Fourteenth International Conference on Climate Change: Impacts & Responses

Abstract

The Peer-to-Peer (P2P) sector of the sharing economy cannot function without a comprehensive rating and review process (reputation system) enabling online strangers to gain enough trust to engage in market exchanges (Fradkin, Grewal, Holtz, and Pearson, 2015). While seemingly innocuous, “reciprocal reviewing” (both buyers and sellers reviewing each other; Bolton, Greiner, and Ockenfels, 2013; Luca, 2016) represents a major paradigm shift which has far reaching consequences for both consumers and the firm. This investigation offers the first examination of consumer reactions to negative reviews within the context of the P2P product service systems sector of the sharing economy (e.g., Airbnb, Homeaway, Turo). Integrating social exchange (Emerson, 1976) and psychological contract (Bordia, Restubog, Bordia, and Tang, 2010; Gefen, Benbasat, and Pavlou, 2008; Robinson and Morrison, 2000) theories, we propose that when consumers receive an unexpected negative (vs. positive) review, they will make the P2P platform a retaliatory target even though the exchange is strictly between peers. We propose this effect is mediated by perceived betrayal. Further, we examine the role of platform assurances (intermediary actions taken by the platform related to overseeing and mediating the exchange; Perren and Kozinets, 2018) in attenuating or augmenting the mediated effect of review valence on negative word-of-mouth (NWOM) about the platform.