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- W2885706133 abstract "Purpose The purpose of this paper is to examine the influence of consumer-related and bank-related characteristics on the knowledge of the total cost of consumer loans paid by consumers and test the hypothesized relationships between them. Design/methodology/approach In order to identify the proportion of consumers who do not know the total cost of consumer loans and reasons for it in the Chilean consumer loans industry, an empirical study using a survey administered through personal in-home interviews was carried out. Findings Results show that knowledge of a consumer loans total cost is positively associated with product satisfaction as well as recent and infrequent purchases. This study also shows that a big market segment, comprising 37.2 percent of the probability sample, represents vulnerable consumers with high self-reported knowledge but low actual knowledge of the total costs of consumer loans. This study shows that this market segment has a higher use of the price-quality cue and a higher purchase frequency of consumer loans. Originality/value The present study contributes to the existing literature in the following ways. First, while previous research measured only self-reported knowledge for financial services, the present study examines actual knowledge of the total cost of consumer loans. Second, while previous research for financial services only examined the effects of the use of the price-quality cue and price advertising exposure, the present study also examines 11 other determinants, which are relevant for managers, regulators and researchers." @default.
- W2885706133 created "2018-08-22" @default.
- W2885706133 creator A5037447287 @default.
- W2885706133 date "2019-03-04" @default.
- W2885706133 modified "2023-09-26" @default.
- W2885706133 title "Determinants of the knowledge of the total cost of consumer loans" @default.
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- W2885706133 doi "https://doi.org/10.1108/arla-12-2015-0323" @default.
- W2885706133 hasPublicationYear "2019" @default.
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