Indian Journal of Marketing

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Relevance of Financial Service Advertisements in Investment Decisions and Purchase of Financial Products : Evidence from the Indian Insurance Sector


Affiliations
1 Assistant Professor, Faculty of Business, Sohar University, Sohar, Oman
2 Assistant Professor, Economics and Business Studies Department, Mazoon College, Al Seeb, Oman
3 Independent Researcher, Indian Institute of Technology (ISM), Dhanbad, Jharkhand - 826 004, India
     

   Subscribe/Renew Journal


This study investigated the impact of investment decision-making on financial product purchases and explored the mediating role of financial services advertisements in India’s insurance sector. Data collected from 447 responses were analyzed using SPSS and AMOS. SEM was conducted to testify the hypotheses. The results identified that the entertainment variable played a vital role in determining financial product purchases and investment decision-making. The results also indicated that financial services advertising, perceived reality, and usefulness positively and significantly mediated between financial product purchases and investment decision making. The study provided valuable clues for the investment and selection of financial products. The insights acquired from this study may have significant consequences for corporate promotional behavior, investor relations systems, and coordinated public engagement activities.

Keywords

Investment Decisions, Financial Product Purchases, Perceived Reality, Usefulness, Entertainment, Financial Services Advertising.

Paper Submission Date : May 10, 2020 ; Paper Sent Back for Revision : August 20, 2020 ; Paper Acceptance Date : December 21, 2020 ; Paper Published Online : September 20, 2021.

User
Subscription Login to verify subscription
Notifications
Font Size

  • Agnihotri, A., & Bhattacharya, S. (2018). The market value of celebrity endorsement: Evidence from India reveals factors that can influence stock-market returns. Journal of Advertising Research, 58(1), 65–74. https://doi.org/10.2501/JAR-2016-021

  • Alimamy, S. (2018). The effect of co-creation through exposure to augmented reality on customer perceived risk, perceived trust and purchase intent. University of Otago. https://doi.org/http://hdl.handle.net/10523/8422

  • Amir, M., & Chaudhry, N. I. (2019). Linking environmental strategy to firm performance: A sequential mediation model via environmental management accounting and top management commitment. Pakistan Journal of Commerce and Social Sciences, 13(4), 849–867. https://doi.org/http://hdl.handle.net/10419/214255

  • Battistich, V., Schaps, E., Watson, M., & Solomon, D. (1996). Prevention effects of the child development project : Early findings from an ongoing multisite demonstration trivial. Journal of Adolescent Research, 11(1), 12–35. https://doi.org/10.1177/0743554896111003

  • Candraningrat, I. R., Salim, U., Indrawati, N. K., & Ratnawati, K. (2018). Influence of framing information and disposition effect in decision of investment : Experimental study on investor behavior at Indonesia Stock Exchange Representative on Denpasar, Bali. International Review of Management and Marketing, 8(3), 59–68. https://www.econjournals.com/index.php/irmm/article/view/6383

  • Chatterjee, S., & Kumar Kar, A. (2020). Why do small and medium enterprises use social media marketing and what is the impact : Empirical insights from India. International Journal of Information Management, 53, 102103. https://doi.org/10.1016/j.ijinfomgt.2020.102103

  • Cole, S. A., Gine, X., & Vickery, J. I. (2014). How does risk management influence production decisions ? Evidence from a field experiment. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2507978

  • Dogra, P., & Sharma, R. R. (2019). Modelling the effects of financial services advertising on financial product purchase : An empirical validation. Vision : The Journal of Business Perspective, 23(4), 418–431. https://doi.org/10.1177/0972262919850920

  • Dom, S. M., Ramli, H. S., Chin, A. L., & Fern, T. T. (2016). Determinants of the effectiveness of celebrity endorsement in advertisement. The Journal of Developing Areas, 50(5), 525–535. https://doi.org/10.1353/jda.2016.0033

  • Egan, M., Matvos, G., & Seru, A. (2019). The market for financial adviser misconduct. Journal of Political Economy, 127(1), 233–295. https://doi.org/10.1086/700735

  • Foxall, G. R., & Pallister, J. G. (1998). Measuring purchase decision involvement for financial services : Comparison of the Zaichkowsky and Mittal scales. International Journal of Bank Marketing, 16(5), 180–194. https://doi.org/10.1108/02652329810228181

  • Gill, S., Kashif Khurshid, M., Mahmood, S., & Ali, A. (2018). Factors effecting investment decision making behavior : The mediating role of information searches. European Online Journal of Natural and Social Sciences, 7(4), 758–767. http://european-science.com/eojnss/article/view/5530

  • Gupta, R., & Mathad, K. (2017). A study of factors affecting consumer behavioural intentions towards adoption of gamification. Indian Journal of Marketing, 47(7), 7–19. https://doi.org/10.17010/ijom/2017/v47/i7/116471

  • Haddad, C., & Hornuf, L. (2019). The emergence of the global fintech market : Economic and technological determinants. Small Business Economics, 53, 81–105. https://doi.org/10.1007/s11187-018-9991-x

  • Hoque, M. E., Hashim, N. M., & Azmi, M. H. (2018). Moderating effects of marketing communicationand financial consideration on customer attitude and intention to purchase Islamic banking products: A conceptual framework. Journal of Islamic Marketing, 9(4), 799–822. https://doi.org/10.1108/JIMA-01-2017-0005

  • Hussain, S., Guangju, W., Jafar, R. M., Ilyas, Z., Mustafa, G., & Jianzhou, Y. (2018). Consumers’ online information adoption behavior : Motives and antecedents of electronic word of mouth communications. Computers in Human Behavior, 80, 22–32. https://doi.org/10.1016/j.chb.2017.09.019

  • Javed, S. (2017). Unified theory of acceptance and use of technology (UTAUT) model-mobile banking. Journal of Internet Banking and Commerce, 22(3), 1–20.

  • Javed, S. (2018). Does organisation behaviour affect performance of auditing firms ? International Journal of Engineering Technologies and Management Research, 5(1), 90–98. https://doi.org/10.5281/zenodo.1171842

  • Javed, S., Malik, A., & Alharbi, M. M. H. (2020). The relevance of leadership styles and Islamic work ethics in managerial effectiveness. PSU Research Review, 4(3), 189–207. https://doi.org/10.1108/prr-03-2019-0007

  • Johnson, J., & Thomas, T. (2018). What is beautiful is good: An evaluation of effectiveness of attractiveness in celebrity endorsements. Indian Journal of Marketing, 48(8), 24–36. https://doi.org/10.17010/ijom/2018/v48/i8/130538

  • Katsikeas, C. S., Morgan, N. A., Leonidou, L. C., & Hult, G. T. (2015). Assessing performance outcomes in marketing. Journal of Marketing, 80(2), 1–20. https://doi.org/10.1509%2Fjm.15.0287

  • Kaur, S., & Garg, A. (2016). Celebrity endorsement and buying behavior : A study of Panjab University students. International Journal of Research - Granthaalayah, 4(11), 122–136. https://doi.org/10.5281/zenodo.206106

  • Khan, A., Baseer, S., & Javed, S. (2017). Perception of students on usage of mobile data by K-mean clustering algorithm. International Journal of Advanced and Applied Sciences, 4(2), 17–21. https://doi.org/10.21833/ijaas.2017.02.003

  • Khan, A., & Javed, S. (2016). Determining factors responsible in shifting consumption of mobile data (2G to 3G). International Journal of Computer Applications, 155(14), 30–33. https://doi.org/10.5120/ijca2016912452

  • Kristensen, K., Martensen, A., & Gronholdt, L. (1999). Measuring the impact of buying behaviour on customer satisfaction. Total Quality Management, 10(4–5), 602–614. https://doi.org/10.1080/0954412997587

  • Meier, J., Findley, F., & Stewart, D. W. (2018). Applying the MASB brand investment & valuation model. https://themasb.org/wp-content/uploads/2018/05/MWP_ApplyingBIVModel_MeierFindleyStewart2018.pdf

  • Mogaji, E. (2016). This advert makes me cry : Disclosure of emotional response to advertisement on Facebook. Cogent Business & Management, 3(1), 1–19. https://doi.org/10.1080/23311975.2016.1177906

  • Muijs, D. (2010). Doing quantitative research in education with SPSS. Sage.

  • Nandan, T., & Saurabh, K. (2016). Big-five personality traits, financial risk attitude and investment intentions : Study on Generation Y. International Journal ofBusiness Forecasting and Marketing Intelligence, 2(2), 128. https://doi.org/10.1504/ijbfmi.2016.078154

  • Panigrahi, S. K., Azizan, N. A., & Khan, M. W. (2018). Investigating the empirical relationship between service quality, trust, satisfaction, and intention of customers purchasing life insurance products. Indian Journal of Marketing, 48(1), 28–46. https://doi.org/10.17010/ijom/2018/v48/i1/120734

  • Pradeepa, S., & Ananth, A. A. (2017). A study on factors influencing of women policyholder’s investment decision towards Life Insurance Corporation of India policies in Chennai. Singaporean Journal of Business Economics and Management Studies, 5(7), 1–7. https://doi.org/10.12816/0037245

  • Prasad, S., & Sen, S. (2018). Role of conviction in the impact of electronic word of mouth on purchase intention for financial products and services. Indian Journal of Marketing, 48(1), 47–60. https://doi.org/10.17010/ijom/2018/v48/i1/120735

  • Roy, S. (2018). Meaning transfer in celebrity endorsements: An explanation using metaphors. Journal of Marketing Communications, 24(8), 843–862. https://doi.org/10.1080/13527266.2016.1197294

  • Smyth, H., & Lecoeuvre, L. (2015). Differences in decision-making criteria towards the return on marketing investment: A project business perspective. International Journal of Project Management, 33(1), 29–40. https://doi.org/10.1016/j.ijproman.2014.03.005

  • Sugandini, D., Purwoko, Pambudi, A., Resmi, S., Reniati, Muafi, & Kusumawati, R. A. (2018). The role of uncertainty, perceived ease of use, and perceived usefulness towards the technology adoption. International Journal of Civil Engineering and Technology, 9(4), 660–669. http://www.iaeme.com/ijciet/IJCIET_Paper.asp?sno=11005

  • Ungeheuer, M., & Weber, M. (2017). The perception of dependence, investment decisions, and stock prices. The Journal of Finance, 76(2), 1–2. https://doi.org/10.1111/jofi.12993

  • Yang, W. (2018). Star power : The evolution of celebrity endorsement research. International Journal of Contemporary Hospitality Management, 30(1), 389–415. https://doi.org/10.1108/IJCHM-09-2016-0543


Abstract Views: 218

PDF Views: 1




  • Relevance of Financial Service Advertisements in Investment Decisions and Purchase of Financial Products : Evidence from the Indian Insurance Sector

Abstract Views: 218  |  PDF Views: 1

Authors

Sarfaraz Javed
Assistant Professor, Faculty of Business, Sohar University, Sohar, Oman
Uvesh Husain
Assistant Professor, Economics and Business Studies Department, Mazoon College, Al Seeb, Oman
Namrata Pathak
Independent Researcher, Indian Institute of Technology (ISM), Dhanbad, Jharkhand - 826 004, India

Abstract


This study investigated the impact of investment decision-making on financial product purchases and explored the mediating role of financial services advertisements in India’s insurance sector. Data collected from 447 responses were analyzed using SPSS and AMOS. SEM was conducted to testify the hypotheses. The results identified that the entertainment variable played a vital role in determining financial product purchases and investment decision-making. The results also indicated that financial services advertising, perceived reality, and usefulness positively and significantly mediated between financial product purchases and investment decision making. The study provided valuable clues for the investment and selection of financial products. The insights acquired from this study may have significant consequences for corporate promotional behavior, investor relations systems, and coordinated public engagement activities.

Keywords


Investment Decisions, Financial Product Purchases, Perceived Reality, Usefulness, Entertainment, Financial Services Advertising.

Paper Submission Date : May 10, 2020 ; Paper Sent Back for Revision : August 20, 2020 ; Paper Acceptance Date : December 21, 2020 ; Paper Published Online : September 20, 2021.


References





DOI: https://doi.org/10.17010/ijom%2F2021%2Fv51%2Fi9%2F166163