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

Yao Song (School of Design, The Hong Kong Polytechnic University, Kowloon, Hong Kong SAR)
Yan Luximon (School of Design, The Hong Kong Polytechnic University, Kowloon, Hong Kong SAR)
Jing Luo (School of Design, The Hong Kong Polytechnic University, Kowloon, Hong Kong SAR)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 3 April 2020

Issue publication date: 2 June 2020

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Abstract

Purpose

The 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/approach

Following 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.

Findings

For 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/value

When 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.

Keywords

Acknowledgements

The authors would like to thank the support of the UGC Funding Scheme from the Hong Kong Polytechnic University (G-RL6B).Conflicts of interest: The authors declare no conflict of interest.

Citation

Song, Y., Luximon, Y. and Luo, J. (2020), "A moderated mediation analysis of the effect of lettering case and color temperature on trustworthiness perceptions and investment decisions", International Journal of Bank Marketing, Vol. 38 No. 4, pp. 987-1005. https://doi.org/10.1108/IJBM-09-2019-0315

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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