A comprehensive model of information search and processing behaviour of mutual fund investors

Sanjay Kumar Mishra and Manoj Kumar
Additional contact information
Sanjay Kumar Mishra: School of Business, Shri Mata Vaishno Devi University
Manoj Kumar: School of Business, Shri Mata Vaishno Devi University

Journal of Financial Services Marketing, 2012, vol. 17, issue 1, No 4, 49 pages

Abstract: Abstract Understanding the investment behaviour, specifically information search and processing behaviour of mutual fund (MF) investors is a key to the effective marketing of MF schemes, and yet we have only limited understanding of it. This study proposes and validates a model of information search and processing of MF investors. The proposed model is arrived at by combining the limited insights from the existing studies dispersed across multiple domains of literature, viz., Traditional Finance, Behavioural Finance and Consumer Behaviour. The model suggests that: (i) MF investors’ subjective knowledge (SK) negatively impacts their perceived purchase risk (PPR); (ii) MF investors’ SK positively impacts their purchase decision involvement (PDI); (iii) PPR negatively impacts their PDI; (iv) PDI positively impacts their depth of information search (DIS) and information processing behaviour (DIP); and (v) DIS positively impacts their DIP. The model is empirically validated through structural equation modelling of data collected from a survey of 268 MF investors. The implications of the model, as are relevant for the MF marketers and the policymakers, are also discussed.

Keywords: investment behaviour; intangibles; mutual fund; knowledge; perceived risk; purchase decision involvement (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1057/fsm.2012.3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jofsma:v:17:y:2012:i:1:d:10.1057_fsm.2012.3

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41264

DOI: 10.1057/fsm.2012.3

Access Statistics for this article

Journal of Financial Services Marketing is currently edited by Tina Harrison

More articles in Journal of Financial Services Marketing from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().