The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment
The sharing economy has radically reshaped marketing thought and practice, and research has yet to examine whether and how platform-level buyer protection insurance (PPI) affects buyers and sellers in this economy. The authors exploit a natural experiment involving an unexpected system glitch during...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2021
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/148794 |
| _version_ | 1811690854141657088 |
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| author | Luo, Xueming Tong, Siliang Lin, Zhijie Zhang, Cheng |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Luo, Xueming Tong, Siliang Lin, Zhijie Zhang, Cheng |
| author_sort | Luo, Xueming |
| collection | NTU |
| description | The sharing economy has radically reshaped marketing thought and practice, and research has yet to examine whether and how platform-level buyer protection insurance (PPI) affects buyers and sellers in this economy. The authors exploit a natural experiment involving an unexpected system glitch during a PPI launch and estimate difference-in-differences models using over 5.4 million data points from a food sharing platform. Results suggest that PPI significantly increases buyer spending and seller revenue, affirming the benefits of this platform-level insurance in the sharing economy. The authors also uncover multifaceted buyer-side and seller-side responses that enable such benefits. PPI increases buyer spending by boosting product orders and variety-seeking behavior. Furthermore, it enhances seller revenue by increasing customer retention and acquisition. This work contributes to the literature by (1) putting a spotlight on the topic of PPI, a platform governance policy that reduces consumer risks and improves the efficacy of sharing platforms; (2) accounting for how PPI alters buyer and seller behaviors on a platform; (3) addressing what types of buyers and sellers benefit more or less from PPI; and (4) offering guidance for managers to improve platform reputation, marketplace efficiency, and consumer welfare in the context of the sharing economy. |
| first_indexed | 2024-10-01T06:10:36Z |
| format | Journal Article |
| id | ntu-10356/148794 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:10:36Z |
| publishDate | 2021 |
| record_format | dspace |
| spelling | ntu-10356/1487942023-05-19T07:31:16Z The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment Luo, Xueming Tong, Siliang Lin, Zhijie Zhang, Cheng Nanyang Business School Information Technology and Operation Management Temple University Business::Information technology Consumer Protection Insurance Customer Retention and Acquisition The sharing economy has radically reshaped marketing thought and practice, and research has yet to examine whether and how platform-level buyer protection insurance (PPI) affects buyers and sellers in this economy. The authors exploit a natural experiment involving an unexpected system glitch during a PPI launch and estimate difference-in-differences models using over 5.4 million data points from a food sharing platform. Results suggest that PPI significantly increases buyer spending and seller revenue, affirming the benefits of this platform-level insurance in the sharing economy. The authors also uncover multifaceted buyer-side and seller-side responses that enable such benefits. PPI increases buyer spending by boosting product orders and variety-seeking behavior. Furthermore, it enhances seller revenue by increasing customer retention and acquisition. This work contributes to the literature by (1) putting a spotlight on the topic of PPI, a platform governance policy that reduces consumer risks and improves the efficacy of sharing platforms; (2) accounting for how PPI alters buyer and seller behaviors on a platform; (3) addressing what types of buyers and sellers benefit more or less from PPI; and (4) offering guidance for managers to improve platform reputation, marketplace efficiency, and consumer welfare in the context of the sharing economy. Accepted version 2021-05-27T03:17:30Z 2021-05-27T03:17:30Z 2021 Journal Article Luo, X., Tong, S., Lin, Z. & Zhang, C. (2021). The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment. Journal of Marketing, 85(2), 50-69. https://dx.doi.org/10.1177/0022242920962510 0022-2429 https://hdl.handle.net/10356/148794 10.1177/0022242920962510 2 85 50 69 en Journal of Marketing Luo, Xueming, Tong, Siliang, Lin, Zhijie, & Zhang, Cheng, The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment, Journal of Marketing (85, 2) pp. 50-69. Copyright © 2020 American Marketing Association (Published by SAGE). https://doi.org/10.1177/0022242920962510 application/pdf |
| spellingShingle | Business::Information technology Consumer Protection Insurance Customer Retention and Acquisition Luo, Xueming Tong, Siliang Lin, Zhijie Zhang, Cheng The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment |
| title | The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment |
| title_full | The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment |
| title_fullStr | The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment |
| title_full_unstemmed | The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment |
| title_short | The impact of platform protection insurance on buyers and sellers in the sharing economy : a natural experiment |
| title_sort | impact of platform protection insurance on buyers and sellers in the sharing economy a natural experiment |
| topic | Business::Information technology Consumer Protection Insurance Customer Retention and Acquisition |
| url | https://hdl.handle.net/10356/148794 |
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