Customer value in Sharing economy: The case of Airbnb

Abstract

The sharing economy is an Internet-based business model in which users are directly connected to create, share and exchange goods or services built from underused resources. While this emerging phenomenon has been studied from different perspectives, including technical, social and economic, limited investigation has been done from the customer perspective. The aim of this thesis is to narrow the research gap by applying customer viewpoint to explore and identify customer perceived value inside the sharing economy. From this perspective, customer value is an important concept because creating excellent value to customers is one of strategic decisions for company to sustain and grow in the market. In order to address the research purpose, the author takes an interpretive approach to study customers' experience of using sharing economy. Empirical data is collected, from the case of Airbnb, to identify customer perceived value representing for the sharing economy. The results found by this study are indicated as follows. Firstly, the sharing economy offers customers alternative choices with easier consumption methods at a lower cost. Secondly, the sharing economy offers customers a unique, personal and socially-integrated experience. Finally, the choice of sharing economy reflects a shift in consumer preferences. Although consumers are aware of the potential costs and risks, they still prefer using the sharing economy because of its flexibility and uniqueness. These findings could be useful insights for companies to sharpen their competitive advantages and navigate business strategies.