Why do individuals invest sustainably? A motivational analysis with marketing implications

Purpose This paper aims to delineate distinct investor segments based on information-seeking and decision-making profiles, investigating their differential engagement with sustainable investments and marketing-relevant motivations underlying intentions to increase sustainable investments. Design/methodology/approach Based on survey data from 526 German investors, we use latent-class analysis to discern distinct segments of investors marked by specific information-seeking and decision-making profiles in investment choices. Using moderated regression analyses, we explore general and segment-specific predictors of intentions to increase sustainable investments in the future. Findings The findings suggest a segmentation of investors into three distinct classes. In Class 1 (independent investors) decision-making occurs predominantly autonomously, with minimal reliance on professional advice. Class 2 (high-involvement investors) makes decisions independently but actively incorporates advice from their bank or professional advisors. Class 3 (low-involvement investors) exhibits a lower level of engagement in decision-making, relying more on professional advice from their bank. We identify several factors that explain the intention to invest more sustainably, both generally and within specific investor classes. Practical implications This paper provides banks with a comprehensive data basis to gain a better understanding of the customer base of investors and offers a variety of strategies to assist with the ideal placement and marketing of sustainable financial products, both in general and specific to segments of investors. Originality/value By analyzing the characteristics of German investors, this paper goes beyond the categorization of motivations for sustainable investing into ethical versus financial classifications, which may oversimplify the intricate nature of real-world investment decisions. Instead, it provides deeper insights into different investor profiles which are essential for customer-specific marketing strategies.