Swee-Hoon Chuah, James F. Devlin
Sep 13, 2011
Citations
0
Influential Citations
25
Citations
Quality indicators
Journal
International Journal of Bank Marketing
Abstract
Purpose – It has been argued that the insights provided by behavioural economics have profound implications for the study and practice of marketing. The purpose of this paper is to provide a detailed analysis of how such insights help enhance understanding of aspects of marketing and consumer behaviour in financial services markets.Design/methodology/approach – This paper looks at various facets of behavioural economics which it is felt provide particularly important and salient insights in the context of financial services. In particular, it studies loss aversion and prospect theory, status quo bias and defaults, framing and anchoring effects, hyperbolic discounting, availability effect and salience and over‐confidence. In doing so, it provides a number of examples from the financial services context which provide insightful and informative insights for both commercial practitioners and policymakers. In each case, relevant phenomena are introduced and explained before providing a number of applications a...