IPRC - 2019
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/20881
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Item Personality Trait Model to Assess Creditworthiness(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Mawela, M.R.T.D.; Peter, S.; Niwunhella, H.Despite the fact that financial institutions evaluate the creditworthiness of loan applicants a significant number of them fail or fall behind on their promised payments. While in some cases, this could be due to unforeseen external circumstances, inherent internal characteristics of the applicant also contributes towards this delinquency. A non-performing loan (NPL) is an amount of borrowed money upon which the borrower has failed to meet the scheduled payment, generally 90 or more days. The NPLs of financial institutions over the last few years have been rising, despite even stringent requirements enforced by the regulatory authorities. This rising proportion of non-performing loans, if left unchecked could lead to a systematic failure of the banking system and could have a catastrophic impact on the economy. Therefore, there is a need for a model that could filter applicants who could potentially default. Lending takes place when trust is developed between lender and the borrower. Studies carried out previously have put forward various quantitative and qualitative models upon broad microeconomic and demographic factors to assess lender borrower trust. However, the impact of personality characteristics of the borrower has not been sufficiently exploited in this regard. Trust is a complicated behaviour which has been defined from different perspectives in numerous disciplines. Literature depicts that trustworthiness of the trustee is a key antecedent of trust. The study proposes an integrated model to assess the trustworthiness of the borrower based on their personality characteristics. The study modifies the HEXACO personality model by including guilt proneness as the seventh dimension to the model. A systematic set of hypotheses are formulated on the basis of the conceptual model and a framework is developed to analyse the impact of personality traits on trustworthiness. The developed model has been initially validated through expert opinion and is validated through an empirical study using a survey questionnaire intended to capture personality traits using modified HEXACO model and trustworthiness using David Maister’s trust equation administered to a sample of loan eligible people. Furthermore, data obtained from financial institutes engaged in lending business will also be used in the validation process.Item A Model To Determine Factors Influencing the Decision-Making Process of Consumer Online Purchasing in Sri Lanka(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Wickramasinghe, D.M.; Peter, S.; Niwunhella, H.There are a wide range of products and services available online where the consumers can conveniently shop anytime from anywhere in the world. Despite the steady growth in e-commerce over the past few years, the rate of penetration of online shopping in Sri Lanka remains low. The available literature contains evidence that advocate that there is consumer reluctance, resistance and hesitation to engage in online shopping, due to diverse reasons. Inarguably, online and offline channels present different shopping experiences, even in instances where the same product is purchased. It is therefore, vital to investigate the consumer behaviour related to online shopping. According to well established literature, negative attitudes and motivation of the consumer, lack of trust and less propensity to take risks impedes the consumer-online vendor relationship. Consequently, a conceptual framework has been developed integrating perspectives from consumer behaviour, trust and risk propensity as a significant step towards a better understanding of the consumer. It has been developed primarily based on the theory of planned behaviour, Mayer’s trust model, and the risk propensity from Pablo and Sitkin Model. The conceptual model investigates the main antecedents which influences consumers to engage in online shopping through the identified predictors. A systematic set of hypotheses are formulated on the basis of the conceptual model and a methodology is developed for testing and analysing such behaviour. While the constructs from theory of planned behaviour and consumer trust have an impact on the purchasing behaviour, the risk propensity of the consumer has a moderating effecting on the antecedents. The conceptual model has been initially validated by expert opinion. The conceptual model will be tested subsequently, through an empirical study. The final model would be of use to the marketing practitioners, academic researchers and the industry.Item Model to Grab the Digital Natives’ Purchasing Behaviour(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Nadeesha, K.; Suren, P.; Niwunhella, H.Generation Z is considered to be the most puzzling consumers as they appear to behave as tech-savvy and educated users of technologies in the marketplace. These digital natives are predicted to account for around 40% of all consumer shopping by 2020. Ninety-three percent of parents of this generation agree that Generation Z offspring are going to be the significant influencer of household spend. Their cognitive power and social media networking have made them the market mavens who possess a wide range of information and consumer knowledge about many dimensions of markets. To be the leader in the market with so many options due to free trade economy, marketers have to escalate their knowhow about their customers if they want to capture the attention of this segment of the market. Though there are models to evaluate the consumer behaviour like Engel-Blackwell-Miniard model and Nicosia model of customer behaviour, the practicality in the application of them is vague due their mechanical overview of human behaviour. In order to catch the attention of the discerning Generation Z consumer, marketers have to venture the extra mile to develop a unique model that has the ability to factor the unique characteristics of this market segment. The paper proposes a conceptual model to determine the purchasing behaviour of Generation Z consumers as an extended model of Theory of Planned Behaviour (TPB). Theory of Planned behaviour is a prominent consumer behavioural model which distinctly elaborate the factors that affect consumer behavior. The model collaborates physical, psychological and sociological aspects without limiting to a single field. In TPB, attitudes, subjective norm and perceived behavioural control act as the main constructs to determine the purchasing behaviour. The proposed extended model of TPB incorporates the additional constructs of market mavenism, social identity and technology self-efficacy to capture the specific characteristics of Generation Z. Market mavenism captures the degree of influence from the consumer knowledge, social identity captures the influence of self-identity in social media and technology self-efficacy captures the efficacy in using computing technologies and the Internet by Generation Z, for product purchasing decision making. Expert opinion from selected personnel in academia and industry were used to validate the proposed model. Implications of this validated model can be utilized to assist in predicting potential consumer adoption behaviour and in designing favourable shopping environments that are compatible with these specific consumer traitsItem A Behavioural Model to Assess the Risk Perception and Behaviour of Individuals in Investment Decisions(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Mendis, M.N.M.Y.; Peter, S.; Niwunhella, H.Risk behaviour is the controlled conduct of people in contexts with uncertainty, where there is a possibility of the outcome received deviating from the outcome expected. As any kind of investment bears a certain proportion of risk, investors qualify as a competent sample in analyzing risk behaviour. Investor behaviour depends on external factors such as macro stability, expected earnings, broker recommendations, dividends paid and stock marketability, as well as internal factors such as herd behaviour, optimism and risk appetite of the investor. In developing countries like Sri Lanka, the investment markets are less informationally efficient and investor risk appetite is a less prominent factor. Therefore, the need of upgrading the investment culture of a developing country through a customized model which accurately determines the investor risk appetite has become a timely need. Although numerous studies have been carried out, use of a psychological approach to explain the investor behaviour remains relatively unexplored. The overarching goal of this study is to assess the determinants of risk behaviour and how these factors can be used in developing a comprehensive model that facilitates categorization of people according to their risk profiles. This study focuses on interpreting the individual investor behaviour through a combination of the cognitive psychological approach of perceived self-efficacy and the reconceptualized model of risk behaviour in a developing country context. Perceived self-efficacy is the concept where people’s beliefs and perceptions on their own personal abilities affect their actions taken to reach designated goals. The reconceptualized model suggests that an individual’s risk behaviour is dominated by two major characteristics, namely risk propensity and risk perception. It was further specified that risk propensity positively affects the risk-seeking behaviour while risk perception has a negative effect on it. The reconceptualized model incorporates the cognitive psychological approach of perceived self-efficacy to the risk behaviour model. The risk behaviour model has been adjusted by removing the organizational-related factors from it. The developed model is validated through expert opinion and data obtained from investors who engage in high risk investments.