Does a Picture Paint a Thousand Words? Evidence from a Microcredit Marketing Experiment

Does a Picture Paint a Thousand Words? Evidence from a Microcredit Marketing Experiment

Female entrepreneurship is low in many developing economies partly because of constraints on women's time and mobility, which are often reinforced by social norms. This paper analyzes a marketing experiment designed to encourage women to adopt...

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Bibliographic Details
Main Authors:	Giné, Xavier, Mansuri, Ghazala, Picón, Mario
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO CAPITAL ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNT ACCOUNTING ADMINISTRATIVE RECORDS ADVERTISING AGRICULTURAL FINANCE AGRICULTURAL SECTOR AMOUNT OF LOAN APPLICATION PROCESS ATTITUDES TOWARDS WOMEN AUTONOMY BAD CREDIT BANK OFFICE BANKING SECTOR BANKS BORROWER BORROWING BRIBES BUSINESS ACTIVITY BUSINESS EXPERIENCE BUSINESS NETWORKS BUSINESS OWNER BUSINESS OWNERS BUSINESS OWNERSHIP BUSINESS TRAINING BUSINESS WOMAN BUSINESSWOMEN CAPITALS COMMERCIAL BANK COMMERCIAL BANKS CONSUMER DURABLES CONSUMPTION EXPENDITURES CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT HISTORY CREDIT INFORMATION CREDIT OFFICERS CREDIT PRODUCT CREDIT PRODUCTS CREDIT SOURCE CULTURAL NORMS CURRENCY DEMAND FOR CREDIT DEVELOPING COUNTRIES DEVELOPMENT FINANCE DISADVANTAGED WOMEN DISBURSEMENT DUMMY VARIABLES ECONOMETRICS ELIGIBLE BORROWERS EMPOWERMENT ENTERPRISE DEVELOPMENT ENTREPRENEURS EQUIPMENT EXCLUSION EXPENDITURES FACE VALUE FEMALE BUSINESS FEMALE BUSINESSES FEMALE CLIENTS FEMALE ENTREPRENEUR FEMALE ENTREPRENEURS FEMALE ENTREPRENEURSHIP FINANCIAL ACCESS FINANCIAL PRODUCT FINANCIAL SECTOR REFORMS FINANCIAL SYSTEM FORMAL FINANCIAL INSTITUTION GENDER GENDER DEVELOPMENT GROUP OF WOMEN GROUP SAVINGS GUARANTORS HANDICRAFT HANDICRAFTS HOLDING HOUSEHOLD BUSINESSES HOUSEHOLD INCOME HOUSEHOLDS HOUSING HUMAN DEVELOPMENT HUSBANDS IMAGE IMPACT EVALUATION INFORMAL LENDERS INSTALLMENT INSTALLMENTS INSURANCE INTEREST RATES INTERNATIONAL BANK INVENTORIES JOINT LIABILITY LACK OF COLLATERAL LACK OF CREDIT LENDER LENDERS LIMITED ACCESS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICANTS LOAN APPLICATION LOAN APPLICATION PROCEDURES LOAN APPLICATIONS LOAN DEMAND LOAN FUNDS LOAN PRICE LOAN PROCEEDS LOAN PRODUCT LOAN REPAYMENT LOAN REQUEST LOAN SIZE LOAN SIZES LOAN TERMS MARKETING MARKETING TECHNIQUES MATURITY MATURITY PERIOD MFI MICRO-ENTREPRENEURSHIP MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MONEYLENDERS OUTREACH OUTSTANDING DEBT OUTSTANDING LOAN PEER PRESSURE PREJUDICE PRIVATE BANKS PRIVATIZATION PROFITABILITY PUBLIC SECTOR BANKS PURCHASING RECEIPT REGULATORY FRAMEWORK REMITTANCE REMITTANCE SERVICES REPAYMENT REPAYMENT CAPACITY REPAYMENT SCHEDULE RETAIL BUSINESSES RETURN RETURNS RURAL CREDIT SALES SAVINGS SELLING SMALL BUSINESSES SMALL ENTERPRISES SMALL LOAN SOURCES OF CREDIT SOURCES OF INCOME STATE BANK STATE BANK OF PAKISTAN TRANSPARENCY VILLAGE VILLAGES WOMAN WOMEN BUSINESS OWNERS WOMEN ENTREPRENEURS WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2012/04/16197256/picture-paint-thousand-words-evidence-microcredit-marketing-experiment http://hdl.handle.net/10986/6023

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Summary:	Female entrepreneurship is low in many developing economies partly because of constraints on women's time and mobility, which are often reinforced by social norms. This paper analyzes a marketing experiment designed to encourage women to adopt a new microcredit product. A brochure with the same content but two different covers was randomly distributed among male and female borrowing groups. One cover featured five businesses run by men, while the other showed identical businesses run by women. Men and women responded to psychological cues. Among men who were not business owners, had lower measured ability and whose wives were less educated, the responses to the female brochure were more negative, as did female business owners with low autonomy within the household. Women with relatively high levels of autonomy had a similar negative response to the male brochure, while there was no effect on female business owners with autonomy. Overall, these results suggest that women's response to psychological cues, such as positive role models, may be affected by their level of autonomy at home, and more intensive interventions may be required for more disadvantaged women.