Payday Loan Marketing in Social Media Networks

Jianqiang Hao, Hongying Dai

Research output: Contribution to journalArticle

Abstract

The payday lending industry has grown dramatically over the past two decades, with lenders increasingly marketing their products on the Internet. However, little is known about payday loan (PDL) marketing through social media networks. Our study is the first to report the PDL promotions on Twitter. Out of 23,276 tweets related to PDLs from June 29, 2015 to October 2, 2015, 71% were commercial tweets, most of which came from a small percentage of users. The overall impact to the general public was large and we observed a range of opinions in our sentiment analysis. Commercial tweets had an average sentiment score of 34.9 while noncommercial had a total average sentiment score of 50.7. Commercial tweets were more concentrated in states with restrictive or hybrid regulations on PDL. Our findings provide evidence for enhancing online PDL regulations and using social media data for real-time monitoring of PDL lending.

Original languageEnglish (US)
Pages (from-to)441-451
Number of pages11
JournalJournal of Consumer Affairs
Volume52
Issue number2
DOIs
StatePublished - Jun 1 2018

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social media
loan
marketing
lending
regulation
twitter
promotion
Marketing
Loans
Social media
monitoring
Internet
industry
evidence
Lending
Sentiment

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics, Econometrics and Finance(all)

Cite this

Payday Loan Marketing in Social Media Networks. / Hao, Jianqiang; Dai, Hongying.

In: Journal of Consumer Affairs, Vol. 52, No. 2, 01.06.2018, p. 441-451.

Research output: Contribution to journalArticle

Hao, Jianqiang ; Dai, Hongying. / Payday Loan Marketing in Social Media Networks. In: Journal of Consumer Affairs. 2018 ; Vol. 52, No. 2. pp. 441-451.
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