A Psychographic Analysis of Foreign Investors’ Perceptions of the Non-Financial Factors Influencing Foreign Direct Investment to Zimbabwe

Understanding the role of psychographics in influencing financial consumer behaviour is an emerging discourse. There is a discernible gap in the literature relating to the psychographic profiling of foreign investors, more-so within the African context. This study examines the potential differences existing between investors in their rating of the non-financial factors influencing the consideration of FDI market opportunities in Zimbabwe (2009-2015) based on their psychographic profiles – investor status and investor motives. A quantitative cross-sectional deductive study was conducted. Data was generated via an online survey and was analysed utilising STATISTICA 12 software. The survey data from the sample of n=305 foreign investors was analysed by employing Multivariate Analysis of Variance, Post-hoc Scheffe test and the Cohen D’s effect sizes techniques. As a result, six statistically significant psychographic-based differences were established. The findings of this study provide important empirical insights into the role of psychology in investment promotion, and more significantly provides empirical evidence of psychographic-based differences. Thus, this study expands on the extant of the literature within behavioural finance theory on the role of psychographics in foreign direct investment decision-making, as well as the feasibility of market segmentation in investment promotion for national governments by identifying heterogeneity within investor groups.