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Literacy represents one’s ability to process and produce materials related to a domain. One type of this higher-order, global individual difference variable is consumer financial literacy. It stems from one’s financial information processing capacity, prior financial knowledge, and proficiency in optimizing financial decisions and managing financial resources. The paper aims to discuss these issues.

The research matching perspective theoretically explains findings related to literacy, including those in this special issue. Optimal processing arises as available and required processing resources correspond. Thus, cognitive comprehension and behavioral application/decision-making outcomes following financial marketing communication exposure are optimized when consumer financial literacy matches the level needed for successful processing. Insufficient or excess available resources harm outcomes.

The resource-matching perspective clarifies consumers’ increasing financial difficulties. Consumers limit personal finance efforts because required resources overwhelm limited financial literacy. However, education or experience can expand consumer financial literacy. Alternatively, financial service marketers may accommodate low consumer financial literacy by simplifying financial information presentation. Consumers reward firms that show sensitivity to their domain-specific literacy limitations with stronger loyalty.

Construct definition is vital to advance research. Yet, financial literacy has no generally accepted definition. This paper’s definitions should aid understanding of the psychological underpinnings of financial literacy’s components.

Much has been written about consumers’ inability to manage personal finances. This paper provides a unified, theoretical explanation for consumers increasing financial literacy difficulties and suggests ways that consumers, financial service providers, and public policy makers can overcome these difficulties.

Government policy mandates information disclosure in financial communications to protect consumer welfare. Unfortunately, low readability can hamper information disclosures’ meaningful benefits to financial decision making. Thus, this experiment tests the product evaluation and decision satisfaction of Korean consumers with less or more subjective knowledge and with or without personal finance education.

A between-subjects experiment examined responses of a nationally representative sample of 400 Korean consumers toward a Korean-language credit card advertisement.

Financial knowledge improves financial product evaluation and decision satisfaction. More readable disclosures improved evaluation and satisfaction among less knowledgeable consumers. Less readable disclosures did not. Consumers without financial education exhibited lower evaluations and decision satisfaction regardless of readability. More knowledgeable consumers and those with financial education performed equally well regardless of disclosure readability.

Financial service providers seeking more accurate evaluations and better decision satisfaction among their customers should use easier-to-read disclosures when targeting consumers with less prior financial knowledge.

One-size-fits-all financial communications are unlikely to achieve public policy or consumer well-being goals. Government-mandated information should be complemented by augmenting financial knowledge and providing personal finance training.

Although almost a quarter of the world’s population lives in East Asia, this is the first examination of readability in disclosures written in East Asian characters rather than a Western alphabet. Previous readability research on Asian-originating financial disclosures has been conducted on English-language texts. This study extends knowledge of readability effects to growing East Asian markets.

Two studies investigate how different structural properties of images – symmetry (vertical and horizontal) and image contrast – affect social media marketing outcomes of consumer liking and engagement.

In Study 1’s experiment, 361 participants responded to social media marketing images that varied in vertical or horizontal symmetry and level of image contrast. Study 2 analyzes field data on 610 Instagram posts.

Study 1 demonstrates that vertical or horizontal symmetry and high image contrast increase consumer liking of social media marketing images, and that processing fluency and aesthetic response mediate these relationships. Study 2 reveals that symmetry and high image contrast improve consumer engagement on social media (number of “likes” and comments).

These studies extend theory regarding processing fluency’s and aesthetic response’s roles in consumer outcomes within social media marketing. Image posts’ structural properties affect processing fluency and aesthetic response without altering brand information or advertising content.

Because consumer liking of marketing communications (e.g. social media posts) predicts persuasion and sales, results should help marketers design more effective posts and achieve brand-building and behavioral objectives. Based on the results, marketers are urged to consider the processing fluency and aesthetic response associated with any image developed for social media marketing.

Addressing the lack of empirical investigations in the existing literature, the reported studies demonstrate that effects of symmetry and image contrast in generating liking are driven by processing fluency and aesthetic response. Additionally, these studies establish novel effects of images’ structural properties on consumer engagement with brand-based social media marketing communications.

Rhetorical works (schemes and tropes) can increase advertisement liking. Because liking impacts advertising effectiveness, this study aims to investigate if positive processing, brand awareness, and persuasion outcomes previously associated with rhetoric are spurious and chiefly attributable to liking.

An experiment (n=448) employed natural advertising exposure conditions and a 3 (headline: nonfigurative, scheme, trope)×2 (copy length: long, moderate)×2 (involvement: high, low) between‐subjects factorial design.

Absent of liking differences, schemes and tropes are robust motivators of available resources devoted to processing (elaboration and readership). Favourable arguments only influence brand awareness and persuasion if processed. Consumers negatively view longer copy. Nonfigurative headlines encourage insufficient processing as copy lengthens. Insufficient processing decreases brand awareness and persuasion. However, schemes and tropes overcome negative copy length effects on brand awareness and persuasion regardless of involvement.

Without the benefit of increased liking, schemes interfere with copy point and brand memory similar to other creative attention‐getters – humour and sex appeals. Instead, schemes focus consumers on advertising style. The results are based on consumer responses; thus, error may make differences harder to detect. Another limitation is the focus on a single low‐risk, informational product, i.e. pens. Future research should investigate effects of rhetorical works with high‐risk and transformative products.

Advertisers should use rhetorical works to motivate processing, especially with longer copy explaining advantages of new, technical, or complex products. Also, effective rhetorical works need not create positive affect.

Isolating advertising rhetoric effects from liking differences explains anomalies in the literature (e.g. scheme versus trope superiority).

The purpose of this paper is to explore ethical issues related to pharmaceutical marketers’ social media efforts including the prevalence and forms of direct-to-consumer web 2.0 advertising (eDTCA) and corporate social responsibility (CSR) messages across social networking sites (SNSs). One goal is to determine if these eDTCA posts comply with draft guidelines issued by the Food and Drug Administration (FDA).

Content analysis of ten pharmaceutical marketers’ SNS posts documented the frequency and types of posts devoted to eDTCA, drug risks and benefits, CSR, and other purposes.

eDTCA represents about 35 percent of all pharmaceutical firm SNS posts and primarily communicates help-seeking messages via Facebook, Twitter, and YouTube. Firms also promote their ethical image through CSR-related posts. These posts primarily highlight employee-focussed and community-focussed initiatives. Analysis of consumer behavior in response to each post shows that eDTCA affects only liking of YouTube videos, but CSR increases behavior responses on all SNSs except LinkedIn.

Despite absence of final guidance, pharmaceutical marketers seem to abide by FDA draft social media guidance. In line with the FDA’s draft fair-balance regulations, almost all product-claim eDTCA posts state both benefit and risk information. Nevertheless, the FDA should issue final eDTCA guidance without delay consistent with traditional media direct-to-consumer advertising guidance. This should benefit consumers through consistency with their existing advertising literacy competencies.

The study represents an initial attempt to document ethical issues in the current state-of-the-practice of pharmaceutical social media marketing related to eDTCA and CSR.

The purpose of this paper is to investigate masculinity in Chinese social media marketing for global luxury fashion brands through two studies.

Study 1 compares physical characteristics of males in visually oriented US (Instagram) and Chinese (Weibo) social media posts promoting global luxury fashion magazine brands (e.g. Vogue, Cosmopolitan, GQ and Esquire). Study 2 examines the prevalence of and Chinese consumers’ responses (reposts, comments and likes) to different masculinities depicted in luxury fashion brand-sponsored Weibo posts.

Male portrayals for Chinese audiences feature more characteristics associated with emerging East Asian hybrid masculinities – “Little Fresh Meat” (LFM) and “Old Grilled Meat” (OGM) – than associated with global or regional hegemonic masculinity (i.e. the scholarly Wén and action-oriented Wu). Wén remains common in social media posts for luxury fashion goods, but LFM and OGM engender more consumer responses.

Chinese luxury fashion marketing depicts masculinity more similarly to other East Asian marketing than to Western marketing. Some luxury fashion brands are struggling for acceptance among Chinese youth. Luxury fashion marketers should incorporate hybrid rather than hegemonic masculinities to prompt more favorable responses among Chinese consumers, especially younger female target markets.

Growing female occupational and consumer power and shifting male employment from blue-collar to white-collar jobs have influenced media portrayals of masculinity. Social media marketing for luxury fashion brands demonstrates the prevalence and appeal of hybrid masculinities in China.

The purpose of this article is to develop a theoretical explanation – financial numeracy – for consumer proficiency with financial services. With sufficient financial numeracy, consumers benefit fully from financial services and make competent choices in regard to financial management.

The article builds theory by combining consumer cognitive capacity and customer knowledge theories with findings from prior studies of consumer difficulties with financial services to introduce a comprehensive model of the antecedents and consequences of financial numeracy with testable propositions for many psychographic and cultural influences and moderators.

Financial numeracy demands that consumers possess sufficient financial information processing capacity and ability as well as sufficient prior knowledge of financial concepts. Although partly a function of individual cognitive ability, it can be enhanced through appropriate experience with financial instruments and familiarity through personal financial materials when consumers are motivated to process them. Financial numeracy directly affects financial management outcomes related to borrowing, saving, and taxes. It indirectly affects higher‐order financial consequences, such as a consumer's credit score, interest rates charged on subsequent loans, net worth, likelihood of bankruptcy, and size of inheritance.

Consumers around the world are increasingly experiencing difficulties with financial services. To advance research in financial services marketing beyond documenting troublesome financial behaviours of consumers, this conceptual model provides insights to help increase consumer proficiency in comprehending and managing financial services based on knowledge about consumer information processing, learning, memory and the cultural and psychographic influences on these internal processes.

This study aims to examine how product involvement moderates the effects of emotional appeals namely humor and endorsers on consumers' responses to direct‐to‐consumer advertising (DTCA).

This study employed a 2 (Humor: humor vs. non‐humor)×2 (Endorser: celebrity vs expert)×2 (Involvement: high vs low) factorial experimental design. Subjects were 420 allergy/asthma sufferers or non‐sufferers attending a large Southwestern US university as undergraduate and graduate students.

Results confirm that low involvement consumers demonstrate more positive responses than high involvement consumers toward prescription drug ads with emotional appeals. Humor or a celebrity endorser enhances ad and brand attitudes, brand recall, and copy point recall of consumers without medical conditions. However, an expert endorser is found to be more effective in improving ad credibility. A three‐way interaction between humor, endorser, and involvement was evident indicating that the celebrity endorser and humor jointly generated more positive responses than other combinations of treatment group when product involvement was low. These findings clearly suggest that use of emotional appeals in DTCA does not influence attitudes and memory of target audience who are suffering from a condition.

This is the first empirical study that examines the effects of emotional appeals namely humor and endorsers on consumers' responses to DTCA.

Finance theory proposes that consumers require information about the risk‐return trade‐off credibility information to relieve principal‐agent conflict concerns, and transaction cost information – for investment decisions. This paper aims to investigate whether or not such information is present in advertisements for one investment vehicle – mutual funds.

All advertisements in Barron's and Money over two years were content‐analysed to determine the degree to which mutual fund advertising practice adheres to theories regarding information necessary for optimal investment decisions. Use of techniques known to influence advertisement noting (i.e. advertisement size and colour) and copy readership (i.e. visual size, text length, unique selling proposition/brand‐differentiating message, celebrity endorsements, direct or indirect comparisons with competitors, and emotional appeals) was also investigated. Finally, because mutual funds are a financial service, the presence of convenience information (e.g. investment minima, access to agents or account information, and liquidity) was studied.

Mutual fund advertisements are not providing the information necessary for optimal investment decisions. Mutual funds use techniques known to increase the likelihood that their advertisements are noticed, but they also use techniques known to decrease the readership of their advertisements. Also, they rarely included convenience information.

Mutual fund advertisements attempt the activation of the advertised brand‐quality and the long copy‐quality heuristic. However, future research must determine whether or not consumers are applying these two heuristics on seeing mutual fund advertisements.

Mutual fund advertising is not serving consumers. Regulators should require all mutual fund advertisements to include an easy‐to‐read table summarizing necessary investment information to assist consumer decision making.