AN EXPLORATORY INQUIRY ON THE DECISION PROCESS OF PONZI SCHEME INVESTOR’S: A QUALITATIVE CASE STUDY APPROACH

This qualitative research investigates the decision process of the Ponzi scheme investor using the Engel-Blackwell-Miniard Model as the underlying theory which guided the design of this study. The investors' decision process was described using a proposed framework that was adapted from the standard EBM procedure. Seven investors from three different Ponzi investment scheme was interviewed using a semistructured, face-to-face interviews technique and the transcript verbatim was interpreted using ATLAS.ti. The data analysis was conducted using the directed content analysis approach. The supporting evidence reveals that the decision process of Ponzi scheme investors fit with the proposed framework which consists of (1) need recognition, (2) information search, (3) alternative evaluation, and (4) act to invest. In conclusion, this study provides an alternative perspective in investigating the decision process of the Ponzi scheme which can be explained using the consumer behavior theory.