Study Of Network Marketing Credit Problems

With the globalization of the world economy, web marketing has become the field with most potential. However, the lag in the development of credit system is the bottle-neck of web marketing in China. Therefore, it is instructive to the practice to study credit shortage and its economic theory, in order to build web marketing credit security system, and thus build up an effective credit system. Based on new institutional economics, social credit system theory, and information economics theory, and because web marketing enlarges the risk of having asymmetric information and opportunism, this paper argues that honesty in credit is the best decision. In addition, it studies the need for a credit system of web marketing, and how to solve the developmental bottle-neck of web marketing from the institutional level, and hence set up an effective credit guarantee system. We conclude that institutionalization is the basis of the existence and development of web marketing. It is far from enough to set up credit security system only by ethical restrictions. The development of a credit system requires its own social position and economic order at the institutional level, in other words, the institutionalization of web marketing. The government is the main body of the credit system. It should carry out effective methods to decrease cost in order to manage this credit system. When costs decrease and profits are positive, the innovation of web marketing can happen. This paper gives suggestions to the establishment of a web marketing credit system as well.