The impact of photo verification service on sales performance in the peer-to-peer economy: Moderating role of customer uncertainty

Shuang Ma, Xuebin Cui, Xiaohong Xiao and Xiaonan Zhao

Journal of Business Research, 2022, vol. 142, issue C, 45-55

Abstract: The innovative service of photo verification is now offered by major home-sharing platforms. It remains unclear, however, whether and how a peer provider’s adoption of the platform’s photo verification service influences the provider’s sales performance. We draw on the theory of motivated information management to argue that verified photos are a crucial visual and experiential cue to reduce customer uncertainty regarding the properties and peer providers. We collect observational data from a leading home-sharing platform in China and utilize the propensity score matching method to account for endogeneity. Our results show that after adopting photo verification service, peer providers benefited from an improved sales performance in terms of revenue and rent days. The positive effect is stronger for properties with a source of greater uncertainty: (1) properties that lack certification and (2) properties with fewer customer reviews.

Keywords: Photo verification service; Customer review volume; Peer-to-peer economy; Service innovation (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:142:y:2022:i:c:p:45-55

DOI: 10.1016/j.jbusres.2021.12.021

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