Unshrouding Product-Specific Attributes Through Financial Education
The study introduces a financial education video that helps consumers ask the right questions.
Financial products often have shrouded attributes - that is these attributes are hidden and, therefore, it is difficult for consumers to understand them, or ask questions about them. If consumers don’t ask the right questions, they don’t get the right answers. The study introduces a financial education video that helps consumers ask the right questions. It also provides rules of thumb to evaluate the answers they are given by sales persons of the financial products. The study shows that the videos make a small impact on consumers' understanding of product features. However, it also finds that this may not be enough by itself to make a dent in the market and needs larger effects of education as well as regulatory interventions.