Impact of Investors' Lifestyle on Their Investment Pattern: An Empirical Study

In the financial services industry, an acceptance of demographics as the total basis of marketing strategy means an acceptance of the fact that affluent individuals each earning the same income and living in similar homes in the same area have the same financial needs. The individuals may be equal i...

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Bibliographic Details
Published in:The ICFAI journal of behavioral finance 2009-06, Vol.6 (2), p.28
Main Authors: Nagpal, Sushant, Bodla, B S
Format: Article
Language:English
Subjects:
Attitudes
Cluster analysis
Decision making
Demographics
Expected utility
Financial planning
Financial services
Impact analysis
Information sources
Insurance policies
Investments
Investors
Lifestyles
Market strategy
Marketing
Portfolio management
Questionnaires
Stock exchanges
Studies
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Summary:In the financial services industry, an acceptance of demographics as the total basis of marketing strategy means an acceptance of the fact that affluent individuals each earning the same income and living in similar homes in the same area have the same financial needs. The individuals may be equal in all aspects, may even be living next door, but their financial planning needs are very different. In this context, demographics alone no longer suffice as the basis of segmentation of individual investors. It is by using lifestyles or psychographics along with demographics that synergism between investors can be generated. In fact, an investor-driven marketing strategy necessitates an understanding of the demographic, socioeconomic and lifestyle characteristics of the investors. The present study is an attempt to bring out lifestyle characteristics of the respondents and their influence on investment preferences. The study concludes that investors' lifestyle predominantly decides the risk taking capacity of investors. [PUBLICATION ABSTRACT]
ISSN:0972-9089