Start Date
10-12-2017 12:00 AM
Description
In the recent decade, the short-term rental market is growing at a rapid rate. But some negative issues have followed. Trust has been regarded as one of the main impediments to the development of the short-term rental industry. In 2016, Xiaozhu.com encouraged hosts to present their Zhima Credit-a most popular third party online credit scoring in China- as a way to earn trust. We collect data of hosts in Shanghai and Beijing before and after they post Zhima Credit and conduct a difference-in-difference analysis to figure out whether reservations would be influenced by this action. According to our study, the entry of Zhima Credit does have a positive impact on the hosts’ reservations on Xiaozhu.com and the effect will last for quite a long time.
Recommended Citation
Wu, Jiang; Cai, Jingxuan; and Xie, Karen, "Does Online Credit Scoring Matter: An Empirical Analysis of the Effect of Zhima Credit on Short-Term Rental" (2017). ICIS 2017 Proceedings. 19.
https://aisel.aisnet.org/icis2017/EBusiness/Presentations/19
Does Online Credit Scoring Matter: An Empirical Analysis of the Effect of Zhima Credit on Short-Term Rental
In the recent decade, the short-term rental market is growing at a rapid rate. But some negative issues have followed. Trust has been regarded as one of the main impediments to the development of the short-term rental industry. In 2016, Xiaozhu.com encouraged hosts to present their Zhima Credit-a most popular third party online credit scoring in China- as a way to earn trust. We collect data of hosts in Shanghai and Beijing before and after they post Zhima Credit and conduct a difference-in-difference analysis to figure out whether reservations would be influenced by this action. According to our study, the entry of Zhima Credit does have a positive impact on the hosts’ reservations on Xiaozhu.com and the effect will last for quite a long time.