“Marketing management 12e-Analysing consumer markets” by Philip Kotler states that perceptions are more important than reality and it affects the consumers actual behaviour.Perception is defined as the process by which an individual selects,organizes,and interprets information inputs to create a meaningful picture of the world. “Online stock trading in India: An empirical investigation”
In 2007,Nidhi walia and Ravinder kumar’s research report examined the investor’s preference for traditional trading and online trading, investor’s perception on online trading and comparing current usage of online trading and offline trading. This study reveals that out of every 100 investors only 28 trade online, which points out a question as why investors were not able to realize the importance of technology in stock trading.
Online trading has gained momentum from just 0.5% of total traded volumes 5 Years back, which now accounts for 5% of the total trading volume of approximately Rs 14000 Cr on NSE. Over the past 2 years, the value of all trades executed through internet on NSE has grown from less than Rs 100 cr in June 2003 to over Rs 700 Cr in June 2005.
The major findings of the study are that Indian investors are more conservative, they do not change easily and indian traditional traders still choose brokers for trading ,whereas net traders are more comfortable with online trading for its transparency and complete control of the terminal.
