Credit market advertising effects

Abstract

The study was aimed at observing the relationship between the credit market advertisings on consumers, particularly on the financially illiterate population of Armenia. To study the pattern, the participants of the online survey has been sequentially exposed to informative and aggressive advertising with follow up qualitative questions and whether they would take advertised credit or not. Ultimately, it was found that financial literacy is a determinant for loan taking when the target is exposed to aggressive advertising. However, it was also revealed that this is not the case with informative advertising, essentially due to the purpose of the informative advertising which is raising awareness among potential consumers as well as non-appealing nature of the informative commercials that is not attractive to the viewer.