Benefits of authenticity: Post-failure loyalty in the sharing economy

Abstract

Across five studies, this research reveals that the nature of the accommodation provider influences customers' post-failure loyalty. We propose a conceptual model that integrates perceived authenticity, social interaction, and positive emotions as primary determinants of post-failure loyalty in the sharing economy context. This article extends previous research by contrasting the impact of perceived authenticity on post-failure loyalty towards Airbnb (host, platform) and hotels. Our findings suggest that customers' post-failure emotional and behavioral responses depend on the accommodation provider type. The finding that authenticity and social interaction drive post-failure loyalty has important implications for managers of Airbnb properties and hotels. Finally, our findings provide new insights into customer perceptions of various service recovery strategies (e.g., apology, compensation) based on the accommodation provider type.