Designing disclosures to improve consumer financial decision making: Lessons learned from consumer testing

File(s)
Date
2010Author
Hogarth, Jeanne M.
Merry, Ellen A.
Publisher
Center for Financial Security
Metadata
Show full item recordAbstract
We explore findings from consumer testing of disclosures and what these can tell
us about how and how much well-designed disclosures may improve consumer
understanding of financial products. Consumer testing conducted as a part of the
Federal Reserve Board’s regulatory development process has used qualitative and
quantitative methods in controlled environments to formulate and test new
disclosures. The goal has been to develop disclosures that consumers can
comprehend and use in decision making; implicitly, better disclosures should lead
to better decisions. This paper provides some background on the Board’s testing
projects; highlights findings from this research and what they imply about the
ways and the extent to which design may improve the function of disclosures; and
discusses the challenges of applying the results from testing to the decisions
consumers would make in real-world transactions.
Subject
Consumer Financial Decision Making
Consumer Testing
Financial Services
Permanent Link
http://digital.library.wisc.edu/1793/90762Type
Working Paper
Description
This paper explores findings from consumer testing of disclosures and what these can tell us about how and how much well-designed disclosures may improve consumer understanding of financial products.
Citation
Hogarth, J. M., & Merry, E. A. (2010). Designing disclosures to improve consumer financial decision making: Lessons learned from consumer testing . Center for Financial Security .