Enhancing Consumer Empowerment: Insights into the Role of Rationality When Making Financial Investment Decisions

Abhishek Sharma (), Chandana Hewege and Chamila Perera
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Abhishek Sharma: Institute of Health & Management, Level 2/187 Boundary Rd, North Melbourne, VIC 3051, Australia
Chandana Hewege: School of Business, Law & Entrepreneurship, Swinburne University of Technology, Melbourne, VIC 3122, Australia
Chamila Perera: School of Business, Law & Entrepreneurship, Swinburne University of Technology, Melbourne, VIC 3122, Australia

JRFM, 2025, vol. 18, issue 2, 1-22

Abstract: With an avalanche of market manipulations and unethical tactics in the Australian financial industry, the empowerment levels of female Australian consumers when making financial investment decisions are highly questionable. Through the theoretical lens of a utilitarian perspective, financial investment decisions are often built on the pillars of trust, security, and assurance, which allow consumers to make decisions rationally and gain empowerment when making these decisions. However, due to the widespread manipulations prevailing in Australian financial markets, the role of rationality and its influence on consumer empowerment remain understudied. Based on this context, this paper uncovers the association between how each stage of rational decision-making (RDM) (i.e., demand identification, information search, and the evaluation of alternatives) influences the consumer power (i.e., consumer resistance and consumer influence) of female Australian consumers when making financial investment decisions. In doing so, this study employs a quantitative approach, whereby the proposed conceptual framework is tested among 357 female Australian consumers to understand their decision-making power in the presence of heightened situations of market manipulation in the financial industry. The results show that information search has a significant positive relationship with consumer influence and consumer resistance when making financial investment decisions. Additionally, the findings suggest that female Australian consumers should not only rely on individual-based sources of power but also have exposure to network-based sources of power to gain empowerment when making financial investment decisions. Lastly, it is suggested that government bodies, financial institutions, and regulatory authorities should not only implement financial literacy programs but also promote gender diversity across organisations to encourage women’s empowerment (i.e., Goal 5 (SDGs)—Achieve Gender Equality and Empower all Women and Girls).

Keywords: rational decision-making; consumer empowerment; rationality; financial investment decisions; consumer power (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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