Essays about digital innovation on consumer behavior

• Main Author: Fang, Sihan
• Other Authors: Hyeokkoo Eric Kwon
• Format: Thesis-Doctor of Philosophy
• Language: English
• Published: Nanyang Technological University 2024
• Subjects: Business and Management
• Online Access: https://hdl.handle.net/10356/173980
• Institution: Nanyang Technological University

In the first chapter, I explore the impact of video streaming platforms on offline movie consumption. The subscription-based business model is disruptive in the copy-right industries. More than a digitalized distribution channel, it fundamentally transforms both the supply and demand sides by offering new forms of content creation, provision, and consumption. However, the effects of these business models on the local offline industry are less well-understood, especially in the case of the motion picture industry. This study investigates the impact of the subscription-based business model on offline activity consumption in the motion picture industry. Leveraging a unique dataset with individuals’ every transaction record and a difference-in-differences approach, this study shows that Netflix subscription interestingly increases offline movie consumption. Based on the argument that individuals have unmet social and hedonic demands that are imperfectly met by subscription-based services like Netflix, this study shows that offline movie consumption actually increases post-subscription, accompanied by social and hedonic activities like dining and entertainment spending. This study also provides evidence that the identified effect on offline movie consumption is more pronounced for individuals with higher social (i.e., lower-income people) and hedonic (i.e., younger people) needs. This work provides clear implications for managers and policymakers who are involved in both subscription-based platforms like Netflix and the traditional offline movie industry. In addition, this study provides theoretical implications for the study of subscription-based platforms, imperfect substitution of channels, and the role of social and hedonic value in technology-supported platforms. In the second chapter, I focus on the adoption of the emerging mobile-only bank. The mobile-only bank, which exclusively offers full retail banking services through electronic channels without any physical branches, is on the rise worldwide. However, concerns have also emerged regarding the legitimacy of mobile-only banks, particularly in relation to financial inclusion and stability. To address these concerns, this study explores the determinants of the mobile-only bank adoption. Leveraging a unique dataset containing comprehensive personal information and transaction records for each individual, I operationalize a set of variables to measure the transaction amount and patterns. Utilizing the survival analysis, this study reveals that the superior capability to reduce information and communication frictions takes precedence, especially among adopters with irregular, unstable, and diversified consumption demands. This study rules out alternative explanations regarding the usage of online banking services, reduced transaction costs, and reduced financial costs. This study further discusses the theoretical contributions and practical implications surrounding financial inclusion and financial stability.