This survey seeks to research the factors of consumers’ behaviour and its influence on consumers’ investing determinations as a Panacea for national transmutation in Nigeria. The consumer is the most elemental footing for any concern organisation and the economic system ; hence. their core behavior is besides of great significance for a successful economic system and fiscal richness. Different factors are responsible for the behaviour of consumers within the Nigerian economic system towards doing investing determinations. These factors can be grouped into marketing/entrepreneur factors. concern environmental factors. and psychological factors and consumers’ personal factors. These factors are based on different theories of consumer behaviour that can be loosely categorized as unplanned consumer behaviour theories ( i. e. emotional-based theories ) and planned consumer behaviour theories ( i. e. rational-based theories ) . This survey finds out that factors of consumer behavior influence investing determination devising in the epoch of national transmutation. From the findings. consumers’ behaviour influences investing determinations based on different theories. and the survey recommends among others that consumers’ investing determinations should be based more on the rational-based behavior theory instead than the emotional based behavior theory.

Cardinal Wordss: Consumers’ behavior. investing determinations. national transmutation

Consumers’ Behaviour and Investment Decisions in the Era of National Transformation

The growing and transmutation of any economic system depends on the investings made within that economic system. where the investing is a map of consumer behavior. Nigeria as a state tried independently to promote investings through her financial and pecuniary policies but achieved small. touching to the jobs of continuity. consistence and committedness to hold policies. programmes. and undertakings as highlighted by the National Transformation Agenda 2011 – 2015 papers ( Federal Government of Nigeria. 2011 ) . Consumer investing is cardinal to national transmutation. but how the consumer behaves may act upon his investing determinations.

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A consumers’ investing determination is based on much the same behavioral and attitudinal considerations for both existent and fiscal assets and is closely related to if non equal to his nest eggs determination ( Crockett & A ; Friend. 1967 ) . Salvaging as opined by Crockett and Friend ( 1967 ) is traditionally thought of as a device for accomplishing the preferable balance between current and future ingestion. given the available chances for transforming current money into future money. it is besides used to get assets to execute certain specific current and future services that are sufficiently valued by the family to vie with current ingestion for the household’s resources.

Several surveies ( Walsh. 1954 ; Stewart. 1960 ; Green. 1961 ; Crockett & A ; Friend. 1967 ; Agbonifoh & A ; Edoreh. 1986 ; Hanf & A ; von-Warsebe. 1994 ; Beckett. Hewer. & A ; Howcroft. 2000 ; Mitchell. 2004 ; Soares. 2004 ; Bello & A ; Bello. 2007 ; Padel & A ; Foster. 2005 ; Lutter. 2008 ; Onodje. 2009 ; Chater. Huck. & A ; Inderst. 2010 ; Daniela. 2010 ; Aregbeyen & A ; Mbadiugha. 2011 ; Mansoor & A ; Jalal. 2011 ) were conducted on consumers’ behavior and some of which focused fundamentally on ingestion and investing as macroeconomic variables ( Stewart. 1960 ; Onodje. 2009 ) . Whereas. other surveies examined consumers’ behavior at its individualistic degree associating it to investing services. investing in portions. civilization. monetary value & A ; quality. hazard theory. fiscal services. planetary concern crisis and nest eggs ( Crockett & A ; Friend. 1967 ; Hanf & A ; von-Warsebe. 1994 ; Beckett. Hewer. & A ; Howcroft. 2000 ; Soares. 2004 ; Lutter. 2008 ; Chater. Huck. & A ; Inderst. 2010 ; Daniela. 2010 ; Mansoor & A ; Jalal. 2011 ) . These surveies were based on the foreign environment and economic systems.

A few surveies exist on consumers’ behaviour and investing determinations in Nigerian. A survey by Aregbeyen and Mbadiugha ( 2011 ) focused on the factors act uponing investors determination in portions of quoted companies in Nigeria without underscoring on consumer behaviour as a variable. Whereas. Bello and Bello ( 2007 ) related how consumers’ behavior influences variables finding residential belongings value in Lagos. Nigeria without researching the factors of consumers’ behavior. None of the surveies related consumers’ behavioral factors and investing determinations in Nigeria within the context of National Transformation Agenda. This survey seeks to research the relationship between consumers’ behavioral factors and investing determinations in Nigeria within the context of National Transformation. Due to the newness of the construct of the Transformation Agenda in Nigeria this survey will utilize explorative research design to accomplish its aim.

National Transformation Agenda and the Consumers’ Investment Behaviour The Transformation Agenda ( TA ) of the President Goodluck Jonathan’s Administration was anchored on the footing of continuity. consistence and committedness ( 3Cs ) in put to deathing in agreement undertakings. programmes. and authorities activities to better the criterion of life of Nigerians. Harmonizing to the TA papers. the 3Cs were neglected in the yesteryear in put to deathing in agreement policies. programmes and undertakings ( FGN. 2011 ) . The Transformation Agenda 2011 – 2015 was based on the National Vision 20:2020 and the first National Implementation Plan ( NIP ) ( FGN. 2011 ) . The focal point of the TA is to decreased unemployement through effectual direction of public outgo and better coaction of financial and pecuniary policies of authorities. This focal point of the TA is aimed at bettering the dispoable income of Nigerian consumers by making the enabling environment for investings through effectual pecuniary and financial policies.

The environment may act upon how consumers behave towards doing investing determinations. Consumers’ Behaviour and Investment Decisions: A Conceptual Approach Consumers are individuals or groups of individuals who purchase merchandises or services generated within an economic system. The consumers differ from each other by age. income. instruction. life style. attitude. etc. and all these act upon the manner they behave to do determinations to purchase. Consumers’ behavior is merely the actions. responses or reactions of consumers in their attitude to purchase. Perner ( 2008 ) stated that consumers’ behavior involves the survey of the procedures which persons. groups. or organisations perform to get merchandises. services. experiences. or thoughts to fulfill their demands and how these procedures have impacted the consumer and/or society. The function that consumers play in these yearss is really important to businesses’ endurance which leads to economic growing. Consumers’ behavior is the driving force behind the success of many concerns. because most of the modern-day consumers spend major clip on doing determinations on what to put their income in. i. e. whether to put in consumables. existent assets or fiscal assets.

Consumers play a function and are involved in a buying procedure ; they initiate the buying of a merchandise or service. they influence the concluding determination to purchase. they make determination to purchase. they make the purchase. and utilize the merchandise purchased. Lutter ( 2008 ) idenfied the consumer in the above buying procedure as the instigator. influencer. decider. buyer. and user in that order. The buying procedure and behavior is considered a really complex phenomenon because it consists of a broad set of anterior and after purchase activities ( Hansen. 2004 ) . Consumers’ buying behaviors can be seen as the decision-making procedure that ends up in investing determination. Investing is by and large a postponement of present ingestion for future benefits. Farlex’s The Free Dictionary defines investing as a belongings or ownership acquired for future fiscal return or benefits. From the foregoing. investing is operationally seen as a belongings. ownership or deferred ingestion own by a consumer for the intent of future ingestion.

Investing is related to nest eggs. Consumers postpone their ingestion of their entire income in order to salvage for precautional. transactionary and bad grounds. These grounds are investing issues that make up one’s minding on them may depend on how the consumers behave. Consumer investing determination involves consideration and pick of how to postpone ingestion for future benefits. Bailard. Biehl and Kaiser model divides investors into five types. therefore: adventurers – those who are strong-minded and take hazard ; famous persons – those who stay in the Centre of things. where the action is ; individualists – those who make their ain analysis and do their ain determinations ; defenders – those who are risk averse and really cautious and ; consecutive pointers – these are center of the route investors that fall into any of the predating four types ( Lutter. 2008 ; Investment Psychology: Investor Classification Systems ) . Consumers’ behavior and investing determinations are influenced by different theories put frontward by psychologists.

Consumers’ Behaviour and Investment Decisions: Theoretical Background Several theories of consumers’ behaviors have been propounded by different bookmans. These theories are classified otherwise based on their frequence of happening. emotional engagement. decision-making complexness and hazard ( Mansoor & A ; Jalal. 2011 ) . Harmonizing to Arnould. Price. and Zinkhan ( 2002 ) . these theories can be classified into programmed behavior ; limited determination doing purchasing behavior ; extended decision-making purchasing behavior and unprompted purchasing. Programmed behaviour normally involves accustomed purchasing behavior with small complexness. such as purchasing newspapers ( Learn Marketing ) . Normally small sum of information and sensible degree of doing determinations are involved in limited decision-making purchasing behavior. e. g. purchase of apparels ( East. 1997 ) . Whereas in the extended decision-making purchasing behavior. the consumer would pass a comparatively longer clip in seeking for information and doing a determination sing a purchase and it involves higher psychological hazard ( Peter & A ; Olson. 2007 ) .

Last. Wells and Prensky ( 1997 ) place unprompted purchasing behavior as a determination made unconsciously and induced by an external stimulation that would do a specific merchandise to look attractive and resistless to the consumer. It can be seen in the four listed behaviors above that the cardinal drive force behind these consumers’ behavior is the consumers’ emotion. Consumers’ emotion is the primary determiner of consumer buying behavior that is extremely influenced by some external and internal factors ( Chaudhuri. 2006 ) . Although emotion is a subjective issue that differs harmonizing to single properties and situational contexts. it is still regarded as the most elemental determiner of planned and unplanned purchasing behavior ( Havlena & A ; Holbrook. 1986 ) . The unplanned behavior lucifers greatly the unprompted purchasing which is driven largely by emotional forces ( Laros & A ; Steenkamp. 2005 ) .

These four categorizations by Arnould. Price. and Zinkhan can be grouped as unplanned cunsumer behavior theory or emotional-based consumer behavior theory. If there is an unplanned consumer behavior theory. so surely there will be a planned consumer behavior theory. The planned consumer behavior is a consequence of reason instead than emotionalism. because planned behavior is a complex procedure for the great trade of information needed and the long clip spent on choice. The degree of complexness is driven by the chance cost of the options every bit good as the dealing costs like clip. money and attempt ( Ajzen. 1991 ) . Although the planned consumer behavior theory is chiefly induced by emotions. it is still considered to be less emotional than unplanned. This theory besides presents the construct of ‘perceived behavioral control’ as a critical constituent. i. e. perceived hazard appraisal behavior. Theories set out the frame for pattern. hence. the following subdivision dwelled on different practical surveies. Related Existing Surveies on Consumers’ Behaviour

Beckett. Hewer. and Howcroft ( 2000 ) carried out a survey on the expounding of consumer behavior in the fiscal services industry utilizing focus group treatments. The survey developed a theoretical account which classifies consumer behavior in the buying of fiscal merchandise and services. Mitchell ( 2004 ) explored consumers’ behavior and perceived hazard theory and came out with a probationary findings that pecieved hazard influences ingestion form. In the same line. it was hypothesised by Soares ( 2004 ) that cultural values have effects in footings of consumer optimal stimulation degree. and exploratory and hazard taking behaviors and product-specific perceived hazard. Mansoor and Jalal ( 2011 ) found out that planetary concern crises have influence on consumers’ behavior. A survey by Chater. Huck. and Inderst ( 2010 ) on consumer decision-making in retail investing services found out that cognitive and societal prejudices play a function in consumer investing determination when assisted by an adviser and sales representative. Daniela ( 2010 ) analysed the economy and puting consumer behavior after a terrible fiscal crises in Romania. and found out that Romanians are educated in finance and investing but invest more on consumer merchandises. Even if they have to salvage for the hereafter. the invest on autos and houses.

The Nigerian survey of Aregbeyen and Mbadiugha ( 2011 ) on factors influecing investings determinations in portions of quoted companies. descriptive and illative statistics were used to analysed informations. The survey found some factors that have influenced the investing determinations of the respondents in order of ranking ; societal factors ( 1st ) . economic factors ( 2nd ) . psychological factors ( 3rd ) . and cultural factors ( 4th ) .

Behavioral factors Influencing Nigerian Consumers’ Investment Decisions Different behavioural factors may inflence consumers’ investing determinations in Nigeria. These factors are categorised into four by Lutter ( 2008 ) . therefore: Selling factors ; environmental factors ; single factors and ; psychological factors. These are represented in the figure below: Figure 1: Behavioral Factors act uponing Customers’ Investment Decisions ( Modernised by Writers from Lutter ( 2008 ) )

As shown in figure 1. selling issues. concern external environment. the consumers’ personal and psychological characteristics influence consumers’ behavior towards doing investing determinations. Some of these factors are based on unplanned consumers’ behaviour theory ( i. e. emotionally-based consumers’ behaviour theory ) and others are based on the planned consumers’ behavior theory ( i. e. rationally-based consumers’ behaviour theory ) . and some of the factors are based on the mixture of both theories. Investment needs of consumers may be motivated emotionally or rationally. Emotionally induced demands are associated with feelings. attitudes. individualism. perceptual experience. etc. . whereas rational motivations are associated with expedience. such as economical. prudent. low monetary value. merchandise. etc. ( Lutter. 2008 ) . Aregbeyen and Mbadiugha ( 2011 ) identified four factors that can act upon investing determinations in portions of quoted companies which include economic. cultural. societal. and psychological factors.

Responses from the questionnaires designed in the survey of Aregbeyen and Mbadiugha ( 2011 ) on these factors have shown that on the norm. societal factors top in act uponing investing determination. followed by economic factors. so psychological factors and lasly cultural factors. Other factors apart from the four factors considered in the survey may every bit good act upon the investing determinations of consumers. These factor may include the enterpreneural selling maps and consumers personal characteristics as ealier mentioned. The ranking of the factors considered in the survey of Aregbeyen and Mbadiugha ( 2011 ) may alter when compared to other sorts of investings. such as existent assets. enterpreneurship. other fiscal assets in which the current authorities policies promote. Transformation docket of President Goodluck Jonathan is a authorities policy aimed at bettering the criterion of life of the Nigerian citizens by supplying the enabling environment. such as societal. economic. political and technological that can act upon other factors. such as psychological. enterpreneural and personal factors in the society positively to heighten overall economic prosperity.

When these factors are inflenced positively through the authorities transmutation policy. consumers’ behaviour towards investing determinations may besides alter positively. From the foregoing. we can tentatively infer that consumers’ behavior is affected by marketing/enterpreneural factors. environmental factors. psychological factors and consumers personal factors. These factors are based on either emotionally-based consumer behavior theory or rationally-based consumer behavior theory or both theories which influence consumers investing determinations in Nigeria. particularly in the epoch of national transmutation. The determination of this survey is justified by the findings of Mitchell ( 2004 ) ; Soares ( 2004 ) ; Chater. Huck. and Inderst ( 2010 ) ; Mansoor and Jalal ( 2011 ) ; Aregbeyen and Mbadiugha ( 2011 ) . Decision

From the determination. this survey can confirm that consumers’ behavior influences investing determinations. and when the TA policy of the President Goodluck Jonathan disposal is implemented to the latter. there will be economic growing that will make occupations and better consumers’ disposable income that can be invested. Recommendations

The survey recommends as follows:
1. The present authorities should absorb and use continuity. consistence and committedness ( 3Cs ) in the execution of the policy of TA 2011 – 2015 as highlighted in the TA papers. That will better the disposable income of consumers for reinvestment into the economic system. 2. Consumers’ investing determinations should be influenced more on the behavioral factors that are based on planned consumer behavior theory ( i. e. rational-based consumer behavior theory ) instead than emotional based consumer behavior theory. 3. Government should promote consumers to salvage through promotion and transparence. because salvaging is seen as the bedrock of investing which later leads to growing within the economic system of our state.


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