The Effects of Summary Information on Consumer Perceptions of Mutual Fund Characteristics

Authors

  • JOHN KOZUP,

    1. 1 John Kozup is the director for the Center for Marketing and Public Policy Research and an assistant professor in the Department of Marketing and Business Law, Villanova University, Villanova, PA (john.kozup@villanova.edu). 2Elizabeth Howlett (formerly Elizabeth Creyer) is a professor of marketing at University of Arkansas, Fayetteville, AR (bhowlett@walton.uark.edu). 3Michael Pagano is the associate director of the Institute for Research in Advanced Financial Technology and an associate professor of finance at Villanova University, Villanova, PA (michael.pagano@villanova.edu).
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  • 1 ELIZABETH HOWLETT,

    1. 1 John Kozup is the director for the Center for Marketing and Public Policy Research and an assistant professor in the Department of Marketing and Business Law, Villanova University, Villanova, PA (john.kozup@villanova.edu). 2Elizabeth Howlett (formerly Elizabeth Creyer) is a professor of marketing at University of Arkansas, Fayetteville, AR (bhowlett@walton.uark.edu). 3Michael Pagano is the associate director of the Institute for Research in Advanced Financial Technology and an associate professor of finance at Villanova University, Villanova, PA (michael.pagano@villanova.edu).
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  • and 2 MICHAEL PAGANO 3

    1. 1 John Kozup is the director for the Center for Marketing and Public Policy Research and an assistant professor in the Department of Marketing and Business Law, Villanova University, Villanova, PA (john.kozup@villanova.edu). 2Elizabeth Howlett (formerly Elizabeth Creyer) is a professor of marketing at University of Arkansas, Fayetteville, AR (bhowlett@walton.uark.edu). 3Michael Pagano is the associate director of the Institute for Research in Advanced Financial Technology and an associate professor of finance at Villanova University, Villanova, PA (michael.pagano@villanova.edu).
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  • The authors wish to thank MSI International, a full-service marketing research firm in King of Prussia, PA, for the use of their Internet panel.

Abstract

Choosing how to best invest for retirement is one of the most important decisions a consumer can make. Unfortunately, this can be an especially challenging task given the current financial information disclosure environment. The objective of this research was to explore whether a modified method of supplemental information disclosure impacts investors’ fund evaluations and investment intentions. Results indicate that while investors continue to place too much emphasis on prior performance, the provision of supplemental information, particularly in a graphical format, interacts with performance and investment knowledge to influence perceptions and evaluations of mutual funds.

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