Introduction
The purpose of this paper is to provide an analytical review of the article, “Understanding What Drives the Purchase Decision in Pension and Investment Products” authored by Gough and Nurullah (2009). The business article is peer reviewed and has been published by the Financial Services Marketing journal. The article revolves around products investment and the decision making process.
Article Review
The aim of the article is to help us understand the decision making process of a consumer while purchasing investment and pension products. In addition, the article also seeks to help us understand the effects of the decisions made on the consumers’ chosen route of distribution (Gough & Nurullah 2009). The need for conducting the study had been compelled by the ongoing expansion in the investment market. Furthermore, pension products are believed to be complex and in most cases consumers may not have adequate information required to make pension investment decisions.
The article has been arranged well with a sound abstract, methodology, findings, discussion, and analysis sections. In their research, the authors used postal questionnaires and focus group as methods of data collection. Based on the research findings of this article, the process and experience in decision making varied from depending distribution route of choice. Drawing from the research findings, most of the participants believed that purchase decisions were made before the necessary information had been obtained. Unlike the old people, young people believed that the provision of pension services by the government was not appropriate. Most of the respondents were worried that the outcomes of pension investment only came after retirement (Gough & Nurullah 2009). The main source of information required for making decisions and informed choices related to the purchase of pension products was the Independent Financial Adviser (IFA).
The major strength of the research study is that it addresses the key elements of decision making with regard to the purchase of pension products and the choice of distribution routes. The weakness of the study is that the respondents approached were aware of the outcomes of pension investment and as such, this may have compromised the research findings. Based on my personal opinion, I am convinced that the article has been written well since it meets the professional requirements. In addition, the article is educative, analytical, and helpful to both consumers’ providers of pension products. For example, the findings can assist marketing managers in the utilization of available information in determining the driving factors for the choice of channel of distribution and purchase decision as well.
Conclusion
The article is an easy read and as such, it is quite educative. Furthermore, it has provided us with factors that consumers consider as helpful while making decisions related to the purchase of pension products.
Reference List
Gough, O & Nurullah, M 2009, ‘Understanding what drives the purchase decision in pension and investment products’, Journal of Financial Services Marketing Vol.14, pp.152-172