51 © 2025 by the authors; licensee Asian Online Journal Publishing Group Economy Vol. 12, No. 2, 51-59, 2025 ISSN(E) 2313-8181: / ISSN(P) 2518-0118: DOI: 10.20448/economy.v12i2.6780 © 2025 by the authors; licensee Asian Online Journal Publishing Group Bridging Finance and Marketing: The role of psychological traits and social factors in investment decisions and positive word-of-mouth Poltak Sinaga1 Deddy Marciano2 Amelia Amelia3 ( Corresponding Author) 1,3Pelita Harapan University, Indonesia. Email: poltak.sinaga@uph.edu 2,3Universitas Surabaya, Indonesia. Email: marciano@staff.ubaya.ac.id Email: ameliafbe@staff.ubaya.ac.id Abstract This study investigates the various factors that influence investment decision-making, specifically focusing on five key variables: Family Influence, Innovation, Need for Achievement, Risk-Taking, and the relationship between Investment Decisions and Positive Word of Mouth. A quantitative research approach was employed, and data were analyzed using SPSS version 22.0. The study surveyed 250 respondents, consisting mostly of e-commerce users in Indonesia. The purpose was to examine how psychological and social variables impact individuals’ investment behaviors and how these behaviors contribute to subsequent outcomes such as word-of-mouth promotion. Five hypotheses were formulated and tested to determine the significance of each factor. The findings revealed that four out of the five hypotheses were supported. Family Influence, Innovation, and Need for Achievement were found to have a significant and positive effect on investment decision- making. In contrast, Risk-Taking showed no significant effect. Furthermore, Investment Decisions were shown to have a meaningful and positive relationship with Positive Word of Mouth, suggesting that confident and well-informed investment behavior can lead to increased consumer advocacy. The results underscore the importance for marketers and business strategists to understand and enhance the key drivers of investment behavior. By addressing these factors effectively, companies can encourage more favorable consumer decisions and foster stronger brand loyalty through word-of-mouth communication. Keywords: Family influence, Innovation, Investment decision-making, Need for achievement, Positive word of mouth, Risk-taking. Citation | Sinaga, P., Marciano, D., & Amelia, A. (2025). Bridging finance and marketing: The role of psychological traits and social factors in investment decisions and positive word-of-mouth. Economy, 12(2), 51-59. 10.20448/economy.v12i2.6780 History: Received: 14 May 2025 Revised: 11 June 2025 Accepted: 13 June 2025 Published: 16 June 2025 Licensed: This work is licensed under a Creative Commons Attribution 4.0 License Publisher: Asian Online Journal Publishing Group Funding: This research is supported by “Universitas Pelita Harapan, Indonesia”. Institutional Review Board Statement: The Ethical Committee of the Universitas Pelita Harapan, Indonesia has granted approval for this study Transparency: The authors confirm that the manuscript is an honest, accurate, and transparent account of the study; that no vital features of the study have been omitted; and that any discrepancies from the study as planned have been explained. This study followed all ethical practices during writing. Data Availability Statement: The corresponding author may provide study data upon reasonable request Competing Interests: The authors declare that they have no competing interests. Authors’ Contributions: All authors contributed equally to the conception and design of the study. All authors have read and agreed to the published version of the manuscript. Acknowledgements: The authors would like to thank UPH and Universitas Surabaya also the anonymous referees for their valuable comments and suggestions. Contents 1. Introduction ...................................................................................................................................................................................... 52 2. Literature Review ............................................................................................................................................................................ 53 3. Research Issue and Methodology ................................................................................................................................................. 55 4. Finding and Discussion ................................................................................................................................................................... 55 https://creativecommons.org/licenses/by/4.0/ https://creativecommons.org/licenses/by/4.0/ https://www.doi.org/10.20448/economy.v12i2.6780 https://orcid.org/0000-0002-3927-8320 https://orcid.org/0000-0001-6216-5319 https://orcid.org/0000-0002-3579-1995 Economy, 2025, 12(2): 51-59 52 © 2025 by the authors; licensee Asian Online Journal Publishing Group 5. Discussion .......................................................................................................................................................................................... 57 6. Conclusion ......................................................................................................................................................................................... 57 7. Research Limitation ........................................................................................................................................................................ 58 References .............................................................................................................................................................................................. 58 Contribution of this paper to the literature This study uniquely integrates psychological, social, and technological factors specifically family influence, need for achievement, risk-taking behavior, and innovation to examine their combined impact on investment decisions and positive word of mouth, offering a holistic perspective rarely addressed in previous investment behavior research. 1. Introduction The process of investment decision-making has undergone significant transformation over time. Initially, investment activities were primarily conducted through traditional methods, where investors relied on direct interactions with financial advisors and institutions. This conventional approach often involved personalized advice and portfolio management services provided by Registered Investment Advisors (RIAs), who operated independently from banks and other financial entities (Bodie, Kane, & Marcus, 2014). However, as financial markets evolved, both individual and institutional investors sought to enhance efficiency and accessibility through technological advancements and financial innovations (Markowitz, 1991). One of the most notable developments has been the emergence of digital investment platforms, which have significantly expanded access to financial markets. These platforms democratize investing by providing cost- effective, user-friendly solutions that cater to a broader demographic, including individuals with limited financial knowledge or resources (Tapia & Yermo, 2021). The rise of digital trading platforms, robo-advisors, and algorithmic investment tools has transformed traditional investment strategies, making financial markets more accessible and fostering increased participation (D’Hondt, De Winne, & Van Achter, 2015). Beyond technological advancements, investment decisions are also deeply influenced by psychological and social factors, particularly family dynamics. Family plays a crucial role in shaping financial literacy, risk tolerance, and long-term financial behavior. Individuals who grow up in financially literate households are more likely to develop prudent investment habits, whereas those from risk-averse families may demonstrate conservative investment behaviors (Lusardi & Mitchell, 2014). Furthermore, family influence extends to investment attitudes, shaping perceptions of market opportunities and risk assessment (Guiso, Sapienza, & Zingales, 2008). In addition to family influence, the need for achievement serves as a critical driver of investment behavior. Investors with a strong need for achievement are motivated by financial success and personal growth, which influences their willingness to take calculated risks and explore innovative investment strategies (McClelland, 1987). These individuals are more likely to seek high-reward opportunities, engage in active portfolio management, and adapt to emerging market trends (Barber & Odean, 2001). Their ambition often fuels the adoption of novel investment tools and strategies, thereby contributing to the expansion of digital investment platforms (D’Hondt et al., 2015). Risk-taking behavior is another essential factor shaping investment decisions. Investors with a higher risk tolerance tend to embrace diversified portfolios, explore emerging markets, and experiment with unconventional financial instruments. Their propensity to take risks is influenced not only by personal financial goals but also by external encouragement, including advice from family members or positive experiences shared by peers (Kahneman & Tversky, 1979). Risk-tolerant investors are more receptive to adopting financial innovations, further reinforcing the role of digital platforms in modern investment strategies (Charness, Gneezy, & Imas, 2013). Furthermore, positive word of mouth (WOM) has emerged as a powerful force in shaping investor behavior. Successful investment experiences often lead investors to share insights with their social circles, fostering trust and encouraging broader market participation (Brown & Reingen, 1987). Social networks, both offline and online, serve as key channels for investment-related discussions, with peer recommendations often carrying more weight than traditional financial marketing efforts (Bikhchandani, Hirshleifer, & Welch, 1992). The widespread use of digital platforms, including social media and investment forums, has amplified the influence of WOM, enabling investors to exchange knowledge and strategies more efficiently. As financial markets continue to evolve, investors face new challenges and opportunities. Economic fluctuations, technological disruptions, and changing market dynamics necessitate a strategic approach to investment decision-making. A combination of financial literacy, adaptability to innovation, and risk assessment plays a crucial role in navigating modern investment landscapes (Lusardi & Mitchell, 2011). Additionally, empathy- driven investment strategies—those that account for investors’ subjective financial goals and experiences—can enhance decision-making processes and support long-term financial growth (Shefrin & Statman, 2000). This research contributes significantly to the understanding of investment behavior by integrating psychological, social, and technological perspectives. By examining the interconnected influences of family, innovation, need for achievement, and risk-taking on investment decisions and positive word of mouth, this study provides valuable insights for financial institutions, policymakers, and investors. The findings highlight the importance of financial education, the promotion of technological innovation in investment services, and leveraging social networks to enhance investor confidence and market participation. In conclusion, the interplay between family influence, innovation, need for achievement, and risk-taking behavior plays a pivotal role in shaping investment decisions and fostering positive word of mouth. As financial markets undergo continuous transformation, investors and financial service providers must adapt to these evolving dynamics, embracing innovative strategies that enhance investment experiences and outcomes. Economy, 2025, 12(2): 51-59 53 © 2025 by the authors; licensee Asian Online Journal Publishing Group 2. Literature Review 2.1. Family Influence According to Mandell and Klein (2009) family plays a fundamental role in shaping an individual's financial literacy, which significantly impacts investment decision-making. Financial literacy, acquired through parental guidance and early financial experiences, influences how individuals perceive risks and opportunities in investment activities. Families that engage in discussions about financial management tend to foster greater confidence and a proactive investment mindset among their members. Lusardi and Mitchell (2014) also found that family influence extends beyond financial education to shaping risk tolerance. Individuals raised in families with a strong investment culture are more likely to take calculated investment risks, whereas those from risk-averse families tend to prefer conservative financial strategies. This aligns with the findings of Shim, Barber, Card, Xiao, and Serido (2010) who emphasized that parental financial behaviors serve as role models, reinforcing long-term financial habits and decision-making patterns in adulthood. Moreover, Jorgensen and Savla (2010) noted that parental influence on financial attitudes significantly affects the ability to assess investment opportunities. Parents who actively engage in wealth-building activities and discuss financial strategies with their children contribute to higher financial confidence and a greater likelihood of investment participation. In addition, Gudmunson and Danes (2011) highlighted that intergenerational financial transmission plays a crucial role in shaping investment behavior. Children from families with a history of asset accumulation and stock market participation are more inclined to make informed investment decisions, relying on parental guidance as a reference point for their own financial choices. H1: Family influence has a significant effect on investment decision-making. 2.2. Innovation According to Schindler (2017) financial innovation has significantly transformed investment decision-making by increasing accessibility, efficiency, and the availability of data-driven insights. Technological advancements such as robo-advisors, algorithmic trading, and blockchain-based investment platforms have reshaped traditional investment strategies, allowing investors to make more informed and automated decisions. Cheng and Quiring (2019) emphasized that the integration of artificial intelligence (AI) and machine learning in financial markets has improved the ability to analyze complex market trends, predict asset price movements, and optimize portfolio allocations. These innovations reduce human biases and improve decision-making by processing vast amounts of data with greater accuracy. Furthermore, Philippon (2016) argued that financial innovation has led to a democratization of investing, enabling retail investors to participate in markets that were once dominated by institutional players. The rise of low-cost investment platforms, fractional shares, and exchange-traded funds (ETFs) has lowered the barriers to entry, making investment opportunities more inclusive. Lerner and Tufano (2011) highlighted that innovations in fintech have revolutionized risk assessment and investment strategies, providing investors with real-time risk analytics and automated financial planning tools. These developments help investors optimize asset allocation while considering risk tolerance and financial goals. Moreover, Chishti and Barberis (2016) found that fintech innovations have increased investor engagement by offering customized investment solutions based on behavioral finance principles. Personalized recommendations, automated rebalancing, and AI-driven financial coaching have made investing more accessible, even for individuals with limited financial literacy. H2: Innovation has a significant effect on investment decision-making. 2.3. Need for Achievement According to McClelland (1961) individuals with a high need for achievement are more likely to set ambitious financial goals and seek investment opportunities that align with their aspirations for success. This psychological drive encourages investors to engage in strategic decision-making, focusing on maximizing returns and optimizing portfolio performance. Rauch and Frese (2007) found that individuals with strong achievement motivation demonstrate higher financial risk tolerance and proactive investment behavior. Their desire for accomplishment leads them to explore innovative investment strategies, such as venture capital, high-growth stocks, and alternative assets. Furthermore, Barba-Sánchez and Atienza-Sahuquillo (2012) argued that need for achievement correlates with entrepreneurial investment behavior, where individuals are more inclined to invest in businesses or startups with high-growth potential. These investors often exhibit long-term commitment and strategic patience, allowing them to withstand short-term market fluctuations. Zhao, Seibert, and Hills (2005) also found that achievement-oriented investors tend to leverage financial knowledge and analytical skills to make informed decisions, reducing the impact of emotional biases. Their structured approach to investing contributes to more sustainable financial growth and portfolio diversification. H3: Need for Achievement has a significant effect on Investment Decision-Making. 2.4. Risk Taking Investment decisions inherently involve risk, and individuals with a higher risk tolerance tend to engage in more diversified and aggressive investment strategies (Kahneman & Tversky, 1979). The Prospect Theory suggests that risk-taking behavior is influenced by how investors perceive potential gains and losses, with risk- seeking individuals more likely to invest in volatile assets such as stocks, cryptocurrencies, and derivatives. Blais and Weber (2006) emphasized that risk-taking behavior is shaped by both cognitive and emotional factors, including past investment experiences, financial literacy, and market confidence. Investors with a high-risk appetite are more willing to explore emerging markets, new asset classes, and innovative financial instruments. Furthermore, Grinblatt and Keloharju (2009) found that personality traits, such as overconfidence and optimism, significantly influence risk-taking behavior in financial decisions. Investors who perceive themselves as Economy, 2025, 12(2): 51-59 54 © 2025 by the authors; licensee Asian Online Journal Publishing Group financially competent are more likely to take risks, believing they can outperform the market through informed decision-making. Additionally, Panno (2019) found that risk-taking is positively correlated with investment success when paired with financial knowledge and analytical decision-making skills. Well-informed risk-takers benefit from higher returns and portfolio growth over time. H4: Risk-Taking has a significant effect on Investment Decision-Making. 2.5. Investment Decision According to Arndt (1967) positive word of mouth (WOM) is one of the most influential factors in financial decision-making. Investors who have positive experiences with financial products or services are more likely to share their insights with peers, influencing the investment behavior of others. Bughin, Doogan, and Vetvik (2010) found that peer recommendations and social influence play a crucial role in investment decisions, particularly in financial markets where uncertainty is high. Positive WOM creates trust and credibility, encouraging more individuals to participate in investment activities. Furthermore, East, Hammond, and Lomax (2008) argued that investors who achieve significant financial gains are more inclined to share their success stories, leading to greater adoption of investment platforms, financial products, and trading strategies. This social validation effect reinforces market participation and investor confidence. Berger and Milkman (2012) emphasized that investments with high perceived value generate more WOM, as investors are eager to discuss profitable ventures and strategies. Additionally, investment firms and financial service providers benefit from customer advocacy, where satisfied investors actively promote their services. H5: Investment Decisions have a significant effect on Positive Word of Mouth. 2.6. Positive Word of Mouth Positive Word of Mouth (WOM) plays a significant role in shaping investment decisions by influencing investor perceptions, trust, and market participation. One relevant theory is the Diffusion of Innovation Theory Rogers (1962) which explains how new financial products or investment strategies spread through social networks. Investors who successfully adopt innovative investment tools, such as robo-advisors or exchange-traded funds (ETFs), tend to share their positive experiences, encouraging wider adoption. Additionally, the Social Influence Theory Kelman (1958) suggests that investors rely on social validation from peers or financial experts when making investment decisions. Positive recommendations from trusted individuals or communities enhance credibility and persuade others to invest in similar assets. The Signaling Theory Shefrin and Statman (2000) also plays a crucial role in investment-related WOM, as successful investors act as signals of financial credibility. When individuals share their positive investment experiences, they unintentionally provide signals to others about the reliability and profitability of certain financial instruments. Furthermore, the Expectation Confirmation Theory (Oliver, 1980) states that investors who experience returns exceeding their expectations are more likely to share favorable reviews, reinforcing confidence in particular investment products or platforms. Lastly, the Prospect Theory Kahneman and Tversky (1979) suggests that individuals evaluate investment gains and losses asymmetrically. Investors who experience higher-than-expected gains are more likely to spread positive WOM, creating a ripple effect that attracts new investors to the market. These theories collectively highlight the powerful impact of positive WOM in shaping investment behaviors and fostering greater financial market participation. Economy, 2025, 12(2): 51-59 55 © 2025 by the authors; licensee Asian Online Journal Publishing Group Figure 1. Research model. 3. Research Issue and Methodology This study utilizes the conceptual framework shown in Figure 1 to examine the intricate relationships among family influence, innovation, need for achievement, and risk-taking behavior in shaping investment decisions and encouraging positive word-of-mouth. Gender and investment experience are included as control variables to account for demographic and experiential differences. Data were collected from 250 respondents across Indonesia, all of whom had prior investment experience and had shared positive word-of-mouth related to their investment activities. Of the participants, 39.23% were male and 60.77% were female. A purposive sampling method was used to target individuals with relevant investment backgrounds. The survey was distributed over a three-day period, and participants were given one week to complete and return the questionnaire. The self-administered questionnaire was designed to measure investment behavior and decision- making in relation to the study’s key constructs. Strict methodological standards were followed throughout the data collection process to ensure reliability and validity. Participation was entirely voluntary, ensuring that the responses were authentic and free from coercion. 4. Finding and Discussion 4.1. Characteristics of Respondents In every research study, understanding the characteristics of the respondents is crucial. One important aspect that influences differences in individual views, behavior, and preferences is gender and age. Table 1. Characteristics of respondents based on gender. No Description Qty Percentage 1 Male 138 39.23% 2 Female 112 60.77% Total Qty 250 250 Source: Questionnaire respondents, 2025. Based on Table 1, out of 250 respondents, 138 (55.2%) are women and 112 (44.8%) are men, indicating that female investors make up the majority in this study. Psychological research highlights that men and women often exhibit different investment behaviors: men typically demonstrate higher risk tolerance and prefer aggressive strategies, while women are generally more risk-averse and inclined toward stable, long-term investments (Barber & Odean, 2001). The greater representation of female investors in this study may reflect a broader shift, with more women gaining financial independence and actively engaging in investment decisions. This trend is consistent with research showing increased female participation in financial decision-making, driven by rising financial literacy and improved access to digital investment platforms (Lusardi & Mitchell, 2014). Economy, 2025, 12(2): 51-59 56 © 2025 by the authors; licensee Asian Online Journal Publishing Group Table 2. Characteristics of respondents based on age. No Description Qty Percentage 1 21 – 30 133 53% 2 31 – 40 90 36% 3 41 – 50 18 7% 4 51- 56 9 4% Total qty 250 100% Source: Questionnaire respondents, 2025. Based on Table 2, all respondents fall within the productive age group in Indonesian society. The majority of respondents are aged 21-30 years, comprising 53% of the sample. This is followed by respondents aged 31-40 years, who account for 36%, while those aged 41-50 years represent 7%. Lastly, respondents aged 51-56 years constitute 4% of the total sample. 4.2. Validity, Reliability and Multicollinearity Test The data obtained from the questionnaire were analyzed using SPSS software. The outputs from this analysis include the corrected item-total correlation and Cronbach’s alpha, which assess the validity and reliability of each questionnaire item based on the indicators of each variable. To meet the validity criteria, the corrected item-total correlation must exceed the R Table value (0.196). For the reliability test, Cronbach’s alpha must be greater than 0.7 (Ghozali, 2017). Additionally, to pass the multicollinearity test, the Variance Inflation Factor (VIF) must be less than 10, and the tolerance value must be greater than 0.1. Table 3. Validity, reliability, and multicollinearity test. Variable Indicator Validity test Reliability test Tolerance VIF Family influence (FI) FI1 0.724 0.874 0.525 1.904 FI2 0.787 FI3 0.758 Innovation (IN) IN1 0.819 0.916 0.458 2.185 IN2 0.853 IN3 0.819 Need for achievement (NA) NA1 0.771 0.894 0.387 2.583 NA2 0.813 NA3 0.791 Risk taking (RT) RT1 0.739 0.878 0.427 2.340 RT2 0.814 RT3 0.739 Investment decision (ID) ID1 0.773 0.876 - - ID2 0.796 ID3 0.710 Positive word of mouth (PWOM) PWOM1 0.778 0.911 - - PWOM2 0.874 PWOM3 0.814 Based on the tests for data validity, reliability, and multicollinearity from Table 3, it is confirmed that all indicators used to estimate each variable are valid and reliable, and they also pass the multicollinearity test. 4.3. Normality Test The normality test is conducted to assess whether the residuals in the regression model follow a normal distribution (Ghozali, 2017). In this context, the Kolmogorov-Smirnov test is typically employed. If the Asymp. Sig. value exceeds 0.05, it indicates that there is no significant deviation from normality, and thus the residuals are considered to follow a normal distribution. Table 4. Normality test. No. Equation Asymp. Sig. (2-tailed) Critical number Description 1. FI, IN, NA, RT→ ID 0.200 0.05 Normal 2. ID → PWOM 0.052 0.05 Normal According to Table 4, the Asymp. Sig. value exceeds 0.05, indicating that there is no significant deviation from normality in the data. Therefore, it can be concluded that the data collected in this study are approximately normally distributed. Table 5. Multiple regression and T-test. Variable Standardized Coef. Sig Description FI*ID 0.255 0.000 Hypothesis accepted IN*ID 0.139 0.006 Hypothesis accepted NA*ID 0.520 0.000 Hypothesis accepted RT*ID 0.045 0.387 Hypothesis rejected ID*PWOM 0.781 0.000 Hypothesis accepted Note: * = The influence of the independent variables on the dependent variable. Economy, 2025, 12(2): 51-59 57 © 2025 by the authors; licensee Asian Online Journal Publishing Group 4.4. Multiple Regression and T-Test The results of the t-test significance from Table 5 indicate that five hypotheses were tested. The results show that hypotheses H1, H2, H3, and H5 are supported, as the t-test values for these variables are below 0.05. Therefore, it can be concluded that H1 (Family Influence), H2 (Innovation), H3 (Need for Achievement), and H5 (Investment Decision * Positive Word of Mouth) are supported. However, hypothesis H4 (Risk Taking * Investment Decision) is rejected, as the t-test value is above 0.05 (0.387). Additionally, from Table 5, it can be concluded that the Need for Achievement (NA) has the largest positive direct influence on Investment Decision (ID), with a regression coefficient of 0.520. The factors with the greatest positive influence on Investment Decision are Family Influence (FI) with a coefficient of 0.255, followed by Innovation (IN) with a coefficient of 0.139, and lastly, Risk Taking (RT) with a coefficient of 0.045. Table 6. F-test. Variable Sig Standard Hypothesis FI, IN, NA, RT→ ID 0.000 0.05 Hypothesis Accepted ID → PWOM 0.000 0.05 Hypothesis Accepted 4.5. F-Test Based on Table 6, it can be stated that there is a significant influence of Family Influence (FI), Innovation (IN), Need for Achievement (NA), and Risk Taking (RT) on Investment Decision (ID), as well as an influence of Investment Decision (ID) on Positive Word of Mouth (PWOM), with all hypotheses being accepted. 5. Discussion This model was developed to examine the impact of various psychological and social factors on investment decision-making (IDM), including Family Influence (FI), Innovation (IN), Need for Achievement (NA), and Risk- Taking (RT), with Positive Word of Mouth (PWOM) serving as a moderating variable. The research established that Family Influence, Innovation, and Need for Achievement significantly affect investment decision-making, while Risk-Taking did not. Based on the data analysis, the study confirms that factors such as familial support, openness to innovation, and personal achievement goals drive the investment decisions of individuals. Additionally, the findings suggest that gender and age play a role in shaping investment behaviors. The majority of respondents in the study were women aged 21-30, which highlights the importance of understanding this demographic in investment decision-making processes. These results indicate that financial platforms and investment firms should consider targeting younger, tech-savvy women, who are more likely to make investment decisions and influence others within their social circles. The positive regression coefficient for Family Influence indicates a unidirectional relationship, meaning that as family influence increases, so does the likelihood of making investment decisions. This supports Hypothesis 1 (H1), confirming that familial support plays a crucial role in the decision-making process. The findings align with previous research that highlights the significant role of family in shaping financial choices, especially in areas requiring long-term planning like investment. Similarly, Hypothesis 2 (H2), which proposed that Innovation influences investment decisions, was also supported. Although the effect was moderate, the data shows that individuals open to innovation are more likely to make investment decisions, emphasizing the relevance of new financial products and services that appeal to more innovative investors. Hypothesis 3 (H3), concerning the Need for Achievement, was strongly supported as well. Individuals with a high need for achievement were found to make investment decisions at higher rates. This finding highlights the influence of personal ambition and goals for financial success on investment behavior. Investors who are driven by achievement may be more willing to take calculated risks and seek opportunities for growth, which is critical in investment decision-making. On the other hand, Hypothesis 4 (H4), which suggested that Risk-Taking significantly impacts investment decisions, was rejected. The study found that risk-taking behavior did not significantly influence investment decision-making, which contradicts traditional views that assume investors are inherently risk-tolerant. This could be due to the moderating effect of other factors such as family influence and personal achievement, which may outweigh the direct influence of risk-taking on investment decisions. Finally, the significant positive relationship found between Investment Decisions and Positive Word of Mouth (Hypothesis 5, H5) underscores the importance of social influence in financial decision-making. Individuals who make investment decisions are more likely to share their experiences with others, thereby spreading information about investments through word-of-mouth. This finding aligns with the theory that social networks play a significant role in financial behaviors, with recommendations from trusted peers serving as important drivers of investment decisions. In conclusion, the study provides a comprehensive understanding of the psychological, social, and demographic factors that influence investment decision-making. Family influence, innovation, and need for achievement were found to have a significant impact on investment decisions, while risk-taking was not as influential as expected. The positive effect of investment decisions on Positive Word of Mouth further emphasizes the role of social influence in shaping investment behaviors. These insights can inform marketing strategies for investment platforms and financial advisors, helping them target specific demographics and build trust through social validation. 6. Conclusion Based on the results of the analysis, this research has successfully contributed to the understanding of the psychological and social factors influencing investment decision-making (IDM). Specifically, four hypotheses were supported in this study, confirming the significant impact of Family Influence (FI), Innovation (IN), and Need for Economy, 2025, 12(2): 51-59 58 © 2025 by the authors; licensee Asian Online Journal Publishing Group Achievement (NA) on investment decisions. However, the hypothesis related to Risk-Taking (RT) was rejected. The study highlights that family support, innovation, and personal ambition play key roles in shaping individuals’ investment choices, while risk-taking does not have as significant an effect as initially expected. The research also emphasizes the important role of Positive Word of Mouth (PWOM) in influencing investment decisions, with a strong positive relationship found between investment decisions and PWOM. The findings suggest that the most significant variable in making investment decisions is the influence of family. Therefore, investment platforms should target customers by acknowledging and incorporating family influences into their marketing strategies. For instance, providing tools or advice that encourage family involvement in financial planning could enhance customers' decision-making processes. Additionally, innovation is another vital factor, with individuals who are open to new ideas and technologies being more likely to make investment decisions. Financial institutions should aim to offer innovative and technology-driven products to attract this demographic, especially by promoting investment tools that incorporate cutting-edge technologies. Furthermore, the study found that Need for Achievement (NA) plays a significant role in investment decision- making. Individuals who are driven by a desire for success and personal achievement tend to be more engaged in making investment decisions. Investment firms should consider this aspect and offer personalized financial products that appeal to goal-oriented individuals. Tailoring services that help customers set and achieve their financial goals could foster a stronger connection with this target market. The hypothesis related to Risk-Taking (RT), however, was rejected, suggesting that risk-taking behaviors are not as strongly correlated with investment decisions as typically assumed. This finding could indicate that other factors, such as family influence or personal ambition, may outweigh the effect of risk tolerance in financial decision-making. It is crucial for financial institutions to focus more on offering stable and secure investment opportunities that appeal to conservative investors, rather than solely emphasizing high-risk, high-reward products. Lastly, the research underscores the importance of Positive Word of Mouth (PWOM) in reinforcing investment decisions. Individuals who make investment decisions are more likely to share their experiences and influence others in their social networks. Therefore, financial institutions and platforms should leverage the power of social influence in their marketing strategies. Encouraging satisfied investors to share their experiences and recommend investment products can further enhance customer acquisition and loyalty. In conclusion, this study highlights the significant psychological and social factors influencing investment decision-making. Family influence, innovation, and personal ambition emerged as key drivers in shaping investment behaviors, while risk-taking was not as influential as expected. The positive effect of investment decisions on Positive Word of Mouth further emphasizes the role of social influence in financial decision-making. Financial institutions and platforms should tailor their marketing strategies to focus on these factors, while also encouraging the social sharing of investment experiences to build trust and drive customer acquisition. 7. Research Limitation This study is limited by its focus on e-commerce users in Indonesia, and future research should apply the same model or a modified version to different populations for more generalizable results. Expanding the respondent base and incorporating additional variables such as income, age, and gender could further enhance understanding of the factors influencing investment decisions and consumer behavior. Longitudinal studies could also provide insights into how investment behaviors evolve over time. 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