A moderated mediation analysis of the effect of lettering case and color temperature on trustworthiness perceptions and investment decisions

Abstract

PurposeThe purpose of this study is to test the theoretical framework of lettering case, color temperature, perceived trustworthiness and investment intentions. First, it aims to test whether the effect of lettering case on investment intentions is mediated by trustworthiness. Second, the study will examine if this process is moderated by color temperature.Design/methodology/approachFollowing the behavioral research method, this study employed a 2 (the fully-lowercase slogan vs the initial-uppercase slogan) by 2 (warm-color design vs cool-color design) full factorial between-subject design. Two hundred participants were recruited for the experiment to test the hypotheses.FindingsFor the lowercase slogans (vs uppercase slogans), we found that people tended to have a high level of perceived trustworthiness, which led to a high level of investment intentions. In addition, the indirect effect of the lettering case on investment intentions through the perceived trustworthiness was moderated by color temperature. Specifically, the visually warm advertisement (vs visually cool design) would strengthen the effect of lowercase slogans on customers' investment intentions.Originality/valueWhen people make a financial decision with limited, incomplete or overly complex information, simplified visual heuristics, rather than rational algorithmic processing, play a significant role in their decision-making process. However, only a limited amount of research has addressed the effect of the lettering case on customers' perceptions and the consequent decision-making process from a financial advertising perspective. This study tries to supplement and extend the visual heuristics theory, highlighting the role of simplified heuristics, rather than rational algorithmic processing, in financial customers' decision-making process.

Blue and red in financial documents: the influence on attentional mechanisms and behavior

“…Despite the abundance of studies in this area, there is a paucity of research that tries to unveil color influence on financial consumers' decision making. The paper by Song et al (2020) focuses on financial advertising and suggests that a warm color could strengthen the perceived trustworthiness in the financial ad. The present experimental study contributes to color research in the bank marketing strand of the literature, clarifying that the specific context in which the subjects are embedded affects the impact of color on behavior.…”

“…Similarly to the virtual shopping landscape, financial consumers are struck, though also reassured by web pages of banks that have shine colors. The recent paper by Song et al (2020) on the effect of lettering case on trustworthiness perceptions and investment decisions has revealed a moderating role of color in the advertising context, showing that warm colors strengthen the perceived trustworthiness in the financial ad. Given that the contexts of investment platforms and financial advertising differ from the setting of disclosing key information to investors to allow them to make informed decisions, and since findings from marketing and finance drive different results, we propose the following null hypothesis: H2.…”

How does information overload about COVID-19 vaccines influence individuals’ vaccination intentions? The roles of cyberchondria, perceived risk, and vaccine skepticism

“…Three measurement items of vaccine skepticism were adapted from Johnson, Limbu, Jayachandran, and Reddy (2019) . This study adapted two items from Jozkowski and Geshnizjani (2014) and four items from Song, Luximon, and Luo (2020) to measure vaccination intention and celebrity endorsement trustworthiness, respectively.…”

A Detailed investigation on Financial literacy and wellbeing

“…Concerning the nuanced relationship between color temperature and behavioral reaction, although visual warmth could elicit people"s trustworthiness evaluations toward others behavioral reaction from the perspective of financial advertising. In order to address this research gap, this study developed a framework on how the lettering case affects financial customers" investment intentions by identifying the mediating role of perceived trustworthiness and the moderating role of color temperature in this mediation process [18].Aside from the theory of rational selection, behavioral economics today describes the circumstances that have developed itself into a research branch of economic science, leading to cognitively irrational conclusions. Although the assumptions of rational selection theory are part of a consistent set of economic and financial education, the educational relationship of behavioral economics has not been formally developed to date.…”