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Does advertising strategy matter in influencing mutual fund purchase?

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Abstract

This study explores the role of advertising strategies (informational versus transformational) in consumers’ purchase intentions related to mutual funds. Moreover, this study investigates the possible moderating role of gender and financial literacy in advertising strategy. Findings of the experimental approach applied in this study suggest that advertisement strategy does influence investment intention related to the mutual funds. We also found that females are less likely to purchase mutual funds when exposed to transformational advertisements. Moreover, investors with higher financial literacy prefer informational advertisements. The results also indicate that the informational advertisements are more useful and increase awareness levels among investors.

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Authors and Affiliations

  1. IBS Business School, IFHE University, Survey No. 156/157, Dontanapally Village, RR District, Hyderabad, 501203, India

    Dipanjan Kumar Dey, Yogesh Kumar Chauhan & Rajdeep Chakraborti

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  1. Dipanjan Kumar Dey
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  2. Yogesh Kumar Chauhan
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Correspondence to Dipanjan Kumar Dey.

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Dey, D., Chauhan, Y. & Chakraborti, R. Does advertising strategy matter in influencing mutual fund purchase?. J Financ Serv Mark 20, 23–33 (2015). https://doi.org/10.1057/fsm.2014.29

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  • DOI: https://doi.org/10.1057/fsm.2014.29

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