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.


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.


Alicia Johnson, University of Arkansas
Daniel Villanova, University of Arkansas
Ronn Smith, University of Wyoming


NA - Advances in Consumer Research Volume 49 | 2021

Share Proceeding

Featured papers

See More


Changes in Environment Restore Self-Control

Nicole Mead, University of Melbourne, Australia
Jonathan Levav, Stanford University, USA

Read More


Consumer Attachment Styles and Preference for Sharing Products

Kivilcim Dogerlioglu Demir, Sabanci University
Ezgi Akpinar, Koc University, Turkey
mehmet okan, ITU

Read More


H2. Influencing Consumer Response to Products with High Styling: The Role of Mindsets

Ying-Ching Lin, National Chengchi Uniersity, Taiwan
Angela Chang, Northeastern University, USA

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.