Articles With Just Good Information

Persuasion not Information Triggers PPI Sales, Says British Insurance

Braintree, Essex (PRWEB) June 21, 2008 -- Greater commission and claims ratio disclosure within the Payment Protection Insurance (http://www.britishinsurance.com) sector will have little impact on consumers' decision-making, says independent provider Simon Burgess from British Insurance.

He believes PPI (http://www.britishinsurance.com) purchasers are influenced by the personality and persuasive skills of the seller and that compulsory disclosure of information, as recommended by the Competition Commission, is not an effective remedy - a view borne out by research recently undertaken by the London School of Economics.

In its report 'Information v Persuasion, Experimental Evidence on Salesmanship, Mandatory Disclosure and Purchase of Income and Loan PPI'*, the LSE investigated the extent to which insurance sellers influence buyers and whether mandatory information disclosure would affect the sale.

Twenty-five people with commission-based sales experience targeted 214 consumers who were seeking or who had recently obtained unsecured loans up to £5,750. Each 'seller' had a neutral script and could make a two minute sales pitch. Their pay was based on performance.

Results reveal that although consumers were keen to find out about sellers' incentives and the payout ratio of the policy, this information made no difference to the choice they made, and that in many cases, it reduced, rather than boosted confidence in their decision making.

The LSE found that respondents' willingness to pay for insurance was based upon the seller and their powers of persuasion, rather than the information placed before them. "This doesn't surprise me, "says Burgess. "We all know extroverts make more sales, whatever sector they're in, so the Commission should be tackling the pressure that's being exerted on vulnerable consumers, rather than recommending they wade through more information. "I agree consumers need more information to be able to shop around, but what use will it be when faced with a tenacious salesperson who convinces the consumer to keep the sale in-house?"

Earlier this month, the Commission published its remedial measures report, detailing initiatives to tackle PPI mis-selling. These include; consideration to ban the sale of PPI at the time of the loan application, introduction of price caps and more information for consumers to enable them to shop around.

Burgess continues: "This research clearly shows that once consumers are in front of persuasive salespeople, they will end up buying the product whether they have more information or not. Even the FSA in its PPI Survey last year said 'respondents showed virtually no engagement with the product - they relied on whatever they were told by the sales adviser'."

He concludes: "The CC must focus on the distribution structure of this sector and outlaw lenders making PPI (http://www.britishinsurance.com) sales. It's widely-known that staff at NatWest and Royal Bank of Scotland earn three times the number of bonus points if they sell a loan with PPI than on its own and these practices must be stopped. Consumers will not be protected by the currently-proposed policy reforms."

*Research conducted in September 2007 in five venues across the UK and report written in November 2007.

###

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Pcapex Com Pc Hardware Reviews News Amp Mods Article
Adwords Ppc Tool Adsense Affiliate Ppc Downloads First of all, provide friendly and personal information about your offer through great web contents. You can write some tips or techniques that will make their job much easier. Secondly, communicate with your customers & potential consumers through monthly ezines or newsletters. You can do this by using auto-responder. Tailored products or services may not have been a very wide option in traditional shopping which shows that interactive shopping has moved a step closer to the needs of the consumer and has improved the shopping experience in general. Internet marketing is here to stay and setting up your storefront online is surely going to bring profits for your business.

This Week on TelecomWeb's 'The Next Generation Contact Center Report': News Briefs and Feature Articles
TelecomWeb's "The Next Generation Contact Center Report" (www.telecomweb.com/ccr) features free weekly news briefs and articles geared toward helping companies migrate effectively to an IP Contact Center environment.

Earth Science News Article
Earth Science News Article

Zillow Article Means Positive News For Investors Buying Memphis, Tennessee Real Estate
An article produced by Zillow recently said 40% of Memphis homes were selling at a loss. Though this data was disputed by some, others say the article could shed some light on the buying opportunity that exists in the city.

New Free Information and Articles on Drug and Alcohol Addiction Presented by AddictionSearch.com
AddictionSearch has released a new site section, featuring a collection of free carefully researched articles on drug and alcohol addiction topics and issues.

A Review of the Top Three MLM News Articles
Multi-level marketing ý commonly known as MLM ý is constantly changing It is adapting to a world on online sales and the Internet, making it easier for direct sellers to get the word out about their products and business

This Week on TelecomWeb's "The Next Generation Contact Center Report": News Briefs and Feature Articles
Free weekly news briefs and articles geared toward helping companies migrate effectively to an IP Contact Center environment.

Skincare-news.com Releases Safe Tanning Article: Skin Care Tips for Sunless-Tanning
Skincare-news.com shows readers how to achieve a beautiful glow all winter with the help of a self-tanner, the only safe way to tan.

Skincare-News.com Latest Article Discusses Skincare for Men: Anti-Aging Skin Care Secrets
Skincare-News.com discusses the recent advent of men's skincare lines that continue to grow in popularity, and what men look for in anti-aging treatment options.

Argumentative News Articles
The objective behind an argumentative essay is to induce an audience of a claim, for which you are presenting the rational arguments. Therefore, all through the task of erecting an argument, we must be acutely aware of our audience.

News Article
To write a news article is a gratifying experience for the reason that you share information with a vivacious population. When writing this sort of article, an explicit format is to be pursued. The underlying principle of this article is to express the facts of a happening to an engrossed reader.

Carseek.com Offers Readers Latest Automotive News with Reviews and Articles
Carseek.com, an information-rich automotive website now provides daily news updates in addition to extensive vehicle reviews and a knowledge base of articles on wide-ranging topics. The site has always been a one-stop solution to consumers interested in all aspects of buying and owning an automobile in the 21st century. Now it features daily updates on the state of the industry, as well.

Construction Directory: News and Articles, Not Just Listings
When this writer started looking at construction directories, he found that several of them were resources with industry news and helpful articles. The same directories might also list suppliers in a conventional manner.

Articles, Articles, and More Articles
Article marketing is a tried and reliable part of search engine marketing. They have become a standardized way of establishing authority, building back links, and attracting new visitors. Articles have the possibility of going viral and finding homes on blogs, ezines, or other websites, further increasing your links and exposure.