary data has been collected with the help of a questionnaire, with the
help of which the HR issues involved in retail have been identified. In the end suggestions and
recommendations have been provided.
Introduction to Retailing
The word retail is derived from the French word retaillier, meaning to cut a piece Off or to break
bulk. In simple words, it implies a first hand transaction with the Customer. Retailing involves a direct
contact with the customer and the co-ordination of business activities from end to end right from the
concept and design stage of a product to its delivery or after delivery service to the customer. The industry
has contributed to the financial growth of more countries and is clearly one of the very fastest growing,
dynamic and wide scope industries in the world today.
Retail stores serve as communication hubs for customers and sellers commonly known as the Point of Sale
(POS) or the Point of Purchase (POP), retail stores transmit information to the Customers through
advertisements and displays. Hence the role of retailing in the Marketing mix can play a significant role to
promote the retail strategy much better to the market. Retailing that has made a significant contribution to
Key words: Retail Transformation, Global Retail scenario, Employee Retention
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the economic prosperity that we so much enjoy. Retailing is also responsible for matching individual
demands of the consumer with supplies of all manufacturers. The nations that have enjoyed the greatest
economic and social progress have been those with a strong retail sector.
.
Retailing Scenario Global
Retailing in more developed countries is big business and better organized than what it is in India.
According to a report published by McKinsey & Co. along with the Confederation of the Indian Industry
the global retail business is worth a staggering US$ 6.6 trillion.In the developed world, most of it is
accounted for by the organized retail sector. For Instance, the organized retail sector has gone upto 80%
share of retail sales in the United States. The corresponding figure for Western Europe is 70% whilst it is
50% in Malaysia and Thailand, 40% in Brazil and Argentina, 35% in Philippines, 25% in Indonesia and
15% in South Korea. In China it remains a paltry 10%.
On the Global Retail Stage, little has remained the same over the last decade. The global Economy has
changed, consumer demand has shifted, and retailers operating systems today are infused with far more
technology than was the case six years ago. Saturated home markets, fierce competition and restrictive
legislation have relentlessly pushed major food retailers into the globalization mode. Since the mid-1990s,
numerous governments have opened up their economies as well, to the free markets and foreign investment
that has been a plus for many a retailer. However, a more near-term concern has been the global economic
slowdown that has resulted from dramatic cutback in Corporate IT and other types of capital spending.
Consumers themselves have become much more price sensitive and conservative in their buying,
particularly in the more advanced economies.
accompanied by the development of retail names as brands in their own right. Discount retailer Walmart
has catapulted to the top of the Fortune 500 rankings in the U.S. ahead even of oil major Exxon Mobil and
the mammoth manufacturing giant General Electric. A relentless policy, of, Always Low prices. Always.
has brought Walmart to the top.
Walmart and Nordstrom in the U.S. and Sainsburys and Marks & Spencer in the U.K. Have grown by
rapid geographic expansion in their own countries. Specialists like Benetton of Italy and IKEA of Sweden
and The Body Shop of the UK are international and the fast food chains like McDonalds and Pizza Hut are
everywhere. The same Products are increasingly available from the same names on every continent.
Retailers Worldwide have immensely benefited from the sustained growth of the disposable income of their
global consumers.
The growth of multiple chain retailers has been ruthless for many years in the west and this has been
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The service sector accounts for a large share of GDP in most developed economies. The retail sector forms
a very strong component of the service sector. Hence, the Employment opportunity offered by the industry
is immense. According to the US Department of Labor, about 22 million Americans are employed in the
retailing industry in more than 2 million retail stores. As long as people need to buy, retail will generate
employment. Globally, retailing is customer centric with an emphasis on innovation in products, processes
and services. In short, the customer is King!
Retailing Scenario India:

The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized
sectors, India retail industry is one of the fastest growing industries in India, especially over the last few
years. Though initially, the retail industry in India was mostly unstructured, however with the change of
expectations and preferences of the consumers, the industry is getting more utilizing these days and getting
organized very well. With emerging market demand, the industry is expected to grow at a pace of 25-30%
annually.
In the Indian retailing industry, food is the most important sector and is growing at a rate of 9% annually.
The well reputed food industry is trying to enter the India retail market and transform Indian consumers to
well equipped branded food. Since at present 60% of the Indian grocery basket consists of non- branded
items. India has the largest population in the world. Most of them are independent and contribute as much
as 96% in total retail sales. Because of the decreasing number of nuclear families, working women, greater
work pressure, Migrating to cities, increased commuting time and convenience has become a priority for
Indian consumers. They want everything under one roof for easy accessibility and induce to know better of
every things their choice. This offers an excellent opportunity for organized retailers in the country who
This figure is equivalent to the turnover of one single US based retail chain, Wal-Mart.
Growth of Indian Retail
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail
industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion
and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in
India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has
further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the
current size of US$ 7.5 billion.
The growth and development of organized retailing in India is driven by two main factors Lower prices and
benefits the consumers cant resist. At the US India Business Summit in collaboration with Price water
house Coopers the following details were Released India is rapidly evolving into a competitive market with
amount for just 2% of the estimated US $180 billion worth of goods that are retailed in India every year.
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potential target consumers in the niche and middle class segments. The market trends indicate fabulous
growth opportunities. Global majors too are showing keen interest in the Indian retail market.
Over the years, international brands like Marks & Spencer, Samsonite, Lacoste, McDonalds, Swarovski,
and Dominos among a host of others have come into India through the franchise route following the
relaxation of FDI. Large Indian companies like the Tata, Goenka, Aditya birla, reliance, pantaloon, RPG
Group and Piramal groups are investing heavily in this industry.
Today retailing provides jobs to roughly 15% of employable Indian adults, and is the largest contributor to
Indias GDP after agriculture. The growth potential of the industry is such that in the next ten years nearly
one million new jobs will be created in the organized retail sector alone. (Source: Business Executive (DecJan 2001)).
Considering such opportunities, one needs to take a look at the organizations and Institutes offering retail
education and training in India. At present there are but a few like Institutions offering Retailing courses for
their students this trend has to change, while the first few steps towards sophisticated retailing are being
taken, the biggest task for organized retail organizations is to locate and recruit Qualified, knowledgeable,
skilled and Trained staff to handle their operations.
According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail
industry is the most promising emerging market for investment. In 2007, the retail trade in India had a
share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also
expected to reach 22% by 2010.According to a report by North bride Capita; the India retail industry is
expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the
total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the
The Future of Retail Industry in India
The retail industry in India is currently mounting at a great pace and is expected to go up to US$ 833 billion
by the year 2013. It is further predictable to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As
the country has got a high growth rates, the consumer expenditure has also gone up and is also expected to
go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a
result, the India retail industry is expected to grow further in the future days. By the year 2013, the
organized
sector
is
also
expected
to
grow
at
CAGR
of
40%.
India retail industry is progressing well and for this to continue retailers as well as the Indian government
will have to make a combined effort.
total retail market.
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Review of literature
A review of various literatures available would help in providing me with a better Understanding of the
various information involved in the retail function and their relation to the people oriented nature of the
business.
Source: Vedamani Gibson (2006). Retail Management Functional Principles and Practices. Jaico
Publishing House, Mumbai.
Title: Manpower planning in a department store
Following rapid growth in business volumes, a department store recruited 150 permanent Employees to
cover its working hours from 10:00 a.m. to 8:30 p.m. The store which had an area of 50,000 sq. ft. works
seven days a week. Manpower planning in a free access department store is done according to factors like
sales volumes and value planned per salesperson, floor area covered by a salesperson, number of customers
attended per day, or a combination of these. The idea is to optimize business operating results. The store
has a rush of customers on weekends from Friday to Sunday. Further the store experiences heave sales
during the weekend. In retail, manpower planning takes into account the number of staff needed at different
times of the day. It looks at the possibility of range of shift lengths not exceeding the statutory 8 hours
rather than rigid fixed shifts which would mean employing more people. The store however feels that with
its growing business there are less staff to serve customers, especially during weekends and busy hours.
Efficient manpower planning takes into account the impact of part timers and overtime to meet short term
peaks in demand. It uses weekenders in times of dire necessity. This store has not been following this
practice. The organization also fears that the commitment of such weekenders and part timers would be
very low.
Title: HR factor in retail, largely ignored by Rajendra K Aneja, CEO, Switz Group and former MD,
Unilever, Tanzania
The mood in India these days is "Goodbye, Socialism. Welcome, Sonyism". But the Sudden explosion of
retailing emphasis the principal challenge confronting Indian retailers in the coming decade: staffing
operations and motivating teams. The lacks of formal retailing education further embitter the problem of
recruiting. How should retailers build human relations in retail management? The first ingredient is
infusing a passion for success in employees. If the staff are the
Employees of the company, rather than outsourced from agencies, there will be greater Commitment.
Further, retailers should make every employee a partner through a stock options scheme. A watchman who
knows that he has a stake in the final profits, in the form of a bonus or
a stock option, will ensure zero levels of shrinkage. Remember, businessmen must share their wealth with
those who generate it.
Source: www.rediff.com
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Get the basics right

Retailing is a hard business. It is rigorous. The floor staff stands on its feet for up to nine Hours every day.
The job of the salesperson on the floor is physically exacting and emotionally draining. This is why
changing existing mindsets and motivating personnel will also require Ensuring basic hygiene factors. It is
crucial to provide toilets, restrooms, canteens and Dining areas, as well as recreation rooms to the staff.
Also, in a competent retail organization, each employee should spend at least 10 working days a year in the
classroom. Training of the staff is the best investment in the retail business. Training has to be constant, in
the classroom and on the floors, on a daily basis. Business schools should come together to pioneer a new
curriculum for master's degree in retail management. Next to training is the vital policy of building careers
and promoting people from within the company. Internal progression systems augment loyalty and boosts
morale.
Respect the floors
In a customer service-oriented retail outlet, the supervisory staff, managers, directors or the chairman of the
company will walk the floors. They will also seek advice and customer responses from the staff. As Sam
Walton, the best retailer of our times, once said, "Our best ideas come from the shop floors.
Looks do matter
Retailing is about the staff wearing clean, ironed uniforms. It is about shaving daily, using the right type
and the right amount of deodorant; it is about bright eyes and warm Smiles, about polished shoes, no straps
showing through the uniform and no hairy Armpits. These are fundamental hygiene factors, but they can
make or break a sale. It is a smart Move to recruit the grooming and communications staff from top fivestar hotels to train Retail staff.
Family ties
daily. This is possible when the team spends informal times together. Winning is great fun, becoming rich
is glorious, and it is vital to celebrate success together. If the employees of a retail company dance, sing,
eat, rejoice together, the company stays together.
Opinion the article lays emphasis on the importance of imparting retail education in a bid to groom
individuals and making them more receptive to the idea of pursuing a career in retail. Further it outlines the
need to motivate employees constantly and providing them with adequate facilities. It also states the need
to honor viewpoints and suggestions of the frontline sales staff.
Working in any company should be fun and rejuvenating. The staff should look forward to coming to work
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Objectives of the study
To understand the role and importance of HR in the retail business.
The focus would be to identify the recent HR issues faced by retail organizations.
The objective would also be to develop suitable HR strategies for the prevalent HR
Issues in retail business.
To analyze the employees opinions about the policies of Retail Industry
Research Methodology
Type of research A combination of both exploratory and descriptive research would be Used.
Exploratory research often relies on secondary research such as reviewing available literature and/or data,
or qualitative approaches such as informal discussions with consumers, employees, management or
competitors, and more formal approaches through in-depth interviews, focus groups, etc.
Descriptive research, describes data and characteristics about the population or Phenomenon being studied.
Descriptive research answers the questions who, what, Where, when and how.
Research Method The qualitative and survey method would be used in this study.
Types of data Primary as well as secondary data would be used in the project.
Questionnaires
Interviews
With store employees
With the managerial level personnel in organizations
Research techniques The various techniques used in the research process would be:
Questionnaires
Direct interview
Observational study
Sampling details
Sample size A sample size of 120 would be taken for the survey.
Sample description The sample chosen for the purpose of the research would be the
Frontline sales personnel, managerial personnel and persons associated with apex Industrial bodies.
Sampling
techniques
Random Sampling.
The
sampling
technique
used
in
the
study
would
be
Simple
Data gathering procedure The various techniques adopted for gathering data would be:
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Scope of the study:
The study covers all aspects of identifying the HR issues faced in the retail sector with special
reference to select outlets.
The study covers to know about the retail industry in the aspect Manpower planning.
Limitations of the study:

Time constraint is a limitation in the project as only limited organizations can be contacted.
The credibility of the information shared by the respondents.
Data analysis and Interpretation:
Table 1: Showing opinions about Gender and Job satisfaction
Level of Job Satisfaction
Gender
Total
percentage
15
75
63
22
45
37
57
23
120
100
Low
Medium
High
Male
25
35
Female
15
Total
40
Null Hypothesis (H0)
: There is no significant relationship between gender and level of job
satisfaction.
Alternative Hypothesis (H1) : There is close significant relationship between gender and job satisfaction
CHI - SQUARE TEST
Calculated 2 value
0.102
Degree of Freedom
Table value
5.991
Result
Significant at 5% level
It is found from the above table that calculated value is less than the table value at 2 degree of freedom. So,
Null hypothesis (H0) accepted hence it is concluded that there is no significant relationship between gender
and level of job satisfaction.
Table 2: Showing opinions about Age and working Environment
Sl. No.
Particulars
18 -25
25-35
>35
Total
Percentage
Highly satisfied
11
10
27
23
Satisfied
17
15
36
30
Average
11
24
20
Dissatisfied
19
16
Highly Dissatisfied
14
11
Total
55
45
20
120
100
INFERENCE
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Null Hypothesis (H0) : There is no significant relationship between Age and Working Environment.
Alternative Hypothesis (H1): There is close significant relationship between Age and Working
Environment.
Calculated Chi- Square (2) Value = 1.997
Level Of Significance
= 0.05
Degrees Of Freedom
= 8
Table Value
= 15.507
Inference:It is found from the above table that calculated value is less than the table value So, Null
hypothesis (H0) accepted hence it is concluded that there is no significant relationship between age and
Working Environment.
Table 3: Showing opinions about Age and welfare Facilities

Sl. No.
Particulars
18-25
25-35
>35
Total
Percentage
Highly satisfied
18
15
Satisfied
13
11
31
23
Average
19
17
41
38
Dissatisfied
10
Highly Dissatisfied
10
20
16
Total
55
45
20
120
100
Alternative Hypothesis (H1): There is close significant relationship between Age and Welfare Facilities
Calculated Chi- Square (2) Value = 1.867
= 0.05
Degrees Of Freedom
= 8
Table Value
= 15.507
Inference:It is found from the above table that calculated value is less than the table value at 2 degree of
freedom. So, Null hypothesis (H0) accepted hence it is concluded that there is no significant relationship
between age and Welfare Facilities.
Null Hypothesis (H0) : There is no significant relationship between Age and Welfare Facilities
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Table 4: Showing opinions about Age and Remuneration Facilities
AGE WISE
Sl. No.
Particulars
18-25
25-35
>35
Total
Percentage
Highly satisfied
18
13
38
30%
Satisfied
17
15
40
33
Average
13
12
30
24%
Dissatisfied
11
10%
Highly Dissatisfied
3%
Total
55
45
20
120
100
Null Hypothesis (H0) : There is no significant relationship between Age and Remuneration Facilities
Alternative Hypothesis (H1): There is close significant relationship between Age and Remuneration
Facilities
Calculated Chi- Square (2) Value
= 1.593
= 0.05
Degrees Of Freedom
= 8
Table Value
= 15.507
Inference: It is found from the above table that calculated value is less than the table value So, Null
Remuneration Facilities.
Table 5: Showing opinions about Age and Work time
Sl. No.
Particulars
18-25
25-35
>35
Total
Percentage
Highly satisfied
12
25
21%
Satisfied
29
26
11
66
55%
Average
11
21
18%
Dissatisfied
4%
Highly Dissatisfied
2%
Total
55
45
20
120
100
Null Hypothesis (H0) : There is no significant relationship between Age and Work Time
Alternative Hypothesis (H1): There is close significant relationship between Age and Work Time
AGE WISE
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Calculated Chi- Square (2) Value
= 1.222
= 0.05
Degrees Of Freedom
= 8
Table Value
= 15.507s
Inference: It is found from the above table that calculated value is less than the table value So, Null
Work time
Findings
Male workers are working more in Retail Sector
18 to 25 Age group peoples working more in Retail Sector

Level of Job satisfaction is Average.
23% peoples highly satisfied their working Environment.
15% peoples are highly satisfied their Welfare facilities
38% peoples are averagely satisfied their Welfare facilities
30% peoples are highly satisfied their salary.
Level of salaries at par with other industry.
57 % peoples satisfied their Work time.
Suggestions
Working in a retail sector more so at the frontline level. The job must be given the Due
prominence it deserves and people must be made to understand that they are not merely selling but
With regards to Working Environment and Welfare facilities, which are probably the first of
the HR functions, it must be borne in mind that business forecast and performance standards are
foremost. They are the key areas because without the business forecast you will not be able to
recognize the need for manpower in future and if Performance standards are set then it would be
easy for the employees to work efficiently.
Compensation must be reviewed regularly and employees must be paid at Competitive rates.
Further a certain component of their remuneration must be Merit based so as to motivate them to
perform better.
servicing customers.
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Attrition is a concern in the retail industry. However, by ensuring competitive Pay, well motivated
staff, facilities and benefits, career paths and growth charts, Etc the same could be controlled to a
large extent.
With the advent of several players in the retail sector both Indian and International, the HR
personnel must ensure that employees are motivated, trained to handle their jobs better, paid at
competitive rates, given adequate rest hours to Prevent exhaustion, etc.
Conclusion
Given the nature of business, the frontline sales staff in a retail enterprise are truly the brand ambassadors
of the company i.e. their employer. It is this frontline staffs who is in direct contact with the customer and it
is they who can make or lose a customer. However the role of the middle and top management people are
equally important as it is they who make the frontline staff prepared to handle their job. Recruiting the right
person with the right attitude will determine the success of retailing. Integrity is of paramount importance.
It is also important to reward employees for Achieving better results. Managing personnel in a retail
environment demands unique, specialized skills. Soft skills are required in addition to academic
qualifications. Retail is a dynamic industry and makes a lot of demands on the personnel involved in the
business. Therefore they need intensive training and motivation. The focus should move to being more
meticulous Retail is Detail. Each customer haste be delivered a Moment of Magic and the HR
department has to ensure that retail employees are trained to deliver those Moments of Magic.
Bibliography
[1] Edwin. B. Flippo Principles of Personnel Management, McGraw Hill Kogusha Company
Limited, Tokyo, sixth edition 1998.
edition 1990.
[3] Mamoria C. B. Personnal Management, Himalaya Publishing House, Bombay,4 1992.
[4] Pradhan Swapna (2nd edition). Retailing Management Text and Cases.
[5] Stephen. P. Robbins Organizational Behavior, ninth edition by prentice hall.
[6] Tripathi - Personnal Management and Industrial Relations, Sultan Chand and Sons, New Delhi,
Twelfth Edition 1996
[7] Vedamani Gibson (2006). Retail Management Functional Principles and Practices. Jaico
Publishing House, Mumbai.
[8] http://www.jstor.org
[9] http:// www.workthing.com
[2] Kothari. C.R. Research Methodology Methods and Techniques, Wishwa Prakashan, second
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ANALYSING THE VOLATILITY OF NSE INDICES EMPRICAL STUDY
V.Prabakaran1 and D.Lakshmi Prabha2
1
Assistant Professor/ 2Lecturer, Department of Management, KPR School of Business, Arasur, Coimbatore,
Abstract: Stock market volatility forecasting is an emerging trends financial market, since better
forecasting influence the FII inflows which intern give impact to Indian economy. In this direction, this
paper attempts to analyze the volatility of NSE indices, forecast the index value for the next year and to
suggest the strategies for trading. Statistical tools like correlation test, volatility test and method of least
squares are used to analyze the data, to study the trends in Index flow. The study forecast the Index value
for the next year and found the consistent index among the selected indices.
Keywords: Volatility, NSE Indices, Stock Market Volatility, Forecasting
Introduction
For the past two decades lot of analysis has been done to study the stock market volatility by
academicians as well as practitioners with the use of empirical and theoretical investigations. Experts has
given different methods of analyzing the stock market volatility out of which the simplest method is use
statistical tools like standard deviation or variance of asset returns or indices. There is a model which is
used to analyze the stock market volatility is ARCH/GRACH class of models, which are most extensively
used in finance. In our study we are using the first method; in addition to that we are also using the method
of least squares to forecast the index value for the next year.
Need of the study
listed in it. Stock portfolio is normally compared with the performance of the respective index value where
the index value is used to tract the general performance of the industry.
Objectives
1.
To study the volatility of NSE indices
2.
To forecast the 2012 indices value
3.
To frame the trading strategy in NSE indices
Review of Literature
Abhijit Dutta, has done a study on A Study of the NSE's Volatility for Very Small Period using
Asymmetric GARCH Models. This paper analyzed the Indian Stock Market experiences volatility
clustering and hence GARCH-type models predict the market volatility better than simple volatility
A stock index is a bunch of stock grouped together which indicates the performance of different companies
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models, like historical average, moving average etc. It is also observed that the asymmetric GARCH
models provide better fit than the symmetric GARCH model, confirming the presence of leverage effect.
Takahashi, Katsuyuki, Shoji, Isao conducted a study on An empirical analysis of the volatility of the
Japanese stock price index: a non-parametric approach. The objective of the study analyse the stochastic
features of volatility in the Japanese stock price index, or TOPIX, using high-frequency data sampled every
5 min. The process of TOPIX is modeled by a stochastic differential equation with the time-homogeneous
drift and diffusion coefficients. The result of the estimation suggests that the volatility function shows
similar patterns for one period, but drastically changes for another.
Wessel Marquering and Mamo Verbeek conducted a study on The Economic Value of Predicting Stock
Index Returns and Volatility. The study analyzed the economic value of predicting stock index returns as
well as volatility. Using monthly data, they examined the economic value of a number of alternative trading
strategies over the period 1970-2001. The study found that, the economic value of trading strategies that
employ market timing in returns and volatility exceeds that of strategies that only employ timing in returns.
Most of the profitability of the dynamic strategies, however, is located in the first half of our sample period.
P Srinivasan conducted a study on Modeling and Forecasting the Stock Market Volatility of S&P 500
Index Using GARCH Models. The study attempted at modeling and forecasting the volatility (conditional
variance) of the S&P 500 Index returns of United States stock market, using daily data covering a period
from January 1, 1996 to January 29, 2010. Based on out-of-sample forecasts and a majority of evaluation
measures, the results showed that the symmetric GARCH model does perform better in forecasting
conditional variance of the S&P 500 Index return rather than the asymmetric GARCH models, despite the
Methodology
Descriptive research is used in this study to figure out the volatility of NSE indices in Indian Stock
Market. The secondary data are collected from National Stock Exchange Indices like CNX BANK, CNX
Infrastructure, CNX IT, CNX FMCG, CNX Auto and CNX Pharma. Statistical tools like correlation test,
volatility test and method of least squares are used to analyze the data, to study the trends in Index flow to
forecast the 2011-12 Indices.
presence of leverage effect.
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Analysis & Interpretation
Table No: 01 Statistical study of Banking Sector (CNX Bank)
S.No
Particular
2006-07
2007-08
2008-09
2009-10
2010-11
Opening Value
4724.1
4959.7
6608.1
4211.5
9507.8
Closing Value
5308.5
6655.0
4133.2
9459.6
11705.5
Average Annualized return
-0.3
-0.3
-0.5
-0.1
-0.3
Mean value of CNX Bank
5002.4
7639.8
5430.9
7906.4
10828.5
Beta
2.1
2.0
1.2
2.4
2.9
Standard Deviation
830.7
1485.3
1118.5
1293.4
1108.2
1.0
1.0
0.9
1.0
0.9
Correlation between banking index and
NSE index
Interpretation: From the above table it is clearly inferred that, the annualized average return for analyzed
period is shown a negative value and there is a lowest value exist during the year 2008-09. For the year
2008-09 the index moved 1.2 times of the market movement which shown in the value of beta. The
correlation value shows that, the banking index is almost having perfect positive correlation with the
market movement since the value is almost nearer to 1.
S.No
Particular
2006-07
2007-08
2008-09
2009-10
2010-11
Opening Value
2600.2
2969.4
4204.5
2374.4
3428.9
Closing Value
3099.5
4261.2
2369.3
3422.6
3076.7
Average Annualized Return
-0.3
-0.2
-0.6
-0.2
-0.4
Mean value of CNX Infrastructure
2692.0
4480.5
3111.0
3453.9
3356.2
Beta
1.0
1.2
0.9
0.4
0.4
Standard Deviation
380.4
887.6
770.8
300.1
252.3
1.0
1.0
1.0
0.7
0.5

NSE index
Interpretation: From the above table it is clearly inferred that, the closing value has increased for all the
year except 2008-09 and 2010-11. The Beta value is decreased from 2008-09 to 2010-11 which shows the
movement of CNX index along with the market index and the evidence from standard deviation reflects
less volatility in the Infrastructure Sector during the year 2010-11 compared to all the selected period.
Though the sector shown a negative return throughout the analyzed period, it generated a high mean value
during the year 2007-08 and the return as well.
Table No: 02 Statistical study of Infrastructure Sector (CNX Infrastructure)
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Table No: 03 Statistical study of IT Sector (CNX IT)

S.No
Particular
2006-07
2007-08
2008-09
2009-10
2010-11
Opening Value
4460.5
4940.5
3674.9
2379.8
5984.0
Closing Value
5180.7
3705.0
2318.7
5856.0
7148.1
-0.3
-0.5
-0.6
-0.020
0.1
Mean value of CNX IT
4689.4
4691.4
3191.9
4635.8
6472.2
Beta
1.6
-0.3
1.0
1.9
1.0
Standard Deviation
620.2
520.8
900.3
1117.0
500.0
1.0
-0.5
1.0
0.9
0.7
Correlation between banking index and NSE
index
Interpretation: From the above table it is clearly inferred that, the value of average annualized return for
all the year shown negative value expect the year 2010-11. During the year 2010-11 the mean value
reached the highest among the selected period and the value of standard deviation also reached the lowest
among the selected period which shows the less volatility. The negative value of beta exists during the year
2007-08 which shows the index movement is opposite to market movement.
S.No
Particular
2006-07
2007-08
2008-09
2009-10
2010-11
Opening Value
2835.1
2646.3
2906.3
2176.2
4020.4
Closing Value
2720.3
2928.5
2200.4
4016.9
4535.9
-0.4
-0.3
-0.5
-0.1
-0.3
Mean value of CNX Pharma
2613.9
2799.9
2753.6
3158.9
4450.6
Beta
0.4
0.1
0.6
0.8
0.9
Standard Deviation
203.1
139.4
514.5
507.2
368.3
0.8
0.6
0.9
0.9
0.8

NSE index
Interpretation:From the above table it is clearly inferred that, the mean value did not shown any big
difference during the year 2006-07 to 2008-09 and the average annualized return reached the highest for the
year 2008-09. During the year 2007-08 the value of beta, standard deviation and correlation between the
index and the market showed the lowest value among the selected period. As a whole the beta value
showed that, the index is a defensive index where the value of beta is less than 1 for all the selected period.
Table No: 04 Statistical study of Pharmaceutical Sector (CNX Pharma)
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Table No: 05 Statistical study of FMCG Sector (CNX FMCG)
S.No
Particular
2006-07
2007-08
2008-09
2009-10
2010-11
Opening Value
6036.8
4572.9
5933.7
5117.6
7264.3
Closing Value
4724.8
5817.7
5134.7
7273.3
9188.5
-0.5
-0.3
-0.5
-0.3
0.1
Mean value of CNX FMCG
5249.8
5446.1
5335.2
6580.5
8608.0
Beta
0.2
0.6
0.5
1.2
1.7
Standard Deviation
417.7
469.3
461.7
724.5
688.7
0.2
0.9
0.9
0.9
0.9
Correlation between banking index and NSE
index
Interpretation: From the above table it is clearly inferred that, there is an existence of positive annualized
return only during the year 2010-11. The correlation value is almost perfect correlation for all the year
except the year 2006-07. During the year 2006-07 the value of mean, beta, correlation and standard
deviation showed the lowest value among the selected period which reflects the low volatility of the index
during that period. In the year 2006-07 the value of mean, beta, correlation and standard deviation showed
the highest among the selected period which reflects the high volatility of the index and aggressive
movement of index with respect to market movement during that period.
S.
Particular
2006-07
2007-08
2008-09
2009-10
2010-11
Opening Value
2231.8
1849.2
1860.6
1346.0
3207.0
Closing Value
1970.9
1878.4
1341.9
3206.8
3862.4
-0.4
-0.4
-0.5
-0.03
0.1
Mean value of CNX Auto
2094.7
2055.2
1436.7
2529.2
3683.7
Beta
0.4
0.2
0.4
1.0
0.9
Standard Deviation
164.9
149.0
320.5
542.5
339.9
0.8
0.8
1.0
1.0
1.0
No

NSE index
Interpretation: From the above table it is clearly inferred that, the performance of automobile sector
shown a drastic change during the year 2009-10 & 2010-11 where the values of good positive response
from the average return and the mean value. The volatility of the index is high during the period 2009-10 to
2010-11 which reflects in the high value of standard deviation. In the evident from Beta & Correlation, it is
inferred that the index movement is almost in phase with market movement during 2009 to 2011.
Table No: 06 Statistical study of Automobile Sector (CNX Auto)
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Table No: 07 Trading Strategy for CNX Bank indices
The below table shows the strategies that can be used for trading in index. Passive strategy can be
used by investors who purchase the stock with the intention of long-term capital appreciation and limited
maintenance in which the investors buy a security and typically don't actively attempt to profit from shortterm price fluctuations, where as in active strategy investors will typically look at the price movements of
their stocks many times a day.
Passive
Active Strategy
S.No
Year
Strategy
Buy
Buy
Sell
Sell
Period
Price
period
price
Return
Return
Difference
2006
19.07.06
3428.15
01.12.06
6330.75
84.67
12.40
72.27
2007
02.04.07
4959.65
14.01.08
10698.35
115.71
34.20
81.51
2008
16.07.08
4726.45
11.08.08
6723.20
42.25
-37.50
79.75
2009
01.04.09
4211.45
16.10.09
9526.70
126.21
124.60
1.61
2010
25.05.10
8851.75
05.11.10
13268.7
49.90
23.10
26.80
Interpretation: From the above table it is clearly inferred that, in all the year returns from the active
strategy is dominating the returns from the passive strategy in which buy and sell periods are different
between active strategy and passive strategy. The passive strategy is not suitable for investor where as the
speculator always choose to follow active strategy in which they may look for short term profit only not a
capital appreciation.
Table No: 08 Correlation Matrix
The below table shows the correlation matrix in which the correlation between the selected index are
CNX
Bank
CNX
Infra
CNX IT
CNX
Pharma
CNX
FMCG
CNX
Auto
CNX Bank
CNX Infra
CNX IT
CNX Pharma
CNX FMCG
CNX Auto
1.0
-0.5
1.0
-1.0
-0.7
1.0
-0.7
-1.0
1.0
1.0
-0.5
-0.8
0.1
1.0
1.0
-0.4
-0.2
-0.9
-1.0
-0.7
1.0
measured.
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Interpretation:From the above table it is cleared that, there is an existence of positive perfect correlation
between CNX Pharma & CNX IT sectors and CNX FMCG & CNX Pharma sectors where as positive poor
correlation is present between CNX FMCG & CNX IT. In the other way there is a poor negative correlation
existence between CNX IT & CNX Bank and CNX Auto & CNX IT where as poor negative correlation
exist between CNX Auto & CNX Infra.
Table No: 9 Statistical Study of Expected Value for the year 2011-12
The below table shows the expected value of the selected indices for the period 2011-12. By using
Method of least Squares the expected value is calculated in which period is taken as X and Indices value is
taken as Y. The difference between the actual value and the expected value is calculated and it is listed in
the below table.
Expected Index Value
Indices
Actual Index value
Deviation of actual from expected value

Value
Percentage
CNX Bank
12129.12
10828.50
-1300.62
-12.0
CNX Infra
3539.44
3356.20
-183.24
-5.5
CNX IT
6140.14
6472.20
332.06
5.1
CNX Pharma
4768.34
4450.60
-317.74
-7.1
CNX FMCG
9384.24
8608.00
-776.24
-9.0
CNX Auto
3820.70
3683.70
-137
-3.7
Interpretation: From the above table it is cleared that, the actual value of all the selected indexes is greater
than the expected value except CNX IT, which shows that the market did not move as it predicted. Actual
Index value for CNX IT is greater than expected value which is called as abnormal increment where the
index movement is aggressive than it was predicted.
S.No
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Table No: 10 Calculations for the Volatility Test

The below table shows the consistency performance of the index with the use of Co-efficient of variance
tool and volatility test.
S.No
Period
Co-efficient of variation
CNX Bank
CNX Infra
CNX IT
CNX Pharma
CNX FMCG
CNX Auto
2006-07
0.17
0.14
0.13
0.08
0.08
0.08
2007-08
0.19
0.20
0.11
0.05
0.09
0.07
2008-09
0.21
0.25
0.28
0.19
0.09
0.22
2009-10
0.16
0.09
0.24
0.16
0.11
0.21
2010-11
0.10
0.08
0.08
0.08
0.08
0.09
Average of CV
0.17
0.15
0.17
0.11
0.09
0.14
Standard Deviation
0.04
0.07
0.9
0.06
0.01
0.08
Volatility
0.24
0.49
0.52
0.53
0.14
0.56
Interpretation: From the above table it is cleared that, the volatility of the CNX FMCG is very low
compared to other selected indexes. Since the consistency is measured in terms of volatility, it is inferred
that the consistent of CNX FMCG is very high and CNX Auto having high level of volatility and low
consistent.
CNX FMCG is considered as a consistent performing index among the selected indexes.
By using Method of Least Square this study forecasted the index value for 2011-2012 and it was
found that the abnormal increase exist in CNX IT index in which the actual index value exceeds
expected index value.
The study analyzed the difference between active and passive strategy for trading and suggest the
active strategy for speculators and passive strategy for investors.
Conclusion
It is very important to understand the risk involved in stock market investment for all countries
especially developing country like India. The degree of volatility involved in the stock market may
influence the investors to demand high premium which leads to create portfolio. The degree of volatility
also impedes the flow of FII & DII and disturbs the economic development of a country. This study shows
the level of volatility and consistency level of the indexes in Indian stock market. This study concludes that,
in the bull phase the investor may earn decent return and the bear phases incurred loss. In the bull phases
volatilities were lower than bear phases.
Findings
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Reference
[1] Akgiray, V, "Conditional Heleroskcdaslicily in Time Series of Stock Returns: EvidenL-e and
Horecasls" Journal of Bisness. 62 (198^1, 55-80
[2] Alberg D, Shalit H and Yosef R (2008), Estimating Stock Market Volatility Using Asymmetric
GARCH Models, Applied Financial Economics, Vol. 18, No. 15, pp. 1201-1208
[3] Breen, W,; L. R. Glusten; and R. Jagannathan. ""Pxononiii.- Significiuice of Predictable
Variations In Stock Index Rciumsr Journal of FiiHmce.AA{ [9^^)). 1177-1189.
[4] Brooks, C. and Persand, G. (2003), Volatitlity Forecasting for Risk Management, Journal of
Forecasting, 22, pp. 1-22
[5] Brooks C and Burke S P (1998), Forecasting Exchange Rate Volatility Using Conditional
Variance Models Selected by Information Criteria, Economics Letters, Vol. 61, No. 3, pp. 273278.
[6] Flemitig. J.; C. Kirby: and B. Ostdiek. "The Economic Value of Volatility Timing." Journal of
Finance. 56 (2001). .329-352.
[7] French, K. R.; G. W. Schwert: and R. F. Stambaugh. "Expected Stock Returns and Volalility."
Journal ofEinanciat Economics. 19 (1987), ,3-29.
[8] Glosten, L.R. Jagannathan, R. Runkle, D.E. (1993) On the Relation between the Expected Value
and the Volatility of the Nominal Excess Return on Stocks, Journal of Finance , 48, 17, pp. 79
1801
[9] Glosten L R, Jagannathan R and Runkle D E (1993), On the Relation Between the Expected
Value and the Volatility of the Nominal Excess Return on Stocks, Journal of Finance, Vol. 48,
No. 5, pp. 1779-1801.
GARCH Models, Journal of Forecasting, Vol. 19, No. 6, pp. 499-504.
[11] Karmakar, M. (2005), Modeling Conditional Volatility of the Indian Stock Markets Vikalpa, Vol
30, No3, July- September, pp. 21-37.
[12] Liu W and Morley B (2009), Volatility Forecasting in the Hang Seng Index Using the GARCH
Approach, Asia-Pacific Financial Markets, Vol. 16, No. 1, pp. 51-63.
[10] Gokcan S (2000), Forecasting Volatility of Emerging Stock Markets: Linear Various Non-Linear
41
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THE EFFECT OF DEMOGRAPHICS ON INVESTMENT CHOICE: AN EMPIRICAL STUDY OF

INVESTORS IN RAJASTHAN
Dhiraj Jain1 and Khushboo Ranawat2
1
2
Asst. Professor , Pacific Institute of Management, Udaipur (Rajasthan) , India .
MBA ( II) , Major ( Finance ) , Pacific Institute of Management , Udaipur, (Rajasthan) , India .
ABSTRACT: Different investors have different choices at different stages This paper examines the
association of demographic factors on investment choices. The differences among the different genders
were found to be significant for post office schemes, real estate, gold/commodities and shares/equity. The
chi-square test shows that investors with higher income group prefer to invest in real estate and females
prefer to invest in gold/commodities. The study also reveals that females were conservative while investing
and males were aggressive. Most of the investors consult their family members for taking investing
decision and invest for the period of 3-5 years. Most of the investors invested their money for the safety
and growth of money. There is no association of income, age, gender, occupation on the percentage of
income and investors wants to save for the future requirements, but there is significant relationship between
qualification and percentage of income save for future requirements. But demographic factors does not
effect the investment period. This study shows that there is association of demographic profiles and
personality type of the investors with investment choice.
Key words: Determinants, Investment avenues, investment, savings, portfolio management.
I.
Introduction
options available to the people, the money acts as the driver for growth of the country. Indian financial
scene too presents a plethora of avenues to the investors. Though certainly not the best or deepest of
markets in the world, it has reasonable options for an ordinary man to invest his savings.
One needs to invest and earn return on their idle resources and generate a specified sum of money for a
specific goal in life and make a provision for an uncertain future. One of the important reasons why one
needs to invest wisely is to meet the cost of inflation. Inflation is the rate at which the cost of living
increases.
The cost of living is simply what it cost to buy goods and services you need to live. Inflation causes money
to lose value because it will not buy the same amount of a good or services in the future as it does now or
did in the past. The sooner one starts investing the better. By investing early you allow your investments
more time to grow whereby the concept of compounding increases your income, by accumulating the
principal and the interest or dividend earned on it, year after year.
Investments form an important part of the economy of any nation. With the savings invested in various
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Researchers have emphasized that when investors become aware of their own unique psychology and
demographic features; they can adapt it to market conditions and can make investment decisions. Some
evidence also suggests that factors such as age, income, education and marital status affect an individuals
investment decision. So, it is important to study the relationship between various demographic factors, and
the investment personality exhibited by the investors.
II.
Literature Review
Grable and Lytton (1999) highlighted the role of financial education in determining risk taking, with the
more financially educated participants more likely to take risk. Bajtelsmit and Bernasek (1996)
summarized that women make more conservative decisions with respect to investments. Barber & Odean
( 1999) found that the potential for overconfidence in the valuation of securities may push men to choose
riskier strategies or make them more likely to rebalance away from default investments. Agnew (2003)
studied that men are more likely to own a higher percentage of company stock, generally considered a
riskier strategy because of the lack of diversification with wage variability. Hinz, McCarthy and Turner
(1997) found that the female effect persists after demographic controls showing that men are more likely to
invest in risky assets. Agnew (2003) noted that human capital can and should play a role in investment
decisions, especially when considering company stock as an option. Croson & Gneezy ( 2009) studied the
gender differences in investments and argued that it is womens level of risk aversion that pushes them to
choose the less risky portfolios. Mitchell, Mottola, Utkus, & Yamaguchi( 2006) studied the lack of
attention that investors pay to their investments. They examined, by demographic characteristics, what
groups are more or less likely to rebalance their portfolios. They found that most participants are inattentive
in the oversight of their accounts and that men are more likely to trade. Papke (1998) examined investment
choices using the 1992 NLS of Mature Women showing that there is not a significant gender effect on the
men and women to gauge the relationship between financial literacy and preparedness. Their study shows
that women are less likely than men to be able to answer financial knowledge questions correctly and that
the ability to answer those questions was correlated with a propensity to plan for retirement.
III.
Objective
The main objective of the study is to find out the needs of the current and future investors. For this analysis,
customer perception and awareness level will be measured in important areas such as:
To find out how investors get information about the various financial instruments.
The type of financial instruments, they would prefer to invest.
The duration for which they would prefer to keep their money invested.
To study the dependence/ independence of the demographic factors of the investors and his/her risk
tolerance level.
choice of stock allocation. Lusardi & Mitchell (2007) studied using the 2004 HRS about the responses of
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IV. Data and Methodology
The study is based on the primary data collected from various respondents through a questionnaire. Care
was taken that only those respondents were interacted who were interested in investments. The
questionnaire contained all closed-ended questions. The sampling technique used for selecting the sample
was convenient sampling. A sample of 100 respondents was taken. Chi-square test had been used as the test
for association or non-association of variables. The data has been analyzed using the statistical softwares
and Microsoft Excel.
V.
Hypothesis framed for the study :

H01: There is no association between the demographic determinants and the investment choices made by
the investors.
H02: There is no association between the demographic determinants and the percentage ( % ) of income
saved for the future requirements.
H03: There is no association between the demographic determinants and the appropriate investment
period.
VI. Data Analysis and interpretation

Table I
Demographic Determinants of Respondent In Rajasthan
S.No.
Status
No. of Respondent
Percentage
Male
66
66.0
Female
33
33.0
Total
100
100.0
< 30 years
35
35.0
30-40 years
20
20.0
40-50 years
31
31.0
50-60 years
13
13.0
> 60 years
1.0
Total
100
100.0
Gender
Qualification
1
Post graduate
60
60.0
Graduate
32
32.0
Non-graduate
8.0
Total
100
100.0
Age
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Occupation
1
Professional
19
19.0
Service
31
31.0
Business
29
29.0
Student
20
20.0
Others
1.0
Total
100
100.0
The demographic profile of the respondents influences the investment choices of the people. Therefore the
researcher analyses the demographic profile of the respondents.
Table 1 exhibits the demographic profile of the respondents. It is clear from Table 1 that out of 100
respondents, 66% respondents were male, 33% respondents were female and 1% respondent has not
mention its gender. 35% of respondents belonged to the age of below 30 years, 1 percent of the respondent
were above 60 years, 13% of the respondents were in the age group of 50-60 years, 31% of the respondents
were in the age group of 40-50 years and 20% of the respondents were in the age group of 30-40 years.
60% of the respondents were post graduate. Those who were graduate and non graduate were 32% and 8%
respectively. It can also be inferred that 19% of the respondents were professional, 31% were of service
sector, 29% of the respondents were businessman, 20% were students and 1% of respondent were in the
category of others.
Association between demographics and the investment in various investment avenues
Ho: The is no significant association between demographics ( Income , Occupation , Qualification ,
Gender & age ) and the various Investment Avenues .
Association of Income with Different Investment Avenues

Average income
Less
Fixed Deposits
Rs
Rs
Rs
150000-
300000-
Rs450000-
Than
150000
300000
450000
600000
Rs600000
Yes
10
19
11
49
No
13
12
18
51
23
31
29
12
100
10
22
Total
Post Office
Yes
More
Total
Than
Table II(a)
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No
18
21
24
10
78
23
31
29
12
100
Yes
14
28
No
22
27
15
72
23
31
29
12
100
Yes
13
32
No
16
26
16
68
23
31
29
12
100
Yes
18
38
No
19
24
11
62
23
31
29
12
100
Yes
No
21
30
27
10
91
23
31
29
12
100
Total
Real Estate
Total
Gold/Commodities
Total
Shares/Equity
Total
Others
Total
Chi - square test for income

Post
Real
Deposits
Office
Estate
Gold/Commodity
Shares/Equity
Others
4.157
3.890
21.64
7.619
16.17
8.149
9.488
9.488
9.488
9.488
9.488
9.488
Accepted
Accepted
Rejected
Accepted
Rejected
Accepted
Square
Value(
calculated)
Df
Tabulated
value
Accepted/
Rejected
From the above Table II(a), the results reveal that the differences are not significant for fixed deposits, post
office schemes, gold/commodities and others but were significant for real estate and shares/equity. 4.34%
of the investors in the income group of less than Rs 1.5 lakh and 40% of the investors falling in the high
Chi
Fixed
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income bracket preferred real estate as the investment option. Also, 17.3% of the investors with less income
do not prefer to invest in shares/equity, but 60% of the investors belonging to the high income brackets
invest in the shares/equity.
The result from the Table II(b) shows that the differences is significant for the fixed deposits, post office
schemes, gold/commodities and others, whereas, they are insignificant for real estate and shares/equity. We
can infer that 58.1% of the investors belonging to the service class preferred fixed deposits as the
investment option, whereas only 37.9% and 47.4% of investors belonging to the business and professional
class respectively were preferring fixed deposits as the investment option. We can also infer that 31.5% of
professional, 22.5% of service sector, 17.2% of business sector investors preferred post office schemes as
investment option. Lastly, 36.8% of professional, 41.9% of service sector, 20.6% of business sector
investors preferred gold/commodities as an investment option.
Table II( c )
clearly shows that the difference is significant for the real estate, whereas, they are
insignificant for fixed deposits, post office, gold/commodities, shares/equity and others. 20% of the people
belonging to post graduate class, 46.9% of the people who came under the graduate category and 12.5% of
the people belonging to non graduate category preferred real estate as investment option.
The Table II( d ) reveals that the differences are not significant for fixed deposits and others category.
However, differences were found to be significant for post office, real estate, gold/commodities and
shares/equity. 15% of the males and 33% of the females preferred post office schemes. 41% of the male
and none of the female preferred real estate. In case of gold/commodities, 22.7% of the male and 51.5% of
the females preferred gold/commodities. Also,53% of males and only 9% of the females preferred
shares/equity as investment options. This shows that males mostly like to invest in real estate and
shares/equity, whereas females like to invest in post office schemes and gold/commodities because this are
Table II(b): Association of Occupation with Different Investment Avenues

Occupation
Fixed Deposit
Professional
Service
Business
Student
Others
Yes
18
11
10
49
No
10
13
18
10
51
19
31
29
20
100
Yes
22
No
13
24
24
16
78
19
31
29
20
100
Total
Post Office
Total
more conservative than other investment avenues.
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Real Estate
Yes
19
28
No
18
23
10
20
72
19
31
29
20
100
Yes
13
32
No
12
18
23
15
68
19
31
29
20
100
Yes
17
38
No
11
22
12
16
62
19
31
29
20
100
Yes
No
17
28
27
18
91
19
31
29
20
100
Total
Gold/Commodities
Total
Shares/Equity
Total
Others
Total
Chi-square test for occupation

Fixed
Post
Real
Gold/
Deposits
Office
Estate
Commodities
Calculated value
3.51
1.733
33.360
Df
Tabulated Value
9.488
Accepted / Rejected
Accepted
Others
5.891
9.791
0.351
9.488
9.488
9.488
9.488
9.488
Accepted
Rejected
Accepted
Rejected
Accepted
Level of significance : 5 %
Table II ( c ) Association of Qualification with Different Investment Avenues
Qualification
Non-
Fixed Deposit
Post graduate
Graduate
graduate
Yes
30
15
49
No
30
17
51
60
32
100
11
22
Total
Post Office
Total
Yes
Shares/Equity
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No
49
24
78
60
32
100
Yes
12
15
28
No
48
17
72
60
32
100
Yes
23
32
No
37
23
68
60
32
100
Yes
26
12
38
No
34
20
62
60
32
100
Yes
No
54
29
91
60
32
100
Total
Real Estate
Total
Gold/Commodities
Total
Shares/Equity
Total
Others
Total
Chi-Square test
Fixed
Post
Real
Gold/
Shares/
Deposits
Office
estate
Commodities
Equity
Calculated value
0.85
1.758
8.513
5.092
5.631
0.870
Df
Tabulated value
5.991
5.991
5.991
5.991
5.991
5.991
Accepted/ Rejected
Accepted
Accepted
Rejected
Accepted
Accepted
Accepted
Others
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Table II ( d ) : Association of Gender with Different Investment Avenues

Gender
Fixed Deposit
Male
Female
Yes
31
18
49
No
35
15
51
66
33
100
Yes
10
11
22
No
56
22
78
66
33
100
Yes
27
28
No
39
33
72
66
33
100
Yes
15
17
32
No
51
16
68
66
33
100
Yes
35
38
No
31
30
62
66
33
100
Yes
No
60
30
91
66
33
100
Total
Post Office
Total
Real Estate
Total
Gold/Commodities
Total
Shares/Equity
Total
Others
Total
Total
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Chi-square for gender
Fixed
Post
Real
Gold/
Deposits
Office
Estate
Commodities
Calculated value
1.476
7.819
20.860
Df
Tabulated value
5.991
Accepted/ rejected
Accepted
Shares/Equity
Others
8.854
18.647
0.870
5.991
5.991
5.991
5.991
5.991
Rejected
Rejected
Rejected
Rejected
Accepted
Table II( e )
Association of Age with Different Investment Avenues
Age
40-50
50-60
>
< 30 years
years
years
years
years
Total
Yes
16
19
49
No
19
14
12
51
35
20
31
13
100
Yes
22
No
27
16
24
10
78
35
20
31
13
100
Yes
12
28
No
34
13
19
72
35
20
31
13
100
Yes
12
11
32
No
23
16
20
68
35
20
31
13
100
Yes
10
12
10
38
No
25
21
62
35
20
31
13
100
Yes
No
33
18
27
12
91
35
20
31
13
100
Total
Post Office
Total
Real Estate
Total
Gold/Commodities
Total
Shares/Equity
Total
Others
Total
60
Fixed Deposit
30-40
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Chi-square for Age
Fixed
Post
Real
Deposits
Office
Estate
Gold/Commodities
Shares/Equity
Others
Calculated Value
6.077
0.359
20.867
2.300
7.496
1.188
Df
Tabulated value
9.488
9.488
9.488
9.488
9.488
9.488
Rejected
Accepted
Rejected
Accepted
Accepted
Accepted
Accepted/
Rejected
The Table II (e) brings out the result that the differences are not significant for fixed deposits, post office,
gold/commodities, shares/equity and others. However, differences were found to be significant only for real
estate. With the increase in age, the inclination towards real estate as an investment option increases. As it
can be seen from the table, that only 3% of the investors in the age of below 30 years invested in real estate
and as the age increased from 40-50 years to 50 years and above, the percentage increased from 38.7% to
61.5%.
Table III
Consultant
No. of preferences
Percent
Agent/Broker
18
10.1%
Family Members
60
33.5%
Friends
14
7.8%
Financial Magazines/Newspapers
33
18.4%
Chartered Accountant
15
8.4%
Electronic Media
37
20.7%
Other
1.1%
Total
179
100.0%
The Table 3 infers that 33.5% of the investors preferred to consult their family members and only 7.8% of
the investors consulted their friends. The investors who preferred the agent/brokers, chartered accountant
and electronic media were 10.1%, 8.4% and 20.7% respectively. This type of information can be useful to
the wealth manager. By this, the wealth manager comes to know about the contact person, who can be used
to introduce their investment products to the investors. They also come to know about the effects of the
advertisements of their products on the investors.
While Taking the Investment Decision, Who Does the Investor Consult the Most?
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Table IV
Preference of the Investors with Regard To Time Horizon
Time Horizon Of Investment
No. of Preferences
Percent
Less than 1year
4.0
1-3 years
35
35.0
3-5 years
51
51.0
5-10 years
9.0
More than 10 years
1.0
Total
100
100.0
The Table 4 clearly shows the importance the investors attach to the time horizon of the investment. About
51% of the people agreed to invest for 3 to 5 years and only 35% and 4% of the investors wanted to invest
for 1 to 3 years and less than 1 year respectively. These investors wanted to take short term gains from the
market. Also only 9% and 1% of the investors wanted to invest for 5 to 10 years and more than 10 years
respectively. So, it is quite clear that the risk appetite of the investors in the Rajasthan region is less for the
longer time horizon investment. This information can be used by the portfolio managers for knowing the
preference of the investors with regard to the time horizon.
Table V
Reason Of Investment
No. of Preferences
Percent
Safety Of Money
63
37.3%
Growth
56
33.1%
Liquidity
4.2%
Tax Advantage
33
19.5%
Constant Income
10
5.9%
Total
169
100.0%
Table 5 shows the reason of investing by the investors. Results reveal that about 37.3% and 33.1% : of the
investors invest for safekeeping and growth of money respectively, whereas only 4.2% and 5.9% of the
investors invest for liquidity and constant income. So, the people in Rajasthan region are conservative in
nature and want that their money to be safe. They are not much concerned for the liquidity and constant
income. Also, 19.5% of the investors invest their money for tax advantage. This information can be used by
the portfolio managers for knowing the preferences of the investors in regard to their reason of saving or
investment.
Preference of the Investors With Regard To Their Reason for Investment
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Table VI
Preference of the investors with regard to the percentage of income they feel is sufficient to save for
future requirements
% of Income to be Saved
No. of preferences
Percent
0-15%
20
20.0
15-30%
41
41.0
30-40%
35
35.0
More than 40 %
4.0
Total
100
100.0
From the results revealed in the Table VI, it is clear that most of the investors want to save 15-30% or 3040% of their income for future requirements.
From the Table VII, it is revealed that there is a significant difference between the investors of different
income groups in regard to the percentage of savings they think is appropriate. As the investors whose
income is less than Rs 150000 prefer to save only up to 15%, whereas as the income level of the investors
goes from Rs 150000 to Rs 300000 and Rs 300000 to Rs 450000 their preference for percentage of income
saved increases from 15-30% to 30-40%. So, it is clear that investors falling in the higher income bracket
preferred to save more for future requirement.
H02 : There is no significant association between various demographic factors of the respondents and
the percentage of income saved
Table VII
Association of income with the respect to the percentage of income they saved
Less
Rs
Rs
Than Rs
150000-
300000-
150000
300000
450000
0-15%
14
20
15-30%
19
11
41
30-40%
16
35
23
31
29
12
100
More than 40
%
Total
Chi-square Test
Chi Square Value
52.736
Df
12
Tabulated value
21.026
Rs450000600000
More
Than
Total
Rs600000
income saved
Percentage
of
Average income
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Table VIII
Association of Age with respect to the percentage of income they saved
Age
Percentage
of
income saved
Less Than
30-40
40-50
50-60
More than
30 years
years
years
years
60 years
Total
0-15%
16
20
15-30%
10
16
41
30-40%
10
11
35
> 40 %
35
20
31
13
100
Total
Chi-square Test For Age
Chi-Square Value
27.502
Df
12
Tabulated value
21.026
Interpretation : The Table 8 brings out that there is a significant difference between the age of the
investors of different age group in regard to the percentage of savings they think is appropriate. With the
increase in age, the inclination towards percentage of income saved also increases. It is revealed from the
table that the 45.7% of the investors in the age of less than 30 years saved their income up to 15%, whereas
40% and 51.6% of the investors in the age group of 30-40 years and 40-50 years respectively saved their
income between 15-30%. As the investors of the age group of 30-40 years were active to earn more income
the investors in the age group of 30-40 years prefer to save 30-40% of their income for future requirement.
Table IX
Association of Gender with respect to the percentage of income they saved
saved
income
of
ge
Percenta
Gender
Male
Female
Total
0-15%
14
20
15-30%
28
12
41
30-40%
29
35
so they save more income as compared to investors of other age group. From table it is clear that 50% of
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More than 40 %
Total
66
33
100
Chi-square Test
Chi-Square Value
18.169
Df
Tabulated value
12.592
The Table 9 shows that there is significant difference between the investors of different gender in regard to
the percentage of savings they think is appropriate. It is revealed that the 42.4% and 43.9% of the male
investors prefer to save 15-30% and 30-40% respectively for future
requirement, whereas 42.4% and
36.3% of the female investors prefer to save up to 15% and 15-30% respectively for future requirement.
Table X
Association of Occupation With Respect To the Percentage of Income They Saved
Occupation
Professional
Service
Business
Student
Others
0-15%
10
20
15-30%
16
12
41
30-40%
11
14
35
More than 40 %
19
31
29
20
100
Total
Chi-square For Occupation
Chi-Square Value
30.563
Df
12
Tabulated value
21.026
Table X reveals that there is a significant difference between the investors of different occupation in regard
to the percentage of savings they think is appropriate. As it is clear from the table that the most of the
professional and service sector investor prefer to save 15-30% of income, whereas, most of the
businessman prefers to save 30-40% of income for future requirement. Most of the students, as they do not
earn much save only up to 15% of their income.
Income saved
Percentage
of
Total
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Table XI
Association of Qualification with respect to the percentage of income they saved
Income Saved
Percentage
of
Qualification
Post graduate
Graduate
Non-graduate
Total
0-15%
15
20
15-30%
24
13
41
30-40%
19
12
35
More than 40 %
60
32
100
Total
Chi-square test for Qualification
Chi-Square Value
4.384
Df
Tabulated value
12.592
The Chi-square test in the Table 11 reveals that there is no significant difference between the investors of
different qualification in regard to the percentage of savings they think is appropriate.
Table XII: Association of Age with respect to the appropriate investment period
Age
Less Than
30-40
40-50
50-60
Than
60
30 years
years
years
years
years
Total
Less than 1 year
1-3 years
17
35
3-5 years
15
18
51
5-10 years
More than 10
35
20
31
13
100
years
Total
Chi-square Test for Age
Chi-Square Value
18.517
Df
16
Tabulated Value
26.296
Investment Period
More
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From Table XII it is revealed that the relationship between age and appropriate investment period is
insignificant or there is no relationship between them
Table 13
Association of Gender with respect to the appropriate investment period
Gender
Investment Period
Total
Male
Female
Less than 1year
1-3 years
21
14
35
3-5 years
32
18
51
5-10 years
More Than 10 years
66
33
100
Total
Chi-Square Value
6.381
Df
Tabulated value
15.507
Table 13 shows that the relationship between gender and appropriate investment period is insignificant or
there is no relationship between them.
Table XIV
Association of Income with respect to the appropriate investment period
Average income
Less
Rs
Rs
Than Rs
150000-
300000-
Rs450000-
More Than
150000
300000
450000
600000
Rs600000
Total
Chi-square Test for Gender
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Less
Than
1-3 years
12
10
10
35
3-5 years
18
15
51
5-10 years
More Than 10
23
31
29
12
100
Investment Period
1year
years
Total
Chi-square Test For Income

Calculated value
20.321
Df
16
Tabulated value
26.296
Table XIV shows that there is no relationship between income and appropriate investment period.
Table XV
Association of Occupation with respect to the appropriate investment period
Occupation
Total
Professional
Service
Business
Student
Others
Less than 1 year
1-3 years
10
35
3-5 years
19
15
51
5-10 years
19
31
29
20
100
More
than
10
years
Chi-square Test For Occupation
Investment Period
Total
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Calculated Value
20.204
Df
16
Tabulated value
26.296
According to the result in the Table XV, the relationship between occupation and appropriate investment
period is insignificant or there is no relationship between them.
Table XVI
Association of Qualification with respect to the appropriate investment period
Qualification
Total
Post graduate
Graduate
Non-graduate
Less than 1year
1-3 years
22
35
Investment
3-5 years
30
18
51
Period
5-10 years
60
32
100
More
than
10
years
Total
Value
4.889
Df
Tabulated value
15.507
Table XVI shows that the relationship between qualification and appropriate investment period is
insignificant or there is no relationship between them.
VII.
Conclusion
There is association of demographic profiles and personality type of the investors with investment choice.
The differences among the different genders were found to be significant for post office schemes, real
estate, gold/commodities and shares/equity. The females were conservative while investing, whereas males
were aggressive. The investors in the lower income groups did not prefer real estate as an investment
option, but the investors in higher income group preferred real estate as an investment avenue. Most of the
investors preferred to consult their family members for taking investment decision and invest for 3-5 years.
Most of the investors invested their money for the safety and growth of money. This shows that people in
Chi-square Test For Qualification
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Rajasthan region are conservative in nature and want that their money should be safe. They are not that
concerned for the liquidity and constant income.
There is no association of income, age, gender,
occupation on the percentage of income an investors wants to save for the future requirements, but there is
significant relationship between qualification and percentage of income save for future requirements. There
is also no association of income, age, gender, occupation, qualification with the appropriate investment
period.
The results of this study could help the wealth managers in the wealth management process and in building
a successful wealth management relationship. The analysis of how an investment choice gets affected by
the demographic variables could help the financial advisors to give better suggestions to their clients.
References
[1] Agnew, J. (2003), Inefficient Choices in 401(k) Plans: Evidence from Individual Level Data. Working
Paper , pp 1-41.
[2] Bajtelsmit, V. L., & Bernasek, A. (1996), Why Do Women Invest Differently Than Men? Financial
Counseling and Planning, pp 1-10.
[3] Croson, R., & Gneezy, U. (2009), Gender Differences in Preferences. Journal of Economic Literature,
pp 448-474.
[4] Grable, J. E., & Lytton, R. H. (1999), Assessing Financial Risk Tolerance: Do Demographic
Socioeconomic and Attitudinal Factors Work? Journal of the FRHD/FERM, pp 1-9.
[5] Papke,L.E (1998), How are participants investing their accounts in Participant Directed Individual
Account Pension Plans? The American Economic Review, pp 212-216.
[6] Lusardi,A.,Mitchell,O.S.(2007C), Planning and Financial Literacy: How Do Women Fare? Pension
Research Council Working Paper, pp 1-24.
Investment. Working Paper , pp 1-39.

[8] Hinz, R. P., McCarthy, D. D., & Turner, J. A. (1997), Are Women Conservative Investors? Gender
Differences in Participant-Directed Pension Investments. Positioning Pensions for the Twenty-First
Century (pp. 91-103). Philadelphia, Pennsylvania: University of Pennsylvania Press.
[7] Barber, B. M., & Odean, T. (1999), Boys will be Boys: Gender, Overconfidence, and Common Stock
61
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AN EMPIRICAL STUDY ON BARRIERS OF INNOVATION IN INDIAN SMES
S.Poornima1 and K. Nithya Kala2
1
Associate Professor/ 2Research Scholar,Department of Business Management, PSGR Krishnammal

College for Women, Coimbatore, Tamilnadu, India.
ABSTRACT: Small and Medium Enterprises (SMEs) have emerged as the drivers of growth in several
developed and developing economies across the world. Innovation has become the vital factor for the
growth of small and medium scale enterprises. Hence, Innovation has turned out to be nucleus issue of
various studies all over the world. In todays competitive world, India is far behind in innovation. The slow
growth of innovation across various manufacturing sectors in India is cited as root cause for business
failures in turbulent business environment. This paper aims at highlighting the barriers faced by
entrepreneurs in SMEs in India. This study further makes sector wise analysis and suggests policy
measures to enhance the adoption of innovation in SMEs. This study would serve as a guide to the
entrepreneurs to compete internationally.
Key words: SMEs, India, Barriers, Entrepreneurs
Introduction: Innovation is thought to provide organizations with a means of creating a sustainable

competitive advantage that is imperative in todays turbulent environment. Innovation is positioned as a
driver of economic growth. Competition in global markets in virtually every product, service, and industry
market segment is fierce, and in coming decade will grow even fiercer. In order not only to endure but to
prevail, global organizations will find that bringing products to market that are relative to existing products
is a strategy doomed to failure. Only innovative differentiated products that create substantial additional
value, relative to what customers can buy already, can succeed.
current competitive, complex and capricious business environment. Evidence can be seen from the rapidly
changing industries, such as information technology, automobiles, textiles, foundries, engineering, banking,
etc., where innovation is a prescription not just for organization to succeed but to survive in their particular
industry.
Innovation is one of the fundamental instruments of growth strategies for Small Medium
Enterprises (SMEs) to enter new markets, to increase the existing market share and to provide the company
with a competitive edge. Motivated by increasing competition in global markets, small scale companies
have started to grasp the importance of innovation, since swiftly changing technologies and severe global
competition rapidly erode the value added of existing products and services. Thus, innovations constitute
an indispensible component of the corporate strategies for several reasons such as to apply more productive
manufacturing processes, to perform better in the market, to seek positive reputation in customers
perception and as a result to gain sustainable competitive advantage.
To many Small Medium Enterprises, innovation is considered to be an upshot for their success in their
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Innovation Barriers in Indian SMEs: The term Small and Medium-sized Enterprises (SMEs) consists
of two components: The first component small and medium-sized relates to the size of an entity while the
second component enterprise relates to the economic nature of that entity. Notwithstanding their large
share in all enterprises and the overall employment generated, SMEs in India continue to remain week on
the revenue front when compared with their large counterparts. At the same time, the increasing
globalization is bringing in more competition in the home market, the traditional stronghold of many SMEs
in India as well as in many other Asian countries. SMEs usually operate under high overhead costs, such as
labour costs, and find themselves faced with tough price-oriented competition from low-cost producers
from emerging economies in Asia and Europe.
Besides, the globalization does not bring in only challenges but also presents an opportunity to
internationalize sales in new, rapidly growing markets and thereby to generate additional revenues. New
markets however (may) also require products and services which are adapted to the local needs and tastes
of those markets.
SMEs operating in India frequently operate in niches and have direct contact to customers thereby
potentially gaining valuable impulses in the form of customer feedback. Acting often in a more informal
manner and confronted with fewer intra-firm hierarchy levels than large firms, SMEs seem to be, in many
respects, better placed for innovations than their large counterparts. This potential edge, in normal course,
enables them to develop products better suited to market demands and thus bring more success. In practice,
however, the resource constraints coupled with market uncertainties and regulatory factors (and a few other
factors) limit the ability of SMEs to indulge in dedicated R&D and to experiment with the purpose of new
product development.
Objectives of the Study: The main objective of the study is to identify the barriers faced by entrepreneurs
in SMEs in India and to make comparative study between industries and suggests policy measures to
Review of Literature
Barriers to innovation in SMEs have been the object of investigation in a large body of national and
international studies. A few are mentioned here: Acs and Audretsch (1990) worked on this topic in the US,
Ylinenp (1998) in Sweden, while Mohnen and Rosa (1999) as well as Baldwin and Gellatly (2004)
researched on them in Canada. In Germany the Centre for European Economic Research (ZEW), has
conducted several studies in recent years (e.g. ZEW and DIW, 2004), Rammer et al. (2005), and Rammer et
al. (2006). Further studies dealing with the German situation have been conducted by the Friedrich Ebert
Stiftung (2004), and Hamburg Institute of International Economics (HWWA, 2004). The study results
highlighted the problems such as
enhance the adoption of innovation in SMEs.
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Studies
Barriers to Innovation in SMEs
Acs and Audretsch (1990), Baldwin and
Financial bottlenecks
Gellatly (2004), Rammer et al. (2006)
- hindered access to external finance, high innovation

costs (and therefore). high economic risks and
Bureaucratic hurdles
- long administrative procedures, restrictive laws and
regulations
Ylinenp (1998), FES (2004), Rammer et al. (2005),
Shortage of and hindered access to qualified personnel
Rammer et al. (2006)

Mohnen and Rosa (1999), Rammer et al.
Limited internal know-how to manage the innovation
(2005), BMBF (2006)
process effectively and efficiently.
Ylinenp (1998), Friedrich Ebert Stiftung
Missing market know-how
(2004), HWWA (2004)
- to meet customers needs, to enter foreign markets
Research Methodology: Research Design and Data Collection: The present study is descriptive in
nature and used both the primary data and secondary data. The primary data has been collected through
questionnaire and secondary data has been collected through journals and websites.
Sample Size: 84 small scale entrepreneurs in India.
Sampling Design: Non-probability Convenience Sampling.
Research Tools: Descriptive analysis like Percentage analysis, Mean and Standard Deviation were
performed, to find the importance of each variable given by respondents.
Analysis:
Industry/ Sector
Number of Respondents
Percentage %
Textiles
19
22.6
Wet Grinder
10
11.9
Pumps
11
13.09
Foundry
3.57
Engineering
25
29.7
Automobile
13
15.47
Others
3.57
Total
84
100
Source: Primary Source

From the above table 1, it is inferred that the majority of the respondents were from engineering firm
(29.7 %), and textiles firm (22.6 %), with about 3.57 percent from other sectors namely agro based.
Table 1 showing percentage of sectoral representation of the respondents
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Table 2 showing comparative summary of barriers of innovation in selected industry
Description
Textiles
Variables: Barriers
Lack of funds within business
4.21
Lack of funds from outside
3.68
Lack of qualified personnel
Wet grinder
Pumps
Foundry
Engineering
Automobile
SD
SD
SD
SD
SD
0.71
3.8
1.033
3.6
1.2
3.66
0.57
3.88
0.83
3.92
0.94
3.8
1.31
3.45
1.03
3.66
0.57
3.8
0.91
4.1
0.8
4.4 H
0.51
4.09 H
0.83
3.33
1.53
4.04
Lack of information on technology
3.84
0.89
4.1
1.1
3.18
1.25
2.66 L
1.53
Lack of information on markets
3.57
1.01
3.6
0.69
3.09
1.37
Lack of effective collaboration with
3.68
1.33
3.9
1.19
3.36
1.28
3.52
0.96
3.9
0.737
3.54
3.15
1.21
3.9
0.875
No need due to prior innovation
2.94L
1.07
4.1
No need because of no demand for
3.00
1.05
4.31H
0.8
SD
Others
M
SD
0.64
3.84
0.89
0.84
3.46
1.12
4.6 H
0.57
3.36
1.03
3.7
1.16
4.33
0.57
3.6
0.91
3.6
0.65
3.66
1.15
3.33
0.57
3.36
1.52
3.76
1.23
3.66
1.15
0.93
3.66
0.57
3.4
1.25
3.53
0.66
3.33
0.57
3.45
0.82
4.66 H
0.57
3.64
0.75
3.3
1.1
2.6 L
1.52
1.03
3.09
1.13
2.88 L
0.97
1.22
4.33
0.57
3.2 L
0.99
3.00 L
0.77
3.66
0.57
2.96
1.05
2.5 L
1.05
4.33
0.57
3.5
1.43
3.72
1.19
3.33
0.57
4.08
0.86
4H
3.33
0.57
0.96
3.38
1.04
Universities and R&D labs

Market dominance by established
Uncertain demand for innovative

Products
innovation
Excessive government regulation
Lack of government incentives
3.84
Average Mean Score
3.65
1.01
4
3.85
1.41
3.09
3.38
1.7
3
3.49
4.24
3.60
Source: Primary Data

Note: Minimum score=1; Maximum Score=2; M= Mean; SD= Standard Deviation; H= High score; L= Low Score;
3.49
3.76
Business
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From the above table it is inferred that average mean score of Barriers of Innovation variable were above
the medium level of 3.00, ranging from 3.38 to 3.85 between industries.
Barriers in Textile Industry: From the above table it is found that excessive government regulation in
industry with the highest mean of 4.31 and no need due to prior innovation as a reason not to innovate has the
lowest mean of 2.94. The average mean was found to be 3.65. The results infer that excessive government
regulation acts as barriers of innovation and has an impact on innovation in textiles. Regulatory factors have
to be addressed to improve innovation in textile cluster.
Barriers in Wet Grinder industry: The table shows that lack of qualified personnel has the highest mean of
4.40 and no demand for innovation as a reason not to innovate has the lowest mean of 3.20. The average mean
in Wet grinder industry was found to be 3.85. It is inferred that barriers of innovation are slightly higher in
Wet grinder cluster compared to other clusters also lack of qualified personnel in this sector has an impact on
innovation.
Barriers in Pump Industry: The above table shows that lack of qualified personnel has the highest mean of
4.09 and no demand for innovation as a reason not to innovate has the lowest mean of 3.00. The average mean
in pump industry was found to be 3.38. The average mean in pump industry was found to be lower when
compared to other industry also knowledge factor such as lack of qualified personnel is hampering innovation
in pump cluster.
Barriers in Foundry Industry: From the above table it is identified that uncertain demand for innovative
products has the highest mean score 4.66 and lack of information on technology has the lowest mean of 2.66.
The average mean in foundries was found to be 3.49. The results infer that market factors such as uncertain
demand for innovative products has acted as major barriers in innovation among foundry cluster.
Barriers in Engineering Industry: The above table shows that lack of government incentives have the
highest mean of 4.24 and due to prior innovation has the lowest mean of 2.88. The average mean was found to
be 3.60. The results indicate that regulatory factors such as lack of government initiatives are acting as major
barriers of innovation in engineering industry.
Barriers in Automobile/ Auto component Industry: From the above table it is identified that excessive
2.5. The average mean was found to be 3.49. The results indicate that excessive regulatory factors are acting
as major barriers in automobile/ auto component innovation.
Barriers in Other Industry: From the above table it is found that lack of qualified personnel with the highest
mean of 4.60 and uncertain demand for innovative products has the lowest mean of 2.66. The average mean
was found to be 3.76. The results infer that knowledge factors such as lack of qualified personnel acting as
barriers of innovation which has to be address to improve innovation in Agro or Agro based cluster.
Findings and Suggestions:
1) Regulatory factors such as excessive government regulation have the highest mean of 4.31.The results
infers that excessive regulatory factors and lack of funds within the business to invest in innovation are
perceived as barriers of innovation among textile cluster. Government has to curtail some regulatory factors to
improve innovation among textile industries.
government regulation has the highest mean of 4.00 and no demand for innovation has the lowest mean of
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2) Lack of qualified personnel have the highest mean of 4.4 indicating lack of knowledge factor such as
effective collaboration with universities and R&D labs and qualified personnel has a negative effect or acting
as barriers of innovation amongst wet grinder clusters. Cluster based R&D centers at district levels can be
made available at low fee to enhance innovation in wet grinder industry. The average mean score of wet
grinder industry was found to be 3.85; it indicates that compared to other clusters barriers of innovation is
higher in this sector.
3) Lack of qualified personnel and lack of funds from other sources have the highest mean of 4.09 and 3.45.
It indicates that cost factor and knowledge factors are acting as barriers of innovation in engineering cluster.
Technology utilization fund which are available to textile industry can also be made available to other
engineering clusters.
4) Uncertain demand for innovative products has the highest mean score of 4.66. The results indicate that
entrepreneurs in foundry cluster highlight uncertain demand for innovation as reasons not to innovate.
Common facility center and collaboration tie ups with universities can be made used by the foundry cluster to
improve innovation. Barriers of innovation is slightly less when compared to other sectors.
5) Lack of government incentives for innovation has the highest mean of 4.24. The results indicate that due
to non recognition of innovation and due to non availability of incentives from government in engineering
sector have acted as barriers of innovation in engineering industry.
6) Excessive government regulation has the highest mean of 4.0. It is inferred that excessive regulatory
factors are acting as barriers of innovation in Auto component or in Automobile sector. Government has to
make less stringent regulations which supports innovation in this sector.
7) Lack of qualified personnel in Agro based industry has the highest mean of 4.60. The results suggest that
knowledge factor has to be improved in the agro based industry.
Conclusion: Global innovation opens up new arenas for Indian firms, especially for SMEs, so SMEs has to
strengthen their innovation capabilities and thereby has to increase their competitiveness in a global world. In
order to mitigate the effects of innovation barriers SMEs have to find qualified personnel i.e. skilled labors
and motivate them to innovate. Co-operative agreements with the local research institutions or universities,
use of these facilities with low fees which substantially limits the financial burden of the firms. Also
government support such as Technology Up gradation Funds and curbing excessive regulations are sorted by
the entrepreneurs to improve innovations in their cluster. Thus a meticulous understanding of internal
business processes, organizational backing by management and by other employees, especially in R&D
departments, as well as a profound analysis of business environment conditions of the target market are
prerequisites of a successful Innovation management. Empirical evidences reveals that for triumph of SME`s
constant innovative practices and successful diffusion down their organizations becomes imperative to face
the stiffened international competition.
making use of common facility centers etc does not require high capital investments and thus SMEs can make
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Reference:
[1] Acs, Z. and Audretsch, D. (1990): Innovation and Small Firms, Cambridge.
[2] Baldwin, J.R. and Gellatly, G. (2004): Innovation Strategies and Performance in Small Firms, Ottawa.
[3] Ernst, D. (2006): Innovation Off shoring: Asias Emerging Role in Global Innovation Network, EastWest Center Special Reports, No. 10/2006.
[4] FES (2004): KMU und Innovation Strkung kleiner und mittlerer Unternehmen durch
Innovationsnetzwerke, Friedrich-Ebert-Stiftung, Paper 10/2004, Bonn.
[5] Rammer, C., Zimmermann, V., Mller, E., Heger, D., Aschhoff, B., and Reize, F. (2006):
Innovationspotenziale von kleinen und mittleren Unternehmen, Centre for European Economic
Research (ZEW), Mannheim.
[6] Rajnish Tiwari and Stephan Buse (2007), Barriers to Innovation in SMEs: Can the Internationalization
of R&D Mitigate Their Effects?, Technology and Innovation Management, Hamburg University of
Technology, pp.1-31
[7] Rogers, E.M. (2003): Diffusion of Innovations, 5th Edition, New York: Free Press.
[8] The Hindu (2003): Google to set up R&D centre in Bangalore, in: The Hindu, 13.12.2003.
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IMPLICATIONS OF INTERMEDIARIES IN GLOBAL LOGISTICS OF FOREIGN TRADE

C. Muthuvelayutham1 and R.Karuppasamy2
1
Associate Professor/ 2Research Scholar,School of Management Studies,Anna University of Technology

Coimbatore, India.
ABSTRACT: The world towards traveling in integrated phenomena which require more needs. That it is
fulfilling by the trade between the countries. Because of each country continuously transferthe goodsto other
country as same as another country transferring to that country. That make as a global logistics belongs to
foreign trade. Also it clears from the past literatures. Being a shipper or buyer can export or import the goods as
directly they meet more complexity like business contacts, forwarding, transportation arrangements and customs
clearanceetc.By those reasons, a shipper and buyer can export and import using indirect involvementmeans that
the firm participates in worldwidecommerce through an intercessor and does not deal with foreign customers or
markets. In that situation, the intermediaries get the huge place of contribution in global logistics belongs to
foreign trade.
The study focuses on the significant role of major intermediaries in export and import of goods in global
logistics and structure of intermediaries services. Also the previous literatures taken to this case towards
conclude the intermediaries supportiveness to global trade. As itgiven more solution about various
intermediaries,in the case should consider significant intermediaries to international trade based on location of
India.
Key words: Global Logistics, Trade Intermediaries, Shipper and Buyer, Warehousing.
INTRODUCTION
As increasing importance of global logisticssuch the main reasons of effective logistics is becoming a
key to winning and possession customers, logistics is a most important cost component for most businesses, the
detonation in product multiplicity has formed a need for enhanced logistics management, and information
distribution have joke a perilous role in the evolution and improvement of world trade and in the assimilation of
business on a worldwide scale.A set of codependentestablishments (intermediaries) complicated in the course of
making a product existing for use or ingestion. The network will be utmostoperative when each associate is
consigned tasks it can do best and all members cooperate to attain overall channel goals and satisfy the target
customer.
As firms start operating on a global basis,firms or shipper needs to manage shipping of goods or
cargoto various buyers or importers at the most easiest, economical and reliable rates. Because of the shipper
keeping touch and communicate with trade intermediaries as indirect trade involvement.Trade intermediaries are
instrumental in the expansion of global trade.Improving the performance of intermediaries will contribute to the
developmentof world trade. Intermediaries often nd it difcult to develop relationalpartnerships because supply
chain members operate in different countries andoften have inconsistent business goals (Bello and Gilliland,
1997; Cavusgil,1998; Morgan and Katsikeas, 1998).Intermediaries and direct exporters respond differently to
technology has created opportunities for major gains in distribution efficiency. Universal logistics and
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exchange ratefluctuations both in terms of the total value of shipments and the number of products exported as
wellas in terms of prices and quantities. Aggregate exports to destinations with high shares of indirectexports
are much less responsive to changes in the real exchange rate than are distributes to nationsfunctionedprincipally
by direct exporters.The main objectives of the paper is to highlight the significant work of intermediaries in
global logistics to both break bulk and containerized cargo, to shows the shipper and buyer how to use major
intermediaries to global trade in India and to track the set-up function of major trade intermediaries in global
logistics at India.
LITERATURE REVIEW
Buyer and Seller coordinate the ow of materials and resources between customers and suppliers.
Intermediaries help clients search for new opportunities to trade, new sources of products, new materials and
design, new ways in which supply and demand can be integrated (Popp, 2000).Trade intermediaries play an
important role in international trade. They enhance the productivity of host economies, improve efciency of
distribution, open up new markets, provide marketing technology, credit, managerial training and minimize
costs incurred in overcoming barriers to trade (Ellis, 2003b). Intermediaries in global supplier and customer
markets have their operations anchored in a supply chain. A supply chain is a complex of establishments that are
involved through upstream and downstream linkages, and engaged in different practices and accomplishments
that produce value in the form of products and services in the indicators of the definitive consumer such that
customers are serviced at higher levels and at a lower cost (Christopher, 1992).
Revolutions in electronic commerce have a crucial role to play in managing inter-organisational networks
of supply chain members. The evolution of electronic commerce technologies is having a considerable impact
on the communication patterns in supplier networks in many industries (McIvor et al., 2000). Electronic
commerce can reduce the costs of closely integrating buyers and suppliers and through electronic networks;
rms can achieve an integration effect by tightly coupling processes at the interface between stages of the value
chain (Benjamin et al., 1986). Researchers working in the export development area often approach problems
from the point of view of the manufacturer, e.g. by examining their channel choices (e.g. Aulakh and Kotabe,
1997; Klein et al., 1990; Li, 2002; Peng and Ilinitch, 1998; Trabold, 2002) and the intermediaries perspective is
Their fluctuatingparts and functions (Brasch, 1978; Shao and Herbig, 1993; Mattson, 1990; Wichmann,
1997; Perry, 1992);
Precursors of cooperative relationships (Balabanis, 1998; Bello et al., 2003;Matear et al., 2000);
Their service aids (Balabanis, 2000); and
Theirpart as an information hub (Casson, 1997; Hsing, 1999; Popp, 2000).
METHODOLOGY
It follows case study approach whereby highlights the significant role of major trade intermediaries
(Trading Company, Steamer Agent, Liner, Freight Forwarder, Custom House Agent, CFS/ICD, Port and
Stevedore Agents) in global logistics belongs to foreign trade. The evidencecharity in this study wascomposed
from the custom house authority of India, Ministry of Commerce and Industry and some logistics service
provider of India. Also considered the previous literature.
often neglected. When researchers do study intermediaries, common research themes are:
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INTERMEDIARIES IN GLOBAL LOGISTICS BELONGS TO FOREIGN TRADE
International logistics is well-defined as the design and executive of a system that leads and pedals the
flows of tackleshooked on, through and available of the firm diagonally national boundaries to attain its business
objectives at a least total cost. The Global Logistics includesvarious service activities such as Order Processing,
Warehousing,Inventory Management, Transportation, Trade Intermediaries, Design system to minimize costs of
attaining objectives etc. In such that international trade intermediaries are play a significant role in foreign trade.
That it is only providing supportive services to their clients such as shipper and buyer. The Figure 1 shows a
place of trade intermediaries in international trade.
Figure 1. Global Logistics in Foreign Trade

(a) MAJOR TRADE INTERMEDIARIES
This study mainly focuses on the major intermediaries for international trade. That it is continuously using
by most of shipper and buyer in India. The major trade intermediaries for transferring the goods between
Figure2. Major Trade Intermediaries for International Trade
countries are clearly shows in figure2.
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There is various trade Intermediaries. But those five intermediaries are providing significant services to
shipper and buyer which easily do make the trade. In such that didnt includes the Trading Company and
Transportation. Because manufacturing firm or owner of the goods and original buyer can directly export and
import the goods. Also those possibilities defined in previous literatures. The transportation mode also important
one in international trade like as Road, Rail, Ocean, and Air Transports. As the transportation different from
those intermediaries and also it is studied in most previous literatures, Those intermediaries might placein this
study.
(i) STEAMER AGENT

The Steamer Agent acts as an agent for owner of the ship which is operated in various countries by
providing agencies to others. As the reasons of unable to operate in various countries by own, the steamer agents
providing those services behalf of ship owner.Shipping corporation of India providing ship transport facilities by
own but it is operate various areas by help of steamer agent. It given some important logistics services to their
clients (shipper/buyer) such as arrange the vessel, sign on and sign off the vessel in port, making other
requirements ship officers and cruises, vessel expectation, anchorage, sailed information given to the port, pay
the all marine charges to the port.
Vessel size has increased dramatically in recent years (a trend termed by some as gigantism). Maersk
Lines new flagship vessel the Emma Maersk, which won the title of ship of the year at the 2007 Lloyds List
awards in London, is said to be the worlds largest container vessel with an operating capacity of some 11,000
twenty foot equivalent units (TEUs) (BBC, 2006).
(ii) LINER/FREIGHT FORWARDING AGENCY
Freight Forwarding Agency acts as an independent business that handles export/import shipments for a
fee. A freight forwarder is amid the best sources of information and aid on export rules and documentation,
shipment methods, and foreign import regulations. Forwarder assembles, collects and consolidates low container
load (LCL) freight. Forwarder consolidates freight for many shippers, arranges for shipment and delivery via
LCL carriers and gets lower (freight) rates based on volume than the individual shippers could obtain.At the
furthering the shipment to its overseas destination. The freight forwarder does not essentiallytransmit the
consignment or conduct business for the ship. It is an intermediary among carrier and owner of goods being
transported. The forwarding agencyhelps the exporter in discovery the most economic and efficient systems of
transporting and storing cargo.
Liner is an owner of the container and also providing ship transport facilities by own. They are giving
container facilities to forwarding agents or direct shipper at rental basis. Also freight forwarders are same as
liner. But they arrange those facilities to export. There are various types of liner such as mother liner, non-vessel
operator, Freight forwarder etc.
(iii) CUSTOM HOUSE AGENT
Customs House Agent(CHA) is a person who is licensed to act as an agent for operation of whichever
business concerning to the access or parting of conveyances or the import or export of goods at any Customs
station. Section 146 of the Customs Act of India is the assistingestablishment, which permits agents of importers
appeal of the shipper, the forwarder makes the definiteengagements and offers the essential services for
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and exporters to act on behalf of importers and exporters. This is obliged by the extremely involved and
technical nature of the work to be complete in construction with clearance of imports into and exports out of
country. The importers and exporters themselves may require neither interval nor the obligatory knowledge on
their own. Hence, agents are permitted to act on their behalf. The work of the agents is governed by the Customs
House Agents Licensing Regulations, 1984 of India.
Multimodal transport operators (MTOs) are appointed under Multimodal Goods Transportation Act,
1993 by the Ministry of Surface Transport. Their exertionencompassesbearing of goods by more than one mode
of transport between India and any place overseas. They switch export consignment stuffing and destuffing.
This does not mechanicallydeliberate any right on them to obtain appointment as steamer agents or CHAs unless
they are otherwise qualified for such appointment. Their part is dissimilar from that of a CHA or a steamer
agent.Each CHA has to join himself as anassociate of a CHA association registered with the Custom House and
familiar by the Commissioner. Regulation 25 deliberatesauthority on the Commissioner to fix rates which may
be accused to the punter for services extracted by the CHA. This is complete in session with aacknowledged
association of CHAs. The CHAs are obligatory to sternly adhere to these rates.
(iv) CFS/ICD
An Inland Container Depot / Container Freight Station is a mutual user facility with public right status
fortified with fixed systems and proposing services for handling and impermanent storage of import/export
laden and empty containers carried under customs control and with Customs and further agencies proficient to
clear goods for home-based use, warehousing, short-term admissions, re-export, impermanent storage for ahead
transit and outright export. Transshipment of consignment can also take place from such locations. For example
Central warehousing Corporation and Container Corporation Of India Ltd etc.Functionally there is no
dissimilarityamong an ICD/CFS as both are transit facilities, which compromise services for containerization of
break bulk goods and vice-versa. These could be obliged by rail and/ or road transport. An ICD is
commonlysituated in the interiors (freestanding the port towns) of the country away from the servicing ports.
CFS, on the supplementarypointer, is an off dock competencesituated near the servicing ports which
CFSs are largely expected to deal with break-bulk cargo originating/terminating in the instant hinterland of a
port slightly may also deal with rail borne traffic to and from inland locations. Custody in view the necessities of
Customs Act, and need to introduce lucidity in nomenclature, all containers terminal amenities in the hinterland
would be designated as "ICDs".
(v) STEVEDORING AGENT
The stevedoring agent acts as an agent to shipper and buyer for loading/unloading the cargo. The stevedore
agent services to candle the cargo form the vessel in port area behalf of shipper and buyer. Everystevedore agent
must be registered in port for provide this those services. The key services of the stevedores are as request to
port for loading/unloading the cargo using cargo handling labour, Pay the advance levyfor cargo
loading/unloading, Loading/unloading the cargo.
3PL LOGISTICS
helps in decongesting the port by shifting consignment and Customs associated activities outside the port area.
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3PL - Third party logistics provide services for shipper and buyer. Certain of these services comprise, but
are not inadequate to: transportation, (including domestic and international) warehousing, distribution,
fulfillment and packaging, customs brokerage, freight payment services and trade compliance. Most of the trade
intermediaries provide this all services to clients through their one company. For example Freight forwarders
providing forwarding, custom clearance and warehouse. It should be effective in recent global logistics.
CONCLUSION
The study emphasized the significant role of major trade intermediaries in international trade and
structure of service supportive to shipper and buyer. In the case the major intermediaries should make easy to
export and import process belongs to shipper and buyer. Being shipper and buyer can export and import in
directly mode, they are using trade intermediaries at maximum where more complexity should reduce. Also
intermediaries contributing to increase the trade when providing value added service, reverse logistics service
and 3PL service. However those intermediaries robust a significant role in global logistics of international trade
which the case should emphasis.
REFERENCES
[1] Andrew B. Bernard, Marco Grazzi and Chiara Tomasi (2011). Intermediaries in International Trade:
direct versus indirect modes of export.
[2] Carolyn M. Jones Carr and Michael R. Crum (1995). The U.S. Customs Modernization and Informed
Compliance Act: Implications for the Logistics Pipeline, The International Journal of Logistics
Management, Vol. 6, No. 2, 1995.
[3] Danny C.K. Ho, K.F. Au, Edward Newton (2003). The process and consequences of supply chain
virtualization. Industrial Management & Data Systems Volume: 103 Issue: 6 2003.
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[5] Helpman, E., Melitz, M. and Rubinstein, Y. (2008). Estimating trade ows: Trading partners and
trading volumes. The Quarterly Journal of Economics 123(2): 441487.
[6] John Mangam and Chandra Lalwani (2007). Port-centric Logistics, International journal of Logistics
[7] Marijn Janssen and Henk G. Sol Evaluating the role of intermediaries in the electronic value chain.
Internet Research: Electronic Networking Applications and Policy Volume 10. Number 5.2000.
[8] Melitz, M. J. (2003). The impact of trade on intra-industry reallocations and aggregate industry
productivity, Econometrica 71(6): 16951725.
[9] Paul Humphreys, Ronan McIvor and Trevor Cadden (2006). B2B commerce and its implications for
the buyer-supplier interface. Supply Chain Management: An International Journal 11/2 (2006) 131
139.
[10] Poul
Houman
Andersen
(2003).
Export
intermediation
and
theinternet:
an
activity-
unbundlingapproach.International Marketing Review Vol. 22 No. 2, 2005 pp. 147-164.

[11] Richard M. Castaldi, Alex F. De Noble, Jeffrey Kantor (1992). The Intermediary Service Requirements
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A STUDY ON CONSUMERS BRAND PREFERENCE TOWARDS PURCHASING CAR
IN TIRUNELVELI DISTRICT
T. Samson Joe Dhinakaran
Asst. Prof of Commerce, St. Johns College, Palayamkottai, Tirunelveli
ABSTRACT: The consumer attaches considerable importance to the brand image in the purchase of products.
Several branded cars are sold in Tirunelveli. There is cut turn out competition among manufacturing companies.
Therefore every company has to make a study about the psychology of consumers and their attitude towards
brand preference of cars. There fore studying psychology of consumers and to recommend to the companies
about the consumers brand preference towards cars was taken by the researcher. Hence there is strong
competition among sellers. The necessity arrives among these forms to conduct a study about consumer brand
preference. The researcher realizing their necessity and understanding the present problem, undertaking this
study and wants to give suggestion for this problem in his findings at the last.
Key words: Brands, Consumer, Product and Brand Preference.
Introduction
In the present age of Liberalization, Privatization and Globalization, a lot of changes have taken
place because of development activities. The growth of automobiles industry in India and especially in
Tamilnadu in enormous. It began to start their production also in Tamilnadu. Between 1910 and 20s the
automobile industry made a humble beginning by setting up assembling plants in Mumbai, Calcutta and
Chennai. Indian automobiles industry in India offers significant employment opportunities. The industry
including component industry employs 0.49 million. The automotive research association of India research
organization formed by the Indian automotives industry information about services offers membership and
activities. Since time immemorial man has been seeking means to transport himself and his belongings and
breakthroughs. Invention of motorized vehicles may be said to be the landmark in transportation or movement
of persons and things. Since then, different kind and models of motorized vehicles suiting the varied
requirements of diverse users are produced by many manufacturers throughout the world. Among powered
motorized vehicles, passenger cars have come to occupy an enviable position both among the young and the old.
Mans desire to possess his own personal transportation mode and to have social status, and versatility of
passengers cars are a few of the manifold reasons for purchasing them. A consumer purchases a product to
Satisfy his select needs among the unlimited requirements. In present Buyers` Markets state, every product
has substitutes or alternative products of same kind; so, the consumers are at liberty to choose from the many
products available in the markets. Once the consumer decides to purchase a product, he first selects a brand and
then model (style) from within the select brand. Thus, purchasing a product may be for satisfying a single or a
group of needs. But the decision to purchase a particular model from among the several models of select brand
produce from one place to another. In his quest for better and cheap means of transportation, he is making many
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is mainly made on the basis of taste, suitability, requirements, price, utility, etc. this perception is pertinent to
every type of product and to every type of consumer.
Objectives of the Study
To find out particular brand preference of car among various brands of cars available in the
market.
To ascertain the factors influencing purchase of car
To evaluate the purchasing power of the customer
To analyse the satisfaction level of the customer
To identify the advertising media that influences the brand preference of the consumers.
Methodology: The present study is an empirical research based on survey method. About 200 customers were
surveyed to study Brand Preference towards Purchasing Car. Primary data were collected directly from the
customer by using questionnaire. The relevant secondary data have been collected from the Journals, and
Internet. The Collected data were coded, calculated and analyzed with the help of statistical tools like measures
of chi-square test, Anova table, percentiles and tabulation were used.
Operational Definition
Brand
A brand is a name, term, symbol or design or a combination of them, which is intended to identify the
goods or services of one seller or group of sellers and to differentiate them from those of the competitors.
Brand name
A brand name consists of words, letters and or numbers which may be vocalized and refers to
products.
Brand mark
A brand mark is that part of brand which appears in the form of a symbol or design or distinctive
coloring or lettering. It is recognized by sight but is not expressed when a person pronounces the brand name.
E.g. symbol of Maharaja of air India, the symbol of Tiger and Gopuram of the Cholan roadways corporation etc.
Trade mark
ownership of a product as distinguished from its quality and which others have not the equal right to employ for
the same purpose.
Consumer behaviour
Consumer behaviour can be defined as those acts individuals directly involved in obtaining
using and disposing of economic goods and services including the decision process that proceed and determine
these acts.
HISTORY OF INDIAN CAR INDUSTRY
The motor car originated in Europe in the latter half of the 19 th century. The first car was driven on
British soil in 1894.it had been Imported from the French car company called Panhard and Lavassor, which was a
leading car company at that time. Panhard and Lavassor had commenced production in the early 1890s, after
licensing gasoline engine technology form Gottlieb Daimler, the original inventor. The automobile era began in
India in 1898when the Bombay cycle and motor agency imported four cars for display. India imported a large
Trade mark has been defines as, Any sign, mark, symbol, word or words which indicate the origin or
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number of vehicles, mainly motor cars, during First World War. There seems to have been no attempt made by
any Indian organization to either manufacture or assemble automobiles for a fairly long time. The Indian
automobile industry can be considered to have got off the ground when Ghanshyam Das Birla promoted
Hindustan motors ltd., in 1942 at Port Okha in Gujarat as a small assembly plan for passenger cars. The first car
was named Hindustan. Walchand Hirachand also started premier automobiles ltd., in 1942. The company rubbed
shoulders with HML for kicking off the automobile revolution in India by assembling De Soto and Ply with
Chrysler from the US. The year 1949 is considered a landmark year in the history of the automobile industry in
India as the first partially manufactured car rolled out of HML`s factory during that year. During the 1950s was
relatively liberal. However, in 1959, India`s foreign exchange reserves nearly ran out and automobile imports
came to an end. The import licensees were asked to promise progressive import reduction befor3e they were
allowed to import technology. But the structure of the Indian automobile industry has altered dramatically since
the 1960s as an explicit policy emerged during the latter half of the 1960s. In 1960s commercial vehicles
accounted for more than 50% of the total four wheelers produced. Tata engineering and Locomotive Company
(TELCO) was the pioneer in commercial vehicles in India. In 1954, it collaborated with Daimler Benz AG pf
Germany for the manufacture of commercial vehicles. The relative dominance of commercial vehicles
production continued till 1985. In 1985, the production of cars increased by around 60% over the previous year,
and from this point onwards, the dominance of commercial vehicles` production declined in relative terms. There
was a time in India when the portly Ambassador was the countrys most coveted and popular car. The Indian car
buyer had to wait for months and at times even for years before he could lay his hands on an Ambassador or a
Fiat 1100 which was usually handed over by nonchalant supercilious salesmen. It was the Maruti 800, a product
of the Japanese car giant Suzuki collaborating with the Indian government which led to a veritable market. It
became the small car which the Indian nuclear middle class families could aspire for. It was compact and
economical. It could be easily maneuvered through Indian by lanes and `gallis`. But now that too is history. India
has become one of the world`s fastest growing car markets with scores of models plying the city roads and
highways, from the home grown Tata and Maruti vehicles to Toyotas and Mercedes Benzes. Indians have
emerged as avid car enthusiasts flaunting their proved possessions as status symbols and speed machines.
among the Indian technical fraternity and are setting up manufacturing plants right and left across the country at
lower costs. The growing desire for cars is also a sign that Indian roads are finally good enough for international
cars to ply on. According to surveys, millions of more Indian families will buy motor cars within the next few
years. The car market witnessed a 29%growth in 2004 followed by a lull in 2005 due to meteoric rise in fuel
costs and more stringent anti-emission policies implemented by the Indian government. Increased auto- loan
interest rates from the banks also added to the slowdown. But the demand has picked up once again. And now,
we have the Tata Nano, which can be picked up at an all time low on-road price of just Rs.1.4lakh. The Indian
automobile market is projected to grow by 7% a year and economy is booming and the middleclass is getting
easy finance schemes to upgrade to four-wheeler from two-wheeler. In post-liberalization India, backward
linkages into the manufacturing of auto components have enabled many Indian vendors to foray into core
manufacturing.
Foreign car companies have discovered the Indian consumer as well as the research and development potential
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EVALUATION OF PASSENGER CAR
The invention of automobiles has been one of the greatest milestones that have been achieved by
mankind. The Horseless carriage has been used since the late 1800s. But it looks Hendry Ford to find a way
to make cars affordable. Born as the son of an agriculturist in Michigan U.S.A, it was Hendry ford (1863-1947).
He was a brilliant inventor, whose vision of mass production qualified him as a genius. In America the
automobile age begin in 1908. When Hendry Ford unveiled his car for great multitude , the introduction of
automobile has brought about a big change in the life of America. In 1925, when a few sociologists asked the
resident of India and Chicago, how their life is changing, one respondent offered a simple answer. I can tell you
whats happening in just four letters-A.U.T.O. the Indian car market Fiat was first company to launch a car. As
the year progressed; Hindustan motors came up with their first model land master in 1957.
EMERGING CAR INDUSTRY IN INDIA
Since the opening of the Indian economy, the automobile sector in India has been playing a vital role in
the adoption of advance technology. Industrial majors in the automobile sector, which started operations in India
immediately after liberalization, consolidated their positions. Today, Indias car market is the 12 th largest in the
world. Though India is lagging behind several developed and developing countries with much smaller
populations, the trillion-dollar economy has immense potential to outgrow some of the others in the near future.
The Indian car market has come a long way since the launch of Maruti 800 in December 1983. From stagnant
sales of about 35000 cars a year between 1977 and 1982, the market size increased to about 150,000 in 1991. The
rapid pace of growth continued there after, reaching a figure of 1,078,408 cars during the financial year 20062007, showing an impressive compounded annual growth rate of 22% post-liberalization. It is further expected to
grow at 11% over the next decade, making it the third largest car market in Asia though this growth looks
impressive, it would still have a long way to go when compared to the numbers in Japan and China. The total
number of cars on the Indian roads is just around 8 million in china. At present, there are only 7 cars for every
1000persons in India. This is very low when compared to other emerging and developed markets. All
these
suggest that there is tremendous untapped potential for motor cars in India. With India poised to become the third
largest economy by 2050, the growth of the car industry is unquestionable. The future growth in passenger car
the North-South, East-West corridors and several express ways), improved urban infrastructure, etc., together
with increased disposable income, easy finance, replacing of aging four-wheelers, graduation from two-wheelers
to four - wheelers and the growing concept to pre-owned car in urban areas. The demand is expected to grow at
11%per annum for passenger cars and at 6%for multi utility vehicles over the next decade, making India one of
the top five car markets in the world.
Chi square test
For the calculation of the chi-square test the researcher considered the factors of company name on which,
Maruti, Tata, Honda, Ford, Mahindra and Chevrolet and the level of brand preference on which, Low level,
Medium level and High level.
market will be driven by higher GDP growth, improved road infrastructure (such as the GOLDEN Quadrilateral,
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Chi-
Calculated
Tabled
value
value
8.8720
18.307
square
Hence the Researcher Accepted the Hypothesis because the calculated value is Less than the table
value.
Chi square test
For the calculation of the chi-square test the researcher considered the age of the respondents on which below25,
26-35, 36-45 and above 46. And the level of brand preference on which, Low level, Medium level and High
level.
Calculated
Tabled value
value
Chi-square
0.2344
5.991
Hence the Researcher Accepted the Hypothesis because the calculated value is Less than the table
value.
FINDINGS
In this survey out of 200 respondents 69% of the respondents are male and 31% of the
respondents are female. The study reports that majority of the respondents are in the age group of 20-30.It is
derived from the analysis that 31.5% of respondents are post graduate and 26.5% respondents are
Undergraduate. It is evident from the study that 26% of respondents are business people and 23% of
respondents are salaried people. This analysis denotes that Majority of the respondents (68.5%) are married
people. The survey depicts that 61% of respondents belong to an individual family type. Most of
respondents (39.5%) are having 3 to 4 members in their family. It is evident from the analysis that most of
the consumers (40.5%) belong to the income level of Upto Rs.25000.Most of the respondents (44.5%) have
owned Ordinary type of car.54% of the respondents are influenced to buy the car through their family
brand preference of majority of the people. It is found that most of the respondents (32%) choose particular
car for quality. Majority of the respondents (31.5%) purchase the car for the purpose quick and easy
travel.50.5% of the respondents are purchasing the car for credit basis. Many of the respondents (44.5%) are
purchasing the car at festival season. Majority of the respondents (36%) are getting the finance from private
sector bank. Many people owned the car engine capacity is 1000cc.61% of the respondents replacing the car
at time of necessary. Majority of the respondents (34.4%) attracted by the advertisement for the reason is
that giving more important for car in daily life.
CONCLUSION
The globalization has increased competition in the passenger car industry. It is important for auto
carmaker firms to have competitive advantage so that they can meet the consumers expectations well and
members. Most of the respondents own Maruti and Tata company car. It is found that Maruti 800 is the top
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command the position of leader in the business. The customer relationship management is the only tool for
the survival in business. The firms should try hard to retain the customer for business growth. Customer
relationship management is focused on creation and maintenance of long-term, mutually beneficial
relationship with the customers. CRM is introduced to tailor the customer and to develop long term
relationship.
The biggest disadvantage of is customer relationship management is expensive, time
consuming and complex proposition. This is an opportunity to rise above minor advantages and develop an
actual relationship with the customers. Passenger car companies that are the most successful at delivery
what are the most likely to be the leaders in future. CRM may or may not prove to be the answer to
providing excellent customer care, but the philosophy of putting customers at the heart of the business is
definitely a step in the right direction.
BIBLIOGRAPHY
[1] Carl Mc Deniel Jr., The Nature of Marketing, Mac millian publishing Co., New York, 1974.
[2] David j. Luck and Ronald S. Rubin, Marketing Research, Hall of India private limited. NewYork,
2007.
[3] Dr.Gupta S.L and Sumitra pal, Consumer Behaviour An Indian perspective, Sultan chand and
sons, New Delhi, 2006.
[4] Kothari C.R., Research Methodology Method and Techniques, New age international (p) Ltd.,
New Delhi, 2007.
[5] Ranganadathan A study on consumer markets and buying behaviour of cars, Indian journal of
marketing, vol.xxxv, No.4, April 2005, pp 3-7.
[6] Rudra saibaba, Consumer bhaviour towards Two-wheelers A comparative stuty of Rural and
Urban consumers of Warangal District (Andhra predesh). Marketing Mastermind, April 2008,
vol.8, issue.4, pp 63-66.
[7] Varshney S.C. and Sonia kalia, Consumer perception and marketing trend of cars, Southern
Economist, Dec 15 2006, vol.45, No.15$16, pp 51-54.
[8] Vijayalakshmi N. Indian automobile industry, Infra structure development in India, March 2008,
vol.xi, issue.3, pp 59-61.
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WORD OF MOUTH: THE KEY TO UNLOCK HINTERLAND

P.Prialatha1 and K.Malar Mathi2
1
Doctoral Scholar/ 2Associate Professor, Bharathiar School of Management & Entrepreneur Development,
Bharathiar University, Coimbatore, India.
ABSTRACT: Advertising and other promotional efforts form crucial part of rural marketing communication,
that to with increasing rural prosperity, marketers are keen to inform villagers about the benefits of buying and
consuming their products and services. The promotion aspects always create a challenge in rural markets
because of the fact that villages have thin population density and are widely spread over large remote areas.
Some of the rural markets are also inaccessible to television signals and are often designated as media dark.
Interpersonal communication accounts for over 80% of the rural communication process. Word of Mouth
form of communication plays a vital role in rural consumer purchase decisions. The study was conducted
among rural areas of Coimbatore district in Tamil Nadu, to identify rural consumers exposure to different
media vehicles and to understand the importance of Word of Mouth in influencing rural consumers purchase
decision with regard to personal care products. The study throws insight into the need for positive word of
mouth generation, thorough right media mix decisions targeting rural consumers. Word of Mouth
communication rules brand building in Hinterland and the marketers foraying into it must focus on a long term
effect and decide on innovative and feasible media options to capture the mind space of rural consumers.
Key words: Hinterland, Media Mix, Word Of Mouth & Opinion Leader.
1. Introduction. The promotion aspects always create a challenge in rural markets because of the fact that
villages have thin population density and are widely spread over large remote areas. Some of the rural markets
are also inaccessible to television signals and are often designated as media dark. Therefore, the rural poor are
What marketers and advertisers today are worried about is how to develop a scalable model for influencing the
rural consumers decision over a period of time. One basic problem of using the mass media for marketing
communication in rural India is the time gap between the point of exposure and the time of purchase, which is
long. The memorability of the message cannot be expected to be strong enough, to last till the time of purchase,
if the impact of communication is not very effective (Bhatia, 2007). (Kashyap & Raut, 2008) state that having
developed a good communication package aimed at the rural masses, it is equally important to deliver the same
through a combination of mass media and unconventional media. Even today, interpersonal communication
accounts for over 80% of the rural communication process. The authors further propose an ideal media model to
reach rural audiences in which Opinion Leaders are given center stage. The marketers must influence the
opinion leaders first and win them over before targeting the rural masses, as the former guide the latter in their
purchase decisions.
not only denied access to products and services, but also to knowledge about what is available and how to use it.
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The regional press plays a very important role in reaching opinion leaders in villages, who are generally literate
and exposed to rural masses and the mass media. Since such opinion leaders are few and can be identified
easily, direct marketing efforts such as road shows, direct mailers and one-to-one contact programs specifically
aimed at them can help create a favorable image about a product. In addition, messages conveyed through the
mass media like television and radio are understood by these opinion leaders in the same way as they are by
urban audiences. Dealers too, play a major role in influencing the choice of a brand at the point of sale for both
the target audiences.
2. Media Vehicles and Rural Market. Television plays an important role in rural life, with regard to social,
economic and political processes that have been revolutionizing the landscape of village India in recent years.
The ethnographic fieldwork in two remote villages in the mountains of Western Maharashtra - Danawli and
RajPuri, shows that there is social change at both the structural as well as psychological levels and indicates that
the village audience is an active and vibrant participant in the use of media, which has ramifications for
`development' both at the village level and beyond (Johnson, 2001). (Bhawna, 2007) conducted a study among
150 rural consumers of Jhangadi (Mawana) to understand the brand preference of hair oil. The research showed
that TV advertising had a deep impact on the minds of consumers (47%) from the villages. (Das & Ashutosh
Ka, 2009) analyzed the growing popularity of radio and its impact on the listeners. 1872 respondents from
Barrackpur Municipal area of West Bengal were taken up for the questionnaire survey. The study found that
respondents, irrespective of their occupation variation, opined that, popularity of audio media has significantly
increased after privatization. The various categories of respondents also favored the opinion that the spreading
of information has increased significantly after the introduction of FM channels. Radio Mirchi was ranked first
information and upliftment of lifestyle of its listeners.
Marketers should use organized media-mix like TV, radio, cinema and POP advertising for their marketing
communications in rural areas. Television is gaining popularity in rural areas but due to the poor supply of
electricity, radio is performing significantly better than TV. Since the rural people have a need for
demonstration, short feature films with disguised advertisement messages, direct advertisement films and
documentaries that combine knowledge and advertisements will perform better rural communication. Hence the
companies may also use audio-visual publicity vans, which may sell the products with promotional campaign.
To attract the rural consumers, companies can organize the puppet shows, village fairs, dance and drama shows,
group meetings to convince the rural consumers regarding the products and services (Srivastava, 2005). (Faldu,
2009) intended to understand whether customer recognition of a selected brand of Personal Care Industry in
by the respondents. Thus FM radio as a medium was found to have considerable impact in spreading of
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Print media is influenced by certain personal variables. 300 respondents of Gujarat were taken for the study. He
found that Advertising plays a vital role in boosting the sales through brand recognition in the Personal care
Industry. Advertising needs to be evaluated for its effectiveness. Increasing number of firms go for combination
of Print as well as Television advertising. While designing advertisements, certain variables viz. Age, Sex,
Occupation and Education need to be taken into consideration as significant difference in recalling ability was
found to exist between the respondents of different age, sex, occupation and education groups. (Kirti, 2009)
through her study delineated the dimensionality of advertising attitudes across rural and urban India. It was
observed that advertising attitudes did consist of believability, trust and control dimensions. The study shows
that the prolific advertisements and the various media options available have resulted in the consumers loosing
interest in the ads, giving rise to selective attention and absorption. It was observed that traditional media scored
better than the Internet. In both urban and rural India, newspapers scored as the number one media, but it also
seemed uninteresting to the respondents. It was also observed that the Internet is gaining importance in the
media options in both urban and rural areas, and must be carefully explored by the marketers. The study
suggests that advertisers need to be more creative in their advertising copy for newspapers. The advertising
claims should be relevant and not deceitful, and the message should focus on product attributes and benefits.
Wall Paintings are an effective and economical medium for advertising in rural areas. Retailers normally
welcome paintings of their shops, walls, and name boards, since it makes the shop look cleaner and better. Their
shops look alluring and stand out among other outlets. Besides rural households, shopkeepers and panchayats do
not expect any payment, for their wall to be painted with product messages. The greatest advantage of the
medium is the power of the picture completed with its local touch (Sathyanarayana & Ramani, 2008). Brand
communication to the consumers is always an important marketing goal of marketers. In doing so, they spend a
lot through their marketing services firm, which provides the advertising and communication services to the
client firms. Most of the marketing services firms bill their client heavily mainly due to using easily deployable
medias, like TV, print papers, etc. But in South Asian countries like Bangladesh, there are many rural or semiurban areas which are traditionally media poor and have little access to print. Companies can use point of
some rural and semi-urban areas as part of the distributors sales representative team and pointed out some
simple, cost-effective ways to effectively reach the customers, like: Product Card (picturesque) with Corporate
Identity for the Retailers, Brand List card with Corporate Identity for the Consumers, Classifying Educated and
Professional Traders, Running Promotion Cards, General Shopping List to the Consumers, Associating other
Value Added Item or hot FMCG in the Strategic CP campaign, Informing the Retailers of Upcoming Promos
Earlier, Company Named Shopping Bag for High Volume Purchases, Sun Shed for the Shop, Sorting the
products/ brands properly (visibly) in the shelf, Dedicated company display shelf space, Corporate or specific
brand labeled T shirts, etc. The author found that many of the above mentioned ideas are still underutilized or
unutilized by many companies. Especially in rural and sub urban areas with low media reach, these brand
communication techniques are more directly visible and related to customers, retailers, and distributors
(Moslehuddin, 2010).
purchases (POP), like retail outlets and surroundings, for brand communication. The author personally visited
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(Suresh & Sathyanarayana, 2008) states that rural marketing has been witnessing a lot of action from both the
fast moving consumer goods (FMCG) sector and consumer products manufacturers but, there has been little
success in the manner in which rural research is carried out. Media efforts for rural markets are usually never
looked at seriously, ultimately, what matters, is how well the medium is utilized and what innovations can be
created to attract and retain brand attention. With the huge geographical spread of rural markets, decentralized
promotion would also synergize with scrotal development of pockets of the rural consumer base. Companies
must also turn to innovative methods of advertising like non-conventional or traditional media, fairs or haats to
reach their potential customer base. The most important element in rural communications is to integrate three
things as companies communicate: communication (of message), trial or demonstration (convincing) and final
sale. This proved to be extremely effective in advertising to the rural market. (Baneriji, 2005) reveals that the
rural markets have already overtaken urban markets in many categories of mass consumption branded goods in
terms of both volume and growth. He observes that a rural business organization in India is expected to
communicate with various cultural and language groups. Hence multilingual abilities become necessary on the
part of rural marketing and rural business personnel. He adds that many business executives in India often fail to
be successful because of the language barrier. He states that Haats provide a good opportunity for promotion
after brand building has been done at melas. (Archna, 2006) through her study found that residents of atleast
four villages visit Saunda Haat in Meerut district of Uttar Pradesh every Thursday, as do merchants from the
same villages. There are around 60 stalls in Haat selling everything from groceries to apparel to kitchenware to
fresh produce. Few of the brands which are familiar include Parle- G, tiger, Parachute and Lifebuoy. She further
adds that Saunda Haat is one of the 47000 that is serving the needs of around 70% of Indias rural population of
742 million. She concludes that despite constraints, the rural market especially for Fast Moving Consumer
Goods (FMCGs), apparel, footwear and fuel, is bigger than the urban market.
(Urvashi & Vijendra, 2010) surveyed the respondents who were in the age group of 21-30, literates, exposed to
media options, from rural and urban areas of NCR region, western Uttar Pradesh to find the factors affecting the
choice and preference of media vehicles among rural and urban population. Data was collected for 10 factors
Newspapers were found to be informative, reachable, believable, economical and attention seeking, (ii) TV was
found to be highly attention seeking, reachable, user friendly and helpful as a buying guide. But it also caused
wrong decision and exaggeration, (iii) Radio was considered to be economical, user friendly and reachable, (iv)
Internet was found to be informative, attention seeking and believable, (v) Magazines were considered
informative and believable, (vi) Movies were user friendly, but cause wrong decision and exaggeration, (vii)
Out of Home advertisements were economical and attention seeking and finally (viii) Mobiles as a media has
negative perception. Though it is considered User friendly, it is also exaggerated and misleading. (Pankaj &
Anurag, 2011) suggest that tie-ups with NGOs, Self Help Groups, Improving physical infrastructure and
stimulating the flow of market information can all help the marketers to cope up with the communication
challenges faced in reaching the rural consumer.
2.1. Right Media Mix for Positive Word of Mouth. The literacy scenario in rural markets shows a need for
special measures in promotion of brands. Due to the social and backward condition, personal selling efforts have
and 8 media options. Customer perception in rural segment for different media options were as follows: (i)
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a challenging role to play in this regard. The word of mouth is an important message carrier in rural areas. In
fact the opinion leaders are the most influencing part of the promotion strategy of rural promotion efforts.
Relevance of mass media is also a very important factor. Doordarshan has already acquired high penetration in
rural households. Now the cable and other channels have also penetrated in rural households. The Newspaper
and other printed media is also gaining importance but their role is still secondary in this regard (Hitendra et al,
2005). Research conducted among 250 rural consumers and 45 retailers in villages of Gujarat, indicates that the
rural retailer acts as an opinion leader and influences purchase decisions through Word of Mouth
communication and product display. Hence sheer product availability alone cannot determine brand choice,
volumes and market share. The relationship with local retailers must be maintained effectively. These retailers
play an important role in providing information regarding product features, quantity of pack available,
promotional schemes, POP display of print advertisements, consumer feedback, etc. They act as a bridge,
updating information to both rural consumers and companies (Naresh & Reshma, 2005). (Khare, 2008) state that
besides, TV & print media, nowadays marketers are opting for wall paintings, mobile vans and word of mouth
publicity with the help of opinion leaders to propagate their brand among the masses. To market its jeans,
Arvind Mills promotional effort included teaching tailors in villages to stitch the jeans. As the tailors are
opinion leaders for clothing, they became votaries for jeans and for the Ruf & Tuf brand.
Media being the carrier of the advertisement content, smart choice of media could clearly make a difference. A
medium should be selected on the basis of its reach and its associated cost. At the same time, the medium should
match with the brand characteristics. Hence, there are a number of alternatives available to an advertiser with
both merits as well as demerits. An advertiser should do cost-benefit analysis of the alternatives in media
strategy and media choice, so that it serves the purpose (Rai, 2008). Companies could acquire customers through
costly but fast-acting marketing investments or through slower but cheaper word-of-mouth process. Their longterm success depends critically on the contribution of acquired customers to the overall customer equity. An
application to a web hosting company reveals that marketing-induced customers add more short-term value but
word-of-mouth customers add nearly twice as much long-term value to the firm (Villanueva et al, 2008).
brand reputation (with appropriateness and expense measured within subjects). It was found that non-traditional
media enhance consumer-perceived value. The effects are greater for low-reputation brands, than for highreputation brands. The paper shows that non-traditional media enhance the consumer-perceived value of
marketing, and suggests that consumer-perceived value is important in generating purchase and word-of-mouth
intentions.
(Ajith, 2010) explains the term Urban Myopia and attempts to present a frame work named 3P Framework for
rural marketing in India. This model will not only help the marketing firm to develop innovative products for
rural markets but will help to align the CSR activities to its marketing activities. This will bring the rural
consumers into the value-net of the firm and help create innovative and green products. The 3P Framework
comprises (i) Push Approach where the products catering to urban consumers are pushed, without any
modification to rural folks through Rural Retail Outlets (RPO). It mainly aims at market penetration. Bharati
(Micael et al, 2009) conducted an experimental study of six (real) campaigns, manipulating media type and
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Airtel is found to adopt this method effectively. Push Marketing is very important in Kerala since it is the only
state in India with no uninhabited villages (Census of India 1991), thus reaching every RRO is crucial. (ii) The
Pull marketing mainly aims at communicating with the rural consumers and reduce disconnect between what
marketing firms offer and what rural consumers want. Vernacular advertisements, local opinion leaders and
ambassadors are used to communicate with rural consumers. The products sold in urban markets are modified as
per the preferences of rural consumers in various regions. Majority of the modifications are at the packaging
level (smaller packs).Pull marketing use media, melas and haats as the focal approach to target rural consumers to attract, educate and make them brand loyal. The promotional efforts aim at motivating rural consumers to buy
companys brands from the feeder markets or small towns where the companys products are made available.
Messages are designed keeping in mind the rural psyche and unconventional media. Pull Marketing is very
crucial in Uttar Pradesh and Bihar as they have 11,147 and 10,184 uninhabited villages respectively(Census of
India 1991).Gujarat and Rajasthan are the most media dark states of India(IRS 2001 Round 2).The reach of
media(TV + Radio + Press + Cinema + Satellite) is 41.1 percent and 41.4 percent respectively. Nonconventional media like Periodic markets, Melas, Wall paintings, Video-vans, Folk media, Rural sports,
Animal- parade will have to be used in the above states. HUL use street performers - magicians, singers, dancers
and actors-adjusting their scripts and acts based on the clientele the company wants to reach. Following a series
of street performances in northeastern India, the company saw public awareness of Breeze 2-in-1, its low-priced
shampoo-soap, increase from 22 to 30 percent. During a six-month period during 2005, it saw awareness of Rin
Shakti, a detergent bar, jump from 28 percent to 36 percent and finally (iii) The Pull Up marketing aims at cocreation and innovation which involves collaboration with various organizations (both Govt. and NGOs) as well
as close interaction with the rural consumers to understand their needs better, to empower them(create a source
of livelihood) and also to capture their knowledge, wisdom and innovative ideas in the form of green products.
Pull up marketing use empowerment (CSR) and Co-creation (DART) as the focal approach to target rural
consumers. Shakti is HULs rural initiative, which targets small villages with population of less than 2000
people or less. It seeks to empower underprivileged rural women by providing income-generating opportunities,
health and hygiene education through the Shakti Vani program, and creating access to relevant information
Frameworks, and face problems. They need to implement the missing component of the 3P Framework to
successfully capture rural market.
By 2017, per capita consumption of consumer goods in rural areas is expected to equal what is currently
witnessed in conurbans. The rural infrastructure program Bharat Nirman Scheme launched by Indian
Government in 2005 is the biggest in the world. In addition, its Employment Guarantee Scheme will ensure that
one member from every rural household will be given 100 days of paid employment. Many private banks are
opening in rural branches. All these situations provide huge opportunity for marketers, as the purchasing power
of rural consumer increases. He indicates that awareness of products or services on rural consumers requires
one-on-one communication and marketers must provide them with touch & feel experience through live
demonstration. India has 42000 regular markets (haats), each of which has around 300 stalls to which 5000
people repeatedly flock. He advises marketers to have distribution in larger villages and cites the example of
through the Shakti community portal. Many marketing firms are adopting just one or two components of the 3P
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Colgates Last Mile Distribution, where young male entrepreneurs sold the brand on bicycles at haats and
village shops (Kashyap, 2008).
3. Method. The study was conducted among rural areas of Coimbatore district in Tamil Nadu during the months
from May to September, 2011. The sampling method adopted was simple random sampling whereby six
villages namely, Pitchanur, Valukkuparai, Divansapudur, Bilichi, ZaminKottampatti and Pannimadai were
selected and 50 respondents from each village were interviewed using a schedule. The sample size for the study
is 300 respondents.
3.1. Study Objectives. The objectives of the current study can be listed as follows:
(1) To identify rural consumers exposure to different media vehicles.
(2) To understand the importance of Word of Mouth in influencing rural consumers purchase
decision with regard to personal care products.
(3) To analyze the variation across Gender, Age group, Educational levels, Occupational groups and
Income groups of rural respondents with regard to their media preference.
3.2. Results & Discussion. The demographic profile of the rural respondents is summarized (Table 1), which
highlights the lack of importance given to education as a cumulative 83.4% of the respondents fall under the
range from No formal education to School education.
TABLE 1: Demographic Profile of the Respondents
N (%)
Educational
N (%)
Qualification
Below
46
21 yrs
(15.3%)
21- 30 yrs
77
Nil
Primary Education
69
(23%)
41- 50 yrs
59
38
Under Graduation
11
60 yrs
(3.7%)
33
164
29
Post Graduation
Student
House wife
Course
(2.7%)
69
(23%)
Employed
29
(9.7%)
Business
50
(16.7%)
Farmer
(2%)
Professional
47
(15.7%)
(2.3%)
Diploma
11
(3.7%)
(9.7%)
(12.7%)
Above
None
(54.7%)
(19.7%)
51- 60 yrs
53
(11%)
Higher Secondary
N (%)
Groups
(17.7%)
(25.7%)
31- 40 yrs
Occupational
29
(9.7%)
Labour
60
(20%)
Others
5
(1.7%)
Age Group
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Total
300
Total
(100%)
Income
Group
(Annual
300
Total
300
(100%)
N (%)
Income)
Monthly
Personal
(100%)
Expenditure
Care
on
N (%)
Brand
Purchase
Below Rs.50,001
8 (2.7%)
Less than Rs.101
9 (3%)
Rs.50,001 to 100,000
79 (26.3%)
Rs.101 to 200
16 (5.3%)
Rs.100,001 to 150,000
99 (33%)
Rs.201 to 300
47 (15.7%)
Rs.150,001 to 200,000
65 (21.7%)
Rs.301 to 400
83 (27.7%)
Rs.200,001 to 250,000
32 (10.7%)
Rs.401 to 500
68 (22.7%)
Rs.250,001 to 300,000
9 (3%)
More than Rs.500
77 (25.7%)
Above Rs.300,000
8 (2.7%)
Total
300 (100%)
Total
300 (100%)
For the study, 15 media vehicles were taken into consideration and the rural consumers exposure to these media
vehicles (Figure 1) shows TV has reached a majority of 89% of the respondents, in the mass media category.
While the next form of communication that has the second major spread across rural folks is the Word of
Mouth. Further, the study focused on the Personal Care Segment. Though this falls under the convenience
goods category, the consumer often shows special interest in the products for his personal use and is more likely
to be well informed about the choices available to him in the market. The study intends to analyze whether the
interest to know about daily use personal care brands, holds good with the rural consumer also.
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37.3%
Sales Persons
6.3%
Direct Mail (leaflets, Phone)
87%
Word of Mouth
39.7%
POP Display
31.7%
Dealer
1%
Folk Media
21.3%
Van Campaign
Wall Painting/Poster
2.3%
Mandis
1.3%
13.7%
Haats & Melas
6.7%
Internet
54%
Press
12.3%
Cinema
27.3%
Radio
89%
TV
0
20
40
60
80
100
FIGURE 1: Rural respondents Exposure to different Media Vehicles

On contrary to the rural respondents Television exposure, Word of Mouth form of communication was found
to be the most preferred choice among rural respondents to get information on personal care brands before
deciding their purchase (Table 2). They trust the message from their opinion leaders more than mass media
vehicles like TV and Press, which take the second and third positions respectively. We also find poor use of
Campaigns and Wall painting have a relatively favorable preference among the rural folks.
TABLE 2: Rural Consumer Preference for Media Vehicles
MEDIA VEHICLES
MEAN
RANK
TV
1.89
Radio
1.20
Cinema
1.04
12
Press
1.55
Internet
1.04
12
Haats & Melas
1.06
11
Mandis
1.03
13
1.27
local media vehicles like Wall painting, Van campaigns, Mandis and Folk media, by the marketers, as Van
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Van Campaign
1.30
Folk Media
1.03
13
Dealer
1.42
POP Display
1.18
Word of Mouth
2.53
Direct Mail (leaflets, Phone)
1.11
10
Sales Persons
1.24
The importance of Word of Mouth form of communication is explained (Figure 2) by identifying the opinion
leader for the rural respondents. 35% of the rural respondents claimed that they do not seek advice from anyone
to decide their personal care brand purchase, the rest 65% of the respondents seek advice from a variety of
sources, among whom the contribution of shopkeepers is on the lead. It was also found that only 47.7% of the
respondents made their purchase of personal care brands from shops in town/city, while the rest 52.3% bought
from shops in their village. Thus we can understand the role played by shopkeepers as opinion leaders to rural
consumers.
35%
35
30
25
20
15
10
17%
13.7%
12.7%
9.3%
7.7%
4.7%
FIGURE 2: Source of Advice for Rural Consumers
When we look at the differences in preference for media vehicles between male and female respondents (Table
3), Women have more preference for television than men, as watching serials is a routine part of their daily lives
and commercials in between the soaps also reach them better. Men on the other hand prefer Press, Wall
Painting/poster and Word of Mouth forms of communication more, compared to their female counterparts.
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GENDER
MEAN
T VALUE
SIG. (2 TAILED)
Male
138
1.72
-3.383**
.001
Female
162
2.04
Male
138
1.15
-1.721
.086
Female
162
1.23
Male
138
1.07
1.721
.086
Female
162
1.02
Male
138
1.67
3.066**
.002
Female
162
1.44
Male
138
1.04
.011
.992
Female
162
1.04
Male
138
1.03
-1.809
.072
Female
162
1.08
Male
138
1.03
.205
.838
Female
162
1.02
Male
138
1.54
10.706**
.000
POSTER
Female
162
1.05
VAN CAMPAIGN
Male
138
1.33
1.037
.301
Female
162
1.27
Male
138
1.03
-.386
.700
Female
162
1.04
Male
138
1.43
.244
.807
Female
162
1.41
Male
138
1.21
1.153
.250
Female
162
1.15
Male
138
2.69
3.771**
.000
Female
162
2.39
Male
138
1.11
-.219
.827
(LEAFLETS, PHONE)
Female
162
1.12
SALES PERSONS
Male
138
1.22
-.553
.581
Female
162
1.26
TV
RADIO
CINEMA
PRESS
INTERNET
HAATS & MELAS
MANDIS
WALL
PAINTING/
FOLK MEDIA
DEALER
POP DISPLAY
WORD OF MOUTH
DIRECT
MAIL
*Significant at 0.05 level & **Significant at 0.01 level

H0, there is no significant difference in mean preference for each media vehicle between male and female
respondents is rejected for cases where T Value is significant.
TABLE 3: Summary of T - Test for Gender of Respondents * Media Vehicle Preference
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With regard to other demographic variables, the media preference showed significant differences with regard to
the media vehicles (Table 4). Mass media vehicles, except Cinema (TV, Radio, Press & Internet) and three of
the Personalized media vehicles (Dealer, POP Display and Direct Mail) were found to significantly vary across
age groups. Among the different Educational and Occupational groups of respondents, preference for all mass
media vehicles showed significant variation. Dealer was a more preferred media vehicle for illiterates and
respondents with primary education, while direct mail was preferred more by respondents with Post Graduation
and Professional education.
Media Vehicles
Age Group
Educational
Occupational
Income
(F Value)
Levels
Groups
Groups
(F Value)
(F Value)
(F Value)
TV
20.098**
15.146**
11.649**
3.419**
Radio
4.318**
5.762**
3.931**
2.629*
Cinema
1.629
2.752*
3.140**
.748
Press
4.473**
10.495**
4.822**
1.487
Internet
2.688*
25.649**
4.696**
6.878**
Haats & Melas
1.144
1.410
.921
1.628
Mandis
.765
.425
2.908**
.806
1.423
.610
6.088**
1.793
Van Campaign
.154
.934
2.501*
1.012
Folk Media
1.265
.740
.556
.703
Dealer
7.224**
4.141**
4.870**
2.730*
POP Display
6.430**
.530
2.462*
.636
Word of Mouth
1.807
1.714
1.147
2.482*
2.442*
10.925**
2.018
3.380**
.841
.641
2.170*
1.151
294
293
292
293
299
299
299
299
Direct Mail (leaflets,

Phone)
Sales Persons
Degrees of
Between
Freedom
Groups
Within
Groups
Total
*Significant at 0.05 level & **Significant at 0.01 level

H0, there is no significant difference in mean preference for each media vehicle across different demographic
groups is rejected for cases where F Value is significant.
In the occupational category, Labor and farmer groups had more preference for local media vehicles namely
Mandis, Wall Painting/Poster and Van campaign as they were often in the field and these local media options
TABLE 4: Summary of One Way ANOVA for Media Preference Across Demographic Variables
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have a lasting impression in their minds when delivered in local language/slang. Preference for Dealer, POP
display and Sales persons were also found to vary significantly among different occupational groups. While
preference towards TV, Radio, Internet, Dealer, Word of Mouth and Direct Mail options were found to vary
significantly among the different Income groups of rural respondents.
Preference for Word of Mouth form of communication does not show any significant variation across the age
group, educational levels and occupational groups of respondents, but among the educational groups,
respondents withless than 1 Lakh annual income were more influenced by shopkeepers and respondents in
income groups of above 3 lakh per annum were more brand consicious and consulted Doctors and Educated
Relatives to purchase a better brand. They often opted for premium brands like Dove, Garnier, Amway
products, Himalayas, etc. Similarly, Men preferred to purchase personal care brands suggested by their family
member (Table 3) and thus family acted as Word of Mouth means of communication to them.
3.3 Implications of The Study. Word of Mouth form of communication plays a vital role in rural consumer
purchase decisions and the opinion leaders are usually local retailers and educated relatives, who provide
information and suggest personal care brand to the rural consumers. Men are mostly influenced by Print media
and Word of Mouth communication from family, friends and relatives, when it comes to purchasing personal
care brands. Though penetration of TV is increasing, the urban targeted communication spills over to rural
consumers and there are few advertisements which are in local slang that could be easily understood by the rural
audience. Further, low educational background of rural folks; make recall of modern personal care brand names
difficult. They often tend to ignore the urbanized commercials in between programs. This calls for innovative
media-mix on the part of marketers to tap the potential of hinterland
The study shows a clear under-utilization of local media vehicles especially wall painting/posters which is both
economical and registers effectively in the minds of rural audience, generating a positive word of mouth
influence. The folk media is completely untouched in the rural parts of Coimbatore district. Local newspapers
newspaper advertisements, followed by some fairness creams like Vicco, Fairever, etc. Radio as a medium is
gaining popularity among youth, who often listen to the FM channels in their mobile using headphones.
Personal Care brand advertisements are very limited in Radio used by some local personal care brands. Local
retailers must be given sufficient attention as they are the key influencers of rural consumer who are illiterate
and daily wage earners. These retailers can effectively communicate the brand message in local slang and also
help in dealing with pirate brands. Further, the premium brands like Amway and others have ample market
among the high income group of rural consumers, who are willing to acquire premium quality personal care
brands. Hence Direct Marketing efforts must be enhanced to penetrate this segment of the rural market. It is
high time; marketers fill these gaps in media usage and generate a positive word of mouth in the emerging
markets.
and Radio have not been considered much. Vivel brand of soap from ITC is better recognized for their
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4. Conclusion. Rural people are often slow to adopt, but at the same time slow to give up when they start
preferring a brand (Malli, 2009). Pioneering marketers have used innovative means of creating their own
channels. Hindustan Unilever's micro marketing program in India tapped into women's Self Help Groups to
reach consumers in inaccessible rural markets. Besides selling products these women help transmit brand
communication within rural communities. Many marketers use publicity vans, which travel to remote and
scattered communities with portable communication devices (audio visual shows, live demos etc). Colgate has
created a powerful touch point with its Oral Health Program, which draws rural consumers who are lured by the
promise of a 'free oral check up'. The program provides Colgate with a captive audience for communication,
trial and brand building. These two companies have already reaped the fruits of rural marketing through their
first mover advantage and positive word of mouth generation about their brands. Word of Mouth
communication rules brand building in Hinterland and the marketers foraying into it must focus on a long term
effect and decide on innovative and feasible media options to capture the mind space of rural consumers.
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EVALUATION OF CONSUMER PROTECTION COUNCIL WITH SPECIAL REFERENCE TO
ERODE DIRSTRICT
N.A.Krishnamurthi1 and K.M. Suresh2
1
Associate Profeesor, Department of Corporate Secretaryship,Erode Arts and Science College

(Autonomous),Erode.
2
Research scholar, Bharathiar University, Coimbatore.
1 INTRODUCTION
India is a vast country where a majority of consumers are poor, helpless and disorganized. Further, the
Market in India is generally a sellers Market and it is very easy to cheat the innocent consumers. It is now
realized that a common consumer is neither knowledgeable nor well-informed. He/she needs support and
protection from the unscrupulous seller. A common consumer is not in a position to approach a civil court.
Quick, cheap and speedy justice to his/her complaints is required. The biggest help in this direction has come
from the Government. The Central Government enacted a Law known as The Consumer protection Act, 1986.
Consumer protection council is a social movement which seeks to protect and argument the rights of the
consumer in relation to the producers.
The following are the rights of the consumers:
Right to safety
Right to be informed
Right to choose
Right to heard
Right to redress
Right to consumer Education, etc But many of the consumers are ignorant of these rights.
The consumer protection Act provides an opportunity to the consumer to approach a court if there is
levied from 2004 onwards. At the district level each state has established a consumer Dispure Redressal Forum
known as District Forum, while at the state level it is called Rashtriya commission or state commission. The
all India Forum is known as National Commission for consumer welfare.
2. STATEMENT OF THE PROBLEM
The consumer has been considered as the king in a free market economy. A free market economy
largely permits the evolution of consumer sovereignty by allowing consumers to express their preferences and
tastes as between goods and services. However, in India, sovereignty of the consumer exists only in theory but
not in practice. Even in the so called affluent and highly competitive economies, the consumer is not a king and
in countries like India, where seller market exists, he is no where near a king without the privy purse.
Consumers are being exploited by the middle men and manufacturers, since time immemorial.
any lapse in the quality of the a articles or services. He need not pay any fees to the court, but nominal fees is
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Majority of the consumers in the study area are illiterate, residing in rural areas with low standard of
living. They are ignorant about the impliciations in trade and price policies adopted by the traders, which
directly affect on their condition and health. Most of the consumers have a lethargic attitude. The consumers in
the town areas are comparatively more vigilant and authority contains the grievances whereas the rural people
are totally unorganized and ignorant and they do not create enough pressure for the administration to look after
their interests. It is a fact that even the urban consumers are not alert and beyond the clutches of businessmen.
As the purchasing capacity of most of consumer is at a low ebb, they do not thing it terms of the quality of the
goods. Seldom the consumer insists upon businessmen for standardized product as they are totally unaware
about their rights. For most of the consumers, it hardly matters whether the product is marked ISI or Agmark, or
not marked at all.In view of the widely prevalent consumer exploitation in India, the government has brought
out a number of statutory regulations to protect the consumers interest. Unfortunately, these measures are not
effectively working towards consumer protection due to multifarious reasons. Widespread illiteracy, poverty,
ignorance of consumers legitimate right and lack of organized efforts to check the market evil are among the
major factors contributing to the plight of the consumer in our country. Most of the rural poor live below the
poverty line and therefore are busy just keeping themselves alive. The mere struggle for survival uses up all
their energies. They have neither the time nor inclination to think of their rights. The literate and educated
consumer feels helpless before the might of the exploiters and therefore acquiesces to his condition.
3.OBJECTIVES OF THE STUDY
1.
To study the origin and development of consumer protection movement
2.
To study the problems and the services of consumer protection council.
3.
To suggest better ways and means for effective functioning of consumer protection council and union
consumer protection councils.
4. METHODOLOGY
The study used both primary and secondary data. The primary data was collected from the members of
the consumer protection council. For this purpose a field survey was conducted comprising 400 respondents of
used to collect first hand information from the selected sample respondents. The interview schedules were
prepared with the help of the guide, judicial officials and experts in the field of consumer protection council.
Field survey technique was adopted to collect pertinent information from the members of consumer protection
council. Twenty consumer protection councils were selected for the purpose of the study. The researcher
personally visited each and every respondent for this purpose after establishing a good rapport with them. The
same style of data collection was used to collect information from all the union councils located in the different
places of the study area.
The secondary data was collected from the records maintained by the union councils and the district
consumer court in the study area.
SAMPLING DESIGN
For collecting primary data, field survey technique was undertaken in the study area. First, for the
purpose of the study twenty consumer protection councils in the study areas were contacted in person and the
the Erode district. The respondents were chosen by simple random sampling method. Interview schedules were
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data were collected as per the requirement. These twenty consumer protection councils were contacted with a
view to ascertain their role in the effective functioning of consumer protection council. The study was held for a
period of six months. The details of Location of all the consumer protection councils of the study are depicted in
the following table.
TABLE NO.4.1
Details of consumer protection councils in the study area
Name
of
village/town
the
Number of union consumer protection

councils
Anthiyur
Arasur
Ayyampalayam
Bhavani
Bhavanisagar
Chithode
Chennimalai
Erode
Gobichettipalayam
10
Kavindapadi
11
Kanjikoil
12
Kodumudi
13
Modakurichi
14
Nambiyur
15
Perundurai
16
Salanga palayam
17
Sathiya mangalam
18
TN palayam
19
Thalavadi
20
Vellankovil
Total
20
First-hand information pertaining to the behaviour, satisfaction and problems in utilizing consumer
protection council for claiming compensation from the concerned service organization through consumer
protection council and the data were collected from four hundred members of the consumer protection council.
The respondents Council at the rate of twenty each. The selection of respondents was made in active
consultation with the Research Guide and office bearers of the consumer protection Council, So as to represent
all categories such as rural, urban, rich, poor, educated and illiterate. The respondents were selected on a simple
random basis from the list of members maintained by the consumer protection council office bearers.
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TOOLS OF DATA COLLECTION
By virtue of Mass data obtained from survey research, as well as data of secondary sources collected
and presented in the thesis, a descriptive analytical research was done, since it is considered as most appropriate
for the study. The research problem, questionnaire and interview schedule were all framed accordingly. The
research report emerged from the inferences drawn by using simple statistical analysis among the data collected
from the consumer protection council and the selected sample respondents. The data codified electronically have
been analysed with the help of several statistical tools such as Multiple regression analysis, Discriminant
Function Analysis and Henry Garret ranking techniques.
5.REVIEW OF LITRATURE
Hassan (1974) in his study entitled Contemporary consumerism- An Indian appraisal states that
consumerism as movement would remain a weak slogan as long as public confidence is not restored in the
administrative and enforcement machinery of the Governments and as long as voluntary public operation
remains shy. He also emphasizes that it is not only the consumer who should be conscious of his rights or the
producer and the marketer who should be mindful of their duties and responsibilities but it requires an
incorruptible machinery to enforce the measure adopted and a very watchful the public to discourage the wrong
doer, so that the consumer feels safe.
Pat Tucker (1976) in his study entitled Consumer reports in USA describes the role played by the
consumers union in United States. Consumers Union in U.S. grew to become the giant in its field. It provides an
extensive series of manuals and other instructional materials for courses in consumer education, and it produces
Radio and TV Programmes on consumer topics. It Co-Operates with local and state consumer organizations as
well as the Consumer Federation of America, and contributes financially to grants and fellowships for research
on consumer problems. It testifies before legislative committees and Government bodies in consumer issues,
and it opened a new office in Washington to step up its monitoring and litigation efforts on behalf of the
consumer.
Gupta and Lodha (1976) in their study entitled Consumer protection need for the stringent measures,
suffered at the hands of businessman in one form or the other. He adds that the consumer awareness is high in
the western countries like USA as compared to India. In our country, the consumer at large is apathetic. No
amount of legal aids can protect an indifferent consumer. It is only a strong consumer movement that can be
effective. The voice of an individual is always lost in the wilderness. There is an urgent need for a network of
really effective consumer association in the country safeguard the interests of the consumers. They should
develop their own laboratories, arrange the tests for consumer articles and publish their findings as is being done
in developed countries. Consumers own involvement to protect themselves, is a must in to statutory measures.
Machhindra K.Ghadage (1976) in his study entitled Consumerism in banking emphasizes consumers
awareness on service oriented organization such as banking, insurance, hospital, etc. The author states that
consumer movements are indications of customer consciousness on one hand and sellers indifference towards
state that the consumer sovereignty has remains an Utopia and consumers all over the world have grossly
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customers through his products and service on other hand. The findings are arrived based on the sample survey
of one hundred and fifty customers of different public sector banks.
Mohammed Afifi Hamouda (1977) in his study on consumer protection in underdeveloped countries
emphasizes that the consumers are not fully aware of the rights and the movement of consumer protection
councils. The survey covered a sample of 2500 families in Kuwait from various strata of the society. Out of the
selected sample survey it is noted that fifty percent families are not aware of consumer protection aspects.
6. ANALYSIS AND INTERPRETATIONS
TABLE NO: 6.1
MULTIPLE REGRESSION ANALYSIS - LEVEL OF UTILISATION
OF THE CONSUMER PROTECTION COUNCIL
S.
No.
Sig
22.685
.000
-.010
-.196
.845
NS
.260
-.163
-3.208
.001**
1.10
.300
.006
.115
.909
NS
2.29
.611
-.009
-.186
.852
NS
2.44
.531
.066
1.265
.207
NS
Std. Deviation
(Constant )
33.158
5.579
Age
2.385
.8768
Sex
1.07
Marital status
Community
Educational
Standarised
coefficients
Beta
t-value
Mean
S/NS
qualification
Occupation
2.86
.908
-.195
-3.867
.000**
Annual income
1.40
.539
.089
1.688
.092
NS
Place
2.08
.752
.113
2.230
.026**
Size of the family
10.50
5.774
-.047
-.968
.334
NS
** - Significant at 1% level * - Significant at 5% level

8.936 p-value 0.000
NS - Not Significant
S Significant F-Value
The table gives the variables included in the equation corresponding regression co-efficient and simple
correlation value of each predictor variable with the dependent and partial correlation of each variable with that
of dependent variables. Partial correlation is another important statistic which tells us what is the correlation of
the each predictor variable with that of satisfaction value in the equation concerned, when the effect of
remaining other predictor variable is held constant. In the same table, the table indicates that the coefficient of
place are positively associated with the level of satisfaction towards consumer protection council. On the other
hand the co efficient of
sex and occupation are negatively associated. It indicates that sex, occupation and
place are statistically significant implying their influence on level of satisfaction is stronger than other variables.
Variables
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R2 is calculated to ascertain the goodness of fit of the regression equation. The R2 has been found to be
significant at 1 per cent level.
6.2DISCRIMINANT ANALYSIS FOR THE PROBLEM UNDER STUDY
Discriminant function analysis involved classification problem also to ascertain the efficiency of the
discriminant function analysis all the variables which satisfy the entry and removal criteria were entered into the
function. Normally the criteria used to select the variables for inclusion in the function is minimum F to enter
into the equation (i.e) F statistic calculated for the qualified variable to enter into the function is fixed as 1.
Similarly any variable entered in the equation will be removed from the function if F statistic for the variable
calculated is < 1. The two groups are defined as
Group 1 -
Low level And Group 2 -
High level
The mean and standard deviation for these groups and for the entire samples are given for each variable
considered in the analysis.
TABLE NO: 6.2 GROUP MEANS (BETWEEN LOW AND HIGH GROUPS)
Low
S.
No
High
Total
Mean
SD
Mean
SD
Mean
SD
Age
2.3744
.89579
2.3951
.86033
2.3850
.87675
Sex
1.0718
.25881
1.0732
.26105
1.0725
.25964
Marital status
1.0615
.24093
1.1366
.34425
1.1000
.30038
Community
2.2462
.56616
2.3366
.64844
2.2925
.61064
Educational qualification
2.2872
.45361
2.5805
.55977
2.4375
.53085
Occupation
3.1436
.90240
2.5854
.82769
2.8575
.90788
Annual income
1.2308
.43444
1.5561
.57991
1.3975
.53872
Place
2.0256
.74222
2.1220
.76039
2.0750
.75219
Size of the family
10.7282
5.15762
10.2829
6.30888
10.5000
5.77350
The overall stepwise D.F.A results after all significant discriminators have been included in the estimation of
discriminated function is given in the following table.
TABLE NO: 6.3 SUMMARY TABLE BETWEEN LOW LEVEL AND HIGH LEVELGROUPS
Step
Variables entered
Wilks Lamda
.905
Occupation
.865
Annual income
.842
Minimum D2
.623
.600
.591
p-value
S/NS
.000**
.000**
.000**
NS - Not Significant S Significant
Factor
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The summary table indicates that variable educational qualification entered in step 1, occupation
entered in step 2 and annual income entered in step 3. The variables such as educational qualification,
occupation and annual income are significant at 1 per cent significance level. All the variables are significant
discriminators based on their Wilks lambda and D2 value. The multivariate aspect of this model is given in the
following table.
TABLE NO: 6.4CANONICAL DISCRIMINANT FUNCTION
(BETWEEN LOW AND HIGH GROUPS)
Canonical correlation
Wilks
Lamda
Chi -square
D.F
Sig
.398
.842
68.265
.000**
S/NS
S
NS - Not Significant S Significant
The canonical correlation in the discriminant group can be accounted for by this model, Wilks lamda and
chi square value suggest that D.F is significant 1
percent level significance.The variables given above are
identified finally by the D.F.A as the eligible discriminating variables. Based on the selected variables the
corresponding D.F coefficients are calculated. They are given in the following table.
TABLE NO: 6.5DISCRIMINANT FUNCTION COEFFICIENT
(BETWEEN LOW USER AND HIGH GROUPS)
.841
Occupation
-.555
Annual income
.949
(Constant)
-1.789
Z = -1.789
+ .841 (Educational qualification)
-.555 (Occupation)
Using this D.F coefficients and variables discriminating scores for 2 groups are found out and are
called group centroids or group means
For low level user
(Z1) = -.443
For High level user
(Z2) = .422
Discriminating factor is the weighted average of Z1, Z2

(195x Z1) + (205 xZ2)
(.i.e) Z =
It is represented diagrammatically
195+205
+.949 (Annual income)
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Z1
-.443
Z2
+.422
Low level
High level
Thus to classify any respondent as to low or high user the Z score for the respondent is found out by
using the equation. If the score found out for any respondent is Z0 and if the value is > Z (i.e. Z0 > Z) then it is
classified into high user and if Z0<Z then (i.e. Z0<Z) it is classified into low user.
Now the questions remain to be answered are
1.
How efficient are the discriminating variables in the D.F.A?
2.
How efficient the D.F itself is?

The first equation cannot be answered directly however the discriminating power or the contribution of
each variable to the function can sufficiently answer the question. For this consider the following table
TABLE NO: 6.6 RELATIVE DISCRIMINATING INDEX

(BETWEEN LOW USER GROUP AND HIGH GROUP)
Occupation
Annual income
2.287
3.144
1.231
Total
Group II
Mean X2
Unstandarised
coefficient
2.581
.841
Ij=ABS (Kj)
Mean (Xj0Xji)
0.247
2.585
-.555
0.310
35.84
1.556
.949
.308
35.61
.865
100
Rj=Ij/sum
Ijj*100
28.55
For each variable the respective D.F coefficient its mean for each group and Rj are given. Rj called
relative discriminating index is calculated from the discriminant function coefficient and group means. Rj tells
how much each variable is contributing (%) to the function. By looking at this column one education is the
discriminating variable and the family income the least discriminating variable.The second question is answered
by reclassifying the already grouped individuals into low or high level using the D.F (Z) defined in the equation.
This classification is called predictor group membership .In short the efficiency of the D.F is called
predictor group membership. In short the efficiency of the D.F. is how correctly it predicts the respondents into
distinct groups.
Group I
Mean X1
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Actual group
TABLE NO: 6.7 CLASSIFICATION RESULTS

(BETWEEN LOW USER GROUP AND HIGH USER GROUP)
Predicted group membership
No. of cases
Group I
Group II
Group I
Group II
118
77
60.5%
39.5%
60
29.3%
145
70.7%
195
205
Per cent of grouped case correctly classified: 65.8 per cent

The above table gives the results of the re classification. The function using the variables selected in
the analysis classified 65.8 per cent of the cases correctly in the respective groups. It is found that the
Discriminant function analysis was applied to the respondents on low user and high user. The following factors
significantly discriminate the two users. They are Educational qualification, Annual income and Occupation
(1% per cent level).
6.8 PROBLEMS FACED BY CONSUMER PROTECTION COUNCILS
There are number of problems faced by consumer protection council. Some of the problems idenfied
are lethargic attitude of consumers, lodging complaints without evidences, unable to force the court for speedy
disposal of cases, no consumer court at taluk level, seeking irrelevant information by the members, disturbing
the office bearers with the repeated questions, illiteracy ignorance, lack of proper organisation etc. the union
councils were asked to rank the problems faced by them according to the magnitude of the problem. The
following table shows a clear picture of the problem faced by the union councils. Henry Garret ranking
technique was used to identify the ranks.
TABLE NO: 6.8RANK FOR PROBLEM FACED BY YOUR CONSUMER PROTECTION COUNCIL
FACTORS
TOTAL
MEAN
SCORE
SCORE
RANK
Lethargic attitude of the consumer
1535
76.75
Lodging complaints without evidences
1398
69.90
II
Unable to force the court for speedy disposal of cases
708
35.40
VII
No consumer court at Taluk level
424
21.20
VIII
Seeking irrelevant information by members
823
41.15
VI
Disturbing with the repeated questions
962
48.10
Illiteracy ignorance
1193
59.65
III
Lack of proper organization
972
48.60
IV
Source: Primary Data

The above table 6.8 reveals the ranking of problem faced by your consumer protection council.
Lethargic attitude of the consumer was ranked first by the selected sample respondents with the total score of
1535 and mean score of 76.75. Lodging complaints without evidences was ranked second with the total score
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of 1398 and mean score of 69.9. Illiteracy ignorance and Lack of proper organization occupied third and
fourth position with the total score of 1193 and 972 and mean score of 59.65 and 48.6 respectively. Disturbing
with the repeated questions was ranked fifth with the total score of 962 and mean score of 48.1. Seeking
irrelevant information by members occupied sixth position with the total score of 823 and mean score of 41.15.
Unable to force the court for speedy disposal of cases and No consumer court at taluk level occupied seventh
and eighth position with the total score of 708 and 424 and mean score of 35.4 and 21.2 respectively. It is
evident that most of the respondents gave top priority to Lethargic attitude of the consumer as the first rank
for of problem faced by your consumer protection council.
7. SUGGESTIONS and CONCLUSION:
1.
Giving wide publicity to these provisions of Consumer Protection Council Act, 1986 through the media
like press, TV, Radio and public meetings are very much essential to create awareness among the
public.
2.
Providing the Consumer education, lectures, Seminars, dramas, folk arts, street plays, posters,
pamphlets, and books, may create consumer consciousness, discerning shopping skill and make them
assertive of their rights.
3.
Consumer rights and responsibility may be included in the school level syllabus starting from fifth
standard onwards. The curriculum should be spread over primary sections and it will help students to
learn the basic concepts of consumerism, the students who enter into higher secondary classes are
required to study the laws and regulations pertaining to Consumer Protection.
4.
Establishment of mobile Consumer courts and offices of settlement commissioners for free, easy and
speedy means of legal redressal to aggrieved consumers is a must.
5. No, pain, no gain, is the right technique for Consumer protection. The Consumer must be aware of his
basic rights and should fight for these rights. The famous principle of Caveat emptor- Let a buyer beware
- must be replaced by Caveat Venditor- Let a seller beware- by strong determination on Consumer side..
A Voluntary activity is an activity in which people contribute their time and energy without compulsion.
The people in the Voluntary Organization should work with a spirit of dedication and fight for a common
should work and render their services to meet specific goals which are important for the consuming society
as a whole.
References:
[1] Hassan, N.Contemporary Consumerism- An Indian Appraisal, Indian Journal of Marketing, Vol.4, No.
7-8, March April 1974.
[2] Gupta, U.I and Lodha, S.S. Consumer Protection Need for stringent measures, Indian Journal of
Marketing, Vol.6, No.2, Auguest 1976.
[3] Machhindra K.Ghadage, consumerism in Banking, Indian Journal of Marketing, Vol.11, No.3,
November 1976.
[4] Mohamed Afifi Hamonda, consumer protection in under developed countries, Indian journal of
marketing Vol. V111, no.1, September 1977.
cause which is in the interest of the entire society, with the same objective the Voluntary organizations
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