Investors’ Purchasing Behaviour via a Behavioural Finance Approach

Abstract

According to the Efficient Markets Hypothesis, investors have complete knowledge regarding the financialmarkets. As a result, they behave rationally. However, investors are affected by internal and external factorswhen making decisions. Therefore, the objective of the study examines investors’ profiles and to distinguishdifferent demographic groups in terms of their perspective towards stock markets, other financial markets andsocio – cultural factors. The other objective of the study is to gauge the importance scale of the factors that driveinvestors purchase behaviour in the decision-making process. The questions of which social dynamics determineprices in markets which factors investors take into account and which information resources they use whenmaking decisions have not been adequately investigated in the Turkish context, Kocaeli, an industrial city, waspreferred as a sampling area. ANOVA and X2 were used to test variables. As a conclusion, investors are notalways rationally, they behave with their feelings in decision making process of investment.