Consumers' Behaviours and Investment Decisions

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CONSUMERS’ BEHAVIOUR AND INVESTMENT DECISIONS: A PANACEA FOR NATIONAL TRANSFORMATION By
Dagwom Y. Dang
Department of Accounting, Plateau State Polytechnic, Barkin Ladi dagwom2011@gmail.com
Isaac P. Chingle
Department of General Studies, Plateau State Polytechnic, Barkin Ladi iziks2u@yahoo.com
And
Mankwat Gizo
Department of General Studies, Plateau State Polytechnic, Barkin Ladi monodecity@yahoo.com

Abstract
This study seeks to explore the factors of consumers’ behavior and its influence on consumers’ investment decisions as a panacea for national transformation in Nigeria. The consumer is the most elemental basis for any business organization and the economy; hence, their core behaviour is also of great significance for a successful economy and financial affluence. Different factors are responsible for the behavior of consumers within the Nigerian economy towards making investment decisions. These factors can be grouped into marketing/entrepreneur factors, business environmental factors, and psychological factors and consumers’ personal factors. These factors are based on different theories of consumer behavior that can be broadly categorized as unplanned consumer behavior theories (i.e. emotional-based theories) and planned consumer behavior theories (i.e. rational-based theories). This study finds out that factors of consumer behaviour influence investment decision making in the era of national transformation. From the findings, consumers’ behaviour influences investment decisions based on different theories, and the study recommends among others that consumers’ investment decisions should be based more on the rational-based behaviour theory rather than the emotional based behaviour theory.

Key Words: Consumers’ behaviour, investment decisions, national transformation

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

Introduction
The growth and transformation of any economy depends on the investments made within that economy, where the investment is a function of consumer behaviour. Nigeria as a country tried severally to encourage investments through her fiscal and monetary policies but achieved little, alluding to the problems of continuity, consistency and commitment to agreed policies, programmes, and projects as highlighted by the National Transformation Agenda 2011 – 2015 document (Federal Government of Nigeria, 2011). Consumer investment is key to national transformation, but how the consumer behaves may influence his investment decisions.

A consumers’ investment decision is based on much the same behavioural and attitudinal considerations for both real and financial assets and is closely related to if not equal to his savings decision (Crockett & Friend, 1967). Saving as opined by Crockett and Friend (1967) is traditionally thought of as a device for achieving the preferred balance between current and future consumption, given the available opportunities for transforming current money into future money, it is also used to acquire assets to perform certain specific current and future services that are sufficiently valued by the household to compete with current consumption for the household's resources.

Several studies (Walsh, 1954; Stewart, 1960; Green, 1961; Crockett & Friend, 1967; Agbonifoh & Edoreh, 1986; Hanf & von-Warsebe, 1994; Beckett, Hewer, & Howcroft, 2000; Mitchell, 2004; Soares, 2004; Bello & Bello, 2007; Padel & Foster, 2005; Lutter, 2008; Onodje, 2009; Chater, Huck, & Inderst, 2010; Daniela, 2010; Aregbeyen & Mbadiugha, 2011; Mansoor & Jalal, 2011) were conducted on consumers’ behaviour and some of which focused basically on consumption and investment as macroeconomic variables (Stewart, 1960; Onodje, 2009). Whereas, other studies examined consumers’ behaviour at its individualistic level relating it to investment services, investment in shares, culture, price & quality, risk theory,...
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