Attitudes and Behaviour in Everyday Finance: Evidence from Chandigarh

In an increasingly competitive marketplace, financial institutions need to emphasize customer relationships and the retention of existing customers that require an in-depth understanding of their attitudes and behaviours (Harrison and Ansell, 2002). Market segmentation relies, in the financial industry, largely on socio-demographic information to define segments for specific services (Hanison, 2000). Therefore this study highlights the selected aspects of financial affairs to gain insights towards significant investor's behavioural pattems. For this samples of 184 respondents from Chandigarh have been analyzed using factor and cluster analysis. The factor analysis highlight four major factors i.e. Interest in Financial Issues, Free Spending, Financial decisions and Annoyance feeling if unexpected outcome happens, and Rationality & Anxiousness. The results clearly segment the sample among three clusters that are conservative, moderate and aggressive spenders.