The paper seeks to understand the impact of service quality of stock trading brokerage firms on customer satisfaction. There are many factors that are used to measure the service quality for trading brokers & all of them has some or the other effects on customer satisfaction. The common service quality factors for stock trading brokerage services are mentioned below -
This paper seeks to address only two key service quality measurement factors which impacts the customer satisfaction i.e. Risk Management System & Redressal Mechanism.
KEYWORDS: Customer Satisfaction, Service Quality, Risk Management, Security Services.
Introduction The stock broking industry is a service-oriented industry where brokers act as agents for investors when a security is bought or sold and are compensated with a commission. Investors would not hesitate to switch to alternative brokerage houses if they do not obtain satisfaction. Providing quality service and hence customer satisfaction should thus be recognised as a key strategy and a crucial element of long-run success and profitability for stock broking businesses.
SERVQUAL To measure customer satisfaction with different aspects of service quality, Parasuraman, Zeithaml and Berry (1988) developed a survey research instrument called SERVQUAL. It is based on the premise that customers can evaluate a firm’s service quality by comparing their perceptions of its service with their expectations.
Stock Trading Shares/Stock trading is the buying and selling of company stock or derivative products based on company stock in the hope of making a profit. The trading of shares is one of the most popular and bestknown markets in investing, alongside forex and commodities. A stock trader or equity trader or share trader is a person or company involved in trading equity securities.
