Reputation Cues as Signals in the Sharing Economy

Sonny Rosenthal, Jean Yi Colette Tan and Ting Fang Poh
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Sonny Rosenthal: Wee Kim Wee School of Communication and Information, Nanyang Technological University, Singapore 639798, Singapore
Jean Yi Colette Tan: Wee Kim Wee School of Communication and Information, Nanyang Technological University, Singapore 639798, Singapore
Ting Fang Poh: Wee Kim Wee School of Communication and Information, Nanyang Technological University, Singapore 639798, Singapore

Social Sciences, 2020, vol. 9, issue 4, 1-14

Abstract: Reputation cues, like star ratings, signal qualities of service providers in the sharing economy and may affect user behavior. Guided by concepts from signaling theory and using a repeated measures experiment (N = 221), this study manipulated the level of star ratings of ride sharing drivers. Intuitive findings are perceived service quality and willingness to use the service provider are higher when the star rating is high versus low. Extending prior work, perceived service quality mediates the effect of reputation on willingness, explaining 83% of the total effect. Also, the direct effect of reputation cues on perceived service quality depends, albeit weakly (η 2 p = 0.02), on how much users say they pay attention to them. These novel findings clarify the kinds of mental processing that occur when users of shared services evaluate reputation cues. We discuss findings in terms of costly signaling and consider practical implications for users and providers.

Keywords: sharing economy; ride sharing; service quality; reputation; signaling theory (search for similar items in EconPapers)
JEL-codes: A B N P Y80 Z00 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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