1. What‘s Advertising Content Worth? Evidence From a Consumer Credit Marketing Field Experiement By MARIANNE BERTRAND DEAN KARLAN SENDHIL MULLAINATHAN ELDAR SHAFIR JONATHAN ZINMAN

2. Introduction  The deliberative or reasoned mode  System II VS.  The peripheral or intuitive mode  System I

3. Overview Introduction Experimental Design Results Conclusion

4. Introduction Firms spend billions of dollars each year on advertising consumer products to influence demand. it’s difficult to predict ex ante the impact of ad. (Which advertising Features have the most influence on people?) “advertising may be defined as the provision of information about the availability and quality of a commodity.” (Stigler)

5. Experimental Design Cooperation with a consumer lender (the “Lender”) who had operated for over twenty years as one of the largest, most profitable lenders in South Africa Analyze a direct mail field experiment in South Africa implemented by a consumer lender that randomized ad. content, loan price, and loan offer deadlines simultaneously Survey treatment: Mailers to 53194 former clients with randomization advertising content  implement 8 key features

6. System I Features Visual (largely uninformative) images tend to be processed through intuitive cognitive systems. The 2. Feature displays a table with small and large information with the corresponding problem of “choice overload”  

7. System I/II Features The 3. feature can be an incentive for customers because relevant information are given(loan amount, maturity, and monthly payment) may induce demand by signaling that the Lender indeed has “no hidden costs” 

8. System II Features There is no evidence that a raffle change takeup decision which still based on economic factors Consumers can get a “gain frame” or “loss frame” which can affect the decision   The Lender was particularly confident that the language affinity treatment would increase takeup and insisted that most eligible clients get it (Feature 7)  The lender was sure that this treatment would not influence takeup, although there may be models with very boundedly rational consumers (Feature 8) 

9. System II Features The deadline tends to be as a more larger one which contradicts that consumers prefers a short deadline with the assumption of procrastination. 

10. Mail Design

11. Formula

12. Results

14. Conclusion Advertising content can have an important effect on consumer choice The most important features: one example loan, no suggested loan use and female photo Advertising content has a more persuasive impact for men than for Woman (who don‘t get affected by advertising). In the end it‘s difficuilt to determine the ex-ante impact of advertising because every person reacts differently on ad.  psychological and context matters

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