Current conditions in the U.S. mortgage industry provide a rich context for exploring the positioning information and in the advertising of mortgage products used. This article examines television, radio and print advertising used to promote news prime and subprime products. An analysis of these advertisements shows clear differences in the market for prime and subprime deals. Prime mortgage market ads tended to emphasize the American dream o … Read more »

Current conditions in the U.S. mortgage industry provide a rich context for exploring the positioning information and in the advertising of mortgage products used. This article examines television, radio and print advertising used to promote news prime and subprime products. An analysis of these advertisements shows clear differences in the market for prime and subprime deals. Prime mortgage market ads rather the American dream of home ownership “and low rates, stress and often detailed loan terms. On the other side were the subprime loans Advertising on fear based appeals, emphasizes debt problems and the consumer to the lender / broker for assistance dependent. These important differences in consumer information for various mortgage products industry may have exacerbated information asymmetries and contributed to the current mortgage crisis.
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from
Vanessa G. Perry,
Carol M. Motley
Source: California Management Review
17 pages.
Release Date: 1 November 2009. Prod #: CMR439-PDF-ENG
Where’s the fine print? Advertising and the Mortgage Market Crisis HBR case solution

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