Role of Digitalization Usage and Financial Literacy in Shaping Retail Investment Behaviour among Retail Investors

Abstract

The influence of digitization on the retail sector has been profound, resulting in a notable shift in consumer habits and shopping behaviors. The growing prevalence of digital devices and internet access has catalyzed a swift digital evolution within the Indian retail industry. Elements such as digitalization, smartphone adoption, and internet accessibility influence this transformation. To ensure the nation's technological empowerment in the digital realm, the Indian government launched Digital India. The analysis pinpoints the primary factors influencing digital trends within the online retail domain, emphasizing the necessity for a structured framework to improve the digitization process in the retail sector. This process will significantly impact suppliers, retailers, consumers, and employees alike. This study seeks to examine the connection between awareness, the utilization of digitalization, and financial literacy in relation to the financial strength of retail investors. This study chose a total of 154 respondents engaged in retail markets within the Chennai district. The samples were selected using a convenience sampling technique, and a questionnaire served as the study instrument. The statistical tools employed to validate the hypotheses in accordance with the objectives are Karl Pearson’s correlation coefficient and one-way ANOVA. The data has been analyzed using SPSS v26. The Cronbach’s alpha of 0.829 (82.9%) demonstrates the reliability of the study. The connection between awareness and utilization of digitalization, along with financial literacy, is recognized as significant and positive in relation to financial strength. The findings indicate a notable impact of age, education, annual income, and employment on the financial strength of retail investors.