CHAPTER – 4
DATA ANALYSIS AND INTERPRETATION
4.0 INTRODUCTION:
Data analysis is an important step to every study. This chapter focuses on the analysis and
interpretation of the primary data collected from the customer and they respond different types of
answers. Based on the information I prepared some analysis like percentage, mean and rank. The
purpose of this chapter is to highlight the demographic information of respondents and data analysis
explanation. The researcher has adopted convenience sampling method for this study. 155
respondents are chosen as a sample size for the study. The presentation of data analysis and
interpretation is based on the objectives framed for the study is systematically presented as follows.
The researcher has adopted convenience sampling and judgement sampling method for this study. A
total of 155 respondents were chosen as a sample size for the study. Their responses were used for A
study on Saving Habits and Investment Preference among different income groups in Chennai.
The presentation of data analysis and interpretation is based on the objectives framed for the study:
1. Percentage Analysis
2. Chi-square test
3. Correlation
4.1 PERCENTAGE ANALYSIS:
Percentage analysis refers to a special kind of rate, percentage are used in making comparisons
between two or more series of data. A percentage is used to determine the relationship between the
series. Percentage analysis comes in handy for studying a difference compared with a benchmark or
initial value. The researcher has used percentage analysis to represent data and to show the
comparison between some variables like gender, age, frequency of buying, influence of respondents,
and factors preferred by respondents while buying.
4.1.1 GENDER OF RESPONDENTS:
Table – 4.1 Shows the Gender Respondents
Gender Frequency Percent
Female 42 27.1
male 113 72.9
Total 155 100.0
Source of data: Primary data (questionnaire)
Figure – 4.1 Shows the Gender wise Classification of Respondent
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INTERPRETATION:
In the data collection done with regard to “A study on Saving Habits and Investment Preference
among different income groups in Chennai”. We have identified that 73.4% of them are male
respondents and remaining 26.6% are female respondents. We are interested to identify the social
responsibility based on the gender and henceforth we like to consider the analysis towards the No of
respondents with regard male & female.
4.1.2 AGE OF RESPONDENTS:
Table – 4.2 Shows the Age Respondents
Age Frequency Percentage
Less than 20 28 18.1
20 – 40 81 52.3
40 – 60 29 18.7
60 and above 17 11
Total 155 100.0
Source of data: Primary data (questionnaire)
Figure – 4.2 Shows the Age wise Classification of Respondent
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INTERPRETATION:
In order to identify the age correspondence to the respondents. We prefer to know the % of
respondent’s age groups. We note that 18.1% percent of the respondents belong to the age group less
than less than 20, 52.3% percent of them were 20 - 40 years and 18.7% percent belong to the age
group 40 - 60 years, only 11% percent of the respondents were above 60 years. It is inferred that,
(52.3%) Majority of the respondents belong to the age group of 20 - 40 years.
4.1.3 EDUCATION LEVEL OF RESPONDENTS:
Table – 4.3 Shows the Education level Respondents
Education level Frequency Percent
Diploma 17 11.0
Graduate 78 50.3
Post Graduate 32 20.6
School Level Education 28 18.1
Total 155 100.0
Source of data: Primary data (questionnaire)
Figure – 4.3 Shows the Education level wise Classification of Respondent
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INTERPRETATION:
In order to identify the age correspondence to the respondents. We note that 50.3% are
Undergraduates with greater response as they are the most researching generations of up today life
and young age tends more searching that very young and medium level of category of people.
4.1.4 INVESTOR CATEGORY LEVEL OF RESPONDENTS:
Table – 4.4 Shows the investor level Respondents
Investor Category Frequency Percent
Government Employee 18 11.6
Private Sector Employee 50 32.3
Public Sector Employee 23 14.8
Retired 10 6.5
Self Employed 54 34.8
Total 155 100.0
Source of data: Primary data (questionnaire
Figure – 4.4 Shows the investor level wise Classification of Respondent
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INTERPRETATION:
The table shows us that among investors, self-employed and retired individuals stand out in their
investment preferences. Around 34.8% of respondents are self-employed, while 6.5% are retired.
This suggests that self-employed people tend to take a hands-on approach to managing their
finances, possibly driven by a desire for independence and a keen interest in growing their wealth.
Retired individuals, though fewer in number, still show active engagement in investments, likely
aiming to maintain and increase their wealth during retirement. However, compared to the self-
employed, retirees seem to adopt a more cautious approach, emphasizing stability and income
generation in their investment decisions.
4.1.5 ANNUAL INCOME LEVEL OF RESPONDENTS:
Table – 4.5 Shows the income level Respondents
Annual Income Frequency Percent
Less than 2lakh 56 36.1
2 – 4lakh 30 19.4
4 – 6lakh 31 20.0
6 – 8lakh 21 13.5
8lakh and above 17 11.0
Total 155 100.0
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Source of data: Primary data (questionnaire)
Figure – 4.5 Shows the income level wise Classification of Respondent
INTERPRETATION:
The data in the table shows that a significant number of people earn less than 2 lakhs annually,
indicating they likely belong to lower to middle-income groups and might face financial challenges.
This suggests a need for financial services that are both accessible and affordable for this segment of
the population. On the other hand, 11% of respondents earn 8 lakhs or more annually, indicating a
wealthier subset with greater potential for savings and investment. Financial institutions could
consider offering premium services tailored to the diverse financial goals of this higher-income
group.
4.1.6 ANNUAL SAVINGS LEVEL OF RESPONDENTS:
Table – 4.6 Shows the annual savings level Respondents
Annual Savings Frequency Percent
Less than 25000 71 45.8
25000 – 50000 32 20.6
50000 – 75000 32 20.6
Above 75000 20 12.9
Total 155 100.0
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Source of data: Primary data (questionnaire)
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4.6 Shows the annual saving wise Classification of Respondent
INTERPRETATION:
From the table we can see that the majority of respondents with annual savings below 25,000
may be facing financial constraints that limit their capacity for significant savings. This
group may include individuals with lower incomes or those managing various financial
obligations. Financial institutions and policy-makers should pay attention to this substantial
segment to design accessible and tailored financial solutions that can help individuals in this
category build and manage their savings effectively.
4.1.7 PERCENTAGE OF INVESTMENT FROM SAVINGS LEVEL OF THE
RESPONDENTS:
Table – 4.7 Shows the percentage of investment from savings level Respondents
% of Investment form Frequency Percent
Savings
Up to 20% 57 36.8
Up to 40% 32 20.6
Up to 60% 31 20.0
Up to 80% 20 12.9
100% 15 9.6
Total 155 100.0
Source of data: Primary data (questionnaire)
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Figure – 4.7 Shows the percentage of investment from savings wise Classification of
Respondent
INTERPRETATION:
The fact that a good chunk, about 36.8%, of people are willing to put aside up to 20% of
their savings for investments shows they're okay with taking risks and understand the
importance of growing their money through investing. These folks might be actively looking
for ways to make their savings grow by trying out different investment options. Banks and
financial advisor could focus on this group by offering them products and services that
match their risk tolerance and financial goals. On the other hand, the 9% of people who only
invest up to 10% of their savings might prefer playing it safe or keeping their money secure.
They might prioritize keeping their money safe over trying to make big gains. Financial
institutions could cater to these folks by offering investment choices that suit their cautious
approach, like low-risk mutual funds, bonds, or other strategies to keep their money safe.
4.1.8 REASON FOR SAVING LEVEL OF RESPONDENTS:
Table – 4.8 Shows the reason for saving level Respondents
Reason for Savings Frequency Percent
Children’s Education 34 21.9
Generating additional 36 23.2
income
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Medical Emergencies 17 11.0
Purchase of Assets 36 23.2
Retirement Saving plan 21 13.5
Tax Saving 11 7.1
Total 155 100.0
Source of data: Primary data (questionnaire)
4.8 Shows the percentage of investment from savings wise Classification of Respondent
INTERPRETATION:
The significant percentage (23.2%) of respondents focused on generating additional income
through savings implies an emphasis on wealth creation and financial growth. This group
may be actively seeking opportunities to invest their savings in income-generating assets
such as stocks, real estate, or other investment instruments. Their motivation suggests a
proactive approach to financial planning and a desire to enhance their overall financial well-
being through strategic saving and investment. On the other hand, the 7% of respondents
citing tax saving as a reason for their savings levels indicates a financial strategy oriented
toward optimizing tax benefits. This group may be utilizing various tax saving instruments,
such as tax-efficient investment vehicles or retirement accounts, to minimize their tax
liabilities. Their focus on tax-related financial decisions suggests a thoughtful and strategic
approach to wealth management, aligning their savings goals with tax planning.
4.1.9 TIME HORIZON OF INVESTMENT LEVEL OF RESPONDENTS:
Table – 4.9 Shows the time horizon of investment level Respondents
Time Horizon of Frequency Percent
Investment
36
Long term 42 27.1
Medium term 59 38.1
Short term 54 34.8
Total 155 100.0
Source of data: Primary data (questionnaire)
Figure – 4.9 Shows the time horizon of investment wise Classification of Respondent
INTERPRETATION:
The substantial percentage (38%) of respondents with a medium-term investment horizon
suggests a significant portion of the surveyed population may be focused on achieving
financial goals within a relatively shorter time frame. This group may be inclined towards
investments with moderate risk and potential for quicker returns, such as certain stocks,
mutual funds, or other financial instruments with a shorter maturity period. Financial
institutions and advisers can cater to this segment by offering investment products and
advice that align with their medium-term objectives. On the other hand, the 27% of
respondents expressing a preference for a long-term investment horizon indicates a
substantial proportion of individuals with a more patient and strategic approach to wealth
building. This group may be interested in investments with a longer time horizon, such as
retirement accounts, long-term bonds, or diversified stock portfolios. Financial institutions
may target this segment with products and services that emphasize the benefits of long-term,
compounding growth.
4.1.10 RISK TAKING ATTITUDE TOWARDS INVESTMENT LEVEL OF THE
RESPONDENTS:
Table – 4.10 Shows the risk talking attitude towards investment level Respondents
37
Risk taking Attitude Frequency Percent
High risk with High Profit 38 24.5
Low risk with Low profit 35 22.6
Medium risk with Medium 58 37.4
Profit
No Risk 24 15.5
Total 155 100.0
Source of data: Primary data (questionnaire)
4.10 Shows the risk talking attitude towards investment wise Classification of Respondent
INTERPRETATION:
The substantial percentage (36.8%) of respondents with a preference for medium risk and
medium profit suggests a significant portion of the surveyed population is willing to take on
a balanced level of risk in their investment endeavours. This group may be seeking a
combination of potential returns and risk mitigation, indicating a moderate risk tolerance.
Financial institutions and advisers can tailor their recommendations and products to cater to
the preferences of these investors, offering diversified portfolios or investment options that
align with a moderate risk appetite. Conversely, the 15.5% of respondents expressing a no-
risk preference highlight a conservative approach to investment. Individuals in this group
priorities capital preservation and stability over the potential for higher returns. They may be
inclined towards safer investment options, such as fixed-income securities, bonds, or other
low-risk instruments. Financial institutions can target this segment by providing investment
products and strategies that focus on capital protection and reduced volatility.
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4.2 CHI – SQUARE ANALYSIS
A chi-square test is a statistical test used to compare observed results with expected results.
The purpose of this test is to determine if a difference between observed data and expected
data is due to chance, or if it is due to a relationship between the variables you are studying.
This test (as a nonparametric test) is based on frequencies and not on parameters like mean
and standard deviation. The test is used to test the hypothesis.
4.2.1 INVESTORS CATEGORY AND REASON FOR SAVING
H0: There is no significant relationship between the Investors category and Reason for Savings
of the respondents.
H1: There is significant relationship between the Investors category and Reason for Savings of
the respondents.
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INTERPRETATION:
In the chi-square analysis conducted between the investor category and the reason for
savings, the Pearson chi-square value of 25.991 has been obtained with a significance level
of 0.166. The chi-square test assesses whether there is a statistically significant association
or independence between two categorical variables. In this context, the Pearson chi-square
value of 25.991 suggests that there is a moderate degree of association between the
investor category and the reason for savings among the respondents. However, the
associated p-value of 0.166 exceeds the conventional significance threshold of 0.05. The
higher p-value indicates that the observed association may be due to random chance rather
than a true relationship between the variables.
4.2.1 ANNUAL SAVINGS AND PERCENTAGE OF INVESTMENT FROM SAVINGS
H0: There is no significant relationship between the Annual savings and Percentage of
investment from savings of the respondents
H1: There is significant relationship between the Annual savings and Percentage of investment
from savings of the respondents
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INTERPRETATION:
The chi-square analysis conducted between annual savings and the percentage of
investment from savings yielded a substantial Pearson chi-square value of 221.519, and the
associated significance level is less than 0.01 (typically expressed as "<0.01"). The chi-
square test assesses whether there is a statistically significant association or independence
between two categorical variables. In this context, the large chi-square value and the
significance level below 0.01 strongly indicate a significant association between annual
savings and the percentage of investment from savings among the respondents. The
extremely low p-value (below 0.01) suggests that the observed relationship is highly
unlikely to be due to random chance alone. Therefore, based on the results of this chi-
square analysis, we have robust evidence to reject the null hypothesis, indicating that there
is a statistically significant association between annual savings and the percentage of
investment from savings within the surveyed population. This implies that the distribution
of the percentage of investment from savings varies significantly based on different levels
of annual savings.
4.3 CORRELATION ANALYSIS
Correlation is a statistical term describing the degree to which two variables move in
coordination with one another. If the two variables move in the same direction, then those
variables are said to have a positive correlation. If they move in opposite directions, then
they have a negative correlation. Correlation Analysis is statistical method that is used to
discover if there is a relationship between two variables/datasets, and how strong that
relationship may be. In terms of market research this means that, correlation analysis is
used to analyses quantitative data gathered from research methods such as surveys and
polls, to identify whether there is any significant connections, patterns, or trends between
the two.
4.3.1 SOURCE OF INVESTMENT INFORMATION & VARIOUS INVESTMENT
OPTION THAT YOU AWARE
H0: There is no association between Source of investment information and various investment
option that you are aware.
H1: There is an association between Source of investment information and various investment
option that you are aware.
Correlations
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Source
of
Investm Insura Fixed
ent nce Deposit Debt
Informa Polici Mutual Shares/ Gold/ in Real Liquid Securit
tion es Funds Bonds Silver Banks Estate Funds y
Source of Pearson 1 -.028 -.056 -.036 .001 -.051 -.056 -.020 .013
Investment Correlation
Information Sig. (2- .731 .488 .654 .993 .525 .487 .809 .869
tailed)
N 155 155 155 154 154 155 155 154 155
** ** ** ** *
Insurance Pearson -.028 1 .430 .568 .485 .548 .156 .190 .143
Policies Correlation
Sig. (2- .731 .000 .000 .000 .000 .052 .018 .076
tailed)
N 155 155 155 154 154 155 155 154 155
Mutual Funds Pearson -.056 .430** 1 .532** .320** .248** .364** .242** .341**
Correlation
Sig. (2- .488 .000 .000 .000 .002 .000 .003 .000
tailed)
N 155 155 155 154 154 155 155 154 155
** ** ** ** ** **
Shares/Bonds Pearson -.036 .568 .532 1 .443 .484 .286 .449 .214**
Correlation
Sig. (2- .654 .000 .000 .000 .000 .000 .000 .008
tailed)
N 154 154 154 154 153 154 154 153 154
** ** ** ** ** **
Gold/Silver Pearson .001 .485 .320 .443 1 .490 .300 .303 .328**
Correlation
Sig. (2- .993 .000 .000 .000 .000 .000 .000 .000
tailed)
N 154 154 154 153 154 154 154 153 154
** ** ** ** ** **
Fixed Deposit Pearson -.051 .548 .248 .484 .490 1 .227 .289 .214**
in Banks Correlation
Sig. (2- .525 .000 .002 .000 .000 .004 .000 .007
tailed)
N 155 155 155 154 154 155 155 154 155
Real Estate Pearson -.056 .156 .364** .286** .300** .227** 1 .407** .612**
Correlation
Sig. (2- .487 .052 .000 .000 .000 .004 .000 .000
tailed)
N 155 155 155 154 154 155 155 154 155
* ** ** ** ** **
Liquid Funds Pearson -.020 .190 .242 .449 .303 .289 .407 1 .471**
Correlation
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Sig. (2- .809 .018 .003 .000 .000 .000 .000 .000
tailed)
N 154 154 154 153 153 154 154 154 154
** ** ** ** ** **
Debt Security Pearson .013 .143 .341 .214 .328 .214 .612 .471 1
Correlation
Sig. (2- .869 .076 .000 .008 .000 .007 .000 .000
tailed)
N 155 155 155 154 154 155 155 154 155
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
INTERPRETATION:
The correlation analysis between investment awareness and information sources indicates
generally weak associations, with none reaching statistical significance at the 0.05 level.
Notably, reliance on specific information sources shows a slight negative correlation with
awareness of real estate options, suggesting potential limitations in awareness for those who
heavily depend on particular sources. However, there are moderate positive correlations among
awareness of various investment options, such as mutual funds, shares/bonds, gold/silver, fixed
deposits, real estate, and liquid funds, all significant at the 0.01 level. The strongest positive
correlation is between awareness of shares/bonds and mutual funds. Conversely, awareness of
insurance policies exhibits weaker connections with other options. Additionally, awareness of
debt securities shows a negative correlation with other options, albeit not strongly, significant at
the 0.05 level. Furthermore, real estate awareness is negatively correlated with awareness of
fixed deposits and liquid funds, both significant at the 0.01 level.
4.3.2 ANNUAL INCOME & FACTORS PROMOTING SAVINGS AND INVESTMENT
H0: There is no association between Annual Income and Factors Promoting Savings and
Investments.
H1: There is an association between Annual Income and Factors Promoting Savings and
Investments.
Correlations
[Link]
ual
Inco Financial State Government Interest Long - Term
me Condition Economy Policies Rates benefits
[Link] Pearson 1 .218** .048 .084 .099 .062
Income Correlation
Sig. (2-tailed) .006 .555 .297 .222 .444
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N 155 155 155 155 155 155
** ** ** **
Financial Pearson .218 1 .325 .362 .453 .563**
Condition Correlation
Sig. (2-tailed) .006 .000 .000 .000 .000
N 155 155 155 155 155 155
** ** **
State Economy Pearson .048 .325 1 .327 .273 .331**
Correlation
Sig. (2-tailed) .555 .000 .000 .001 .000
N 155 155 155 155 155 155
** ** **
Government Pearson .084 .362 .327 1 .351 .242**
Policies Correlation
Sig. (2-tailed) .297 .000 .000 .000 .002
N 155 155 155 155 155 155
Interest Rates Pearson .099 .453** .273** .351** 1 .338**
Correlation
Sig. (2-tailed) .222 .000 .001 .000 .000
N 155 155 155 155 155 155
** ** ** **
Long - Term Pearson .062 .563 .331 .242 .338 1
benefits Correlation
Sig. (2-tailed) .444 .000 .000 .002 .000
N 155 155 155 155 155 155
**. Correlation is significant at the 0.01 level (2-tailed).
INTERPRETATION:
The correlation analysis reveals several significant relationships between annual income and
factors influencing savings and investment decisions. A positive correlation is evident between
annual income and factors related to financial condition (r = 0.182, p = 0.012), state economy (r
= 0.245, p < 0.001), government policies (r = 0.265, p < 0.001), interest rates (r = 0.390, p <
0.001), and long-term benefits (r = 0.541, p < 0.001). This indicates that individuals with higher
annual incomes tend to perceive their financial condition, state economy, government policies,
interest rates, and long-term benefits more favourably, influencing their savings and investment
decisions accordingly.
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