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How to create loyalty in the sharing economy? : a study of emotions, satisfaction and commitment among Airbnb customers

Visjø, Camilla Tryggestad; Slevigen, Henrik Hammerhei
Master thesis
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http://hdl.handle.net/11250/2479421
Date
2017
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  • Master of Science [1117]
Abstract
The sharing economy is drastically erupting traditional industries all over the

world, where services such as Airbnb and Uber no longer belong to only the

niche. Over a quarter of US adult internet users - or 56,5 million people - will use

a sharing economy service at least once in 2017, according to recent estimates by

eMarketer. But how loyal are these users? And how can companies make sure that

their services are not only tried once or twice, before people go back to traditional

providers? This study aims to identify and explore the drivers of customer loyalty

in the sharing economy, and particularly the role of emotions, the three

dimensions of commitment and satisfaction. A cross-sectional design has been

used through study 566 active Airbnb-customers in the U.S.

The findings from the study show that Calculative commitment, Affective

commitment, Satisfaction and Negative emotions are significant direct drivers of

Loyalty among Airbnb-customers. No significant direct effects of Sustainable

commitment or Positive emotions on Loyalty was found. However, Positive

emotions do play a major role in predicting customer loyalty, as it has strong

indirect effects through Satisfaction and Affective commitment. The results also

show that customers using Airbnb out of pleasure (hedonic user motivation) have

significantly higher levels of Positive emotions, Loyalty, and all three types of

commitment, compared to customers using Airbnb because it solves a functional

need (utilitarians), who have significantly higher levels of Negative emotions.

We recommend managers not to underestimate the effect of calculative and

rational measures such as price and switching cost in the sharing economy.

Calculative commitment, which deals with this particularly, was found to be the

strongest of the three commitment drivers on Loyalty. However, the total effect of

Positive emotions, as well as the direct effect of Negative emotions, were also

found to be significant drivers of loyalty, suggesting that affective measures are

equally important when creating customer loyalty in the sharing economy. Of

particular interest is the fact that Negative emotions have a direct negative effect

on customer loyalty – while Positive emotions do not. Thus, managers should be

aware that Negative emotions can be especially detrimental to customer loyalty in

the sharing economy. A clear recommendation is then to focus on reducing

negative emotions, such as fear, worry and guilt, through for instance campaigns

focusing on risk reduction.
Description
Masteroppgave(MSc) in Master of Science in Business, Marketing - Handelshøyskolen BI, 2017
Publisher
BI Norwegian Business School

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