Financial attitude based segmentation of women in India: an exploratory study

Purpose – The purpose of this paper is to identify factors influencing the financial attitudes of Indian women and then classifying Indian women based on these attitudes. These clusters are then studied for their characteristics. Design/methodology/approach – Literature reviewed led to the identification of variables influencing financial attitude of women. Nine of these variables (anxiety, interest in financial issues, intuitive decisions, precautionary saving, free spending, materialistic and fatalistic attitude, propensity to plan for long and short-term financial goals) were put through confirmatory factor analysis. These factors were then used as a basis for cluster analysis. The study was conducted in the city of Nashik, India, in 2014-2015, using convenience sampling. A self-reported questionnaire was used for the survey. Findings – Results of the study showed that only a third of the respondents did not buy any financial products. The most preferred financial products of Indian women were fixed deposits and insurance policies. Four clusters of women were identified, based on their financial attitudes – judicious consumers, conservative consumers, acquisitive consumers, unsure consumers. An analysis of the dispersion of the clusters shows that interest in financial issues has the greatest influence in the formation of clusters followed by the propensity to plan and materialistic attitude. Fatalistic attitude had the least influence in the formation of clusters. Research limitations/implications – The current study uses convenience sampling which is non-probability-based sampling and hence, lack generalizability of results. The sample for the current study is small, given the resource availability of the researcher and the unwillingness of women to participate in the survey. Practical implications – The paper provides important insights for the marketers of financial services, in understanding the women consumers in the expanding Indian market. Social implications – An understanding of the women consumers would help marketers develop products and financial literacy programs that suit the requirements of each specific group. By doing so the programs and communcation would be more effective. Originality/value – This paper discusses the financial attitudes and behavior of Indian women and further clusters these women based on their financial attitudes.