Information search and decision-making in credit acquisition

Abstract

This exploratory study employs a mixed-methods approach to investigate consumer decision-making when acquiring credit for significant purchases. We gathered data through preliminary interviews with four participants and online questionnaires administered to 301 respondents, to identify how consumers seek information, evaluate alternatives, and apply decision rules when selecting credit products and providers. Results show that consumers do not invest substantial time in information gathering for their credit decisions, frequently relying on information provided by the retailer, and assessing a limited range of alternatives. The interest rate is the crucial factor for selecting the credit product and provider. The decision-making process typically involves a compensatory rule for selecting the credit product and a lexicographic heuristic for selecting the provider. Consumer satisfaction with credit decisions was found to be influenced by the usefulness of information obtained, ease of comparing credit agreements, past credit experience, and decision rules employed when selecting the credit provider.