Consumer Preferences Toward Socially Responsible Investments in Germany: An Empirical Analysis Based on Religion

Abstract

The chapter aims to study consumer perceptions and preferences toward socially responsible investments (SRIs) offered by the financial institutions from nine major cities in Germany based on perceived religiosity, age, and educational level. Analysis of variance and principal component analysis of a sample of 342 respondents in the 18-60 age group revealed that Muslims are likely to be more conscious than Christians and Jewish towards SRIs. The study also finds that higher education, knowledge, and awareness of the consumers have a positive effect on their preferences in using services of financial institutions while age is not the main factor in the adoption of SRIs. The findings of the study are important for financial institutions, especially for those offering socially responsible investments. Financial institutions can better offer their products and services by understanding the perceptions of consumers and therefore, better position themselves in changing market dynamics.