The Value of Platform Endorsement

Mimansa Bairathi (), Xu Zhang () and Anja Lambrecht ()
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Mimansa Bairathi: University College London, London E14 5AA, United Kingdom
Xu Zhang: London Business School, London NW1 4SA, United Kingdom
Anja Lambrecht: London Business School, London NW1 4SA, United Kingdom

Marketing Science, 2025, vol. 44, issue 1, 84-101

Abstract: Many digital platforms with large product assortments endorse a select group of items to facilitate user choice. However, although it seems intuitive that such endorsement may increase the sales of endorsed items, little is known about its effect on unendorsed items and on the platform. Using data from a field experiment conducted by an online freelance platform, we examine the effect of exposure to platform endorsement on user search and purchase behavior. We find that exposure to platform endorsement increases user search and purchases not only for endorsed services but also, for unendorsed services. We link the increase in search and purchases to an increase in the perception of the quality of services offered on the platform. We further explore heterogeneity in the effect of platform endorsement and find that the effect of exposure to platform endorsement on purchase is more pronounced for users with a higher propensity to purchase. We discuss implications for platforms, merchants, and regulators.

Keywords: platforms; platform endorsement; field experiment; online freelancing; spillover effects (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:44:y:2025:i:1:p:84-101

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