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Understanding Consumer Choice in Financial Services

View this information in PDF format.

 

Volterra recently conducted a theoretical piece of work commissioned by the FSA that considered the circumstances in which more choice may not be a good thing for consumers. This work suggested that beyond a rather small number of competing choices, greater choice is more likely to reduce satisfaction than it is to increase it.

The Future Foundation and Volterra took this research further, and for the first time put the FSA model into practice to better understand the implications of choice for consumers and companies. Our research concluded that the potential implications for financial service providers is wide reaching.

We set out to determine how consumers go through the decision-making process using a stage-by-stage process – to give us a better understanding of how choices when purchasing financial services are made and ultimately, to determine how exactly the proliferation of choice in financial markets affects consumer behaviour.

 

How long does it take consumers to reach a decision on different financial products? Does increased choice make consumers unhappy? Do they typically encounter regret after consumption as a result of the inflated choice available to them?

 

This 95-page report including the Volterra Modelling Methodology is now available to purchase for £3,000.

Presentations are also available for an additional cost. To find out more about presentations or for more information about the Report please contact pormerod@volterra.co.uk or call 020 8878 6333.

 

Read the Introduction to Understanding Consumer Choice in Financial Services.