Merrill Lynch Co. Survey Analysis The details of this cross tabulation are found in Appendix d on page 36 Postions outside of Merrill Lynch Figure 5 Receive reports from Competitor EFFICACY OF HIGHLIGHTING An overwhelming 70%of the respondents claimed they are very satisfied the highlighting Mr. Constantini does of pertinent information within the reports. Of the several discussions offered, they stated that it helped them to understand what was important to read. This seems to be a ery effective way of maintaining good client relations. Based on the comments by respondents during the surveys, it communicates involvement and interest in each client and his or her investment interests and style
Merrill Lynch& Co Survey Analysis Highlighting Satisfaction Xd not respond Very Satised CONTINUITY OF REPORT The last question on the survey asked the respondent if they felt that wa ne respondent)did should continue sending the equity research reports. An overwhelming 83% felt that he should. 7% felt he should not(discussions revealed that they did not read them), and 3%(one not respond. Through discussions with the clients during the survey, the general consensus was that they were helpful and remindful of what positions they own and how they are performing Figure 7 Preference of Reports 7
Merrill Lynch Co Survey Analysis RECOMMENDATIONS The results of this report are intended to give Mr some direction in determining whether or not to continue distributing the equity research reports. E& R Researchers have come to the conclusion that ithi should continue distribution of the equity research reports. However, additional research by Mr. Constantimhis necessary to determine which clients receive the reports. E& r Researchers recommend direct questioning of every client eligible for an equity research report. Mr co in may choose to do this by speaking with each client directly, having his assistant contact each client and specifically ask if they would like to receive the reports, or sending a letter to each client and asking for a response. As new clients come in r as existing g clients purchase new equities, Mr. nt should ask them what there preference is. We suggest that carefully review the complete breakdown of each questions responses in Appendix D so that he may decide exactly which questions to ask of his clients while conducting the additional research. The breakdown will also give him a clearer idea of the different themes we measured during our research as well as a thorough look at how his clients rate themselves as investors and their knowledge of their portfolios Furthermore, Mr Co n should definitely continue to highlight pertinent information within the reports. The clients overwhelmingly(83%)demonstrated that the highlighting helps them to weed through the information and read what is important It appears that Mr as a strong relationship with his clients. The level of trust by his clients was demonstrative by the amount of people who asked for his input in answering the questions, The clients have demonstrated that the reports help to establish their rapport with and that they trust him and his advice The researchers have come to the conclusion that the clients who pay close attention to the reports should continue to receive them. The statistics show that they scrutinize at least one of the sections if not all four. As this is the case, they want and deserve to continue receiving the eports. However, 7% if the clients(two respondents) didn't feel that it was necessary to send the reports to them as they are not interested in them. Accordingly, as one of the researchers was conducting a survey, the gentleman she was speaking with denied ever receiving a research report. As an employee of Merrill Lynch who routinely mails the surveys, one of the researchers remembers sending the reports to this particular client so often that she can recite his address In another conversation, the respondent confided that sending a report to her is a waste of paper and time as she just throws them away It is an inefficient use of resources to send clients who prefer not to receive them a research report and they should be discontinued. However, those who do enjoy receiving them deserve to n does use the Internet and Merrill Lynch Co. has an own creates an opportunity to distribute the reports to these clients in a more labor and cost effective manner. Mr Gc should become familiar with the online capabilities, communicate them to his clients, and distribute the reports to those "Internet literate"clients online. This not only speaks that he is serving his clients the best way he can, but that he is familiar with the latest technology and has the initiative to apply it to his business practices Although the knowledge of the researchers of the investments community is somewhat limited, we came to the conclusion that Mr. Constantin reevaluate the positions that his clients are in at the present moment. It appears, due to the small number of Priority Clients with one or more 'clients may not be diversified with individual equity positions. Diversity in a portfolio has been highly recommended by many financial planners and seems to be a good investment strategy. Perhaps Mr. ConstantinBshould some reallocation to help his clients diversify with individual equity positions
Merrill Lynch Co Survey Analysis In summary, we recommend Additional research by Mr to determine which clients wish to continue to receive the reports iDi assess on an individual basis whether or not a client would prefer to receive an equity research report on their positions if Merrill Lynch provides one ◆Mr nP absolutely continues highlighting pertinent information for his clients. They overwhelming appreciate it and do not want it to stop contact his "Internet literate" clients and establish ways to deliver the research report to them over the Internet. This would reduce much of the labor-intensive work it takes to produce the reports, save paper and postage, and communicate innovations onMr. constantin眵part evaluate his diversification recommendations and begin helping clients diversify with individual equity positions
Merrill Lynch Co Survey Analysis LIMITATIONS AND PROBLEMS As with any research project, this one had several limitations. Both the researchers and the respondents contributed to the limitations. The researchers are aware of the limitations and will use this experience for future studies. We have highlighted the four most important limitations 1. One very important limitation was the misinterpretation of some of the research questions As a result of this limitation, the total accuracy of the responses was impacted. Many clients were confused as to what was being asked and may not have given the most accurate answer necessary to properly interpret the results. This was a result of the inexperience and naivete of the researchers, and possibly miscommunication on both the researchers and respondents parts For example, many times the respondents were confused about what the report actually As the survey was continued, it became evident that they thought we were asking about monthly statements Another example for this misinterpretation was Question 22. This question asks the respondents to rate themselves as an active, passive, or neither active nor passive investor A few respondents were not sure what neither neither active nor passive meant. The researchers attempted to explain the question and the answer choices without violating any marketing research co des 2. Another limitation was the ability to clearly conduct the survey. Many respondents were older with hearing problems, and an over the phone survey that took approximately ten minutes to administer created somewhat of a challenge. Many times respondents asked the researcher to repeat the question, and other times it became obvious that they never understood the question and were answering what sounded good according to the choices Usually the response was not consistent with prior responses or with the question The researchers attempted to speak slowly and precisely, allowing ample time for contemplation of answers Although the phone survey was the most efficient means to conduct the survey, communication was definitely inhibited. Along the same lines, the researches were in an office setting in which clients and other FC's were trying to conduct business. This further inhibited the communication with the older clients 3. The majority of the Priority Clients were forty years and older. This represents a very diversified account listing. The investing patterns vary dramatically from each age group Perhaps a more specified and structured survey would have more specifically measured the investing patterns correlated to the age groups. Although this may not be considered problem or limitation, it is definitely a factor to be considered 4. Lastly, several of the respondents did not know how to answer the questions. They were so uninvolved with their financial management that they didn t know how to assess their status as an investor. In fact, many clients asked the researcher to ask Mr. Constantini to answer several of the questions pertaining to their passiveness or active status, their amount of investments, and their ability to accept risk. However, this limitation aided in the decisions of our recommendations. It once again demonstrates the high level of trust put into Mr Constantini by his clients Several other problems arose during the administration of the survey. For example, most clients had to be called several times in order to catch them at a good time to answer the questions Some clients were never reached; thus they weren't able to complete a survey. Also, the length