Direct Communication and Two-Sided Matching Quality on a Digital Platform: A Perspective of Choice Based on Consideration Set

Abstract

On digital platforms, a challenging issue is to ensure the matching quality of two-sided transactions between providers and buyers. This study uses a multimethod approach to examine how direct communication contributes to matching quality in the context of a peer-to-peer platform for long-term real estate rental properties. We found that longer direct phone communication between the renter (customers) and the host (providers) enables the renter to choose a relatively more unique property within her consideration set. Also, the relationship between direct phone communication and ex post transaction satisfaction is stronger when a relatively more unique alternative is chosen. Direct communication enables consumers to collect additional information that supplements online observable product features and supports choice decisions. It allows consumers to anchor less on the centers of their consideration sets and select those unique alternatives. Consumers can better leverage the breadth of their consideration sets and overcome the limits of online information, eventually resulting in desirable matching outcomes. For platform owners, our study highlights the importance of aligning two critical practices for improving matching quality: supplying customers with useful online information and supporting direct communication.