The Research On The Transaction Credit Risk Evaluation Model In Group-buying Online Environments

With the rapid development of Internet, e-commerce accounted for the proportion in the national economy is also growing, e-commerce has gradually become a new force of China’s economic growth. The Group-buying online is a new kind of consumption pattern of the e-commerce, refers to organize the consumers with the same purchase intention through the Internet channel to manufacturers for bulk purchase behavior. The largest characteristics of the Group-buying online consumption is the consumer should pay in advance. In this kind of consumption pattern, the evaluation of credit is critical, the evaluation of transaction credit risk is particularly necessary.As a kind of consumption pattern based on credit, the transaction credit risk evaluation of Group-buying online has become one of primary of group-buying online, and it also has attracted widespread attention in the field of credit risk research. Most transaction credit risk evaluation models are mainly based on the trade historical credit and relevant risk factors, but the amount of transactions is not taken into account. At first, a new transaction credit risk evaluation model based on transaction amounts is presented in this paper, then we extend the evaluation model by taking more factors into account, such as the temporal dimension, customers’ good reputation rates and the transaction success rates, thus the evaluation model is more comprehensive. Since factors we consider are easy to get and suitable for most of group-buying websites, so the model is universal in the practical application.First, through literature review, we notice that most evaluation models take into account the transaction history of credit value and its related factors without considering the amount of the transaction. That implies that all previous transactions are equally evaluated, this weakness may lead to the incidence of malicious trades, in which sellers keep faith in small transactions amount while break faith in huge transaction amount. To solve this problem, we should consider a new transaction credit risk evaluation model from a new point of view.Secondly, a basic transaction credit risk evaluation model based on transaction amounts is presented in this paper, subsequently, we describe the mechanism of transaction amounts how to effect the credit risk evaluation in detail. In order to increase the applicability of the evaluation model, we extend the model presented in the first part by taking more factors into account, such as the temporal dimension, customers’ good reputation rates and the transaction success rates.Later, some case studies are given to validate the effectiveness of the evaluation model presented in this paper. And we conclude that the huge amount transaction launched by group-buying websites with small history transaction amounts remains significant credit risks, but the credit risk is less than the small amount transaction launched by group-buying websites with large history transaction amounts; if consumers increase the amount of the transaction, the bigger the magnitude of the increase is, the larger the transaction credit risk is, and the group-buying websites are more and more likely to default in the transaction, the higher the good reputation rates and transaction success rates of group-buying websites are, the smaller the credit risk is.At last, according to the previous case studies conclusion, we describes the measures to reduce the credit risk of the transaction in details from the perspective of group-buying websites and consumers. This provides an important reference for reducing transaction credit risk in the both sides of the transaction of group-buying online.