ROLE OF PRODUCT KNOWLEDGE AND PRODUCT INVOLVEMENT IN DETERMINING INVESTMENT INTENTIONS OF INDIVIDUAL INVESTORS IN PAKISTAN

The review of related literature indicates that consumer behaviour constructs such as product knowledge and product involvement can be a potential factor that can help to determine the investment intentions of individual investors. Thus, current research employed a consumer behaviour perspective to determine the investment intentions of individual investors by collecting data from a sample of 548 individuals employed in various companies in Pakistan. The collected data was analysed using descriptive statistics with the help of SPSS. The reliability and validity of the focal constructs was assessed using measurement model and hypothesis testing was done through structural model. SmartPLS 3.3.2 was used as a tool to run measurement and structural model. The measurement model shows that focal constructs hold acceptable level of reliability and validity. The hypothesis testing results showed that there is a significant effect of product knowledge and product involvement on the investment intention of individual investors. The results contribute toward better understanding of investment intention of investors from a consumer behaviour perspective (product knowledge, product involvement). The results can be helpful for the practitioners to develop some policies to increase the intentions of individual investors by creating awareness of financial products. Moreover, to design programs that can increase the level of involvement of individual investors in financial products. These efforts can enhance the investment intentions of individual investors.