What’s Advertising Content Worth? Evidence from a consumer credit marketing field experiment
What’s Advertising Content Worth? Evidence from a consumer credit marketing field experiment
7 July, 2020 •Similar Articles
The Impact of Credit Cards on Spending: A Field Experiment
In a field experiment, we measure the impact of payment with credit card as compared with cash on insurance company employees’ spending on lunch ...
Healthcare.gov 3.0 – Behavioral Economics and Insurance Exchanges
To test whether such associations might influence people’s perceptions of insurance plans, the researchers interviewed people in buses and asked ...
The role of choice architecture in promoting saving at tax time: Evidence from a large-scale field experiment
A large-scale field experiment (N = 646,116) from the Refund to Savings Initiative tested a choice architecture and persuasive messaging interventi...
Firms spend billions of dollars each year advertising consumer products in order to influence demand. Much of these outlays are on the creative design of advertising content. Creative content often uses nuances of presentation and framing that have large effects on consumer decision making in laboratory studies. But there is little field evidence on the effect of advertising content as it compares in magnitude to the effect of price. We analyse a direct mail field experiment in South Africa implemented by a consumer lender that randomized creative content and loan price simultaneously. We find that content has significant effects on demand. There is also some evidence that the magnitude of content sensitivity is large relative to price sensitivity. However, it was difficult to predict which particular types of content would significantly impact demand. This fits with a central premise of psychology context matters— and highlights the importance of testing the robustness of laboratory findings in the field.