Know Where to Invest: Platform Risk Evaluation in Online Lending

Practice- and policy-oriented abstract for “Research Spotlights” Although enjoying rapid development, online lending also endures some unusual risk, that is, platform risk. We address a new problem at the macro platform level, platform risk evaluation, and explore types of information and methods that are effective in predicting platform risk. We identify four types of information, that is, platform characteristic, risk management, commercial competition, and online word of mouth, and examine their utilities, separately and jointly, in predicting platform risk. We also propose the use of survival analysis, especially the mixture survival model, in predicting whether and when a platform will default. We carry out a cross-stage analysis using data crawled from two leading web portals for online lending in China with the two stages separated by the recent dramatic policy intervention. The results reveal the differences among the four identified factors in terms of predictive utility, the heterogeneity between the two types of default platforms, and differences between the start-up and stable periods of platform development. Based on the results, we derive some insights and examine the cross-stage changes and commonalities. We provide both lessons learned from the past and practical implications for market managers and lenders in the current online lending market.

Online Word-of-Mouth Communication in a Collectivist Society

<p>Word-of-mouth (WOM) is perceived by consumers as a highly credible source of information, and online channels for WOM have become increasingly popular among consumers. Although the impact of online word-of-mouth (OWOM) on consumers‘ purchase decisions has been researched, it remains unclear why information about products, brands or organisations is generated online and what influences its initiation from the sender‘s perspective. This research explores the antecedents of customer OWOM and examines the relationships between key antecedent variables and customer OWOM engagement in a Chinese context. A conceptual model was developed based on the literature and information obtained through one-to-one in-depth interviews. Customer perceived value, satisfaction, loyalty and affective commitment were incorporated as key antecedent constructs of customer OWOM. The research used a two-phase research design. The first phase was a qualitative exploration of the customer‘s OWOM experience. These findings were used to gain an understanding of customers‘ OWOM initiation, provide confirmation of the model, and refine the measurement thereof. The second phase used a quantitative online survey to validate the measurement instruments and test the model. The data for the study were collected from OWOM initiators in China over a period of one and a half months. A sample of 574 respondents was obtained. Hypotheses were tested using structural equation modelling and multiple regression analysis. Findings from the research suggest that an emphasis on creating an affective bond with the brand and organisation is the key to customers‘ engagement of WOM on the Internet. The study also indicates that customer perceived QEP (quality, emotional and price) value is a less immediate but critical antecedent. In addition, the customer perceived social value of a product or service is found to significantly impact OWOM. In China, where the collectivist view predominates, customers conform to social standards and withhold negative comments in their OWOM activities in order to maintain social acceptance and inclusion, and to make favourable impressions. They also engage in OWOM to gain and enhance face, which is a social need in China‘s status driven society. This research contributes to a growing body of research on customers‘ OWOM behaviour by developing and empirically testing the customer OWOM model. It provides a more holistic view of post-purchase OWOM by simultaneously investigating a set of key antecedents for OWOM in a single framework. The research also widens the geographic and culture scope of OWOM research by undertaking the study in China. By using a mixed method, incorporating both qualitative and quantitative approaches, the research offers a balance among objectivity, detailed description and the predictability of the study. Furthermore, the research provides marketing practitioners with a better understanding of the behaviour of Chinese OWOM initiators, and offers directions to improve their marketing communication strategies.</p>

Online Word-of-Mouth Communication in a Collectivist Society

<p>Word-of-mouth (WOM) is perceived by consumers as a highly credible source of information, and online channels for WOM have become increasingly popular among consumers. Although the impact of online word-of-mouth (OWOM) on consumers‘ purchase decisions has been researched, it remains unclear why information about products, brands or organisations is generated online and what influences its initiation from the sender‘s perspective. This research explores the antecedents of customer OWOM and examines the relationships between key antecedent variables and customer OWOM engagement in a Chinese context. A conceptual model was developed based on the literature and information obtained through one-to-one in-depth interviews. Customer perceived value, satisfaction, loyalty and affective commitment were incorporated as key antecedent constructs of customer OWOM. The research used a two-phase research design. The first phase was a qualitative exploration of the customer‘s OWOM experience. These findings were used to gain an understanding of customers‘ OWOM initiation, provide confirmation of the model, and refine the measurement thereof. The second phase used a quantitative online survey to validate the measurement instruments and test the model. The data for the study were collected from OWOM initiators in China over a period of one and a half months. A sample of 574 respondents was obtained. Hypotheses were tested using structural equation modelling and multiple regression analysis. Findings from the research suggest that an emphasis on creating an affective bond with the brand and organisation is the key to customers‘ engagement of WOM on the Internet. The study also indicates that customer perceived QEP (quality, emotional and price) value is a less immediate but critical antecedent. In addition, the customer perceived social value of a product or service is found to significantly impact OWOM. In China, where the collectivist view predominates, customers conform to social standards and withhold negative comments in their OWOM activities in order to maintain social acceptance and inclusion, and to make favourable impressions. They also engage in OWOM to gain and enhance face, which is a social need in China‘s status driven society. This research contributes to a growing body of research on customers‘ OWOM behaviour by developing and empirically testing the customer OWOM model. It provides a more holistic view of post-purchase OWOM by simultaneously investigating a set of key antecedents for OWOM in a single framework. The research also widens the geographic and culture scope of OWOM research by undertaking the study in China. By using a mixed method, incorporating both qualitative and quantitative approaches, the research offers a balance among objectivity, detailed description and the predictability of the study. Furthermore, the research provides marketing practitioners with a better understanding of the behaviour of Chinese OWOM initiators, and offers directions to improve their marketing communication strategies.</p>

Sense of online betrayal, brand hate, and outrage customers’ anti-brand activism

The current study develops a research model and explores the correlation between customer sense of online betrayal, brand hate, and anti-brand activism. The outrage customers’ anti-brand behaviors consist of negative online word of mouth, online public complaining, and online boycott. Data from an online survey of 383 online shoppers were used to test seven proposed hypotheses. The partial least square–structural equation modeling (PLS-SEM) was adopted to assess the measurement and structural model. The findings showed that the sense of online betrayal positively and significantly affects brand hate and anti-brand behaviors. In addition, brand hate is also the leading cause of customers’ anti-brand actions. The present study highlights the mediation role of brand hate in eliciting revenge from consumers subjected to online betrayal. This study also gives some recommendations to customers to stop the misconduct behaviors of online betrayals, such as spreading their betrayal cases to friends and relatives via social media, then asking for supports and help from governmental and legal agencies and participating in boycotts; raising boycott movements against the betraying brand should be considered as the most extreme punishment.

Research on the Impact of Internet Word-of-Mouth on Film Consumption ingness of College Students

In the context of the information age, consumers obtain information on products or services through online channels. Internet word-of-mouth has quickly become an emerging hotspot in the field of marketing, and its role in the film industry has become more prominent than before. Based on the relevant research of scholars, this paper constructs a research model to study the influence of film online word-of-mouth on college students’ consumption intention. Empirical research verified that source credibility, disseminator’s professional knowledge, word-of-mouth quality, word-of-mouth quantity, word-of-mouth potency, perceived credibility, network involvement, and receiver’s professional knowledge are positively correlated with college students’ film consumption intention. Based on the results, this study proposes a series of suggestions, such as improving the content quality of online word-of-mouth and the popularity of movies on the Internet to help movie companies effectively use online word-of-mouth to implement marketing.

The Influence of Reputation on Consumer Purchasing Behavior

This study created a new model to explore the impact of social network word of mouth on the credibility of the website platform factors. This model contains three assumptions, including website trust, consumer repurchase, and timely response from website customer service. This structure has been discussed a lot in e-commerce literature. This hypothesis is explored through empirical research testing. The data of this study is a questionnaire survey of consumers on a platform of a case company. The data is collected from 100 consumers in 2014.The results show that the word-of-mouth information and online immediacy have a relevant influence and help on consumers' re-purchase behavior. At the same time, the results show that there is a good interaction between online word-of-mouth and online immediacy. The results of this study provide useful insights into how to enhance consumers' perception of online word-of-mouth messages and online immediacy in order to enhance the behavioral impact on consumers' repurchase intentions.

The Influence of Reviewer and Consumer Congruence in Online Word-of-Mouth Transactions

Online review platforms compete to attract and retain consumers and facilitate purchases. They invest in sophisticated algorithms that prioritize the order in which product reviews are presented, seeking to provide consumers with easy access to useful information about the ability of a product to meet a need. These algorithms collect and use review and consumer characteristics to provide different consumers with different sets of reviews, seeking to increase purchase intention and reduce returns. This study proposes a new type of factor: the congruence between the consumer and the reviewer. The authors develop a simulation-based experiment in which 281 subjects are categorized based on their travel style and socioeconomic status, then read two reviews: one that appears to be written by someone similar to them and one that appears written by someone different from them. Findings demonstrate relationships between purchase intention and both of the congruence variables, as well as disposition to trust and an interaction between uncertainty avoidance and socioeconomic status.

Effects of Social Responsibility and Corporate Image on Online Word of Mouth in Cultural and Creative MICE industry

The emergence of global cultural and creative industry in past years has the exhibition appear diverse function and complicated styles. It would test the decision making of curators or curating teams extending the influence of exhibition and creating new value with smart curating, loan, or renewal. In this case, it becomes a primary issue for curators or curating teams mastering points in the planning and conducting, deepening experience, and matching audience’s needs to advance MICE events and drive innovative economic development. Aiming at consumers of cultural and creative MICE industry in Kaohsiung City, as the research objects, total 400 copies of questionnaire are distributed, and 284 valid copies are retrieved, with the retrieval rate 71%. The concept of corporate social responsibility is gradually emphasized in past years. Under the environmental trend, owners in the world realize the importance of corporate social responsibility and the irresistibility of the trend. The participation in corporate social responsibility of cultural and creative MICE industry indeed could enhance consumers’ image of cultural and creative MICE industry. According to the result to propose suggestions, it is expected to help domestic cultural and creative MICE industry build good corporate image through social responsibility to effectively master online word of mouth.