Personality traits, money attitudes and consumer decision‐making styles as predictors of investment products choice in South Africa

Abstract

AbstractThis study examines how personality traits and money attitudes influence consumers' decision‐making styles when purchasing investment products in South Africa. A sample of 269 South Africans completed the research questionnaire, which assessed their extraversion, conscientiousness, openness, money power/prestige, money retention/time, money quality, info‐mising, extending, and tax‐free investment purchase decision. Also, confirmatory factor analysis and structural equation modelling approaches were used to analyze the survey data.The results suggest that personality traits and money attitudes significantly impact consumer decision‐making regarding tax‐free investment products. However, the relationships between extraversion and money power/prestige and between info‐mising decision styles and tax‐tree investment purchase decisions were found to be negative. Cluster analysis revealed three distinct segments based on the characteristics of respondents and their drive for investment: strong conscientiousness investors, status‐driven investors, and introverted investors. Marketing professionals and investment firms can use the study findings on consumer traits and money attitudes to improve marketing effectiveness in an organisation. Practically, extensive information processing has a fundamental bearing on investment decision‐making in emerging markets. Extraversion and conscientiousness personality traits and money attitudes must be taken into consideration by investment products marketers and practitioners in marketing practice.