A Study On Work Life Balance Among Women

Vol.
XX Issue 1 March 2016 ISSN 0974 – 1119

Vol. XX Issue 1 March 2016
A Peer Reviewed Research Journal

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aWEshkar
Prin. L. N. Welingkar Institute of Management Development & Research
Vol. XX Issue 1
March 2016
Editor
Dr. (Ms.) Ketna L. Mehta
a WEshkar
Vol. XX Issue 1 March 2016 ISSN 0974 – 1119

Managing Editor
Prof. Dr. Uday Salunkhe
Editor
Dr. Ms. Ketna L. Mehta
Editorial Board Members

Dr. Anil Naik, Dr. P. S. Rao, Dr. Sunanda Easwaran, Prof. Anuradha Mahesh, Prof. Sumeet Manerikar
Peer Review Referee Board
Dr. P. V. R. Murthy Dr. Suresh Govindaraj

Founder, Exclusive Search Professor, Rutgers Business School,
Rutgers University
Dr. Girish Prabhu Dr. Swami Manohar
Director - UBD Innovation, Founder and Managing Director,
Strategic Business Development, Srishti Labs, Srishti School of Art, LimberLink Technologies Pvt. Ltd.
Design and Technology
Prof. Harsh Mohan
Dr. Snehal Shah Professor, S. P. Jain Institu te of Management & Research
Program Chair, Human Resource Leadership Program, School of
Inspired Leadership Dr. B.V. D. Rao
Managing Director and CEO, 3 C Consultants P Ltd.
Dr. Maya Reddi
Professor of Management, Berkeley College
Dr. A. Jagan Mohan Reddy
Dr. G. Ramesh Associate Professor (HR), Institute of Public Enterprise,
Faculty, Business Studies, IBRA College of Technology Osmania University Campus.
Editorial Advisory Board
Dr. Arvind V. Phatak, Ph.D. Dr. Muhammad Ehsan Malik

Laura H. Carnell Professor of General & Strategic Management and Director, Institute of Business Administration,
International Business, Lahore, Pakistan
Fox School of Business and Management, Philadelphia, USA
Mr. Punya Prasad Neupane
Dr. Makarand Gulawani Executive Director, Nepal Administrative Staff College,
Instructor, Grant MacEwan University, Kathmandu, Nepal
Edmonton, Canada
Prof. G. M. Chowdhury
Director, Institute of Business Administration,
Dhaka, Bangladesh
Printed by Sugam Mudran, 110, Prospect Chambers, Dr. D. N. Road, Mumbai - 400 001, Maharashtra, India.
A Refereed Research Journal with an eminent advisory board, edited by Dr. (Ms.) Ketna L. Mehta, Editor and Associate Dean.
aWEshkar is a bi annual journal. WE stands for Welingkar Education and Aweshkar stands for creating new knowledge for the
benefit of the academic & corporate community.
aWEshkar (DeefJeµekeÀej) in hindi means Invention. The journal publishes Research Papers, Research Articles, Case Studies, India Focused
Research, Management Ideas, Management Games, Book Reviews and Poems.
aWEshkar is included in:
 EBSCO Database, USA.
 Ulrich’ Directory of Periodicals, USA.
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 Universitatsbibliothek Leipzig, Germany.
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aWEshkar Vol. XX Issue 1 March 2016 WeSchool 2 A Peer Reviewed Research Journal
Contents
Page No.
EDITORIAL
Ketna L. Mehta 5
MANAGEMENT POSTER
Managing a diverse workforce - The greatest people management challenge 6

Jyoti J Pant & Dr V Vijaya
MANAGEMENT IDEAS
How to save data costs and influence decisions 8

Mangesh Borse
INDIAN ETHOS
Customer First, Always 9

Suresh Lulla
LEARNING CURVE
It really is down to ME 11
Shahnaz Pohowala
RESEARCH
A Study on Work Life Balance Among Women Employees 15

Sonal Mahajan - Narkhede & Dr. Neelam Lal
A Study Of Wealth Accumulation In India 25

Dr. Sapna Parihar & Dr. Sofia Sadique Qureshi
The Effect of Credit Sufficiency on Loan Repayment Behavior of MSMEs 29

Dr. Mateen Ahmed Siddiqui
Segmentation of Cinema Audiences in the Indian Movie

Industry: A Marketing Strategy Perspective 39
Sakhhi Chhabra and Ritu Chhikara
A Peer Reviewed Research Journal 3 aWEshkar Vol. XX Issue 1 March 2016 WeSchool
Gold Monetization: Analyzing the situation of Acceptance or Resistance by Indian Investor 52
Dr. Mohita Mathur
Higher Education Branding and its influence on student's choice of selecting a University 56
Niharika Bharti & Prof. Harsh Purohit
Achieving Women Empowerment Through Microfinance:

The Road To Developed Economy 64
Dr. Shailja Dixit & Ms. Sana Moid
An Empirical Study on Rupee Depreciation with respect to Residents of Gandhinagar

Region 80
Dr. Jigna Trivedi & Dr. Bindiya Kunal Soni
CASE STUDY
Alliance, Merger or Expansion: A strategic decision for sustainability
for an airline company in India 99
Dr. Mahesh Gadekar & Shraddha Purandare
RESEARCH COMMUNICATION
Exploratory Research 125
Sumeet Manerikar
BOOK REVIEW
The Boys in the Boat 126
Stuti Saxena
Understanding Occupational & Organizational Psychology 127
Chitralekha Kumar
POEM
Less is More 128
Swar Kranti
Editorial
Inclusive SMART Campus
India since time immemorial has been a significant seat of learning, valuing education. Our educational
institutions and systems have kept pace with the world in diverse fields except one; which is making our
Infrastructure, Technology and Teaching Methodology, Inclusive for Students with Disabilities.
Disability broadly describes: Impairment in a person's inability to function, caused by various sub systems
of the body, or to mental health. The degree of disability may range from mild to moderate, severe or
profound. A person may also have multiple disabilities. It is estimated that there are over 80 million
People with disabilities in India.
India has ratified the UNCRPD (United Nations Convention on Rights of People with Disabilities) in
September 2007 which implies that People with Disabilities have the same Human Rights as everyone
else. Thus Right to Education is a basic right for People with Disabilities too. Yet we don't see many
People with Disabilities participating and excelling. Why is that? This is because our Infrastructure,
Technology and Teaching Methodology are not accessible and barrier-free to nurture our millions of
smart Students with Disabilities.
The upside is that the current government for the first time in the history of free India has launched the
Accessible India Campaign in 2015 which aims to transform and modify India and make it inclusive.
It aims to:
1) Increase the accessibility of the Physical Environment.
2) Enhance the accessibility and usability of Public Transport.
3) Enhance the accessibility and usability of Information and Communication.
It is imperative that all Educational Institutions re-design and retrofit their existing campuses through
Universal Design Principles to make it accessible for People with Disabilities.
By creating an inclusive infrastructure it will enable diversity in the classroom with the Able and Disabled
learning together, complimenting each other's skills. Only then can our educational institutions be called a
Smart Campus.
Its high time that we welcome and open our broad doors to the potential and talent of this neglected youth
force and truly call our educational institutions - Inclusive & SMART.
Dr. (Ms.) Ketna L. Mehta.

Email : [email protected]
Guidelines for Authors
Peer Reviewed Research Journal - aWEshkar
aWEshkar welcomes articles on issues of current interest in management, globally. We publish empirical papers, review
papers, executive experience-sharing, research notes, case studies and book-reviews. The official editorial address of
aWEshkar is :
Dr. Ms. Ketna L. Mehta,
Editor & Associate Dean, Research,
Prin. L.N. Welingkar Institute of Management Development & Research,
Lakhamshi Napoo Road , Matunga (Central Railway),
Mumbai- 400 019, Maharashtra, India.
Tel : +91 - 22- 24198300 Extn.: 8387 /8187
E-mail: [email protected]
Website : www.welingkar.org
All submissions for aWEshkar to be sent to [email protected]. The manuscript should have a cover page
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sides. The normal size of a paper is about 5,000-7,000 words.
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References: References should be cited in the style prescribed in the Publication Manual of the American Psychological
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(1977)'. At the end of the text, references should be listed in the alphabetical order of the last names of the authors, with
a title REFERENCES. Examples of how the references are to be listed at the end of the paper are given below.
 (If it is a book): Porter, M.E. (1980) Competitive Strategy, New York: Free Press.
 (If it is an article in a journal): Hannan, M.T. and Freeman, J. (1977) The Population Ecology of Organizations,
American Journal of Sociology, 82 (5): 929-964.
 (If it is an article in an edited book): Kanter, R.M. (1988) When a Thousand Flowers Bloom. In B. Staw and L.
Cummings (eds), Research in Organizational Behaviour, pp.169-211, Greenwich, CT: JAI Press.
Notes: Do not use footnotes. Minimize endnotes. If they are unavoidable, number them serially in the text using
superscript and list them together on a separate sheet under the heading NOTES immediately following the text of the
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the text, but is tangential to the main idea discussed therein.
Figures and Tables: Each Figure/Table should be printed on a separate sheet. Figures and tables are to be separately
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Revised Manuscripts: At the end of the blind review process, the editor informs the author about the acceptance or
rejection of the manuscript. On acceptance, the author is expected to incorporate the modifications suggested by the
reviewers, if any, and submit a soft copy of the final revised manuscript within 12 days.
Policy against simultaneous submission: Authors should ensure that the manuscript submitted to aWEshkar is not
simultaneously submitted to any other journal or publisher. Similarly, it should not be submitted anywhere else during
the pendency of the review process which will take about 3-6 months. Once a manuscript is accepted by or published
in aWEshkar, it becomes the property of WE SCHOOL, whose permission is required for any operations covered by the
Copyright Act.
Prof. Jyoti J Pant is Assistant Professor of Organizational Behaviour and HR, WeSchool, Bengaluru.
Dr V Vijaya is Associate Professor of Organizational Behaviour and HR at Indian Institute of Management (IIM) Trichy.
MANAGEMENT IDEAS
How to save data costs and influence decisions
Mangesh Borse
The use of analytics and its applications come to Open Government Data(OGD) of India: The
organisations with a previously undefined cost of data.gov.in website is literally a minefield of data
data acquisition. Whether it is consumer data, which businessmen and professionals should keep
geographic market data, or a segment definition, referring to. It has more than 18000 data source
marketing leadership across businesses rarely points and deserves an applause for the initiative.
considers acquisition costs, especially for non- Healthcare, agriculture, finance and banking,
organic data. companywise/statewise data/ ownership statistics,
rural trends upto mandi level are fairly well
But the flip side hands out a bonus. researched and presented.
Past two years have been pretty hectic in Indian Commerce and Industry Federation data:
businesses. Elections, a new government, a digital Most FICCI industry reports are professionally
surge in businesses across categories and a new compiled and my personal favourites, primarily
found way of doing businesses which are time and because they use a meticulous methodology to
location independent. Leaders across the globe see ahead and forecast market data. They also
certainly want to know more about India today maintain consistency. The FICCI FRAMES
media data report, typically prepared by one of
than ever before. Good research guzzles funds.
the big 5 consulting firms is a case in point.
Bad research guzzles time and aspirations. We
often then hear stories that “#@$ burnt their Student research: Business school graduates
fingers and went back” etc. The country’s image is always surprise you with their fresh perspectives
the primary casualty. It is precisely here that one and opinions. Hire a competent group of students
expects the leadership team to step in. Look to get these perspectives. They work especially
around. There are enough sources of extremely well for qualitative researches because one is sure
credible data. The GOI (Government of India) has that there are fewer biases and preformed
some amazing systems and methodologies in opinions. The problem with most organisations is
place. It is certainly worth a while. Consider some they initiate student researches to “save money”
of these: rather than get data. Pay them well by their
experience standards and you will get surprised
Election results: Brands represent cultures. A with their commitment and even the findings.
certain kind of a customer supports the brand
In conclusion, everyone needs data but one must
more than others. It is not difficult to draw consider all available options before designing
conclusions like young nuclear families would proprietary research models. There are many
normally buy smaller cars, or instant noodles. surprises available in government data sources,
Categories reflect obvious data trends. often free of cost.
Mangesh Borse is a Senior Faculty of Branding with WeSchool. He has a rich experience of 30 years in Advertising,
Media and Technology Companies.
Email: [email protected]
INDIAN ETHOS
Customer First, Always
Suresh Lulla
How often have we seen posters in organizations Victor taught me the importance of execution. He
shouting messages such as “Customer First” or also taught me the power of simplicity. His
“The Customer is Always Right”? How often, as a prescription was:
customer, have you actually experienced this
claim? 1. I (Victor) called all the senior executives to
the board room on my second day at
I wish to share a story of an expatriate, in India, work.
who actually made it happen.
2. Next, I asked each executive to take a
In the mid-1990’s, India had graduated from a foolscap sheet of paper and to list their
license raj regime to becoming a relatively more customers on the left of the sheet. Of
liberal economy. Policies had changed that course, each executive listed the dealers,
permitted foreign organizations to hold more than chemists, etc.
50 per cent shares in the pharmaceutical sector.
This is a classic story of an organization that had 3. I corrected their perception of customers
been led by Indian executives for decades but was and defined it as the person who receives
now to be led by an expatriate, since the multi- the output of the work one does. Each
national European parent had opted for 51 per executive listed more customers than the
cent foreign ownership in India. others in the room. It seemed a status
symbol.
The person appointed to lead was of South
American origin, who had had earlier postings in 4. A moment of truth followed… “What do
North Africa and South East Asia. He had never you deliver to your customers?” There was
before set foot in India. The mandate given to him silence in the room. “How do you measure
by his HO was “Transform the Indian operations your performance with your customers?”
into a customer-focused one in 1000 days”. Not a clue.
I met this executive (let’s call him Victor 5. “When did you last meet your customers?”
Fernandez) in his second week on the job. Victor Prompt came the answer… “Daily! In the
looked relaxed in his office that overlooked the car pool and cafeteria!” “No, no” I said,
Arabian Sea. Torrential monsoon rain lashed the “when did you last meet your customers
windows. After the professional formalities, he proactively?” Heavy silence.
explained to me his 1000 days’ mission and what 6. “Never mind”, I said, “let’s make a simple
he had already accomplished. He said he had plan. I would like you to list your ‘A’
already achieved his goal! How? category customers. I would then like you
Suresh Lulla is Founder & Mentor of Qimpro Consultants Pvt. Ltd.

to proactively meet each customer for 10 learned from the grapevine that Victor spends his
minutes at their desk, weekly. The agenda time reviewing deliverables to customers. He is
for each meeting will be: How can I improve customer-focused and walks his talk. Victor had
my offerings to you? Next, I would like you faith in the grapevine for communication – efficient
to log what you have agreed. I, Victor, will and effective.
come and audit the log and action, weekly.”
Lessons Learned
Victor explained the first round had been
completed. He was going to execute the second 1. Leaders walk their talk
round that week. And the next week he would 2. Strategic goals should be simple and clearly
request the executives to cascade the same articulated
process down to the next level. He would request
them to audit the performance of their respective 3. Customer focus is no longer a choice
managers, and he, in turn would audit their ability
4. Measurement is required in order to control
to audit! Quite simple.
and improve
Victor underlined the simplicity of his process. He
5. Get commitment of your people first.
made me understand the Plan-Do-Check-Act
Behaviour will change thereafter and,
theory underlying his approach.
hopefully, attitude
But that was not all. There was another by-
6.6. A robust process can be simple, but must
product to this approach. The whole organization follow “Plan-Do-Check-Act”??
QUOTES
Great is the guilt of an unnecessary war.

John Adams
We don't need to share the same opinions as others, but we need to be respectful.
Taylor Swift
Be faithful in small things because it is in them that your strength lies.

Mother Teresa
LEARNING CURVE
It really is down to ME
Shahnaz Pohowala*
I'm on an unlimited plan so there's no extra 1. Reuse.

charge.
This is not only a basic tenet for reducing waste;
One more copy won't matter.
it's also a good way to save some money.
No time to do all this.
Takeaway food containers, envelopes, ball point
Auditors always insist on hard copies.
pens, paper printed on one side, carry bags, can
These are just few of the myriad reasons not to do all be reused appropriately. The Indian
my bit. government, under the provisions of the
Environment Protection Act 1986, prohibited sale
I am always appalled when people expect the
of any product in plastic carry bags. Unfortunately,
"authorities" to improve living conditions, control
this has been implemented to a very limited extent.
pollution and generally keep their city clean. If you
I do my bit by carrying a cloth or jute bag for
(like me) live in a densely populated city of 20
shopping trips, and usually keep it in my handbag
million plus inhabitants, (or even not) it may be
for spot purchases. Rather than buying Post-it
worthwhile reflecting on just how much the
pads, I use the reverse or inside of used
"authorities" can do without the active participation
envelopes, or old diaries for to-do reminders,
of citizens.
grocery lists, laundry lists, etc. Unless absolutely
Global warming, extreme weather conditions, necessary, I avoid single use items like Styrofoam
natural disasters are all the result of our unbridled or plastic tableware, bottles, napkins, etc. A recent
lifestyle choices. Yours and mine - not theirs'. No study found that 20 million trees are cut every year
doubt legislation plays a role, but the bulk of the to meet the demand for disposable chopsticks in
responsibility rests on our shoulders. If we don't China. You may well ask why they can't be
want to bear the burden of leaving a desolate washed & reused like regular cutlery, but
planet for our kids, it's time to look within and obviously someone hasn't thought of that yet.
become accountable. Take charge of the small
2. Use the garbage bin.
things and the big things will follow.
This may sound obvious in some cultures, but
What are the small things I can do?
sadly not in all. Out of the window, into the sea,
Not my neighbors, not my colleagues, not even street corners, railway tracks, are not places to
my family. Just ME. chuck garbage. Not even "small things" like fruit
*Shahnaz Pohowala is General Manager - Accreditation, Prin. L.N. Welingkar Institute of Management Development
& Research, Mumbai.
peels, biscuit wrappers, bus tickets, matchsticks, connected world! Are you always logged onto
cigarette stubs, etc. If there is no bin in sight, I internet, email, Skype, Facebook, just so you
keep it in my handbag till I spot the nearest one. don't miss an important update? Or worst still,
because it's paid for anyway? According to a
3. Pause before you Print.
2014 Greenpeace report, IT related services
A 2013 UNESCO survey found that we consume account for about 2% of all global carbon
1 million tons of paper a day, which is more than emissions; number of online users is expected to
the combined weight of 300,000 elephants. grow by 60% in the next 5 years; and data usage
Actually, it's much easier to store, update and will triple between 2012 and 2017 to a daunting
distribute digital documents, rather than physical 121 billion GB. The electricity that powers all this
ones. To guard against losing data in case your comes with a major carbon price and climate
computer crashes, use antivirus updates and take impact. Obviously it's not feasible to shut down
frequent backups, but not in a steel filing cabinet. I the computer every time we leave our
hit the Print button only if I must. & even then, I workstation, but if it's going to be idling for a long
first check the printer settings to print on both time, I put it on Hibernate mode. The average
sides, and reduce font size to reduce number of computer uses between 36W to 250W of power
sheets. Long email exchanges are usually followed in active mode and between 1W to 27W in low
by a string of disclaimers, which can be deleted power mode. Studies show that approximately
before printing. Same goes for lengthy signatures, half of all office computers are left on overnight
with logos, affiliations, rankings, etc. and on weekends. I remember to shut down at
the end of the day, including switching off the
4. Switch Off. desktop monitor. When working offline, I log out
Keeping the lights, fans, air conditioners on in an of my net connection too.
empty room is like wearing makeup to go to bed. 6. Don't drive when you can walk
As futile and as damaging. Even while the room is
occupied, regulate light and temperature settings Walking small errands is like killing two birds with
for optimal energy utilization. A WWF study says one stone. You get the job done, plus get your
that turning up the air conditioner by just 1 degree daily workout. And if you want to multi task some
can save 10% energy consumption. (Same goes more, it's also a great opportunity to reflect, plan
for central heating). Use of energy efficient fittings your day, pray, listen to music, return calls, or just
and appliances goes a long way. Best of all, if it's plain unwind. Whether its picking up a loaf of
one of those lovely clear days with bright sunshine bread from the corner store, or dropping off the
and a cool breeze, I shut off all lights and fans, kids to a neighbor's sleepover, put those pins to
open up the windows, and soak in the natural light maximum use. I often wonder at people who
& fresh air. drive to the gym, less than a kilometer away, and
then sweat it out on the treadmill for an hour.
5. Shut Down (They also moan about how difficult it is to find
By far the hardest thing to do in our hyper parking there).
7. Save Water new leaf or petal unfurl, imagine how pretty our
city would look with a plant at every window !
Water scarcity is not just a bane for the developing
world or desert countries. California, one of the 9. Compost kitchen waste
richest states in the USA, is also plagued by According to a 2013 study, the average urban
drought and water shortage. According to a UN Indian generates nearly 250 kg of kitchen waste
study, use of water has increased at more than per person in a year. More than half of what we
twice the rate of population growth in the last carelessly throw away is organic matter which, if
century. Besides obvious outcomes like poor composted, can produce rich top soil for our
health & sanitation, failed crops & dying livestock, plants. I collect fruit & vegetable peels in a
water scarcity has other social ramifications, like covered container and sprinkle the mix periodically
extreme poverty & desperation resulting in farmer with a handful of soil. (I prefer not to include
suicides and increased crime rates. cooked or non vegetarian food to avoid foul
odors). Power your plants with this natural manure
I play my part, by being water smart. and watch them thrive.
8. Grow a Plant 10. Car Pool
Not all of us have the luxury of space for a garden. Most places of work have at least 2 or more
But we all have window sills or balconies where colleagues living in the same area, or on the way to
we can grow small potted plants. Plants have the work. Yet, very few agree to car pool, simply
unique ability to maintain atmospheric oxygen because it's not convenient to adjust timings to suit
levels, through the process of photosynthesis. In each other. Even within the same family, members
urban spaces choked with poisonous emissions, a prefer to take their own cars, because
plant at every window could mitigate at least part (presumably) it saves time. Well, the fact is every
of the risk. Besides the sheer joy of watching a additional vehicle on the road means that much
more traffic congestion and that much more time policies for environmental standards, clean
spent on the road. Besides the obvious outcomes technologies, etc, I do my tiny bit. If this piece
of fuel and cost saving, car pooling comes with encourages you to do your tiny bit, our collective
other additional benefits - less stress of driving bits may amount to a lot.
every day and more opportunities to network
After all, planet Earth is the only home we have.
informally with neighbors and colleagues.
Unless you intend to move to Mars in the near
So while I leave it to the "authorities" to implement future.
QUOTES
Nothing ever becomes real till it is experienced.

John Keats
Live as if you were to die tomorrow. Learn as if you were to live forever.
Mahatma Gandhi
Leadership cannot really be taught. It can only be learned.

Harold S. Geneen
Action is the foundational key to all success.

Pablo Picasso
The soul should always stand ajar, ready to welcome the ecstatic experience.
Emily Dickinson
Intelligence is the ability to adapt to change.

Stephen Hawking
Happiness lies in the joy of achievement and the thrill of creative effort.
Franklin D. Roosevelt
You must learn to be still in the midst of activity and to be vibrantly alive in repose.
Indira Gandhi
RESEARCH
A Study on Work Life Balance Among Women Employees
Sonal Mahajan - Narkhede* & Dr. Neelam Lal*
ABSTRACT
Women have been disregarded in the Indian society for a long period of time. As time passed due to
changing socio-cultural environment and an increase in educational opportunities, women have gained
a remarkable position in some areas of society. In the existing familial and societal setup, women have
started recognizing their inherent talents and working abilities. The study of K. Reddy and Vrinda
(2010) majorly focuses on the role overload, dependents care issues, quality of health, problems in time
management and lack of proper support which influence the women employees the most. They have
different roles to play in the society from reproduction to all household chores and outside, which is
unique and significant. The concept of work life balance is becoming more relevant in every dynamic
working environment. Work life balance has emerged as a hot topic in recent years fuelled in part by
changing trends in women's social roles.
KEY WORDS: Work life balance, women employees, work responsibilities and social duties.
Introduction: scenario employed women are more focused

towards growth of their family, career, children
Considering the Indian families (nuclear, traditional
and other responsibilities. Women employees
joint families) which are undergoing rapid change,
have to display multi functional skills and this
there is also a drastic change in the living status.
Due to modernization and as per the study of impacts the couple relationships, parents and
Georgeta in 2012, she has found that now more children responsibilities, household and caring
and more women have managerial jobs. They also responsibilities, absenteeism, work dissatisfaction,
want to have happy personal lives as well and do stress and health related issues, social relations,
their best in order to succeed in both domains of conflicts in family as well as their professional life.
life that is professional and family. With increased Objective:
awareness, higher aspiration of personal growth
and maintaining status in society the expectations To study the various issues in work life balance
of their families also start increasing. In this for women.
* Sonal Mahajan - Narkhede (Assistant Professor) AISSMS IOM, Pune.

* Dr. Neelam Lal (Professor) Bhartiya Vidyapeeth University, IMED, Pune.
Scope of Study: effect on mental health and physical health of the

person. As the concept of work life balance is
The study will mostly concentrate on the multiple
considered the work which is managed in the given
roles and responsibilities of women employees,
time with completing the responsibility in a better
including their personal life, social life and work
manner. Carlson studied that women have the skill
life. In maintaining this balance women has positive
to work on different tasks at the same time so it
and negative effects on their mental health, self-
helps her to cope up with the problems she faces
esteem, a sense of control, energy levels, role
in the way of her work. Simultaneously women
strains as a result of work overloaded. The
can handle the work tasks with the personal
purpose of striving very hard both at home and
relations. Working mothers of today fulfil family
workplace at the cost of her individual health and responsibilities and also try to remain fully involved
well-being for a married working woman is to in their careers coping up with the competing
have a good quality of life. But this quality of life demands of their multiple roles states G.Delina
that she craves for is often influenced by work life (2013). The work stress may cause problems and
balance. Any imbalance in the work and family of interfere in each other but it can be handled by
an individual can hamper the quality of life. proper allocation of time and synchronizing it with
Research Methodology: other tasks. They have stepped into the work
places but the role responsibilities of women still
This is a conceptual paper based on the secondary remain the same, i.e., women may be a top
data available through published research papers. executive, but still the "nurturing" or "care giving"
The data is mainly collected from the secondary roles are considered much a part of feminine roles
sources which include articles published in states R. Raya (2013).
journals, research papers, and the print media.
Couple relationship: Career building and
Literature Review: succeeding is very important but at the same time it
can be a challenge for some to keep growing with
Women are required to perform an accumulation
several responsibilities. In the goal achievement
of disparate roles simultaneously, each having its
path there are some barriers which can change on
own importance. As K. Reddy, B. Nirmala (2010)
the basis of gender. Similarly couples also face
and other researchers have studied that multiple
problems in their career growth. Men have a role
roles including family responsive and work
to earn a specific income to run and fulfil the needs
responsive; first referring to family responsive have
of family. Women work to support their family,
family upbringing, cooking, cultural and traditional
career growth for higher opportunities, and
roles intact, parenting, emotional and economic
economic independence as the role can differ as
responsibility. Secondly work responsive have
per the couples choice and build a healthy
emphasis on productivity, organisational values,
relationship together.
work dynamics, career orientation. In the given
responsibilities the time lines, culture difference, Parent and children responsibility: A working
targets and role strain gives positive and negative couple have their children and parents
responsibilities and, it is their duty to support each task and maintains the balance between work and
other and give a helping hand to share the her family.
responsibility whenever needed. To take their old
Limitations:
parents with doctors appointments, playing with
children, dropping to school, going for get- The limitation of this study is it is limited to the
togethers, attending school functions, all these Indian traditional culture where mindsets are still
things have to be properly divided and taken care parochial. However as India develops and
by nurturing and sharing whenever required. modernizes the concept of work life balance
would be more accepted for a working women.
Health related issues: With the changing in
This is important because she has to handle the
lifestyle there is also a drastic change in the food
household work and even her organization's work
habits needs. As the heavy work pressure and
simultaneously and satisfactorily.
long working hours, which result in unbalanced
food habits. Health issues like early age heart Conclusion:
disease, diabetes, blood pressure, stress and other
The study thus gives us several issues which
physical disorders lead to overall health related
Indian urban women face in their life. Different
issues in men and women.
roles of women like in married women the
Absenteeism: In everyday life there are some responsibility of supporting their family
issues or problems which create a disturbance in economically, pay their children's education fee,
the daily routine. In professional life this can be some are highly career focused and wish to grow
considered as absenteeism which hampers the in their career but due to family or motherhood it
work culture and due to which the women cannot is not possible for them to achieve. Job
attend her daily tasks and gets disturbed in her satisfaction is equally imprortant and they face
working environment. issues like job stress, working environment,
colleague competition, work demands which
Social relation: When we come in contact with
increase due to high competition, some limitations
people we need to relate with them at a social
from family which gives a setback on the growth
point. Maintaining social network is important for
path of the career. Women also have different
having contact and exchanging of ideas. It is a
stages of life like education, marriage, child birth
need now-a-days to keep people connected for
and child rearing which affect work and family. In
emergencies. Thus it is important to socialize by
spite of this women play multiple roles which are
attending various functions like marriages, birthday
both difficult and important for their growth.
parties, social or corporate parties, festivals and
Despite women having so many issues, barriers
celebrations.
and conflict, they play a very important role in
All this responsibilities are expected to be done by organization society. In the bargain women and
women as she is the connecting point of the family. neglect their personal needs some have personal
With such several responsibilities she has to multi- matters which make it difficult to work and also
achieve satisfaction at a personal level. There are a PSIWORLD 2012, Procedia- (78), 21-25.
few successful women in the corporate world who
- Groves MM, Wingred Horm, (1991),
are able to reach the top echelons of the
SCImago Journal rank, Social research pg.
organization with happy and a well managed
75 (4), 212-217.
personal lives too.
- Delina G., Dr.P.Raya, (2013), IRACST-
References:
ISSN: 2319 2828, Vol2.2013.
- B.P. Nirmala, Reddy N. Krishna, Vrinda, - Gopinath Sujaata, Santhana Laksmi K.,
(July 2010),. Indian Journal of (2013), Abhinav- ISN: 2320 0073, Vol 2.
Psychological Medicine. Jul- Dec, 32(2), 2013.
112- 118.
- Times- Life Rev up your life, Sunday Times
- Carlson D., Kincaid, Rotondo, (2003), of India, 8th March 2015, Sunday,
Perdue School of Business, Personnel International Women's Day, Page no. 1 & 2.
review, Vol. 32(issue:3), 275- 296.
- Times- Life Rev up your life, Sunday Times
- Panisoara Georgeta, Serban Mihaela, of India, 14th June 2015, Sunday,
(2012),. Elsevier B V. - 1877 0428, Page no. 2.
QUOTES
Truth, self control, asceticism, generosity, non-injury, constancy in virtue are the means of success,
not caste or family.
Mahabharata
People tend to forget their duties but remember their rights.

Indira Gandhi
RESEARCH
A Study Of Wealth Accumulation In India
Dr. Sapna Parihar* & Dr. Sofia Sadique Qureshi*
ABSTRACT
The concept of saving plays an important role in economic development. The main aim behind saving is
to secure one self and the dependents for the volatile future conditions. The study revealed that net
saving pattern in Indian household sector has the secular variation and the future trend projection
showed constant growth till 2019-20. The study also found that the savings in physical assets contribute
maximum in the wealth accumulation while the saving in share and debenture is minimum which concludes
that Indians prefer their savings in the form of physical assets instead of financial instruments. The
reason of less inclination toward the share and debenture may be because of the risk associated in the
investment due to volatility of market. Another reason is tremendous growth rate in real estate, and gold
in India that attracted the household sector to invest in the physical assets.
KEY WORDS: Household, Physical Asset, Saving, Wealth Accumulation
Introduction consumption and a small amount of income was

left in the form of saving. Due to this the saving
A man who both spends and saves money is
rate was very low, especially in rural sector. Since
the happiest man, because he has both
the attainment of independence in 1947, the main
enjoyments.
objective of the government of India was to
Samuel Johnson promote saving and capital formation which could
lead economic growth. The savings boosted up
Saving is the amount which the individual keeps
financing and investment, use of the increased
for the security, future planning, future needs and
investment for boosting up savings for a further
emergencies by cutting from his daily expenses.
This saving helps in developing his morale and financing and the investment this constitutes the
confidence and plays a significant role in the strategy of economic growth. The increase in the
economic development of the nation. Saving is rate of investment was made possible by way of
defined as the difference between income and an almost proportionate rise in the rate of saving.
investment. Before independence i.e. 1947 in Saving provides emergency cushion and social
India, people spent most of their income on security to an individual.
* Dr. Sapna Parihar, Sanghvi Institute of Management and Science, Indore, M.P., India.
Email ID: [email protected]
*Dr. Sofia Sadique Qureshi, Sanghvi Institute of Management and Science, Indore, M.P., India
Email ID: [email protected]
Saving conditions. Saving as we know is the excess of

money over expenditure. Individuals invest their
Since getting independence in 1947, Indian savings in various government and private schemes
economy has come a long way. Through all these in order to accumulate wealth. Investment in
years the policy makers have targeted the growth shares, debentures, government infrastructural
of economy. Majority of saving is done in the schemes, bonds and securities is bound to multiply
household sector in India in contrast to the in most of the cases. Hence the amount of
Western countries where the majority of saving is investment done is often multiplied and comes
done in the private corporate sector. This back to the investor in many folds. Despite all
difference is due to the difference in their level of these benefits the savings in Indian household
development. Household sector is the most sector is still not as per the expectations. Low
important sector with regard to saving. However, income of individuals is a major reason for this.
in India, due to the widespread poverty, majority
of population has no means to save. This results in In rural sector the situation deteriorates drastically.
low capital accumulation. Household sector often The rate of savings in this sector is not that high. In
provides the impetus required for growth of capital rural areas, the majority of population depends on
via currency, savings, investments, life insurance, agriculture. Failure of crops results in loss of
pension, investment in government schemes etc income which in turn decreases savings as earnings
which directly accumulate wealth. are less than expenses. Banks after nationalization
have taken the task of mobilizing rural savings so
Saving is influenced by several variables, like the that capital formation can be done. Introduction of
perception of saving of those who save their government schemes have helped in increased
estimation of cost involved and benefit derived, capital accumulation via investment and savings in
age, size and structure of the family, objectives or various schemes.
motivations for saving, environment etc. Saving in
various households is perceived in various ways. Structure of Savings in India
For some, it is money reserved for future use / Savings in India originate mainly from three sectors
needs, while some may regard it as surplus of - (i) Household sector, (ii) Private corporate
income over expenditure. Some may use it for sector and (iii) Public sector. The household
purchasing land or creating capital in the form of encompasses of individual, non corporate business
assets. When saving is perceived as money and private cooperative like religious institutions,
reserved for future needs, it reflects a calculated academic institutions and charitable trust. The
decision rather than just a residual of earnings and savings can be in the form of currency, bank
expenditures. The decision to save money for deposits, gold, financial assets like insurance
future use depends on many factors - the policies, shares, securities and physical assets.
determinants of saving which include the factors
that affect both the ability to save and the desire to The corporate sector comprises of joint stock
save. companies in the private sector, industrial credit
and Investment and cooperative firms. The
The main aim behind saving is to secure one self retained earnings is actually the saving of corporate
and the dependents for the volatile future sector. The government sector consists of the local
authorities, state and central government and loans and advances from banks, other financial
various departmental undertakings. Hence, the institutions, government and cooperative non-
saving of this sector relates to the budgetary credit societies are included in financial liabilities.
surplus on current account of the central The present study is mainly focused on the
government, state government, local authorities, pattern of saving in India in the last decade and
and the current surplus of various government also compares the leaning towards various saving
departments and retained projects of government options available to the household sector.
undertakings.
Review of Literature
Saving by Household Sector
'(Lusardi, 2008)' studied saving behavior in
The household sector is a residual sector context of US and revealed that financial illiteracy
embracing all economic units other than the units is widespread among the U.S. population and
of public sector and private sector. The household particularly acute among specific demographic
sector includes besides individuals, all non- groups, such as those with low education,
government and non-corporate venture like sole women, African-Americans, and Hispanics.
proprietorships, partnerships and non-profit Moreover, close to half of older workers do not
institutions which furnish educational, health,
know which type of pensions they have and the
cultural, social and community services to
large majority of workers know little about the
households. Savings are the most important
rules governing Social Security benefits. Low
aspects for the growth of any economy as savings
literacy and lack of information affect the ability to
are transformed into gross capital formation and
save and to secure a comfortable retirement;
for the growth of the economy. The Indian
ignorance about basic financial concepts can be
planners believed that low level of savings was the
linked to lack of retirement planning and lack of
major obstacle for a developing economy like
wealth. Financial education programs can help in
India and therefore, it was necessary to achieve
higher rate of savings. improved saving and financial decision-making,
but much more can be done to improve the
Household sector savings constitute the largest effectiveness of these programs.
portion of gross domestic saving. It comprises of
saving in financial assets and saving in physical '(Anli, 2010)' studies the role of banks in the
assets. Household saving in financial assets is process of Resource Mobilization and economic
estimated as gross financial assets, while growth in India. Banks have played a central role
household savings in physical assets is the net in India in supporting the growth process by
addition to physical assets by the households. mobilizing savings particularly, after the
Total financial saving of the household sector nationalization of 14 private banks in late 1960s.
includes the saving in the form of currency, bank Banks have played a major role in mobilizing
deposits, non-bank deposits, saving in life deposits from the household sectors, which has
insurance fund, saving in provident fund, claims on increased the financial savings of the household
government, shares and debentures inclusive of sector and resulted in an increase in overall saving
investment in mutual funds and net trade debt. The rate.
'(Gulnur and Fatma,1996)' studied the differences 2. To compare the household saving in India
in household saving behaviors in developing and through various financial saving schemes.
industrial countries from across country
perspective and tried to understand the saving Hypothesis
behavior which is important in designing policies to H01 There is no significant difference among the
promote savings and investment via various various saving options like saving in currency,
schemes and measures. The study found that due deposit, share and debenture, claims on
to varying economic environment of the government, life insurance, pension and provident
developing and industrial countries, there should fund, and physical assets.
be significant variation in household behavior.
H0 : µcurrency = µdeposit = µshare and
'(Ghosh and Pain, 2005)' in their paper suggested debenture = µclaims on government = µlife
that high level of savings helps the economy to insurance = µpensionand PF = µphysical asset
progress on a continuous growth path as
investments are done out of these savings only. Research Tools
Savings depend on various behavioral and other In order to analyze the pattern of wealth
factors which influence the propensity to save. The accumulation in India, data is collected from
paper also finds the trends, composition and secondary source (CMIE) in June 2016. To view
distribution of Indian household savings and tries the pattern of wealth accumulation in India, Least
to find out the key factors of household savings in Square Method has been used and future
India. prediction has been done.
'(Pati and Shom, 2011)' reveal that Households
are still the major contributors of savings in India.
Despite the growth of private corporate sector in
recent years, they hold more than two third shares
of the total GDS as twenty five years before. As a
component of financial savings, small savings have
been the favorite of the households, next to X = Net Financial Saving
deposits in banks, which has clearly sidelined the
capital market growth and other financial a = Intercept, a =?X/n
innovations in the post-liberalization phase. Both
b = Slop, b=?XY/X2
the channels jointly contribute almost 85% of total
financial savings. This reveals the risk taking ability Estimated Trend Line
of Indian households which is yet to reach a level Y=4868401.54+496152.7473*X
to induce them to move out from the traditional
Analysis of Variance (ANOVA) used to compare
safe channels of low-yielding savings.
the savings in various options viz. currency,
Objectives deposit, share and debenture, claims on
government, life insurance, pension and provident
1. To analyze the pattern of Indians towards
fund, and physical assets.
wealth accumulation.
Finding, Conclusion and Suggestions saving in physical assets. '(Patnaik and Narayan,
2007)' revealed in a news article that the way
The study reveals that the net saving pattern in
financial savings are estimated in India is that, the
Indian household sector has the secular variation
financial liabilities of the household sector, even if
as data shows (Table I, P.12) normal ups and
they finance physical assets, are reduced from the
down in the entire span of time from 2000-01 to
gross financial assets, the report says. Physical
2014-15. But in the 2009-11 significant increase
savings as a part of gross financial savings has
observed in the wealth accumulation. The future
been increasing.
trend projection shows that till 2019-20 the
average accumulation of wealth would be The reason of less inclination toward the share
11318387.25 million (Figure I, P.13). and debenture may be the risk associated in the
The study also compares the various saving investment due to volatility of market. Another
options people have for the wealth accumulation reason is marvelous growth rate in real state and
such as Physical Assets, deposits, life insurance gold in India that attracted the household sector
funds, provident fund and pension, currency, to spend in the physical assets. The standard of
claims on government and shares and debentures. living has also increased which requires the luxury
Analysis of variance has been used to compare in the day to day life of people. There is a strong
the various options available to the Indian need of the stable market by the corporate world
household. The study reveals that there is which can attract the household sector to invest in
significant difference among the options available the financial instrument. It is necessary for the
for the wealth accumulation in Indian household resource mobilization which ultimately accelerates
sectors (Table III, P.15). It reveals F= 23.960 the economic growth of the country.
(Sig at .05 level). Hence, household sector differs
Further study can be conducted to know the
in its saving option available to it. The savings in
reasons of differences in the saving pattern among
physical assets contribute maximum in the wealth
all the available options. The study was based on
accumulation while the saving in share and
the secondary data. The further study can be
debenture is minimum (Table II, P.14 and Figure
conducted by producing the primary data which
II, P.18) which concludes that Indians prefer their
exactly reveals the perception towards the saving
savings in the form of physical assets instead of
scheme.
financial instruments.
References:
Although financial inclusion is a mantra for the
Reserve Bank of India (RBI) and the government, Anli, S. (2010) Role Played by Banks in the
it is observed that the financial savings of the Process of Resource Mobilization and Supporting
household sector have been turning down over the Economic Growth in India, Journal of Finance,
years. Savings in physical assets comprise of net Accounting and Management, 1(1): 63-79.
addition to physical assets of the household,
consisting investment in construction, machinery, Ghosh, Rajarshi and Pain, Asis Kumar, What
luxurious items and equipments. Since 2000-01, Determines Household Savings in India? (June
the household sector has shown a preference for 2005). Available at SSRN:
http://ssrn.com/abstract=747046 or http:// Industrial and Developing Countries, The

dx.doi.org/10.2139/ssrn.747046 Developing Economies, XXXIV(2): 138-153.
Lusardi, A. (2009). Household Saving Behavior: Pati, A. P. Shome, D. (2011) Do Households Still
The Role of Financial Literacy, Information, and Prefer Bank Deposits? An Analysis of Shift in
Financial Education Programs (Working Paper Savings and Savings Determinants, IUP Journal of
No. 13824). Retrieved from Nationl Bureau of Bank Management, 10 (1) : 46-59.
Economic Research website http://www.nber.org/ Patnaik P. Narayan S.,(2007. May 8). Indians
papers/w13824.pdf prefer physical assets as savings. The Economics
Muradoglu, G. and Fatma, T. (1996) Differences Times, Retrieved from http://
in Household Savings Behavior Evidence from economictimes.indiatimes.com.
Table I
Shows the Time Series of Net Financial Saving (In Millions)
Net financial savings
Year Y X XY X2 Y*=a+bx*
2000-01 2,152,190.00 -6 -12913140 36 1891485.056
2001-02 2,474,750.00 -5 -12373750 25 2387637.804
2002-03 2,532,550.00 -4 -10130200 16 2883790.551
2003-04 3,132,600.00 -3 -9397800 9 3379943.298
2004-05 3,279,550.00 -2 -6559100 4 3876096.045
2005-06 4,383,310.00 -1 -4383310 1 4372248.793
2006-07 4,842,560.00 0 0 0 4868401.54
2007-08 5,802,090.00 1 5802090 1 5364554.287
2008-09 5,710,260.00 2 11420520 4 5860707.035
2009-10 7,747,520.00 3 23242560 9 6356859.782
2010-11 7,738,580.00 4 30954320 16 6853012.529
2011-12 6,321,950.00 5 31609750 25 7349165.277
2012-13 7,171,310.00 6 43027860 36 7845318.024
2013-14 8241470.771 7 58390295.4 49 8341470.771
2014-15 8737623.518 8 70700988.15 64 8837623.518
2015-16 9 81 9333776.266
2016-17 10 100 9829929.013
2017-18 11 121 10326081.76
2018-19 12 144 10822234.51
2019-20 13 169 11318387.25
Figure I
Trend Analysis of Net Financial Saving
Table II
Shows Descriptive Statistics of Saving in various Schemes
Saving Type Mean in Million N Std. Deviation

Currency 692468.4615 13 384695.7288
Deposit 1612103.846 13 899130.5774
Shares and debenture 227803.0769 13 259875.2758
Claim on government 330510.7692 13 456262.4038
Life insurance 1232793.846 13 713054.8582
PF 772723.8462 13 322823.9133
Physical asset 6674051.539 13 4206395.327
Total 1648922.198 91 2657757.201
Table III
ANOVA to Compare Saving in Various Options
Sum of Squares Df Mean Square F Sig.
Between 401267864896329.00 6 66877977482721.60 23.960* 0.02
Groups
Within Groups 234462735599230.00 84 2791223042847.98
Total 635730600495560.00 90
Table IV
Multiple Comparisons (Post-Hoc)
(I) Savingtype (J) Savingtype Mean Difference Std. Error Sig.
(I-J)
Currency Deposit -919635.38462 655300.64 0.80
Shares and debenture 464665.38462 655300.64 0.99
Claims on government 361957.69231 655300.64 1.00
Life insurance -540325.38462 655300.64 0.98
PF -80255.38462 655300.64 1.00
Physical asset -5981583.07692* 655300.64 0.00
Deposit Currency 919635.38462 655300.64 0.80
Shares 1384300.76923 655300.64 0.36
Life insurance 379310.00000 655300.64 1.00
PF 839380.00000 655300.64 0.86
Physical asset -5061947.69231* 655300.64 0.00
Shares and Currency -464665.38462 655300.64 0.99
Debenture Deposit -1384300.76923 655300.64 0.36
Claims on government -102707.69231 655300.64 1.00
Life insurance -1004990.76923 655300.64 0.72
PF -544920.76923 655300.64 0.98
Physical asset -6446248.46154* 655300.64 0.00
Claim on Currency -361957.69231 655300.64 1.00

Government Deposit -1281593.07692 655300.64 0.45
Life insurance -902283.07692 655300.64 0.81
PF -442213.07692 655300.64 0.99
Physical asset -6343540.76923* 655300.64 0.00
Life insurance Currency 540325.38462 655300.64 0.98
Deposit -379310.00000 655300.64 1.00
PF 460070.00000 655300.64 0.99
Physical asset -5441257.69231* 655300.64 0.00
PF Currency 80255.38462 655300.64 1.00
Deposit -839380.00000 655300.64 0.86
Life insurance -460070.00000 655300.64 0.99
Physical asset -5901327.69231* 655300.64 0.00
*
Physical asset Currency 5981583.07692 655300.64 0.00
*
Deposit 5061947.69231 655300.64 0.00
*
*
*
Life insurance 5441257.69231 655300.64 0.00
*
PF 5901327.69231 655300.64 0.00
*. The mean difference is signicant at the 0.05 level.
Figure II
Net Saving (Rs. in million) in various Saving Schemes
QUOTES
A leader is a dealer in hope.

Napoleon Bonaparte
Experience is one thing you can't get for nothing.

Oscar Wilde
A wise man can learn more from a foolish question than a fool can learn from a wise answer.
Bruce Lee
Success is finding satisfaction in giving a little more than you take.

Christopher Reeve
People won't have time for you if you are always angry or complaining.
Stephen Hawking
RESEARCH
The Effect of Credit Sufficiency on Loan Repayment Behavior

of MSMEs
Dr. Mateen Ahmed Siddiqui*
ABSTRACT
Access to finance is an important feature in the business operations of MSMEs. The aim of financing
MSMEs is to help them improve their business, grow the asset base and compete with other enterprises.
Usually, a significant portion of loan is given against collateral security which requires repayment.
However, repayment problems turn into a main hurdle for the financial institutions to continue providing
credit services. The present paper studies the loan repayment behavior of MSME and its relationship
with credit sufficiency. A descriptive analysis was done to permit the study to make use of both quantitative
and qualitative data collection techniques and data analysis procedures. In all, 112 enterprises were
chosen for the research. Evidence from the analysis shows that for 52 per cent of micro, small and
medium enterprises the amount financed was insufficient.
KEY WORDS: Credit, collateral security, Loan repayment, Borrowers, Monitoring
Introduction technology, quality and adopt modern

management methods. Thus accessibility of
In spite of various policy measures taken by the adequate finance at affordable cost is significant
governments since independence, most of the for Indian MSMEs.
problems of MSMEs still persist to trouble this
sector. MSMEs huge contribution to employment Objective of the study:
generation and the role they play in sustainable
1. To know whether there is any significant
development prompted many countries around the difference between amount demanded and
world to come up with special programs and sanctioned by financial institutions.
support organizations for the development and
growth of this sector. But the financing problems 2. To evaluate the effect of credit sufficiency
still persevere; MSMEs generally have restricted on loan repayment behavior of the
access to finance. This compels them to borrow enterprises
from unregulated lending markets or from their Hypotheses of the study
own dealers and end up paying much higher
interests. Not only does this lead to overpricing of The following hypotheses were formulated
products, but also confines the MSME for testing
entrepreneurs' ability to add value, upgrade
1. There is variation between loan demanded
* Dr. Mateen Ahmed Siddiqui is Professor, Deccan School of Management, Hyderabad

The Effect of Credit Sufficiency on Loan Repayment Behavior of MSMEs
and disbursed by financial institutions among Review of Literature

MSMEs
Martin determined the repayment performance of
2. There is variation between loan demanded Grameen Bank borrowers in Bangladesh and
and disbursed by financial institutions among discovered that education level and the area of
different sectors land possessed by the borrowers have a positive
impact on repayment performance.
3. Loan repayment is dependent on the
sufficiency of credit Uma S. evaluated the relationship between the
utilization of loan and its repayment. It was viewed
Methodology
that there exists a relation between quality of
Area of Study lending and loan recovery, improvement in lending
procedures qualitatively and quantitatively are
In order to select the sample units the prime task necessary to improve recovery of loans. Instead of
before the researcher was to select the districts strictly adhering to rules and regulations banks
which should be representative of highly should undertake a package program for proper
industrialized areas, moderately industrialized recovery of over dues.
areas and also the under developed areas. With
this objective the researcher has selected two Vimala P. established the relationship between
districts of Telangana namely, Hyderabad and proper utilization of loans and its regular
Rangareddy. repayment. It was concluded that even if there is
full utilization there cannot be full repayment owing
Sample Selection to different factors like inadequate income
To conduct the study, 112 MSMEs were surveyed generation, lack of infrastructural facilities,
pertaining to eight different sectors namely food, government policies and attitude of borrowers. It
chemical, pharmaceutical, engineering, service, was concluded that if the loan amount is sufficient
plastic, printing and miscellaneous were selected. borrowers will not resort to other high priced
sources of finance which will lead to prompt loan
Collection of Data repayment.
Primary data for the study is collected from Micro Godquin contended that borrowers who have
Small and Medium enterprises by using a sufficient money to reimburse might also default
structured questionnaire. intentionally. It was felt that both age and size of
loan have an opposite relationship to repayment
Data Analysis
performance.
The information gathered was tabulated and
Kohansal & Mansoori viewed that farmer's
analyzed by using percentages, t test, ANNOVA
experience, income earned, loan size and collateral
one way and Chi square test.
value have positive effect while loan interest rate,
Reference Period total application costs and number of installment
implies a negative effect on repayment
The data for the study was collected during the
performance of recipients.
period October 2014
Chong, Fennee founded that there exists a strong does not match with the expected returns, the
association between loan default behavior of loan amount is slashed. In case of MSMEs
entrepreneur with higher installment amount per where, paucity of finance is severe, such shrink
month. The financial capability represented by the will put them into more troubles. As the objective
income did not had any significant impact on of this study is to find out whether there is any
repayment behavior. The higher education level significant difference between amount demanded
will have significant predictive power over the and sanctioned by financial institutions, here in this
repayment practices, wherein a higher level of section inter industry and inter sector
education level attained implies better credit comparisons are prepared on the basis of
management. absolute amount of credit demanded and supplied
by financial institutions. The disparity in the
Tomola, M. Obamuyi compared the repayment
amount of loans demanded and the amount
performance of banks and micro credit institutions
sanctioned is presented in Tables 1 to 4.
in Nigeria. It was felt that banks were able to
perform better compared to micro credit Table 1 refers to the distribution of the sample
institutions in terms of repayment based on their entrepreneurs on the basis of the loan demanded
stern efforts of screening of loan applications, to loan sanctioned and disbursed by financial
monitoring of approved loans and enforcing loan institutions. The magnitude of total loan
contract. demanded by 112 MSMEs was Rs.
3,45,94,45,236, the total amount sanctioned was
Industry wise Disparity in amount demanded,
Rs. 2,55,89,46,740 which is 74 per cent of the
Sanctioned and Disbursed
total amount demanded and the amount disbursed
The expected returns of a project are an important was Rs. 2,39,29,51,696 which is 94 per cent of
factor determining the size of loans. If the financial the amount sanctioned. But the percentage of
institutions consider that the amount demanded amount demanded to amount disbursed is 69 per
cent.
Table 1 Loan demanded, sanctioned and disbursed by financial institutions

% of loan % of loan % of loan
No.
Total Loan Total Loan demanded Total Loan disbursed disbursed
Industry of
Demanded Sanctioned to Disbursed to loan to loan
units
sanctioned sanctioned demanded
SSI 78 1,50,80,05,236 98,55,47,740 65.35 89,78,70,216 91.10 59.54
MSI 34 1,95,14,40,000 1,57,33,99,000 80.62 1,49,50,81,480 95.02 76.61
Total
112 3,45,94,45,236 2,55,89,46,740 73.96 2,39,29,51,696 93.51 69.17
MSMEs
Source: Primary data
The disparity in the total funds demanded and The information of sample MSI enterprises reveal
sanctioned for the SSI units reveals that total that the requirements of 34 MSI units was Rs.
credit demanded by 78 SSI units was Rs. 1,95,14,40,000, whereas the amount sanctioned
1,50,80,05,236, credit sanctioned by financial was Rs. 1,57,33,99,000 which is 80 per cent of
institutions was Rs. 98,55,47,740 which is 65 per the amount demanded and the amount disbursed
cent of the amount demanded. The amount was Rs. 149,50,81,480 which is 95 per cent of
disbursed was Rs. 89,78,70,216 which is 91 per the amount sanctioned. The percentage of amount
cent of the amount sanctioned. The percentage of disbursed to amount demanded was 77 per cent.
amount disbursed to amount demanded is 60 per (Table 1) The insistence for 100 per cent or more
cent which is less than the total average of 69 per of collateral security for the loan amount is the
cent as shown in Table 1. principal reason for this disparity. Wide disparity
was also found between amount demanded by
SSI and MSI units.
The Graph 1 clearly points out the difference in the amount demanded, sanctioned and disbursed to SSI
and MSI. To know whether there is any difference between the loan demanded and sanctioned by
financial institutions, statistically t test for equality of means is applied.
Table 1 Loan demanded, sanctioned and disbursed by financial institutions
% of loan % of loan % of loan
No.
Total Loan Total Loan demanded Total Loan disbursed disbursed
Industry of
Demanded Sanctioned to Disbursed to loan to loan
units
sanctioned sanctioned demanded
SSI 78 1,50,80,05,236 98,55,47,740 65.35 89,78,70,216 91.10 59.54
MSI 34 1,95,14,40,000 1,57,33,99,000 80.62 1,49,50,81,480 95.02 76.61
Total
112 3,45,94,45,236 2,55,89,46,740 73.96 2,39,29,51,696 93.51 69.17
MSMEs
Testing of Hypothesis financial institutions among MSMEs is rejected

and the research hypothesis that there is
To know whether there is any significant difference
significant variation in the amount demanded and
between amount demanded and sanctioned by
disbursed by financial institutions among MSMEs
financial institutions among MSMEs the hypothesis
is accepted.
is tested with the help of t test.
Sector wise Disparity in amount demanded,
Ho : There is no variation between loan demanded
Sanctioned and Disbursed
and disbursed by financial institutions among
MSMEs. Sector wise analysis is prepared further in Table 4
to know whether there exists a significant
Ha : There is variation between loan demanded
difference among different sectors in terms of loan
and disbursed by financial institutions among
demanded, sanctioned and disbursed by financial
MSMEs.
institutions among different sectors.
Table 3 Independent samples t test
t - test for equality of means
t df Sig (2 tailed) Result
Loan
Equal variance assumed -4.365 110 0.000 Significant
Demanded
Loan
Sanctioned
Loan
Disbursed
As shown in Table 3. the 'P' value is 0.000 at 110 Testing of Hypothesis

degrees of freedom with 5 per cent significance
To know whether there is any significant
level for loan demanded, loan sanctioned and
difference between amount demanded and
loan disbursed by financial institutions between
sanctioned by financial institutions among different
SSI and MSI. The calculated 'P' value is less than
sectors the hypothesis is tested with the help of
0.05 and the value for t test 4.365 for loan
ANOVA one way
demanded, 5.005 for loan sanctioned and 4.879
for loan disbursed is higher than the table value of Ho : There is no variation between loan
1.645, hence it is concluded that there is demanded and disbursed by financial institutions
significant difference in the amount demanded, among different sectors
sanctioned and disbursed by financial institutions
to SSI and MSI. It is viewed that the credit Ha : There is variation between loan
requirements, sanctioning and disbursements are demanded and disbursed by financial institutions
different for SSI and MSI. among different sectors
Hence the null hypothesis that there is no variation

between the loan demanded and disbursed by
Table 4 Showing ANOVA results on difference among the sector between amounts demanded,
sanctioned and disbursed
With a view to examine whether there is any rejected and the research hypothesis that there is
significant difference between the loan demanded significant variation in the amount demanded and
and disbursed by financial institutions among disbursed by financial institutions among different
different sectors analysis of variance test is sectors is accepted.
applied. Table 4 shows the calculated value of 'F'
Loan Repayment Performance of the selected
and 'P' at 5 per cent significant level. The
MSMEs
calculated value of 'P' is 0.038 for amount
demanded, 0.028 for amount sanctioned and The repayment performance of select MSMEs is
0.028 for amount disbursed. As all 'P' values are shown in Table 5 and Graph 2. It is observed that
less 0.05 it is concluded that there is significant 73 per cent of the enterprises are paying both
variation in the amount demanded and disbursed principal and interest to financial institutions, while
by financial institutions to different sectors. Hence 8 per cent have fully repaid the loan amount. The
the null hypothesis that there is no variation enterprises who on account of their poor
between the loan demanded and disbursed by performance paid only interest are 15 per cent and
financial institutions among different sectors is 4 per cent of enterprises have defaulted.
Table 5 Repayment performance of MSMEs

Repayment performance Number of units Percentage of enterprises
Fully repaid 9 8.04
Payment of interest only 17 15.18
Payment of principal and interest 82 73.21
Defaulted 4 3.57
Total 112 100.00
Entrepreneur's opinion about adequacy of of the entrepreneurs received the partial of the
loan applied amount.
Table 6 shows industry wise entrepreneurs' The findings of Chinta, Kameswari (1992)
opinion about sufficiency of loan. It can be seen support this study. In her study of 90 small and
that only 48 per cent of entrepreneurs received medium enterprises financed by APSFC across
adequate amount, whereas maximum of 52 per the three districts of Srikakulam, Vizianagaram,
cent of entrepreneurs did not receive amount and Visakhapatnam, it was found that 54 per cent
adequately as shown in Graph 3. This would mean of the entrepreneurs feel that the assistance to be
that only 48 per cent of the entrepreneurs received adequate and 44 per cent found the assistance to
the full amount they had applied and 52 per cent be inadequate.
Table 6 Opinion about the adequacy of finance

Finance adequate Total Percentage of total
Yes 54 48.2
No 58 51.8
Total 112 100
Under these circumstances capital base of these agreed that the amount sanctioned to them is
enterprises is usually very weak as the balance insufficient to run the business smoothly and
capital investment of these units mainly comes efficiently, while 48 per cent of entrepreneurs
from their own funds or borrowed funds from reported that the amount is sufficient to carry on
unorganized sectors like friends, relatives and the business. In order to find out the relationship
money lenders. Even when financing is available to between the adequacy of loan and its repayment
these MSME from these sources, repayment of the hypothesis is tested as under
interest and principal is a cumbersome task as they
Ho: Loan repayment is not dependent on the
have to repay interest and principal to different
sufficiency of credit
sources and the gestation period of loan will also
be too short for MSMEs to make up a good Ha: Loan repayment is dependent on the
assets base. Secondly the very purpose of sufficiency of credit
institutional financing will be lost if the borrowers
have to take additional high cost loan due to It could be observed that 67 per cent of
inadequacy. enterprises who consider loan to be inadequate
are repaying the principal and interest to financial
The researcher under these circumstances institutions, 17 per cent are paying only interest
attempted to find out whether any association and 9 per cent have fully repaid and 7 per cent
exists between loan repayment behavior of the have defaulted. From among the enterprises who
enterprise and adequacy of borrowed funds is consider the finance to be sufficient 80 per cent
shown as under. are repaying interest and principal, 13 per cent
only interest and 7 per cent have fully repaid with
Testing of Hypothesis
no defaulters.
As per Table 6, 52 per cent of entrepreneurs
Table 7 Association between sufficiency of credit and loan repayment performance

Fully Payment of Repayment of Defaulted Total
Sufficiency of
repaid interest only interest and
credit
principal
Yes 4 (7) 7 (13) 43 (80) 0 (0) 54 (100)
No 5 (9) 10 (17) 39 (67) 4 (7) 48 (100)
Source: Primary data, Note: Figures in the parenthesis are percentage to total
Pearson chi-square value ?2 4.680, df=3, p value = 0.1953
Table 4.28 shows the association between 1997, pp.451- 473.

sufficiency of loan and repayment performance the
2. Uma, S. (2001), "Problems & prospects of
?2 value at 5 per cent significant level with 3
priority sector lending by commercial
degree of freedom and 'P' value were calculated.
banks: A case study of SSI in Bangalore
As the calculated value of ?2 4.680 is less than the
District". Unpublished Ph.D thesis,
table value of 7.81 and the 'P' value 0.1953 is
University of Mysore.
more than 0.05, it can be concluded that there is
no significant association between sufficiency of 3. Vimala, P. (2002), "A Study on the priority
loan and repayment performance of entrepreneur. sector lending by commercial banks in
Kerala" Unpublished Ph. D thesis,
Hence the null hypothesis that loan repayment is
Mahatma Gandhi University, Kerala.
not dependent on sufficiency of credit is accepted
and it is concluded that borrowers with insufficient 4. Godquin, M.(2004), Microfinance
credit will also repay loan to financial institutions Repayment Performance in Bangladesh:
and there is no relation between sufficiency of loan How to Improve the Allocation of Loans
and repayment performance of the enterprises. by MFIs. World Development, Vol. 32,
No.11, 2004, pp. 1909-1926.
Conclusion:
5. Kohansal, Mohammad reza & Hooman
An analysis of the pattern of industrial credit
mansoori, "Factors Affecting on loan
reveals that availability of credit is not only
Repayment Performance of Farmers in
inadequate, but is unevenly distributed among
Khorasan-Razavi Province of Iran",
different sectors, and among different size of
University of Hamburg, October 6-8,
enterprises. Thus the study concludes that there is
2009, Conference on International
significant variation among the different sectors in
Research on Food Security, Natural
terms of amount demanded, sanctioned and
Resource Management and Rural
disbursed from financial institutions. The
Development.
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are repaying the amount to different financial 6. Chong, Fennee (2010), Repayment
institutions. It is suggested that the financial Practices of the SME Borrowers, Recent
institutions should improve the loan monitoring, Advances in Management, Marketing,
reduce the cost of credit, supply sufficient credit Finances, WSEAS, Press, pp 76-79.
which will facilitate develop the business of
MSMEs, have ripple effect on the economy and 7. Tomola, M. Obamuyi, (2011) Comparative
reduce the borrower's attitude to not pay back Loan Performance In Banks And Micro-
their loans and help them to enhance their business Credit Institutions Nigeria: A Case Study
Of Ondo State, Global Journal of
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
RESEARCH

Industry: A Marketing Strategy Perspective
Sakhhi Chhabra* & Ritu Chhikara*
ABSTRACT
The cinema exhibition sector has undergone a significant change in the last few decades. In the current
dynamic and competitive global scenario, it is exigent for a marketer to grab the attention of the consumer
and attract him/her to watch a movie in theatres. Different types of consumers have different motivations
behind attending cinema and this is what makes markets heterogeneous. In this research, our main aim
is to conduct a market segmentation of young cinema audiences on the basis of their motivations to visit
cinema halls for getting the overall theatre experience. Psychographic data has been obtained by
conducting a survey using structured questionnaires which capture data from 370 movie goers. Using
this data, two-step clustering of the sample has been performed and it was found that audiences could
be grouped into different categories (2*2 matrix was developed). This was based on their motivations to
watch movies in theatres analogous to their frequency of visiting cinema halls. Hence, in a time of
expanding demand and yet increasing competition, this study makes an attempt to conduct a demand-
side analysis of cinema audiences from a marketing perspective. It provides meaningful insights to
cinema researchers and marketing managers, helping them identify their target markets clearly.
KEY WORDS: movie marketing, psychographic segmentation, motivation, marketing strategy, cluster analysis
Introduction entertainment market. Although India's film

entertainment industry is the largest in the world in
Movies are not usual products to sell to terms of the number of films it produces (CBFC,
consumers. Consumers possess myriad and 2011), the market space in terms of good quality
complex motivations for investing time and money cinema halls is inadequate to handle the crowd as
in the area of movie entertainment. The cinema a result of which producers are vying for the same
industry in India has undergone significant changes screen space. While on one hand the demand of
in the last few decades. Growing number of consumers for entertainment products is rising,
multiplexes, steadily increasing ticket prices, their choice making ability is becoming finer by
digitization-facilitated countrywide releases, the day.
emergent star power and more films with
influential content and storyline are some of the With this growing demand and intensifying
rationalizations for the growth of Indian film competition, an important question facing both
* Sakhhi Chhabra is Research Scholar, Management Development Institute, Gurgaon, India

* Ritu Chhikara is Assistant Professor, ITM University, Gurgaon, India
cinema researchers and marketers is how to with a smaller marketing budget to reach
generate a deeper understanding of their audiences across diverse and regional markets.
consumers. It is important to understand your Indian cinema has continued to enchant the Indian
consumers in order to effectively communicate and audience for almost a century now and it is
market to them. The focus of marketers towards expected to continue on its growth trajectory and
understanding consumers' underlying motivations be worth INR 193.3 billion by 2017 (KPMG,
for visiting cinema halls can lead to development of 2013).Considering the 4 P's of Indian movie
effective and meaningful market segmentation marketing, two are more relevant from film
strategies which are backed by clearly identifiable marketing perspective. Product remains totally in
consumer typologies. This proposition is the core the hands of creators i.e. directors or producers.
idea of market segmentation that has been Price is governed by laws, theatre policies and
presented in this paper. It has been realised and regulations. Place and Promotion are two
established in the past that markets are not important tools of marketing mix to achieve
homogeneous and all consumers cannot be targeted results. Film marketing activities have
categorised into one group. Thus there is a need to progressed beyond posters and promos with the
identify the differences and group them in such a aggressive use of new marketing tools on social
way that a better understanding of the motivations media, portals, search engines and even activation.
of the consumers to visit cinema halls emerges. In Use of social media has become an important
other words, this paper proposes to segment component of pre-release marketing strategy for
consumers on the basis of their motivations to visit any movie.
cinema halls for getting the overall theatre
Past research has attempted to contribute
experience. Although the quality of the complete
generously to the segmentation literature. There
experience from the context of cinema halls falls
have mainly been two general approaches to
under the purview of this paper, the type of movie
market segmentation: "people" oriented and
being played is considered as only one factor
"product" oriented. As applied in this paper, the
responsible for creating these motivations.
people-oriented approach utilizes various
Literature Review: dimensions along which to measure people and
then relate the people segments to the product or
The Indian movie industry is the largest in the service. Studying the market from a consumer
world, with more than 1,000 movies produced perspective can provide valuable insights for
every year in more than 20 languages. With 3.3 marketers.
billion tickets sold annually, India also has the
highest number of theatre admissions (Ernst & According to researchers such as Funk, Mahony
Young, 2010).Multiplexes are increasing across and Havitz (2003),effective segmentation practices
main Indian cites as well as penetrating in smaller can result from developing a deep understanding
towns (CRISIL Research, 2010). Regional of the psychological reasons driving motivations
language cinema is gaining momentum with and participation of the consumers.Scholars have
investments from Indian and foreign studios (Ernst always considered segmentation beneficial in
& Young, 2010). With digitization of movies more marketing strategies (Smith, 1956, Claycamp &
number of screens can be reached at lesser cost. Massy, 1968; Dickson & Ginter, 1987; Wedel &
Revolutionizing media distribution allows projects Kamakura,2000). The seminal paper by Smith
(1956) presented segmentation with the claim that study of underlying motivations of people to visit
markets were moving towards imperfect theatres for watching movies is a complex forte.
competition rather than achieving a state of perfect Different types of consumers have different
competition because they were becoming diverse motivations behind attending cinema and this is
rather than homogeneous. Segmentation is viewed what makes markets heterogeneous. Therefore,
as a valid and appropriate marketing strategy there is a consistent realisation of the need to pay
under conditions of imperfect competition. Market more attention to consumer's expectations and
segmentation being used as a strategy had desires and focus on the demand-side of the
economic reasons; it demonstrated how an story. A review of literature, especially in the
organisation could sell a particular product or Indian context, reveals that past researchers have
service to different segments of the market to had more of a film-focused approach in their
improve profitability (Claycamp & Massy, 1968). work mainly revolving around the stars, directors,
There have been attempts made by some and issues highlighted in the films. The cohesive
researchers to segment the audience in the cultural dialogue which exists between the audiences and
field. This includes work by Belk and Andeasen their overall cinema experience has been
(1980), Peterson(1980), Pick(1980) and completely ignored. Therefore, various marketing
Hodgson(1992) who classified audiences on the and communication strategies adopted by cinema
basis of their frequency of cinema visit; Strang and managers have had no inputs from audience
Gutman(1980) and Walshe (1992) used research data. Thus, it is necessary to develop a
inclination or interest towards the arts; whereas demand side analysis from a consumer
Mayaux, (1987) adopted benefits sought by perspective in the Indian cinema industry. This will
consumers as their variable of study for provide important insights for cinema managers
segmentation. and movie promotion agencies, in designing
In this paper, we have assumed, on the basis of marketing strategies customized for various
literature review, that different types of consumers segments to better meet consumer needs and
have different motivations for attending cinema stimulate attendance. To meet this objective, an
halls for watching movies. We attempt to segment exploration of the possibility of existence of
the movie goers on the basis of their "motivations" different groups within movie audiences in the
for visiting movie halls. Segmentation on the basis market is essential.
of the demographics of consumers has also been In this research, our main aim is to conduct a
performed.
market segmentation of young cinema audiences
The above review of literature communicates the who watch movies in theatres at least once in
importance of motivations of people to visit three months. We intend to segment our target
cinema halls for overall movie experiences. The population on the basis of certain psychographic
variations in these motivations and demographics and demographic variables which have been
bring differences in the consumer's preferences derived based on a review of segmentation
and choice patterns. literature as well as conducting focus groups.
Psychographic data obtained from conducting a
Research Gap and Objective of the Study:
survey using structured questionnaires captures
There has been a steady increase in competition in the motivations of 370 movie goers who watch
the Indian movie industry in the last few years. The movies in cinema halls. Using this data, a
clustering of the sample has been performed by in disposable incomes. The sample mainly
applying various statistical techniques. This is done comprises of young people in Delhi and NCR
to find out the differences in motivations of people (National Capital Region) who watch movies at
to watch movies in theatres. As a result of this least once in three months. The total sample of
clustering, different segments emerge, with each 370 cinema goers was collected via cluster
segment having a unique identity. With this sampling, which is a probability sampling method.
classification as the basis, we intend to understand This method ensures, first the target population is
two things which also become the research divided into mutually exclusive and collectively
questions for this study: exhaustive subpopulations, or clusters. Then a
random sample of clusters is selected, based on a
1. Is it possible to segment cinema goers on probability sampling technique such as Simple
the basis of certain psychographic variables random sampling. For each selected cluster, either
defined within the parameter of their all the elements are included in the sample (one-
'motivations' to do so? If the answer to this stage) or a sample of elements is drawn
question is 'yes', we pose our subsequent probabilistically (Malhotra, 2004). Thus cluster of
question: young cinema goers who watch movie once in
2. How do motivations for visiting cinema halls three months are selected and then random
differ among audiences? sampling is done.
Differences among groups have also been studied The questionnaire was framed in a structured way
using demographic segmentation. The interest encapsulating all the different psychographic
derived for conducting this research came from the elements (See Appendix 1). In order to design the
paper by Cuadrado and Frasquet (1999) who questionnaire two focus group meetings were
made an attempt to segment young cinema conducted with the sample youngsters to capture
audiences in a different temporal (15 years back) their motivations towards watching movies in
and cultural setting (Spanish culture). This study theatres and their frequency of visiting cinemas.
attempts to contribute to the scanty literature that After this, a pilot study was conducted to vet
exists around cinema audiences' segmentation, questions further, which finally gave shape to the
from a global context, and to the zilch literature final questionnaire encompassing questions around
that exists from the Indian context. psychographic, demographic and socioeconomic
variables.
Research Methodology
The data of 370 sample was processed using
For this exploratory research which involves statistical techniques in SPSS. In order to obtain
segmentation of cinema audiences, the sample was the segments of movie goers based on different
mainly collected from the age group of 15-35 psychographics, we use two-step clustering. In the
years, which we refer to as 'young cinema goers'. first step of this technique, many small sub-clusters
The reason for choosing this age group is that, are made using the Bayesian information criterion
more than half a billion people in India fall under (BIC) for pre-clustering the records. The second
the age of 25 (Ernst and Young, 2013). Their step refines the initial estimate by finding the
propensity to spend on leisure and entertainment is greatest change in distance between the two
growing faster than the economy itself with a rise closest clusters in each hierarchical clustering
stage. If the desired number of clusters is compared to afternoon (22.7%) and late evening
unknown, the SPSS Two-Step Cluster (24.3%) shows. For the question of preference of
Component will find the proper number of clusters cinema hall, 37.8% preferred visiting any cinema
automatically (Fraley and Raftery, 1998). This nearby, 25.9% opted only multiplex, 27.6%
technique is capable of handling both continuous voted for cinema halls in malls and 8.6% choose
and categorical variables (Banfield and Raftery, to visit specific cinema halls only.
1993). After obtaining various clusters, we use
From the two-step cluster analysis, we first saw
ANOVA and chi-square tests to find differences
the silhouette measure of cohesion and separation
among groups and further make segmentation
(it is a measure of the clustering solution's overall
based marketing strategies.
goodness-of-fit). It is essentially based on the
Results and Discussion average distances between the objects and it can
vary between +1 and -1(Mooi and M. Sarstedt,
The sample population of 370 youngsters who 2011). In this case the measure was between
watch a movie at least once in three months was 0.20 and 0.50 which marks cluster quality as fair
divided among females 164 (44.3%) and males (Mooi and M. Sarstedt, 2011). The four group
206 (55.7%). Maximum respondents belonged to solution was appropriate as it gave more
the group of 15-21 (64.1%), followed by the age differentiated clusters as given in figure (1) below.
group of 22-28 (27.3%). The sample mainly Ratio of largest cluster to smallest cluster was
composed of students (64.9%) or employed 3.12 which is fair enough to make interpretations
(35.1%). In terms of frequency of cinema for each separate cluster (Mooi and Sarstedt,
attendance, 18.9% went at least once a week, 2011). Further interpretations were made using
33.5% went at least twice a month, 21.6% went model viewer option which is an evaluation tool
once a month and 25.9% visited cinema at least that graphically presents the structure of the
once in 3 months. More than 50% of respondents revealed clusters. Three most important variables
preferred visiting cinema with friends, 19.7% for segmenting the clusters has been 'to have
preferred going with family and almost 30% something to talk about', 'primary source of
preferred either option. Weekend was preferred entertainment', 'to get updates on latest/upcoming
over weekday by 20.5% respondents and evening movies' (Appendix 2).
timings (33.5%) were most preferred as
‘Movie Enthusiasts’ ‘Selective Movie

Motivation for watching
High Goers’
‘Regular Movie ‘Movie Laggards’

Low
Goers’
movies
High Low
Frequency of Visiting Cinema
Figure 1: Segmentation of young Indian cinema audiences based on their motivations

and corresponding frequency of theatre visits
The results of the 2 step-cluster analysis are The third group is that of ''Selective Movie
construed as shown in figure 1 above. Group 1 Goers''. As the name itself tells, this group is quite
has been called ''Movie Enthusiasts''. The particular about selecting the movie they watch.
audiences in this cluster are enthusiastic to watch Consequently, their frequency of visiting is not
movies which seem to be carrying a strong and high. They choose to watch movies which come
inspiring theme. They would like to learn about a from their choice of directors. They are particularly
subject and want to keep themselves updated with interested in themes that inspire them or entertain
latest upcoming movies. They dwell deep into the them to the core. As obvious, they are very critical
work of a director, as a trusted critique. High end about providing movie reviews.
multiplex cinema experience and good audio visual
Finally the last group that was identified was
effects are an added attraction for them.
''Movie Laggards''. They are audiences who go for
The second group is that of ''Regular Movie movies because there are not many alternative
Goers''. For these audiences watching movie is a sources of entertainment. Hence cinema visits
primary source of entertainment. Movies are an become a common pastime for them. It also
interesting discussion point for them. They visit provides them an option to spend time with loved
theatre to spend time with loved ones and enjoy ones. Therefore, based on our analysis, four
good audio visual effects of a theater. They want segments were identified as: 'Movie Enthusiasts'
to keep themselves updated with latest upcoming (24.9%), 'Regular Movie Goers' (42.2%),
movies and keen to dwell into an interesting new 'Selective Movie Goers' (13.5%), and 'Movie
topic. Laggards' (19.5%) as shown in figure below.
Figure 2: Cluster Sizes of young Indian cinema audiences
ANOVA test was conducted to compare the either friends or family. They prefer any cinema
mean scores of 4 segments identified and cinema hall nearby and have not shown any significant
characteristics. Significant difference was preference for show timings or days to visit
observed in clusters around six characteristics cinema.
namely: ease of access, free parking, advance
Out of 156 'Regular Movie Goers', 99 are
ticket booking, comfortable seats, sound and
students, followed by 45 full time employees.
image quality and options for food and snacks
Their frequency of visiting cinema is at least twice
(See Appendix 3). 'Selective Movie Goers' and
a month or once a week. They prefer going with
'Regular Movie Goers' have high mean scores for
friends, on weekends and any timings. They are
ease of access indicating they prefer going to
interested in visiting nearby cinema halls.
cinema theatres which is easily accessible.
'Regular Movie Goers' and laggards prefer free Finally 'Movie Laggards' are students who do not
parking, advance ticket booking and comfortable have any consistent frequency of cinema
seats. 'Regular Movie Goers' have rated sound attendance. They visit cinema with friends, on
and image quality as an important characteristic. weekdays or weekends, evening shows and any
Options for food and snacks have been rated high cinema hall nearby.
by all the segments except 'Movie Enthusiasts'.
We infer from the results that 'Regular Movie Implications of the study
Goers', who comprise the most promising This study is based on a segmentation approach
customer for marketers, look for technical as well for studying cinema audiences in the Indian movie
as peripheral services in their overall cinema industry. On the basis of results obtained in this
experience. Interestingly, members of all the four study, it was found that audiences could be
segments have provided high score to comfortable grouped into different categories. This was based
seating and good sound and image quality. on their motivations to watch movies in theatres
In order to characterize the new segments analogous to their frequency of visiting cinema
identified based on the demographic data, we halls. A framework was developed as shown
conducted a chi square test (Appendix 4). ''Movie above (fig. 1) which talks about four types of
Enthusiasts'' are a mix of students (age band of groupings of the sample: 'Movie Enthusiasts',
15-21) and full time employees in the age band of 'Regular Movie Goers', 'Selective Movie Goers'
22-28. The frequency of their cinema attendance and 'Movie Laggards'. Further, these four groups
is evenly distributed across the following items: at were also checked on the basis of certain
least once a week, twice a month, once a month demographic variables and interesting results
and once in three months. They prefer watching were obtained as discussed in the sections above.
movies with friends, preferably over weekends This study has interesting implications for cinema
and evening shows and they do not have any managers and provides meaningful insights for
specific hall preference. them to use. Managers can make strategies
On the other hand, out of 50 'Selective Movie according to the specific segment of audiences
Goers', 35 are students in the age band of 15-21. that they are intending to target. For example, it
They do not visit cinema halls frequently. They would be most profitable to attract 'Movie
prefer going to movies once in 3 months with Enthusiasts' because they would always be
interested in visiting cinema halls. They are more sample size and provide more insights. More
quality driven in terms of movies and less reasons for visiting cinema halls can be explored
concerned with peripheral services. Thus cinema by interviewing a larger number of respondents.
mangers can identify such groups and customize The 'quality' of the movies, which is an exogenous
packages for them. Attractions such as free variable, has not been covered under the scope of
parking, discount on booking in advance or food/ this study. Thus in future, such aspects could be
snacks on visiting the requisite number of times given consideration and more exhaustive segments
can be used to attract audiences. could be developed.
'Regular Movie Goers' can be offered loyalty Conclusion
cards which keep them coming back to same
In a time of expanding demand in the cinema
theater. They are less concerned with the type of
industry and yet increasing competition, this study
movies and wish for peripheral services like free
makes an attempt to conduct a demand-side
parking, comfortable seats, high sound and image
analysis from a marketing perspective. It attempts
quality, ease of access etc. As they prefer
to provide meaningful insights to marketing
multiplexes or cinemas halls in malls, the managers
managers and help them identify and understand
can offer them bonus tickets on purchasing the
their target markets clearly. Cinema halls must
requisite amount of tickets in a month (cumulative
provide a unique benefit to the audiences to keep
reward system) or free parking when they visit a
them coming back to the same theatre over and
particular cinema hall.
over again. The impact of the promotion and
It will require some serious efforts to bring communication strategies that are designed
'Selective Movie Goers' to cinema halls as their presently could be largely improved by adapting
frequency of visiting is comparatively less. In their these to the profiles of the target groups. Hence,
case, cinema managers can offer discounts on the contribution of this study lies in guiding
advance ticket bookings. Another strategy could companies in their process of devising their
be multi-merchant loyalty coalitions where cinema positioning and communication strategies in a much
ticket can be clubbed with credit card services or more customised manner.
other retailers to increase the frequency of
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Appendix 1: Segmentation of Cinema months. The questionnaire is confidential and will

Audiences in the Indian Movie Industry take about 5 minutes to complete. Kindly evaluate
the items in the questionnaire and rate on a five-
This study is being conducted as part of a project. point scale.
You are required to proceed with this study only if
Appendix 2: Mean scores of 4 clusters on all
you watch a movie in cinema hall at least once in 3 variables
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly Agree

Disagree
I prefer watching a movie at cinema hall because of: Your response
It is a primary source of entertainment
To spend time with loved ones
It seems like a movie worthy of watching in theatre because of good audio and visual
effects
Lack of alternative sources of entertainment
To learn more about a subject/ or interesting topic
To have something to talk about
To see a work of a director
It seems to be carrying a strong and inspiring theme
To enjoy the rich experience of high end Multiplex
To get updates on latest/ upcoming movies
Any other:
I prefer going to Cinema halls which have:
Ease of access
Free parking
Advance ticket Booking
Promotional/ Price Reductions
Comfortable seats
Sound and Image quality
Options for Food/ snacks
New infrastructure
Part 2: Other Information

Gender Male Female
Your Age 15-21 22-28 29-35
Occupation Student Part time worker Full time worker Unemployed
Frequency of cinema attendance At least once a week Twice a month Once a month Once in
3 months
I prefer going to cinema with Friends Family Either
I prefer going to cinema on Weekday Weekend Either
I prefer watching (Show timing) Morning Afternoon Evening Late evening
Any
Preference for Cinema Hall
Any Cinema hall Nearby Only Multiplex Cinema hall in Malls Specific cinema hall only
Variables Segments ‘Selective ‘Regular

‘Movie Movie Movie ‘Movie
Enthusiasts’ Goers’ Goers’ Laggards’
(92) (50) (156) (72)
2.22 2.64 3.45 1.64
To have something to talk about
2.72 2.16 3.78 3.58

It is a primary source of entertainment
3.13 1.64 3.40 2.39

To get updates on latest/ upcoming movies
To enjoy the rich experience of high end 3.76 1.92 3.63 3.14
Multiplex
To see a work of a director 2.83 3.16 3.13 1.58
To learn more about a subject/ or interesting 2.96 2.48 3.76 2.33

topic
2.80 2.72 4.04 3.67
To spend time with loved ones
It seems to be carrying a strong and 3.67 3.12 3.91 3.00

inspiring theme
It seems like a movie worthy of watching in 3.91 2.96 4.03 3.39
theatre because of good audio and visual
effects
1.93 2.08 2.74 2.11
Lack of alternative sources of entertainment
Appendix 3: ANOVAs results for cinema characteristics and 4 segments
ANOVA
Sum of
Squares df Mean Square F Sig.
F1 Between Groups 13.454 3 4.485 5.342 .001
Within Groups 307.238 366 .839
Total 320.692 369
F2 Between Groups 16.905 3 5.635 3.518 .015
Within Groups 586.165 366 1.602
Total 603.070 369
F3 Between Groups 18.129 3 6.043 4.664 .003
Within Groups 474.260 366 1.296
Total 492.389 369
F4 Between Groups 7.700 3 2.567 2.325 .075
Within Groups 404.019 366 1.104
Total 411.719 369
F5 Between Groups 9.771 3 3.257 3.925 .009
Total 313.470 369
F6 Between Groups 5.200 3 1.733 2.652 .049
Total 244.368 369
F7 Between Groups 23.335 3 7.778 6.753 .000
Within Groups 421.573 366 1.152
Total 444.908 369
F8 Between Groups 8.608 3 2.869 2.107 .099
Within Groups 498.462 366 1.362
Total 507.070 369
Appendix 4: Chi Square Results
Movie Selective Regular Movie

Enthusiasts Movie Goers Movie Laggards Total
(92) (50) Goers (156) (72) (157) Sig
Male 47 29 86 44 206 0.62
Gender
Female 45 21 70 28 164
15-21 56 35 98 48 237 0.706
Age 22-28 30 10 42 19 101
29-35 6 5 16 5 32
Student 61 35 99 45 240 0.887
Occupation Full time employee 23 10 45 22 100
Unemployed 8 5 12 5 30
At least once a week 16 10 34 10 700.004**
Frequency of
Twice a month 22 12 66 24 124
cinema
Once a month 26 8 24 22 80
attendance
Once in 3 months 28 20 32 16 96
Friends 49 25 77 34 185 0.269
Company Family 18 6 38 11 73
Either 25 19 41 27 112
Weekday 10 14 26 8 58 0.101
Day Weekend 30 16 60 28 134
Either 52 20 70 36 178
Morning 4 0 22 4 30.002**
Afternoon 22 14 32 16 84
Timing Evening 34 8 54 28 124
Late evening 26 20 28 16 90
Any 6 8 20 8 42
Any Cinema hall Nearby 28 22 60 30 140 0.296
Only Multiplex 28 16 34 18 96
Hall Preference
Cinema hall in Malls 30 8 44 20 102
Specific cinema hall only 6 4 18 4 32
RESEARCH
Gold Monetization: Analyzing the situation of Acceptance or

Resistance by Indian Investor
Dr. Mohita Mathur*
ABSTRACT
The Indian government recently announced the Gold Monetization scheme. The current paper focuses
on identifying the features of the scheme as well as the acceptability of the scheme by the Indian investor.
Will the scheme be a win win situation for all the parties interested in the scheme viz Government,
investors & household sector.
Indian household sector is not investing in gold for the sake of investing, the emotional attachment with
the yellow metal is the great demand driving force. The piousness of purchasing the yellow metal, but
currently the investing community is India is young community, who can be motivated and convinced to
invest in the scheme. The scheme is at the nascent stage and many decisions wrt the interest rate are still
to be addressed. Challenges in the form of detachment with gold, melting the jewellery and melting
charges are to be successfully met.
KEY WORDS: Gold Monetization, Investors, Indian Financial Market
Gold has been a very popular mode of investment 2. Gold bonds will be issued with a rate of
among the Indian investor community & household interest to be decided by the government.
sector as it is estimated that 20,000 ton of gold is Interest will be calculated on the value of
lying idle in the bank lockers . To shun off the gold deposited at the time of investment: the
Indian investors from the tendency of accumulating interest rate need to competitive when
gold in the physical form, Government on compared with other investment avenues to
September 9th 2015, announced the Gold lure the investors to the scheme, also enable
Monetization scheme. Under the scheme two the investors to receive the fix payment in
proposals are announced: Sovereign Gold Bonds the form of regular growth.
& Gold Monetization.
3. Gold bonds will be issued in denominations
Key features & Effects of 5, 10, 50, 100 grams of gold. The cap
per person per year has been set at 500
1. Sovereign gold bond will enable investors to
grams: Cap amount is justifiable as
buy gold certificates from the government,
expressed in Indian terms 500 grams is 50
which can later be exchanged for money or
Tola which is enough as the amount of
physical gold at the prevailing rate.
investment.
*Dr. Mohita Mathur is Asst. Prof. (Management) IITM, New Delhi
E mail Id: [email protected]
Gold Monetization: Analyzing the situation of Acceptance or Resistance by Indian Investor
4. Duration of such gold bonds will be for of marriage, monetization process will have to
minimum of 5 to 7 years to protect investors face confrontation on the emotional front.
from medium term volatility in gold prices:
Another important element is the age factor, the
Short term arbitrageurs will not be attracted
investing community in metro cities is young and
as they generate profits by regular
young people must be targeted as they can act as
purchasing & selling of gold.
the driver to change the emotional attachment
For an Indian investor, holding Gold reserves is with the yellow metal and to showcase it more
not merely a mode of investment but it have a like an investment avenue.
value more than that one is the internal satisfaction
of carrying the investment instrument with self
According to a report published by the

FundsIndia.com on the demographic profile of the
urban retail investor, today the female investor
constitutes a good representation in the investing
community. As mentioned in the table female
participation in the metro cities is nearing to 21%
on an average, indicating 1 in 5 investors is female
across India.
Source: Fundindia.com
Such scheme should be promoted among the

investors as safeguarding of their priced
possession as these days banks are also facing
few security issues as the case of burglary in the
lockers of Punjab National Bank made the locker
holders penniless as all the lifetime saving was
burgled. It is important to make the investors
Source: Fundsindia.com aware of the fact that according to Section 152 of
the Indian Contract Act, a bank is not responsible
During a discussion with the Female investors for any loss or damage to the contents of a
regarding the policy of getting the gold monetized, locker. Also the Bank is not disclosed of the
the factors identified were emotional association belongings of the locker so in case of any
with the yellow metal. Wearing the yellow metal is damages or losses bank can be hold responsible.
a matter of pride & status among the female
community, also there is a tradition of mother In order to safeguard their priced belongings the
passing her possessions to her daughter at the time investors are required to take insurance policies
as offered by few banks like Axis Bank promises government is making effort to disclose the funds
to safeguard against burglary either at home or in kept hidden in the form of gold reserves. In smaller
locker. cities and towns purchase of gold still takes place
in cash, so that there is no problem of disclosure
Popularity within small cities and villages is again a
and black money is very easily converted into the
challenge as it is difficult to convince the people of
priced possession. High degree of convincing is
monetizing process. Within the farming community
required to make the monetization scheme
or Rural areas account for nearly 60% of the
popular.
country's annual gold consumption of 850-900
tonne (Economic Times, 23rd June, 2015), so Government is making appreciative effort to
they must be made aware of the pros of getting reduce the dependency on the physical form of
their hard earned money invested in the sovereign gold, and thus curbing import of physical gold
bond. through direct & indirect / unofficial channels.
Investors must be made aware of the benefits of
Monetization scheme is attracting investor to
the schemes and to make it a competitive
submit their gold reserves or in other words
investment avenue.
Win Win: Government & Investors
Even after so much of incentives for making the as it will only result in the submission of
monetization scheme popular, government still gold bars and coins and not jewellery.
needs to face few challenges
3. Fee charges for the melting, testing/fire
Challenges: assaying charges, Stone removal & Melting
loss
1. Emotional Attachment with the yellow gold
Government need to make the scheme popular
2. Melting of gold jewellery to obtain gold will
among the female investors and rural areas as
face resistance from the household section.
they represent the biggest investors in gold &
Melting of gold will act as a deterrent factor
bullion.
QUOTES
My advice to other disabled people would be, concentrate on things your disability
doesn’t prevent you doing well, and don’t regret the things it interferes with.
Don’t be disabled in spirit, as well as physically.
Stephen Hawking
The best and most beautiful things in the world cannot be seen or even touched
they
must be felt with the heart.
Helen Keller
Being diagnosed with Dyslexia at age 60 was “like the last puzzle part in a tremendous mystery
that I’ve kept to myself all these years.”
Steven Spielberg
One in four people, like me, have a Mental Health problem.

Many more people have a problem with that.
Stephen Ery
RESEARCH
Higher Education Branding and its influence on student's

choice of selecting a University
Niharika Bharti* & Prof. Harsh Purohit*
ABSTRACT
In the hyper competitive environment of education sector, the branding of higher education has become
an essential element to gain competitive advantage. In order to match the demand and supply gap and
to attract the prospective students, the higher educational institutions should focus on the activities of
their brand building and recognition. The study focuses on need and importance of various promotional
strategies adopted by the colleges/universities as a part of their overall marketing campaign and its
impact on their brand recognition. More specifically the objectives are to study the influence of branding
of higher educational institutions on the decision making process of students while taking admission, to
identify the important sources of information gathering and to suggest effective strategies for higher
education branding. The primary data required for this is collected from the students of few renowned
colleges/universities of Bangalore city with sample size of 150 students. Data has been further analyzed
using SPSS 20. The findings of the study suggest that various factors and promotional measures associated
with branding show a positive influence on student's choice of selecting Higher Education Institutions.
KEY WORDS: HEI, Branding, Brand Building, Brand Strategies
1. Introduction: brand management practices. Over the past few

years, branding has become an increasingly
Higher education has become one of the fastest
popular phenomenon among Higher Education
growing industries experiencing tough competition
Institutions. With the advent of globalization,
among its different players. Thus, the branding of
universities and colleges work to adapt to a better
University has become very important to
established educational market across national and
differentiate one university from the other (Zulkifli,
international boundaries (Brown & Oplatka,
2013). Different Higher Education Institutions has
2007).
accepted the fact that in order to survive the
competition, they need to differentiate themselves Higher education sector is different from other
and attract talent (Waeraas & Solbakk, 2009). service sectors, therefore the branding principles
The Higher Education Institutions have now applicable to other service sectors cannot be
become a brand, applying various marketing and found completely compatible with the Higher
*Niharika Bharti Junior Research Fellow and Doctoral Scholar, Centre for Digital Media Marketing, Banasthali
University,
*Prof. Harsh Purohit Professor & Dean, FMS- WISDOM, Centre for Digital Media Marketing, Banasthali University
Higher Education Branding and its influence on student's choice of selecting a University
Education Sector (Roper & Davies, 2007). The Higher education industry is experiencing greater
higher education branding is still in its early stage competitive pressure and it will be benefited by
and not many studies have been conducted in this utilizing traditional business theories while deciding
context. Although change has been observed in the on the organizational brand management and the
situation, but the evaluation and measurement of strategic issues (Williams & Omar, 2014).There
effectiveness of branding activities in case of are numerous educational institutions in the world
university is still a challenge (Zulkifli, 2013). that are applying brand management and
marketing principles in order to achieve
2. Literature Review:
competitive advantage (Brown & Oplatka, 2007).
Branding of Higher Education Institutions Higher educational institutions are often utilizing
principles and techniques of branding to
Since higher education is a part of services, thus all differentiate themselves from one another and are
the marketing principles related to services are spending a considerable sum of money on it
applicable on higher education institutions. In the (Chapleo, 2010).
present context the students will be treated as the
customers of higher education sector (Abbas, The success of service firms depends on
2014). Higher education as a part of service maintaining healthy relations with the stakeholders.
industry is based on people and requires effective Relationship marketing serves as an effective and
and efficient delivery of services to its customers. appropriate approach for the service firms (Berry,
The industry is characterized by intangible actions, 1983). Different studies were carried out to mark
high level of customization, and narrow demand the importance of relationship building in the
fluctuation with respect to supply and operates context of services. (Kantanen, 2007), highlighted
with single or multiple delivery methods (Brown & the importance of relationship building in
Oplatka, 2007) (Mazzarol & Soutar, 1999). developing public relations and university-
community relationship through dialogic community
In recent years, the higher education sector is relations model. (Grunig, Grunig, & Dozier,
facing a highly competitive environment for its 2002), studied the contribution of public relation to
faculty, students and research (Beneke, 2011). the effectiveness and strategic planning of an
Since most of the higher education institutions have organization and to develop long term relationship
recognized the need and importance of marketing with the public.
themselves in the competitive climate, substantial
literature have been developed to apply the Challenges in Higher Education branding
branding concepts of different sectors to the higher
The branding of higher education industry faces a
education sector (Gibbs, 2002). The competition
number of challenges different from those of any
in higher education sector has increased at national
ordinary service provider as the higher education is
as well as international level and the Higher
a non commercial industry and thus it has to be
Education Institutions from different part of the
wiser in its branding and marketing efforts
world have started looking to differentiate
(Sharma, 2007)
themselves and attract talents for their existence
and survival (Waeraas & Solbakk, 2009). Due the complexity of higher education institutions
the brand development may not be easy as the
higher education industry has diverse 2003), and marketing models (Mazzarol &
stakeholders, faces institutional resistance to Soutar, 1999). Growing importance of branding
change, information gap, lack of formal in Higher Education sector has been witnessed
communication network and institutional but the literature addressing the influence of
leadership (Birnbaum, 1983) (Chapleo C. , 2007) Higher Education branding on student's choice of
(Edmiston, 2008) (Hankinson, 2001) (Brown & university is comparatively very little as the study
Oplatka, 2007) on Higher Education branding is still at a very
pioneer stage (Brown & Oplatka, 2007). The
Difference in the perception of consumers and
research gap thus identified by the researcher has
owners is another important challenge faced by
motivated this study. Broadly, the objectives for
the higher education institutions, the competitors
the study are:
as viewed by the owners of the educational
institutions may not be seen equally by the parents  To study the influence of Higher Education
or the students. The aim, study ambitions and branding on the choice of students while
involvement of the students may vary from taking admission.
different sections of the society and this makes
higher education branding much difficult.  To identify popular information sources
(Belanger, Mount, & Wilson, 2002). Universities used by the students to gather information
need to focus on their image, consumer behavior about Higher Education institutions.
and technology to attract different interest groups  To identify the factors responsible for
and should develop a clear picture of its brand market recognition of HEI.
(Zulkifli, 2013).
 To suggest effective strategies for Higher
Moreover the branding of higher education has Education branding.
not been the centre line and focus of various
studies and scholarly articles and is not treated as 4. Research Methodology:
commodity brand and also in case of higher The study attempted to study the influence of
education the differentiation is more which reduces Higher Education branding on students choice.
the scope of branding (Gray, 2003). It has been The researcher followed descriptive and
argued that despite of growing need of higher exploratory research design. The research is
education branding, the research in this sector is based on primary data which is collected through
still at pioneering stage (Brown & Oplatka, 2007). structured questionnaires. Stratified random
3. Research Objective: sampling is used for data collection. The data has
been collected from the students of different
The researcher has observed that the literature colleges in Bangalore city.
available on Higher Education Branding
predominantly focuses on the marketing The total of 150 questionnaires has been
communication of higher education (Klassen, distributed, out of which 135 were filled and
2002) (Mortimer, 1997), strategic market returned, constituting a response rate of 90
segmentation (Balwin & James, 2000) (Rindfleish, percent. The respondents include 58 percent
males and 42 percent female candidates. Further
the data has been analyzed using SPSS 20. is important as it helps in building a strong
Correlations and descriptive statistics were used association and connects with its stakeholders.
by researcher to further summarize the data. Market recognition of HEI further helps the
students in making their decision while selection of
5. Discussions and Findings:
HEI. Keeping this in mind, a number of factors
Reliability analysis have been identified in this study which the
students find significant for the market recognition
Cronbach's alpha coeffiecient normally ranges of any Higher Education Institutions. Out of these
between 0 and 1. The internal consistency of the factors, students find placements as the most
data items is said to be high if the value of prominent factor for market recognition of HEI
coefficient is close to 1. (Erisher, 2014). The value (82%) followed by quality of education imparted
of Cronbach's alpha coefficient for the present by HEI (64%) and faculty (62%). The
study is calculated to be 0.83 for 29 questionnaire advertisement and promotion activities conducted
items which shows high internal consistency of by the HEIs are also significant for their market
items. recognition from student's perspective (60%).
Table 1 Whereas, the students marked learning
infrastructure and variety of courses offered as
Sources of information gathering least important sources for market recognition of
Information source and the quality of information any HEI (22% and 13% respectively).
offered by HEI plays an important role in the Table 3
decision making criteria of the students. On the
basis of this information students make the Influence of HEI branding on student's
selection choice of any Higher Education choice:
Institution. A number of sources have been
H1: Higher Education Branding has a positive
identified in this study, which are used by the
influence over student's choice of selecting a
students for gathering information about the Higher
university.
Education Institutions. Among the different
information sources, students find website (78%) The above hypothesis is tested by applying the
of the HEIs to be the most valuable source of regression statistical tool on dependent and
information gathering, followed by friends and independent variables. The dependent variable
relatives (68%), social media (36%). Whereas, considered here is the student's choice while
direct enquiry (28%), newspaper advertisements different independent variables are marketing and
(22%), brochures (16%), Television/Radio (5%) promotion, signboards, appealing website, web
and billboards/hoardings (5%) are found to be communities, slogans, extracurricular activities and
comparatively less important information sources. industrial tours respectively.
Table 2 On analyzing the effect of various factors on
student's choice, the values of R (.443, .405, .661,
Important factors for market recognition of HEI
.514, .557, .569, and .372) indicates positive
Market recognition of Higher Education Institution correlation of these factors on student's choice.
Among these factors, the influence of attractive the student's decision making while taking
and appealing website is found to be maximum on admission with special reference to the colleges of
student's choice of admission, whereas, industrial Bangalore city. Although, there is substantial
tours have least influence on student's choice. literature available on the branding of Higher
Further, the value of beta shows notable Education institution, but comparatively there are
relationship between dependent and independent fewer studies which measure the influence of HEI
variable. branding on student's choice. From the literature
reviewed for this study, it is evident that the
A notable change is visible in R2 with F-values at
intense and growing level of competition in the
five percent significance level, hence the result
higher education market, need for quality faculty
supports the hypothesis 'Higher Education
and students, lack of financial backup etc
Branding has a positive influence over student's
provides a substantial ground to carry out
choice of selecting a University'.
branding of Higher Education Institutions. The
Table 4 findings of this research denote that the branding
of higher education has a significant influence on
Regression equation: selection of HEI by its stakeholders, mainly the
Student's choice = ? students who are the customers.
+?1X1+?2X2+?3X3+?4X4+?5X5+?6X6+?7X7 Brand value creation and management is one of
Student's choice = .328 +.443X1 + .405X2 + the most important issues in the higher education
.661X3 + .514X4 + .551X5 + .569X6 + .372X7 market facing intense competition (Erisher, 2014).
The higher education marketers should
Where ? is constant and ?1, ?2, ?3, ?4, ?5, ?6, ?7 understand the importance of branding and
are the coefficient of regression for different should design an effective strategy for higher
independent factors. education branding. Based on the study, the
researcher suggests following strategies to HEIs
X1: Marketing and promotion
for effective branding:
X2: Sign boards
 HEIs should focus on their brand building
X2: Appealing website through advertisement and promotion
activities.
X4: Web communities
 There should also be focus on the
X5: Slogans
placements and quality education which will
X6: Extracurricular activities further support the branding function to
attract students.
X7: Industrial tours
 Websites, considered as an important
6. Conclusions and recommendations:
source of information, should be appealing
In this paper, the researcher presented the result and attractive.
of the influence of Higher Education Branding on
 Web communities (including social media
presence) should be developed to maintain Brown, H. J., & Oplatka, I. (2007). Universities in
healthy communication with its tech savvy a competitive global marketplace: A systematic
stakeholders. review of literature on higher education marketing.
International Journal of Public Sector Management
7. Implications for Future Research:
, 316-338.
As discussed earlier, branding of Higher Education
Brown, H., & Oplatka. (2007). The incorporation
Institution constitute a less researched field. The
of market orientation in the school culture: An
research that exists focuses on diverse areas of
essential aspect of school marketing. International
branding and few studies are done on the influence
Journal of Educational Management , 292-305.
of HEI branding on student's decision making. As
this study is limited to a particular city, further the Chapleo, C. (2007). Barriers to brand building in
study can be carried across various countries and UK universities? International Journal of Nonprofit
continents. Further study is required for and Voluntary Sector Marketing , 23-32.
developing effective strategies and models for
Chapleo, C. (2010). Branding a university: adding
higher education branding.
real value or smoke and mirrors? In T. Watkinson,
8. References: The marketisation of higher education and student
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Abbas, S. A. (2014). brand management of higher
Portsmouth Business School.
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Balwin, G., & James, R. (2000). The market in
of higher education. International Journal of
Australian higher education and the concept of
Education Advancement , 152-175.
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Education Policy and Management , 139-148. Erisher, W. (2014). The impact of
BrandReputaion Management within education
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problem or solution. Studies in Higher Education ,
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(2002). Excellent public relations and effective
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28.
Lawrence Erl baum.
Birnbaum, R. (1983). Universities sell their brand.
Hankinson, G. (2001). Location branding: Astudy
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of the branding practices of 12 english cities.
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Kantanen, H. (2007). community relationships Roper, S., & Davies, G. (2007). The corporate
and practice of public relations in higher brand: Dealing with multiple stakeholders. Journal
education. tertiary education and management , of Marketing Mnanagement , 75-90.
47-59.
Sharma, V. (2007). Indian Higher Education-
Klassen, L. (2002). Relationship marketing on the Commodification and Foreign Direct Investment.
internet:The case of top and lower ranked The Marxist .
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Waeraas, A., & Solbakk, M. (2009). Defining
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competitive advantage for educational institutions: 462.
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Educational Management , 287-300.
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Reducing strategic risk in higher education
Tables :
management. Journal of Higher Edacation Policy
Table 1. Reliability Statistics
Cronbach's Alpha N of Items
.837 29
Table 2.Sources of Information

Information source Frequency (N=135) Percentage
Website 105 78%
Friend and Relatives 92 68%
Social Media 48 36%
Direct Enquiry 38 28%
Newspaper advertisements 30 22%
Brochures 21 16%
Television/ Radio 6 5%
Billboards/ Hoardings 6 5%
Table 3.Important factors for market recognition of HEI

Factors Frequency (N=135) Percentage
Placements 110 82%
Quality education 86 64%
Faculty 84 62%
Advertisement & promotion 58 60%
Learning infrastructure 30 22%
Variety of courses offered 18 13%
Table 4: Regression analysis: Impact analysis of HEI branding on student’s choice
Std.
Adjusted F value
Model R R2 Error of Sig. level
R2 ANOVA
Estimate
1 .443 .196 .190 1.217 32.49 0.000 .443
2 .405 .164 .158 1.241 26.144 0.000 .405
3 .661 .437 .433 1.018 103.422 0.000 .661
4 .514 .264 .259 1.165 47.817 0.000 .514
5 .557 .303 .298 1.133 57.898 0.000 .551
6 .569 .323 .318 1.117 63.598 0.000 .569
7 .372 .138 .132 1.260 21.348 0.000 .372

RESEARCH
Achieving Women Empowerment Through Microfinance: The

Road To Developed Economy
Dr. Shailja Dixit* & Sana Moid*
ABSTRACT
Micro finance programmes are currently being promoted as a key strategy for addressing both poverty
alleviation and women's empowerment simultaneously. Before 1990s, credit schemes for women were
almost negligible. Microfinance is a type of banking service that is provided to unemployed or low-
income individuals or groups who would otherwise have no other means of gaining financial services.
. Micro finance and SHGs are effective in reducing poverty, empowering women and creating awareness
which finally results in sustainable development of the nation.It also contributes to women's empowerment,
including higher levels of mobility, political participation and decision-making. In this paper it is
demonstrated that although microfinance does not address all the barriers to women's empowerment,
microfinance programs, when properly designed, can make an important contribution to women's
empowerment. The objective of the study is to discuss and understand the dimensions of women
empowerment and the role of microfinance programmes in empowering women.
KEY WORDS: Women Empowerment, Economic Empowerment, Microfinance, Economic Development
Introduction created by women from similar socio economic

background that strengthen the solidarity among
Microfinance originated in Bangladesh with the
these women.
institution of Grameen Bank in 1983. The basic
principles of microfinance that distinguish it from In several countries across the world, micro
earlier modes of credit delivery are small amounts finance originated from the activity of Non
of loan, lack of physical collateral but emphasis on Government Organisations that were aided largely
social collateral or peer monitoring and focus on or partly by foreign donors for their lending
women borrower. Under the model of operations. Against this background, the Indian
microfinance promoted by the Grameen Bank, experiment with micro finance was different in
women borrowers are organized into Self Help mainly two respects. First, India involved its public
Groups, which would be entitled to borrow from banks network to provide microfinance. The
lending institutions either for their individual or commercial banking network, whose development
group requirements. Such groups are normally after nationalization in terms of geographical
*Dr. Shailja Dixit is Associate Professor, Amity Business School, Amity University, Lucknow Campus
*Sana Moid is Assistant Professor, Amity Business School, Amity University, Lucknow Campus
Achieving Women Empowerement Through Microfinance: The Road To Developed Economy
spread and functional reach is often deemed Observations and experience shows that women
unparalled in the world, was roped in for are a small credit risk, repaying their loans and
microfinance. Secondly, thrift first and not credit tend more often to benefit the whole family. In
first was considered to be the basis for micro another aspect, it is also viewed as a method
finance in India. Microfinance is the provision of giving the women more status in a socio
financial services to low income clients including economic way and changing the current
consumers and the self employed that traditionally conservative relationship between gender and
lack access to banking and related services. class when women are able to provide income to
Ultimately, the goal of microfinance is to give low the household. The empowerment potential of
income people as opportunity to become self micro financing has been articulated very
sufficient by providing a means of saving money,
forcefully in recent years, primarily because the
borrowing money and insurance. The main aim of
key actors are women. Driven by the motivation
microfinance is to empower women. Women
to involve women in the development process in
make up a large proportion of microfinance
beneficiaries. Traditionally, women (especially order to achieve sustainable growth and
those in underdeveloped countries) have been development - recognizing that women are the
unable to readily participate in economic activity. poorest of the world's poor population and that
Microfinance provides women with the financial they spend their earnings more on family welfare -
backing they need to start business ventures and has led governments, development practitioners
actively participate in the economy. It gives them and donor agencies to focus on microfinance as a
confidence, improve their status and makes them strategy capable of reaching and empowering
more active in decision making thus encouraging women.
gender equality.
Table 1: Status of Microfinance in India
Source: Mahajan, Vijay. 2013 ' Call for an inclusive Banking Architecture for India by 2019. Fifty years after Bank
nationalization', Unpublished Paper
Objectives is a process of change by which individuals or

groups with little or nopower gain the ability to
 To understand and discuss the dimensions make choices that affect their lives. The structures
of women empowerment. of power(i.e. who has it, what its sources are,
 To discuss various schemes launched by and how it is exercised) directly affect the
Government of India under microfinance for choicesthat women are able to make in their lives
women empowerment. (Mayoux 2001, 18). In the feminist paradigm,
empowerment goes beyond economic betterment
 To conceptualize a model for achieving
and well-being to strategicgender interests (Bali-
women empowerment through financial
Swain 2006). Empowerment can exist at an
inclusion for economic development of the
individual level,where it is about having an agency,
nation.
increased autonomy, choice, self-confidence
 To offer suggestions and policies for andself-esteem. It can also exist at a collective
recommendation. level that would include collectivemobilization of
Literature Review women, and when possible men, for the purpose
of questioning andchanging the subordination
What do we mean when we talk about Women connected with gender. Personal and
Empowerment? collectiveempowerment are intrinsically linked
Sen (1993) said, empowerment is reflected in a because without the latter, the former
person's capability set. The 'capability'of a person becomescircumscribed (Sen 1990).
depends on a variety of factors, including personal Broadly empowerment is the expansion of
characteristics and social arrangements. freedom of choice and action, as articulated in the
Empowerment is the capacity to fulfil this World Bank's Sourcebook on Empowerment and
capability and not just the choice to do so. Poverty Reduction (Narayan forthcoming 2002),
According to him, the focus should be on certain applies to women as well as other disadvantaged
universally valued functioning, which relate to the or socially excluded groups, it is important to
basic fundamentals of survival and well-being acknowledge that women's empowerment
regardless of context. These include proper encompasses some unique additional elements.
nourishment, good health and shelter. If there are First, women are not just one group amongst
systematic gender differences in these very basic several disempowered subsets of society (the
functioning achievements, they can be taken as poor, ethnic minorities, etc.); they are a cross-
evidence of inequalities in the underlying cutting category of individuals that overlaps with
capabilities, rather than as differences in all these other groups. Second, the household and
preferences. interfamilial relations are a central locus of
Empowerment is also related to the process of women's disempowerment in a way that is not
internal change (Mayoux 1998) and to the true for other disadvantaged groups. This means
capacity and right to make decisions (Kabeer that efforts at empowering women must be
2001). It consists of change, choiceand power. It especially cognizant of the implications of broader
policy action at the household level. Third, several that it needs to occur in multiple dimensions:
of the authors whose work we review in this paper economic, sociocultural, familial/interpersonal,
argue that women's empowerment requires legal, political andpsychological (Malhotra,
systemic transformation in not just any institutions, Schuler and Boender 2002). These dimensions
cover a broad range of factors, and thus women
but fundamentally in those supporting patriarchal
may be empowered within one of these
structures (Kabeer 2001; Bisnath and Elson 1999; subdomains.For instance, the sociocultural
Sen and Grown 1987; Batliwala 1994). dimension covers a range of empowerment
subdomains,such as marriage systems, norms
According to Kabeer (1999), empowerment is regarding women's physical mobility, non-familial
about the ability to make strategic life choices, and social support systems and networks available to
constitutes three dimensions: resources (defined women.
broadly to include not onlyaccess, but also future
claims to material, human and social resources); According to UNIFEM (2000), women's
empowerment consists of "gaining the ability to
agency (includingprocesses of decision-making generate choices and exercise bargaining power
and less-measurable manifestations of agency such … developing a sense of self-worth, a belief in
as negotiation, deception and manipulation); and one's ability to secure desired changes, and the
achievements (well-being outcomes). right to control one's life."
Another view of women's empowerment argues (Please Turn for Table 2)
QUOTES
One's desires can never be satisfied with their indulgence, like fire with clarified butter poured into
it, they flare up as one attempts to satisfy them with their indulgence.
Mahabharata
Be faithful in small things because it is in them that your strength lies.

Mother Teresa
It cannot be that the soul knows, but it is knowledge. It cannot be that the soul is happy, it is
happiness itself.
Swami Vivekananda
Spread love everywhere you go. Let no one ever come to you without leaving happier.
Mother Teresa
Peace begins with a smile.

Mother Teresa
Table 2. Commonly used dimensions of empowerment and potential operationalization in the

household, community, and broader arenas.
DIMENSION HOUSEHOLD COMMUNITY BROADER AREAS
Economic Women’s control over Women’s access to Women’s representation

income; relative employment; ownership of in high paying jobs;
contribution to family assets and land; access to women CEO’s;
support; access to and credit; involvement and/or representation of women’s
control of family representation in local economic inte rests in
resources trade associations; access macro-economic policies,
to markets state and federal budgets
Socio-Cultural Women’s freedom of Women’s visibility in and Women’s literacy and

movement; lack of access to social spaces; access to a broad range of
discrimination against access to modern educational options;
daughters; commitment to transportation; Positive media images of
educating daughters participation in extra - women, their roles and
familial groups and social contributions
networks; shift in
patriarchal norms (such as
son preference); symbolic
representation of the
female in myth and ritual
Familial/ Participation in domestic Shifts in marriage and Regional/national trends

decision-making; control kinship systems indicating in timing of marriage,
Interpersonal over sexual relations; greater value and options for divorce;
ability to make autonomy for women (e.g. political, legal, religious
childbearing decisions, later marriages, self support for (or lack of
use contraception, access selection of spouses, active opposition to) such
abortion; control over reduction in the practice of shifts; systems providing
spouse selection and dowry; acceptability of easy access to
marriage timing; freedom divorce); local campaigns contraception, safe
from domestic violence against domestic violence abortion, reproductive
health services
Legal Knowledge of legal rights; Community mobilization Laws supporting women’s

domestic support for for rights; campaigns for rights, access to resources
exercising rights rights awareness; effective and options; Advocacy for
local enforcement of legal rights an d legislation; use
rights of judicial system to
redress rights violations
Political Knowledge of political Women’s involvement or Women’s representation

system and means of mobilization in the l ocal in regional and national
access to it; domestic political bodies of government;
support for political system/campaigns; strength as a voting bloc;
support for specic representation of women’s
candidates or legislation;
Source: Malhotra el.al.(2002), Measuring Women's Empowerment as a variable in International Development
Why target Women? country. In general, women also make up the

majority of the lower paid, unorganized informal
International aid donors, governments, scholars
sector of most economies. These statistics are
and other development experts have paid much
used to justify giving priority to increasing women's
attention to microfinance as a strategy capable of
access to financial services on the grounds that
reaching women and involving them in the
women are relatively more disadvantaged than
development process. The microfinance industry
men. Most methods of measuring poverty assess
has made great strides towards identifying barriers
the level of poverty of the households as a whole,
to women's access to financial services and
it is likely that poverty experienced by women as a
developing ways to overcome those barriers.
result of discrimination against them within their
Many different rationales can be offered for
households is underreported to a great extent. In
placing a priority on increasing women's access to
addition, Baden and Milward note that " Although
microfinance services.The focus on women's
women are not always poorer than men, because
empowerment in the context of microfinance
of the weaker basis of their entitlements, they are
brings to light the significance of gender relations in
generally more vulnerable and once poor may
policy development circles more prominently
have less options in terms of the escape."By
thanever before.
providing access to financing for income generating
Gender and Development activities, microfinance institutions can significantly
reduce women's vulnerability to poverty.
Research done by UNDP, UNIFEM and the Reduction in women's vulnerability can sometimes
World Bank among others, indicates that gender also translate into empowerment if greater financial
inequalities in developing societies inhibit economic security allows the women to become more
growth and development. Microfinance has come assertive in household and community affairs.
to play a major role in many of the donors' gender
and development strategies because of its direct Women Spend More of Their Income on
relationship to both poverty alleviation and Their Families
women. Development results cannot be maximized
Women have been shown to spend more of their
and sustained without explicit attention to the
income on their households; therefore, when
different needs and interests of women and men.
women are helped to increase their incomes, the
By giving women access to working capital and
welfare of the whole family is improved. In its
training, microfinance helps mobilize women's
report on its survey findings the Special Unit on
productive capacity to alleviate poverty and
Microfinance of the UNCDF explains, " Women's
maximize economic output.
success benefits more than one person. Several
Women Are the Poorest of the Poor institutions confirmed the well documented fact
that women are more likely than men to spend
It is generally accepted that women are their profits on household and family needs.
disproportionately represented among the world's Assisting women therefore generates a multiplier
poorest people. According to the World Bank's effect that enlarges the impact of the institutions'
gender statistics database, women have a higher activities."
unemployment rate than men in virtually every
Women's Rights Perspective activities is, however, not covered in the analysis
of changes in women's economic situation. GEM
Women's equal access to financial resources is a
evaluates women's progress in political and
human rights issue. Because access to credit is an
economic empowerment. It examines the extent
important mechanism for reducing women's
to which women and men are able to actively
poverty it has been an explicit focus of a variety of
participate in economic and political life and take
human rights instruments.
part in decision making. While GDI measures
Empowering Women progress in women's acquisition and expansion of
capabilities, GEM measures the ability of women
Last, but not least, one of the often articulated
to apply these capabilities in three key areas of
rationales for supporting microfinance and
social life: participation in political process,
targeting of women by microfinance programs is
that microfinance is an effective means or entry economic participation and income generation.
point for empowering women. By putting financial GEM therefore represents a measurement of
resources in the hands of women, microfinance agency.
institutions help level the playing field and promote The Global Gender Gap Index of the World
gender equality. Economic Forum (WEF) represents another
Measuring Women Empowerment attempt to evaluate changes in women's economic
and social standing by measuring gender gaps
Attempts to capture changes in the economic with regards to some fundamental variables:
situation of women resulted in the development of
a number of composite gender related indicators,  economic participation;
including in particular the United Nations
 economic opportunity;
Development Programme (UNDP), Gender
Development Index (GDI) and Gender  political empowerment;
Empowerment Measure(GEM).
 educational attainment; and
The GDI is a derivative of another UNDP
indicator- Human Development Index( HDI). The  health and well-being.
GDI measures achievement in same basic
The GGG index focuses on outcome and not on
capabilities as the HDI, but takes note of
inequality in achievement between women and means (or input) variables. The GGG index
men. The methodology used to calculate GDI provides a snapshot of the situation in the area of
imposes a penalty for gender inequality by gender equality rather than of women's
adjusting HDI downwards. Therefore, when the empowerment. The GGG index makes a valuable
achievement levels of both women and men in a contribution in evaluation of gender equality in
country go down, or when the disparity between economic development. As with the UNDP
their achievement increases, the GDI falls. The gender related indexes, it provides information on
GDI measures women's participation in formal women's advancement in economic participation,
employment, their access to high pay jobs and the including high pay jobs in formal employment.
outcome of their formal economic activities. The However it adds a qualitative variable (" equal
important area of women's informal economic pay for equal work") calculated on the basis of
results of WEF Executive Opinion Survey. provide financial services through the groups of
Another innovation is a variable" the sex ratio at individuals, formed in either joint liability or co-
birth" included in the sub index " Health and obligation mode. The other dimensions of the
Survival", which aims specifically to capture the microfinance approach are:
phenomenon of " missing women"' an indicator of
- Savings/Thrift precedes credit
direct discrimination against women.
- Credit is linked with savings/thrift
The Social Watch Gender Equity Index (GEI)
adopts an approach similar to that of the GGG. It - Absence of subsidies
positions and classifies countries according to a
selection of indicators relevant to gender inequality -Group plays an important role in credit appraisal,
in three different dimensions: education (literacy monitoring and recovery.
rate gap, primary school enrolment rate gap, Basically groups can be of two types:
secondary school enrolment rate gap, tertiary
education enrolment rate gap); participation in the 1. Self Help Groups (SHGs) : The group in this
economy (income gap, activity rate gap) and case does financial intermediation on behalf
empowerment (per cent of women in technical of the formal institution. This is the
positions, per cent of women in management and predominant model followed in India.
government positions, per cent of women in 2. Grameen Groups: In this model, financial
parliaments, and per cent of women in ministerial
assistance is provided to the individual in a
posts). group by the formal institution on the
Microfinance and Women Empowerment strength of group's assurance. In other
words, individual loans are provided on the
The taskforce on supportive policy and Regulatory strength of joint liability/co obligation. This
Framework for Microfinance has defined microfinance model was initiated by
microfinance as "Provision of thrift, credit and Bangladesh Grameen Bank and is being
other financial services and products of very small used by some of the Micro Finance
amounts to the poor in rural, semi-urban or urban empower themselves as individuals and
areas for enabling them to raise their income levels putting this to the service of their families
and improve living standards". and communities".
The term "Micro" literally means "small." The This is primarily because empowerment is
Micro Credit Special Cell of the Reserve Bank Of understood in relation to deliberate and planned
India , the borrowable amounts upto the limit of interventions such as electoral quotas, education,
Rs.25000/- could be considered as micro credit economic empowerment initiatives, legislative
products and this amount could be gradually change and non-governmental public action. The
increased up to Rs.40000/- over a period of time experiences of empowerment and
which roughly equals to $500 - a standard for disempowerment are related not just to material
South Asia as per international perceptions. The means and interventions, but also to social
mantra "Microfinance" is banking through groups. relationships (Kabeer and Haq 2010; Sardenberg
The essential features of the approach are to 2010a), narratives (Priyadarshani and Rahim
2010), voice (Goetz and Nyamu Musembi 2008), financial resources in their hands. Economic
choice (Kabeer 2008) and negotiations (Huq independence results in higher bargaining power
2010; Johnson 2010). for women in their households and communities,
and subsequently results in higher prestige to
This critique is well reflected in the three
empower. Although it is difficult to measure the
paradigms of women's empowerment through
exact impact of access to microcredit on different
microfinance: (i) feminist empowerment paradigm;
dimensions- such as impact on decision making
(ii) financial self sustainability paradigm; and (iii)
and on self confidence- studies have shown that
poverty alleviation paradigm (Mayoux 2005,
MFIs indeed have a positive effect on each of
2006).
these different dimensions of women's
Although microfinance programmes adhere to the empowerment.
latter two paradigms, there are arguments on why
For instance, an MFI institution in the Philippines
MFIs should adopt empowerment approaches:
(Tulay sa Pag-unlad, Inc. [TSPI]) reported a
Firstly, microfinance practices do not always dramatic increase, from 33 to 51 per cent, in
produce automatic empowerment benefits for women's role as funds managers in their
women; therefore, empowerment must be households, with only 5 per cent relinquishing
strategically planned for in MFIs. Secondly, control of household funds management during that
empowerment approaches allow microfinance period (Ledesma 2002). Similarly, in Nepal,
institutions to realize their full potential in Shrestha (1998, 28) found that women
contributing to a number of critical dimensions of participating in the MFI programme were able to
women's empowerment. Finally, empowerment make small purchases of necessary items such as
approaches are often compatible with other groceries independently.
approaches to microfinance (e.g. financial
According to the field studies conducted under
sustainability), and can actually enhance the aims
IFAD gender mainstreaming review, the
of these other approaches in many cases. -
empowerment of women- regarding the
Mayoux (2006)
dimensions of their ability to make decisions and
An agenda of targeting women for loan access, their experience of self confidence and self
and detaching the empowerment aspect, will thus esteem- indicated that women were able to"
be an anti-poverty strategy that is not only decide on spending of their own income although
rationally unmusical, but also morally men often consulted, articulate their views and
incomprehensible. For this reason, the agenda for command attention and respect within the
MFIs should be to develop useful linkages household, and often within the community.
between the functions of MFIs and their Increased self confidence was especially
empowering potential. pronounced when women had been exposed to
training on women's rights and social political
The logic of microfinance's potential for issues". (Kay 2003, 71).
empowerment is similar to the economic model of
empowerment: microfinance makes women Other studies indicate that the self-help groups
economically independent by putting capital and (SHGs) mediated by microcredit have helped
women gain control over assets and subsequently However, there is little evidence-based research to
acquire self-esteem,knowledge and power support these propositions. Rather, empirical
(Zaman 2001; Simanowitz and Walker 2002). studies generally show that lending to women in
developing countries may benefit their households,
Major evidence of women's empowerment
but this has not translated into their empowerment.
through microfinance was found in its impact on
women's political empowerment and rights. In the Concern for the financial sustainability of MFIs is
Philippines, for instance, Cheston and Kuhn considered incompatible with concern for women's
(2002, 24) note that women clients of Opportunity empowerment. There is perhaps some justification
Microfinance Bank have gained leadership in this belief. However, as there are different routes
experience and confidence as leaders of their Trust to achieving women's empowerment,
Banks, and have gone on to be elected as leaders mainstreaming gender in the following areas can
within their barangays - a community-level political actually enhance the efficiency and sustainability of
unit. MFIs, while ensuring gender equality and
empowerment: (i) understanding and valuing
In Bangladesh, Hashemi, Schuler and Riley (1996)
women's activities, strategies, priorities and
found that microfinance programmes of the
challenges; (ii) making information available in
Bangladesh Rural Advancement Committee
language that is user friendly to women; (iii)
(BRAC) promoted social and political awareness
including women in design plans through
and participation in political campaigns and
participatory research programmes; (iv) integrating
protests. In Nepal, Shrestha (1998, 28) found that
gender into core group mobilization for savings
the CSD programme resulted in women's political
and credit; (v) giving women access to non-
participation: 96 women were elected to village
financial services, such as involving them in the
and district development committees. In India,
application process; (vi) recognizing women's
there is evidence of microfinance programmes
talents and giving them loans in amounts that would
leading to women's political empowerment through
help them expand a business and increase its
political mobilization. WWF has a money-lending
quality through the purchase of superior equipment
branch, and it has also successfully trained and
and materials; (vii) including women in value and
mobilized women to take civic action to support
supply chains so as to promote markets for
women's rights and against social problems
services used by women; and (viii) providing
(Cheston and Kuhn 2002).
smaller loans with quick returns, targeted at
The theoretical literature demonstrates the productive activity, and making savings and
mechanisms through which improved financial services available in locations that women
inclusion through microfinance initiatives can frequently access (Mayoux and Hartl 2009, 22-
empower women. These include women having 23).
access to financial resources on their own account
Importantly, it is not only a matter of giving women
and tools that help them make a living, increasing
loans, but of providing information packages,
their bargaining power within households, and
skills, etc. with the loan to undertake economic
reducing their vulnerability to external shocks
activities outside the household on their own often
(Napier et al 2013, Ramji 2009).
do not feel empowered by loans. In such
situations, women may actually find themselves information on the existing lives of these women.
disempowered, because husbands take full control
Microfinance Models in India
of the loans and thus strengthen their own already
strong bargaining power in the household. A The two main models that are popular in the
related issue requires attention to the categories of Indian context are the SHG Bank Linkage and
women benefiting from loans. Thus women who other model is the MFI model (based loosely
have limited skills, do not have autonomous upon Grameen Bank model). The comparative
access to resources and are dependent on features of both the models are illustrated below:
husbands are those that benefit the least. The
policy lesson here is that to ensure that loans fulfil Microfinance Schemes promoting Women
their potential in terms of empowering women, Empowerment
institutions ought to first provide skills and get A number of studies have shown that Microfinace
Table 3: Comparative Features of Microfinance Interventions

Features SHG MFI
Clients Mainly Women Mainly Women
Group Size 15-20 Clients per group Usually 5 clients per group
(Organized into centers of 4-5
groups)
Credit
Services Offered Savings and credit
Organize and manage (groups

dependent on staff)
Role of MFI Staff Guide and facilitate
Weekly
Meeting Frequency Monthly

Rs. 10-30 (per week)
Savings Amount (Approx.) Rs. 20-150 (per month)

6-9 %
Interest earned on Savings Bank rate +profit sharing on intra

group disbursement Rs. 2-5000
Rs. 5-10,000
Initial Loan Amount(Approx)
32-36% (may be higher)
24-28%
Effective Interest Rate
Sometimes loan linked to health and
life insurance
Sometimes loan linked to health and
Insurance life insurance
programs can have a positive impact on women's women's economic activity and income( Dupas
empowerment (e.g. Littlefield, Morduch and and Robinson, 2009). Mobile phone banking on
Hashemi, 2003; Mayoux, 2006), although this Kenya for example, improved personal security
does depend on how well they are conceived and and food security for households (FSA community
run. Randomized evaluations in South Africa (Kim level impact of M- Pesa,2010). Security was also
et al, 2007; Karlan and Zinman, 2009) and India one of the resons why basic bank accounts in
(Banerjee et al., 2009) have shown that South Africa were so popular,especially with
microfinance schemes can have an effect on both women (Bankable Frontier Associates, for
women's economic situations and on indicators of FinMark Trust,2009)
broader empowerment.
Rashtriya Mahila Kosh
Microfinance has definitely made a major
contribution to improve women's access to credit The Government of India established the Rashtriya
opportunities. It is estimated that eight out of every Mahila Kosh (National Credit Fund for Women),
ten microfinance clients are women(DFID,2007) in 1993, with a corpus fund of Rs. 310 million.
Apart from these, NABARD has brought out a
The schemes can be summarized as number of schemes under microfinance exclusively
mentioned below: for the benefit of women- entrepreneurs: These are
SHG Bank Linkage Programme:  Assistance to Rural Women in Nonfarm
There has been a steady progress under the SHG Development (ARWIND)
Bank Linkage programme with sizeable growth in  Support for setting up women development
total number of SHGs savings linked with banks cells (WDC).
reaching 74.62 lakh by March 2011. Out of total,
exclusive women SHGs were 60.98 lakhs and  Assistance for Marketing of Nonfarm
amongst them 12.94 lakhs were credit linked. The Products of Rural Women (MAHIMA)
total number of SHGs having loans outstanding as
 Gender Sensitization Programs
on 31st March 2011 stood at 47.87 lakhs of
which exclusive women SHGs were 39.83 lakh Many schemes that are exclusively for women
and covered 97 million. Total amount of loans provide relief in terms of collateral security and
outstanding against SHGs as on 31st March 2011 interest rates. Interest rates vary in most cases
was Rs. 31221 crores of which total loans from 0.25% to 1% on applicable conditions. For
outstanding against women SHGs was Rs. 26123 instance, under Bank of India's, Priyadarshini
crores. Yojana scheme, no collateral security is required
Schemes to facilitate holding and transfer of for loans up to Rs 5 lakh and for small-scale
cash industries (SSI) units and there is a relief of interest
rates from 0.5% to 1 %. Similarly, Oriental Bank
Another type of financial inclusion programmes of Commerce's Orient Mahila Vikas Yojana
involves the provision of schemes to enable scheme, there is upto 2% concessions and no
women to hold or transfer cash. Again, studies collateral security for loans upto Rs.10 lacs and in
have found that this provision can enhance case of SSI no collateral security required up to
Rs.25 lacs.. The banks also have micro-credit vulnerability, such as micro insurance.
units which provides doorstep services to rural Adjusting collateral requirements and
women. Similarly for SBI's Stree Shakti Package, encouraging the registration of property in
security is waived for loans up to Rs 5 lakh for women's names are other essential
industrial units. components of gendered microfinance.
Strategies for Advancing Gender Equality through  Non-financial services

Microfinance
Non financial services with conditionality's
Strategies to facilitate positive impact on women to credit access, such as carefully designed
form a basis for tailoring microfinance policies, adult literacy and business training
practices and products to better address gender programmes, can facilitate women's access
equality and promote women's empowerment to better jobs and income-generating
could be summarized as below: opportunities and are perhaps the most
effective means of promoting gender
 Internal MFI Gender Mainstreaming equality.
Crucial components of a proactive women's  External marketing for community
empowerment strategy include training on awareness
gender analysis for MFI staff members, the
utilization of female loan officers and the Marketing campaigns directed at women
provision of equal employment and can positively both mean and women's
attitudes on women's status and
management opportunities for women.
employment in the community by helping
MFIs should also incorporate
male community members to accept
empowerment indicators, such as the
economic opportunities for women, by
proportion of women clients in the loan and
building women's self confidence and by
savings portfolio, into client monitoring and
facilitating community approval of women's
assessment processes.
projects.
 Adjusting financial services to better
 Groups to strengthen women's
address women's needs
networks
Microfinance products generate different MFI women's groups should be utilized to
outcomes for men and women. MFIs promote and strengthen women's networks
should therefore tailor product and not merely as a means of lowering
specifications, such as loan amounts and programme costs. Women's groups are
repayment schedules, to diverse client useful vehicles for non financial service
needs. Individual loan products designed for delivery, such as literacy and health
women are also important for enabling programmes. Groups also encourages
enterprise growth. A diversified MFI linkages between women and other active
product offer should also include other community associations and the larger civil
financial services that help reduce society network as a whole.
Conclusion Targeting women continues to be important in the

design of products and services, both because
Microfinance has the potential to have a powerful
women by default have less access to credit and
impact on women's empowerment. Although
because they face constraints unique to their
microfinance is not always empowering for all
gender. Product design and program planning
women, most women do experience some degree
should take women's needs and assets into
of empowerment as a result. Empowerment is a
complex process of change that is experienced by account. By building an awareness of the potential
all individuals somewhat differently. impacts of their programs, MFIs can design
products, services, and service delivery.
Microfinance programs have significant potential mechanisms that mitigate negative impacts and
for contributing to women's economic, social and enhance positive ones. Even when products and
political empowerment. Access to savings and services target primarily women, women still face
credit can initiate or strengthen a series of considerable disadvantages relative to men
interlinked and mutually reinforcing 'virtuous because of more limited business networks and
spirals' of empowerment. opportunities, greater domestic burden, weaker
In some cases, access to credit may be the only self-confidence, less education, and, in many
input needed to start women on the road to cases, a restrictive legal environment. These
empowerment. But power is deeply rooted in our disadvantages can sometimes be perpetuated in
social systems and values. It permeates all aspects microfinance programs, with men dominating
of our lives from our family to our communities, mixed lending groups and women receiving smaller
from our personal dreams and aspirations to our loan amounts than men.
economic opportunities. It is unlikely that any one
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RESEARCH
An Empirical Study on Rupee Depreciation with respect to

Residents of Gandhinagar Region
Dr. Jigna Trivedi* & Dr. Bindiya Kunal Soni*
ABSTRACT
Indian currency is sharply depreciated against world currencies and especially dollar. There are many
factors responsible for it such as high demand for dollars, improved strength of US economy, increased
prices of oil, wider current account deficit, lower GDP growth rate, high demand for gold, dollar
gaining strength against another currency, withdrawal by investors, higher inflation etc. The fall in the
value of Indian currency has consequences for Indian economy and its residents. The present study
checks the awareness of households towards usage of foreign products and its effect on the current
account deficit (CAD) and rupee valuation. The spending and savings habits of the residents in
Gandhinagar region are studied. The findings of the primary study revealed that the respondents were
aware about the factors affecting the rupee devaluation. They showed their willingness to replace
foreign brands with Swadeshi in category such as toiletry, personal care and food products except
electronic and automobile.
KEY WORDS: Rupee Depreciation, Current Account Deficit, Exports, Imports, Inflation Rate
JEL Classification: E00, E5, E6.
Introduction by Smith (1776) (Afonso, 2001). Imports bring

additional competition and variety to domestic
International trade allows people to produce what
markets, benefiting consumers. Exports enlarge
they produce best and to consume the great
markets for domestic production, benefiting
variety of goods and services produced around
businesses. Trade exposes domestic firms to the
the word. Global trade can raise living standard in
best practices of foreign firms and to the demands
all countries by allowing each country to specialize
in producing those goods and services in which it of discerning customers, encouraging greater
has a competitive advantage (Mankiw, 2002). The efficiency (Schneider, 2005). The exchange rate
benefits of international trade for economic growth plays an important role in a country's trade
and development are difficult to understate. It can performance. Whether determined by exogenous
be said that the positive effects of international shocks or by policy, the relative valuations of
trade on economic growth were first pointed out currencies and their volatility often have important
*Dr. Jigna Trivedi is Associate Professor, Shri Jairambhai Patel Institute of Business Management and Computer
Applications, Gandhinagar
*Dr. Bindiya Kunal Soni is Associate Professor, Anand Institute of Management, Anand
An Empirical Study on Rupee Depreciation with respect to Residents of Gandhinagar Region
repercussions on international trade, the balance expected growth, persistent inflation, lack of
of payments and overall economic performance reforms, forex reserve trading, raising interest
(Nicita, 2013). rates and easing capital controls.
India imports a large amount of goods and Apart from these causes for depreciation in the
services. Gold is one of the majorly imported value of Indian currency, there are various studies
commodities. India's import value exceeds its which have analysed the impact of this
export value by a large amount, thereby increasing phenomenon on Indian economy. As per
the Current Account Deficit (CAD). The initially Divakaran and Gireeshkumar (2014), the impact
caused rupee devaluation also had a downward of rupee depreciation would benefit the export
impact on the exports, further in-turn aggravating oriented sectors such as IT sector, textile,
the situation (Narasimhan V.K., 2014). There are pharmaceuticals, gems and jewelers, power and
many studies highlighting the cause and impact of fertilizers. At the same time, it would make
rupee depreciation which have been reviewed in imports costlier. Travelling abroad would be
the following section. The present study makes a costlier as Indians would be spending more
distinctive effort to analyse the views of the Rupees to buy Dollars for overseas trips. At the
residents of Gandhinagar city about the currency industry level the cost of borrowing would
fluctuations and their spending as well as saving increase for the companies who have taken
practices in the current scenario. foreign loans. Further, continuous depreciation in
rupee would increase inflation of the country.
Literature Review Similar such study was conducted by Reddy et al
Indian economy has witnessed distress with rupee (2014). As per this study, the impact would be
depreciating sharply against world currencies, widening of trade deficit on account of imports
becoming costlier, slow capital inflow, expensive
especially dollar. There are many conceptual
international borrowing because of downward in
studies investigating the volatility in the exchange
credit rating and downward impact on Indian
rate of rupee highlighting various causes for this
stock market. The findings of the study by Batra
phenomenon and its impact on Indian economy.
et al (2012) and Narang (2014) also reported the
Following is the summary of various such studies
similar findings.
conducted in this area.
Mirchandani (2013) statistically analysed
Singhal (2012), Grewal (2013), Mishra (2014),
macroeconomic determinants for encage rate
Narasimhan V.K (2014), Saini and Dhameja
volatility in India. The study showed exchange
(2014), Divakaran and Gireeshkumar (2014)
rates correlated with many variables such as
analysed various macro economic factors
interest rate, inflation rate, current-account deficit,
responsible for this significant fluctuation and
foreign investment and GDP growth rate in either
depreciation in the value of the Indian rupee
direct or indirect manner. Chellasamy (2013)
against the US dollar. These factors were the
compared the rupee exchange rate against the
import-export imbalance, tapering of quantitative
word currencies during pre and post liberalisation
easing by the US federal reserve, US dollar on an period and reported that Post-liberalization period
all-time high due to global uncertainty, lower than of Indian currency exchange rate was highly
depreciated. Further, he found positive correlation 2. To empirically check the awareness of

between exchange rate and external debt a well as reasons of currency depreciation amongst
FDI and GDP. The negative correlation was respondents of Gandhinagar region.
observed between interest rate and exchange rate,
GDP and interest rate. These findings were based 3. To statistically analyse the perceptions of
on data collected from 1990-91 to 2012-13. respondents for controlling rupee
depreciation.
Nicita (2013) investigated the extent to the effect
of exchange rate on international trade and trade 4. To explore the willingness of the residents of
policy based on the econometric estimation of Gandhinagar region for using Swadeshi
fixed effects models utilizing a bilateral dataset of products and expectations from Indian
trade flows, exchange rates and trade policy for manufacturers.
about 100 countries comprising a period of 10
Research Methodology
years. The findings suggested that exchange rate
misalignments affected international trade flows in Table 1 represents the research design adopted to
a substantial manner and currency undervaluation empirically check the awareness of reasons of
was found to promote exports and restrict currency depreciation amongst respondents.
imports.
(Refer Table 1)
Kaur and Sirohi (2013) presented the effect of
rupee depreciation on common man. The study Role of Macroeconomic Factors
found that after the respondents were grappling
Following macroeconomic factors are discussed at
with inflated prices of the commodities used in day
length.
to day life and the same has resulted in the change
in their spending and savings trends. Status of Home Currency (Rs)
From the literature as described above, the area of When a country imports more than it exports, the
causes and impact of depreciation in Indian rupee value of its currency will decline. The value of the
has been extensively researched in Indian context. currency will increase when a country is a net
These studies take in to consideration secondary exporter. So, a country that exports gold or has
data available from the website of RBI. However, access to gold reserves will see an increase in the
there are negligible studies based on empirical strength of its currency when gold prices increase,
perspective. The present study tries to fill this gap since this increases the value of the country's total
by analyzing the awareness and perceptions of exports. Conversely, countries that are large
residents of Gandhinagar region for rupee
importers of gold will end up having weaker
depreciation.
currency when the price of gold rises. There is not
Research Objective always an inverse relationship between gold prices
and fiat currency. If there is high demand from
1. To critically evaluate the role of industry that requires gold for production, this will
macroeconomic factors affecting the home
cause gold prices to rise (Smith, n.d.). But this will
currency and thereby leading to rising of
say nothing about the local currency, which may
CAD.
very well be highly valued at the same time. If the
price of oil decreases then energy cost reduces. Investor's (FIIs) investment in stock market and
So home country spends less dollars buying oil increase in exports or decline in imports
and the rupee will become stronger. When the (Divakaran and Gireeshkumar, 2014).
price of dollar goes down, price of oil goes down.
Crude Oil
This will reduce the energy costs and rupee will be
stronger (Mewati, n.d.). Rupees falls either due to increase in price of oil
or increase in demand of oil or both. India
Demand and Supply of Exchange Currency
imports bulk of its oil requirements to satisfy its
If there is more demand for dollar (international domestic demand for oil. The demand for oil rises
currency) then the home currency will be weak, as as it is a major input in the economy. It is used in
more rupees can buy only few dollars. Currency critical activities such as fuelling transportation
depreciates because imports are rising. Demand and heating homes (Langager, n.d.). The demand
for dollars may be created by importers requiring for oil causes the price of the oil to increase in the
more dollars to pay for their imports, foreign international market. So when either the demand
institutional investors withdrawing their for oil or price of oil rises, requirement of dollars
investments, and taking dollars outside India, etc. shoots up as the payment for imported oil is to be
On the other hand, supply is created by exporters made in dollars. Thus, increase in demand for
bringing in more dollars from their revenues, dollar weakens the rupee. If US dollar falls, oil
NRI'S remitting more funds, FII's bringing more prices will rise for US, but oddly, it will fall for
dollars in India to spur their investments other countries, because crude oil is primarily
(Divakaran and Gireeshkumar, 2014). US traded in US dollar. A rise in oil prices is an
currency can become more valuable when the indication of bad times and gold prices rise
amount of currency units available in world market correspondingly (Kaur et al., n.d).
place is reduced or there is an increase in demand
Inflation
for that particular currency. Demand for US
stocks and US dollars are positively correlated Inflation refers to the rate at which prices of
(Lee, n.d.). goods and services rises. Higher inflation
decreases the purchasing power of rupee against
Current Account Deficit (CAD)
other currencies. This will lead to depreciation in
A current account deficit occurs when a country is rupee. Due to rising crude, the input cost will rise
importing more goods and services than it is and the cost of end product will also rise. In other
exporting. Firstly, crude and secondly, gold are the words, when the input price for industries which
highest contributor to India's import bill, which use oil and oil derivatives as raw material rises,
leads to higher quantum of CAD. The wider CAD these costs are passed on to the consumers in
creates demand for dollar which may result in terms of hike in end products price. So, when the
rupee depreciation. The deficit can be bridged prices of goods increase it leads to inflation.
either by using country's forex reserve or from Generally, the correlation between oil and inflation
capital inflows in the form of Foreign Direct is usually strong and direct, but it may not be the
Investment (FDIs) or Foreign Institutional same forever (Folger, n.d.). If inflation becomes
higher it leads to overall worsening of economic unemployment, job growth and payroll data
prospects and capital outflows and eventual impacts the gold price. If non-farm payroll is
depreciation of currency. The inflation rate is expanding, it indicates that the economy is growing
based on consumer price index(CPI). The index is and people invest in stocks of the companies. If
a measure of the average price which consumers jobless data is huge, it indicates economy is not
spend on a market-based basket of goods and the doing well and to protect against bad times
services (Divakaran and Gireeshkumar, 2014). investors invest in gold. Higher investment in gold
The lower inflation will boost households' real doesn't create output or employment, so it is
disposable income, thereby pushing higher viewed as negative for economic growth (Folger,
consumer discretionary demand. It will improve n.d.).
the corporate profit margins due to falling input
Stock Market
costs and it will improve the macro fundamentals
which in turn will increase the space for macro Stock market refers to equity investment in
policies to boost growth (Moneycontrol Bureau, companies (Divakaran and Gireeshkumar, 2014).
n.d.). If the country's economy is doing well, then stock
market of that country will rise and vice-versa. If
Gold
the future expectations of the global economy are
Gold is used for investment purpose, as reserve by bad, people run to the safety of US dollar and
central bank, for jewellery making, and gold, and sell stocks. When the price of gold rises,
manufacturing of certain electronic and medical then the value of dollar rises against the rupee, and
devices. Investors typically buy large quantities of FIIs and FDIs pull money out of the Indian stock
gold when the home country experiences high level market causing it to decline. If stock goes up then
of inflation (Smith, n.d.). The demand for gold gold goes down and vice-versa (Mewati, n.d.).
rises, during inflationary times due to its inherent
Combination of Factors and Impact
value and limited supply. The price of gold is
impacted by dollar value. People tend to invest Oil, gold and other precious metals together
and trade in dollars when the dollar is strong and grouped as commodities, stock market as equities
vice-versa. When US dollar is strong it takes few and dollar rates as forex rates. If the equities are in
dollars to buy gold and vice-versa. The price of a bull market then due to the optimistic outlook of
gold can rise, based on huge demand, irrespective the market, Foreign Institutional Investors (FIIs)
of the change in dollar's valuation. Gold is infuse huge amounts of capital in the markets. To
conventionally treated as a hedge against currency invest in local equities, one needs local currency.
devaluation and inflation. At the times when the Now, the FIIs dump dollars for local currency. As
returns on bonds, equities and real estate fall, the a result, the demand for the local currency
interest in gold investing increases. Gold prices increases and soon its value increases in the Forex
may rise when it costs more to get less gold, i.e. markets. When the prices of commodities
the excavation cost is high. Oil is used in fluctuate, so does their demand and supply. In
excavating and refining gold, so if the oil price is case of an importing economy, if the quantity or
higher, then the gold price will also rise. Data value of goods imported increases, the value of the
released by US Bureau of Labour Statistics on local currency decreases. Usually the transaction
of commodities like gold, oil, precious metals etc Gender, Age, Occupation and Family
is done in US Dollars. As the local currency is Composition
sold in the international markets to gain dollars,
64% male and 36% female participated in the
there is an excess of local currency in circulation.
survey. The average age of respondent was 39
Thus due to an excess of supply and lowered
years with a median age of 37 years and a SD of
demand, the local currency is devalued. When the
12.53 years. Maximum respondent were of 50
dollar strengthens money has gone out of India
years. Senior most and junior most respondents
and thus stock market would already be quite low
were of 75 years and 20 years respectively.
when dollar strengthens. When gold and oil is
Different gender and age group people were
going high, the stock market would go low (Theja
targeted in the survey to test their awareness
et al, n.d.).
towards the reasons of home currency
Reserve Bank of India's Measures depreciation. Varied occupational diversity was
found amongst the respondents' occupation viz.,
Cash Reserve Ratio (CRR) is the ratio of deposits
service (44%), business (24%), professional
banks must maintain with the RBI. Higher CRR
(11%) and non-working (21%). Non-working
lowers monetary liquidity in the economy.
class mainly consisted of women or retired
Repurchase rate (Repo rate) is the interest
people. Gandhinagar is a service class city, so
charged by the RBI to banks when they approach
majority respondents by default were found to be
it for short term loans. When repo rate is raised,
occupied in services. The modal family
commercial banks are compelled to pay higher
composition consisted of four people. Maximum
interest to RBI which in turn prompts them to raise
number of people in a family was found to be
the interest rates (amount of interest paid by a
nine. Minimum one person in a family represented
borrower to a lender) on loans they offer to
that he stayed solely. Qualitatively it was known
customers. Thus to curtail rising inflation, RBI
that in a family consisting of teenager children,
raises repo rate and CRR, which lowers liquidity
depicted strong fascination towards foreign
in the market and strengthens the home currency
brands. Thus, it may be inferred that young
against dollar. Inflation primarily rises due to rising
generation is brand crazy.
crude. When interest rates are lowered, more
people are able to borrow more money. The result Monthly Family Income and Annual Savings
is that consumers have more money to spend,
Average monthly family income was found to be
causing the economy to grow and inflation to
Rs.56,542 with a huge SD of Rs.96,230. A
increase (Financial Literacy Agenda for Mass
higher SD reflected different standard of living.
Empowerment, n.d.).
Maximum families had income of Rs.50,000.
(Refer Table 2) Minimum and maximum monthly household
earnings were recorded at Rs.15,000 and
Findings and Discussion on Empirical Analysis
Rs.1,00,000 respectively. Median and modal
The questionnaire was administered on the annual savings was Rs.1,00,000. Mean annual
residents of Gandhinagar region. Demographic savings was Rs.1,39,750 with a SD of
details are discussed below. Rs.1,04,571. Maximum and minimum annual
savings respectively stood at Rs.6,00,000 and Ready to Eat and Cook and Beverages
Zero. Lower income and zero savings would put
Indian brands were largely used in ready to eat
families in alarming situation, due to downfall of
and cook segment. Primarily respondents believed
currency and rising inflation.
that yummy Indian food could be prepared by
Analysis of Key Variables using only Indian ingredients. According to them,
such localized taste was served by ready to cook
The literary work reveals that major cause for
and eat segment by Indian brands only. Secondly,
depreciation of home currency is the import of
the easy availability of Indian brands in this
gold and oil. Apart from this, huge amount of our
segment made the respondent highly connoisseur.
Indian rupees moves out from our economy when
Regarding beverages, except tea, for coffee and
multinationals remit their revenues and profits to
soft drinks respondents preferred that taste of
their countries. Indian households have penchant
foreign brands.
towards the usage of imported fast moving
consumer goods, imported electronic gadgets, Electronic Gadgets, Automobiles and
imported automobiles and imported apparels and Branded Apparels and Accessories
accessories, which leads to outflow of Indian
For electronic gadgets, it was inferred that foreign
rupees being converted into foreign dollars. Table
brands were market penetrators and so they were
3 highlights the percentage statistics on usage of
excessively used by the respondents. Indian
various brands.
brands neither created niche nor were highly
(Refer Table 3) renowned. Thus, Indian brands failed to be at the
top of the mind of customers. With respect to two-
Toiletry and Personal Care Products
wheeler and four-wheeler segment in automobile,
In toiletry and personal care products, the foreign brands dominated the Indian households.
maximum products used by respondents are of The reason could be attributed to liberalization
foreign brands. The product falls in FMCG policy of the government, which allowed overseas
category, which indicates that it is frequently auto companies to have a footprint in India. In the
purchased and consumed. Repeat purchase of qualitative discussion it was also learnt that
MNC brands leads to outflow of home currency. respondents preferred foreign company's
Reasons for using foreign products may be non- automobiles over Indian's due to umpteen reasons
awareness and/or non-availability of Indian brands like quality, attractive features, efficient mechanism
as substitute of foreign brands. In qualitative etc. Commonly, qualitatively it was observed that
discussion, it was known that respondents were people who were status conscious, wished to
actually ignorant about the real place of origin of portray themselves as upper middle elite class and
companies. Respondents were carried away by who believed in spending lavishly used foreign
the so-called Indian names of the company. All branded formal wear and footwear. A noteworthy
products of Hindustan Unilever Limited were aspect was highlighted that respondents
deciphered by respondents as products of Indian considered Indian brand watches of Tata
company, they were not aware about the reality of (Fastrack and Titan) to be to more innovative and
its cross border genesis. stylish, due which they had strong fascination for it.
Foreign brands of purses, wallets and accessories 90% respondents saved from their income.
were not highly admired by respondents. Savings was an integral part of majority families
but a depreciating rupee and rising inflation
Household's Monthly Expenses
depressed their savings and investments portfolio.
Table 4 showed descriptive statistics on Savings was carried out to meet the future
household's monthly budget. contingencies. 10% respondents did not follow
any savings habit. Qualitatively, it was known that
(Refer Table 4) their income was either not adequate to carry out
Modal expense in a family's monthly basket items savings or the respondents did not fall in the tax
made up of grocery, milk, fruits, vegetables and bracket so they were carefree in terms of savings.
petrol was Rs.10,000. It was highlighted by Savings and then claiming deduction under eligible
respondents that to exhibit a decent standard of section did not lure the families who tried hard to
living the bread winner needs to earn a minimum meet their two ends. Analysis on favourable
amount of Rs.10,000 for family's better livelihood. response to a multiple choice question on avenues
It was also pointed out that the modal monthly of savings indicated that respondents invested
budget excluded the major share of hefty their savings in bank's fixed deposits-FDs (35%),
accommodation expense. The rising inflation trend physical gold (29%), stock market (15%), other
and sky-rocketing monthly sustaining budget, modes like provident fund, real estate,
signalled an alarming situation of sustainability for government bonds, insurance, post etc (11%) and
people at the bottom of the pyramid. Exchange Trade Gold Funds-ETFs (10%).
Fondness for FDs was highest as it is looked
Retrospective versus Prospective Budget upon a source of safest investment avenues. It is
still conventional that Indian families hold fancy
A question was asked to the respondents to
for investment in gold. Lack of awareness keeps
compare their present budget in retrospection with
the respondents away from investment in gold
their past budget provisions. 97% respondents
admitted the fact that their current budget had ETFs.
increased when compared with the past Awareness and Opinion on Rupee
provisioning. Only three percent denied any Depreciation
escalation in their current budget, indicating that
their life-style seemed to be parsimonious to 79% were aware about the phenomenon of rupee
incorporate any hike in expense. Increase in depreciation. 21% were ignorant on the aspect of
current budget was mainly due to increasing rupee depreciation. With respect to the response
inflation and so the expenses could not be met by of the five point likert scale question on
maintaining the same budget. Households were left expressing opinion with respect to the reasons
with only two alternatives i.e. either cut corners to responsible for rupee depreciation, following
settle in the established budget or enhance income outcomes were tabulated.
generating avenues to live better life. Rising (Refer Table 5)
inflation also had negative impact on savings.
From table 5, it may be seen that mean value for
Saving Habits and Avenues of Savings all the statements was 4. It indicates that
respondents agreed to the reasons responsible for Respondents have certain set of expectations from
rupee depreciation. A SD of less than 1 indicates a Indian manufacturers like product should be of
strong consensus in the response of the good quality (27%), it should be readily available
respondents. A strong consequences of rupee (23%), affordable (23%) and product should be
depreciation need to be educated amongst the improvised from time to time (27%). Qualitatively
masses so that they may avoid using foreign it was learnt that people go for foreign products
brands, thereby leading to cease in the fall of home because they fail to trust the Indian products.
currency. Thus, if Indian brands rolls out with the qualitative
products and affordable prices then many people
Measures to Curb Rupee Depreciation might switch over to the Indian products.
On a five point likert scale various measures were Further, a hypothesis was framed to test the usage
cited to curb the problem of rupee depreciation. of 'swadeshi' products. H01: The observed
The measures are discussed in the table 6. proportion does not significantly differ from the
(Refer Table 6) hypothesized value. H11: The observed proportion
significantly differs from the hypothesized value.
It may be inferred from table 6, that mean score of
3 and 4 indicates neutral and agreement status, (Refer Table 7)
respectively to the statement. A strong consensus From table 7, it may be seen that for almost all
was seen in response to measures to save fuel like items at 95% confidence level, the p-value was
pooling of vehicle and walking short distances. A less than 0.05. Hence, H01 was rejected. Only for
SD greater than 1 depicted that for other set of two products i.e. electronic gadgets and
statements, respondents significantly differed from automobiles the p-value was more than 0.05, so
the average opinion. we failed to reject H02. Respondents readily
agreed to replace toiletry, personal care, ready to
Usage of 'Swadeshi' Products and
eat and cook, beverages and apparels and
Expectations from Indian Manufacturers
accessories in large quantity when compared to
A multiple choice question was asked in order to anticipated numbers. This would be positive for
identify the areas for usage of 'swadeshi' products. SSIs to produce the products and sell them in the
Positive responses indicated that respondents domestic market, which would be replicated as
were ready to use home-made -'swadeshi' substitute for foreign products. Respondents were
products in segments like toiletry (15%), personal bit reluctant to replace electronic gadgets and
care (15%), ready to eat and cook (17%), automobiles. Indian SSIs would be required to
beverages (14%), electronic gadgets (11%), prove themselves by winning over the expectations
automobiles (13%) and apparels and accessories of the customers and providing them quality
(15%). If the foreign products are replaced by electronic gadgets and automobiles at affordable
'swadeshi products' then the home currency would prices.
not go out of the country. FMCG products involve Advantages of Being 'Swadeshi'
repetitive purchase of goods. Indian products with
standard quality can act as substitute for foreign Respondents' opinions were tested on the five
products and save the downfall in home currency. point likert scale to know their perceptions
towards the advantages of being 'Swadeshi'. The awareness of reasons which causes depreciation
responses are tabulated in table 8. of rupee and corresponding purchase of foreign
products. H03: There is no association between
(Refer Table 8)
awareness of reasons which causes depreciation
From table 8, it may be seen that respondents and purchase of various foreign products. H13:
agreed to advantages of being 'Swadeshi'. Using There is an association between awareness of
Indian products will lead to self-sufficiency; reasons which causes depreciation and purchase
generate employment and offers survival to SSI. of various foreign products.
Switching to Indian products will boost SSI
(Refer Table 10)
sector, spin jobs and curb the falling rupee, which
in turn would raise country's GDP and lower From table 10, it may be seen that Chi-Square
CAD. tabulated was 43.77. As the Chi-Square
calculated was less than Chi-Square tabulated,
Further, Independent sample T test was
H03 was not rejected. It clearly depicted that
performed to check, if males and females differed
people purchased the products based on their
in their opinion of being Swadeshi and helping
requirement, cost, availability and product
country. H02: Males and females did not
features. They did not indulge the nitty-gritty of
significantly differ in their opinion of being
scrutinizing the nature of company before the
Swadeshi and helping country. H12: Males and
purchase of product. Pre-purchase analysis of
females significantly differed in their opinion of
companies was thoroughly missing. Lack of
being Swadeshi and helping country.
awareness, lead to failure of differentiating
(Refer Table 9) between the Indian and foreign brands. In the
course of research, it was known that
From table 9, it may be observed that, at 5% level respondents buying behaviour for products were
of significance, the p-vale of all statement is largely influenced by heavy advertisements
greater than 0.05, so H02 is not rejected, which bombarded by MNCs in order to have presence
means males and females do not significantly differ in the Indian households across rural and urban
in their opinion of being 'swadeshi' and helping the segment.
country. Further, the mean values for all these
statements were found to be greater than 3 Suggestions
(between 4 to 5). It again indicates their
People should be educated to link the impact of
agreement towards being swadeshi. It would turn
purchase of foreign products over depreciation of
out to a positive step for 'swadeshi' movement.
rupee. Here, print, audio and visual media can
Usually it is found that the head of the family is
play its role by explaining the linkages of
actively involved in purchase decisions of products
macroeconomic factors impacting the Indian
ranging from salt to summit. It may be inferred that
currency and also highlight the names of foreign
male or female could be easily convinced to adopt
companies in various sectors. The explanation of
the domestic country made products.
the same could be done from layman's'
In addition to this, a two way Chi-Square test was perspective, so that such tutorials are easily
administered to check the association between grasped by the people and they can use their
discretion at the time of purchase of FMCG, result of rupee depreciations a vicious circle
consumer products etc. Higher level of import begins. The inflation increases, which makes the
duty should be fixed to discourage the usage of prices of commodities and services costly. Costly
imported products. Indian entrepreneurs should raw material inputs in industries further sky-
justify their quality and price of products. Children rockets the prices of end products. The disposable
at the early age should be imbibed with the feeling income of people gets diminished due to inflation.
of being 'swadeshi' and strictly using 'swadeshi' The gain in savings also wipe out with higher level
products. Investments in Gold ETFs should be of inflation. Investments in debt and equity
rewarded by the Income-tax department under instruments become less attractive. Lower returns
eligible deduction section. Banks can play a role in debt instruments and fluctuating returns in
to educate people on Gold ETFs by organizing equities do not guarantee a safe and secure return
seminars. Usage of battery operated vehicles to investors. So, investors in order to fight back
should be encouraged. Considering the moral inflation invests in gold (as they consider that gold
responsibility citizens should conserve non- is hedging instrument), which ultimately further
renewable sources of energy. 'Save Petrol and results in downfall of rupee and the cycle repeats
No Pollution Day' should be frequently itself.
celebrated. Once in every month private and To avoid this situation, using 'swadeshi' products
government officials should set a rule to use public will save the Indian rupee going out of our country.
transport in order to save and import less fuel, A large part of budget is expended by households
thereby curbing downfall in rupee and curtailing in purchasing FMCG and consumer durables, so
inflation. Heavy incentives should be provided to domestic made products should be substituted for
SSIs for the purpose of exports. foreign products. Oil is an essential commodity, so
Conclusion it should be used judiciously. Walking short
distances, pooling of vehicles etc should be
It is comprehended that there is downfall in rupee adopted to import and save oil. Instead of
primarily due to three reasons viz., import of purchasing physical gold, Gold ETFs should be
crude, gold and usage of foreign (imported) used as an investment avenue. Huge amount of
products. Import trade are to be settled in dollars exports for goods and services should be targeted
for which large amount of rupee is to be sold, this to strengthen the home currency. A cautious step in
acts a major cause of rupee depreciation. As a the present would lead to a sensible future.
QUOTES
All that we are is the result of what we have thought. The mind is everything.
What we think we become.
Buddha
Table 1: Research Methodology Adopted for Empirical Study

Parameters Survey of Residents of Gandhinagar
Research Design Descriptive Method
Sampling Method Non-probability Convenience sampling
Sample Size 120
Sample Size n = Z2* p* q /e2, i.e. (1.96)2 * (0.5) (0.5) / (0.09) 2
Determination
Sampling Duration November 2013 to December 2013
Sampling Area Certain sectors of Gandhinagar region
Sampling Unit Households
Sampling Element Head of the house
Research Approach Survey
Research Instrument Questionnaire- filled through personal visit
and Contact Method
Data Collection Primary and Secondary
Data Processing & Excel and SPSS 19
Management
Data Analysis Frequency distribution, cross tabulation, descriptive statistics such
as mean (X), median (M), mode (Z), standard deviation (SD),
Minimum and Maximum
Inferential Statistics Independent Sample T Test , One-way Chi-Square and Two-way
Chi-Square
(Source: Authors’ Compilation)
QUOTES
We have believed-and we do believe now-that freedom is indivisible, that peace is indivisible, that
economic prosperity is indivisible.
Indira Gandhi
There is none dear or hateful to Time! Time is indifferent to none. All are equally dragged by Time.
Mahabharata
Climbing to the top demands strength, whether it is to the top of Mount Everest or to the top of
your career.
Dr. A. P. J. Abdul Kalam
Table 2: Cause and Effect between Macroeconomic Factors

Cause Effect Relationship
Falling crude Stronger Rupee Indirect
Falling dollar Stronger Rupee Indirect
Higher import of gold Lowers value of home currency Indirect
Higher export of gold Increases the value of home currency Direct
Higher demand for US stocks Higher demand for dollars Direct
Rise in exports and fall in imports Decreases CAD Indirect
Fall in exports and rise in imports Increases CAD Indirect
Rise in demand or price of crude Rise in dollar demand Direct
Higher demand for dollar Weakens home currency (Rs.) Indirect
Rising crude Increases inflation Direct
Rise in inflation Depreciates home currency (Rs.) Indirect
Rise in inflation Increase demand of gold Direct
Fall in inflation Rise in disposable demand and Indirect
corporate profits
Higher demand for gold Higher price of gold Direct
Fall in returns of bond, equities and Higher price of gold Indirect
real estate
Cost of gold mining increases Higher price of gold Direct
Employment rate in US is increasing Lowers gold price Indirect
In US the jobless data is rising Higher gold price Indirect
Uncertain economic or financial Rise in gold price Indirect
prospects
Strong US Dollar Gold becomes cheap Indirect
Higher crude oil prices Higher gold prices Direct
Fall in US Dollar Rise in Crude Oil Indirect
Higher inflation Lower investment in stock Indirect
Weak global outlook Investment in gold Indirect
Rising gold Lower investment in stock Indirect
Strong dollar Vs Weak Rupee Outflow of FII and FDI Indirect
Rise in Stock Market Fall in gold Indirect
Hike in CRR and Repo Lowers inflation Indirect
Rising Crude Higher inflation Direct
Lower inflation Strengthens Rupee Indirect
Lower interest rates Higher inflation Indirect
Combination of factors
Stock market and gold generally move in opposite direction.
Oil is a determinant of world economy and stock markets. But its relation to economy of a
particular country is dependent on whether that country is a importer or exporter of oil.
Dollar price with respect to country’s local currency depends upon its CAD, fiscal deficit and
forex reserve.
(Source: Authors’ Compilation)
Table 3: Statistics on Usage of Various Brands

Segment/Products % of Foreign % of Indian Brand Not Applicable %
Brand Users Users
Toiletry
Toothpaste 77 23 -
Bathing soap 79 21 -
Washing soap 62 36 2
Detergent 68 31 1
Toilet cleaning 68 28 4
Utensils cleaning 86 6 8
Room cleaning 92 3 5
Fresheners 83 3 14
Personal Care
Shampoo 82 17 1
Hair oil 42 53 5
Cream 74 13 13
Body lotion 79 13 8
Face wash 64 28 8
Talcum powder 80 7 13
Deodorants 86 6 8
Ready to Eat and Cook
Chips 17 81 2
Biscuits 32 66 2
Noodles 92 3 5
Beverages
Tea 5 94 1
Coffee 83 3 14
Soft drink 84 10 6
Electronic Gadgets
Mobile 97 3 -
Laptop/pc 91 9 -
Tablet 38 6 56
Television 76 22 2
Refrigerator 81 15 4
Air-conditioner 51 10 39
Microwave oven 40 8 52
Washing machine 65 10 25
Automobile
Two-wheeler 74 20 6
Four-wheeler 47 32 21
Branded Apparels and Accessories
Clothes 67 18 15
Footwear 48 46 6
Watches 4 86 10
Purses 4 3 93
Wallets 0 2 98
Accessories 0 2 98
(Source: Primary Output)
Table 4: Descriptive Statistics on Household’s Monthly Budget

Descriptive Statistics (Rs.) Grocery Milk Fruits and Vegetables Petrol
Mean 4,009 1,866 2,421 2,578
Median 3,750 1,500 2,000 2,000
Mode 5,000 1,500 2,000 1,500
Std. Deviation 2,718 2,573 1,330 1,956
Maximum 20,000 28,000 6,000 9,000
Table 5: Reasons of Rupee Depreciation
Statements X SD
Purchasing MNC companies product leads to outflow of Indian Rupees. 4 0.79
Usage of Chinese products leads to closure of SSI units and outflow of home 4 0.85
currency.
Purchasing physical gold forex reserve is reduced. 4 0.86
Increase in the import of crude oil leads to decline in forex reserves. 4 0.85
Table 6: Measures to Curb Rupee Depreciation

Statements X SD
Exclusive usage of household Indian products 4 1.08
Avoid purchase of FMCG products of MNCs 4 1.03
Stop purchasing physical gold 3 1.14
Invest in gold ETFs 4 1.01
Purchase Indian companies FMCG product 4 1.04
Stop purchasing white goods of MNC companies 3 1.19
Stop purchasing Chinese products 4 1.10
To save petrol, public transport should be used at least once a day 4 1.10
At least once a week, we should engage in pooling of vehicle 4 0.99
Walk short distances to save fuel 4 0.94
Table 7: Test Statistics for One -Way Chi-Square

Chi- Asymp.
Products Square df Sig.
Toiletry 14.70 1 0.00
Personal Care 9.63 1 0.00
Ready to Eat and Cook 30.00 1 0.00
Beverages 4.03 1 0.05
Electronic Gadgets 0.30 1 0.58
Automobile 2.13 1 0.14
Apparels and Accessories 13.33 1 0.00
(Source: SPSS Output)
Table 8: Advantages of Being ‘Swadeshi’

Statements X SD
Home country’s money will remain with itself. 4 0.61
Generates employment in country. 4 0.70
Leads to self-sufficiency. 4 0.95
Reduces inflation. 4 0.90
Leads to survival of Small Scale Industries (SSIs) 4 0.89
Diminishes the gap between haves’ and have not’s. 4 0.94
Avoids downfall in value of rupee. 4 1.02
Results in overall growth and development of country. 4 0.91
Helps the country to avoid from falling in the chains of slavery. 4 0.94
Table 9: Test Statistics for Independent Sample T Test

Statements Gender Mean Sig.
Male 4.54 .405
Home countries money will remain with itself.
Female 4.40
Male 4.30 .299
Generate employment in country.
Female 4.50
Male 3.86 .747
Lead to self-sufficiency.
Female 3.95
Male 3.57 .138
Reduce inflation.
Female 3.95
Male 3.86 .075
Lead to survival of Small Scale Industries (SSIs)
Female 4.25
Male 3.54 .606
Diminish the gap between haves’ and have not’s.
Female 3.65
Male 3.70 .744
Avoid downfall in value of rupee.
Female 3.80
Male 4.08 .590
Result in overall growth and development of country.
Female 3.95
Male 3.70 .614
Help the country to avoid from falling in the chains of slavery.
Female 3.85
(Source: SPSS Output)
Table 10: Test Statistics for Two-Way Chi-Square

Product Awareness towards Rupee Total Chi Square
Depreciation Calculated
Yes No
Toothpaste 71 21 92
0.05
Bathing Soap 74 21 95
0.01
Washing Soap 61 13 74
0.07
Detergent 66 16 82
0.02
Household 71 10 81
Cleaning 0.76
Shampoo 77 21 98
0.01
Hair Oil 45 6 51
0.62
Cream 72 18 90
0.01
Body Lotion 73 22 95
0.05
Face-wash 61 15 76
0.02
Talcum powder 78 18 96
0.05
Deodorants 82 21 103
0.00
Chips 17 4 21
0.00
Biscuits 32 6 38
0.13
Noodles 89 21 110
0.05
Tea 6 0 6
0.21
Coffee 82 18 100
0.11
Soft drink 79 22 101
0.01
Mobile 92 24 116
0.00
Laptop/pc 84 25 109
0.05
Tablet 40 6 46
0.44
Television 71 21 92
0.05
Refrigerator 75 22 97
0.05
Air-Conditioner 48 13 61
0.00
Microwave Oven 39 9 48
0.03
Washing Machine 62 16 78
0.00
Two Wheeler 68 21 89
0.06
Four Wheeler 46 10 56
0.09
Branded Clothes 64 16 80
0.02
Branded Footwear 44 14 58
0.09
Branded Watches 4 1 5
0.00
Branded Purse 5 0 5
0.25
Total 95 25 120 3.32
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Stock-Markets-and-Dollar-prices 15th January,
Reddy, P., Basha A., Rao, R.V.S.S., Reddy, N., 2015
CASE STUDY
Alliance, Merger or Expansion: A strategic decision for

sustainability for an airline company in India
Dr. Mahesh Gadekar* & Shraddha Purandare*
ABSTRACT
The case study describes the current scenario of Aviation Sector in India, from a competitive environment,
showing various trends in the sector. It discusses the complexities, challenges, drivers of the sector. The
emergence of new breed of airlines i.e. LCC- Low Cost Carriers prominently influenced the overall
financial performance of the sector.
These factors drew the attention of the one of the top performing airlines, GO AIR to take a strategic
call about their policies and forced them to rethink their strategy for sustainability.
KEY WORDS: Aviation Sector, low cost carriers, strategy, sustainability.
Background of Aviation Industry: The open sky policy was announced by the
In India after independence nine Air Transport Government of India in 1990. The open sky
Companies were operational. The then policy permitted air taxi- operators to operate
operational airlines were Tata Airlines, Indian flights from any airport, both on a charter and on
National Airways, Air Service of India, Deccan a non charter basis and to decide their own flight
Airways, Ambica Airways, Bharat Airways and schedules, cargo and passenger fares. That
Mistry Airways. In March 1953, the Indian created an opportunity for private participants to
Parliament passed the Air Corporations Act, 1953 enter the aviation industry. Private players like
and Indian Airlines and Air India International Sahara and Jet airways entered the Indian sky in
were set up after nationalisation of the entire airline 1991 and 1993. Also, other players like Modiluft
industry. Eight formerly independent domestic Airlines, Damania Airways, NEPC Airlines and
airlines: Deccan Airways, Airways India, Bharat East West Airlines commenced domestic
Airways, Himalyan Aviation, Kalinga AirLines,
operations in subsequent period.
Indian National Airways, Air India, Air Services of
India were merged ( APAO India).
*Dr. Mahesh Gadekar is Associate Professor in Marketing and Economics at Vishwakarma Institute of Management,
Pune, India.
*Shraddha Purandare Assistant Professor, Vishwakarma Institute of Management, Pune.
She is a PhD scholar at D.Y. Patil University.
Alliance, Merger or Expansion: A strategic decision for sustainability for an airline company in India
Indian Civil Aviation Industry: The domestic passengers carried by Air India
were 12.42 million while the private carriers 54.95
The Indian civil aviation industry is 9th largest civil
million passengers. The market share of Air India
aviation market with 169 Million passengers in
remained at 18.4 per cent while for the private
2014, connecting over 40 countries. According to
airlines it was 81.6 per cent. The airlines are
Government of India data on civil aviation sector.2
projected to record a collective operating profit of
It is predicted that there would be 60 Million Rs 8,100 crore (US$ 1.29 billion) in fiscal year
international passengers by 2017, 85 international 2016, according to Crisil Ltd.
airlines connecting over 40 countries, 800 aircrafts
Complexities in the Industry:
by 2020 and India would be the 3rd largest
aviation market by 2020. According to France-based aircraft manufacturer
ATR Chief Executive Officer Patrick de
The civil aviation industry in India has ushered in a Castelbajac "India's potential is far bigger than that
new era of expansion driven by factors such as of Brazil. But it's a very complex country and the
low-cost carriers (LCC), modern airports, foreign interaction between industry and government is
direct investments (FDI) in domestic airlines, complex.The first challenge is the complexity of the
cutting edge information technology (IT) administration. I get a feedback from the airlines
interventions and a growing emphasis on regional that other issues are fuel price and taxes. They say
connectivity. The aviation sector today supports we need to fix these two issues because we are
56.6 million jobs and produces over US$ 2.2 paying more compared to the other countries. The
trillion of the global gross domestic product system has to balance itself. Today in India, the
(GDP). The Government plans to invest US$ airlines are at a little disadvantage because of all
12.1 billion in the airport sector during the 12th these layers of complexity, taxes and high fuel
Five-Year Plan period (of this US$ 9.3 billion is prices."
expected to come from India's private sector)
towards construction of new, low-cost airports Fuel cost is a major consideration in the Indian
and development of existing ones. aviation scenario as 45-50 percent of total cost is
dependent on it. India imports a huge percentage
According to the DGCA, India's scheduled of Aviation Turbine Fuel (ATF) from foreign
airlines carried 67.73 million passengers in 2014 sources. Fuel in India is nearly 50-55 percent
compared with 61.42 million passengers in 2013, costlier than in other neighbouring countries like
and 58.81 million in 2012. Air traffic in India grew Singapore or Dubai due to the addition of state
between 20 and 40 per cent for six years starting levies ranging from 3-35 percent (Business -
2003, when low-fare airline Air Deccan was Standard ). Various state government have
launched, making it possible for more people to reservations on including it in the proposed Goods
travel by air. and Services Tax list. Such a move will mean a
2
http://www.makeinindia.com/sector/aviation
uniform tax rate of four percent instead of a varied Boeing that influenced the world traffic flows.
rate of four to 26%
 GDP development,
According to the Directorate General of Civil
 Worldwide commerce,
Aviation (DGCA) chief M Sathiyavathy "The
(domestic aviation) industry is not so mature...It  Population,
will be premature to hand over all compliance  Labor-force composition,
(related matters) to the industry and leaving the
 International trade as a share of GDP,
DGCA to focus just on oversight,"
 Emerging technology (e.g., new airplanes
The aviation sector has been hit due to primarily
with improved economics and capabilities),
high operating cost. The rise in operating cost is
due to the presence of 1) high Air Turbine Fuel  Business-model innovation,
Tax and 2) Airport Development Tax. Estimates  Quality of service (e.g., new nonstop city
show that domestic airlines spent around ?27,000 pairs, greater frequencies),
crore on ATF in 2013-14. According to the
 Travel attractiveness,
estimates of the Centre for Asia Pacific Aviation,
the industry had a combined loss of $1.77 billion  Industry competitiveness and infrastructure,
(around 11,200 crore) in 2013-14.  Openness of air services and domestic
Even the cost of entering the Indian market is not airline regulation.
attractive for some new entrants. Vistara CEO Indian economy is characterized by rich
Phee Teik Yeoh, said "Cost of doing business is demographic dividend wherein 62 percent
already weighing down (carriers) even before they population is in the age group of 15 - 60 years
start competing," and this proportion will increase further causing
Many new airlines are now aligning their strategy large employee base, greater business travel and
towards emerging metros in India, Indian aviation greater economic activity. Even Mckinsey Global
is experiencing dramatic growth across the board, Institute's projection state that India's urban
from the emergence of LCC/new carriers to a population will be 40 percent of India 2030.3
growing middle class ready to travel by air as well The Government of India has taken initiatives in
as growth in business and leisure travel term of investment in airport and related
Industry Drivers: infrastructures that stimulated the growth of air
traffic of India. Total investment made by private
According to Boeing, traffic flows is highly airport operators in the last five years was to the
influenced by economic growth indicators. There tune of Rs 30,000 crores spread across
are few key indicators that are provided by Greenfield development of Hyderabad and
3
7http://www.urbanindia.nic.in/what%27snew/Strategic_Plan_draft_new.pdf.pdf
Bengaluru international airports and modernization Government of India has formulated policy to
of Delhi and Mumbai international airports.4 encourage foreign investment and participation by
announcing Foreign Direct Investment Policy for
Tourism in India has displayed a steady rise in the
the aviation sector. FDI inflows in air transport
last decade wherein departure to and from India
(including air freight) during April 2000 to January
has increased by 11.5 percent and 9.2 percent
2015 stood at US$ 562.65 million, as per data
respectively. Domestic tourists were 740.2 million
released by Department of Industrial Policy and
in 2010.5
Promotion (DIPP).:
There has been also a contribution from corporate
 Up to 74% FDI is permitted for existing
houses due to global integration of businesses.
airport projects under the automatic route,
Also, there has been rise in the number of mergers
above 74% and up to 100% permitted
and acquisitions.
under government approval route.
Policy Initiatives
 Up to 49% FDI is permitted in domestic
Government agencies have projected that around scheduled passenger airlines under the
500 airports in all, both brownfield and greenfield, automatic route. 100% permitted for NRIs.
would be required by 2020 (Green-field and Up to 49% FDI under the automatic route is
brown-field investments are two different types of permitted in Non-Scheduled Air Transport
foreign direct investment, or FDI. Green-field Service. FDI above 49% and up to 74% is
investments occur when a parent company begins permitted under Government approval
a new venture by constructing new facilities in a route. 100% FDI permitted for NRIs.
country outside of where the company is
 Up to 100% FDI is permitted in helicopter
headquartered. Brown-field investments occur
services and seaplanes under the automatic
when a company or government purchases an
route
existing facility to begin new production
(Investopedia) ).  Up to 49% FDI is permitted in ground
handling services under the automatic route.
The private sector is sought to be involved in a big
FDI above 49% and up to 74% is permitted
way through different PPP models, with substantial
under government approval route. 100%
involvement of state support in terms of financing,
FDI permitted for NRIs.
concessional land allotment, tax holidays and other
incentives. For example 5 international airports The Government of India has also ensured
(Delhi, Mumbai, Cochin, Hyderabad, Bengaluru) competitive environment in the aviation sector by
have been completed successfully under PPP allowing an autonomous body, Indian Institute of
mode. Corporate Affairs (IICA) was formulated by the
4
Association of Private Airport Operators (APAO)
5
http://tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/New/2010.pdf
Government of India under the aegis of Ministry of model addresses business and operational costs
Corporate affairs to identify and analyse that reduces airline cost. Cost reducing practices
potentially competition inhibiting provisions of will include operating at secondary airports, flying
statutes, rules, policies and practices found within a single airplane type, increasing airplane
the regulatory framework of India's civil aviation utilization, relying on direct sales, offering a single
sector. class product, avoiding frequent flyers programs
and keeping labor cost low. It is observed that
The report offered policy recommendations that
the unit cost gets reduced by 20 percent to 40
would minimize and in some cases eliminate
percent when compared with network carriers.
certain prevailing barriers to competition. The
The low cost further stimulates the airlines to
reports recommended that formulation of a single
reduce fares that increases the traffic. Southwest
civil aviation policy taking into account the
airlines in the United Airlines and Ryanair in
aforementioned recommendations would be a
Europe are one of the popular examples in the
major step towards ensuring competition in India's
LCCs growth story. The three major alliances
civil aviation sector.
(Star Alliance, SkyTeam, and oneworld) now
Government is also discussing to do away from provide more than 60 percent of global capacity
the the '5/20 rule'. This rule mandates a domestic (Boeing). See Exhibit:
carrier to be five year old and have a fleet of 20
There are some vital reasons accounting for the
aircraft to fly on international routes, which is a
rapid development of LCCs in Asia since the
biggest hurdle. It mean less economic activity as
early 2000. First , the eruption of the financial
aviation has been a key growth generator for other
crisis in Asia in 1997 enable a high demand of
countries like Singapore and Dubai. AirAsia India
low cost air transportation for business travelers
chief executive officer Mittu Chandilya told
which financially supported by cost conscious
PTI,that he is holding back his expansion plans
finance departments of private companies. The
due to the lack of clarity "on such an important
dramatic decline in air transportation after the
policy issue".
Asian Financial Crisis also made the governments
New breed of airlines: in some Asian countries under pressured, which
were before unwilling to grant the right or
One of the most recent developments in the airline
permission to operate on international routes to
industry is the emergence of new of breed of
airline providers other than the national route to
airlines that are also called as low cost carriers
establish domestic as well as international aviation
(LCC). LCCs has experienced a significant
market for independent low cost startup. For
growth in almost every market. In the last two
instance the Indonesian government in 2000
decades there has been a spectacular growth in
issued 10 licences to new airlines providers to
the LCCs business model. The LCCs business
gain broader market expansion.6
6
Thomas, G. (2002), "Asia?s Absent Revolution?, ATW, September 42, 47.
Many LCC which began by short- haul "single decades there was a significant rise in their
border services have expanded to cover up multi presence. Southwest Airlines can be one of
country services within the sub region of north, interesting example of increasing its market share
South & South Asia crosswise them (intravia 2004 in US through its low cost strategy. This followed
p 23) Even long haul International services have many other airlines to enter the US market after
recently been opened by some LCC Such as Viva deregulation. The rise of LCCs became one of the
Macau & Oasis though with mix result. key drivers in the world aviation industry as the air
traffic witnessed a phenomenal rise.
There are some low cost terminal opened recently,
such as in Malaysia's " Kuala Lumpur Low Cost It is disclosed by the aviation industry worldwide
Carrier Terminal in 2005 and Singapore's Changi that LCCs share is going to increase to 60%
Airport in 2006. It really helps foster further market share by 2030. It is to be noted that LCCs
development of low cost carrier in the region. are mostly preferred by low cost airline
These Low - cost terminals do not have the companies. India is no exception. In India, Air
trimmings of other terminals (such as airline Deccan that influenced the aviation sector
lounges) and plan for the mass rapid on boarding introduced the LCCs. Air Deccan was later
and disembarking of passengers . By reducing or acquired by Kingfisher.
eliminating valued added services offered by
Pioneers in LCCs:
classic airports, these low-cost airports, terminals
were able to control costs and pass the savings on Southwest Airlines is one of the world's largest low
to the airlines using their services. Tiger airways cost carrier, US based airline company.It was
for example signed a contract to utilize the low established in 1967, and currently has 47000
cost terminal opened at Singapore's Changi employees and operates around 3600 flights a
Airport in March 2006. Similarly Airasia has used day.
the low cost terminal opened and operated at
Airasia Airlines is a low cost Malaysian airline. It
Malaysia's Kuala Lumpur International Airport
has world's lowest unit cost of US $0.023 per
since March 2006.7
available seat kilometres and a passenger
Southwest Airlines financial details
breakeven load factor of 52%.
Currency in Millions 2011 2012 2013 2014
of US Dollars Airasia financial details

Currency in Millions 2011 2012 2013 2014
Total Revenues 15,658.00 17,088.00 17,699.00 18,605.00
of US Dollars
Gross Profit 3,421.00 3,689.00 4,357.00 5,494.00
Total Revenues 4,495.10 4,946.10 5,290.10 5,556.40
Source bloomberg
Gross Profit 1,696.90 1,730.00 1,649.00 1,741.90
LCCs were present long back in the world
aviation industry. However, in last couple of Source bloomberg
7
Hongkong Economic Times 2006
Indian LCCs: confined to metros. Other new cities too emerged

in the last decade to be part of the growth story
It is interesting to note that Indian Airline industry
eg Pune, Nagpur, Jaipur, Baroda, Surat, Udaipur
is predominantly dominated by low cost carriers
etc. According to IATA accredited travel agent S
airlines. There are few LCCs in India like - the Jet
Jagannathan "Earlier, the maximum number of low
Konnect, SpiceJet, Indigo and Go Air. Airasia cost air travellers used to be people who booked
and Vistara are the new entrants. These are most well in advance for the cheapest prices. Now,
active in the domestic market. The airlines boom we're seeing a lot of people flying to places like
in last decade wherein innovative offers like price Coimbatore, Trichy, Madurai and other smaller
tags as low as Re 1, internet auctions, bulk places instead of taking a bus or train because of
purchases and attractive last day fares saw the convenience factor involved. This is a good
significant response in Indian market. sign for Indian aviation," ( Indian Express, 20
Airline representatives mentioned that for July, 2015).
domestic, business class flights covering distances However, many of these airlines are experiencing
below 750 kms, the special fare is being offered losses. One of important reasons is due to
for as low as Rs 6,999, all inclusive. currency fluctuations and high cost fuel prices.
One of the interesting measures that a reader new
For the same flight category but longer flight
to the aviation industry should understand is the
distances of 750 to 1,000 kms, fares start at a
Passenger load factor. It measures the capacity
minimum of Rs 8,999.
utilization of airlines or how many seats were filled
Fare prices for flight distances beyond the 1,000 as compared to the total capacity.
km mark are likewise slashed by up to 20 per
In the month of June, '15 Spicejet was the leader
cent. They have provided airline services to
wherein its passenger load factor were 93.2 per
numerous small pockets in India.
cent, SpiceJet chief operating officer Sanjiv
 Spicejet - SpiceJet offers 100,000 tickets Kapoor said it means "almost 9 out of 10 flights
for Re 1 8 are 100 per cent full because to achieve 93
percent (load factor) means there are few flights
 Cheap Flight ticket offer: Book AirAsia in the bay that are not going full. We in the last
flight ticket at Rs 990, yet again 9 year and half have put together schemes to try to
sell as many seats as possible that would have
 Jet Airways Offers Rs 933 Promotional
otherwise expect to gone empty especially in low
Scheme 10
season". Mr Kapoor attributed the high capacity
Post liberalization in India has witnessed rise in utilization to its "smart" discounting or pricing
disposable income. The prosperity was not only policy.
8
Business Standard 14 July, 2015
9
oneindia
10
NDTV Profit, Sept, 2014
Financial health of number of airlines is poor. For example, for a market consisting of four firms
Indian aviation have reported a loss of US $ 2 with shares of 30, 30, 20, and 20 percent, the
billion in 2012. (in Rs. crores)
2009 2010 2011 2012
Jet Airways -402 -467 969 -1236
Spice Jet -352 61 101 -605
Kingfisher -1608 -1647 -1027 -2328
Total net profits and losses posted by airlines11 HHI is 2,600 (302 + 302 + 202 + 202 = 2,600).
Competitive environment It approaches zero when a market is occupied by

a large number of firms of relatively equal size and
Due to rising operational cost many airlines in
reaches its maximum of 10,000 points when a
India are facing challenging environment. In case
market is controlled by a single firm. The HHI
of Indian Airlines, it plans to raise a total of
increases both as the number of firms in the market
Rs 5,000 crore through asset monetisation.
decreases and as the disparity in size between
The changes in the domestic airline industry those firms increases. Any increase in the index
brought dynamism by entry of new entrants indicates a decrease in competition and an
especially LCCs. The dynamism was also due to increase in market power, whereas any decrease
competition among players, consolidation among indicates the opposite 12
players, consolidation and exit of players in the The closer a market is to being a monopoly, the
last two decades. higher the market's concentration (and the lower
Herfindahl-Hirschman Index in Indian airline its competition). If, for example, there were only
industry one firm in an industry, that firm would have 100%
market share, and the HHI would equal 10,000
A commonly accepted measure of market (100^2), indicating a monopoly. Or, if there were
concentration. It is calculated by squaring the thousands of firms competing, each would have
market share of each firm competing in a market, nearly 0% market share, and the HHI would be
and then summing the resulting numbers. The HHI close to zero, indicating nearly perfect
number can range from close to zero to 10,000. competition.13
The HHI is expressed as:
Any increase in the index indicates a decrease in
HHI = s1^2 + s2^2 + s3^2 + ... + sn^2 (where competition and an increase in market power,
sn is the market share of the ith firm). whereas any decrease indicates the opposite.
11
FICCI and PwC (2013): "Indian aviation: Spreading its wings," Aero India
12
Report on COMPETITIVE ASSESSMENT, CCI 2013
13
Investopedia
The agencies generally consider markets in which Japanese governmental agency. After the study of
the HHI is between 1,500 and 2,500 points to be the financial feasibility of the line, the final report
moderately concentrated, and consider markets in suggests the fare of the bullet train between
which the HHI is in excess of 2,500 points to be Mumbai and Ahmedabad may be somewhere
highly concentrated. Transactions that increase the around one and half times more than the fare of
HHI by more than 200 points in highly the first AC of Rajdhani Express and it would be
concentrated markets are presumed likely to around Rs 2,800.16 It is will be interesting to note
enhance market power under the Horizontal the development mainly because the bullet train
Merger Guidelines issued by the Department of will compete directly with airlines. The first high-
Justice and the Federal Trade Commission. 14 speed railway, known as the Shinkansen ("new
mainline"), cut journeys between Tokyo and
In India, for the airline industry, the HHI for 2005-
Osaka by two hours (from six to four) when it
06 stood at 2568 whereas HHI for 2011-12
opened in 1964. This made it competitive with air
stood at 1611. This decline in HHI indicates a shift
travel.17
from a highly concentrated market scenario in
2005-06, (when despite having eight market Different Model of cooperation
players) to a moderately concentrated market in
The aviation industry is a high cost industry
2011-12 where there are only six carriers
wherein it not includes high fixed cost for fleet size
operating eleven different brands i.e. three Full
but also operating cost. Also, the probability of
Service Carriers (FSCs) Air India, Jet Airways,
excess capacity increases per unit operational
Kingfisher, their respective low cost arms Alliance
cost. Hence dependence on inventory with less
Air & Air India Express, Jet Konnect and JetLite
demand can invite trouble for the any airline
and Kingfisher Red and three Low Cost Carriers
company. One of logical option is to rationalize
(LCCs) namely Go Air, Spicejet and Indigo.15
the capacity wherein resources are utilized
Bullet trains are one of the latest development in efficiently in case of volatility of demand. It is not
India. India's maiden bullet train corridor between feasible for any airline company to provide global
Mumbai and Ahmedabad will cost nearly Rs one service, therefore cooperation in terms of flight
lakh crore and the first train can run in 2024 if scheduling, locating departure gate for connecting
work begins in 2017, according to a final flights near the arrival gate, coordinating baggage
feasibility report on the project prepared by the transfer etc is essential.
14
http://www.justice.gov/atr/public/guidelines/hhi.html
15
Government of India, Ministry of Civil Aviation (2012): "Report of Working Group on Civil Aviation Sector," National
Transport Development Policy Committee
16
http://economictimes.indiatimes.com/articleshow/
48148503.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
17
http://www.economist.com/blogs/economist-explains/2014/06/economist-explains-7
Spectrum of airline co-operation 18 Alliance may provide more convenience to

passengers in flight schedules, greater flight
HIGH
Merger-like integration frequency, a larger network and more online
connections. Passengers may also experience low
Expanded cooperation to Revenue, cost & benet fares due code sharing on complementary routes.
develop joint network sharing joint venture
Direct coordination (incl, prices, routes,
scheduling, facilities, etc)
Mergers
Code sharing
Limited cooperation
on specic routes
A merger is a combination of two or more
FFP & Lounge Access
businesses into one business. Laws in India use the
Interlining
term 'amalgamation' for merger. There are different
LOW
types of mergers : 21
Currently many of airlines are looking for feasibility
 Horizontal Mergers : A Horizontal
of alliances. . The US and European Union have
Mergers occurs when one firm combines
been very permissive to the process of
with the other in the same line of business.
liberalisation, especially to the formation of
This kind of merger takes place between
strategic alliances. The major alliances as they
entities engaged in competing businesses
stand today, are built around large US and
which are at the same stage of the industrial
European carriers. The key partners are United
process.
and Lufthansa for the Star Alliance, American and
British Airways for the Oneworld alliance, Delta  Vertical mergers: Vertical mergers refer to
and Air France for the Skyteam alliance. By the the combination of two entities at different
middle of 2011 these three largest alliances in the stages of the industrial or production
world were providing over 80% of capacity process. For example, the merger of a
across the Atlantic and Pacific and just under 80% company engaged in the construction
between Europe and Asia.19 business with a company engaged in
production of brick or steel would lead to
The alliance can create additional online carriers
vertical integration.
between two cities. For example, if one carrier
flies between A and B and another flies between B  Conglomerate Mergers: A conglomerate
and C, an alliance between the two carriers can merger occurs when unrelated enterprises
create one or two additional competitors between combine. The principal reason for a
A and C. 20 conglomerate merger is utilization of financial
18
US DOT and European Commission (Nov 2010) 'Transatlantic Airline Alliances: Competitive Issues and Regulatory
Approaches
19
Doernhoefer Gary and Pearce Brian (2011): "The Economic Benefits Generated By Alliances and Joint Ventures," IATA
Economics Briefing
20
Bamberger E. Gutavo, Carlton W. Dennis and Neumann R. Lynette (2004): "An Empirical Investigation of the Competitive
Effects of Domestic Airline Alliances," Journal of Law and Economics: 47(1), 195-222
21
http://www.legalservicesindia.com/article/article/mergers-&-acquisitions-in-aviation-sector-805-1.html
resources, enlargement of debt capacity, The industry perspective toward airline company
and increase in the value of outstanding is whether it can successfully run a full-service
shares by increased leverage and earnings airline, an LCC and international operations under
per share, and by lowering the average cost one umbrella. It has been seen for many years
of capital. that it doesn't work. Only four LCCs like
 Acquisition: An acquisition or takeover is Southwest Airlines (in the US), RyanAir and
the purchase by one company of controlling easyjet (Europe) and Goal (Brazil) that have
interest in the share capital, or all or stuck to the LCC model have been successful 24
substantially all of the assets and/or Go Air:
liabilities, of another company. A takeover
may be friendly or hostile. GoAir was founded in the year 2005 by Jehangir
Wadia, the younger son of eminent Indian
Jet Airways and Sahara Airlines merger
industrialist Nusli Wadia. The airline marked the
On 20-Apr-07, Jet Airways acquired 100% of entry into the critical aviation sector for the Wadia
the shares in Air Sahara, 15 months after the Group an Indian business conglomerate famous
original purchase agreement was signed. Jet for its companies like Bombay Dyeing and
Airways acquired Air Sahara for INR14.5 billion Britannia Industries. The Wadia group wholly
(approximately USD350 million) - 35% less than owns the airline. Jehangir Wadia is also the
the original price.22 Managing Director (MD) of the airline. GoAir
launched its operations in November 2005 using
Air Deccan and King Fisher merger
Airbus A320 aircraft.25
Vijay Mallya buyed over the crisis-ridden no-frills
Go Airlines (India) Ltd. is the aviation foray of the
Air Deccan owned by Capt Gopinath in 2007.
Wadia Group. It operates its services under the
The merged group plans to save up to Rs. 300
crore on costs with a combined fleet strength of brand GoAir. In November 2005, GoAir
71 aircraft. Through a reverse merger, Kingfisher launched its operations as a low-fare carrier with
Airlines became Air Deccan and once the entire the objective of commoditizing air travel and
acquisition was complete with necessary offering airline seats at a marginal premium to
approvals from the regulator SEBI in place, Mr. train fares across India. The airline currently
Mallya quickly changed the airline's name back to operates over 140 daily flights and approximately
Kingfisher Airlines in 2008.23 975 weekly flights across 22 destinations.26
22
http://capaindia.com/PDFs/Jet-Airways-May-07.pdf
23
http://www.thehindu.com/business/Industry/kingfisher-airlines-crisis-timeline/article4636635.ece
24
http://www.rediff.com/money/2007/dec/21king2.htm
25
https://en.wikipedia.org/wiki/GoAir
26
https://www.goair.in/menu/about-us
GoAir is positioned as 'the Smart People's Airline'. Schauer, the slow growth of the airline is a
Its captivating theme, 'Fly Smart' is aimed at company strategy taken up due to the tough
offering passengers a consistent, quality-assured, aviation environment in India, as a result of which
and time-efficient service through 'pocket-friendly' the focus is on maintaining profitability rather than
fares. The airline uses the state-of-the-art Airbus on capturing market share and increasing the
A320 aircraft fleet.27 destinations and fleet size.30
Go Air is based on the 'punctuality, affordability, Way Forward:

and convenience' business model. The airline has
Amid all these, Go Air got an offer from a UAE
also partnered with Radixx International, a leading
based airlines for acquisition of their shares. As per
technology provider of automated aviation and
the new FDI policy, it is now open for foreign
travel-related software solutions, for the use of its
airlines to invest up to 74% in any Indian airlines.
Air Enterprise. The adoption of such technology
solutions enable GoAir to achieve superior Jet Airways shares srared nearly 20% after Etihad
process efficiency, thereby helping transfer a deal in 2013. Jet Airways - Etihad deal has raised
greater portion of time savings to its passengers.28 hopes for other airlines. Hopes for SpiceJet has
also raised , which is also in stake sale talks with
In May 2014, GoAir has achieved 81.8% load
Qatar Airways for 24% . As far as Spice jet is
factor which was the second highest in the industry
concerned, its market share has risen 51 percent
through a balanced mix of good on-time
to 20.4 percent since September 2011. It has
performance and consistent quality of customer
cleaner balance sheet compared to industry
service coupled with smart fares. As part of its
players with debt of Rs. 1190 crore., which helped
aggressive future outlook, GoAir has inducted
Spice jet to get this opportunity. If Spicejet
additional aircraft which has taken its fleet size to
successfully closes the deal, then they will be
19 aircraft by May 2014 and will induct new
benefited in terms of high market value of their
routes while efficiently servicing existing ones.29
share.
Since January 2007, Go Air has been recording an
Another portion which is open for Go Air is to get
average load factor of 76%. But the airline's
fully merged into Indigo, keeping in mind the
growth has been slow, with other airlines
examples of other airlines like Air Deccan-
established at the same time such as IndiGo and
Kingfisher Merger.
Spice Jet having overtaken Go Air in terms of
market share, fleet size and destinations served as Some members of the Board of Directors of Go
of 2013. However, according to Wadia and Chief Air were of the opinion to expand their own
Executive Officer (CEO) Wolfgang Prock- business.While implementing the expansion
27
28
29
30
https://en.wikipedia.org/wiki/GoAir
strategy, company need to take into consideration Consumer Inclinations: Consumers are likely
some of the challenges like to remain price sensitive and inclined towards no
frill airlines. There also may be price elasticity
Policy-related issues: Directorate General of given the availability of travel by rail, as India
Civil Aviation (DGCA) revised its `Civil Aviation enjoys one of the world's largest rail networks.
Requirements' or "CAR"which states that
domestic airline company cannot enter into an Intense competition: Due to the entry of LCC
agreement with a foreign investing entity (including (Low cost carrier) and already existing players,
Competition has become very intense in airline
foreign airlines) that may give such foreign entity a
segment.( e.g. Air One, Premier Air, Zexus Air,
right to control the management of the domestic
Turbo Megha, Air Carnival and Zav Airways)
operator.
Further pressure is a consequence of the fall in
Airline companies need to sign bilateral air the value of the rupee relative to the dollar.
services agreements with countries where it wants Though above mentioned news are promising,
reciprocal flights to operate. The ASAs are Management of Go Air is now in dilemma
between two Governments and their modalities whether to accept the offer of acquisition/ merger
are handled by the Ministry of Civil Aviation. or implement their own expansion strategy.
Exhibit:I International passenger growth faster than domestic
Source: AAI, Ministry of Civil Aviation
Exhibit II: Financial position of Airlines
Source: CAPA, Centre for Asia Pacific Aviation, India
Exhibit III: Ratio of direct flights to schedule time
Source: Airport Authority of India
Exhibit IV: Details of Flights per week
Source:http://www.livemint.com/Companies/RfU4n2VcHZ7ntCuxMOMnvN/IndiGo-
soars-above-Jet-Airways-Air-India.html (23rd June 2015)
Exhibit V: Cancellation rate of domestic airlines
Source: CAPA
Exhibit VI: India’s top 15 international airlines
Source: OAG Schedules Analyser for w/c 3 August 2015 and w/c 4 August 2014
Exhibit VII: Middle East hubs
Alliance Story
One world Sky Team Star Alliance
Destinations: 981 1024 1348
Countries 151 178 195
Daily 14244 15189 17808
Departures:
Fleet: 3283 2853 3297
Annual 475 million 569 million 610.4 million
Passengers:
Name of Airlines
Current Airline Aeroot Adria Airways
Partners
airberlin Aerolíneas Argentinas Aegean Airlines
(including NIKI)
American Aeromexico Air Canada
Airlines
British Airways Air Europa Air China
Cathay Pacic Air France Air New Zealand
(including
Dragonair)
Finnair (including Alitalia ANA
Flybe Finland)
Iberia China Airlines Asiana Airlines
Japan Airlines China Eastern Austrian
LAN China Southern Avianca
Malaysia Airlines Czech Airlines Brussels Airlines
Qantas Delta Air Lines Copa Airlines
Qatar Airways Kenya Airways Croatia Airlines
(new)
Royal Jordanian KLM EGYPTAIR
S7 Airlines Korean Air Ethiopian Airlines
Globus, LLC.
US Airways Middle East Airlines EVA Air
TAM Airlines Saudia LOT Polish Airlines
Sri Lankan TAROM Lufthansa
Airlines
Vietnam Airlines Scandinavian Airlines
Xiamen Airlines Shenzhen Airlines
Garuda Indonesia Singapore Airlines
South African Airways
SWISS
TAP Portugal
THAI
Turkish Airlines
Air India
Exhibit IX: Market share of LCC in the world (2013)
Exhibit X: Snapshot of few airliners in India
Snapshot of few airliners in India
Source: Indian Express, 20 July 2015
Exhibit XI: Financials of leading Indian airlines
Source: Business Standard (Oct, 2014)
Exhibit XII: Passenger load factor of airlines after launch
Exhibit XIII: Emerging markets are driving growth
Exhibit XIV: Airline Industry Analysis
Exhibit XV: Dynamism in Airline Market (India)
Exhibit XVI: Profit & Loss Account of GO Air
Description Mar-14 Mar-13 Mar-12 Mar-11 Mar-10

Year End 201403 201303 201203 201103 201003
No of Months 12 12 12 12 12
INCOME :
Operating Income 2223.32 1840.62 1112.93 765.08 520.31
Sale of Products &

Services 20.95 20.45 12.20 7.67 0.00
Passenger Services 0.00 1732.06 1038.97 0.00 0.00
Cargo Services 2192.72 84.49 59.31 757.41 520.31
Profit on sale of
assets/investments 9.65 0.00 0.00 0.00 0.00
Other Operational
Income 0.00 3.62 2.45 0.00 0.00
Operating Income (Net) 2223.32 1840.62 1112.93 765.08 520.31
EXPENDITURE :
Increase/Decrease in
Stock 0.14 -0.37 -0.14 -0.02 -0.18
Other Opening Balances 0.77 0.40 0.26 0.24 0.06
Less: Other Closing

Balances 0.63 0.77 0.40 0.26 0.24
Raw Material Consumed 11.87 11.20 6.93 3.82 2.58
Power & Aircraft Fuel

Expenses 1103.70 863.31 575.26 304.73 182.73
Electricity & Power 1103.70 863.31 575.26 304.73 0.32
Employee Cost 185.79 139.45 104.36 58.76 44.84
Salaries, Wages &

Bonus 180.57 135.43 101.61 57.19 43.61
Contributions to EPF &

Pension Funds 3.88 3.04 2.04 1.33 1.05
Workmen and Staff

Welfare Expenses 1.34 0.98 0.71 0.24 0.19
Operating Expenses 16.60 11.91 7.61 5.92 67.01
Repairs and
Maintenance 5.29 3.43 2.36 1.99 10.50
Stores, spare parts and

tools consumed 11.31 8.48 5.25 3.94 3.06
General and
Administration Expenses 430.87 354.52 220.58 118.84 70.38
Rent, Rates & Taxes 8.59 5.98 4.85 2.98 2.70
Insurance 7.60 7.06 5.19 4.68 5.07
Repairs & Maintenance -

Others 46.82 41.18 23.88 13.19 0.03
Printing and stationery 1.84 1.38 1.07 0.76 2.23
Professional and legal

fees 8.03 7.34 7.18 4.73 43.56
Traveling and
conveyance 9.57 7.90 6.49 3.72 9.69
Hire Charges - Admin 334.06 271.23 160.14 81.97 0.00
Training Expenses 8.19 7.49 7.92 3.97 2.58
Selling and Distribution

Expenses 127.48 102.40 78.78 58.49 48.07
Advertisement & Sales

Promotion 18.75 16.66 16.73 12.59 7.91
Sales Commissions &

Incentives 108.42 85.37 61.92 45.78 35.39
Miscellaneous Expenses 243.49 178.97 112.25 74.05 0.90
Total Expenditure 2119.94 1661.38 1105.63 624.59 416.33
Operating Profit 169.47 230.29 37.98 164.88 118.22
Profit & Loss Balance

C/F 5.00 39.77 25.58 0.00 35.92
Exhibit XVII: Balance Sheet of Go Air
Description Mar-14 Mar-13 Mar-12 Mar-11 Mar-10

Year End 201403 201303 201203 201103 201003
SOURCES OF
FUNDS:
Share Capital 6.87 6.87 6.87 6.87 37.95
Equity -
Authorised 10.00 10.00 10.00 10.00 10.00
Equity - Issued 6.14 6.14 6.14 6.14 6.14
Equity -
Subscribed 6.14 6.14 6.14 6.14 6.14
Equity - Called
Up 6.14 6.14 6.14 6.14 6.14
Preference
Capital Paid Up 0.73 0.73 0.73 0.73 31.81
Face Value 200.00 200.00 200.00 200.00 200.00
Total Reserves 74.65 99.60 69.66 44.09 35.92
Profit & Loss

Account Balance 5.00 39.77 25.58 0.00 35.92
General
Reserves 38.57 28.75 13.01 13.01 0.00
Capital
Redemption
Reserve 31.08 31.08 31.08 31.08 0.00
Shareholder's
Funds 81.53 106.48 76.54 50.96 73.87
Secured Loans 616.15 323.47 181.11 154.61 180.08
Term Loans -
Banks 19.16 32.57 30.56 13.57 55.99
Hire Purchase
/ Financial Lease 555.05 268.09 150.55 141.04 124.09
Other Secured 41.94 22.80 0.00 0.00 0.00
Unsecured Loans 539.61 382.88 234.01 123.32 127.27
Total Debts 1155.76 706.35 415.12 277.93 307.35
Total Liabilities 1237.28 812.82 491.66 328.89 381.22
Plant&
Machinery 821.18 364.25 183.33 165.20 0.00
Vehicles 14.99 12.55 8.89 7.77 5.24
Computer
Software 7.01 4.79 3.29 2.26 4.56
Other Fixed
Assets 19.51 15.27 12.03 9.76 0.00
Less:
Accumulated
Depreciation 98.90 54.35 37.54 24.33 13.64
Net Block 791.19 352.89 177.20 166.23 167.26
Investments 700.47 461.43 213.23 220.02 131.42
Long Term
Investment 446.17 233.76 108.54 59.57 0.00
Currents
Investments 254.30 227.67 104.68 160.45 131.42
Inventories 13.46 10.46 7.48 8.93 6.81
Sundry Debtors 17.82 13.70 7.78 3.33 3.61
Cash and Bank 220.31 268.12 261.77 155.14 63.70
Total Current
Assets 328.64 386.47 357.06 229.48 153.37
Current
Liabilities 479.26 372.43 266.07 171.40 79.93
Sundry
Creditors 78.71 55.95 35.87 24.11 29.22
Total Current
Liabilities 572.17 378.59 269.13 287.35 83.39
Book Value 2631.65 3444.40 2469.11 1636.05 1369.91
RESEARCH COMMUNICATION
Exploratory Research
Sumeet Manerikar*
Exploratory research is an initial research which using those machines. Continuous monitoring of
analyzes the data and explores the possibility of stock exchange index and share prices
obtaining as many relationships as possible movements through newspaper and magazines is
between different variables without knowing their an example of observational method which will
end-applications. This means that a general study help investment companies and individuals
will be conducted without having any specific end- effective management of portfolios. Generally,
objective except to establish as many relationships observation method of data collection deals with
as possible between the variables of the study. the recording of the behaviour of respondents/
This research provides a basis for general findings. sampling units. In this method, the investigator will
Researchers and practitioners can explore the observe the behaviour of the respondents in
possibility of using such general findings in future. disguise.
This type of research lay the foundation for the
Take the case of customers transacting with a
formulation of different hypotheses of research
bank. Here, the behaviour of the customers like,
problems.
patience while waiting, way of moving with the
Different types of exploratory researches are bank employees, helping fellow customers in
literature survey, experience survey and study of filling different forms, informing the bankers if
problems to have an insight. there is any excess credit in their pass books,
Consider the case of work sampling in a shop returning excess currency to the cashier if given
floor to determine the standard time of a job by him, opinion of the customers about the bank
which is manufactured by a set of machines. In through their casual discussions, time spent in
such study, the investigator observes the state of reading circulars in the notice board, etc., will be
these machines through random sampling. The observed by the investigator. The identity of the
state of a machine may be either in working state investigator should not be revealed to the
or idle state. At the end of the study, based on the customers. If it is known to the customers, they
direct observations, the investigator will determine may change their behaviour. This method helps
the standard time of the job that is manufactured capture the behavior of customers directly.
*Sumeet Manerikar, Associate Professor, Welingkar Research Centre, We School, Mumbai, India.
BOOK REVIEW
Title : The Boys in the Boat
Authors : Stuti Saxena
Publisher : An Epic Journey to the Heart of Hitler's Berlin
Pages : 228 pages
Turn to page 228 and you'll find the replica of the picture covering the upper-half of the book's front- cover-
this picture, of the nine Washington oarsmen who hit gold at the Berlin Olympics in 1936, summarizes the
volume perfectly. "The Boys in the Boat- An Epic Journey to the Heart of Hitler's Berlin" is a non-fiction
work by Daniel James Brown.
The book was listed among the New York Times Bestsellers List in the non-fiction category. It was shortlisted
for the William Hill Sports Book of the Year. Whereas The Times applauded it for its "thrilling" narrative,
Guardian hailed it for its "inspiring" note. A pure narrative, set in the background of the Great Depression
which engulfed more than half of the world, it is a success story of the US rowing crew winning gold at the
1936 Berlin Olympics.
First published in 2013 in US by Viking and in UK by Macmillan, the paperback edition was floated in 2014
by Pan Books. The book paddles through Prologue; Part One (1899-1933)- What Seasons They Have
Been Through; Part Two (1934)-Resiliency; Part Three (1935)- The Parts That Really Matter; Part Four
(1936)-Touching the Divine; Epilogue; Author's Note; Notes, and, Index. There are photographs in black-
and-white at appropriate places. Each of the eighteen chapters including the prologue and epilogue open
with a quote by George Yeoman Pocock, the steely-resolved boat-maker. The book is a dedication to the
"bright, shining boys of the 1930s"-Gordon Adam, Chuck Day, Don Hume, George "Shorty" Hunt, Jim
"Stubb" McMillin, Bob Moch, Roger Morris, Joe Rantz, and, John White Jr.
As the book runs as a flashback, the prologue forms the setting by sketching how the author meets Joe
Rantz, one of the rowers from the state of Washington. Part one has five chapters. It is a debrief on the
edifice which would shape the tryst of Washington crew in the forthcoming years apart from drawing the
trajectory of Hiltler's Germany and Roosevelt's America in the years of turmoil. There are three chapters in
Part Two of the book. Part Two was a trailer of the forthcoming rowing competitions on the river. Further,
Joe's relationship with his family took a downbeat course. "The Parts That Really Matter" titles the Part
Three tracing the year 1935 encompassing four chapters. Part Three veers around Ulbrickson's efforts at
training his boys to win; Germany's preparation for the Olympics, and, life's vicissitudes hovering Joe. Part
Four is captioned "Touching the Divine", and, it spans across chapters thirteen through nineteen. Part Four
was the heart of the book where the Washington boys won the Olympic gold in 1936 surmounting innumerable
hurdles.
The Epilogue is a discussion on the life and times of the rowers ahead of Olympics. The author pays a visit to
Berlin and pays homage to the rowers and the sites where the oarsmen rowed together. Finally, the author
expresses his thanks to Judy for narrating her father's tale in the Author's Note section. Notes and Index
append the book.
Reviewed by: Stuti Saxena is pursuing PhD in Political Science from Central University of Haryana.
BOOK REVIEW
Title : Understanding Occupational & Organizational Psychology
Authors : Lynne Millward
Publisher : Sage publications
Pages : 514 pages
This book is aimed at catering to the needs of the students of Psychology but it is also of great use to the HR
practitioners and the ones who intend to update themselves with the latest developments in the field of
psychology. The book is organized into eight chapters and each chapter is self contained and independent in
nature.
The author begins with the explanation of occupational psychology and its evolutionary journey. The first
chapter covers the selection and assessment process through a case study on "Daewood Cars". This chapter
is divided into three parts. The first part covers the selection validation paradigm, second part describes
about the validation techniques and the third part brings out the perspective of the applicant. The second
chapter deals with Training and is divided into six parts. This is a valuable contribution from the author as it
describes the way of designing and delivering training grounded in learning in a very comprehensive way.
There are two parts in the third chapter that cover "Performance Appraisal" and "Career Development". The
author has reviewed some of the theories to highlight the significance of these theories in career management
of the employees. The fourth chapter titled "Employee Relations and Motivation", helps in better understanding
of the psychology of the employee relations emerging at the workplace. The fifth chapter begins with the
review of the traditional and philosophical assumption behind organizational Development. She has highlighted
the importance of Change in understanding the Organizational Development and Change (ODC).
The sixth chapter on "Workplace Counseling and Personal Development" has mostly dealt with how the
organization can help an employee to deal with his/ her problems within the system-level perspective. The
role of counseling in an organization has been discussed in this chapter. The author has discussed various
advanced technologies and their cognitive and social requirements in the seventh chapter titled "Human-
Machine interaction". The last chapter of this text is on design of work and health and safety factors in work
environments. Here she talks about stress and stress management.
The book is very systematically written, the style of writing is simple and lucid. The preface to every chapter
throws light on a broader canvas to the subjects and the study box gives the latest research based information
on the topic of discussion.
Reviewed by: Chitralekha Kumar, Assistant Professor, We School, Mumbai.India.

Email: [email protected].
POEM
Less is More
Swar Kranti*
Water water not everywhere

Continued flow is getting rare
To save and conserve is it teaching
Are we learning what its teaching?
This situation is a loud call

To wake up for us all
It is a telling and a sign of everything coming
And unlike before of everything that won't be coming.
To make do with little

So that we can make do for long
Now to be opulent is not to have more
Now it means just to not need more.
Living with moderation has relevance

To purposefully bear some inconvenience
Your and my measures may vary of austerity
Yet for the planet will be caring this austerity.
People's wealth is not basis to respect

Character and competence now reason to connect
We now don't look down upon frugality
We now look up to contribution to society.
Consuming less is the new more

Leaving more for the future in store
More thoughtfulness, more for others therefore
Value of things redefines as less is more.
*Swar Kranti, Director, Yuvak Biradari (Bharat), India. A Welingkarite in Spirit.

1. Passion:
The soul of Welingkar blossoms in our heart, mind and body.
2. Breakthrough Thinking:
We foster academic rigour in an environment conducive to innovation.
3. Result oriented, Process driven Work Ethic:

We adopt dynamic quality processes to ensure accountability and exceptional
performances.
4. We Link and Care:

We support and collaborate with all our stakeholders through mutual
trust and respect.
Quality policY
We are committed to give our students Quality Management Education in tune with
the changing needs of business and industry.
We shall endeavor to do this by:
l Providing the best learning resources.
l Making the environment conducive for students to develop their creativity,

Leadership skills and ability to learn continuously.
We shall follow a data oriented factual approach to Quality Management leading to

continual improvement of our processes culminating in total customer satisfaction.
Prin. L. N. Welingkar Institute of
Management Development & Research
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A Study On Work Life Balance Among Women

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Vol.

XX Issue 1 March 2016 ISSN 0974 – 1119

A Peer Reviewed Research Journal

Focus on inventive education by offering practical, innovative and

Provide managerial talent with risk managing ability,

Contribute significantly to Indian corporate world by preparing

Build intellectual capital through faculty development, research,

Develop alumni network of mutual benefit and keep alumni updated

Prin. L. N. Welingkar Institute of Management Development & Research

To subscribe, please write to Welingkar Institute at the above address.

Vol. XX Issue 1 March 2016 ISSN 0974 – 1119

Editorial Board Members

Peer Review Referee Board

Dr. P. V. R. Murthy Dr. Suresh Govindaraj

Editorial Advisory Board

Dr. Arvind V. Phatak, Ph.D. Dr. Muhammad Ehsan Malik

It has been reflected in many International University Libraries:

Managing a diverse workforce - The greatest people management challenge 6

How to save data costs and influence decisions 8

Customer First, Always 9

A Study on Work Life Balance Among Women Employees 15

A Study Of Wealth Accumulation In India 25

The Effect of Credit Sufficiency on Loan Repayment Behavior of MSMEs 29

Segmentation of Cinema Audiences in the Indian Movie

Achieving Women Empowerment Through Microfinance:

An Empirical Study on Rupee Depreciation with respect to Residents of Gandhinagar

Dr. (Ms.) Ketna L. Mehta.

How to save data costs and influence decisions

Customer First, Always

Suresh Lulla is Founder & Mentor of Qimpro Consultants Pvt. Ltd.

Great is the guilt of an unnecessary war.

Be faithful in small things because it is in them that your strength lies.

I'm on an unlimited plan so there's no extra 1. Reuse.

8. Grow a Plant 10. Car Pool

Nothing ever becomes real till it is experienced.

Leadership cannot really be taught. It can only be learned.

Action is the foundational key to all success.

Intelligence is the ability to adapt to change.

A Study on Work Life Balance Among Women Employees

Sonal Mahajan - Narkhede* & Dr. Neelam Lal*

Introduction: scenario employed women are more focused

* Sonal Mahajan - Narkhede (Assistant Professor) AISSMS IOM, Pune.

Scope of Study: effect on mental health and physical health of the

People tend to forget their duties but remember their rights.

A Study Of Wealth Accumulation In India

Dr. Sapna Parihar* & Dr. Sofia Sadique Qureshi*

KEY WORDS: Household, Physical Asset, Saving, Wealth Accumulation

Introduction consumption and a small amount of income was

Saving conditions. Saving as we know is the excess of

http://ssrn.com/abstract=747046 or http:// Industrial and Developing Countries, The

Saving Type Mean in Million N Std. Deviation

Claim on Currency -361957.69231 655300.64 1.00

*. The mean difference is signicant at the 0.05 level.

A leader is a dealer in hope.

Experience is one thing you can't get for nothing.

Success is finding satisfaction in giving a little more than you take.

The Effect of Credit Sufficiency on Loan Repayment Behavior

Dr. Mateen Ahmed Siddiqui*

KEY WORDS: Credit, collateral security, Loan repayment, Borrowers, Monitoring