The Effects of Loan Application Formats on Consumer Loan Decisions
When consumers request loans from financial institutions, applications may elicit either a desired loan amount or monthly payment. We demonstrate that for lower (higher) cost purchases, the monthly payment versus loan amount elicitation results in higher (lower) principal requests because consumers recruit format consistent information, which biases request amounts.
Citation:
Alicia Johnson, Daniel Villanova, and Ronn Smith (2021) ,"The Effects of Loan Application Formats on Consumer Loan Decisions", in NA - Advances in Consumer Research Volume 49, eds. Tonya Williams Bradford, Anat Keinan, and Matthew Matthew Thomson, Duluth, MN : Association for Consumer Research, Pages: 238-239.
Authors
Alicia Johnson, University of Arkansas
Daniel Villanova, University of Arkansas
Ronn Smith, University of Wyoming
Volume
NA - Advances in Consumer Research Volume 49 | 2021
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