Modelling the Effects of Financial Services Advertising on Financial Product Purchase: An Empirical Validation

Abstract

The main aim of the study is to find the effect of the financial advertisement on the respondent’s information selection, processing and analysing it while making the financial purchase decisions. The study identified the important factors that affect the investment decision-making process and explored them by using the exploratory factor analysis. The conceptual model has been tested using the AMOS SEM software. The factor analysis identified the four important factors that are affecting the financial decision-making, that is, financial literacy, celebrity endorsement, perceived reality and entertainment. The hypothesis testing reveals that advertisement, perceived reality and entertainment are affecting the information processing and financial decision-making process, whereas financial literacy and celebrity endorsement do not have significant effects on the financial product purchase. The results are useful for the advertisers, policy makers and the financial service providers so as to increase the sale of financial products by focusing on the variables extracted by the research.

Brand Trust as Celebrity Endorser Marketing Moderator’s Role

“…These results support previous research which states that there is no significant effect of celebrity endorsement on purchase intentions due to several reasons such as the ability of celebrities who are not able to communicate the value of the product and the distrust of customers because they feel that the celebrity is not an expert in the product being delivered (Dogra and Sharma, 2019;Martínez-lópez et al, 2020). Marketers who use celebrities need to consider content that is following product characteristics so that it can be effective in influencing customer purchase intentions.…”

“…The customer also feels more natural and more comfortable when the product is presented by celebrities (Kusumasondjaja and Tjiptono, 2019;Loureiro and Sarmento, 2019). The results are in contrast to the previous one which stated that celebrities did not affect the customers' purchase intention because they are not considered as an expert, cannot judge certain products, and is necessary to have a special ability to give opinions (Dogra and Sharma, 2019;Martínez-lópez et al, 2020). Based on the gap of the previous research, this study offers other variables to get clear results and complete the research gap that is by adding brand trust as the moderator variable.…”

What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM

“…To strive in India, managers should identify the essential financial advertisements antecedents influencing millennials' investment intentions (Dogra and Sharma 2019 ; Acar and Temiz 2017 ). Various researchers, such as Chalise and Anong ( 2017 ), Horner et al ( 2016 ) and Xiao et al ( 2011 , 2014 ), have identified different advertisement antecedents that affect consumer attitude and investment intention.…”