Experts’ versus Consumers’ Perception of Financial Products

51 Pages Posted: 21 Nov 2016

See all articles by Inga Jonaityte

Inga Jonaityte

Ca Foscari University of Venice - Department of Management

Date Written: November 20, 2016

Abstract

This study explores decision-making processes of promoters of financial products and financial advice services. We collect experimental evidence about how these professionals perceive their customers’ needs, preferences, and biases. By focusing on the behavioral differences between expert (621) and non-expert subjects (573) this study shows that expertise alone is not enough to prevent biased behavior. Our results suggest that even the most experienced and well-informed professionals exhibit systematic biases. We discuss how interpersonal cues used in financial communications may induce trust-related biases. This research provides useful insights for future in-depth research on how contextual factors, often non-informative, influence financial advisers’ judgments and subsequent advice.

Keywords: financial advice; consumer finance; financial advertisement; disclosure; information processing; expertise; trust; experiment

JEL Classification: D03, D1, D8, D81, D83, D84, G11, G2, G21, G23, M3

Suggested Citation

Jonaityte, Inga, Experts’ versus Consumers’ Perception of Financial Products (November 20, 2016). Department of Management, Università Ca' Foscari Venezia Working Paper No. 2016 / 19, Available at SSRN: https://ssrn.com/abstract=2873193

Inga Jonaityte (Contact Author)

Ca Foscari University of Venice - Department of Management ( email )

San Giobbe, Cannaregio 873
Venice, 30121
Italy

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