| 1. |
- Carlander, Anders, 1979, et al.
(författare)
-
Financial Literacy and Debt
- 2019
-
Ingår i: Indebtedness in early adulthood : causes and remedies / Jeanette Carlsson Hauff, Tommy Gärling, Ted Lindblom (red.). - Cham, Switzerland : Palgrave MacMillan. - 9783030139957 ; , s. 129-149
-
Bokkapitel (refereegranskat)abstract
- Given the empirical evidence of the effect of financial literacy on a number of debt-related financial behaviors, such as e.g., mortgage-related decisions and use of credit cards, the construct of financial literacy is defined (including both level of objective knowledge and individuals’ own perception of level of knowledge) and discussed, both in general and connected to borrowing decisions. Together with age, gender, education, and income, the impact of financial literacy on a number of variables (including choice of variable or fixed mortgage rates, use of credit cards and use of pawn shops) is assessed and discussed. The connection between literacy and indebtedness for the group of young adults is also specifically addressed.
|
|
| 2. |
- Carlander, Anders, 1979, et al.
(författare)
-
The role of perceived quality of personal service in influencing trust and satisfaction with banks
- 2018
-
Ingår i: Financial Services Review. - 1057-0810. ; 27, s. 83-98
-
Tidskriftsartikel (refereegranskat)abstract
- Trust is of paramount importance to banks. Previous research has shown that trust increases with repeated personal contacts. We investigate if this applies to the customer-employee relationship in banks. Data from an on-line survey of 293 customers of Swedish retail banks are used to construct indicator measures. By means of structural equation modeling we find that trust in the bank is influenced by perceived quality of personal service through employees’ perceived competence, perceived benevolence, and perceived transparency, and that satisfaction with the bank is influenced by perceived quality of personal service through perceived competence, perceived benevolence, perceived transparency, and trust.
|
|
| 3. |
- Elliot, Viktor, et al.
(författare)
-
Wealthy individuals: Not to be overlooked when thinking ESG investment strategy
- 2022
-
Ingår i: Journal of Financial Transformation. - 1755-361X. ; 56, s. 110-116
-
Tidskriftsartikel (övrigt vetenskapligt/konstnärligt)abstract
- Philanthropy has a long-standing tradition among wealthy individuals. Their donations have the potential to make important positive contributions to a range of causes. We argue that the philanthropic efforts made by this powerful demographic in part correspond to the common definition of environmental, social, and governance (ESG) or sustainable investment practices more broadly. The wealthy, therefore, cannot be overlooked when we think about sustainable investing. We describe the philanthropic attitudes and giving behavior in a sample of 417 wealthy individuals with at least U.S.$5.5 million to invest. We focus on the motivations behind their donations, and more specifically giving to environmental causes, which can inform sustainable investment intentions. Our findings are relevant to the wealth management industry that seeks to increase its understanding about this demographic and for organizations as they develop their ESG strategies.
|
|
| 4. |
- Hagberg, Johan, 1973, et al.
(författare)
-
Försäkringsbolaget i de digitala ekosystemen – nya former av intermediering
- 2021
-
Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Rapporten redovisar resultat från projektet Försäkringsbolaget i de digitala ekosystemen – nya former av intermediering. Projektets syfte har varit att belysa hur framväxande digitala ekosystem inverkar på försäkringsbranschens funktion som intermediär med specifikt fokus på 1) hur olika digitala ekosystem är utformade och vilka implikationer det har för intermediering av försäkringar, 2) hur tillgången till data i digitala ekosystem kommer att påverka försäkringsbolagets prissättning och riskbedömningar, samt 3) hur lokal respektive digital närvaro inverkar på försäkringstagare i framväxande digitala ekosystem. I rapporten ges en bakgrund till den pågående digitalisering som tar fasta på tio dimensioner av förändring från en industriell logik till en digital logik, följt av en beskrivning av den svenska försäkringsbranschen och förändring till följd av digitalisering fram till idag. Därefter beskrivs och diskuteras framväxande digitala ekosystem, olika aktörer som verkar i digitala ekosystem och hur det påverkar intermediering av försäkring. Detta följs av en analys av den informationsasymmetri som präglar försäkringsbranschen och hur denna påverkas av digitalisering. Därefter riktas fokus mot konsumenter i digitala ekosystem och specifika konsekvenser för försäkring när det gäller frågor kring integritet och betydelsen av lokal närvaro. Slutligen presenteras övergripande slutsatser utifrån projektets forskningsfrågor. Rapporten visar framväxten av digitala ekosystem där försäkring antingen är en central- eller komplementär komponent och där såväl etablerade försäkringsaktörer som nya aktörer är drivande. Framväxten av digitala ekosystem kan bidra till att förändra intermediering av försäkring genom uppdelning av försäkringserbjudandet respektive sammanslagning i mer omfattande värdeerbjudanden. Rapporten visar på en tydlig fortsatt ökning av tillgången till och användningen av nya datakällor för att både stödja och vidareutveckla försäkringsaffären, vilket kommer att medföra behov av att förstärka och förnya existerande praxis kring prissättning och riskbedömning. Vidare visar rapporten på hur lokal närvaro utgör en del av mer omfattande frågor kring integritet, vilka blir alltmer betydande för försäkringstagare i framväxande digitala ekosystem.
|
|
| 5. |
- Hagberg, Johan, 1973, et al.
(författare)
-
Konsumtionsrapporten 2022
- 2022
-
Rapport (övrigt vetenskapligt/konstnärligt)abstract
- I Konsumtionsrapporten 2022 sammanfattas och analyseras konsumtionen i Sverige under 2021 och merparten av 2022. I den första delen, ”Hushållens konsumtion” ges en översikt över den privata konsumtionen i Sverige, hur den har förändrats i såväl kortare som längre perspektiv samt hushållens framtidstro avseende sin egen och Sveriges ekonomi. I andra delen, ”Detaljhandeln” beskrivs försäljning och utveckling inom detaljhandeln under 2021 och inledningen av 2022 med fokus på olika delbranscher, kanaler och platser, e-handeln respektive den butiksbaserade detaljhandeln. Den andra delen avslutas med handelns framtidsförväntningar. Den tredje delen ”Framtidsutsikter” tar avstamp i konsumenters och handelns framtidsförväntningar från de två första delarna och fördjupar analysen av framtidsutsikter utifrån publicerade prognoser och uttalanden från ekonomiska bedömare. Årets rapport innehåller tre fördjupningsdelar som var en och analyserar aktuella teman inom konsumtion. Under lång tid har det skett en ökad digitalisering av konsumtionen och inte minst under pandemin har många konsumtionsbeteenden förskjutits mot en allt större användning av internet och olika digitala gränssnitt som till exempel webshopar, social media och strömningstjänster. I takt med detta har det också väckts många frågor som berör säkerhet och personlig integritet online. I den första av fördjupningsdelarna analyserar Jeanette Carlsson Hauff konsumenters upplevda fördelar och risker avseende digital integritet vid användning av olika digitala tjänster. I den andra fördjupningsdelen visar Niklas Sörum på konsumenters olika förhållningssätt till datainsamling och datadriven marknadsföring. Andra konsumtionsbeteenden som aktualiserats under de senaste åren är olika typer av reaktioner på eller förberedelser inför kriser i termer av bunkring, hamstring och prepping. I den tredje delen analyserar och diskuterar Elias Mellander olika exempel på kriskonsumtion och hemberedskap.
|
|
| 6. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
Breaking the ice of low financial involvement: Does narrative information format from a trusted sender increase savings in mutual funds?
- 2016
-
Ingår i: International Journal of Bank Marketing. - 0265-2323. ; 34:2, s. 151-170
-
Tidskriftsartikel (refereegranskat)abstract
- Purpose – The purpose of this paper is to investigate how trust in the sender of financial information and a narrative vs fact-related format of the information influence intentions to save in a mutual fund. Design/methodology/approach – In Experiment 1, 186 undergraduates participate and in Experiment 2, 434 Swedish citizens between 18 and 70 years randomly chosen from a consumer panel. In both experiments participants are randomized to two conditions in which they are presented with the same information about a mutual fund in a narrative or a traditional fact-related format. In four different between-groups conditions crossed with information format, pre-tested descriptions of different fictitious banks are presented. The descriptions are combined in a fractional factorial design such that one bank is low in the three trust determinants of competence, benevolence and transparency, whereas the other three banks are high in one of the trust determinants but lower in the others. Ratings are made of the information with respect to how much positive affect the information evokes, interest in the message and intention to save in the mutual fund. Findings – In both experiments the narrative compared to the fact-based information format increases positive affect, interest and intention to save. Trust in the bank has an independent effect of increasing the intention to save. Practical implications – The narrative format of financial information may be key to increase involvement in financial choices but needs to be supplemented by a message that reinforces the positive affect and interest evoked by the format. Originality/value – A demonstration of how a narrative format of financial information and trust in the sender jointly influence intentions to save in a mutual fund.
|
|
| 7. |
|
|
| 8. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
Determinants of indebtedness among young adults: Impacts of lender guidelines, explicit information and financial (over)confidence
- 2020
-
Ingår i: International Journal of Consumer Studies. - : Wiley. - 1470-6423 .- 1470-6431. ; 44:2, s. 89-98
-
Tidskriftsartikel (refereegranskat)abstract
- For most people, borrowing money is a necessary aspect of life in the 21st century. Wisely handled, loans give consumers access to consumption too expensive for most individuals to purchase with cash, such as homes and cars. However, history shows that taking on too much debt can be detrimental for the individual consumer as well as society as a whole. In this paper, we investigate determinants of over-indebtedness among young adults. We perform three studies in a setting focused on buying and borrowing money for a home. We show that, compared with an overall mortgage amount, explicit information about monthly payments reduces the tendency to take on too much debt (Study 1), that the amount borrowed depends on standards regarding the loan amount communicated through guidelines from the lender (Study 2), and that borrowers who are overconfident about their financial abilities tend to borrow more than less confident individuals (Study 3). These determinants and their policy implications are discussed.
|
|
| 9. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
Individual costs and societal benefits: the privacy calculus of contact-tracing apps
- 2021
-
Ingår i: Journal of Consumer Marketing. - 0736-3761. ; 40:2, s. 171-180
-
Tidskriftsartikel (refereegranskat)abstract
- Purpose: During 2020, governments around the world introduced contact-tracing apps to fight the COVID-19 pandemic. In order for contact-tracing apps to be efficient tools in combatting pandemics, a significant proportion of the population has to install it. However, in many countries, the success of apps introduced during the COVID-19 pandemic has been limited due to lack of public support. This paper aims to better understand why consumers seem unwilling to install and use a contact-tracing app. Design/methodology/approach: In this study, the authors test a number of determinants hypothesized to influence acceptance of contact-tracing apps based on the theory of privacy calculus (Dinev and Hart, 2006). Both perceived privacy concerns, as well as perceived hedonic, utilitarian and pro-social benefits are included. The hypotheses are tested through SEM analysis on a representative sample of 1,007 Swedish citizens. Findings: The results indicate significant privacy concerns with using contact-tracing apps. However, this is to some extent offset by perceived hedonic and pro-social positive consequences of using the app. This study further shows that a general positive attitude towards innovation increases acceptance of the app. Originality/value: The study contributes to research on consumer privacy, both in general in its application of the calculus model but also specifically in the context of contact-tracing apps. Moreover, as the results highlight which aspects that are important for consumers to accept and install an app of this kind, they also represent an important contribution to policymakers in countries around the world.
|
|
| 10. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
Is ESG mutual fund quality in the eye of the beholder? An experimental study of investor responses to ESG fund strategies
- 2022
-
Ingår i: Business Strategy and the Environment. - : Wiley. - 0964-4733 .- 1099-0836. ; 32:4, s. 1189-1202
-
Tidskriftsartikel (refereegranskat)abstract
- ESG-profiled mutual funds (funds incorporating some form of Environmental, Social, or Governance-related concern) is an increasingly prominent part of the financial services industry. While this category of funds may look homogenous on the surface, the fact is that there is there is considerable variation in how funds choose to account for ESG concern in the investment portfolio. In this paper, we ask whether these strategic choices surrounding the implementation of ESG affect retail investors' perception of sustainable quality, financial quality, and/or perceived overall quality of the ESG-fund. Through two experiments (n=261; n=437), we find that choice of ESG-strategy (exclusion, inclusion, or engagement) impacts perceived mutual fund quality, with a marked preference for the inclusion strategy. Surprisingly, however, we find that the impact on overall fund quality is mediated by perceived financial quality, not perceived sustainable quality. In a similar fashion, we also find that implementing the strategy through in-house sustainability experts, as opposed to relying on external sustainability expertise, positively affect perceived quality, through perceived financial quality. In all, these results highlight that the manner in which ESG-factors are integrated in the investment portfolio can affect perceived quality of mutual funds, as investors consciously or unconsciously assign different financial expectations to the strategies.
|
|
| 11. |
- Hauff Carlsson, Jeanette, 1965
(författare)
-
Reasons to switch: empowered vs less powerful bank customers
- 2019
-
Ingår i: International Journal of Bank Marketing. - 0265-2323. ; 37:6, s. 1441-1461
-
Tidskriftsartikel (refereegranskat)abstract
- The purpose of this paper is to contribute to the existing literature of driving and impeding switching factors by operationalizing the catalyst factor of perceived power among customers. Acknowledging the importance of trust in a financial context, a trust-based framework for the analysis is used. The study explicitly analyzes factors of importance for subsequent switching of banks for empowered customers (i.e. savers) and low-on-power customers (i.e. borrowers). The paper manages to define differences between empowered and less empowered customers, such as borrowers and savers. The mediating effect of trust prevails only for borrowers: here, the only effect on switching behavior stems from a full mediation of stability through trust. For savers, direct influences of both service failure and lack of involvement on trust are of major importance. The importance of trust, however, is lacking; for the sample of savers, the link between trust and switching behavior is insignificant. The results may be used as a tool box in order to address consumer switching behavior and mobility in the financial services market. The biggest obstacle for switching banks among savers is the low level of involvement. This has clear implications regarding how to increase switching, e.g., by raising interest. Focusing instead on borrowers, stability of the chosen financial institution turned out to be the most important factor.
|
|
| 12. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
Retirement Financial Behaviour: How Important Is Being Financially Literate?
- 2020
-
Ingår i: Journal of Consumer Policy. - : Springer Science and Business Media LLC. - 0168-7034 .- 1573-0700. ; 43, s. 543-564
-
Tidskriftsartikel (refereegranskat)abstract
- Using Item Response Theory to analyse survey data from a representative sample of 551 Swedish citizens, a new 16-question measure of fact-based financial literacy is developed and validated. Uni-dimensionality of the measure is verified, and expected correlations are observed with an existing measure of fact-based financial literacy, a measure of subjective financial literacy or confidence, and age, gender, and income. A significant impact of fact-based and subjective financial literacy are found on three time-ordered stages of individuals’ retirement behaviour: planning, saving, and investment management. It is concluded that policies increasing final literacy are important in different phases of the life cycle.
|
|
| 13. |
|
|
| 14. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
Students' experience of making and receiving peer assessment: the effect of self-assessed knowledge and trust
- 2022
-
Ingår i: Assessment & Evaluation in Higher Education. - : Informa UK Limited. - 0260-2938 .- 1469-297X. ; 47:6, s. 959-971
-
Tidskriftsartikel (refereegranskat)abstract
- Making and receiving peer assessment may be a positive experience for some students while other students will not appreciate it. The present study contributes with insights into individual characteristics affecting how students will experience the practice of peer assessment. We further provide an analysis of the inherent tasks of making and receiving peer assessment separately. The study specifically focuses on the impact of self-assessed knowledge and trust on making and receiving peer assessment. A survey to 94 students at a Swedish business school generated data on making and receiving peer assessment before and after the assessment task, and on level of students' self-assessed knowledge and trust in fellow classmates. The results pointed at higher expectations stemming from trusting students. They revealed that trusting individuals and individuals low on self-assessed knowledge reacted more negatively when receiving peer assessment than less trusting students with high self-assessed knowledge. The results of the study enable development of appropriate assessment tasks and hence an inclusive learning environment with heterogenous student groups.
|
|
| 15. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
The impact of country-of-origin cues on consumer investment behavior: The moderating influence of financial brand strength and investment management style
- 2017
-
Ingår i: European Journal of Marketing. - 0309-0566. ; 51:2, s. 349-366
-
Tidskriftsartikel (refereegranskat)abstract
- Purpose – Choosing how to invest one’s assets is one of the more important decisions consumers are faced with. However, determining the objective financial quality of complex investment products such as mutual funds is not an easy task for consumers. Against this background, this study aims to clarify the potential impact of one, not necessarily rational, cue on consumer perceptions of financial quality in the investment context: the country-of-origin (COO) of the mutual fund or stock. Design/methodology/approach – Two Web-based experiments are used to test the study’s hypotheses. Findings – COO is found to impact investors’ evaluation of the financial metrics of mutual funds, both in terms of perceived risk and potential return. Moreover, the results of Experiment 2 show that although a strong financial brand can partially overcome the COO effect, the extent of this effect is moderated by whether the fund utilizes an active or passive management style. Research limitations/implications – Although mutual fund providers with a strong financial country image (CI) may leverage that image and build on their home country’s brand, providers from countries with a poor financial CI may do well focusing on passive management to minimize negative COO influence. Originality/value – The results highlight that COO can be an important source of sub-optimal investment decisions. These insights are of high importance for efforts to improve consumer decision-making and for individual service provide
|
|
| 16. |
|
|
| 17. |
- Hauff Carlsson, Jeanette, 1965
(författare)
-
The impact of knowledge on labeling schemes promoting sustainable investing
- 2022
-
Ingår i: Business Strategy and the Environment. - : Wiley. - 0964-4733 .- 1099-0836. ; 31:7, s. 2839-2853
-
Tidskriftsartikel (refereegranskat)abstract
- Sustainable labeling schemes are frequently used to simplify decisions for consumers, for example, in financial contexts, and to subsequently promote sustainable investments. The purpose of this research is to, against the backdrop of dual processing theories, outline consumer reactions to sustainability-oriented investment labels. Experimental results from a representative sample show that objective labels are perceived more favorably by financially knowledgeable individuals. Three developed and validated scales, measuring general and specific financial knowledge as well as environmental knowledge, further suggest that this evaluation is domain contingent, with only knowledge that aligns with choice domain interacting significantly with label format. The importance of the choice domain prevails with regard to the interaction between knowledge and the perceived effectiveness of an investment. We are able to verify retail investor reactions to sustainable labeling, which are of major importance for fund both companies and legislators considering an introduction of mandatory sustainability labeling.
|
|
| 18. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
The influence of gender on the choice of education: the mediating effect of interest in statistics
- 2020
-
Ingår i: Journal of International Education in Business. - 1649-4946 .- 2044-4575. ; 13:1, s. 87-105
-
Tidskriftsartikel (refereegranskat)abstract
- The purpose of this paper is to verify the existence of a gender unbalance regarding choice of quantitatively oriented masters’ programs at a business school. The aim, further, is to analyze variables potentially affecting this unbalance: interest in quantitative matters, perceived competence regarding quantitative subjects and measures of quantitative knowledge.
|
|
| 19. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
The loan market – The Swedish example
- 2019
-
Ingår i: Indebtedness in early adulthood: Causes and remedies. Carlsson Hauff, Gärling & Lindblom (Eds.). - London UK. : Palgrave Macmillan. - 9783030139957 ; , s. 49-61
-
Bokkapitel (övrigt vetenskapligt/konstnärligt)abstract
- From a Swedish perspective, different types of credits and loans relevant to young adults are analysed, together with an assessment of levels of indebtedness. This enables an assessment of the level of urgency regarding the Swedish market and a discussion of whether the recent development of the Swedish loan market follows an international trend. The level of indebtedness of Swedish young adults is compared to the general population of borrowers. The efforts taken by Swedish authorities are discussed, something that may serve as a description of one way to tackle current societal challenges. The Swedish example, containing strong macro-prudential initiatives, could be seen as an example of a legislative way to tackle problems associated with a potential housing bubble and high debt ratios.
|
|
| 20. |
|
|
| 21. |
- Hauff Carlsson, Jeanette, 1965
(författare)
-
Trust and risk-taking in a pension investment setting.
- 2014
-
Ingår i: International Journal of Bank Marketing. - 0265-2323. ; 32:5, s. 408-428
-
Tidskriftsartikel (refereegranskat)abstract
- Purpose – The purpose of this paper is to examine the effect of trust on financial risk-taking in a pension investment setting. Further: to delineate the effects of varying levels of individuals’ financial knowledge and involvement on risk-taking, and on the trust-risk-taking relation. Design/methodology/approach – Questionnaire to a subsample of Swedish bank customers, thereafter statistical analysis using multiple moderated regression. Findings – Support the notion of trust being an influential variable in explaining risk-taking, and show that highly knowledgeable and highly involved individuals take on more risk. That individuals defined by knowledge and involvement have a different trust-risk-taking relation, however, not verified. Research limitations/implications – Adds to the body of research emphasising the importance of “soft”, emotionally tilted input to consumers’ decision making, even concerning financial tasks such as risk-taking. Narrowly defined pension system environment may hamper generalisations since many constructs tested are situation specific. Practical implications – From a practical perspective, individual investment behaviour is of increasing importance for the individual as retirement saver and for the financial industry in its attempt to tailor-make financial products to its customers. From a legislators’ perspective, the dimensions of knowledge and involvement describe the type of consumer supposedly most vulnerable: the uninterested individual with low levels of financial knowledge. Originality/value – Tests the importance of trust on choice of risk level in a pension setting and is able to expand previous results into the area of consumer behaviour regarding pensions. The paper further manages to assess the specificities as regards the relation between trust and risk-taking for individuals with varying levels of knowledge and involvement.
|
|
| 22. |
- Hauff Carlsson, Jeanette, 1965, et al.
(författare)
-
Why Study Young Adults' Indebtedness?
- 2019
-
Ingår i: Indebtedness in Early Adulthood - Causes and Remedies. Hauff J., Gärling T., Lindblom T. (eds.). - Cham, Switzerland : Palgrave Macmillan. - 9783030139957 ; , s. 3-20
-
Bokkapitel (övrigt vetenskapligt/konstnärligt)
|
|
| 23. |
-
Indebtedness in early adulthood - Causes and Remedies
- 2019
-
Samlingsverk (redaktörskap) (övrigt vetenskapligt/konstnärligt)abstract
- Several scales for measuring attitude that have been developed are first described and evaluated. It is noted that the scales frequently fail to distinguish between opinions and attitudes and that the attitude object varies between studies. Studies of young adults’ attitudes toward borrowing are then reviewed. A majority have focused on student loans. It is found that attitudes are favorable although a change over time toward less favorable attitudes is discernible. A critical issue is to what extent favorable attitudes are related to borrowing. Some but not all studies confirm a positive relationship between favorable attitudes toward borrowing and debt amount. The causal direction of the relationship may however vary over time and in different groups
|
|
| 24. |
- Nicolini, Gianni, et al.
(författare)
-
Attitude toward risk and financial literacy in investment planning
- 2017
-
Ingår i: Risk culture in banking. A. Carretta, F. Fiordelisi & P. Schwizer (Eds.). - Cham, Switzerland : Palgrave Macmillan. - 9783319575919 ; , s. 307-320
-
Bokkapitel (refereegranskat)abstract
- Financial literacy is shown to influence investment decisions in different ways. One possible influence is that a lack of understanding of financial risk causes a negative risk attitude with the consequence for optimal investment behaviour that the positive relation between risk and return is not properly taken into account. The authors analyze data (n = 1,150) collected in 2015 from three European countries (Italy, Sweden and Spain) to test whether people with a low financial literacy have a negative risk attitude. The results confirm that survey respondents low in financial literacy on average rate their risk attitude more negative than more financial literate respondents do.
|
|
| 25. |
- Nilsson, Jonas, 1978, et al.
(författare)
-
How consumers evaluate costs in complex services: the case of mutual fund fees
- 2024
-
Ingår i: European Journal of Marketing. - 0309-0566. ; 58:13, s. 56-80
-
Tidskriftsartikel (refereegranskat)abstract
- Purpose: In modern societies, consumer well-being is dependent on choices regarding complex services, such as investments, health care, insurance and lending. However, evaluating costs of such services is often difficult for consumers due to a combination of limited cognitive resources and complexity of the service. The purpose of this study is to empirically examine to what extent three specific consequences of complexity influence consumer tendencies to make mistakes when evaluating the costs (or price) of complex services. Design/methodology/approach: Three studies were conducted (survey: n = 153, experiment: n = 332 and conjoint analysis: n = 225), all focusing on how consumers evaluate costs in the complex mutual fund setting. Findings: The authors find that consumers struggle with estimating and using cost information in decision-making in the complex services setting. Consumers of complex services frequently underestimate the costs over the long-term, may see costs as a signal of service quality and are susceptible to influence from presentation formats when evaluating costs. Research limitations/implications: The study investigates mutual funds, which is one example of a complex service. In order to get a full picture of how consumers deal with costs in complex setting, future research needs to expand this focus to other types of complex services. Practical implications: The results have implications for both marketers of complex services and policymakers. For marketers, this paper highlights that competing with a low-cost strategy may be difficult in the complex services setting as consumers may lack the ability to actually evaluate what they pay over the long term. For policymakers, increased simplification of prices may be an attractive option. However, it is important that this simplification is done in a way that increases the possibility to compare prices. Originality/value: As complexity influences several aspects of decision-making, an understanding of how consumers evaluate costs in complex settings is dependent on taking a multidimensional research approach. This paper makes a novel contribution to the literature on pricing by showing that consumers struggle with multiple aspects when evaluating costs in complex contexts. Understanding these effects is important to policy, as well as to research on the cognitive value of simplicity that is currently gaining traction in marketing research.
|
|
