Identifying the factors that affect the knowledge of mortgage loans' total cost

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pablo Farías
Keyword(s):  
Financial Services ◽  
Mortgage Loan ◽  
Elaboration Likelihood ◽  
Mortgage Loans ◽  
Content Type ◽  
Total Cost ◽  
Positive Effects ◽  
Brand Credibility ◽  
Likelihood Model ◽  
Information Shortcuts

PurposeThis study identifies the factors that affect the knowledge of mortgage loans' total cost.Design/methodology/approachEmpirical research utilizing a survey administered through in-home interviews was conducted. This study adopts the elaboration likelihood model (ELM) theory to analyze the influence of information shortcuts and borrowers' abilities and motivations on the knowledge of mortgage loans' total cost.FindingsThe results support that the use of the price–quality cue and brand credibility have negative and positive effects, respectively, on the knowledge of mortgage loans' total cost. Households' primary income earners have a higher knowledge of mortgage loans' total cost. The results also show that the household's primary income earners who are price conscious and brand nonbelievers have more knowledge of mortgage loans' total cost.Originality/valuePrice knowledge studies in financial services, especially in the mortgage loan industry, are scarce. Consequently, understanding the price knowledge level for mortgage loans and its potential antecedents has been insufficient.

Understanding online health community users' information adoption intention: an elaboration likelihood model perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tao Zhou
Keyword(s):  
User Behavior ◽  
Source Credibility ◽  
Elaboration Likelihood Model ◽  
Elaboration Likelihood ◽  
Content Type ◽  
Peripheral Cues ◽  
Likelihood Model ◽  
Adoption Intention ◽  
Information Adoption ◽  
Central Cues

PurposeThe purpose of this research is to draw on the elaboration likelihood model (ELM) to examine users' information adoption intention in online health communities (OHC).Design/methodology/approachThe authors collected 350 valid responses using a survey and conducted the moderated regression analysis to examine the research model.FindingsThe results indicated that users' information adoption intention is influenced by both central cues (argument quality) and peripheral cues (source credibility and emotional support). In addition, self-efficacy moderates the effect of both central cues and peripheral cues on information adoption intention.Originality/valuePrevious research has focused on the effect of individual motivations such as reciprocity and benefits on user behavior, and has seldom disclosed the influencing process of external factors on OHC users' behavioral decision. This research tries to fill the gap by adopting ELM to uncover the mechanism underlying OHC users' information adoption.

Exploring online and offline shopping motivational values in Malaysia

2018 ◽  
Vol 30 (2) ◽  
pp. 352-379 ◽  
Author(s):  
Rachel Mei Ming Wong ◽  
Shiet Ching Wong ◽  
Guek Nee Ke
Keyword(s):  
Factor Analysis ◽  
Factor Model ◽  
Elaboration Likelihood Model ◽  
Elaboration Likelihood ◽  
Age Group ◽  
Content Type ◽  
Societal Values ◽  
Gender And Age ◽  
Likelihood Model ◽  
Motivational Values

Purpose The purpose of this paper is to combine the elaboration likelihood model and hedonic/utilitarian values into a coherent model of shopping motivational values for online and offline Malaysian shoppers. Once these values were identified, they were compared to one another based on shopping channel, gender, and age group. Design/methodology/approach The Shopping Motivational Value Questionnaire was developed by the researcher after extensive literature review and measured the respondent’s perception toward shopping motivational values in both shopping channels. Data were collected from 306 Malaysians above the age of 21, and analyzed using exploratory factor analysis and pairwise t-test techniques. Findings The factor analysis revealed a three-factor model of shopping motivational values. Gratification Values were the most important to shoppers, followed by Essential and Societal Values. Shoppers perceived all these motivational values as important when shopping offline as compared to online, regardless of gender and age group. Research limitations/implications The results of the factor analysis revealed a three-factor model of shopping motivational values: Gratification Values which were the most important to shoppers, followed by Essential and Societal Values. These values were then compared to one another based on shopping channel, gender, and age group. Results indicate that shoppers perceived all these motivational values as important when shopping offline rather than online, regardless of gender and age group. Moreover, the perception of shoppers toward specific product categories and other shopping channels were not taken into account. Originality/value This study attempted to combine the elaboration likelihood model and hedonic and utilitarian values into a coherent model. A questionnaire was developed by the researcher with these two theoretical models as its foundation. Additionally, the shopping motivational values of this study have been formulated to be compatible to both shopping channels.

Determinants of the knowledge of the total cost of consumer loans

2019 ◽  
Vol 32 (1) ◽  
pp. 2-19
Author(s):  
Pablo Farías
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Market Segment ◽  
Actual Knowledge ◽  
Content Type ◽  
Total Cost ◽  
Consumer Loans ◽  
Vulnerable Consumers ◽  
Advertising Exposure ◽  
Price Advertising

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.

Facebook marketing campaign benchmarking for a franchised hotel

2018 ◽  
Vol 30 (3) ◽  
pp. 1705-1723 ◽  
Author(s):  
Ying Chen Lo ◽  
Chin-Yi Fang
Keyword(s):  
Evaluation Model ◽  
Quadrant Analysis ◽  
Elaboration Likelihood ◽  
Data Envelopment ◽  
Value Analysis ◽  
Content Type ◽  
Expert Opinions ◽  
Performance Evaluation Model ◽  
Likelihood Model ◽  
Four Quadrant

Purpose This study aims to develop a performance evaluation model for Facebook (FB) marketing campaigns (FBMCs) for a franchised hotel, distinguish four quadrants based on efficiency and customer attention and suggest improvements for inefficient FBMCs based on the slack value analysis. Design/methodology/approach The paper applied the elaboration likelihood model to select three inputs (text, picture and color) and three outputs (number of people reached; reactions, comments and shares; and clicks on post) based on the literature and expert opinions to assess 60 FBMCs for hotels through data envelopment analysis and a robustness test. The four-quadrant analysis (benchmark, improvements in efficiency and customer attention and fade-out) provides suggestions for underperforming FBMCs. Findings The results indicate that the efficiency of the greeting FBMCs is better than that of the event and promotion FBMCs. The projection of input value analysis showed that an average of 50 words, one picture and six colors is the benchmark of FBMCs. Research limitations/implications Sixty FBMCs for the same franchised hotel were examined. Further research could extend this model to different hotels for generalization. Practical implications The findings suggest that developing shorter text lengths, concise photos and colors of greeting messages on FB could be efficient for FBMCs. Originality/value This paper contributes in assessing the performance of FBMCs to identify the benchmark FBMCs with the higher efficiency and more customer attention for a franchised hotel.

scholarly journals Malaysian residential mortgage loan default: a micro-level analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Azira Abdul Adzis ◽  
Hock Eam Lim ◽  
Siew Goh Yeok ◽  
Asish Saha
Keyword(s):  
Financial Institutions ◽  
Mortgage Loan ◽  
Mortgage Loans ◽  
Loan Default ◽  
Content Type ◽  
Future Studies ◽  
Residential Mortgage ◽  
The Government ◽  
The Individual ◽  
Lending Institutions

PurposeThis study investigates factors contributing to residential mortgage loans default by utilizing a unique dataset of borrowers' default data from one of the pioneer lending institutions in Malaysia that provides home financing to the public. Studies on mortgage loan default have been extensively examined, but limited studies utilize the individual borrower's data, as financial institutions generally hesitant to reveal their customers' data due to confidentiality issue.Design/methodology/approachThis study uses logistic regression model to analyze 47,158 housing loan borrowers' data for the year 2016.FindingsThe findings suggest that male borrowers, Malay and other type of ethnicity, guarantor availability, loan original balance, loan tenure, loan interest rate and loan-to-value (LTV) ratio are the significant factors that influence mortgage loans default in Malaysia.Research limitations/implicationsFuture studies may expand the sample by employing data from other types of financial institutions that would give greater insights as findings might vary due to differences in objectives, functions and regulations. In addition, the findings are subjected to the censoring bias where future studies could perform the survival analysis to control for censoring bias and re-validating the findings of the present study.Practical implicationsThe findings provide valuable insights for lending institutions and the government to formulate housing loan policy in Malaysia.Originality/valueTo the best of the authors' knowledge, this is the first study in the context of emerging economies that uses financial institution's internal data to investigate factors of mortgage loan default.

The impact of eWOM on consumer brand engagement

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mukta Srivastava ◽  
Sreeram Sivaramakrishnan
Keyword(s):  
Survey Method ◽  
Elaboration Likelihood ◽  
Content Type ◽  
Product Categories ◽  
Critical Gap ◽  
Brand Engagement ◽  
Analysis Technique ◽  
Likelihood Model ◽  
The Impact ◽  
The Relationship

PurposeIt is empirically proven that enhanced engagement with a focal medium motivates a consumer to post electronic word-of-mouth (eWOM). However, what has not been explored is whether enhanced exposure to eWOM results in greater consumer brand engagement (CBE). While answering this question, this study also assesses the influence of eWOM and CBE on customer loyalty and satisfaction with the brand. The study has been conducted across two products –a search product and an experience product.Design/methodology/approachA model is developed and hypotheses are proposed using the Elaboration Likelihood Model which are then tested using PLS-SEM. Data was collected from 712 respondents across India.FindingsFindings indicate that eWOM significantly and positively affects CBE in both product categories. CBE significantly and positively influences both satisfaction and loyalty. eWOM is not significantly related to loyalty for both search and experience products. It is, however, found to be significantly and positively associated with satisfaction in case of the experience product, while a non-significant relationship was found for the search product.Research limitations/implicationsThe present study uses the survey method and PLS-SEM as the analysis technique which makes it correlational and confirmatory. The study, therefore, makes no firm claims on establishing causality.Originality/valueThe paper presents an original idea that CBE fully mediates the relationship between eWOM and satisfaction. This study attempts to fulfil a critical gap in the existing literature by establishing that eWOM generated by other users/consumers about a brand has a significant impact on CBE irrespective of the type of the product that is search or experience.

Dissuasion: the Elaboration Likelihood Model and young children

2016 ◽  
Vol 17 (3) ◽  
pp. 210-225 ◽  
Author(s):  
Anna R. McAlister ◽  
Danielle Bargh
Keyword(s):  
Visual Cues ◽  
Elaboration Likelihood Model ◽  
Elaboration Likelihood ◽  
Persuasive Messages ◽  
Breakfast Cereal ◽  
Content Type ◽  
Level Of Involvement ◽  
Persuasive Communications ◽  
Likelihood Model ◽  
Central Route

Purpose The Elaboration Likelihood Model (ELM) proposes two routes to persuasion – the central route (persuasion occurs via information) and the peripheral route (persuasion occurs via visual cues, attractive actors and other source characteristics). The central route is typically used for high-involvement decisions and the peripheral route is used in low involvement situations. The ELM has received extensive support when tested with adults; however, its ability to explain young children’s responses to persuasive communications has not been fully tested. Hence, the purpose of this research is to assess whether the standard tenets of the ELM apply to children’s processing of persuasive messages. Design/methodology/approach This study involved 84 preschool children, ages three to six. It used a 2 (involvement) × 2 (argument strength) × 2 (source attractiveness) design to test children’s responsiveness to advertisements for a novel breakfast cereal. Findings The findings suggest that children are naturally inclined to be persuaded by advertising messages, regardless of their level of involvement. It is the weak arguments and weak peripheral cues that dissuade children who are highly involved with a message. Originality/value This research makes an original contribution to the existing literature by testing the extent to which the ELM applies to children’s processing of persuasive advertisements. The finding that weak peripherals dissuade children from believing an ad’s message has strong implications for advertising practitioners.

Comprehending CSR messages: applying the elaboration likelihood model

2018 ◽  
Vol 23 (1) ◽  
pp. 17-34 ◽  
Author(s):  
Nicholas Browning ◽  
Osenkor Gogo ◽  
Marvin Kimmel
Keyword(s):  
Social Responsibility ◽  
Elaboration Likelihood Model ◽  
Experimental Manipulation ◽  
Elaboration Likelihood ◽  
Message Complexity ◽  
Organizational Image ◽  
Content Type ◽  
Likelihood Model ◽  
Cause Involvement ◽  
Corporate Social

Purpose Using the elaboration likelihood model as a framework, the purpose of this paper is to investigate the effects of cause involvement, ability to process, and motivation to process on consumer judgments of organizational image following exposure to a corporate social responsibility (CSR) message. Design/methodology/approach This study relies upon an experimental manipulation of message complexity and uses quantitative survey data. The data were analyzed via tests of means differences, hierarchical multiple OLS regression, and mediation analysis. Findings The authors found that CSR’s influence on image is unaffected by message complexity – at least directly. However, CSR’s influence on image is intensified by greater cause involvement and information processing ability, which indicates that central route processing is more likely to move the needle on such assessments. Additionally, involvement serves as an important mediator on the effects that ability and motivation to process have on ratings of organizational image. Originality/value The findings suggest the necessity for communicators of CSR to foster cause involvement in consumers if social responsibility efforts are to resonate and garner positive results. Additionally, should organizations wish to create deeper elaboration about CSR messages among consumers, simple, straightforward messaging appears most effective. Complex messages can, however, serve as valuable peripheral cues among certain audiences.

The double-edge effect of retailers’ cause-related marketing

2016 ◽  
Vol 44 (6) ◽  
pp. 607-626 ◽  
Author(s):  
Aïda Mimouni Chaabane ◽  
Béatrice Parguel
Keyword(s):  
Elaboration Likelihood ◽  
Warm Glow ◽  
Negative Effects ◽  
Content Type ◽  
Marketing Effectiveness ◽  
Cause Related Marketing ◽  
Double Edge ◽  
Likelihood Model ◽  
Set Up ◽  
Product Sales

Purpose – Cause-related marketing – linking product sales with donations to a cause – are popular with consumers because they produce warm-glow feelings (the positive route). But when they involve large donations, they may trigger consumer scepticism, reducing the warm glow (the negative route). Drawing on the elaboration likelihood model, the purpose of this paper is to examine whether large donations in cause-related marketing can produce consumer scepticism and reduce the warm-glow effect and positive attitude towards the retailer. Design/methodology/approach – An experiment varying the donation size (large, medium, small) in a cause-related marketing offer run by an office equipment retailer is set up. Hypotheses are tested using bootstrapping regression analyses. Findings – The negative route has the greater effect: scepticism towards the offer mediates the relationship between donation size and the warm glow. Furthermore, scepticism towards a large donation is higher (lower) for respondents scoring low (high) on altruism and high (low) on familiarity with cause-related marketing. Practical implications – When using cause-related marketing, retailers should choose their features and target audience carefully in order to reduce scepticism, e.g., small donations should be offered in promotions targeting consumers who are familiar with cause-related marketing and show low altruism. Originality/value – This study contributes to the recent research examining the negative effects of cause-related marketing by explicitly conceptualising and measuring scepticism towards cause-related marketing. The findings are also valuable because they indicate the importance of a shift in focus, away from the conventional question of cause-related marketing effectiveness to the more specific and under-investigated problem of the appropriate core target consumers.

Exploring digital library usage for getting information from the ELM perspective

2016 ◽  
Vol 68 (3) ◽  
pp. 286-305 ◽  
Author(s):  
Xianjin Zha ◽  
Li Li ◽  
Yalan Yan ◽  
Qian Wang ◽  
Gang Wang
Keyword(s):  
Digital Library ◽  
Digital Libraries ◽  
Information Quality ◽  
Source Credibility ◽  
Information Need ◽  
Content Type ◽  
Positive Effects ◽  
Library Research ◽  
Likelihood Model ◽  
Route Information

Purpose – The elaboration likelihood model (ELM) provides a general framework for understanding the basic processes underlying the effectiveness of persuasion. The purpose of this paper is to utilize the ELM to understand the basic processes underlying the effectiveness of persuasion to use digital libraries for getting information. Design/methodology/approach – The survey data collection was conducted in one comprehensive university. The partial least squares structured equation modelling was employed to verify the research model. Findings – Source credibility and reputation have positive effects on information usefulness which further significantly impacts digital library usage for getting information. The effect of information quality on information usefulness is overpowered by reputation. Information need positively moderates the effect of information quality on information usefulness and negatively moderates the effect of reputation on information usefulness. Practical implications – Digital libraries enormously influence the way how individuals gather information over the world. However, the important status of digital libraries as conventional information sources in practice invites appreciation by more and more people. The authors believe the findings of this study provide useful insights for facilitating digital libraries to be fully accessed and utilized. Originality/value – This study explores the effects of the central route (information quality) and the peripheral route (source credibility and reputation) on digital library usage for getting information by extending the ELM with information need as a motivation variable, presenting a new lens for digital library research and practice alike.

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