Different Principles of Information Design for Three Online Financial Tasks: Localization, Comparison, and Subtraction

Abstract

This study examines design principles for how to display financial information about a consumer loan that supports locating a value (e.g., What is the annual percentage rate (APR) for an 18-month loan?), comparing two values (e.g., Is the APR for a 24-month load greater than for an 18-month loan?), or subtracting two values (e.g., What is the difference in the APR for a 24-month load and an 18-month loan?). One hundred and thirty-three college students carried out these three types of tasks at a banking site that displayed information as a list (e.g., listing the value for interest rate, monthly payment, insurance cost, APR, amount financed, and total cost for a given duration ranging from 6 to 48 months) or as one of three types of tables or matrices (containing values for each of six variables across one axis and each of eight loan durations across the other). Accuracy and response time on each of the three types of tasks was tallied for each of the four groups. Consistent with the principle of distraction minimization, the list was the best display for locating a value. Consistent with the principle of conjoint alignment, a vertical matrix (with loan duration across columns) or horizontal matrix (with loan duration across rows) was the best for comparing two values, but an interactive matrix was less effective. Consistent with the principle of canonical form, a vertical matrix (with loan duration across columns) was the best for subtracting two values. Overall, the best information display depended on the type of task, consistent with cognitive theories of information processing.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

https://data.mendeley.com/v1/datasets/6ff4s4wzr7/draft?a=93978ac1-acbf-4590-b7d3-0cb9c5e6811f.

Additional information

Notes on contributors

Héctor R. Ponce

Héctor R. Ponce is Professor of Information Systems at the University of Santiago of Chile, Department of Accounting and Auditing. He has conducted research on how computer-supported learning strategies affect cognitive processing during learning using an eye-tracking methodology and how innovative interfaces affect test response time and response accuracy.

Richard E. Mayer

Richard E. Mayer is Distinguished Professor of Psychological and Brain Sciences at the University of California, Santa Barbara. His research focuses on applying the science of learning to education, which involves the intersection of cognition, instruction, and technology with a special focus on multimedia learning and learning with new media.

Sandra F. Torres

Sandra F. Torres is Doctoral Student in Management Science at the Faculty of Management and Economics, University of Santiago of Chile. Her research interest is on the effects of mental accounting on financial decision–making. She is also a research assistant at the Center for Experimental Social Sciences (CESS) at the University of Santiago of Chile.