“Influence of Behavioural Biases on Market Investment Behaviour-Mediating Role of Brand Trust”

The rationale behind this exploratory research work is to examine the influence of behavioral biases on market investment behavior with the mediating role of brand trust. The research period was of three years (2018-2021). Data was gathered by a self-structured 27-item questionnaire adapted from 3 different scales. Data from 8100 respondents was collected from all Indian states and union territories based on purposive sampling. Meticulous data analysis processes embracing data screening, confirmatory factor analysis, and covariance-based structural equation modeling have been performed. The findings of this study revealed that behavioral biases play an influential role in affecting market investment behavior. However, when an investor develops trust in a brand, the impact of behavioral biases is reduced. Convergent validity and discriminant validity of the questionnaire have been proven along with high-reliability values. The model’s originality is that it is an interdisciplinary model with a combination of behavioral biases and brand trust. The results and findings would augment the current knowledge base. The study results give investors a better grasp of behavioral biases and the role of brand trust in influencing their decision-making.