Consequences of Consumer Confusion in a Financial Services Industry

I shall focus on consequences of consumer confusion in this post. Another article published by me on ‘Customer Confusion in the Financial Services Industry’ focused on three important antecedents to consumer confusion namely; expectations, attribute confusion and information confusion in the context of financial services industry (i.e. banks, insurance. credit card, mortgage and other such investment firms).

In this post I will focus on three consequences of consumer confusion: (1) attribute satisfaction; (b) information satisfaction and (c) overall satisfaction.

Using quantitative method and recognised scales in the fields of psychological science and consumer behavior, we examined the antecedents and consequences of customer confusion. The findings indicate that expectations, attribute confusion and information confusion importantly impact overall confusion.

Furthermore, we also discovered that attribute confusion importantly affects product and information satisfaction however expectations don’t. It was found that information confusion importantly impacted information satisfaction but did not impact attribute satisfaction. We also discovered the considerable impact of overall confusion; attribute satisfaction and information satisfaction on buying decision. Our outcomes suggest that customer confusion is a multi-dimensional construct with considerable impact on behavioral intents. There are very many noteworthy theoretical and managerial implications from the precedent findings.

Increasing understanding of clients and diminishing confusion is one of the primary aims of any firm. Moreover, in markets like financial services, where numerous similarities of expectations, attributes and information exist within consumer judgments, decrease in consumer confusion can become a reservoir of competitive advantage. The framework for this research furnishes marketers first hand thought of where and how consumer confusion is induced. This will assist marketing managers in optimizing their organisational resources to handle the multi-faceted phenomenon of consumer confusion. Managers dealing customer confusion as a uni dimensional phenomenon may experience unwanted effects. For example, just bettering the product or service characteristic may reduce product confusion. However, deficient communication and highly multiplied expectations may still lift the overall confusion. Similarly, a good communication effort with a less separated product or service may as well elevate confusion in clients minds.

The findings show that information confusion has an impact on information satisfaction and which in turn, has a strong impact on buying decision. In the setting of FSIs, this finding merits consideration in particular where customers are faced with wide ranging technical and complicated information on the fiscal products which can make implications for purchase decision.

The results also uncover the sizeable affect of information confusion on information satisfaction. However the impact is non-substantial in the case of attribute satisfaction. Therefore, we suggest the use of product and information satisfaction as disjoint constructs in future studies rather than employing overall satisfaction as a single construct. Furthermore, the study findings also represent the complexity of relationship between the constructs. Marketing Managers should see that they process these concepts as stand-alone rather than assuming a causal relationship.

Sources:

Consequences of consumer confusion in FSI

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