CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

This chapter elaborates the research methodology adopted in this study in order to
assess the determinants shaping the financial behaviour of the investors.

To reiterate, this study intends to understand the role and influence of psychological
factors along with the demographic factors on the financial behaviour of the investors.
It purports to assess and validate the applicability of the extended Theory of Planned
Behaviour (TPB) in examining investor’s intention behaviour along with considering
the role of investor’s tendency towards savings and investment, their financial interest
& knowledge, risk tolerance, financial self-efficacy, attitude, subjective norm and
perceived behavioural control of the investors as determinants shaping their investment
intention.

As per its research plan, this study has covered investor’s financial behaviour
specifically for the long-term assets, which is a major facet of their financial goals
augmenting and the mobilisation of his/her savings and investments and capital
formation. So, the quantitative and cross-sectional research study design has been
conceived for this study and data collected from the sample of 405 investors from
Delhi/NCR with the help of a questionnaire.

The questions mainly pertain to extracting information regarding the investors,

investment intention and the determinants along with demographic variables. The
theoretical model adapted from the widely acclaimed TPB model has been extended in
the light of reviewed studies, to include 5 additional constructs in this study. The same
has been validated through Confirmatory Factor Analysis leading to proposing the
structural relationships between these constructs with the investment intention through
SEM. Further, the study employed both descriptive and inferential statistical tests
analysis to arrive at the outcome findings. This chapter discusses the research methods
elaborately along with their justification and the way it has been administered for the
study and its associated analysis. It also discusses at length the research design,

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sampling method, types of data, methods of data collection, and statistical techniques
used for data analysis in this study.

3.2 Research Process

Research is a systematic and structured process to arrive at the conclusion of a defined

problem. It comprises of ‘re’ and ‘search’, thereby implying means and ways of
searching and examining the extant problem/idea once again in a fresh perspective in
order to prove the well laid down and established facts/principles used in the study.

Thus, drawing from the common threads of these, it can be said that management
research is an unbiased, structured and sequential method of enquiry, directed towards
a clear implicit and explicit business objective. There is a possibility that this enquiry
might lead to validating existing postulates or arriving at new theories and models.

Research process comprises a series of steps necessary to effectively carry out a

research plan for arriving at the anticipated results/outcomes of the study.

In this quantitative and cross-sectional study, a systematic research process has been
adopted that encompasses the following steps in its research process (figure 3.1).

The description and the way each of these steps in this research study has been carried
out is discussed in the following sections.

Figure 3.1: Steps in Research process

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Thus, inferring from the figure 3.1, this study has in the first place formulated the
research problem to understand the investors financial behaviour. Thereafter, the study
has extensively conducted Review of literature to identify the research gaps which have
already been covered in chapter 2.

3.3 Research Framework

In the first place, it is pertinent to recapitulate the Objectives of the study which is stated
as follows: -

Objectives of the Study

1. To identify the determinants affecting the investment intention of investors in

Delhi/NCR.

2. To validate the determinants affecting the investment intention of investors in

Delhi/NCR as per the TPB model.

3. To ascertain the impact of the determinants on the investment intention of

investors.

4. To develop a model explaining the relationship between the determinants

affecting the investment intention of the investors.

5. To examine the demographic association between the determinants of the

investment intention of the investors.

Hypotheses of the study

Hypothesis is defined as “a conjectural statement of the relationship between two or

more variables”. Hypotheses are written in such a way that it can be proven or disproven
by valid and reliable data Depending on the nature of relationships between the
variables taken up in this study objectives, several hypotheses have been advocated as
collated from the prior review of the studies in literature.

Further, hypotheses testing in this research study were run at 95% confidence level. The
hypotheses drawn for this study plan are mentioned as:-

A] In order to explain the financial behaviour of the investors, several hypotheses were
proposed in this study as given below: -

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H 1: Attitude significantly impacts the investment intention of the investors.

H 2: Subjective Norms significantly impacts the investment intention of the investors.

H3: Perceived behavioural control significantly impacts the investment intention of the
investors.

H4: Tendency towards savings significantly impacts the investment intention of the
investors.

H5:Tendency towards investment significantly impacts the investment intention of the

investors.

H6:Financial interest & knowledge significantly impacts the investment intention of

the investors.

H7:Risk tolerance significantly impacts the investment intention of the investors.

H8:Financial Self efficacy significantly impacts the investment intention of the

investors.

Hypothesized Model for the above relationship between determinants impacting the
investment intention of the investors is also represented in the figure 3.2 below:

Figure 3.2 : Hypothesized Model

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B] Further, Hypotheses were formulated to express the demographic association with
the determinants of the investment intention.

This would explain whether demographic variances are significantly associated with
each of the determinants, i.e. Tendency towards Savings, Tendency towards
Investment, Risk tolerance, Financial interest & knowledge, Attitude, Subjective
norms, Perceived behavioural control, and Financial self-efficacy.

These are stated as follows: -

H 1: There is a significant relationship between Gender of the respondents and all the
Determinants of Investment Intention.

H 1a: There is a significant relationship between Gender of the respondents and the
Tendency towards Savings.

H 1b: There is a significant relationship between Gender of the respondents and the
Tendency towards Investment.

H 1c: There is a significant relationship between Gender of the respondents and the Risk
tolerance.

H 1d: There is a significant relationship between Gender of the respondents and the
Financial interest & knowledge.

H 1e: There is a significant relationship between Gender of the respondents and the
Subjective norms.

H 1f: There is a significant relationship between Gender of the respondents and the
Attitude.

H 1g: There is a significant relationship between Gender of the respondents and the
Perceived behavioural control.

H 1h: There is a significant relationship between Gender of the respondents and the
Financial self-efficacy.

H 2: There is a significant relationship between Age group of the respondents and all
the Determinants of Investment Intention.

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H 2a:There is a significant relationship between Age group of the respondents and the
Tendency towards Savings.

H 2b: There is a significant relationship between Age group of the respondents and the
Tendency towards Investment.

H 2c: There is a significant relationship between Age group of the respondents and the
Risk tolerance.[

H 2d: There is a significant relationship between Age group of the respondents and the
Financial interest & knowledge

H 2e: There is a significant relationship between Age group of the respondents and the
Subjective norms

H 2f: There is a significant relationship between Age group of the respondents and the
Attitude

H 2g: There is a significant relationship between Age group of the respondents and the
Perceived behavioural control

H 2h: There is a significant relationship between Age group of the respondents and the
Financial self-efficacy.

H 3: There is a significant relationship between Education of the respondents and all

the Determinants of Investment Intention

H 3a: There is a significant relationship between Education of the respondents and the
Tendency towards Savings

H 3b: There is a significant relationship between Education of the respondents and the
Tendency towards Investment,

H 3c: There is a significant relationship between Education of the respondents and the
Risk tolerance

H 3d: There is a significant relationship between Education of the respondents and the
Financial interest & knowledge

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H 3e: There is a significant relationship between Education of the respondents and the
Subjective norms

H 3f: There is a significant relationship between Education of the respondents and the
Attitude

H 3g: There is a significant relationship between Education of the respondents and the
Perceived behavioural control

H 3h: There is a significant relationship between Education of the respondents and the
Financial self-efficacy

H 4: There is a significant relationship between Occupation of the respondents and all

the Determinants of Investment Intention

H 4a:There is a significant relationship between Occupation of the respondents and the

Tendency towards Savings

H 4b: There is a significant relationship between Occupation of the respondents and the
Tendency towards Investment,

H 4c: There is a significant relationship between Occupation of the respondents and the
Risk tolerance

H 4d: There is a significant relationship between Occupation of the respondents and the
Financial interest & knowledge

H 4e: There is a significant relationship between Occupation of the respondents and the
Subjective norms

H 4f: There is a significant relationship between Occupation of the respondents and the
Attitude

H4g: There is a significant relationship between Occupation of the respondents and the
Perceived behavioural control

H 4h: There is a significant relationship between Occupation of the respondents and the
Financial self-efficacy

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H 5: There is a significant relationship between Income of the respondents and all the
Determinants of Investment Intention

H 5a: There is a significant relationship between Income of the respondents and the
Tendency towards Savings

H 5b: There is a significant relationship between Income of the respondents and the
Tendency towards Investment,

H 5c: There is a significant relationship between Income of the respondents and the
Risk tolerance

H 5d: There is a significant relationship between Income of the respondents and the
Financial interest & knowledge

H 5e: There is a significant relationship between Income of the respondents and the
Subjective norms

H 5f: There is a significant relationship between Income of the respondents and the
Attitude

H 5g: There is a significant relationship between Income of the respondents and the
Perceived behavioural control

H 5h: There is a significant relationship between Income of the respondents and the
Financial self-efficacy

3.4 Research design

It can be defined as-- “a conceptual structure within which research will likely be done;
it comprises the blueprint for the collection, measurement and analysis of data”.

Research design entails the what, where, when, how much, by what means with regards
to an enquiry. In fact, the research design is the conceptual structure within which
research is conducted.

According to Sekaran (2003), a research design is set up to decide on, among other
issues, how to collect further data, analyze and interpret them, and finally, to provide

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an answer to the problem. Sekaran (2003), has identified six elements of research
design. They are listed below.

1. Purpose of the study

2. Type of investigation

3. Extent of researcher interference

4. Study setting

5. Unit of analysis

6. The time horizon

A flexible research design provides opportunity for considering many different aspects
of a problem and is considered appropriate. According to the objectives of the study the
technique of research design must be chosen.

There are two techniques in which a research can be designed. The first is exploratory
research and the other is conclusive research (Cooper & Schindler, 2003).

Figure 3.3: Types of Research Design

Source: http://researchdesignmethod.com/wpcontent/uploads/2013/10/

3.4.1 Exploratory Research

Exploratory research design is the type of research design that is primarily conducted
for the identification and explanation about the type of problem and thus helps in getting
the first hand insight into understanding the problem at hand by the researcher.

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As per Zikmund (2000), “the purpose of exploratory research includes, diagnosing a
situation, screening alternatives and discovering new ideas”. This type is mostly used
when the research problem is either unknown or unstructured or complete information
is not available.

3.4.2 Conclusive (Descriptive & Causal research design)

Conclusive research design is of two types:- Descriptive and Causal.

Zikmund (2000), defined it as:--“Descriptive research design relates to those where

studies are based on some previous understating of the nature of the research problem”.
So, if the problem is already understood and formally structured, then descriptive
research design can be applied.

Descriptive research is primarily used to describe something, like market characteristics

or individual behavior. It is also used to test the association between various variables
and to estimate the percentage of units in a particular population showing certain
behavior, which is defined by a concise statement of the problem and its corresponding
hypotheses.

Descriptive research is further categorised as: longitudinal and cross-sectional design

wherein the former, i.e. longitudinal design extends to a particular set of sample
respondents that is repeatedly surveyed in different time zones. While the cross-
sectional design pertains to one particular time period when the data has been collected
and then analyzed for a particular sample of respondents.

In this study ‘Descriptive’ research design has been adopted to present a comprehensive
picture of the financial behaviour of the investors in line with the TPB model and the
inter-relationships between the constructs has been hypothesized in a systematic
manner. Thus, this study entails a Descriptive research design (using cross-sectional
study design at one particular time period) by administering questionnaires in both
online as well as offline mode from the investors in Delhi/NCR.

3.5 Sampling Methodology

Another important step in the research process is planning the ‘sampling methodology’
since it is tedious to cover the entire population. But at the same time it is imperative to

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collect data from a representative sample in the right manner in order to yield authentic
and reliable study findings.

Malhotra & Dash, (2013) defined that-- “sample is the subgroup of the elements of the
total population selected for participation in the study”. The sampling design process
involves a set of 5 interrelated steps, as shown in the figure 3.4: -

Figure 3.4: Sampling Design Process

Source: Malhotra & Dash, (2013)

3.5.1 Defining Target Population

The population is defined as “the group of sections or objects which inherits the
information required by the researcher for which inferences are to be made”. In the
present study, the focus sample will consist of the investors who have undertaken a long
term investment decision either solely or jointly in the past two years.

3.5.2 Determining Sampling Frame

The frame is referred to as a demonstration of sections of the target sample. In this

research, the sampling frame comprises investors from Delhi/NCR, who were
accessible and who were willing to participate in the survey.

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3.5.3 Selecting Sampling Technique

Sampling techniques can be divided as under:

● Probability sampling

● Non-probability sampling

Probability sampling is referred to the technique when all elements of the target sample
are at par of being chosen in survey sample.

Non-probability sampling is one in which sections of target sample are not at par with
each other i.e some elements can be selected and some may not be selected in the
survey.

In the present study, non-probability sampling techniques of both judgmental and

snowball sampling were adopted. The judgmental sampling is suited wherein the
researcher chooses the sample based on his discretion on some specific criteria.
Snowball sampling is used in which the initial group of respondents are selected
randomly and the subsequent respondents are selected based on the referrals or
information provided by the initial respondents. The basic reason for choosing these
methods was that, in general; respondents were not willing to participate and divulge
their financial position. So, we had to base the study and pick those investors who have
already invested in the past two years and who have also provided further references of
their acquaintances who might be willing to participate in the survey.

3.5.4 Determining Sample Size

“Sample size refers to the number of subjects which are to be included in the study”. In
this study, the sample size was calculated at a 5% margin of error with a 95%
confidence level, assuming a response distribution of 50%. So, the recommended
minimum sample size as per the calculations and as per formula should be above 385.

The formula for calculating the sample size is as:-

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In the present study, 425 questionnaires were distributed. But after doing the data
validation checks and deleting the invalid questionnaires, the final number of
questionnaires which were accepted for further analysis was 405. The percentage of
responses was quite high above 80% in the present study. Therefore, the usable data for
this study was arrived at 405 which was apt for this research study plan. The sample for
this research study was drawn from the investors in Delhi/NCR, i.e. from Delhi, New
Delhi, Faridabad, Gurugram, Noida and Greater Noida.

3.5.5 Executing Sampling Process

The execution of the sampling process is basically the implementation of all the above-
mentioned steps of sample design. In this study, all the above-mentioned steps have
been followed rigorously to come to the final sample on which the further analysis can
be done.

3.6 Types of Data: Primary and Secondary

To meet the research requirements, both Primary and Secondary data have been used
in this study:

The primary data is collected afresh for the first time and specifically to meet the
particular research requirements. So, they are original in nature and meant to suit the
research requirements.

In this study, primary data was collected using a questionnaire which was administered
in both online mode and offline mode from the investors in Delhi/NCR.

A questionnaire is defined as “a form containing a set of questions, especially one

addressed to a statistically significant number of subjects as a way of gathering
information for a survey”. For this study, the questionnaire includes closed–ended,
multiple-choice questions and Likert-scale questions.

Unlike primary data, secondary data relates to pre-existing information that

complements the primary research investigation. So, it must be validated and
authenticated prior to its use.

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In this study, collection of secondary data was elicited mainly for forming the
conceptual understanding related to financial behaviour of the investors. For this, online
sources and information depository such as Science direct, EBSCO directory,
Academia and Research gate were used and reputed journals from the library of AIMA,
MDI and Delhi university were also used.

3.7 Questionnaire Design

As discussed above, the questionnaire was administered to elicit information for further
analysis on a sample of 405 investors from Delhi/NCR who have undertaken an
investment decision in the recent years.

The questionnaire was carefully devised to test the conceptual model and the
hypotheses developed. The questionnaire contained five sections. These sections
covered items related to - Demographic Information of the investors, Attitude,
Subjective Norm, Perceived Behaviour Control, Tendency towards savings, Tendency
towards investment, Financial interest & knowledge, Risk tolerance, Financial Self
efficacy, and Investment intention items. Respondents were asked to answer questions
based on the 5-point Likert scale. The 5-point Likert scale, which is rating the scales
have been widely used for assessing psychological determinants (Fisher, 2010).

So, in this study context, the demographic factors are related to the following
components:

● Gender

● Age group

● Education level

● Occupation

● Income

● Marital Status

● No. of dependents

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 ● Financial Decision Responsibility

● Financial Products

● Duration of investment

● Frequency of Reviewing investments

Further, the antecedents/determinants of investment intention (on lines of extended

TPB model) included the factors covered are enumerated below:

● Attitude

● Subjective Norms

● Perceived Behavioural Control

● Tendency towards savings

● Tendency towards investment

● Financial interest & knowledge

● Risk tolerance

● Financial Self efficacy

Last but the least, the ‘Investment intention’ was considered as the dependent (outcome)
construct of this study.

The constructs’ measurement variables used in this study were adapted from prior
literature. In order to reduce the measurement bias, multiple items were used to measure
each construct in this study. The detailed description of constructs, measurement
variables and their sources is presented in table 3. 1.

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Table 3. 1: Construct’s Measurement variables/statement items & Sources

Construct Statement Items Source(s)

It is important for a family to develop a regular
pattern of saving and stick to it.
Financial planning for retirement is not really
necessary for assuring one‘s security during old
age.

A written budget is absolutely essential for

successful financial management
Godwin and Carroll
It does not matter how much an individual save as
(1986) and Godwin
long as they do save
Tendency and Koonce (1992).
towards Having a savings plan is not really necessary in
Savings today‘s world in order to meet one‘s financial
needs.

Planning for spending money is essential to

successfully managing one‘s life

Planning for the future is the best way of getting

ahead

Thinking about where you will be financially in 5

or 10 years in the future is essential for financial
success
I prefer to have money spread over multiple
investment option
I prefer to invest in retirement plans

I prefer to invest in mutual funds Hilgert (1998),

Tendency Godwin and Carroll
towards I prefer to have bonds from govt agencies (1986) and Godwin
Investment and Koonce (1992).
I have calculated net worth in the past two years

I prefer to invest in tax savings investment options

I prefer to have money spread over multiple

investment options
Compared to others, I think I am --------------------
---------in terms of risk tolerance
Risk I can tolerate sharp ups and downs in the short- Grable & Joo
Tolerance term value of my investments in return for (2000).
potential long-term gains

I am comfortable holding on to an investment even

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 Construct Statement Items Source(s)
though it drops sharply in value

I consider myself knowledgeable about the risks

and potential returns associated with investing in
stocks and other types of securities

I am more comfortable putting my money in bank

account rather than in the stock market

In terms of investing, safety is more important than

returns
I enjoy finding out about new investments and
savings schemes
I tend to shop around for the best deal when buying
a financial product

I find it difficult to understand financial leaflets

Financial Funfgeld et al
and materials
Interest and (2008) Courchane
Knowledge I‘ve got a clear idea of the sorts of financial (2005)
products that I need

I read the business section of the newspaper

attentively

I already know a lot about financial products

Most people who are important to me would think
that I should invest in financial products East (1993), Brown
People who are important to me think that et al. (1996), Taylor
Subjective investing in financial products is a good idea and Todd (1995)
Norms and Alleyne and
People who are important to me think that Broome (2011)
investing in financial products would be a wise
idea
Investing in long term assets (like, stock market) is
a good idea to safeguard against future uncertainty
Investing in the long-term assets is a wise choice Chen (2007);
Attitude for financial growth. Taylor and Todd
(1995)
I like the idea of investing in the long-term assets
for better gains
If I want to buy financial investments, I can easily
Perceived do it so Taylor and Todd
Behavioral (1995); Bansal and
Control I have the knowledge to make financial investment Taylor (2002)
decisions

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 Construct Statement Items Source(s)
There is plenty of financial investments
opportunities for me

I have control over staying out of debt

It is hard to stick to my spending plan when
unexpected expenses arise.
It is challenging to make progress toward my
financial goals.

When unexpected expenses occur I usually have to Lim, Kang &

Financial
use credit. Soutar, Geoffrey &
Self-
Lee, Julie. (2013),
Efficacy When faced with a financial challenge, I have a Chen (2007)
hard time figuring out a solution.

I lack confidence in my ability to manage my

finances.

I worry about running out of money in retirement.

Due care was taken so that the questions were simple to understand, non-ambiguous
and most importantly; pertinent to address the purpose of study. The questionnaire was
properly captioned and the purpose of administering the questionnaire was
communicated beforehand and they were assured about the confidentiality of the
responses recorded from them. All the scale items were subjected to reliability and
validity tests also.

All the above-mentioned constructs were measured using a five-point Likert scale,
ranging from 1 = extremely unlikely to 5 = extremely likely. The scale items were
adapted from the pre validated scales of the researchers (as mentioned in the table
number 3.1above).

The questionnaire was also subject to Reliability and validity assessment, which is
discussed in the following section. The questionnaire is attached in Appendix I of this
research report.

To collect the data, a self-administered questionnaire was applied. According to

Sekaran and Bougie (2011), self-administered questionnaires allow quick responses to
be collected.

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3.8 Reliability and Validity

Any primary data collected should have reliability and validity of measurement in order
to give accurate, reliable and consistent results that can be generalized across other
studies.

Reliability refers to the consistency or repeatability of the measure. It measures the

consistency of the responses. And so, it actually reflects the quality of measurement.

Saunder et al (2003) stated that “there are some threats for reliability that must be
captured (like, subject or participant error, subject or participant bias, observer bias and
observer error) to increase the accuracy and reliability of the research findings”. Some
of the possible errors/bias are as under:

Subject or participant bias, which may be due to the respondent's lack of experience or
knowledge or both.

Subject or participant error could be due to physical feeling or psychological stress; the
respondents may be undergoing while undertaking a survey.

Observer’s bias can be a severe risk for reliability as this occurs due to observers’
wrong/different understanding of the questionnaire.

Table 3.2: Value of Cronbach Alpha

Reliability Cronbach
Factor
Alpha
Attitude 0.799
Financial Interest and Knowledge 0.929
Financial Self-Efficacy 0.914
Perceived Behavioral Control 0.726
Risk Tolerance 0.938
Subjective Norms 0.908
Tendency towards Investment 0.917
Tendency towards Savings 0.896

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In this study, the most commonly used test for determining Reliability i.e Cronbach
Alpha test was used to check the reliability of the Likert-scaled response items, i.e all
the construct measures (i.e. Attitude, Subjective Norm, Perceived Behaviour Control,
Tendency towards savings, Tendency towards investment, Financial interest &
knowledge, Risk tolerance, Financial Self efficacy) and Investment Intention. The
Cronbach score was found to be above .75 (Table 3.2) that can be considered Reliable
measures for future assessment during the course of data collection.

Validity, on the other hand, indicates the degree to which an instrument measures what
it is supposed to measure, therefore implying that all pertinent and relevant questions
have been included as per the objectives of the study. So, it measures the ‘what’ aspects
of the questionnaire items to check whether the items rightly measure what they are
meant for.

According to Saunder et al (2003), validity refers to the authenticity or genuineness of

the outcomes. Validity refers to the degree upto which study outcome and techniques
adopted for securing such outcome are accurate, honest and on as per objective.
(Denscombe, 2003). It indicates towards the magnitude by which research rightly refers
to the matter that the scholar intends to measure.

In this study, Convergent and discriminant Validity was ascertained with AMOS
through confirmatory factor analysis, CFA

The final instrument consists of 46 items that epitomize the 8 factors ( as given in
Appendix 1)

3.9 Techniques for Analysis

The updated questionnaire was checked for consistency and completeness. The data
was put into codes for enhancing the grouping in various categories. The responses
were edited, classified, coded and tabulated to analyse quantitative data using Statistical
Package for Social Science (SPSS) version 24.0. The researcher adopted descriptive
(mean, standard deviation, frequencies and percentages) and inferential statistics
(correlation and regression analysis) to make meaning of the data and measure
relationships between the independent and dependent variable. Tables were used to
present data collected for the ease of understanding and analysis.

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The data once collected was in the first place subjected to editing and coding to make
it fit for the analysis purpose. Cooper and Schindler (2006) stated “editing is systematic
and analytical inspection of completed survey to check for coherence of data against
the criteria/objectives of the study and to check any omissions in the data”. Thus, data
editing is detection, exclusions and correction of errors wherever feasible and endorses
that highest data quality has been attained. The collected data was properly checked
again for any missing values and then labelled and analyzed using the latest statistical
software of SPSS 24. In SPSS, statistical techniques using both Descriptive and
Inferential statistics were conducted to arrive at the objectives of this study.

Descriptive statistics describe data while Inferential statistics allow one to draw
inferences from that data. Descriptive statistics sums up description in terms of mean,
median, frequency distribution and the mode to gauge mean values and standard
deviation and data spread.

Inferential statistics are mainly used in the context of hypothesis testing to deduce the
main inferences of the study. In this study, inferential statistics, involving the
multivariate analysis of factor analysis and multiple regressions have been administered
which is discussed as:-

3.9.1 Exploratory Factor Analysis

It is a technique for data reduction into distinct factors which can then be used for
further analysis in a coherent manner.

In this study, the technique used for extraction method was the Principal Component
Analysis using Varimax rotation for identifying the determinants influencing the
investment intention of the investors. It mainly involved categorizing similar items in
one particular factor, which was distinct from the other factors. These factors were
further subjected to meaningful and advanced analysis, like Multiple regression
analysis, mentioned in the subsequent paragraph.

3.9.2 Confirmatory Factor Analysis

Confirmatory factor analysis is used to test how better the measured variables
represent construct used in the study

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Constructs should only be used if they have good measurement characteristics and this
aspect was examined before estimating the various models of interest. On the basis of
theory or literature review and exploratory factor analysis, CFA is used to examine the
hypothesized relationship between constructs with investment intention.

3.9.3 Structural Factor Analysis (SEM)

It is a statistical technique which is used to analyse the structure relationships among

various constructs used in the study. SEM combines both factor analysis and multiple
regression analysis. In this study SEM is used to examine how well the assessment
predicts the various measures in the study. It also shows the relationship between
investment intention of investors and relationships between various construct used in
the study.

3.9.4 ANOVA

ANOVA is a parametric statistical technique used to compare data sets. This technique
was invented by R.A. Fisher (1918), and is thus often referred to as Fisher’s ANOVA,
as well. It is similar in application to techniques such as t-test and z-test, in that it is
used to compare means and the relative variance between them. In this study, ANOVA
test has been administered to understand the demographic association with the
determinants of the investment intention. Thereafter, to understand the Post Hoc Test
have also been conducted in this study to undertake the multiple comparisons in cases
where there is a significant association, i.e. the mean differences are significant.

In this study, Tukey’s test has been used as the Post Hoc Tests mainly to show the inter-
group comparisons, like Age group, Education, Income and Occupation w.r.t the
determinants of the Investment intention. This would not only reveal the cases where
there is significant association but also explain the extent of difference and the way the
differences are significant.

3.10 CONCLUSION

To sum up, this study presents a comprehensive and evaluative assessment of the
financial behaviour of investors based on the widely acclaimed theory of planned
behaviour (TPB) which has been extended to incorporate additional constructs as

68
determinants explaining the financial behaviour of the investors. To arrive at the results,
both descriptive and inferential statistics have been used. The detailed analysis and
findings is further presented in the next chapter of the thesis report.

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