IDEAS home Printed from https://ideas.repec.org/a/sae/busper/v11y2023i1p44-62.html
   My bibliography  Save this article

Role of Social Networking Sites in Financial Product Choice: An Investigation Through the Theory of Planned Behavior

Author

Listed:
  • Mohammed Anam Akhtar
  • Khurram Ajaz Khan
  • Hung Cuong Hoang

Abstract

This study aims to find the role social networking sites (SNSs) have in the form of expert opinions and blogs available at digital platforms, on financial product choice (FPC). How do social blogs and online expert opinions influence people’s purchasing decisions when using a TPB-based model? The research is conducted in northern India on an individual-level survey basis. The effects of the chosen variable on purchase intentions through the theory of planned behavior were examined by partial least square-structural equation modeling (PLS-SEM) using SMART-PLS 3.2. The results revealed that social media platforms have a positive impact on individuals’ FPCs through blogs and opinions. This study adds to the literature by providing insights into the impact of social media on financial product selection in a developing country like India, an area that is not much explored. More so, there is no conclusive literature available in the Indian context using gender as a moderator over TPB while examining intention to invest in financial products. The study provides a better understanding of investment behavior using online social platforms, blogs, and online expert opinion to policymakers and regulators like SEBI and service providers for enhancing the reach of their services. However, constraints such as dealing with self-reporting and generalizing findings to various situations are expected to be overcome with additional research in the field.

Suggested Citation

  • Mohammed Anam Akhtar & Khurram Ajaz Khan & Hung Cuong Hoang, 2023. "Role of Social Networking Sites in Financial Product Choice: An Investigation Through the Theory of Planned Behavior," Business Perspectives and Research, , vol. 11(1), pages 44-62, January.
    • Handle: RePEc:sae:busper:v:11:y:2023:i:1:p:44-62
    DOI: 10.1177/22785337211070342
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/22785337211070342
    Download Restriction: no
    File URL: https://libkey.io/10.1177/22785337211070342?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mary Loxton & Robert Truskett & Brigitte Scarf & Laura Sindone & George Baldry & Yinong Zhao, 2020. "Consumer Behaviour during Crises: Preliminary Research on How Coronavirus Has Manifested Consumer Panic Buying, Herd Mentality, Changing Discretionary Spending and the Role of the Media in Influencing," JRFM, MDPI, vol. 13(8), pages 1-21, July.
    2. van Rooij, Maarten & Lusardi, Annamaria & Alessie, Rob, 2011. "Financial literacy and stock market participation," Journal of Financial Economics, Elsevier, vol. 101(2), pages 449-472, August.
    3. Yi Xiang & Jacqueline L. Birt, 2020. "Internet reporting, social media strategy and firm characteristics – an Australian study," Accounting Research Journal, Emerald Group Publishing Limited, vol. 34(1), pages 43-75, November.
    4. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    5. Casaló, Luis V. & Flavián, Carlos & Guinalíu, Miguel, 2010. "Determinants of the intention to participate in firm-hosted online travel communities and effects on consumer behavioral intentions," Tourism Management, Elsevier, vol. 31(6), pages 898-911.
    6. Laato, Samuli & Islam, A.K.M. Najmul & Farooq, Ali & Dhir, Amandeep, 2020. "Unusual purchasing behavior during the early stages of the COVID-19 pandemic: The stimulus-organism-response approach," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    7. Andrzej Cwynar & Wiktor Cwynar & Mieczysław Kowerski & Kamil Filipek & Przemysław Szuba, 2020. "Debt literacy and debt advice-seeking behaviour among Facebook users: the role of social networks," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 20(1), pages 1-33.
    8. Shengle Lin, 2010. "Gradual Information Diffusion and Asset Price Momentum," Working Papers 10-04, Chapman University, Economic Science Institute.
    9. Lily Fang & Joel Peress, 2009. "Media Coverage and the Cross‐section of Stock Returns," Journal of Finance, American Finance Association, vol. 64(5), pages 2023-2052, October.
    10. Kee-Young Kwahk & Byoungsoo Kim, 2017. "Effects of social media on consumers’ purchase decisions: evidence from Taobao," Service Business, Springer;Pan-Pacific Business Association, vol. 11(4), pages 803-829, December.
    11. Han, Heesup & Hsu, Li-Tzang (Jane) & Sheu, Chwen, 2010. "Application of the Theory of Planned Behavior to green hotel choice: Testing the effect of environmental friendly activities," Tourism Management, Elsevier, vol. 31(3), pages 325-334.
    12. Alina Butu & Ioan Sebastian Brumă & Lucian Tanasă & Steliana Rodino & Codrin Dinu Vasiliu & Sebastian Doboș & Marian Butu, 2020. "The Impact of COVID-19 Crisis upon the Consumer Buying Behavior of Fresh Vegetables Directly from Local Producers. Case Study: The Quarantined Area of Suceava County, Romania," IJERPH, MDPI, vol. 17(15), pages 1-25, July.
    13. Talwar, Manish & Talwar, Shalini & Kaur, Puneet & Tripathy, Naliniprava & Dhir, Amandeep, 2021. "Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    14. Shirley Taylor & Peter A. Todd, 1995. "Understanding Information Technology Usage: A Test of Competing Models," Information Systems Research, INFORMS, vol. 6(2), pages 144-176, June.
    15. Gentjan Çera & Khurram Ajaz Khan & Jaroslav Belas & Humberto Nuno Rito Ribeiro, 2020. "The Role of Financial Capability and Culture in Financial Satisfaction," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 389-406, December.
    16. Kim, Angella J. & Ko, Eunju, 2012. "Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand," Journal of Business Research, Elsevier, vol. 65(10), pages 1480-1486.
    17. Mi Rosie Jahng & Seoyeon Hong, 2017. "How Should You Tweet?: The Effect of Crisis Response Voices, Strategy, and Prior Brand Attitude in Social Media Crisis Communication," Corporate Reputation Review, Palgrave Macmillan, vol. 20(2), pages 147-157, May.
    18. Dhir, Amandeep & Kaur, Puneet & Rajala, Risto, 2018. "Why do young people tag photos on social networking sites? Explaining user intentions," International Journal of Information Management, Elsevier, vol. 38(1), pages 117-127.
    19. Paul, Justin & Modi, Ashwin & Patel, Jayesh, 2016. "Predicting green product consumption using theory of planned behavior and reasoned action," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 123-134.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pei Ling Sung & Teng Yuan Hsiao & Leo Huang & Alastair M. Morrison, 2021. "The influence of green trust on travel agency intentions to promote low‐carbon tours for the purpose of sustainable development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1185-1199, July.
    2. Leibao Zhang & Yanli Fan & Wenyu Zhang & Shuai Zhang, 2019. "Extending the Theory of Planned Behavior to Explain the Effects of Cognitive Factors across Different Kinds of Green Products," Sustainability, MDPI, vol. 11(15), pages 1-17, August.
    3. Chen, Shih-Chih & Hung, Chung-Wen, 2016. "Elucidating the factors influencing the acceptance of green products: An extension of theory of planned behavior," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 155-163.
    4. Hsu, Chia-Lin & Chang, Chi-Ya & Yansritakul, Chutinart, 2017. "Exploring purchase intention of green skincare products using the theory of planned behavior: Testing the moderating effects of country of origin and price sensitivity," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 145-152.
    5. Waris, Idrees & Hameed, Irfan, 2019. "Using Extended Model of Theory of Planned Behavior to Predict Purchase Intention of Energy Efficient Home Appliances in Pakistan," MPRA Paper 109612, University Library of Munich, Germany.
    6. Untaru, Elena-Nicoleta & Han, Heesup, 2021. "Protective measures against COVID-19 and the business strategies of the retail enterprises: Differences in gender, age, education, and income among shoppers," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    7. Heesup Han & Myong Jae Lee & Wansoo Kim, 2018. "Promoting towel reuse behaviour in guests: A water conservation management and environmental policy in the hotel industry," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1302-1312, December.
    8. Emel Yarimoglu & Tugrul Gunay, 2020. "The extended theory of planned behavior in Turkish customers' intentions to visit green hotels," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1097-1108, March.
    9. Mohd Azhar & Ruksar Ali & Sheeba Hamid & Mohd Junaid Akhtar & Mohd Nayyer Rahman, 2022. "Demystifying the effect of social media eWOM on revisit intention post-COVID-19: an extension of theory of planned behavior," Future Business Journal, Springer, vol. 8(1), pages 1-16, December.
    10. Jing Li & Chia-Chien Hsu & Ching-Torng Lin, 2019. "Leisure Participation Behavior and Psychological Well-Being of Elderly Adults: An Empirical Study of Tai Chi Chuan in China," IJERPH, MDPI, vol. 16(18), pages 1-19, September.
    11. Goutam Saha & Benazir Ishaque, 2022. "Predicting Green Purchase Behavior: An Empirical Study Using Theory of Reasoned Action," International Journal of Science and Business, IJSAB International, vol. 12(1), pages 45-57.
    12. Shimiao Li & Nor Siah Jaharuddin, 2020. "Identifying the key purchase factors for organic food among Chinese consumers," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-23, December.
    13. Diana Puspita Sari & Nur Aini Masruroh & Anna Maria Sri Asih, 2021. "Consumer Intention to Participate in E-Waste Collection Programs: A Study of Smartphone Waste in Indonesia," Sustainability, MDPI, vol. 13(5), pages 1-28, March.
    14. Patel, Jayesh D. & Trivedi, Rohit H. & Yagnik, Arpan, 2020. "Self-identity and internal environmental locus of control: Comparing their influences on green purchase intentions in high-context versus low-context cultures," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    15. Shuai Yang & Lei Li & Jiemin Zhang, 2018. "Understanding Consumers’ Sustainable Consumption Intention at China’s Double-11 Online Shopping Festival: An Extended Theory of Planned Behavior Model," Sustainability, MDPI, vol. 10(6), pages 1-19, May.
    16. Abdullah Al-Swidi & Redhwan Mohammed Saleh, 2021. "How green our future would be? An investigation of the determinants of green purchasing behavior of young citizens in a developing Country," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13436-13468, September.
    17. Julia Koch & Britta Frommeyer & Gerhard Schewe, 2020. "Online Shopping Motives during the COVID-19 Pandemic—Lessons from the Crisis," Sustainability, MDPI, vol. 12(24), pages 1-20, December.
    18. Jingyang Zhou & Yanjun Qin & Shaoze Fang, 2019. "Impacts of Consumers and Real Estate Enterprises on the Implementation of Prefabrication in Residential Buildings: The Moderating Role of Incentive Policies," Sustainability, MDPI, vol. 11(18), pages 1-17, September.
    19. Md. Nekmahmud & Maria Fekete-Farkas, 2020. "Why Not Green Marketing? Determinates of Consumers’ Intention to Green Purchase Decision in a New Developing Nation," Sustainability, MDPI, vol. 12(19), pages 1-31, September.
    20. Abdullah Al Mamun & Muhammad Khalilur Rahman & Uma Thevi Munikrishnan & P. Yukthamarani Permarupan, 2021. "Predicting the Intention and Purchase of Health Insurance Among Malaysian Working Adults," SAGE Open, , vol. 11(4), pages 21582440211, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:busper:v:11:y:2023:i:1:p:44-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.