Exploring Investment Behavior among Young Consumers: A Review and Research Agenda

Abstract

This paper provides a comprehensive theoretical and methodological review of conceptual and empirical research on investment behaviour among young consumers, particularly undergraduates, who have increasingly become active in the financial market. The main objective of the paper is to clarify how rational, behavioural, cognitive, and social factors shape young people’s investment intentions as well as choices, while identifying gaps in research conducted so far that can inform future research agenda. The study achieved its aim by systematically reviewing dominant theoretical frameworks that have been used in studying investment behaviour among young consumers, including the Theory of Planned Behaviour, Behavioural Finance Theory, Prospect Theory, Dual Process Theory, and Rational Choice Theory. It also synthesized empirical studies that have employed quantitative methods such as regression analysis, ANOVA, and structural equation modelling in exploring the phenomenon of investment among young consumers. Result from the review, suggest that existing studies rely heavily on cross-sectional survey data and quantitative techniques, with limited use of qualitative, longitudinal, or experimental designs. Findings from the reviewed studies consistently show that investment behaviour among young consumers is multidimensional, shaped by financial literacy, perceived behavioural control, emotional biases (such as overconfidence and loss aversion), parental influence, peer dynamics, and digital financial environments. Furthermore, the review showed that while rational evaluation plays a role in investment decisions, behavioural and contextual factors frequently drive decision-making. The paper therefore recommends greater theoretical integration, the adoption of mixed-method and longitudinal approaches, and increased attention to digital investment platforms. It further encourages the development of hybrid models that combine rational and behavioural perspectives in explaining investment behaviour among young investors.

Keywords: Behavioral finance, financial literacy, Investment behavior, Responsible marketing, Undergraduate students, young consumers