Analyzing Chinese Online P2P Financial Product Purchase Decisions Utilizing the Framing Effect

  • Shang, Yu Fei (Department of International Trade, Incheon National University) ;
  • Kim, Soon-Hong (Department of International Trade, Incheon National University)
  • Received : 2015.08.07
  • Accepted : 2015.10.15
  • Published : 2015.10.30


Purpose - This study examines Chinese P2P investment decision processes from a behavioral economics approach. Research design, data, and methodology - We analyze the online P2P investment product purchase decisions of 241 respondents in China, March 2015 to May 2015. T-tests were conducted to determine whether the framing effect influenced investor investment preferences. The Association Rule was used to identify the framing effect of respondent demographic characteristics on joint decisions regarding stable or risky investment products. Results - There are significant differences between the two groups (positive framing and negative framing) and their product-choosing behavior. In the positive framing group, female investors, young investors, investors with non-financial occupations and with limited or no experience, preferred stable P2P investment products. In contrast, in the negative framing group, investors with extensive investment experience preferred risky investment products. Conclusions - The framing effect influences investor choices in online P2P investment products. It is necessary to implement comprehensive supervision and full information disclosure regarding P2P investment products. P2P investment websites can also adopt different marketing strategies according to investor gender and age.