Abstract
We investigate motivational drivers of financial advisor use, accounting for investor heterogeneity, with the goal of helping institutions increase the use of financial advisor services. The results from a latent class choice model reveal two distinct segments that differ in their approach to the financial advice decision. While higher levels of risk tolerance, trust, and self-efficacy increase financial advice use for both segments, albeit at much higher propensities for Segment 1, personality only matters for Segment 1. Moreover, their regulatory focus differs with Segment 1 being promotion and Segment 2 being prevention focused. Using these results, we offer suggestions for marketing strategies.
| Original language | English |
|---|---|
| Journal | Journal of Retailing and Consumer Services |
| Volume | 54 |
| Publication status | Published - May 2020 |
Keywords
- Financial advisors
- Consumer heterogeneity
- Latent class choice model