Effect of service quality on intention to invest in mutual funds: attitude as mediator and awareness as moderator

Purpose Using SERVQUAL model, this study aims to enhance understanding of how service quality influences mutual fund investment intentions, emphasizing the mediating role of attitude towards mutual fund investment and the moderating role of awareness of mutual funds. Design/methodology/approach An online survey of 230 respondents was conducted to examine their investment intentions towards purchasing mutual funds. The study employed partial least squares-structural equation modeling and importance performance map analysis (IPMA) to evaluate the measurement and structural model and highlight key improvement areas. Findings The results indicate that attitude is a key determinant of investment intention and acts as a mediator between several service quality factors and mutual fund investment intentions. Additionally, the role of awareness was confirmed as the determinant of attitude and as a moderator between the relationship of service quality factors and investment intention. Originality/value This study offers valuable insights for managers and researchers, advocating a shift from traditional marketing approaches to customer-centric strategies. It underscores the importance of service quality in shaping mutual fund investment intentions, with investor attitude serving as a mediator. Through IPMA analysis, the study identifies key improvement areas, particularly awareness and assurance. It recommends reallocating resources from less critical factors, such as tangibility and responsiveness, to more essential elements like empathy and reliability.