Toward Platform-Economy Continuity: Do Descriptive Norms and Perceived Product Attributes Matter to Youths who Use Ride-Hailing Apps?

Abstract

Abstract. This study investigates how descriptive norms and perceived product attributes (utilitarian and hedonic benefits) influence the intention of young consumers to continue to adopt ride-hailing apps. We developed a conceptual model drawing upon the socio-technical theory by involving 333 Indonesian users of ride-hailing apps and estimating the model using the statistical tool of PLS-SEM-based software. The findings showed that social aspects (descriptive norms) and technical aspects (utilitarian and hedonic benefits) significantly influence young consumers to adopt ride-hailing apps. Intriguingly, a positive perception of the apps’ benefits is instrumental for encouraging young consumers to continue to adopt ride-hailing apps when descriptive norms appear, when peers in their social circle widely adopt similar apps. This study highlights the unique behavior of young consumers in adopting ride-hailing apps by accentuating the role of descriptive norms and perceived product attributes from the perspective of socio-technical theory. This study provides practical recommendations for digital platform providers, particularly TNCs (Transportation Network Companies), which offer ride-hailing services to address the young consumer segment with a community-based marketing approach to maintain their continued adoption. Keywords: Continuation intention, platform economy, digital platform, ride-hailing services, socio-technical theory, young consumers