Trust in sharing accommodation sector: an institution-based trust perspective

Abstract

PurposeThe hosts' third-party certifications in the sharing accommodation platforms have largely overlooked how the provision of such certification information could facilitate the trust-building process and subsequently influence consumers' purchase intention. Adopting an institution-based trust perspective, the authors differentiate various types of hosts' certification information (i.e. financial certification and social certification) and examine their role in the trust-building process between the hosts and the customers on sharing accommodation platforms.Design/methodology/approachThis study uses the property-month level data of Airbnb Beijing from January 2019 to June 2020. Econometric analyses are adopted to evaluate the impact of institution-based trust on consumers' purchase intention. Specifically, the ordinary least square is used to testify the relationship between institution-based trust and purchase intention.FindingsThe empirical results show that the information on institution-based trust increases the likelihood that customers would reach purchase decisions. More importantly, results show that both financial certification and social certification affect consumers' purchase intention. The results further show that listings' attributes moderate the relationship between institution-based trust and customer purchase intention. Moreover, the authors find that “Superhost” and “Experience” positively moderate such relationships.Originality/valueThis paper confirms that the host certification fosters institution-based trust and reveals the impact of hosts' certification on consumers' purchase intentions. This study is among one of the first studies to incorporate institution-based trust into the trust formation on the sharing economy platform, which can improve the understanding of trust in the sharing economy context. The authors emphasize the importance of trust types on sharing economy platforms.