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Showing posts with label strategy. Show all posts
Showing posts with label strategy. Show all posts

INFLUENCE OF REVIEWS ON PURCHASING DECISIONS



INTRODUCTION 

The internet has enabled customers from just mere objects to powerhouses who are capable of sharing his or her experiences, opinions about product or services with an infinite number of consumers around the globe. experiences, opinions about product or services with an infinite number of consumers around the globe. The essential wellspring of data about any item is the web. In this digitized world, the greater part of the buyers have selected it and it has radically affected their purchasing conduct. With the presentation of the electronic stage like the web, the data has not remained the manikin of the media of substantial aggregate business houses. In the past the buyer was in every case less educated due to the restricted wellspring of data but since of digitization and web-based shopping the customer has had the capacity to change himself from a detached purchaser to a functioning and an educated shopper. Potential clients constantly will in general purchase those items about which a current information of its utilization, quality and different subtleties are accessible from different buyers who have just purchased and utilized the item. In customary occasions individuals used to get some information about an item and its notoriety in the market and on that premise settled on their choices of either purchasing the item or not. This was the principal created idea of the alleged Traditional Word of Mouth. Be that as it may, the present world lives in the time of digitization where individuals neither have sufficient energy nor would they like to invest a push to ask individuals the required data on their interest. So as to build the clearance of any item the venders offering their items to be sold by means of web have built up a free showcasing instrument and have given its control in the hand of the purchasers. 

Online surveys are omnipresent, and nearly everybody who utilizes an application or surfs the web experiences them constantly. This wide utilization differs essentially to the pre-computerized age. Rather than master analysts, there's another type of publicly supported audits that individuals use to settle on obtaining choices. 



This new time replaces Word of Mouth and master analysts and puts the power in the hands of the group. The majority of this accentuations raises the inquiry, how do these surveys impact customers? 

The inquiry is sufficiently pivotal that few examinations exist to investigate the issue. 




Does Positive or Negative Feedback Impact Purchasing Behavior? 
Do these signs, both great and awful, really influence and educate the purchasing procedure? Concentrates that endeavor to discover the appropriate response show blended outcomes. One such research proposes that eBay clients disregarded negative criticism and just decidedly remunerate postings with more expensive rates just barely when it was certain. In any case, the accord is by all accounts that higher input implies more deals and higher edge. A certain amount of negative reviews are expected, even for top-quality products. There’s no avoiding it in the real world, and people expect there to be some present. Most likely, they’ll read the reviews, and it will help them make a final, balanced purchasing decision. If the feedback were entirely positive, the result would probably be that the person was suspicious of the positive reviews.

Shoppers Value Reviews on Trustworthy Sites 
Buyers now also judge the general trustworthiness of the site. In a sense, the most favorable reviews tend to be on an authoritative website, are recent, and help put the purchase in a proper context. Supporting materials, such as demonstrations, and testimonials also help boost sales. Companies that sell online are aware of these conclusions and are continually seeking to boost participation from customers. As they do, the overall quality of the data set improves and so does the trustworthiness. An emerging trend shows four primary factors in product ratings and reviews that are helping to drive sales. 
Recency – The newer, the better 
Consistency – Do product reviews and rating touch on similar themes? 
Supporting materials – There’s an increasing emphasis on image galleries, video uploads, and 
explanatory material that helps the general review. 
Authority – Is the site itself authoritative? If shoppers can trust the review system, they place 
more value on the feedback. 
9 out of 10 Internet Users Trust Reviews 
Constant Contact said that 90% of internet users use reviews as part of their decision-making process. With such a wide footprint, the area receives a lot of attention for e-tailers and small businesses. This study shows that people don’t just take into account marketplace and website reviews, they also place weight on social media reviews. Facebook and Twitter pages collect feedback which also influences purchasing in a multi-channel environment. 

Additional Information Is Gaining in Popularity 
Most commercial centers presently offer ways for clients to transfer audits and pictures to reinforce their surveys. These convey high esteem since they take into consideration exact clarifications of why a client may grumble or what they cherish most about an item. Those kind of explanatory materials include esteem and help the buys choose in light of the fact that they offer supporting data. A grumbling about how something doesn't function with an explainer video has an effect, thus do the ones where individuals demonstrate the item working for them. 

This sort of input has turned out to be so important in the purchasing procedure, that most traders offer motivations to clients for their commitments. The blast in internet shopping implies information gathering is expanding exponentially. Some portion of that is evaluations and audits, which include setting for the individuals who are searching for an end to their exploration. 

Buying Decisions
The number of online consumers who read and trust online reviews is increasing. According to a survey by Bright Local, 88 percent of consumers trust online reviews as much as a personal recommendation—which is astounding, considering most percent of the population did not regularly read reviews for consumer products. They online reviews are posted by total strangers. The same survey found that only 12 want to help them make their buying decisions. 

On-site Ranking Benefits organic search rankings in search engines. For starters, each new review written Enabling customer reviews on your site can have a positive effect on your company’s about a product on your site increases the amount of unique content your site offers site so Google  -1.3% can index them directly and hold them as possible on that product, meaning you’ll be seen as having higher authority, more relevance, and, as such, a higher chance of getting those pages ranked.

Off-site Ranking Benefits“rich answers” for user queries. Ostensibly, this would allow a review of your product to be featured above the fold of normal search results for queries specific to the product in question, giving you even more search visibility. 
directories and review sites, such as Yelp and TripAdvisor TRIP -0.81% . These The number of positive reviews you have on external websites might actually have a bigger impact on your rankings than the reviews on your own site. This is because Google’s local search algorithm incorporates data from a number of third-party affect whether or not a consumer considers pursuing your brand in general. sites tend to review entire businesses, rather than specific products, but this is what’s responsible for the higher impact. Rather than an aggregate review influencing a buyer’s decision regarding a single product.

CONCLUSION.

If you’ve ever bought anything online, you’ve encountered a typical online review. You might have found an aggregated “star” rating for a product you wanted to buy, or a poorly-spelled review about one user’s traumatic experience with it. Though customer reviews range in thoroughness and comprehensibility, they do hold a powerful effect on the behavior of your audience—and therefore, the performance of your brand. Can the quantity or quality of the reviews you receive have that big of an impact on your company’s bottom line?

Capital Market & Portfolio Investment - stock

Capital Market & Portfolio Investment


INTRODUCTION
The term capital market broadly defines the place where various entities trade different financial instruments. These venues may include the stock market, the bond market, and the currency and foreign exchange markets. Most markets are concentrated in major financial centers including New York, London, Singapore, and Hong Kong.

Capital markets are composed of the suppliers and users of funds. Suppliers include households and the institutions serving them—pension funds, life insurance companies, charitable foundations, and non-financial companies—that generate cash beyond their needs for investment. Users of funds include home and motor vehicle purchasers, non-financial companies, and governments financing infrastructure investment and operating expenses. Capital markets are used to sell financial products such as equities and debt securities. Equities are stocks, which are ownership shares in a company. Debt securities, such as bonds, are interest-bearing IOU.

These markets are divided into two different categories: - 
Primary Markets where new equity stock and bond issues are sold to investors and Secondary Markets, which trade existing securities. Capital markets are a crucial part of a functioning modern economy because they move money from the people who have it to those who need it for productive use. 

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.

STOCK EXCHANGE
A stock exchange is an exchange (or bourse) where stock brokers and traders can buy and sell shares of stock, bonds, and other securities. Many large companies have their stocks listed on a stock exchange. This makes the stock more liquid and thus more attractive to many investors. The exchange may also act as a guarantor of settlement. Other stocks may be traded "over the counter" (OTC), that is, through a dealer. Some large companies will have their stock listed on more than one exchange in different countries, so as to attract international investors.

Sample : govt stocks are good for long term (defence , energy - basic essential), so many pvt companies also good for long and short term. everything oriented in risk. 

TRADE
Trade in stock markets means the transfer (in exchange for money) of a stock or security from a seller to a buyer. This requires these two parties to agree on a price. Equities (stocks or shares) confer an ownership interest in a particular company. Participants in the stock market range from small individual stock investors to larger investors, who can be based anywhere in the world, and may include banks, insurance companies, pension funds and hedge funds. Their buy or sell orders may be executed on their behalf by a stock exchange trader.

How to invest in share market?
Demat and Trading Accounts:
what you have to do to invest in the share market? Firstly, open a demat and trading account online with a broker and link your bank account with that. Opening demat account is a very simple and easy process. Once you have your demat and trading account, you can start investing in the Indian share market. It’s essential for you to be familiar with the stock exchanges and their functions. Stock exchange is where buying and selling of shares take place. The stock exchanges are regulated by SEBI (Securities and Exchange Board of India). The 2 important stock exchanges of India are NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
goals: -
• Define your life goals
• Learn about financial assets
• Choose the respective asset as per your need
• Start investing regularly
• Fulfill your goals

Difference between NSE and BSE
  • Founded in :- 1992, 1875
  • Benchmark Index :-  Nifty, Sensex
  • Total companies in Index :- 50, 30
  • Known as:- The largest stock exchange, The oldest stock exchange
  • Number of listed companies :- 5000+, 1600+
  • MD & CEO:- Mr. Ashish Kumar Chauhan, Mr. Vikram Limaye
  • Trading volume :- Higher, Lower than NSE

National Stock Exchange (NSE) was founded in 1992 and is in Mumbai. Electronic trading platform was first introduced by the NSE. Nifty50: Nifty is the abbreviation of National Stock Exchange 50. It is the benchmark index of NSE comprising 50 stocks.

BSE (Bombay Stock Exchange) was founded in 1875 and is the oldest stock exchange in Asia. Sensex is the benchmark index of BSE and it is derived from the words sensitive and index. Sensex comprises of 30 stocks.

Sensex and Nifty are the face of the Indian as these either go up or down depending on various political and economic factors.

Key Financial Instruments Traded in Stock Market
• Shares/ Equity:
Equities or stocks or shares give you ownership of a company. You can buy or sell shares through a broker.

• Mutual funds:
Here, the money is pooled from many investors and then invested in various financial instruments. Investors are referred to as unit holders. Profit generated is distributed to unit holders in proportion to the units held by them.

• Bonds:
These are fixed income instruments also known as debt instruments by which government or a company borrows money from investors at an agreed interest rate for a specific tenure. These are less risky when compared to shares.

• Derivatives:
A derivative is a financial contract whose value is derived from an underlying asset. It can be used to mitigate a number of risks. Derivatives include forward, futures, options and swaps.
.
Share market tips:
• It’s always better to do your own research before investing.
• It’s not wise to take decision based on rumors.
• Monitor your investments regularly so that you can eliminate the loss-making stocks.
• Patience is very essential for any investor.
• Take the help of research experts also before making an investment move.
• Always be updated with share market news.

LEVERAGED STRATEGIES

SHORT SELLING
In short selling, the trader borrows stock (usually from his brokerage which holds its clients' shares or its own shares on account to lend to short sellers) then sells it on the market, betting that the price will fall. The trader eventually buys back the stock, making money if the price fell in the meantime and losing money if it rose. Exiting a short position by buying back the stock is called "covering". This strategy may also be used by unscrupulous traders in illiquid or thinly traded markets to artificially lower the price of a stock.

MARGIN BUYING
In margin buying, the trader borrows money (at interest) to buy a stock and hopes for it to rise. Most industrialized countries have regulations that require that if the borrowing is based on collateral from other stocks the trader owns outright, it can be a maximum of a certain percentage of those other stocks' value.

Advantages of Investing in the Stock Market
• Investment Gains
• Dividend Income
• Diversification
• Ownership

PORTFOLIO INVESTMENT
Portfolio investments can span a wide range of asset classes such as stocks, government bonds, corporate bonds, Treasury bills, real estate investment trusts (REITs), exchange-traded funds (ETFs), mutual funds and certificates of deposit. Portfolio investments can also include options, derivatives such as warrants and futures, and physical investments such as commodities, real estate, land, and timber. The composition of investments in a portfolio depends on a number of factors. Some of the most important include the investor’s risk tolerance, investment horizon and amount invested. For a young investor with limited funds, mutual funds or exchange-traded funds may be appropriate portfolio investments. For a high net worth individual, portfolio investments may include stocks, bonds, commodities, and rental properties.

KEY TAKEAWAYS
• A portfolio investment is a diversified approach to investing that seeks a return.
• A portfolio investment is long-term and passive (buy-and-hold) strategy.
• Risk tolerance and time horizon are key factors in building any portfolio investment.

Why do companies get listed on exchanges?
1. Transparency and automated trading
2. Huge Reach
3. High transaction speed

Role of exchanges
1. Market where securities are traded
2. Responsible for evaluation of stock prices
3. Safeguards investors
4. Acts as barometer for a country’s economy
5. Broader range of investment avenues

CONCLUSION
An investment fund is a supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of his own shares. Though it is often said that stock market investment is risky with little effort you can earn regularly from the stock market. All you need is the right strategy and skills to choose the right stocks. Besides you should have ability to take risks and stay positive even at the bad times.

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JITHIN KOSHY
KERALA, INDIA

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