CUSTOMER VALUE IN SHARING ECONOMY: THE CASE OF AIRBNB

Author: Hong Ngoc Nguyen

Abstract

The sharing economy is an Internet-based business model in which users are directly connected to create, share and exchange goods or services built from underused resources. While this emerging phenomenon has been studied from different perspectives, including technical, social and economic, limited investigation has been done from the customer perspective. The aim of this thesis is to narrow the research gap by applying customer viewpoint to explore and identify customer perceived value inside the sharing economy. From this perspective, customer value is an important concept because creating excellent value to customers is one of strategic decisions for company to sustain and grow in the market. In order to address the research purpose, the author takes an interpretive approach to study customers’ experience of using sharing economy. Empirical data is collected, from the case of Airbnb, to identify customer perceived value representing for the sharing economy. The results found by this study are indicated as follows. Firstly, the sharing economy offers customers alternative choices with easier consumption methods at a lower cost. Secondly, the sharing economy offers customers a unique, personal and socially-integrated experience. Finally, the choice of sharing economy reflects a shift in consumer preferences. Although consumers are aware of the potential costs and risks, they still prefer using the sharing economy because of its flexibility and uniqueness. These findings could be useful insights for companies to sharpen their competitive advantages and navigate business strategies.

LINK: http://tampub.uta.fi/bitstream/handle/10024/100387/GRADU-1482240821.pdf?sequence=1

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Regulating the Sharing Economy: Applying the Process for Creative Destruction

Salman Dostmohammad and Jude Long, Dalhousie University

The rising popularity of sharing platforms such as Uber, AirBnB, Taskrabbit and others is democratizing access to services as part of a larger sharing economy phenomenon. The sharing economy is a hub of peer‑to‑peer activity for obtaining, giving, or sharing access, and is coordinated through a web interface featuring community feedback. Uber, AirBnB and other such firms are drawing the attention of regulators as the sharing economy operates within a gray zone that is not contained within the existing regulatory framework. As new technology is accelerating the emergence of new forms of economic activity, regulators must adopt quicker measures in order to remain relevant. This paper first examines the reasons that cause governments to regulate, the problems currently affecting the regulatory framework, and the trade-offs regulators must consider in formulating the appropriate regulatory response. This paper then calls for possible solutions by proposing a regulatory framework that is flexible and responsive enough to allow these companies to operate into the future. Responsiveness can be enhanced by creating an inter-jurisdictional task force that will develop government's foresight and anticipatory abilities, and applying the process of creative destruction toward regulations that can solve the problem of outdated regulations.

See more at: http://www.csps-efpc.gc.ca/organization/sj-eng.aspx