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Article
Publication date: 12 November 2019

Saurabh Gupta and Saumitra N. Bhaduri

The purpose of this paper is to investigate investor behavior under two broad categories, market-wide sentiment and herding.

Abstract

Purpose

The purpose of this paper is to investigate investor behavior under two broad categories, market-wide sentiment and herding.

Design/methodology/approach

Using a dynamic factor model, that extracts distinct latent factors representing fluctuations in asset returns due to changes in fundamentals as well as investors’ sentiments, the paper investigates the impact of investor behavior on asset pricing.

Findings

Consistent with the literature, the results suggest that the behavioral factors play a significant role in explaining variation in the asset prices. However, the degree of influence depends on the nature of the stocks or portfolios. The findings conform to the hypothesis that behavioral factors play a more important role in explaining the price movements of high and medium valued stocks than those of smaller valued stocks. Further, the behavioral factors also exhibit high auto-correlation, depicting the pervasive nature of such factors, and proving that information cascades and other behavioral mechanisms propagate over a period of time leading to bubbles and market crashes. Finally, since herding is often associated with market volatility, the authors test the hypothesis using two measures of volatility and the result shows positive significant associations between them as suggested in the literature.

Originality/value

The paper presents a dynamic factor model to study the impact of investor behavior on asset returns using a conventional three factors model with behavioral factors. A factor model is proposed to extract distinct latent factors representing fluctuations in asset returns due to changes in fundamentals as well as investors’ sentiments. The study investigates investor behavior under two broad categories, market-wide sentiment and herding. Consistent with the literature, the results suggest that the behavioral factors play a significant role in explaining variation in the asset prices. However, the degree of influence depends on the nature of the stocks or portfolios. The findings conform to the hypothesis that behavioral factors play a more important role in explaining the price movements of high and medium valued stocks than those of smaller valued stocks. Further, the behavioral factors also exhibit high auto-correlation, depicting the pervasive nature of such factors, and proving that information cascades and other behavioral mechanisms propagate over a period of time leading to bubbles and market crashes.

Details

Review of Behavioral Finance, vol. 11 no. 4
Type: Research Article
ISSN: 1940-5979

Keywords

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Article
Publication date: 1 July 2006

Sandeep Grover, V.P. Agrawal and I.A. Khan

To represent the effect of ‘human factors in total quality management (TQM) environment’ in terms of a single numerical index by considering their inheritances and interactions.

Abstract

Purpose

To represent the effect of ‘human factors in total quality management (TQM) environment’ in terms of a single numerical index by considering their inheritances and interactions.

Design/methodology/approach

Various human factors affecting the TQM culture in an organization are identified and discussed for the sub factors affecting them. These factors are interacting with each other and their overall effect helps an organization in attaining TQM enabled needs. The paper attempts to represent the overall effect of human factors quantitatively by developing a mathematical model using graph theoretic approach. In this approach, interaction among identified human factors is represented through digraph, matrix model and a multinomial.

Findings

The extent of human aspects present in an organization, conducive to TQM culture is represented in terms of the “human index”. It provides an insight into the human factors at system and subsystem level. The developed procedure may be useful for self‐analysis and comparison among organizations.

Research limitations/implications

Since, human behaviour is difficult to predict, so are the human factors. The paper considers general factors, which may vary depending on type of organization, size of organization and geographical location. There is a scope of research in factor specific organizations.

Practical implications

It provides a useful methodology for organizations to assess human aspects and improve upon therein. Procedure for stepwise application of methodology is given with example that may help an industry to implement it.

Originality/value

The paper attempts to quantify the intangibles through systematic approach and is of value to industries to improve upon their work environment.

Details

Benchmarking: An International Journal, vol. 13 no. 4
Type: Research Article
ISSN: 1463-5771

Keywords

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Article
Publication date: 8 May 2018

Syed Aliya Zahera and Rohit Bansal

The purpose of this paper is to study and describe several biases in investment decision-making through the review of research articles in the area of behavioral finance…

Abstract

Purpose

The purpose of this paper is to study and describe several biases in investment decision-making through the review of research articles in the area of behavioral finance. It also includes some of the analytical and foundational work and how this has progressed over the years to make behavioral finance an established and specific area of study. The study includes behavioral patterns of individual investors, institutional investors and financial advisors.

Design/methodology/approach

The research papers are analyzed on the basis of searching the keywords related to behavioral finance on various published journals, conference proceedings, working papers and some other published books. These papers are collected over a period of year’s right from the time when the most introductory paper was published (1979) that contributed this area a basic foundation till the most recent papers (2016). These articles are segregated into biases wise, year-wise, country-wise and author wise. All research tools that have been used by authors related to primary and secondary data have also been included into our table.

Findings

A new era of understanding of human emotions, behavior and sentiments has been started which was earlier dominated by the study of financial markets. Moreover, this area is not only attracting the, attention of academicians but also of the various corporates, financial intermediaries and entrepreneurs thus adding to its importance. The study is more inclined toward the study of individual and institutional investors and financial advisors’ investors but the behavior of intermediaries through which some of them invest should be focused upon, narrowing down population into various variables, targeting the expanding economies to reap some unexplained theories. This study has identified 17 different types of biases and also summarized in the form of tables.

Research limitations/implications

The study is based on some of the most recent findings to have a quick overview of the latest work carried out in this area. So far very few extensive review papers have been published to highlight the research work in the area of behavioral finance. This study will be helpful for new researches in this field and to identify the areas where possible work can be done.

Practical implications

Practical implication of the research is that companies, policymakers and issuers of securities can watch out of investors’ interest before issuing securities into the market.

Social implications

Under the Social Implication, investors can recognize several behavioral biases, take sound investment decisions and can also minimize their risk.

Originality/value

The essence of this paper is the identification of 17 types of biases and the literature related to them. The study is based on both, the literature on investment decisions and the biases in investment decision-making. Such study is less prevalent in the developing country like India. This paper does not only focus on the basic principles of behavioral finance but also explain some emerging concepts and theories of behavioral finance. Thus, the paper generates interest in the readers to find the solutions to minimize the effect of biases in decision-making.

Details

Qualitative Research in Financial Markets, vol. 10 no. 2
Type: Research Article
ISSN: 1755-4179

Keywords

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Article
Publication date: 9 November 2015

Koushiki Choudhury

The purpose of this paper is to explore how the different dimensions of service quality influence customers’ behavioural intentions in the private and public sector banks…

Abstract

Purpose

The purpose of this paper is to explore how the different dimensions of service quality influence customers’ behavioural intentions in the private and public sector banks, that is, in class and mass banking, respectively, and the implications for the service provider, consumer, society and consumer policy.

Design/methodology/approach

A contextually modified SERVQUAL instrument was used to capture customers’ perceptions of service quality followed by exploratory factor analysis to study the dimensionality of service quality in retail banking. Multiple regression was used to probe the influence of the dimensions of service quality on customers’ behavioural intentions.

Findings

The study revealed four dimensions of service quality in retail banking, namely, customer-orientedness, reliability, tangibles and convenience and showed that the service quality factor customer-orientedness comprising of the responsiveness and attitude of employees is most important in influencing customers’ behavioural intentions in the case of private sector banks and reliability of the service is most influential in the case of public sector banks.

Research limitations/implications

Future research can focus on “service excellence” being extended beyond assessment of the quality of services, towards evaluation of the quality of life outcomes, to which public organizations contribute, appraisal of the quality of public governance processes and quality of performance in meeting social objectives.

Practical implications

Retail bank managers must realize the importance of employees providing competent, reliable service in the case of public sector banks and their responsiveness and behaviour towards customers in the case of private sector banks, as the keys to foster a culture of service excellence.

Social implications

High-quality financial consumer policy must not only be able to increase customer satisfaction with financial services but also build security and trust in public administration through transparent processes and accountability. In this context, with public agencies being regarded as service providers and citizens as customers, the concept of quality must also visualize public agencies as catalysts of a responsible and active civic society.

Originality/value

This study explores the relationship between service quality and customers’ behavioural intentions in the private and public sector banks by linking both constructs at their dimensional level. It highlights major implications for the service provider, society, consumer and public policy based on the different needs, characteristics and requirements of customers of class and mass banking, that is, private and public sector banks.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 27 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

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Article
Publication date: 13 December 2018

Shakti Bodh Bhatnagar, Jitendra Kumar Mishra and Asif Ali Syed

The literature on customer behaviour has attracted significant attention towards customer loyalty; however, customer disloyalty has not been adequately studied. The…

Abstract

Purpose

The literature on customer behaviour has attracted significant attention towards customer loyalty; however, customer disloyalty has not been adequately studied. The purpose of this paper is to identify factors leading to customer disloyalty and develop a comprehensive framework for understanding various dimensions of customer disloyalty in retail banking services.

Design/methodology/approach

The study is descriptive in nature. Variables associated with customer disloyalty were identified from literature and subsequently factor analysis has been applied to derive the significant factors leading to customer disloyalty. Data were collected through a structured questionnaire administered to 357 retail banking customers. EFA and CFA have been employed to determine relevant factors.

Findings

This study found that customer disloyalty comprises of, both, attitudinal and behavioural components. Further, the study revealed three factors – unfair practices, unfulfilled services and poor interaction leading to behavioural disloyalty and negative image leading to attitudinal disloyalty. Surprisingly, the study found that pricing and competitor’s attraction do not affect, both, attitudinal disloyalty and behavioural disloyalty.

Research limitations/implications

The study contributes to customer behaviour literature by understanding customer disloyalty as a distinct concept in comparison to much prevalent customer switching. It addition, this study empirically identified factors leading to behavioural disloyalty and attitudinal disloyalty.

Originality/value

The originality lies in that fact that it is the only empirical study which has studied customer disloyalty through attitudinal disloyalty lenses. Subsequently, it has also attempted to fill the gap in available literature by studying the relationship between attitudinal disloyalty and behavioural disloyalty.

Details

Asia-Pacific Journal of Business Administration, vol. 11 no. 1
Type: Research Article
ISSN: 1757-4323

Keywords

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Article
Publication date: 2 August 2019

Martinette Kruger

The purpose of this paper is to fill the gap in the literature by focusing on the profile and loyalty of visitors to a literary arts festival in South Africa. In addition…

Abstract

Purpose

The purpose of this paper is to fill the gap in the literature by focusing on the profile and loyalty of visitors to a literary arts festival in South Africa. In addition, this research advocates that festivals can influence visitors’ supplementary behavioural intentions and actions beyond loyalty in the form of literary arts appreciation, purchases and tourism.

Design/methodology/approach

A visitor survey was conducted at one of the oldest literary arts festivals in the country where a total of 391 completed self-administered questionnaires were obtained. The statistical analyses comprised three factor analyses (motives to attend the festival, satisfaction with the festival offering elements and behavioural intentions) as well as structural equation modelling, to establish the relationship between the motives, evaluation of the “festivalscapes”, behavioural intentions and loyalty.

Findings

The findings confirmed that literary arts festival loyalty is the principle behavioural intention that will occur after attending a literary arts festival. However, the results demonstrated that literary arts festivals also have the potential to increase and stimulate supplementary behavioural intentions in the form of greater awareness of the arts, increased purchasing behaviour of literary works, increased travel to support the literary arts and greater personal involvement.

Practical implications

Festivals, irrespective of the art form that they showcase, therefore, play a significant role in encouraging and increasing purchasing behaviour, which is vital to the viability and continuation of the arts industry.

Originality/value

This is one of the first studies to research the literary arts festival market in South Africa, thereby making a distinct contribution by expanding the literature on the needs of this neglected market and the aspects that influence loyalty to these types of festivals.

Details

International Journal of Event and Festival Management, vol. 10 no. 2
Type: Research Article
ISSN: 1758-2954

Keywords

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Article
Publication date: 5 June 2017

Martinette Kruger and Melville Saayman

The purpose of this paper is to determine whether a music festival leads to additional intangible benefits such as the appreciation of the specific music genre and music…

Abstract

Purpose

The purpose of this paper is to determine whether a music festival leads to additional intangible benefits such as the appreciation of the specific music genre and music tourism. This was done by using visitors’ behavioural intentions related to these benefits as a tool for market segmentation.

Design/methodology/approach

The research followed a quantitative approach by conducting a visitor survey at an international jazz festival in South Africa.

Findings

The results showed that visitors’ post-festival behavioural intentions are a useful market segmentation tool. This approach revealed three distinct market segments with different levels of post-festival behavioural intentions (high, medium, and low). The results further showed that music festivals have the potential to create benefits beyond the festival itself or the host destination in the form of music tourism and the appreciation of a music genre. However, influencing visitors’ behavioural intentions can only be achieved by a thorough understanding of the characteristics of the market.

Originality/value

This research applied an innovative market segmentation approach that showed the post-festival behavioural intentions of different visitor segments at a music festival. The findings confirm that music festivals can have far-reaching benefits that can contribute to their legacy.

Details

International Journal of Event and Festival Management, vol. 8 no. 2
Type: Research Article
ISSN: 1758-2954

Keywords

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Article
Publication date: 4 September 2020

Jookyung Kwon and Jiseon Ahn

This paper aims to examine the impact of corporate social responsibility (CSR) skepticism on dual types of attitudinal factors (i.e. positive attitude and reactance) and…

Abstract

Purpose

This paper aims to examine the impact of corporate social responsibility (CSR) skepticism on dual types of attitudinal factors (i.e. positive attitude and reactance) and examine the impact of attitudinal factors on customers' behavioral intention.

Design/methodology/approach

This study applies mixed-method research to examine the link between CSR skepticism, positive attitude, reactance and behavioral intention based on attitude-behavior-context theory.

Findings

As predicted, CSR skepticism weakens a favorable attitude toward CSR, whereas it increases the level of reactance. Also, CSR skepticism negatively influences behavioral intention, while positive attitude and reactance positively influence behavioral intention.

Originality/value

Understanding customers' skepticism toward CSR has become increasingly important because of its negative consequences. Despite existing studies on CSR skepticism, few have focused on why and how CSR skepticism leads to negative behavioral outcomes. Thus, this research contributes to existing tourism literature by examining the role of CSR skepticism on their attitude and behavior. Findings will help researchers and practitioners understand how CSR skepticism impacts customers' behavioral intention and develops CSR strategies to enhance the behavioral intention to patronize.

Details

Journal of Hospitality and Tourism Insights, vol. 4 no. 1
Type: Research Article
ISSN: 2514-9792

Keywords

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Article
Publication date: 1 June 2001

Antreas Athanassopoulos, Spiros Gounaris and Vlassis Stathakopoulos

Investigates the behavioural consequences of customer satisfaction. More specifically, the authors examine the impact of customer satisfaction on customers’ behavioural

Abstract

Investigates the behavioural consequences of customer satisfaction. More specifically, the authors examine the impact of customer satisfaction on customers’ behavioural responses. The results support the notion of direct effects of customer satisfaction on three criterion variables (decision to stay with the existing service provider, engagement in word‐of‐mouth communications, and intentions to switch service providers). Implications for practice, study limitations, and directions for future research are discussed.

Details

European Journal of Marketing, vol. 35 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 5 June 2007

Mark M.H. Goode and Lloyd C. Harris

The current study aims to develop and extend existing research into online behavioural intentions of consumers' by proposing, operationalising, and testing a model of the…

Abstract

Purpose

The current study aims to develop and extend existing research into online behavioural intentions of consumers' by proposing, operationalising, and testing a model of the antecedents of behavioural intentions that models and evaluates how switching costs and inducements moderate the behavioural intentions of online shoppers.

Design/methodology/approach

The study employed a personally administered structured questionnaire to gather data regarding consumer's interpretations and evaluations of one specific website. A total of 296 completed questionnaires were analysed.

Findings

Analyses found support for the theoretical framework and uncovered strong links between a number of hypothesised antecedent and moderating factors and behavioural intentions.

Research limitations/implications

The study supplies an empirical contribution through conceptualising, and subsequently empirically verifying, a model of the antecedents and moderators of online behavioural intentions. Empirical contributions also stem from the findings of moderated associations as well as from the strength and magnitude of uncovered associative links. Finally the study also generates a more general contribution to existing knowledge of e‐loyalty.

Practical implications

The findings of the study also have numerous implications for practitioners. The moderated regression equation indicates that the exogenous factors studied explain nearly 68 per cent of variance in behavioural intentions. As such, the findings supply valuable insights into which factors practitioners should focus their attention to better tailor their approaches and content.

Originality/value

The value of the current study centres on the conceptual and empirical contributions regarding the moderation of links between antecedent factors and online behavioural intentions.

Details

European Journal of Marketing, vol. 41 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

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