Informational synergies in consumer credit

Lenders can tap into multiple sources of private information to assess consumer credit risk but little is known about the informational synergies between these sources. Using unique panel data on checking accounts and credit card accounts from the same customers during 2007-2014, we find that activity measures from both account types contain information beyond credit scores and other controls. Checking accounts display warning indications earlier and more accurately than credit card accounts. We also investigate the consistency of information, the reasons for defaults, and selection effects. The evidence highlights sizeable informational synergies that lenders can use to manage credit relationships.

The consumer litigation industry: chasing dragon kings in lawyer-client networks

The community of lawyers and their clients form a scale-free bipartite network that develops naturally as the outcome of the recommendation process through which lawyers form their client base. This process is an example of preferential attachment where lawyers with more clients are more likely to be recommended to new clients. Consumer litigation is an important market for lawyers. In large consumer societies, there always a signi cant amount of consumption disputes that escalate to court. In this paper we analyze a dataset of thousands of lawsuits, reconstructing the lawyer-client network embedded in the data. Analyzing the degree distribution of this network we noticed that it follows that of a scale-free network built by preferential attachment, but for a few lawyers with much larger client base than could be expected by preferential attachment. Incidentally, most of these also gured on a list put together by the judiciary of Lawyers which openly advertised the bene ts of consumer litigation. According to the code of ethics of their profession, lawyers should not stimulate clients into litigation, but it is not strictly illegal. From a network formation point of view, this stimulation can be seen as a separate growth mechanism than preferential attachment alone. In this paper we nd that this composite growth can be detected by a simple statistical test, as simulations show that lawyers which use both mechanisms quickly become the \Dragon-Kings" of the distribution of the number of clients per lawyer.

Wood : from the forest to the consumer

Illegal logging causes a number of environmental and social damages in countries where wood is sourced from native forests. Logging in protected areas is an act of irresponsibility that exacerbates the loss of biodiversity. In addition, uncontrolled deforestation and bushfires may aggravate climate change, not to mention the negative effects they impose on local populations, such as the impoverishment of rural communities whose livelihoods depend on forest products. Several studies show that Brazil ranks high in terms of irresponsible use of natural resources, including native wood from the Amazon. Even more worrisome is the fact that the state, despite being responsible for regulating logging activities, is one of the largest consumers of native wood, which subverts the goals of any government committed to sustainable environmental management. By monitoring the development and impacts of illegal timber production and consumption around the world, the Friends of the Amazon Network – an initiative by the Getulio Vargas Foundation with support from the British Government and the European Commission – identified a need to describe and evaluate, in a brief and instructive manner, the different mechanisms the state has available to reverse this predatory practice. One of the aspects discussed in this book is the role of civil servants in major efforts aimed at repressing illegal logging and timber production, as well as identifying products derived from these activities in order to prevent their consumption. This is the purpose of this publication, which uses detailed infographics and a journalistic approach, including interviews and true stories, to outline the complexity of Amazon timber’s chain of custody – from logging, processing and transportation to commercialization in the Brazilian market.

Coffee house consumer behavior in Changsha, China

Women in Changsha are patronizing coffee-houses, ordering beverages and sweets, and disliking the taste of the expensive product purchased. This thesis is an exploratory research study conducted in Changsha, China with a consumer behavior focus. It uses primary surveys and interviews in addition to secondary sources from books, articles, and academic journals. It seeks to identify underlying motives for purchasing behavior from working women in the developing third-tier city Changsha, Hunan, China. It delves into the psychology of the working women who spend their hard-earned discretionary incomes at costly western chain coffee-houses. The inland mass-market consumer class feels the desire to project their newly established status while needing to save money for their personal future, their children’s schooling, and their parent’s retirement. They must wisely spend discretionary income while satisfying social societal norms. An individual’s self-concept plays and important role in determining which coffee shop she will frequent and what she will order. Daylight Donuts, Starbucks, Costa Coffee and local café’s all serve brewed coffee but they have different associations. This study aims at understanding the influencing factors associated with coffee-house brand equity and how the consumer’s perception of the brand forms her purchasing behavior. All coffee-house brands are relatively new in Changsha, none existing more than seven years. They do not have lasting ties with the community and need to create consumer relationships to ensure sustainability. Changsha women are bold and strong willed. If a corporation is to succeed in the future of Hunan, it will need to create an environment of hospitality excellence, place socially responsible roots in the society, and ask its customers what they want.

Essays on consumer brand engagement

Apesar do crescente interesse no conceito de engajamento da marca ainda existe discordância quanto aos seus conceitos fundamentais. Esta tese de doutorado explora a natureza da construção engajamento da marca do consumidor (EMC). No primeiro artigo, EMC é avaliada no âmbito da Teoria da Expectância para explicar e esclarecer como a antecipação de possíveis resultados de se envolver com uma marca, sendo tais resultados classificados como “primeiro nível” (resultante do esforço pessoal alocado para interagir com uma marca) e “segundo nível” (ou nível final, representando a consequência dos resultados de primeiro nível) e uma nova definição de EMC é formulada. Um arcabouço teórico abrangente é proposto para engajamento da marca, usando o Teoria Organizacional de Marketing para Expansão de Fronteiras (TOMEF) como referência para os pontos de contato entre o consumidor e a marca. A partir dos fundamentos teóricos das dimensões cognitivas, emocionais e comportamentais do EMC, quinze proposições teóricas são desenvolvidas para incorporar uma perspectiva multilateral às doutrinas teóricas do construto. No segundo artigo, quatro estudos são usados para desenvolver uma escala de engajamento da marca do consumidor. O Estudo 1 (n = 11) utiliza revisão da literatura e entrevistas em profundidade com os consumidores para gerar os itens da escala. No Estudo 2, oito especialistas avaliam 144 itens quanto a validade de face e validade de conteúdo. No Estudo 3 dados coletados com alunos de graduação (n = 172) é submetida à análise fatorial exploratória (AFE) e confirmatória (AFC) para redução adicional de itens. Trezentos e oitenta e nove respostas de um painel de consumidores são usados no Estudo 4 para avaliar o ajuste do modelo, usando a análise fatorial confirmatória (AFC) e Modelagem por Equações Estruturais (MEE). A escala proposta possui excelentes níveis de validade e confiabilidade. Finalmente, no terceiro papel, uma escala de engajamento do consumidor de Vivek et al. (2014) é replicada (n = 598) junto à consumidores em uma feira automotiva, para estender o debate sobre formas de medição do constructo usando a perspectiva da Teoria de Resposta ao Item (TRI). Embora o modelo desenvolvido com base na teoria clássica de teste (TCT) usando AFC, um modelo de resposta gradual (MRG) identifica cinco itens que têm baixos níveis de poder discriminante e com baixos níveis de informação. A abordagem usando TRI indica um possível caminho para melhorias metodológicas futuras para as escalas desenvolvidas na área de marketing em geral, e para a escala engajamento do consumidor, em particular.