Research On The Demand Diffusion Model Of Internet Financial Product In Social Networks

Under the Internet finance mode,the information processing methods in the financial market have witnissed profound changes.Information dissemination in social networks have had a crucial impact on the financial market.The use of online social media and social networks for brand promotion has drawn attention from internet financial companies.Based on this background,from the perspectives of social network characteristics and user behaviors,this dissertation studies the demand diffusion for Internet financial products in social networks:(1)According to the locical path that information dissemination drives consumer demand,and based on the mechanism of infectious disease transmission,this study introduces a continuous-time Markov process to explore the demand diffusion of Internet financial products caused by information dissemination.The model contains two stages: information dissemination stage and financial behavior stage.It takes into account the user’s information acceptance and information discarding behavior.At the same time,it considers the first purchase,repeat purchase and divestment.The accuracy of the model is verified by simulation,and the dynamic process of demand diffusion and the influencing factors are explored through numerical analysis.Our study shows that under different dissemination lifetime,information dissemination rate can have an impact on the scale of demand diffusion if it changes in the within a certain range,and such range decreases with the increase of the dissemination lifetime.Secondly,the positive influence of the first purchase rate on the proportion of final repurchase users increases with the increase of the diffusion timespan,while the influence of the repeat purchase rate is not sensitive to the time scale.Third,information rejection and divestment behaviors have negative effects on the demand diffusion in different ways.When the information rejection rate is high,extending the dissemination time can still increase the number of repurchase users to some extent,but if the divestment rate is high,extending the propagation time is almost ineffective.The negative impact of redemption is reduced with the increase in the repurchase rate,but the negative impact of information rejection can hardly be halanced by the increase in the repurchase rate.(2)The impact of social network structure on the demand diffusion of internet financial products is studied.According to the user’s social identity,emotional intensity,interests,geographic location,etc.,nodes in social networks are often not evenly distributed,but are divided into several sub-networks,which form heterogeneous topological structures.Different structures often affect local and global propagation in the network.This study measures network structure with clustering coefficient and modularity,and explores the influence mechanism of network structure on purchase demand diffusion.The study shows that increasing the clustering coefficient in the early stage of propagation can more effectively promote demand diffusion,and such impact diminishes marginally as the clustering coefficient increases.In addition,the increase in the first purchase rate strengthens the influence of the community structure,that is,when the first purchase rate is high,reducing the modularity or increasing the clustering coefficient can be more beneficial.Finally,by improving the community structure,the negative effects of information discarding and redemption on demand diffusion can be mitigated,and such mitigation impact is more evident for redemption behavior.(3)Based on the model that considers the community structure,the influence of independent user decision-making and herding effect is further studied.Due to reasons such as bounded rationality and information asymmetry,users may be affected by group behavior when making investment decisions,which forms herd effect.At the same time,the degree of the herd effect is affected by factors such as the level of information disclosure and the influence of information source nodes.In regard with this phenomenon,a model that considers user independent decision-making and herd effect is introduced to explore the influence of different degrees of herd effect on demand diffusion.Numerical analysis shows that when the herd effect reaches a certain threshold,it can have an impact on the final demand diffusion scale,and this threshold is positively correlated with the total propagation time.In addition,in terms of diffusion speed,the increase in the herd effect strengthens the positive effect of the clustering coefficient and the negative effect of modularity,which means that when the herd effect increases due to the decrease of information disclosure,or when dealing with user groups with a higher herding tendency,improving the community structure of the information dissemination network will have a more significant role in promoting the demand diffusion.Finally,in terms of the impact on the scale of demand diffusion,the critical value of the herd effect’s influence is positively correlated with the clustering coefficient,and compared to modularity,the critical value is more sensitive to the clustering coefficient,which indicates that in the case of dynamic herding tendency,encouraging the promotion within the community is more effective.(4)Wealth management behaviors include purchase and redemption.The redemption demand of users is affected by the market environment and product performance.First of all,this study introduces a redemption demand diffusion model that considers the impact of major public emergencies.The influence mechanism of emergencies on redemption demand in the context of social networks is discussed.The results show that when the information dissemination rate increases,the demand for redemption increases faster,and the outbreak time is earlier,but the total number of redemption nodes will eventually decrease.Secondly,the total redemption demand does not change monotonously with the intervention time of negative events.Finally,increasing the repurchase rate will significantly reduce the redemption scale only when the negative disturbance appears at a later stage.In addition,increasing the first purchase rate will slightly increase the redemption demand,and this effect is not influenced by the intervention time of the negative disturbance.Therefore,when a marketing strategy to promote first purchases is adopted,the risk reserve can be increased,and when a marketing strategy to promote repurchase behavior is adopted and there is no major negative information interference in the market,the risk reserve amount can be reduced accordingly.In addition,based on the value-risk criterion,this study establishes a redemption demand diffusion model that considers perceived benefits and perceived risks.The model considers the profit and loss status of wealth management products and the time when the loss occurs.The results show that a higher level of risk aversion significantly increases the demand for redemption,and such effect is not marginal diminishing.In addition,the increase in loss also magnified the influence of the level of risk aversion.Moreover,when losses occur in the early stages of the diffusion,changes in the network community structure have a significant impact on redemption demand,therefore in this case,the risk reserve should be adjusted according to the characteristics of the user’s network structure.This research explores the purchase and redemption demand diffusion process of internet financial products from the perspectives of social network structure and user behavior,and provides a reference for internet finance companies to effectively use social networks to optimize brand promotion effects and prevent liquidity risks.