This paper will address the topic of trust in a sharing enterprise by first introducing the new economic force called sharing economy. The next two chapters will present the construct of trust on the basis of literature that deals with trust in a business context as well as trust in the sharing economy. Furthermore, a trust-building framework for online sharing services will be presented based on a recent study that was conducted, exclusively on the building process of Peer to Peer (P2P) trust. In the discussion section in Chapter 5 different approaches to the importance of trust for P2P marketplaces will be discussed. Subsequently, conclusions will be drawn based on the contents of the previous sections while there will be also made recommendations for the future.
All over the world, people are renting rooms from strangers through Airbnb, outsourcing grocery trips to TaskRabbits, and getting across town with ride-sharing service BlaBlaCar. These people are participating in the sharing economy that has rapidly grown from a niche market to a mainstream social movement. Its continued growth thus the future success of sharing economy companies is contingent upon one crucial factor: trust. This term paper accordingly approaches the question: Can trust make or break a sharing enterprise?
Table of Contents
1. Introduction
2. Introduction to the sharing economy
3. Trust in a business context
3.1. Business-to-consumer trust
4. Trust in the sharing economy
4.1. Trust in the company
4.2. Trust in other consumers
5. Discussion
6. Conclusion
Objectives and Topics
The primary objective of this paper is to examine the pivotal role of trust within the sharing economy, specifically investigating whether trust acts as the fundamental driver for the success or failure of collaborative consumption enterprises. The research addresses the challenge of establishing confidence between strangers in P2P marketplaces and analyzes mechanisms used to build such trust.
- The evolution of the sharing economy from a niche market to a mainstream social movement.
- Theoretical foundations of trust in business-to-consumer (B2C) relationships (cognitive vs. affective trust).
- The complexity of trust building in peer-to-peer (P2P) exchanges.
- Analysis of the D.R.E.A.M.S. trust-framework as a model for secure interactions.
- The impact of reputation and security incidents on sharing economy business viability.
Excerpt from the Book
4.2. Trust in other consumers
One of the largest European collaborative consumption communities named BlaBlaCar, a ride-sharing platform developed a trust-framework in order to secure and simplify P2P transactions in sharing services. This model is called the D.R.E.A.M.S. trust-framework (see figure 1) and was presented in June 2013 during an international online business conference in Paris (Gauthey, 2013). Based on their own experiences and other sharing initiatives that are operating in the collaborative economy, this model describes in six different ways how trust is built among users of a sharing service.
It explains that, in order to interact with one another with a solid level of trust, members in a P2P network must have access to specific information, such as basic information about other user’s identity, their level of activity on the platform and how they are rated/recommended by others (Gauthey, 2013).
Chapter Summaries
1. Introduction: This chapter provides an overview of the sharing economy's rapid growth and defines the central research question regarding the role of trust in the success of sharing enterprises.
2. Introduction to the sharing economy: This section explores the definition and economic basis of the sharing economy, contrasting it with traditional rental models and highlighting the impact of mobile technology.
3. Trust in a business context: The chapter establishes a scientific foundation for trust, focusing on the distinction between cognitive and affective dimensions in B2C relationships.
3.1. Business-to-consumer trust: This sub-chapter delves into how commercial brands build relationships with consumers through competence, reliability, and emotional connection.
4. Trust in the sharing economy: This chapter discusses the increased complexity of trust in P2P networks where consumers must trust both the platform provider and other users.
4.1. Trust in the company: This section analyzes cognitive and affective trust components relevant to sharing platforms, such as reputation, privacy assurance, and customer service.
4.2. Trust in other consumers: The chapter introduces the D.R.E.A.M.S. framework as a practical model to secure and simplify transactions between community members.
5. Discussion: This section examines real-world risks and security challenges faced by sharing enterprises, emphasizing that trust is the "new currency" for P2P interactions.
6. Conclusion: The author summarizes findings on the importance of trust and recommends that platforms actively monitor and enhance user trust to remain competitive in a landscape of disruptive change.
Keywords
Sharing economy, collaborative consumption, trust, P2P marketplaces, D.R.E.A.M.S. framework, BlaBlaCar, cognitive trust, affective trust, business-to-consumer, peer-to-peer, reputation, transaction security, digital trust, online platforms, consumer behavior.
Frequently Asked Questions
What is the core focus of this research paper?
The paper investigates the essential role of trust in the sharing economy and evaluates whether trust is the decisive factor that can either enable or terminate a sharing enterprise.
What are the primary themes discussed in the work?
Key themes include the rise of the sharing economy, the theoretical construct of trust in business contexts, the specific challenges of P2P trust, and practical frameworks for building security and credibility.
What is the central research question?
The research asks: "Can trust make or break a sharing enterprise?"
Which scientific methods are applied in the paper?
The study utilizes a literature review on business trust theories combined with an analysis of the D.R.E.A.M.S. trust-framework used by BlaBlaCar to ensure secure peer-to-peer interactions.
What subjects are covered in the main body?
The main body covers definitions of the sharing economy, the psychological dimensions of cognitive and affective trust, the components of platform-based trust, and real-world impacts of security breaches on market success.
Which keywords characterize this paper?
The paper is characterized by terms such as sharing economy, collaborative consumption, P2P trust, reputation management, and digital transaction security.
What does the D.R.E.A.M.S. acronym stand for in the context of this study?
It represents a framework for trust consisting of: Declared (identity/info), Rated (community reviews), Engaged (pre-payments), Activity (usage frequency), Moderated (verified data), and Social (integration with social networks).
Why is trust considered the "new currency" of the sharing economy?
Because sharing economy services rely on transactions between strangers, the ability to create and verify trust is the fundamental requirement for the platform to function successfully.
- Quote paper
- Evelyn Walter (Author), 2016, Trust in the Sharing Economy. Can trust make or break a sharing enterprise?, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/333754
