The Influential Factor of Financial Products in Social Network Environment

Abstract

The ever-progressing development of social network and Internet finance has changed consumers’ perception and purchase decision of online financial products. Compared with traditional financial products, the online ones, originated from social networks with huge flow, present a wealth of information including both product and platform information, such as product recommendation, comments and purchase record. Consumers exchange useful information through social networks and changed their perceptions of financial products, thus affecting their choice and purchase. In this process, social capital plays an important role. Based on social capital theory, this paper explored the influence of social capital from different dimensions on users’ perceived benefit and perceived risk, thus affecting their decision. This paper collected data from 263 sample members who purchased financial products on WeChat, and adopted structural equation model to verify relevant hypothesis. The results reveal that perceived risk and perceived benefit in social network environment both have significant impacts on consumers’ purchase intention of financial products. The structural dimension of social capital has negative impacts on perceived benefit and slight impacts on perceived risk. The cognitive dimension of social capital has positive effects on perceived benefit and perceived risk. The relational dimension of social capital bears significant positive impacts on perceived benefit and significant negative impacts on perceived risk. The results of this paper provide favorable theoretical basis and practical value for the understanding of consumers’ willingness to purchase financial products in social network environment.