An Analytical Study of Consumer Behaviour in the Financial Services Industry in Eastern Uttar Pradesh in India

In this paper, a model is presented and developed which attempts to articulate and classify consumer behaviour in the purchasing of financial products and services. The theoretical insights generated by this model are then used to examine qualitative research data gained from focus group discussions on consumers' attitudes to their financial providers and their products. Within the traditional structure and operation of the financial services industry, consumers had little choice in terms of selecting financial instruments and delivery channels. The rigid structure of the industry, combined with the operation of cartels, meant that consumers had to accept the form and price of both financial instruments and delivery channels. Switching between financial providers generated little, if any, long-term benefit and forced the consumer to incur disruption and financial cost. Consumers were, therefore, locked into buying patterns and had little incentive to change.