FINANCIAL ASSISTANCE ON CUSTOMERS' PURCHASE DECISION: A STRUCTURE EQUATION MODELING APPROACH

Abstract

Purpose – The main purpose of this study was to investigate the features of financial assistance from financial institutions, especially, in auto loan segment and the impact of those features on customer`s financial purchase decision to buying any automobile products (two wheelers, three wheelers, and four wheelers), with special reference to their state, gender, geographic area and family type. Design/methodology/approach - The conceptual framework was developed after extensive review of past research. Thus, data was collected through a mail-intercepts approach and personal interview method from customers of auto loan residents of Punjab and Chandigarh. The data was analyzed using data reduction factor analysis technique and multiple group analysis through structure equation modeling technique. Findings – Results suggest that all five factors of financial assistance have a direct impact on customer`s financial purchase decision whether they are male or female, residents of Punjab or Chandigarh, married or individual, and last but not least, nuclear family or joint family. Practical implication – The present study shows that automobile industry and the role of available auto loan facility can surge the number of auto loan holders, increases the sale of all automobile products, the overall growth of automobile segment, and last but not least, enhancement in the social status of people. Keywords: Financial assistance, Auto loan, Automobile products, Financial purchase decision, Financial institutions