IMPACT OF ONLINE TRADING ON CUSTOMER SATISFACTION IN NEPAL STOCK EXCHANGE

Abstract

This study investigates the impact of online trading on customer satisfaction within the context of the Nepal Stock Exchange Limited (NEPSE). The introduction of NEPSE Online Trading System (NOTS) in November 2018 marked a significant shift from traditional, manual stock trading methods to a more dynamic, electronic platform. The research identifies key factors influencing trader dissatisfaction and examines the roles of different parties involved in the online trading ecosystem. Key findings indicate that service quality dimensions—reliability, responsiveness, security measures, communication of updates, and ease of use—are critical to user satisfaction. Correlation analysis reveals significant relationships between these dimensions and overall satisfaction with the NEPSE system. Moreover, the study highlights that reliability, responsiveness, and assurance of integrity and transparency significantly enhance users' ability to make informed investment decisions. ANOVA results confirm that these predictors collectively explain a significant portion of variance in investment decision-making ability. However, ease of use showed only a marginally significant effect, while security measures and communication of updates did not significantly predict improved decision-making ability. The study underscores the necessity of high service quality in electronic stock trading to boost trader satisfaction and market efficiency. Recommendations for financial institutions in Kathmandu Valley include enhancing job security, flexibility, and professional growth opportunities to improve employee satisfaction and performance. Implementing regular feedback mechanisms, recognition systems, and systematic development plans are also suggested to foster a positive workplace environment, ultimately leading to increased productivity and organizational success. Keywords: Ease of Use, Service Reliability, Internet Security, Responsiveness, Assurance, Communication, Customer Satisfaction