Impact of marketing on stock market performance: a perception of investor

Abstract

This work has evaluated how marketing practice can affect the stock market performance in terms of how investors perceive it. The objectives in particular have been to determine the present position of SMMA, APA, CSRI and RDC and to evaluate their correlation with SMP and to determine the impact of the same on SMP. The research has taken a descriptive and causal-comparative research design. The sample has included stock market active investors and a final revised sample of 457 respondents has been surveyed through purposive sampling. Structured questionnaires have been used to collect primary data and data analysis has been done using reliability tests, demographic analysis, descriptive statistics, correlation analysis, and multiple regression analysis. The dependent variable has been SMP with the independent variables being SMMA, APA, CSRI and RDC. The results of reliability have shown that all constructs have acceptable internal consistency. Demographic results have revealed that majority of the respondents have the age of 25 to 40 years with the majority of them being men, having education to +2 or bachelors level with 3-6 years’ investment experience and moderate awareness. The descriptive statistics have shown moderate to high ratings on the perceptions with RDC, APA, and SMMA rated strong and CSRI rated moderately and with low variability. Correlation analysis has shown that all the IVs significantly and positively correlated with SMP with the strongest relationships existing between CSRI and APA. The regression analysis has been used to establish the strong positive impacts of CSRI and APA, moderate effect of SMMA and moderate but significant effect of RDC on SMP. The paper has found that the investor confidence and the market performance have improved as a result of the strategic marketing practices, with significant policy and managerial implications.