Role of stock exchange brand in financial investment decisions: Comparison of Turkey-Ireland stock markets

Embodying various symbolic meanings beyond the pure functionality for consumers today, the concept of brand has a weighted effect on the value created by institutions to their stakeholders. It is possible to associate stock exchanges, which move away from their mostly cooperative structures and demutualize as a result of such factors as globalization, financial liberalization, technological developments, need for flexibility and additional funds, with a similar branding process. For the same reason, it seems critically important for the sustainability of those branding stock exchanges to pay attention to the small-scale individual consumer perceptions beside the macro indicators concerning the entire financial system, and to develop the value propositions accordingly. Borsa İstanbul (BIST), which was demutualised in 2013, exhibits an important investment platform with all its offerings. However, it is hard to say that BIST, more than whose 60% is within the portfolios of foreign investors, shows a similar marketability success for domestic individual investors. With the low rates of stock holding and initial equity, individual investors stand aloof from the the stock market. It is envisaged that this problem mainly derives from negative consumer perceptions, beyond financial indicators, towards the market, and is thus manageable. It is also proposed that the market personality and brand equity perceptions towards the stock market have a determining effect on investment intention in this process through the mediating role of the perceived risk. The research model is tested between the developing BIST and developed Ireland Stock Market, with the latter as a criterion for the problem at the former one. The analyses show that brand personality affects brand awareness, brand quality and brand loyalty which in turn, have a positive effect on investment intention. It is found out that perceived risk has a mediating role in the relationship between brand equity and investment intention. Key Words: Financial Investment, Stock Market, Individual Investor, Brand Personality, Brand Equity, Perceived Risk