Marketing Analysis of Emerging Peer-to-Peer Microlending Websites

Marketing Analysis of Emerging Peer-to-Peer Microlending Websites

Djamchid Assadi (Burgundy School of Business (Groupe ESC Dijon-Bourgogne), France) and Meredith Hudson (First United Bank in Durant, Oklahoma, USA)
Copyright: © 2012 |Pages: 21
DOI: 10.4018/978-1-4666-1598-4.ch019
OnDemand PDF Download:
No Current Special Offers


The marketing trends of the emerging sector of peer-to-peer microlending websites have been left largely unexplored during its rise to recognition. Based on a sample of nine popular social lending sites, this exploratory chapter uses observational research methods to analyze the uncontrollable and controllable marketing elements of online social lending websites in order to better understand its present and future tendencies. A more comprehensive understanding based on similarities and differences of the marketing movement within this industry will be the end result of this chapter, and therefore, a more reliable prediction of the future it holds.
Chapter Preview

Background: From Microfinance To Social Lending

To better understand the focus of our research, P2P lending, also known as social lending, it is important to differentiate between microfinance and microcredit. Microfinance is “the act of providing borrowers with financial services such as savings institutions and insurance policies,” while microcredit is “the act of providing a loan” (Aubuchon & Sengupta, 2008). So, microfinance encompasses microcredit, synonymously referred to as microlending. P2P lending is an evolutionary tangent from the original idea that signifies lending and borrowing between peers and individuals.

Complete Chapter List

Search this Book: