Using interactive “Nutrition labels” for financial products to assist decision making under uncertainty

Junius Gunaratne, Oded Nov

    Research output: Contribution to journalArticle

    Abstract

    Product information labels can help users understand complex information, leading them to make better decisions. One area where consumers are particularly prone to make costly decision-making errors is long-term saving, which requires understanding of complex concepts such as uncertainty and trade-offs. Although most people are poorly equipped to deal with such concepts, interactive design can potentially help users make better decisions. We developed an interactive information label to assist consumers with retirement saving decision-making. To evaluate it, we exposed 450 users to one of four user interface conditions in a retirement saving simulator where they made 35 yearly decisions under changing circumstances. We found a significantly better ability of users to reach their goals with the information label. Furthermore, users who interacted with the label made better decisions than those who were presented with a static information label. Lastly, we found the label particularly effective in helping novice savers.

    Original languageEnglish (US)
    Pages (from-to)1836-1849
    Number of pages14
    JournalJournal of the Association for Information Science and Technology
    Volume68
    Issue number8
    DOIs
    StatePublished - Aug 1 2017

    Fingerprint

    Nutrition
    nutrition
    Labels
    Decision making
    uncertainty
    decision making
    retirement
    user interface
    User interfaces
    Uncertainty
    Financial products
    Decision making under uncertainty
    Simulators
    ability
    Retirement saving

    ASJC Scopus subject areas

    • Information Systems
    • Computer Networks and Communications
    • Information Systems and Management
    • Library and Information Sciences

    Cite this

    Using interactive “Nutrition labels” for financial products to assist decision making under uncertainty. / Gunaratne, Junius; Nov, Oded.

    In: Journal of the Association for Information Science and Technology, Vol. 68, No. 8, 01.08.2017, p. 1836-1849.

    Research output: Contribution to journalArticle

    @article{9e89d9c1eb134cbdb0c1518d34a796a2,
    title = "Using interactive “Nutrition labels” for financial products to assist decision making under uncertainty",
    abstract = "Product information labels can help users understand complex information, leading them to make better decisions. One area where consumers are particularly prone to make costly decision-making errors is long-term saving, which requires understanding of complex concepts such as uncertainty and trade-offs. Although most people are poorly equipped to deal with such concepts, interactive design can potentially help users make better decisions. We developed an interactive information label to assist consumers with retirement saving decision-making. To evaluate it, we exposed 450 users to one of four user interface conditions in a retirement saving simulator where they made 35 yearly decisions under changing circumstances. We found a significantly better ability of users to reach their goals with the information label. Furthermore, users who interacted with the label made better decisions than those who were presented with a static information label. Lastly, we found the label particularly effective in helping novice savers.",
    author = "Junius Gunaratne and Oded Nov",
    year = "2017",
    month = "8",
    day = "1",
    doi = "10.1002/asi.23844",
    language = "English (US)",
    volume = "68",
    pages = "1836--1849",
    journal = "Journal of the Association for Information Science and Technology",
    issn = "2330-1635",
    publisher = "John Wiley and Sons Ltd",
    number = "8",

    }

    TY - JOUR

    T1 - Using interactive “Nutrition labels” for financial products to assist decision making under uncertainty

    AU - Gunaratne, Junius

    AU - Nov, Oded

    PY - 2017/8/1

    Y1 - 2017/8/1

    N2 - Product information labels can help users understand complex information, leading them to make better decisions. One area where consumers are particularly prone to make costly decision-making errors is long-term saving, which requires understanding of complex concepts such as uncertainty and trade-offs. Although most people are poorly equipped to deal with such concepts, interactive design can potentially help users make better decisions. We developed an interactive information label to assist consumers with retirement saving decision-making. To evaluate it, we exposed 450 users to one of four user interface conditions in a retirement saving simulator where they made 35 yearly decisions under changing circumstances. We found a significantly better ability of users to reach their goals with the information label. Furthermore, users who interacted with the label made better decisions than those who were presented with a static information label. Lastly, we found the label particularly effective in helping novice savers.

    AB - Product information labels can help users understand complex information, leading them to make better decisions. One area where consumers are particularly prone to make costly decision-making errors is long-term saving, which requires understanding of complex concepts such as uncertainty and trade-offs. Although most people are poorly equipped to deal with such concepts, interactive design can potentially help users make better decisions. We developed an interactive information label to assist consumers with retirement saving decision-making. To evaluate it, we exposed 450 users to one of four user interface conditions in a retirement saving simulator where they made 35 yearly decisions under changing circumstances. We found a significantly better ability of users to reach their goals with the information label. Furthermore, users who interacted with the label made better decisions than those who were presented with a static information label. Lastly, we found the label particularly effective in helping novice savers.

    UR - http://www.scopus.com/inward/record.url?scp=85024376790&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=85024376790&partnerID=8YFLogxK

    U2 - 10.1002/asi.23844

    DO - 10.1002/asi.23844

    M3 - Article

    VL - 68

    SP - 1836

    EP - 1849

    JO - Journal of the Association for Information Science and Technology

    JF - Journal of the Association for Information Science and Technology

    SN - 2330-1635

    IS - 8

    ER -