Consumer Behaviour Towards Pension Scheme Acquisition In The Informal Sector In Ghana

ABSTRACT Marketing pension scheme products and services within the informal sector is gaining increasing attention in practice and research in Ghana. In recent years, there are calls to adopt effective and efficient marketing strategies that are able to promote uptake among the informal sector workers. There is therefore the need to understanding consumer behaviours among these informal sector workers. The current study therefore examined consumer behaviour towards pension scheme among informal sector workers, in two informal sector work contexts; Suame Magazine and Kumasi Central Market in Ashanti Region, using a mixed-method approach. The quantitative data was gathered using crosssectional survey, involving 386 participants. The qualitative data was gathered using interviews, involving 20 respondents. The qualitative data was analysed using thematic analysis and the quantitative data analysed using structural equation modelling. Findings showed that informal sector understanding of retirement or pensions was mainly negative. They saw pension scheme mainly as growing old, loosing strength and having no energy to work. They depend on traditional means for planning for their old age, such as taking care of their children, investing in properties, helping other family members and micro savings. The quantitative data showed that subjective norms, perceived behavioural control and savings behaviour have been found to increase intention to acquire pension scheme among the workers. Conversely, negative perceptions about pension scheme and alternative retirement plans were found to reduce intention to acquire pension scheme among the workers. The findings from the study are discussed within the context of marketing strategies at the institutional and structural levels for promoting pension scheme uptake.