The Internet and new smart technologies are by far the main drivers of the sharing economy. Collaborative consumption defined as “the use of online marketplaces and social networking technologies to facilitate peer-to-peer sharing of resources (such as space, money, goods, skills and services) between individuals, who may be both suppliers and consumers”.
КИЇВСЬКИЙ НАЦІОНАЛЬНИЙ УНІВЕРСИТЕТ ІМЕНІ ТАРАСА ШЕВЧЕНКА ЕКОНОМІЧНИЙ ФАКУЛЬТЕТ
Кафедра страхування, банківської справи та ризик-менеджменту
Реферат з дисципліни «Маркетинг»
«Consumer attitudes to online collaborative consumption»
Студентки І курсу ІІ групи
спеціальності «Фінанси, банківська справа та страхування»
Щелінської Софії В’ячеславівни
1. Definition of the concept of collaborative consumption
2. Motivating factors for engaging in collaborative consumption
3. Barriers to collaborative consumption
4. Typology of collaborative consumer profiles
The Internet and new smart technologies are by far the main drivers of the sharing economy. Collaborative consumption defined as “the use of online marketplaces and social networking technologies to facilitate peer-to-peer sharing of resources (such as space, money, goods, skills and services) between individuals, who may be both suppliers and consumers”. Online collaborative consumption enhances peer networks, members of which communicate, collaborate, and even deliver services to one another via digital sharing. Generally speaking, the Internet and ICTs play a complex role in shifting conceptions of time and space. They enable people to distribute and access goods at the exact time they need them. The Internet made giant online marketplaces such as eBay and Amazon possible, via which anything can be bought and delivered anywhere. Thanks to ICTs, sharing became easier, to such an extent that it became an interesting alternative (for instance, secured online payment is a key invention in online shopping). Through interaction and facilitated navigation, ICTs have largely contributed to promote communication and sharing online. Online marketplaces, social networking technologies, and community based online services form online platforms that enable consumers to meet, exchange, share, and consume in a collaborative way
Definition of the concept of collaborative consumption
The phenomenon of collaborative consumption was often considered as a subset of sharing economy practices and has been defined in different ways. The first referenced use of “collaborative consumption” was by Felson and Spaeth and referred to any act of consumption undertaken in a group, such as buying a bottle of alcohol collectively because it is cheaper than buying several glasses. However, this was before the invention of the Internet. Thus, there was no mention of the role of technology in the process. The rising role of the Internet and of ICTs enhanced and facilitated the proliferation of collaborative consumption. So, collaborative consumption can be identified as “an economic model based on sharing, swapping, trading or renting products and services enabling access over ownership”. Bardhi and Eckhardt also shed light on use and on access over ownership, preferring the term “access-based” to refer to a “transaction that may be market mediated in which no transfer of ownership takes place”. According to these authors, the domain of collaborative consumption refers to how consumers are gaining access to goods and services by paying for temporally accessible experiences. Thus, this definition of collaborative consumption excludes ownership, which is not transferred in these activities. Similarly, Belk called these transactions “pseudo-sharing”, given that they can more accurately be called short-term rental activities. The author insists on the fact that non-monetary and monetary compensation occurs, “coordinating the acquisition and distribution of a resource for a fee or other compensation”, including bartering, swapping, and trading. Botsman and Rogers and Belk shed light on the social dimensions, while avoiding a business’s facilitation of this coordination. Mölhmann studies the impact of several factors like Internet capability, smartphone capability, and community belonging on the satisfaction of the sharing option and the chosen online platform. Similarly, Barnes and Mattsson highlight the role of the technological factor that can be a facilitator of collaborative consumption or even an inhibitor for people who are less tech savvy. Other studies point out the importance of building interpersonal trust in collaborative consumption to create successful sharing. Trust is considered one of the major drivers of choosing collaborative consumption forms. Morgan and Hunt argue for the crucial role of trust as a predictor of cooperative activity, as does Ostrom, who emphasizes the importance of trust as a key determinant of consumer motivations to collaborate. Mölhmann demonstrates the positive impact of trust on the satisfaction rating of a sharing option and the likelihood of using a sharing option again. So, we can conclude that collaborative consumption is often described as a social, economic, and technological model.
Motivating factors for engaging in collaborative consumption
The idea of collaborative consumption is to adapt to people and their needs by removing barriers and lowering prices that are expensive. Economic aspect is the dominant motivation to participate in the sharing economy. The low cost of usage compared to the cost of ownership is indeed the most cited reason, regardless of the sector and type of sharing in question. Accordingly, the motivation of users to continue participating in collaborative consumption is economic benefit. In this sense, collaborative consumption is considered as a “great deal of practical and economic sense for the consumer, the environment and the community”. Equally important to consider the social aspect as community has been defined both as a driver and as an outcome of participation in collaborative consumption activities. Another finding pertains to sustainable and ecological aspects. These consumers have a positive attitude toward collaborative consumption and tend to believe in its ecological promises. Online collaborative consumption is a big trend today, especially among younger generations. The current ecological problems reinforce the determination of younger generations toward collaborative consumption and increasingly ecological activities.
Barriers to collaborative consumption
One of the most reasons was a lack of trust. We talk about issues trusting strangers and relying on people they do not know and have never met. Technological issues also are important. The widespread availability of the Internet has facilitated collaborative consumption but even today many people are still digitally excluded and cannot access the opportunities offered by collaborative consumption. This issue mostly regards the elderly and those living in rural areas, for whom the experience may be less interesting due to a lack of proximity to potential users. As for acceptability issues, people may not voluntarily adopt collaborative consumption because they think it curbs economic growth. The issues of convenience strongly influence their decisions whether or not to engage in collaborative consumption. In fact, while the current leitmotiv is often that the customers is always right, in a transaction between peers, the two parties are tied. This implies that we must find arrangements to make it convenient for everyone. Dealing with an individual often leads to more difficulties. You have to adapt to the other user’s availability which does not always coincide with mine, this can sometimes cause problems. If, thanks to technology, some new collaborative consumption services present themselves as easy to use time-saving tools, other practices, such as joint purchasing arrangements, require more organization. To satisfy our quest for speed and ease, many new collaborative services highlight the time-saving argument. So, trust, technological, acceptability and convenience issues are main barriers to collaborative consumption.
Typology of collaborative consumer profiles
According to the motivations and barriers identified, we can consider a typology of collaborative consumer profiles. Committed collaborative consumers mainly seek to regain meaning. They want to distance themselves from and challenge the mainstream consumer model. As such, they are more engaged in their consumption than other profiles. Indeed, those who are committed to environmental issues see collaborative consumption as a means to reduce their needs by pooling and extending the life of a product. They find in the sharing economy what they feel is currently missing from the traditional system, including traceability and a guarantee of ethical production processes. Sharing is a conscious or unconscious way to reduce consumption. Pragmatist collaborative consumers seek above all the practicality and savings afforded by the sharing economy. Their main motives for participating are self-interest and utilitarianism (for instance, reducing expenses and increasing convenience). Intermittent collaborative consumers could be described as those who moderately believe in the promises of the shared economy and are not as active in the sharing economy as committed or pragmatist collaborative consumers. Convenience issues are the main reasons for their limited engagement in collaborative consumption. Clearly, a portion of respondents do not believe in the promises of collaborative consumption. It is change, rather than the notion of collaborative consumption itself, that they are uncomfortable with. This profile has been called skeptical collaborative consumers. Historically, there have always been consumers more resistant to innovations, mostly people who live in rural environments, where digital trends arrive later, and especially older people. Rural residents also tend to be very attached to their way of life.
So, online collaborative consumption is a new trend that is growing fast. Thanks to the development of the Internet and ICTs, the sharing economy enables consumers to exchange goods and services, share experiences, and interact with people they do not know, all through digital platforms. For better understanding of user’s were identified the main consumption habits, experience of sharing, and attitudes toward collaborative consumption and digital platforms.
- Hallem Y, Ben Arfi W, Teulon F. Exploring consumer attitudes to online collaborative consumption: A typology of collaborative consumer profiles.
- Barnes, S. J., & Mattsson, J. (2016). Understanding current and future issues in collaborative consumption: A four-stage Delphi study. Technological Forecasting and Social Change, 104, 200–211.
- Benoit, S., Baker, T. L., Bolton, R. N., & Gruber, T. (2017). A triadic framework for collaborative consumption (CC): Motives, activities and resources & capabilities of actors. Journal of Business Research.
- Botsman, R., & Rogers, R. (2011). What’s mine is yours. How Collaborative Consumption Is Changing The Way We Live. New York, NY: HarperCollins.
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- Möhlmann, M. (2015). Collaborative consumption: determinants of satisfaction and the likelihood of using a sharing economy option again. Journal of Consumer Behaviour, 14(3), 193–207.
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