Social Media and Investment Choices: The Role of Demographic Variables in Shaping Investor Behaviour

Abstract

The impact of social media on the normal lifestyle of people is increasingly clear in the world, and this trend also has an impact on economic choices. This looks at ambitions to discuss whether or not socio-demographic factors, including age, gender, education, and income, can affect investor behavior in relation to the influence of social media. The study was conducted on 413 buyers in defined areas within the state of Kerala. The individuals were required to answer a questionnaire using a five-factor Likert scale, and the statistics collected were analyzed by means of non-parametric statistical tests, including the Mann-Whitney U test and the Kruskal-Wallis H test. The factor of gender, however, does not act as a mediator in this relation. It appears that education has been found to be a factor that moderates the influence of social media. Higher-educated people were more inclined to use social media as a means of making financial decisions. Another moderating variable is income – people who belong to the low-income class have been identified to depend on social media to make investments. This research indicates that it is necessary for financial organizations to create certain approaches towards different demographic classes and help them in overcoming the problems caused by the influence of social media. Digital literacy should be encouraged because it can help in overcoming the problem of false information that prevails on social media sites. The implications show that social media plays a critical role in influencing investor behavior, especially with regard to demographic factors such as age, gender, education, and annual earnings. These findings imply that financial institutions and social media sites ought to take into account how to tweak their strategies to better suit the various attributes of their audiences. This paper outlines how social media is increasingly becoming important in terms of financial behavior, and how more specific forms are required in both marketing and financial advice.