When developing financial services marketing strategies, it is essential to appreciate some of the limitations cited in this chapter. However, it is equally imporant to appreciate the ethical dilemmas that these limitations present to the financial services marketer. The abuse of the consumers' inability to process the necessary information when evaluating a financial service is not only unethical, but in certain cases, it may violate regulations and result in legal repercussions. It is therefore essential for a financial services marketer not only to be aware of regulations that govern and restrict their marketing activities, but also to be fully aware of the company policies that may constrain the scope of activities one could engage in.
Unfair, deceptive, or abusive acts and practices can cause significant financial injury to consumers, erode consumer confidence, and undermine the financial marketplace (Wright, 2011). Under the Dodd-Frank Act, it is unlawful for any provider of consumer financial products or services or a service provider to engage in any unfair, deceptive or abusive act or practice. Understanding the factors that determine which options consumers choose and whether they make rather than defer purchase decisions is critical for the development of marketing strategies. A major contribution of behavioral decision research has been to establish the notion of uncertain preferences, the idea that consumer preferences are not well defined but rather constructed in the process of making a choice (Novemsky, 2009). This constructive viewpoint suggests that different tasks and contexts highlight different aspects of the options, focusing consumers on different considerations that lead to seemingly inconsistent decisions (Novemsky, 2009). It is argued that the overwhelming advantage firms have in knowledge and understanding means that it is essential for the regulator to ensure that products and services provided by...
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