Incorporating a discrete choice experiment into fieldwork interviews to improve understanding of household decisions to purchase high-priced́ credit /
In 2016, our review of the research literature on consumer credit revealed what looked like three crucial shortcomings. The literature did not examine the values that borrowers ascribed to tangible and intangible characteristics of prospective loans (e.g., interest rate, approval speed, trust in len...
| Main Authors: | , |
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| Format: | eBook |
| Language: | English |
| Published: |
London :
SAGE Publications Ltd,
2019.
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| Series: | SAGE Research Methods. Cases.
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| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
| Summary: | In 2016, our review of the research literature on consumer credit revealed what looked like three crucial shortcomings. The literature did not examine the values that borrowers ascribed to tangible and intangible characteristics of prospective loans (e.g., interest rate, approval speed, trust in lender). It did not assess context, such as urgencies, that might affect these attribute valuations at the decision moment, including price. It did not account for the value of benefits that borrowers expect from use of loans. Because the literature seemed to disregard non-price factors, it sometimes concluded that people willing to pay dearly are irrational, ignorant, or impatient. Without evidence on decision factors and calculations involved, such attributions struck us as premature. Accordingly, we set out to discover more about the factors consumers take into account when deciding between loan types, the preferences they exhibit with respect to these factors, and how these preferences influence choices of loan type. This case study describes our process of discovery, still underway, involving acquisition of data from interviews with individuals who obtain high-priced loans, largely from unregulated lenders (i.e., loan sharks), and during interviews, from engaging them in a discrete choice experiment designed to tease out the logic underlying their borrowing decisions. |
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| Physical Description: | 1 online resource : illustrations. |
| Bibliography: | Includes bibliographical references and index. |
| ISBN: | 9781526473035 1526473038 |