Consumer Perceptions of the Consumer Credit Process

Dauten, Dale A.; Dauten, Joel J.

doi:10.1111/j.1745-6606.1976.tb00572.x

Cited by 8 publications

(3 citation statements)

References 3 publications

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“…Such knowledge of this broader market structure is essential to the planning function. Though scattered pieces of literature have looked at competition between different types of installment loans (Dauten and Dauten 1977) and financial advisory services (Wind and Robinson 1972), it seemed desirable to study competition systematically between different service categories at the product variant/type level in the product hierarchy (Lunn 1972). The relevance of these issues to the financial community led to the sponsoring of data collection efforts by a major bank in the Pittsburgh area.…”

Section: Methodology and Resultsmentioning

confidence: 99%

Market Structure Analysis: Hierarchical Clustering of Products Based on Substitution-in-Use

Srivastava

Leone

Shocker

1981

Journal of Marketing

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Section: Methodology and Resultsmentioning

confidence: 99%

Market Structure Analysis: Hierarchical Clustering of Products Based on Substitution-in-Use

Srivastava

Leone

Shocker

1981

Journal of Marketing

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“…Even if decisions are not made impulsively, low levels of information search are commonly reported (e.g., Peterson & Black, 1984). An early example is a study by Day (1972, as cited by Dauten and Dauten, 1976), who found that only 27% of US credit users recalled searching for credit information prior to credit use, and just 20% considered alternative credit sources. In particular, loans that follow classical scripts, such as student loans (Scott & Lewis, 2001), seem to be characterized by particularly low levels of information search.…”

Section: Processes At Credit Acquisitionmentioning

confidence: 99%

Credit use: Psychological perspectives on a multifaceted phenomenon

2011

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Consumer borrowing is a highly topical and multifaceted phenomenon as well as a popular subject for study. We focus on consumer credit use and review the existing literature. To categorize what is known we identify four main psychological perspectives on the phenomenon: credit use as (1) a reflection of the situation, (2) a reflection of the person, (3) a cognitive process, and (4) a social process. On top of these perspectives we view credit use as a process that entails three distinct phases: (1) processes before credit acquisition, (2) processes at credit acquisition, and (3) processes after credit acquisition. We review the international literature along a two-tier structure that aligns the psychological perspectives with a process view of credit. This structure allows us to identify systematic concentrations as well as gaps in the existing research. We consolidate what is known within each perspective and identify what seems to be most urgently missing. Some of the most important gaps relate to research studying credit acquisition from the perspective of credit use as a reflection of the person or as a social process. In particular, research on credit use as a reflection of the person appears to focus exclusively on the first stage of the credit process. We conclude with a discussion that reaches across perspectives and identifies overarching gaps, trends, and open questions. We highlight a series of implicit linkages between perspectives and the geographical regions in which studies related to the perspectives were conducted. Beyond diagnosing a geographical imbalance of research, we argue for future research that systematically addresses interrelations between perspectives. We conclude with a set of global implications and research recommendations.

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“…Different perceptions about credit granting process, components of credit such as interest rate, loan duration, etc and behaviour of credit users are important aspects at the credit take up processes (Kamleitner and Kirchler, 2007). Dauten and Dauten (1976) found that consumers misperceive the credit-granting standards used by banks as well as finance companies. Ranyard and Craig (1995) studies how people evaluate instalment credit and found that people create mental accounts in the evaluation process.…”

Section: Consumer Credit Choicementioning

confidence: 99%

Personal and Situational Factors on Consumer Financing Decisions, a Conceptual Model

Lasantha

Pathirawasam

2017

J. Bus. Technol.

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Expected Utility Theory advocates that individuals make rational decisions. However it is not rare to see consumers deviate from rationality when making consumer credit decisions. Despite the financial literacy, individuals may tend to choose high cost consumer credit forms such as credit card as a mean of financing consumer goods and services which in fact suggests a deviation from economic rationality. The failure of Expected Utility Theory to explain and predict consumer credit decisions that deviate from rationality provide incentives to use an alternate theory; Prospect Theory which counts principles of perceptions and judgement that limit the rationality of choice. Accordingly this theoretical paper suggests personal factors; locus of control, social comparison and selfcontrol and situational factors; life events and income may influence on consumer financing decisions.

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Consumer Perceptions of the Consumer Credit Process

Cited by 8 publications

References 3 publications

Market Structure Analysis: Hierarchical Clustering of Products Based on Substitution-in-Use

Market Structure Analysis: Hierarchical Clustering of Products Based on Substitution-in-Use

Credit use: Psychological perspectives on a multifaceted phenomenon

Personal and Situational Factors on Consumer Financing Decisions, a Conceptual Model

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