Identifying Investor Group Segments Based on Demographic and Psychographic Characteristics

9 Pages Posted: 29 Dec 2005

See all articles by D. Kiran

D. Kiran

Sri Sathya Sai Institute of Higher Learning

U.S. Rao

Sri Sathya Sai Institute of Higher Learning

Abstract

Targeting customized financial product offerings to various Investor segments is a major concern for financial service companies. This article tries to identify investor group segments using the demographic and psychographic characteristics of investors. A questionnaire survey was conducted and responses were obtained from 96 investors from all over India. The data obtained was then analyzed using two statistical techniques, namely - Multinomial Logistic Regression (MLR) and Factor Analysis (FA). MLR analysis brought out the characteristics of Investors which predominantly decide the risk-taking capacity of Investors. Factor analysis identified four major Investor segments based on their demographic and psychographic characteristics. The findings in the paper could be used by financial service companies to target their financial products to these Investor segments and effectively market them.

Keywords: Investor demography, Investor psychography, Investor segmentation

Suggested Citation

Kiran, D. and Rao, U.S., Identifying Investor Group Segments Based on Demographic and Psychographic Characteristics. 8th Capital Markets Conference, Indian Institute of Capital Markets Paper, Available at SSRN: https://ssrn.com/abstract=870749 or http://dx.doi.org/10.2139/ssrn.870749

D. Kiran (Contact Author)

Sri Sathya Sai Institute of Higher Learning ( email )

Anantapur 515 001, Andhra Pradesh
India

U.S. Rao

Sri Sathya Sai Institute of Higher Learning ( email )

Anantapur 515 001, Andhra Pradesh
India