Contents

What You Think You Know: The Effects of Prior Financial Education and Readability on Financial Disclosure Processing

Lee, Taejun (David) / Yun, TaiWoong / Haley, Eric

Abstract

Disclosures in advertising and other forms of marketing communication have been examined as a means to help consumers understand complex financial information and make more informed decisions regarding financial products and services. The authors extend inquiry into this supposition by looking at the readability of disclosures in relation to consumer financial literacy. In an experiment, it was found that while highly readable disclosures facilitate more accurate information processing for those with prior financial education, such disclosures might actually inhibit accurate processing for those without prior financial education. This suggests that policy cannot rely on mandated disclosure in marketing communications alone. Rather, disclosures in financial product or services communication can only be effective if such disclosures are paired with other forms of education leading to greater financial literacy.

Issue Date
2017
Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
Keywords
INFORMATION SEARCH BEHAVIOR; PRODUCT CLASS KNOWLEDGE; ADVERTISING DISCLOSURES; ATTITUDE CERTAINTY; CONSUMER KNOWLEDGE; INVESTOR KNOWLEDGE; LITERACY; RETIREMENT; PERSUASION; STRATEGIES
Citation
JOURNAL OF BEHAVIORAL FINANCE, v.18, no.2, pp.125 - 142, 2017
DOI
10.1080/15427560.2017.1276064
Journal Title
JOURNAL OF BEHAVIORAL FINANCE
Start Page
125
End Page
142
ISSN
1542-7560
Language
English
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