Effects of mutual fund advertising disclosures on investor information processing and decision-making
Purpose – This research aims to examine the effects of financial services advertising disclosures by pairing a content analysis documenting how mandatory financial disclosures are presented in mutual fund advertisements with a between-subjects experiment assessing whether inclusion of the disclosures influences consumer responses to advertisement, brand and company evaluations. Design/methodology/approach – This research examines the effects of financial services advertising disclosures by pairing a content analysis documenting how mandatory financial disclosures are presented in mutual fund advertisements with a between-subjects experiment assessing whether the inclusion of the disclosures influences consumer responses to the ad, brand and company. Findings – The findings show more positive consumer responses for perceived advertising responsibility, recall, and cognitive response as well as higher risk perception when consumers are exposed to the financial disclosures in mutual fund advertisements. Also, the results indicate a mediating role of positive cognitive responses on attitude toward the mutual fund company only when consumers are exposed to advertising disclosures. Originality/value – The paper extends knowledge of whether and how required information disclosures pertaining to mutual funds influence investors ' psychological responses in mutual fund advertising contexts. From a managerial perspective, it has implications for financial services advertising and other social marketing campaigns by uncovering the effects of advertising-as-information in financial decision-making. From a public policy standpoint, the paper is among the first to make explicit claims regarding the role of advertising disclosure in retail investment circumstances.
Year of publication: |
2013
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Authors: | (David) Lee, Taejun ; Yun, TaiWoong ; Haley, Eric |
Published in: |
Journal of Services Marketing. - Emerald Group Publishing Limited, ISSN 2054-1651, ZDB-ID 2020791-8. - Vol. 27.2013, 2, p. 104-117
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Publisher: |
Emerald Group Publishing Limited |
Subject: | Advertising disclosure | Mutual fund advertising | Financial decision-making | Consumer welfare | Disclosure | Unit trusts | Advertising |
Saved in:
Online Resource