Revealing consumption behaviors in the sharing economy: what leads consumers to replace traditional channels?

Abstract

PurposeAdvances in information technology and the increasing digitalization of the general public have favored the growth of the sharing economy. The sharing economy is based on transactions of idle resources between individuals to satisfy cogent needs. Notwithstanding the great interest in this emerging phenomenon, it is still not clear which factors are driving the shift in consumer consumption behavior from the traditional economy toward this new economic model. Grounded in self-determination theory, we contend that what is needed is a holistic approach that considers the three elements involved in sharing economy transactions, namely (1) consumer motivations, (2) web-based platforms and (3) types of assets exchanged.Design/methodology/approachTo conduct our study, we used the Flash Eurobarometer 467 database titled “The Use of the Collaborative Economy,” collected by the European Union with Flash Eurobarometer datasets and openly available to the public. Consequently, our study aims to provide results based on a large-scale quantitative analysis involving a large number of individuals and multiple sectors.FindingsOur findings provide empirical evidence of the positive effects of the shift in consumption behavior toward the sharing economy brought about by (1) consumers’ intrinsic motivations, (2) the quality of the platform and (3) the human asset-based categories of products offered.Originality/valueThis research seeks to advance understanding of the factors that facilitate the adoption of the sharing economy, and we provide managers and policymakers with suggestions regarding the factors they may leverage to further favor the spread of this economic model.