DO SOME FINANCIAL PRODUCT FEATURES NEGATIVELY AFFECT CONSUMER DECISIONS? A REVIEW OF EVIDENCE. ESRI RESEARCH SERIES NUMBER 78 SEPTEMBER 2018

Lunn, Pete and McGowan, Féidhlim and Howard, Noel (2018) DO SOME FINANCIAL PRODUCT FEATURES NEGATIVELY AFFECT CONSUMER DECISIONS? A REVIEW OF EVIDENCE. ESRI RESEARCH SERIES NUMBER 78 SEPTEMBER 2018. UNSPECIFIED.

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Abstract

This paper reviews international evidence on consumer decision-making in retail financial markets. Specifically, we identify and evaluate research from multiple disciplines and methods that links specific features of products to the quality of consumer decisions. The notion of product ‘features’ is broadly defined to include not only product attributes, but also emergent properties such as product complexity and the salience of information disclosure. We document areas of concern from a consumer protection perspective, and describe some common themes, including the inability of consumers to consider all important attributes and whether they can easily discern how the provider is making its profit. We conclude that there is a case for closer integration of empirical evidence and financial regulation.

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