Using Loan Plus Lender Literacy Information to Combat One-Sided Marketing of Debt Consolidation Loans

Bolton, Lisa E; Bloom, Paul N; Cohen, Joel B
October 2011
Journal of Marketing Research (JMR);Oct2011 Supplement 1, Vol. 48, pS51
Academic Journal
The marketing of debt consolidation loans is intended to offer a financial remedy to consumers faced with mounting debt and credit problems and unable to meet their monthly payments. The authors argue that debt consolidation loan marketing overemphasizes the short-term benefits (e.g., lower monthly payments) and downplays the considerable downside of these loans (e.g., longer repayment and more total interest paid). Two experiments demonstrate that a financial literacy intervention combining information about loans and lenders can help consumers understand and respond to debt consolidation loan marketing (whereas a basic financial numeracy intervention does not). Implications for consumers, marketers, public policy makers, and researchers who work in the area of financial literacy are discussed.


Related Articles

  • DETERMINANTS OF FINANCIAL KNOWLEDGE AMONG ADOLESCENTS. NKOMAZANA, Njabulo; SIBANDA, Mabutho; DUVE, Richard // Studia Universitatis Babes-Bolyai, Oeconomica;Aug2015, Vol. 60 Issue 2, p55 

    The study measures the level of financial knowledge among the adolescents in Zimbabwe, with a particular focus on secondary school pupils. Financial knowledge is critical in providing lifelong skills and knowledge for handling personal finances beyond school. A sizeable amount of previous...

  • Meet You in Aisle Three. Lach, Jennifer // American Demographics;Apr99, Vol. 21 Issue 4, p41 

    Discusses in-store market research. Definition of in-store market research; How in-store research captures consumer behavior; Reasons for the interest of companies in in-store market research.

  • Journal of Marketing Research How consumers discriminate.  // Biomedical Market Newsletter;8/12/2011, Vol. 21, p402 

    The article reports on a study by the Columbia Business School, which provides evidence on the impact of the size and quality of an assortment to the purchasing decisions of customers.

  • Introduction to the Journal of Marketing Research Special Interdisciplinary Issue on Consumer Financial Decision Making. Lynch, John G // Journal of Marketing Research (JMR);Oct2011 Supplement 1, Vol. 48, pSiv 

    An introduction is presented to the articles published in this issue on consumer financial planning decision making including an article on the effect of compound interest on savings, an article on consumer management of debt and credit and an article on psychological aspects of investment.

  • Study: Shoppers on phones in aisles, at checkout. Angrisani, Carol // Supermarket News Exclusive Insight;10/23/2014, p7 

    The article presents a study on the use of smartphones by shoppers based on a research by the Millward Brown Digital for social media network Facebook which was presented at the Shopper Marketing Conference & Expo in 2014.

  • Konsumklima legt Verschnaufpause ein.  // Lebensmittel Zeitung;3/28/2014, Issue 13, p12 

    The article offers information on a study conducted by market research company GfK, which shows that consumers in Germany invested in home renovations in March 2014, but less in the retail industry.

  • Why Marketers should actively seek insights by observing consumers with a keen eye.  // FRPT- FMCG Snapshot;5/11/2014, p4 

    The article offers suggestions for marketers and organizations on how to conduct consumer observations.

  • Consumer Generalization of Nutrient Content Claims in Advertising. Andrews, J. Craig; Netemeyer, Richard G.; Burton, Scot // Journal of Marketing;Oct98, Vol. 62 Issue 4, p62 

    Although considerable research exists on consumer processing of nutrition labeling and package claims, less is known about consumer interpretation of nutrient content claims in advertising. This is important because product advertising often provides a significant first step for consumers in...

  • Effects of Context and Part-Category Cues on Recall of Competing Brands. Alba, Joseph W.; Chattopadhyay, Amitava // Journal of Marketing Research (JMR);Aug1985, Vol. 22 Issue 3, p340 

    In three experiments, the effects of presenting a subset of competing brands on the recall of the remaining brands was studied. The first two experiments showed that using a subset of the brands as cues may either enhance or inhibit recall of the remaining brands, depending on the knowledge...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics