Reputation Cues as Signals in the Sharing Economy

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. Intuit...

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Main Authors: Sonny Rosenthal, Jean Yi Colette Tan, Ting Fang Poh
Format: Article
Language:English
Published: MDPI AG 2020-04-01
Series:Social Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-0760/9/4/49
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author Sonny Rosenthal
Jean Yi Colette Tan
Ting Fang Poh
author_facet Sonny Rosenthal
Jean Yi Colette Tan
Ting Fang Poh
author_sort Sonny Rosenthal
collection DOAJ
description 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<sup>2</sup><sub>p</sub> = 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.
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spelling doaj.art-63d7865f5b85494b8366fef5db4832852023-11-19T21:21:06ZengMDPI AGSocial Sciences2076-07602020-04-01944910.3390/socsci9040049Reputation Cues as Signals in the Sharing EconomySonny Rosenthal0Jean Yi Colette Tan1Ting Fang Poh2Wee Kim Wee School of Communication and Information, Nanyang Technological University, Singapore 639798, SingaporeWee Kim Wee School of Communication and Information, Nanyang Technological University, Singapore 639798, SingaporeWee Kim Wee School of Communication and Information, Nanyang Technological University, Singapore 639798, SingaporeReputation 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<sup>2</sup><sub>p</sub> = 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.https://www.mdpi.com/2076-0760/9/4/49sharing economyride sharingservice qualityreputationsignaling theory
spellingShingle Sonny Rosenthal
Jean Yi Colette Tan
Ting Fang Poh
Reputation Cues as Signals in the Sharing Economy
Social Sciences
sharing economy
ride sharing
service quality
reputation
signaling theory
title Reputation Cues as Signals in the Sharing Economy
title_full Reputation Cues as Signals in the Sharing Economy
title_fullStr Reputation Cues as Signals in the Sharing Economy
title_full_unstemmed Reputation Cues as Signals in the Sharing Economy
title_short Reputation Cues as Signals in the Sharing Economy
title_sort reputation cues as signals in the sharing economy
topic sharing economy
ride sharing
service quality
reputation
signaling theory
url https://www.mdpi.com/2076-0760/9/4/49
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AT jeanyicolettetan reputationcuesassignalsinthesharingeconomy
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