The influence of risk tolerance and brand trust on investment decision and customer engagement behavior

Understanding the impact of Risk Tolerance and Brand Trust on Investment Decisions and Customer Engagement Behavior is imperative in today's competitive financial environment. This study investigates the direct and mediating effects of Risk Tolerance and Brand Trust on Investment Decisions and...

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Bibliographic Details
Published in:International Journal of Research in Business and Social Science 2024-01, Vol.13 (5), p.441-449
Main Authors: Wijayanti, Evifana Santi, Rofiq, Ainur
Format: Article
Language:English
Subjects:
Banking industry
Brands
Competition
Consumer behavior
Consumers
Customers
Decision making
Hypotheses
Influence
Investment decision
Investments
Literature reviews
Random sampling
Risk perception
Tolerance
Variables
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Summary:Understanding the impact of Risk Tolerance and Brand Trust on Investment Decisions and Customer Engagement Behavior is imperative in today's competitive financial environment. This study investigates the direct and mediating effects of Risk Tolerance and Brand Trust on Investment Decisions and Customer Engagement Behavior. Utilizing a quantitative approach with a survey method, data were collected from 144 private customers of Bank BRI in East Java through random sampling techniques. Structural Equation Modeling (SEM) was employed for data analysis. The research reveals significant direct effects of Risk Tolerance and Brand Trust on Investment Decisions. Likewise, the direct effects of brand trust and investment decisions on customer engagement behaviour are significant. However, the influence of risk tolerance on customer engagement behaviour is not significan t. These findings underscore the in tricate dynamics of consumer behaviour in the financial sector. This study contributes to a deeper understanding of how risk perception and trust in the brand affect investment decisions and customer engagement behaviour, offering insights for strategic decision-making in the banking industry.
ISSN:2147-4478
DOI:10.20525/ijrbs.vl3i5.3469