Experts' versus Consumers' Perception of Financial Products

Inga Jonaityte

No 19, Working Papers from Venice School of Management - Department of Management, Università Ca' Foscari Venezia

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 customersÕ 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 advisersÕ judgments and subsequent advice.

Keywords: financial advice; consumer finance; financial advertisement; disclosure; information processing; expertise; trust; experiment. (search for similar items in EconPapers)
JEL-codes: D03 D1 D8 D81 D83 D84 G11 G2 G21 G23 M3 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2016-11
New Economics Papers: this item is included in nep-cbe and nep-exp
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Persistent link: https://EconPapers.repec.org/RePEc:vnm:wpdman:130

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