Crowdfunding or Bank Financing: Effects of Market Uncertainty and Word-of-Mouth Communication

Xu, Fasheng; Guo, Xiaomeng; Xiao, Guang; Zhang, Fuqiang

doi:10.2139/ssrn.3209835

Cited by 21 publications

(19 citation statements)

References 52 publications

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“…WOM intensity captures how actively people are talking about a product (Xu et al, 2018) by accounting for how often people talk about the brand and the level of detail that they put into their stories. This is relevant, as research has shown that greater WOM intensity leads to positive outcomes in terms of profit (Zhang et al, 2018).…”

Section: Destination Imagementioning

confidence: 99%

Exploring the antecedents and outcomes of destination brand love

Amaro

Barroco

Antunes

2020

JPBM

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Purpose This study aims to apply the concept of brand love to a destination and investigate its antecedents and consequences. It also explores the moderating effects of time elapsed since the establishment of the destination brand love relationship on the outcomes of destination brand love. Design/methodology/approach A total of 5,511 valid responses were obtained from an online survey distributed among former international students from the Erasmus program of the European Union. Partial least squares structural equation modeling was conducted to assess the hypotheses. Findings Destination brand love was found to have a significant impact on electronic word of mouth (eWOM), WOM, WOM intensity, recommendation and revisit intention. Moderation analysis revealed that the amount of time elapsed since the establishment of the destination brand love relationship did not affect these outcomes. Moreover, destination image and the Erasmus experience had a positive effect on destination brand love. Practical implications Destination marketers should focus on enhancing the Erasmus experience and on improving destination image perception, as these factors help develop destination brand love. Marketers should also be aware that this relationship has long-lasting effects. Originality/value This study adds to the sparse literature on brand love in relation to a destination. This gives the first results for the importance of Erasmus students to the promotion of a host country. It also contributes to the question of how long the brand love relationship can last.

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Section: Destination Imagementioning

confidence: 99%

Exploring the antecedents and outcomes of destination brand love

Amaro

Barroco

Antunes

2020

JPBM

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“…In the banking system, verbal communication is very effective in creating awareness in the market of financial products, and indirectly influencing or facilitating the purchase decisions of customers in order to increase the customer base (Xu, Guo, Xiao, & Zhang, 2018). This fact is supported by a theory of communication, known as the Attention-Interest-Desire-Action (AIDA) model, proposed by Lewis in 1989.…”

Section: Word Of Mouth (Wom)mentioning

confidence: 99%

Customer Purchase Intentions toward Islamic Banking Products in Pakistan: A Study of Religiosity-Based Marketing

Ahmed

Zulfiqar

Haq

et al. 2020

Asian Economic and Financial Review

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This study evaluates the contribution of religiosity-based marketing to persuade customers to purchase Islamic banking products through credibility, word of mouth and building customer relationships. An adapted survey questionnaire was used to collect the data from 440 respondents through convenience sampling from Gujranwala Division, Pakistan. Structural relations were assessed by employing the PLS-SEM (partial least squares structural equation modeling) technique, and the results revealed the existence of a positive and significant relationship between religiosity-based marketing and the purchase intentions of customers. However, credibility does not contribute to purchase intentions, possibly because the credibility of commercial banks is yet to be established in Pakistan. Religiosity-based marketing has been tested for the first time to evaluate its effectiveness in influencing the purchase behavior of Pakistani customers of Islamic banking products. Furthermore, the attempt to validate the conceptual model by using responses from a Muslim country shows its potential to be replicated in other Muslim countries.Contribution/Originality: This study contributes to existing literature by assessing the role of religiositybased marketing in turning the purchase intentions of consumers toward Islamic financial products. Marketing strategies designed in line with these recommendations will help banks to maintain and improve their customer base through credible offerings, generating positive word of mouth and strengthening relationships with customers.

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“…Wessel et al [11] assess the effects of nongenuine social information on consumers' decisionmaking in the context of reward-based crowdfunding. Xu et al [12] investigate a firm's optimal funding choice when launching an innovative product to the market with both market uncertainty and word-of-mouth (WoM) communication. Our paper yields new insights into how crowdfunding review system improves consumers' beliefs about the quality of crowdfunding product and presents the optimal dynamic pricing policy for creators.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Another stream of research has modeled product reviews as free advertising and analyzed how sellers should adjust their own marketing mix strategies in the presence of the reviews [22][23][24]. Fasheng Xu et al [12] explore the interaction between social learning and network externalities. We focus on the dynamic pricing decision on reward-based crowdfunding in presence of review system and take the crowdfunding time into consider.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing Decisions on Reward-Based Crowdfunding with Bayesian Review System Facing Strategic Consumers

Chen

Zhang

Liu

2019

Discrete Dynamics in Nature and Society

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Crowdfunding marks a popular and sustainable means by which small and microentrepreneurs obtain financial resources for their innovative project. Consumers increasingly rely on online reviews to make purchase decisions. However, the crowdfunding nowadays lacks a form type of review system. This paper is designed to extend research on the optimal pricing decision with review system for the reward-based crowdfunding. Firstly, a Bayesian analysis is established to construct consumers’ belief update process in presence of review system. Secondly, we take the strategies without the review system as a benchmark to explore the impacts of review system under preannounced pricing and responsive pricing. Finally, through the equilibrium analysis, we find that the review system has a positive impact on the creator under responsive pricing policy. The fraction of favorable review has a large effect on the profit of preannounced pricing. When the fraction is about 80%, the profit is the maximum. Generally speaking, the review system will make more profit for the creator.

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Crowdfunding or Bank Financing: Effects of Market Uncertainty and Word-of-Mouth Communication

Cited by 21 publications

References 52 publications

Exploring the antecedents and outcomes of destination brand love

Exploring the antecedents and outcomes of destination brand love

Customer Purchase Intentions toward Islamic Banking Products in Pakistan: A Study of Religiosity-Based Marketing

Pricing Decisions on Reward-Based Crowdfunding with Bayesian Review System Facing Strategic Consumers

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