Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy (Sustainable Management, Wertschöpfung und Effizienz) 3658423277, 9783658423278

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Sustainable Management, Wertschöpfung und Effizienz

Sonia Budz

Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy

Sustainable Management, Wertschöpfung und Effizienz Series Editors Gregor Weber, ecoistics.institute, Breunigweiler, Germany Markus Bodemann, Warburg, Germany René Schmidpeter, M3TRIX, Köln, Germany

In dieser Schriftenreihe stehen insbesondere empirische und praxisnahe Studien zu nachhaltigem Wirtschaften und Effizienz im Mittelpunkt. Energie-, Umwelt-, Nachhaltigkeits-, CSR-, Innovations-, Risiko- und integrierte Managementsysteme sind nur einige Beispiele, die Sie hier wiederfinden. Ein besonderer Fokus liegt dabei auf dem Nutzen, den solche Systeme für die Anwendung in der Praxis bieten, um zu helfen die globalen Nachhaltigkeitsziele (SDGs) umzusetzen. Publiziert werden nationale und internationale wissenschaftliche Arbeiten. Reihenherausgeber: Dr. Gregor Weber, ecoistics.institute Dr. Markus Bodemann Prof. Dr. René Schmidpeter, Center for Advanced Sustainable Management, Cologne Business School This series is focusing on empirical and practical research in the fields of sustainable management and efficiency. Management systems in the context of energy, environment, sustainability, CSR, innovation, risk as well as integrated management systems are just a few examples which can be found here. A special focus is on the value such systems can offer for the application in practice supporting the implementation of the global sustainable development goals, the SDGs. National and international scientific publications are published (English and German). Series Editors: Dr. Gregor Weber, ecoistics.institute Dr. Markus Bodemann Prof. Dr. René Schmidpeter, Center for Advanced Sustainable Management, Cologne Business School

Sonia Budz

Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy

Sonia Budz Bucharest, Romania The paper entitled “Research regarding the influence of social media on the quality of services in the sharing economy”, coordinated by Prof. Dr. Bogdan Cristian Onete, is a topical subject in the context of the present informational era. The paper suggests a distinct approach regarding social media and the peer-to-peer platforms from the perspective of the quality of services and collaborative consumption.

ISSN 2523-8620 ISSN 2523-8639 (electronic) Sustainable Management, Wertschöpfung und Effizienz ISBN 978-3-658-42327-8 ISBN 978-3-658-42328-5 (eBook) https://doi.org/10.1007/978-3-658-42328-5 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer Gabler imprint is published by the registered company Springer Fachmedien Wiesbaden GmbH, part of Springer Nature. The registered company address is: Abraham-Lincoln-Str. 46, 65189 Wiesbaden, Germany

Acknowledgements

First of all, I would like to thank in particular to Mr. Prof. Dr. Cristian Bogdan Onete for the support, patience and guidance offered for my doctoral and university studies. I would also like to thank him for all the support and guidance given in the related research. I am deeply grateful for all the help, advice and time spent completing my doctoral studies. Secondly, I would like to sincerely thank the professors in charge of guiding the scientific research program, Mrs. Prof. Dr. Rodica Pamfilie, Mr. Prof. Dr. Puiu Nistoreanu and Mr. Prof. Dr. Doru Alexandru Ples, ea, for all the support and guidance provided during the doctoral and university studies at The Bucharest University of Economic Studies. Thirdly, I would like to thank all my PhD. colleagues for the good collaboration and for the beautiful friendships that have formed during these years of study. Last but not least, I am grateful to my parents and I thank them for all the support they have provided over the years.

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Abstract

The paper entitled “Research regarding the influence of social media on the quality of services in the sharing economy” is a topical subject in the context of the present informational era. The paper suggests a distinct approach regarding social media and the peer-to-peer platforms from the perspective of the quality of services and collaborative consumption. The research of the paper includes a quantitative research regarding the implications of peer-to-peer platforms concerning the consumer, and a qualitative research with regards to social media and its degree of influence on the quality of services. The quantitative research contains the research methodology, a survey and a detailed analysis of the questionnaire answers. Within the research methodology, a dynamic and structural analysis of the demand for accommodation in private housing structures from peer-to-peer platforms was performed, the determinant factors of tourism demand in private housing structures have been identified, and the link between the tourism demand from peer-to-peer platforms, economic growth and social media was highlighted. Following the analysis of the questionnaire answers, the interconnections between social media, service providers, consumers, the level of quality and collaborative consumption were identified. The qualitative research consists in an interview method that was used in order to complete the questionnaire responses from the quantitative research with regards to the influence of social media on the quality of services. This research presents many interesting findings regarding the consumer perception of quality of services in the context of the sharing or collaborative economy. These findings are valuable for all parties working in the domain of the sharing economy or collaborative consumption. Keywords: Sharing economy · Quality of services · Consumer · Social media · Sustainability

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Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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2 Conceptual Elements in the Sharing Economy . . . . . . . . . . . . . . . . . . . 2.1 The Study of Quality in the Sharing Economy . . . . . . . . . . . . . . . . 2.1.1 Defining the Sharing Economy . . . . . . . . . . . . . . . . . . . . . . . 2.1.2 Defining Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1.3 Perspectives with Regards to the Quality Approach . . . . . 2.1.4 Quality assessment indicators . . . . . . . . . . . . . . . . . . . . . . . . 2.1.5 Other Aspects of Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1.6 Models of Quality of Services from a Consumer Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 The Product as a Service Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.1 “The Product as a Service” and Its Advantages . . . . . . . . 2.2.2 The Degree of Sustainability of the “Product as a Service” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.3 Consumer Perception of the “Product as a Service” . . . . . 2.2.4 Realities and Trends in this Field . . . . . . . . . . . . . . . . . . . . .

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3 The Influence of Social Media on the Quality of Services . . . . . . . . . . 3.1 Definitions and Perspectives for Social Media . . . . . . . . . . . . . . . . 3.1.1 The Evolution of Social Media . . . . . . . . . . . . . . . . . . . . . . . 3.1.2 The Relationship between Sustainability and Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.3 Other Social Media Benefits . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.4 The Impact of Digitization . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.5 The Future of Social Media . . . . . . . . . . . . . . . . . . . . . . . . . .

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3.2 Social Media Platforms as Support for the Sharing Economy . . . 3.2.1 Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.2 Blogs and Microblogs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.3 Vlogs and Podcasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.4 Social and Sharing Platforms . . . . . . . . . . . . . . . . . . . . . . . . 3.2.5 Mobile Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Main Peer-to-peer Platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.1 Airbnb Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.2 Uber Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.3 Bolt Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.4 Zipcar Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.5 Other Business Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Advantages of Peer-to-peer Platforms as Business Models . . . . . 3.4.1 Collaborative Consumption . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.2 Transparency, Quality and Sustainability . . . . . . . . . . . . . . 3.4.3 Attracting Customers/ Users through Social Media . . . . . 3.4.4 Social Media—the Best Online Tool for Promotion and Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.5 Social Media—intermediary of eWOM Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.6 E-commerce and the Trends towards Virtual Markets . . . 3.5 Negative Aspects Regarding Social Media . . . . . . . . . . . . . . . . . . . 3.5.1 Behavioural Dependence of Social Media . . . . . . . . . . . . . 3.5.2 Emotional Dependence of Social Media . . . . . . . . . . . . . . . 3.5.3 Reputation and Confidentiality . . . . . . . . . . . . . . . . . . . . . . . 4 Study of the Relationship between the Consumer—Social Media—Sharing Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 The New Consumer in the Contemporary Economy . . . . . . . . . . . 4.1.1 Theoretical Landmarks in Defining the Concept of Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1.2 The New Conscious Consumer . . . . . . . . . . . . . . . . . . . . . . . 4.1.3 Consumer Perception of Sustainability and Spirituality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1.4 The Perception of the Conscious Consumer with Regards to the Sharing Economy . . . . . . . . . . . . . . . . 4.1.5 Elements of Analysis with Regards to the Consumer Behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Contents

4.2 Analysis of the Relationship between the Consumer and Service Provider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.1 Communication and eWOM . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.2 Transparency, Trust and Ethics . . . . . . . . . . . . . . . . . . . . . . . 4.2.3 Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.4 Loyalty and Recommendations . . . . . . . . . . . . . . . . . . . . . . . 4.3 The Effects of Social Media on the Consumer . . . . . . . . . . . . . . . . 4.3.1 Factors that are Influencing the Conscious Consumer . . . 4.3.2 Consumer Reaction towards Online Content . . . . . . . . . . . 4.3.3 Consumer Reaction with Regards to Online Promotion and Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.4 Peer-to-peer Platforms, Tools of Influencing the Consumer’s Perception of Quality . . . . . . . . . . . . . . . . . 4.3.5 Consumer Reaction in Relation to Other Consumers in Terms of Transparency and Quality on Online Platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Research Regarding the Connection between Social Media—Sharing Economy—Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1 Quantitative Research Regarding the Implications of Peer-to-peer Platforms towards the Consumer . . . . . . . . . . . . . . 5.1.1 Research Motivation, Purpose, Objectives . . . . . . . . . . . . . 5.1.2 Research Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1.3 The Survey and Detailed Analysis of the Questionnaire Responses . . . . . . . . . . . . . . . . . . . . . . 5.2 Qualitative Research Regarding Social Media and the Degree of Influence that Social Media has on the Quality of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.1 Description of the Qualitative Method . . . . . . . . . . . . . . . . 5.2.2 The Structure and Size of the Sample . . . . . . . . . . . . . . . . . 5.2.3 The Results of the Qualitative Analysis . . . . . . . . . . . . . . . 5.3 Limitations and Future Directions of the Research . . . . . . . . . . . .

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Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Introduction

The research topic “RESEARCH REGARDING THE INFLUENCE OF SOCIAL MEDIA ON THE QUALITY OF SERVICES IN THE SHARING ECONOMY” aims to identify the interconnections between social media, service providers, consumers, quality and collaborative consumption. In an environment where digitization is the key to the proper functioning of society, access to technology and information, as well as the possibility of processing them are theoretically unrestricted. With the help of the internet, attracting potential consumers,their loyalty and satisfaction, depends directly on the speed of reaction of online service providers. From this point of view, the quality of the services offered by a provider can be correlated with the image of social media. The use of the Internet in Romania and in the world has evolved rapidly and shows clearly an increasing trend of the share of social media users. The free flow of information and easy access to it, influence modern consumers in making decisions in order to choose services compatible with them. Thanks to the characteristics and technologies of today’s society, consumers have the opportunity to contact service providers and other consumers to share their personal views and experiences derived from the quality of the received services, and vice versa. The Internet offers this opportunity by providing platforms where consumers can distribute various information in different ways. Today’s consumers are more demanding, sophisticated and populate an interactive marketplace. They are based on a value-driven philosophy, which focuses on defining, creating and delivering the value they want to buy from suppliers who want to deliver. The reciprocity of the benefits obtained by both parties is recognized, establishing a symbiotic relationship. Managing new supplier-consumer © The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2023 S. Budz, Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy, Sustainable Management, Wertschöpfung und Effizienz, https://doi.org/10.1007/978-3-658-42328-5_1

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Introduction

relationships requires an alternative approach to production-based command and control practices. Consumers seek value because they have the practical knowledge and awareness, and the power to see and understand things. Service providers can start the process of connecting with consumers in a way that will give them a lasting competitive advantage. This competitive advantage is based on building and maintaining reciprocal relationships that have significant longterm implications and therefore affect the strategic and forward-looking planning of the company’s marketing. The new concept of “product-as-a-service” is the process of creating value through the symbiosis between a product and a service. This phenomenon develops reciprocal relationships between consumers and suppliers who have adapted to new technological and marketing developments, offering the latter the opportunity to develop sustainable business that will retain consumers, making them dependent in some way by increasing the quality of the provided services. I consider that addressing this topic is appropriate, given the new technologies and trends of today’s society, which directly influence the e-business environment both nationally and globally. The collaborative consumption provides a sustainable, profitable business environment, and leads to lasting connections and relationships between stakeholders. Therefore, I appreciate that this untapped potential is the basic motivation for approaching this research regarding the influence of social media on the quality of services in the sharing or collaborative economy. The first chapter of this research contains the present state of knowledge regarding the theoretical notions or concepts of the sharing economy, quality and the term “product-as-a-service”. It covers the conceptual elements of the collaborative or sharing economy that comprise the study of quality in the sharing economy and the concept “product-as-service”. It also sets out perspectives for addressing quality, indicators for assessing quality and models of the quality of services from a consumer perspective. Also in this chapter, the advantages, the degree of sustainability and the consumer’s perception of the “product-as-a-service” are described. The second chapter presents theoretical approaches of social media and peerto-peer platforms. It presents social media perspectives, the impact of digitization and the relationship between social media and sustainability. Also, the connection between the sharing economy and social media is related by presenting the main business models that have peer-to-peer platforms, and the most important social networks. The specialized literature for websites, blogs and podcasts is exposed. This chapter also contains the negative aspects of social media.

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Introduction

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The third chapter contains the study of the relationship between the consumer—social media—sharing economy. This chapter includes the theoretical landmarks in defining the consumer concept, the description of the factors influencing the consumer, and the consumer’s perception of sustainability, spirituality and sharing economy. As well, the analysis of the consumer-service provider relationship, and the effects of social media with regards to the consumer’s emotional state and behavior. The third chapter contains information about the online reaction of the consumer in relation to other consumers, and the relationship between the degree of transparency and quality on peer-to-peer platforms. The last chapter, respectively the fourth one, is dedicated entirely to the actual research of the study topic, being exposed the motivation, purpose and objectives of the research, the quantitative research and the qualitative research. The quantitative research includes the research methodology, the survey and the detailed analysis of the questionnaire answers. The research methodology contains the dynamic and structural analysis of the accommodation demand on the peer-topeer platforms in private housing type structures, the determining elements of the tourist demand in the private housing type structures, the connection between the tourist demand on the peer-to-peer platforms, economic growth and social media. Due to the lack of available data regarding the peer-to-peer platforms found on the websites of the statistical bases, the structures of tourist accommodation such as private dwellings have been taken into account, ie apartments and rooms for rent, as the spaces posted on the Airbnb peer-to-peer platform can be fit into the mentioned structures. The analysis was carried out on annual data of the group corresponding to a number of 13 Member States of the European Union, in the period of 2010–2017. The simple linear regression model was used for panel data. The data series were collected from the website of the Statistical Office of the European Union EUROSTAT and from the statistical publication “Tourist Expenditures of Non-Residents”, edited by the National Institute of Statistics of Romania. The objectives of the research are: 1) The study regarding the influence of social media on the quality of services in the sharing economy; 2) The delimitation of the consumer’s perception of quality; 3) The interpretation of the degree of transparency and trust of peer-to-peer platforms; 4) The observation of the consumer behaviour regarding procurement, sustainability and social platforms.

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Introduction

The research hypotheses were developed based on independent variables such as: the frequency of online purchases, the degree of influence of foreign recommendations on online procurement platforms, quality-price preferences, use of services provided on peer-to-peer platforms, openness to buying services from peer-to-peer platforms, familiarity of the term product-as-a-service, openness to purchasing a product-as-a-service, the sustainable behavior, preferences for informational tools, the frequency of search for online reviews, the degree of transparency of peer-to-peer platforms. Thus, the research hypotheses are the following: Hypothesis 1—The more influential the consumer’s perception of quality in the online environment, the more their behavior will change; Hypothesis 2—The degree of transparency on online platforms influences the level of consumer confidence; Hypothesis 3—The higher the consumer’s awareness, the more the consumer tends towards sustainable products and services; Hypothesis 4—Differences in age, gender, education, professional status and income have a different impact on internet use. This paper addresses real facts that illustrate the benefits of the sharing economy in encouraging human mutual exchange and enhancing quality and lifestyles. This paper comprises the present state of knowledge with respect to the theoretical concepts of the sharing economy, of quality and the term “product-asa-service”, theoretical approaches with regards to social media and peer-to-peer platforms, and the study of the relationship between the consumer—social media—sharing economy. Followed by the actual research regarding the topic of study, the limitations and future directions of the research and the conclusions.

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Conceptual Elements in the Sharing Economy

The sharing economy recorded one of the fastest growths in history regarding businesses. It has had and still has a massive impact on society as it has disrupted many sectors of the traditional businesses. Lack of transportation and inventory costs helps business models to be more efficient and allows these companies to pass on value to their customers and partners. Traditional industries are affected by the sharing economy and many traditional businesses are forced to adapt to the changing landscape in order to stay in the market. The sharing economy leads to an efficient and balanced economy. Popularized by Botsman and Rogers (2010), the sharing economy is an umbrella term that brings together a multitude of lucrative activities on online platforms. It is based on the willingness of users to share, on users who prefer to share access to goods or services, the platform not owning any individual property. A very broad understanding of the concept includes, in one way or another, forms of collaborative consumption, such as car-sharing services or spaces such as rooms or apartments, collaborative lifestyles, collaborative financing, such as public financing, alternative currencies, lending from person to person, peer-to-peer, or even collaborative production. All of these sharing economy arrangements have flourished thanks to the innovative technologies on the Internet, bringing people together and stimulating creativity and collaborative productivity. These technologies make aggregating supply and demand for a wide range of products and services cheaper and easier than ever, as Boudreau and Lakhani (2013) have pointed out. It also helps to provide another vital ingredient—secure platforms for financial transactions. Moreover, thanks to online social networks and referral systems, the increase in user trust is naturally maintained. This establishes the © The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2023 S. Budz, Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy, Sustainable Management, Wertschöpfung und Effizienz, https://doi.org/10.1007/978-3-658-42328-5_2

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Conceptual Elements in the Sharing Economy

preconditions for an economic model of collaboration, the potential for growth being tremendous. A PriceWaterhouseCoopers survey done in 2015, measured the revenue caused by some of the most considerable sharing sectors – hospitality, automotive, personnel, finance and media sterling up to 14$ billion. With the quick expansion of new products and services using digital platforms, it is estimated to increase exponentially, reaching up to 335$ billion in 2025, an analysis based on the fast expansion of important platforms in the sharing economy. The phenomenon of the collaborative or sharing economy is in line with a growing interest in environmentally sustainable practices. The principles borrowed from the circular economy theory are based on the creation of strong communities by skilled consumers. According to the author Garcia (2013), everything stems from the growing desire to control consumption, without simply falling prey to a perpetual grotesque hyper-consumption. A political agenda for the sharing economy is of the paramount matter. Despite the universal enthusiasm for more partnership projects in this field, outdated regulatory frameworks are a pressing issue. Besides this, the hostility with regards to the business models of the sharing economy from the established companies in the most affected sectors must be eliminated or settled. The process of regulating an emerging market or technology is very complex and difficult to do correctly. It will be based on previous models, whether desired or not, while facing strong resistance from the established actors. An example that speaks for itself goes back to the dawn of the automotive industry in the United States. While previous regulations tended to prioritize horse-drawn carriages, strong railway companies struggled to prevent the car from appearing as a competitive threat, and these counter-forces ended up delaying construction and development of the automotive industry infrastructure for years. The same pattern can be seen nowadays when it comes to car sharing and renting rooms or houses. Resistant twin forces are represented by insurance regulations on the one hand, and by taxi companies on the other. Hotels, in turn, are threatened by the increased numbers of peer-to-peer rentals of rooms and houses. The role of the government should be to monitor such collaborative activities and to find innovative ways to regulate and tax them. Innovative methods refer mainly to ways that would not impede the development of partnerships related to collaboration between the involved parties.

2.1 The Study of Quality in the Sharing Economy

2.1

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The Study of Quality in the Sharing Economy

Significant economic and social gains can only materialize if the sharing economy is used continuously or sustainably. The concept of sustainable or continuous usage explores the use and interaction behavior of a person with a particular system for a longer period of time. Sustainable use behaviour indicates the expansion of initial use and is a key factor to consider when evaluating the benefits of the sharing economy. Consumption in a sustainable way requires a high-quality, durable product. The subject of sustainability in the sharing economy has been studied more frequently and the conclusion about it was mixed as to whether it has a positive and beneficial effect on the environment, particularly; or for different sectors of the triple bottom line, in general. Investopedia (2020), defines the triple performance model as a framework or theory that recommends companies to focus both on social and environmental concerns, as well on profit. The triple performance model (triple bottom line) considers that instead of a bottom line, there should be three: profit, people and the planet. The triple performance model measures the level of a company’s commitment towards corporate social responsibility and its impact on the environment over time.1 In response, several proposals existed with regards to how distribution in different sectors and models could become more sustainable, such as: food distribution, reuse of textile products, distribution of books and machines, and distribution of household furniture. In terms of demand, consumers have to the same extent an important stake in the pace of transformation, but fewer investigations to explore the changing consumer behaviour and their motivations were made. While the new ways of consumption and value creation should be profitable for organizations, it is significant that they generate value for consumers as well. For achieving both goals, it should be obvious what mechanisms create customer value and what causes their loyalty. In the traditional setting of services, loyalty is the outcome of customer satisfaction, which is determined by their perception of the quality of services and by value. Although the sharing economy is part of the service economy, it is different from the traditional services due to its triadic nature. The sharing economy’s users are consumers and peer-to-peer service providers. There is a large number of records advising that a network with supplier-consumer roles in the sharing economy offers a new advantage to logic, and to the ideas of co-creation and perception of value by the customer as a specific sustainable competitive advantage. According to recent 1

Investopedia, (2020), „Triple Bottom Line” https://www.investopedia.com/terms/t/triplebottom-line.asp

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Conceptual Elements in the Sharing Economy

studies, the dual roles of clients and service providers have been intertwined in the active co-creation of value, which enable platforms to earn a sustainable competitive advantage by regulating user mediation. Despite the growing interest, the quality of services and the value of the customer are not yet determined, and their impact on consumer behavioral intentions, such as loyalty, are not yet set out by one-way tools for estimating the perceived quality of services in the sharing economy. At the structural level, although there have been several efforts to test the relationship between satisfaction, quality and loyalty and between the value perceived by the customer and loyalty, a single study was found that analyzed an elaborated model of the quality of services, evaluating the value perceived by the consumer as a variable of mediation between satisfaction and quality. Indeed, Zhang, Gu and Jahromi (2019) requested contributions considering the interwoven outcomes of the quality and value of behavioural intentions. Studies about the perceived quality are in particular prevalent in the hospitality industry, travel or multi-industry. Research about the value perceived by consumers is mainly related to the mobility sector, like sharing rides or exchanging bicycles. The high quality of a platform is related to the extent to which a user can contact the platform and get help in case of an unexpected event. For example, Airbnb has suggested that because of the guarantees it offers when customers have last minute issues, such as damage, loss or theft of luggage, Airbnb assumes responsibility for the transfer or costs and offers a quick compensation or fix. The quality of a service offered by a provider is greately the responsibility of a sharing platform, in the sense that a platform has the capability to interfere with the transaction among the peer-to-peer service supplier and the customer. It can be observed that there are common practices for the platform to “educate” suppliers of peer-to-peer services, assesing and eliminating them for faulty services. As a result of these practices, platforms extend the proportion of trusted services and enhance the proportion of suppliers that show good and trustworthy conduct by diminishing bad services and misconduct situations. The quality of services could be considered the quality of the transaction between a peer-to-peer service supplier and a consumer. The role of a platform is complex because the process of creating value is not reproduced, but is created each time the new customer contacts the new peer-to-peer service provider. Continuous improvement is the common precursor of all dimensions of quality, which makes sense, not just from the viewpoint of the approach towards total quality management, but also from the viewpoint of logic. Whereas in the sharing economy the relationship between the actors is triadic, the value is co-created not only through interaction with consumers

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and peer-to-peer service providers, but also through interaction between service providers and the platform, and the one between the client and the platform. Thus, the platforms create value and amplify loyalty through continuous improvement, which is achieved through collaboration with users, both service providers as well as customers, and by obtaining their feedback, in line with the previous findings. The effect of continuous improvement on loyalty is only indirect because this result is in line with the mass view. It can be speculated that the sharing economy is no exception and that organizational learning processes are similar to the traditional sectors. The platform plays other roles, as in traditional situations, trust in services has generally received attention as the most critical dimension of quality. Similarly, in the online environment, it has been suggested that the level of trust is a key element for value creation, because in the sharing economy the customer interacts and evaluates all services, both of the platform and service provider. Confidence in the platform becomes less important, while trust in the service provider becomes more important, although it directly affects loyalty. Eventually, of all dimensions of online quality, the organization of the site has the greatest impact on loyalty. Indeed, the receptivity of the platform is important only in the event of unforeseen events, which in most cases will not happen. Many users may not know if the platform they are using offers compensation and so on. In addition, trust in a platform is a must because trust is a key factor in participating in the sharing economy. Instead, the organization of the site or application gives the owner of a platform a chance to be creative, which is a competitive advantage. The results are partly in line with previous findings in meaning that not all dimensions of quality have an equal impact. A the dimensions of quality, customer service and trust in the system have the strongest effects on value.

2.1.1

Defining the Sharing Economy

The technological development and the financial crisis of 2008–2009 led to changes in ownership and to the transformation of the co-ownership model into a co-sharing model. If people are used to the co-ownership model, now they have to get used to sharing their cars, bicycles, apartments, washing machines etc. Its momentum has taken place in Asia and South America, where urbanization has had a major influence, with smartphones being particularly popular. However, in emerging countries, the main constraints of economic growth are simply poverty, low levels of education and low informational infrastructure. Access to new technologies motivates small entrepreneurs to reconsider how they manage

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and develop customer relationships. Even if this happened, it is not enough to bring value only to the consumer, but also sustainability and stability due to the increased competition. When purchasing a product or service, people are not influenced just by reasoning, looking only for the best value for money to be convinced in order to make purchases, but also by feelings and perceptions. The main feature of the sharing economy is its heterogeneity. There are many business models, markets and products involved, so finding a common definition for all of these activities is difficult. Therefore, attempts to define the sharing economy focus on differentiating between different aspects of business models, such as how contracts are formed, trust is gained, or whether transactions are market-mediated or not. Starting with 2008–2009, the sharing economy has turned into a noisy concept, with the emergence of the first platforms and countless companies comprising different sectors around the world. The sharing economy is a challenged concept, in that a variety of concepts are used to refer to it, such as “collaborative consumption”, “platform economy”, “demand economy”, “peer-to-peer economy”, “equality economy”, “access economy”, “sharing economy”, among others (WEF, 2017). All these terms overlap, mainly because they imply a kind of interaction on the platform, each with an important connotation. The confusion between the mentioned terms about the types of savings and consumption often hinders the discussions about the future of the collaborative or sharing economy and the estimates of its size and its importance. As there is not yet a globally accepted definition of the sharing economy, the purpose of this research can be defined as: the sharing economy involves interactions on the Internet, on online platforms, and the level of trust verified by individuals or entities in order to provide temporary access or full ownership of inactive assets in exchange for monetary or non-monetary compensation, which allows for the management of individual resources in ways that circumvent traditional institutions. In line with previous research, it is emphasized that the sharing economy is based on the interaction of three main actors: (1) an internet platform that allows for trusted agreements and transactions, verified between users; (2) a service provider that provides temporary access or full ownership of its inactive assets; and (3) a client seeking access to or ownership of an asset and offering monetary or non-monetary compensation. At another level, some definitions of the sharing economy have presented an altruistic motive for business, which, however, is not applicable to all sharing economy enterprises. Ignoring these definitions, in general, the sharing economy includes all economic activities that focus on the exchange of goods, services or knowledge. Business sharing can only take place between consumers through peer-to-peer models or it can involve suppliers (Figure 2.1).

2.1 The Study of Quality in the Sharing Economy

Demand

Peer-topeer Platform

11

Supply

Figure 2.1 Peer-to-peer model structure. (Source: Demary, V., (2015), “Competition in the Sharing Economy”, IW policy paper · 19/2015, Contributions to the political debate by the Cologne Institute for Economic Research)

There are mainly two different business models for the sharing economy. A web platform is the center of both models; what is different is the way it is delivered. The best known model of the sharing economy is the peer-to-peer (P2P) model. In this model, the goods or services are shared between individuals, which means that the company that owns the platform does not produce any goods or services. It simply acts as an intermediary between supply and demand. Examples of this type of model are the platforms that facilitate the meeting of tourists or other travelers with the owners of private houses in order to provide accommodation. This service may or may not be free. Some platforms charge for both consumers and suppliers. Firstly, the companies that own the online platforms are frequently non-profits that are funded by advertising or sponsorship. Latterly, it can be a very profitable business model, especially when companies charge for a service that costs them little to provide, once the initial fixed costs for platform installation and marketing have been borne. In contrast, businessto-consumer (B2C) models of the sharing economy resemble certain traditional business models. In these cases, the company not only provides the platform to channel the demand, but also provides the good or service. Free car rental companies are an example for this type of business, as well as any kind of online rental company, for clothes, toys or other goods. This model differs from traditional business models in that, first, ownership has no role, and second, interactions are based primarily on up-to-date technologies and communication devices such as the Internet, applications, smartphones, or computers. The line between traditional and non-traditional businesses is sometimes blurred in B2C models. Rental companies have been present in the market for a long time, and the possibility of booking any good or service offered online is already a business of the sharing economy type. The main point here should be whether the online platform and possible new additional technologies used are the focus of the activity. If booking a good or service on a platform simply precedes a longer face-to-face interaction, as is the case with traditional car

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rental companies, it cannot be considered the main aspect of the business model. B2C companies that activate in the sharing economy typically have little or no face-to-face interactions with their consumers (Figure 2.2).

Demand

Platform

Delivery

Figure 2.2 Business to Consumer model structure. (Source: Demary, V., (2015), “Competition in the Sharing Economy”, IW policy paper · 19/2015, Contributions to the political debate by the Cologne Institute for Economic Research)

Besides the P2P and B2C models, the sharing economy also includes businessto-business (B2B) models. This is often overlooked because, at first glance, the sharing economy seems to be user-oriented. However, it is becoming more and more popular for companies that used to buy semi-finished goods or services from other companies to rent them out. The B2B model, facilitated by the sharing economy, can function in any way, namely as a supplier of equipment, workspaces or other goods or services that may include another company that shares its own assets, facilitated by a business in the sharing economy that fits supply and demand. This is basically a P2P to B2B model. Alternatively, the B2B model may be identical to the B2C model, in the sense that the company owns both the platform and the asset that is shared.2 The sharing economy is becoming an economic activity based on person-toperson (P2P) and business-to-person (B2P) communication. Online platforms are becoming an important part of a sharing economy that allows people to participate in collaborative consumption. Companies should be aware that customers are becoming the new marketers with extensive discussion about opinion and brand, through viral marketing (orally) as an important marketing tool for companies. The sharing economy is a principle that is constantly evolving due to the use of technology in order to facilitate the exchange of goods or services between two or more parties. The exchange of values takes place on a shared market, a collaboration or intermediary platform. 2

Demary, V., (2015), Competition in the Sharing Economy, IW policy paper · 19/2015, Contributions to the political debate by the Cologne Institute for Economic Research

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The collaboration model is not new because in the past many rural communities have prospered through the exchange of goods or barter. The term “sharing economy” has gained popularity in the form of a new culture based on paying taxes through online platforms. Belk (2014) defines the sharing economy as “the acquisition or distribution of people-coordinated sources in exchange for a compensation or a fee”.3 The sharing economy offers affordable and more convenient alternatives for established industries. Airbnb for accommodation, Uber for transportation and travel, Lendingclub for loans, Taskrabbit for on-demand labor, freelancing, GwynnieBee for clothing and farm equipment are just some of the most popular. The sharing economy is becoming an interesting phenomenon in which the need for individuals to give each other access to existing resources increases. There are many benefits to getting involved in the sharing economy, it is a social alternative and an economic movement that helps to share unused resources with others in order to reduce waste and will ultimately lead to a higher level of common interests in society. The sharing economy is seen by some as a factor in consolidating the current unsustainable economic paradigm. It encompasses a variety of practices, activities, industries and includes many organizations with different types of for-profit and non-profit initiatives. The sharing economy can generate both opportunities and tensions for the public sector. Regulated public services do not necessarily align with the applications of the sharing economy, and this can challenge the values promoted by the public sector. A well-known example is the case of Uber, which has created tensions in areas where the need to regulate taxis has created public monopolies. The sharing economy can be a major transforming agent for the public sector if it extends its role beyond that of a strict regulatory body. Chen and Wang (2019) defined the sharing economy as a type of digital economy and highlighted the importance of its digital economy nature, in which data is seen as a key production factor that creates value for different actors across the value chain. As a new form of economic system, the sharing or collaborative economy is constantly expanding and changing. Its evolution requires comprehending and solving the challenges emerging from the sharing economy. The entire ecosystem of the sharing economy is not yet in its healthy form, due to various issues related to business models, governance, employment, externalities,

3

Belk, R., 2014. „You are what you can access: Sharing and collaborative consumption online”. Journal of Business Research 67(8), pp. 1595–1600

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complex relationships and consumption patterns. Especially in the field of transportation, excessive regulation, the quality of inconsistent services and the need for recommendations are potential obstacles in the growth process. Firms need to treat consumers as active partners in the value creation process and define new marketing activities, because consumers are co-producers in the business model of the sharing economy.

2.1.2

Defining Quality

Quality is the customer’s requirement because in a fast paced world of the future, people are moving towards happiness, connection and balance. Quality is defined in several ways, such as the degree of excellence, compliance with requirements, freedom from certain defects, the totality of the characteristics that act to satisfy a need and so on. Drucker (2006) said that “quality in a product or service is not what the supplier offers, but what benefits and is willing to pay the customer. Customers pay only for what is useful to them and give them value. Nothing else is quality.”4 The customer is the one who defines what quality means, according to one’s needs and preferences. Quality is the customer’s perception of the product or service based on the evaluation of the entire experience. This perception will influence the customer’s willingness to pay and use the same product or service multiple times. A high quality product is not the same as an expensive one because a product at a low price can be considered as having a high quality if the customers determine it as such. It is therefore imperative that each company identify such needs from the product or service development cycle in order to be placed ahead of its competitors in the marketplace. The common mistake made by some companies is to add features that are supposed to be best for customers in the products or services they offer, when in fact they are not what customers want.

4

Drucker, P., F., (2006), Definit, ie calitate. Innovation and Entrepreneurship‘. Harper Business. Edit, ie reprintat˘a. ISBN-10: 9780060851132. ISBN-13: 978-0060851132

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“Quality has become the most important aspect of contemporary management. At present, quality means more than the traditional notion of the quality of products and services encountered in previous years. The current definitions cover improvements in the cost of products, performance in distributing them, time to market, and response to market changes. These new trends determine new reorientations in the perception of quality from the lowest level to the highest level” (Onete, 2006).5 Pirsing (2006) stated that “quality is a characteristic of thinking and assertion that is recognized by a non-thinking process because definitions are a product of rigid, formal thinking, so quality cannot be defined.”6 Garvin (1988) noted that “there are 5 approaches to defining quality that cover the meaning of quality for managers, operators and customers: a transcendent, product-based, user-based, manufacturing-based and value-based approach. There are also 8 critical dimensions of quality that can serve as a framework for strategic analysis: performance, characteristics, reliability, compliance, durability, utility, aesthetics and perceived quality.”7 The Oxford Dictionary defines quality as “the high standard of something measured against other things of the same kind; the degree of excellence of a thing.”8 It has been widely recognized that quality is one of the key factors in customer satisfaction and the position of different companies in the competitive market. In today’s changing conditions, and growing demand, companies are forced to react quickly and introduce new solutions for innovation. According to manufacturingbased definitions, quality means the conformity of a product or service with various requirements and standards, so that any deviation from the prescribed requirements is treated as non-compliant with the required quality. It is said that this definition is most useful especially in the production industry, but also in the service sector. Finally, the latest value-based approach describes quality as the degree of excellence of a service at the approved price, and the acceptable level of costs. Along with the evolution of the service sector, many researchers have noted that the quality measurement tools and definitions utilized in the goods 5 Onete, B., C., (2006), „Noi dimensni în calitate”. Amfiteatru Economic, vol. 8, no. 20/2006. ISSN: 1582—9146 6 Pirsing, R., M., (2006), „Zen and the Art of Motorcycle Maintenance: An Inquiry Into Values.” HarperTorch S.U.A. ISBN: 0060589469. ISBN13: 9780060589462. 7 Garvin, D., A., (1988), „Managing Quality: The Strategic and Competitive Edge”, Harvard Business School, Simon and Schuster. ISBN: 0029113806, 9780029113806 8 Oxford Dictionary. „Quality”, https://en.oxforddictionaries.com/definition/quality

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industry cannot be put forth directly in the case of the service sector. The specific characteristics of the services must be recognized in order to fully understand the quality of the services and to find the appropriate tools for measuring them. First of all, services are intangible and unstable, so it is extremely difficult to set requirements and then measure the effects. Secondly, the differentiated range and heterogeneous nature of services do not allow the formation of an universal instrument for measuring their quality. Third, the production and consumption of many services are inseparable, so the customer is in most cases actively involved in the service delivery process. Moreover, each customer determines individually what level of service is satisfying, but does not allow any level of tolerance with regards to mistakes in the process of providing them. Competition encourages businesses to improve the quality of the goods and services they sell—to attract more customers and expand market share. Quality can mean many things, such as products that last longer or work better after sales, technical support or more friendly and better services. In the current dynamic environment, access to information and the possibility to process it are theoretically unlimited. Through technology and the Internet, attracting and retaining potential customers depends on the speed of reaction and the rapid response of service providers. The quality of services presented by a provider can be easily correlated with his image on social media. Due to the technological and informational developments in the recent years, consumers have the opportunity to contact service providers in order to share their views, as well other consumers to share their experiences about the quality of services received and vice versa. The emphasis on quality is a very important factor and is in line with the services of the European Union. The sharing economy facilitates and leads to the increase of quality due to the transparency and the creation of a stable relationship between suppliers and consumers.

2.1.3

Perspectives with Regards to the Quality Approach

Quality is transdisciplinary by its nature, ranging from engineering to the fields of philosophy, it is a complex and versatile concept. Ensuring the quality of services is crucial for the outcome of the whole process in all areas. There is no complete framework for quality assurance services. Quality in innovative service development projects has two dimensions: the quality of management and the quality of technological applications. The two dimensions

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are strongly correlated, so that when the management is faulty, the resulting application is unlikely to meet the user’s requirements. Quality management addresses the following issues: • Predictability implies that quality must be measured according to a model that generates the expected results; • Adaptability requires better service than others, resulting in flexibility; • Stringency requires that quality must be managed using techniques, comparisons, feedbacks and methods whose effectiveness has been validated in practice; • Commensurability requires the service to use easily quantifiable data and information. Technological applications that meet better the requirements of the user. The quality of the technological applications implies: • Usability is given by the ease with which a user accesses and uses the functionality; • Reliability is the page load speed, response, operating hours, and different behaviors when accessing the application using high-speed Internet connections; • Repeatability is determined by the degree of predictability, when looking for a specific result; • Availability is the extent to which the application is accessible; • Security is the extent to which personal data and information are protected (Figure 2.3).9

9

Lam, K., S., Hugo, Yeung, C., L., Andy, Cheng, T., C., Edwin, (2016), “The impact of firms’ social media initiatives on operational efficiency and innovativeness”, Journal of Operations Management, Ed. Elsevier, China, pp. 1–3, August

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Quality of services (percieved quality)

Providers

Consumers

Quality of products (technical quality)

Process quality (quality – functionality)

Figure 2.3 Types of quality. (Source: Alireza, A., Ismail, Y., Hojjati, S., M., H., (2011), “A Study on Total Quality Management and Lean Manufacturing: Through Lean Thinking Approach”. World Applied Sciences Journal, vol. 12 (9), pp. 1585–1596)

Quality has a wide meaning, and for different people it often means different things. Garvin (1988), in his book “Quality Management”, described the five perspectives of quality: • Transcendental—means that quality is difficult to define but easy to notice. • Product-based—this perspective is roughly measured by how good the product is. It is something impartial, far from how the customer feels about the product. The limitation, in this case, is that the superior quality of the product cannot ensure that people will like the product. This perspective is not about the individual tastes or preferences of the customers.

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• Manufacturing-based—refers to production and engineering requirements. Quality in terms of production, sets the requirements, specifications and technology within the company. Improvement exists, for example, by reducing the scratches of a product. In this case, quality is defined by what the manufacturing process looks like. The customer does not see the inside job, as a manufacturer wanting to reduce production costs by reducing quality from a production perspective, it’s a pretty dangerous situation. • User-based—is about how the product meets the needs and expectations of customers. It is also quite complicated because customers have a extensive range of interests, expectations and needs. It is necessary to decide regarding the desire for deep satisfaction of only a few customers or the partial satisfaction of several customers. • Value-based—quality from a value-based perspective means approximate costs and prices. What costs or prices will be acceptable in this case (Figure 2.4).10

Figure 2.4 Quality perspectives. (Source: Ghinea, Gh. G., Marios, A., (2004), “A User Perspective of Quality of Service in m-Commerce: Special Issue: Mobile Multimedia and Communications and m-Commerce”. Multimedia Tools and Applications, vol. 22)

User perspective (transaction time, multimedia quality, cost, security, client device etc.)

Business perspective (revenue, number of customers, negotiation strategies, security, etc.)

10

Transmission perspective (transaction time, delay, interference, errors, device/ network/location adaptation etc.)

Garvin, D., A., 1988. Managing Quality: The Strategic and Competitive Edge. New York: Free Press.

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Quality does not have a proper meaning or definition. It differs with the role of individuals in production and in marketing value chains. Many people have different opinions about the unique concept of quality, such as perfection, waste disposal, consistency, fast delivery, good product, no defects right at the beginning of use, and customer delight. Evans (2012) defines quality in 6 perspectives, as listed below: • Transcendental Perspective—This is a common notation used by consumers for quality excellence. In 1930, the pioneers of quality control said that quality can be measured by the degree of excellence of the product. Therefore, transcendence was considered to be above or beyond the limits of quality. The transcendent perspective was considered both absolute and universally recognized, with uncompromising standards and a high level of achievement. • Product Perspective—The definition of the quality of a product refers to the amount of product attributes, such as the number of threads in the shirt or the characteristics of a mobile phone or a car. The more attributes the product has, the better the quality, which encourages manufacturers to incorporate more features. Similarly, in the transcendent quality, the attributes vary depending on the interest of the user. A good market research is to understand the customer’s requirements well and to implement them in the product. • Value Perspective—Value-based quality is the relationship between the benefits of a product and its price. Consumers no longer buy a product based on its price. They compare the goods and service packages with other competitive offers that the providers can offer. The consumer benefit package is included in the physical product, along with the quality dimensions, sales support, ease of ordering and on-time delivery of the product. It also includes after-sales support with field services, technical support and warranty. If competitors offer a good range of products or services at the same price, consumers will rationally select the product or service with a quality level perceived as high. In contrast, if the competitor offers the same package and the same quality at a lower price, customers will choose the product with the lower price. Therefore, a high quality product is a product that best satisfies a customer with lower costs. Thus, the supplier needs to focus on the continuous improvement of the consumer benefits package through quality efficiency in terms of internal operations. • User perspective—Individuals have different needs and desires with different expectations. This leads the user to define the quality or design of the product according to the intended use of the consumer. For example: Cars created according to customer wishes: easy to drive, luxury cars, cheap cars etc.

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• Production outlook—Some suppliers and consumers expect consistency in their products and services. These suppliers have a list of standards for services and products, considering that compliance with these standards defines their quality. These standard specifications are targets set by the product manufacturers. For example: Food Company X is trying to provide food of the same quality in all their branches and subsidiaries. Hotel H offers quality experience to all its guests. This is an unequivocal definition that measures quality and determines a good that is manufactured or a service that is delivered or designed. • Customer perspective—Quality is the totality of features present in a good or service that meets the estimated needs. Most suppliers, who started with a very simple but powerful quality concept, reached customers very easily. In this way maintaining a long-term relationship.11

2.1.4

Quality assessment indicators

Managing the quality of services should be the main priority of providers in the real context of a constantly changing society. This requires a diagnosis of the perceptions of consumers and legal entities or persons who have bought the services provided by the respective providers. As well on the level of the quality of the standards enforced by each provider and on the perception of each of their employees about the quality of the provided services. This diagnostic analysis is required at a certain level of the supplier companies in order to clearly understand the effectiveness and efficiency of the quality standards imposed by the management. All these aspects must determine the adoption of the best management measures through the evaluation and quality of the provided services. Quality measurement establishes numerical values of quality characteristics. The quality level is a relative measure of quality taken by comparing the observed values with the established values. The quality level can be explained by: • a grade, such as an exceptional level of quality, an adequate level of quality and a low level of quality; • an indicator of quality, index or coefficient.

11

Evans, J., R., (2012), „Managing for quality and performance excellence”, 9th Edition. Cengage Learning. Capitolul 1. ISBN: 1285633172

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Quality indicators represent the way in which a product or service shows its external manifestation under established conditions, and characterize the quantitative extent to which the product or service meets an established requirement. An expression of an organization’s maturity is accomplished by the extent to which performance documentation is used. Through the indicators, the provider sets a specific goal and ways in which this goal can be achieved, thus raising awareness of its methods. By indicators we can understand the following: • they indicate the objectives under specific characteristics or parameters; • hey indicate how to achieve certain features or parameters. An indicator can be represented as follows: • text, sentences structured in the form of paragraphs that indicate a certain way of following them; • tables, data that show certain qualitative and quantitative limits; • diagrams that mention the requirements that indicate a direction or a sum of characteristics to follow; • numbers that indicate limits, results etc. An indicator shows the direction and what is supposed to be achieved. The quality indicator is an indicator that assesses the extent to which certain requirements are met. Periodic evaluation of the measurements in which the indicators are established and complied, with the regular measurement and monitoring of the quality indicators, are measures that help to expand a competitive business (Figure 2.5).12

Indicators

Descriptive

Tabular

Schematic

Numerical

Figure 2.5 Quality indicators. (Source: Titu, M., A., Vlad, A., I., (2014), „Quality Indicators in Reference to the Evaluation of the Quality Management of Services in Local Public Administration”, Procedia Economics and Finance nr. 16, pp. 131–140) 12

Titu, M., A., Vlad, A., I., (2014), „Quality Indicators in Reference to the Evaluation of the Quality Management of Services in Local Public Administration”, Procedia Economics and Finance nr. 16, pp. 131–140

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For an optimal qualitative research, based on the evaluation procedures of service providers, Titu and Vlad (2014) proposed a set of indicators according to the quality standards, the indicators being divided into categories and subcategories, as visible in the figure below (Figure 2.6):

The quality of services provided by service providers to consumers

The quality management of the provided services by reducing the requests response time

The concordance between the objectives of the service providers and the quality of the provided services

Quality indicators

The level of professionalism of collaborations with consumers other suppliers from other fields

The quality of the collaborations between the departments of the service providers

Figure 2.6 The structure of the indicators established in the quality assessment. (Source: Titu, M., A., Vlad, A., I., (2014), „Quality Indicators in Reference to the Evaluation of the Quality Management of Services in Local Public Administration”, Procedia Economics and Finance nr. 16, pp. 131–140)

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The set of indicators from figure 1.6. is structured in 5 categories: 1. The quality of services provided by service providers to consumers; 2. Professionalism in collaborations with consumers—other suppliers in other fields; 3. The quality of the collaborations between the departments of the service providers; 4. The concordance between the objectives of the companies and the quality of the provided services; 5. Management of the provided quality of services by reducing the requests response time. The indicators for evaluating the quality that consumers benefit from can be the degree of professionalism of the collaborations, of the employees of the service providers, the degree of professionalism used in the offered services. Also, the level of access to the necessary information about various services, the reduction of response time to requests of any kind, the level of technology innovation, guidance of consumers through electronic resources and communication, the level of efficiency of the site or the online platform. The quality approach is relevant to consumer preferences. The least analyzed aspects are those that refer to the psychical factors, the evolution of quality over time and price. It is important to assess whether the evolution of quality over time is an element that represents a natural process or not, being only a process that can be quantified from a scientific point of view. Another rather important feature that has caused a lot of confusion in terms of quality is “the lack of ability to distinguish between quality itself and the possibilities to measure it, as well as the measurements themselves” (Onete, 2006). Quality can be measured entirely theoretically, on hypothetical grounds that can be very useful in its estimation. It is an inherent aspect of the products and services themselves, whether they can be measured or not. Quality is a function of the physical characteristics of a product, and of the mental aspects when it comes to a service, without excluding the product. Quality does not have a formula that can be applied to any product. In reality, existing formulas cannot be fully defined. Economically, quality is not a measure by which a value can be measured. It is a relative concept, in the sense that one cannot accurately assess the quality of a single product, but rather one can possibly compare the quality of two or more products of the same kind. At the same time, an absolute change in quality cannot be expected when the degree of quality of the same product is compared at different dates over time, referring to a base period. It is difficult

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to predict whether or not the products and services are of good quality, or what their quality is.13 In the sharing economy it is very difficult to establish only a set of quality assessment indicators because it covers many areas including services and more. General quality assessment indicators can be: 1. Input indicators—number of available products, number of available services, number of suppliers, number of manufacturers, number of product attributes, degree of transparency, degree of interaction between suppliers and consumers; 2. Quality improvement indicators—number of customer feedback, number of marketing campaigns, number of defective product notifications, number of employee feedback, innovation, implementation of processes and strategies; 3. Integration indicators—number of tasks, manufacturing process technology, loyalty strategies, consumer reaction; 4. Impact indicators—the degree of customer satisfaction in relation to the obtained products and services, the quantity and quality of products and services, the waiting time; 5. Output indicators—promotion by consumers, word of mouth, consumer satisfaction, supplier satisfaction, producer satisfaction, the use of products and services, number of complaints. Quality assessment indicators may differ depending on the field of activity and other circumstances. Therefore, only a few areas will be covered in this paper. Parasuraman, Zeithaml and Berry (1988) explained that “the quality of a service” is a function of the differences between customers’ expectations of the available services and their understanding of the actual provide services. To determine the quality of services, Parasuraman, Zeithaml and Berry (1985) suggested a 10-dimensional tool for measuring the level of quality: receptivity, tangibility, communication, credibility, trust, customer understanding, kindness, security, accessibility and competence. Then, Parasuraman et al. (1988) omitted the last seven dimensions and added two new dimensions known as empathy and security. This tool, called SERVQUAL, is a widely used device for measuring the quality of services. Due to the fact that numerous studies have shown that the quality of services plays a key role in the selection of products and services by consumers. Previous research regarding the quality of services of companies 13

Onete, B., C., (2006), „Noi dimensni în calitate“. Amfiteatru Economic, vol. 8, no. 20/2006. ISSN: 1582–914

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around the world has shown that most companies have applied SERVQUAL. It was concluded that “tangibility” is the most prominent aspect of service quality, which includes cleanliness and comfort of the spaces, food, entertainment and appearance of the product or place, differing by field. Moreover, Gilbert and Wong (2003) found that consumers of different ethnicities or nationalities have a variety of expectations. Moreover, they found that availability and receptivity, are respectively, the fewest and the most significant elements. The availability or provision of services of the highest possible quality (24/7), is the most important indicator of the quality of services in general. Other indicators may be “safety”, “timeliness” and “the variety and types of products or services” which are of high importance in terms of service quality factors. In addition, “responsiveness” and “tangibility” were identified as the most important indicators of service quality. Airbnb, the big giant that participated in the emergence and development of the sharing economy, operates mainly in the field of tourism. Airbnb is increasingly important in the hospitality industry, the quality indicators of the company’s services are reflected in the hospitality and tourism literature. For example, Airbnb runs a website and a mobile app where hosts can enter their spaces in part or in full, as rental properties, and guests can post reviews to share their stay experiences. An online review of the customer experience is essential for the Airbnb business, along with price, facilities and authenticity, as indicators of service quality are associated with the online platform, such as site design and usability. Guttentag (2016) also assesses Airbnb performance expectations in relation to hotels that use service quality indicators such as cleanliness, security, authenticity, uniqueness and price. In addition, Wang and Nicolau (2017) adopt service quality indicators in five areas, such as the host and property website, facilities and services, rental rules, and online review score, to examine the determinants of Airbnb pricing. Getty and Getty (2003) developed the Accommodation Quality Index—LQI, to measure the five dimensions of service quality in the accommodation industry: tangibility, trust, receptivity, confidence and communication. The Airbnb business model is based on using an online platform to connect hosts and tourists and make a profit by collecting service charges from guests. Thus, the Airbnb site acts as a key service platform on which the attributes of service quality are consumed and evaluated simultaneously by the guests. In the Airbnb stay process, guests are involved in at least three experiential components: the Airbnb website, or the mobile app, the host, and the hosting facility. For example, guests must visit and browse the Airbnb site to determine accommodation options and pay for accommodation. Many site-related services, such

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as interface design, security, ease of use, and responsiveness, would be the quality indicators of the Airbnb site. The host plays an important role in interacting with guests during their Airbnb stay, through check-in and check-out processes, and through problem solving. The accommodation structure offered by the host is considered a key dimension of the quality of services within Airbnb, as the main product for an overnight stay. A systematic review of the literature was conducted to identify potential indicators of hight service quality in the context of the sharing economy and the peer-to-peer online marketplace. Several indicators related to the quality of services, such as the degree of friendship, photos taken by hosts with the accommodation, understanding and care of the hosts and their hospitable behaviour, are associated with the host. A set of indicators regarding the quality of services, including the condition of the facility, accommodation experience and tangibility are associated with the accommodation. Several indicators of service quality, such as informational quality, trust in the intermediary, platform and transaction experience are associated with the site or platform (Figure 2.7).

Prob

Trust

Availability

Comfort

Price Accommod

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Uniqueness

Usa

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ice f

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ty

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Ch

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Figure 2.7 Quality indicators for peer-to-peer accommodation services. (Source: Author)

Regarding the peer-to-peer transportation services, the indicators in the model below can be taken into account (Figure 2.8):

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Trust

Availability

Comfort

Price Number of ra

ds Payment metho

Recepti

vity

tings

Uniqueness

Rou

te

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Figure 2.8 Quality indicators for peer-to-peer transportation services. (Source: Author)

In the context of e-commerce and the online platforms, the dimensionality of the quality of services is essentially distinguished from that of offline frameworks. Several researchers have elaborated service quality models in the context of web interfaces or online service platforms. Yoo and Donthu (2001) developed SITEQUAL to measure consumers perception of several indicators of the quality of online services, such as competitive value, order clarity, corporate and brand capital, product uniqueness, product quality assurance, ease of use of the site, aesthetic design, processing speed and information security.

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Similarly, Loiacono, Watson and Goodhue (2002) developed WebQual to measure the quality of services for the website, such as appropriate attribution information, adaptive communications, trust, response time, ease of understanding, intuitive operations, visual appeal, innovation, emotional appeal, clear images, online completeness and relative advantage. In their study of e-commerce, Parasuraman et al. (2005) developed E-S-SUQL to measure the quality of four-dimensional electronic services, such as efficiency, performance, system availability and confidentiality, and E-RecS-QUAL to measure three dimensions, such as receptivity, compensation and contact. Many researchers have tried to conceptualize the quality of services as a subjective perception of customers and to identify the key factors that determine what is considered a good service. Identifying key indicators of the quality of services is substantial because customers have particular quality standards, and their absence negatively affects consumer perception. Correct recognition of the key attributes of the quality of services that clients value the most is decisive towards increasing the quality level. Parasuraman et al. (1985) found five indicators of the quality of services, namely: tangibility, trust, responsiveness, security and empathy. Performance is an important factor when measuring the quality of a service. There are five indicators, such as friendliness, tangibility, safety, avoidance of sarcasm, and empathy.

2.1.5

Other Aspects of Quality

It is clear that customers and suppliers sometimes differ in how they define quality. For most customers, quality means the characteristics of the product that meet their needs, including the elimination of the malfunctions of that product, plus a good maintenance service in case of errors. Instead, many suppliers have defined quality for years as being in accordance with the specifications when testing the final product. This definition does not take into account many factors that influence quality as defined by customers: packaging, storage, transportation, installation, reliability, maintenance, customer service and so on. The following table shows some of the differences in views applied to long shelf life goods (Table 2.1).

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Table 2.1 Perceptions of quality ASPECTS

CONSUMERS

PROVIDERS

What is bought

A necessary customer service

Goods produced by the manufacturer

Definition of quality

Prolonged use of the product

According to the specifications of the final test

Cost

The cost of use includes: • Buying price; • Operating costs; • Maintenance; • Non-functionality; • Depreciation; • Loss on resale.

Production cost

Responsibility for product repair in service

Throughout the life of the product

During the warranty period

Spare parts

A necessary bad thing

A profitable business

Source: Calfa, J., (2011), “What is Quality?” OnQuality, http://www.onquality.info/2011/10/ what-is-quality-part-22.html/

It may be true that customers decide if they have achieved quality results, but in the practical world of business, quality must be incorporated into the products and services offered so that customers can experience it. In the business world, quality is really what the supplier offers. It is always the designer who sets the quality and the manufacturer who infuses the quality or not. Quality design engineers and the manufacturers build quality in a product. A customer can only experience the effects of previous choices and actions regarding quality. Customers can appreciate quality through their perceptions, but customer feedback is not what quality is. Customer satisfaction is the next effect of quality. Because customers cannot clearly specify measurable technical values, which makes them satisfied, quality improvement becomes an iterative process of trying, testing, and feedback with regards to performance when used by the customer. Over the years, businesses have had to find a way to define and measure quality so that companies can make products and provide services at defining performance standards that their customers will experience and accept or reject. The quality level can be measured by the specified specifications, if the product meets the established performance requirements. Quality is measured at the beginning of the product’s life by the percentage of acceptance regarding the specifications that expire or deteriorate over time. The effectiveness of quality is

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observed by the number of rejections from customers. The quality characteristics of a product or service are known as quality determinants. These are the attributes that customers are looking for in order to decide if it’s a high quality product or service.

2.1.6

Models of Quality of Services from a Consumer Perspective

All quality standards are useful, as each contains elements of what quality means to users of products and services. However, in order to incorporate quality into a product or service, there must be a set of measurable performance standards that, when achieved, will guarantee the desired level of quality. Reliability is the probability that an item will work properly when needed, for the required period, in the specified environment. A complete definition of reliability is “chance of success.” Reliability comes from meeting the quality standards. This means that the quality level produces equivalent reliability. In a manufactured product, reliability comes from its inherent design, building materials, manufacturing accuracy, and operating received voltages when used in operation. Quality is valuable when it exists, it brings success to both the customer and the manufacturer or supplier. An effective model that assesses the total number of purchases and the total consumption experience of a market is the ACSI model. This model represents the degree of consumer satisfaction, reporting relevant valuable information. The ACSI model was designed for the entire economy of a country. This indicator was designed to measure the relationship between the antecedents and the consequences of satisfaction, to highlight the link between cause and effect (Figure 2.9).14

14

Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). “The American Customer Satisfaction Index: Nature, Purpose, and Findings”. Journal of Marketing, 60, pp. 7–18.

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Perceived quality

Complaints

Perceived value

Expectations

Satisfaction

Loyalty

Figure 2.9 American Customer Satisfaction Index. (Source: Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). “The American Customer Satisfaction Index: Nature, Purpose, and Findings”. Journal of Marketing, 60, pp. 7–18)

The ACSI model covers the following: • The first aspect of consumer satisfaction is the perceived performance or quality. It represents the “consumer’s reasoning for the superiority or total perfection of a product” (Zeithaml, 1988) and it is necessary for it to have a positive and direct effect on the degree of consumer satisfaction. In 1996, the ACSI model was developed, with two types of perceived quality: product quality and service quality. Regarding the quality of services, it is confirmed that this is a strategic means to achieve performance and efficiency, taking into account the fact that the benefits perceived by customers return to suppliers. Quality is an abstract concept, it is interpreted differently by each consumer; therefore it is difficult to measure it. Quality is of fundamental importance because it “defines the standard of living and competitiveness established at the national level” (Anderson & Fornell, 2000); • The second aspect is the value perceived by the consumer or the level of perception regarding the quality related to the price paid. It incorporates data about the price of the service in the model and causes the increase of the degree of comparison of the results between companies, institutions, organizations, sectors (Zeithaml, 1988); • The third aspect is the market requirements which include both the previous consumer experience of the market served by the provider—including data

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provided by different sources, such as advertising or “word of mouth”—and the assessment of the service provider’s ability to provide quality in the future. Understanding the characteristics of the quality of services and investigating their effects on customers’ intention to continue utilizing services is vital for researchers and practitioners. Despite the existing literature, which has acknowledged the tremedous role of the quality of services in varied fields of research, the majority have handled quality as a common construction when it comes to services, a small amount of research has examined the specific characteristics of the quality of services and their influences on further user intent. The interaction between a customer and a service provider during the service delivery process plays a key role in determining the level of quality and customer satisfaction. The quality of the interaction with regards to a service will affect the perceived trust and empathy, and security towards the service provider, and is therefore critical for assessing the quality of services. Some studies argue that the quality of interaction must be measured on the basis of various sub-dimensions, including attitude, behaviour, expertise, problem solving and information. Gronroos (1990) points out that a service-oriented organization needs to properly manage the interdependencies between its departments/ functions in order to ensure the favorable attitudes and professional skills of employees regarding services, who in turn help to provide good customer service. When customers have questions about the requested services, the attitude, expertise, and behaviour of the service providers will affect consumers’ assessments of their interactions with the providers and should be included as a sub-dimension of the quality of the exchange. Concerning the work of Brady and Robertson (2001), the model comprises the sub-dimensions of expertise, attitude, problem solving and information as the essential sub-dimensions of the quality of the interaction, while excluding the initial sub-dimension of behavior proposed by Brady and Robertson (2001). Previous studies consider problem solving as an important factor in measuring the quality of interaction. In the digital age, IT-enabled virtual environments and various smart intermediaries can be interesting substitutes for physical environments and service representatives and thus have significant influences on the perception of the overall quality of services. Kano (1984) proposed a two-way quality model to elucidate the association between the function of a product or service and consumer satisfaction. According to figure 1.10, the x-axis represents the quantity of quality elements, as a functional presence and dysfunctional absence, and the y-axis indicates customer

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satisfaction. For the figure below, the quality categories are divided into five distinct categories, all of which are explained below. (1) Attractive quality attributes (A): If these characteristics exist, consumers are satisfied, while if these features are missing, they are not satisfied. (2) One-dimensional quality attributes (O): Consumers will be satisfied when the attributes are met, and if they are not met, they will be dissatisfied. (3) Mandatory quality attributes (M): characteristics that will not lead to more satisfaction, but consumers will be dissatisfied when they are missing. (4) Attributes of indifferent quality (I): regardless of whether these characteristics are missing or exist, they will not have an effect regarding satisfaction. (5) Inverse quality attributes (R): If these characteristics are met, consumers will be dissatisfied and if they are not met, it will lead to consumer satisfaction (Figure 2.10).

Delight (satisfaction) One-dimensional Attractiveness

Dysfunctional absence

Indifference

Functional presence

Must be

Reverse

Disgust (dissatisfaction)

Figure 2.10 Original Kano model. (Source: Kano, N., (1984), “Attractive quality and mustbe quality”. Hinshitsu (Quality, The Journal of Japanese Society for Quality Control) 14, pp. 39–48)

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Kano (1984) presented a functional and dysfunctional questionnaire. The functional question encapsulates consumers’ feelings when quality attributes are provided by a product or service, while the dysfunctional question works when quality attributes are not provided. In any case, customer responses are recorded on a scale of one to five. The quality elements of products/ services are classified into five categories mentioned by Kano (Figure 2.11). Satisfaction

Delight

di+ Sj 0 Pj

Disgust

1

Performance

dj-

Figure 2.11 Conversion of the quality of services regarding performance attributes. (Source: Tahanisaz, S., Shokuhyar, S., (2020), “Evaluation of passenger satisfaction with service quality: A consecutive method applied to the airline industry”, Journal of Air Transport Management 83 (2020) 101764)

Martilla and James (1977) introduced a technique that highlights the attributes of a product or service, by which a company can gain consumer satisfaction or cause significant losses. A two-dimensional matrix is represented where the horizontal axis represents the degree of performance, and the vertical axis shows the degree of importance. Four distinct strategies for managing consumer satisfaction are derived from the matrix presented in figure 1.12 (Figure 2.12).

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Importance

Quadrant 2 “Point of concentration”

Quadrant 1 “Keep up the good work!”

Performance Quadrant 3 “Low priority”

Quadrant 4 “Possible overload”

Figure 2.12 Importance—performance relationship. (Source: Tahanisaz, S., Shokuhyar, S., (2020), “Evaluation of passenger satisfaction with service quality: A consecutive method applied to the airline industry”, Journal of Air Transport Management 83 (2020) 101764)

The attributes in Quadrant I. They are in a high area for both satisfaction and importance, and are representatives of the opportunity for competitive advantage. The attributes in Quadrant II. They are in an area of low satisfaction but of high importance and are representatives of the points that need concentration and, if ignored, there is a great threat. The attributes in Quadrant III. They are located in an area that is insignificant in terms of both satisfaction and importance and is representative of the points that do not need to be allocated additional efforts. The attributes in Quadrant IV. They are in a significant area in terms of low satisfaction and importance and are representatives of the “low priority” attributes. The resources allocated to these attributes may be more efficient if they are used in other attributes.

2.2 The Product as a Service Concept

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The Product as a Service Concept

The “product-as-a-service (PaaS)” is a business model that allows customers to purchase the desired result rather than the equipment that provides that result. This model offers benefits to both the customer and the supplier. A PaaS relationship usually involves agreements between three entities: the customer, who purchases the service; the manufacturer, who delivers the product and associated services; and the provider of the PaaS platform, which manages the infrastructure, including the data collection, transmission, storage, security and analysis (Figure 2.13).15

Customer Product/ service manufacturer/ provider

PaaS platform provider

Figure 2.13 PaaS partnership. (Source: Lombardo, T., (2019), “Moving from Product to Product-as-a-Service.” https://www.engineering.com/IOT/ArticleID/18205/Movingfrom-Product-to-Product-as-a-Service.aspx)

PaaS offers benefits to both customers and manufacturers. For customers, PaaS converts large capital expenditures into lower operating expenses, allowing them to amortize the cost of the product throughout its life cycle. In addition, the customer no longer assumes the risk of product failure or maintenance liability, as both are usually included in the service. Moreover, PaaS can help a customer optimize their own use of a product. Finally, PaaS ensures that the customer will not be blocked by outdated and used equipment, as the service includes updates. This is already true in the smartphone industry where users subscribe to a mobile plan that includes annual updates to the latest and greatest phone, the cost of which is included in their monthly charges. PaaS provides the manufacturer with a consistent revenue stream, making it a more sustainable business model. It also allows to be seen how the product can be used in the field, which could provide information about reliability, design, 15

Lombardo, T., (2019), “Moving from Product to Product-as-a-Service.” https://www.eng ineering.com/IOT/ArticleID/18205/Moving-from-Product-to-Product-as-a-Service.aspx

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and potential feature enhancements. Manufacturers can use data analysis to find ways to improve customer value, which ultimately provides additional revenue for both the customer and the manufacturer. Before creating a product as a service or even transforming an existing product to the PaaS model, manufacturers need to examine consumer needs and appreciate what additional features they are willing to purchase. Attention must be focused to the value that the service is giving above and beyond the product itself.16

2.2.1

“The Product as a Service” and Its Advantages

“The product as a service” is the notion of selling the services and just the results that a product can offer, not the product itself. The term is a form of the phrase “as-a-service” that has increased with the universality of cloud computing—such as software as a service (SaaS)—which is utilized on a subscription basis. With the appearance of the Internet, “the product as a service” has caused rising interest from manufacturers as a way to grow the profitability of their products, perfect customer engagement and initiate new business lines. In its purest approach, the manufacturer continues to have and preserve the product, and the client rents it for utilization or subscribes to a service menu. In other scenarios, the consumer owns the product but is not responsible for maintenance, or such responsibilities are shared under the license or warranty agreement. In all cases, the manufacturer utilizes the product as a platform to offer additional services to the client. The larger ownership of “the product as a service” has been enabled by IoT (Internet of Things), data analytics, sensor technology, cloud computing and personal mobile devices. Related tools such as asset performance management, field service management and enterprise asset software management are taken into account for product management and service. The product as a service business model offers vast variations of the type of value delivered to the consumer. For example, a subscription may guarantee certain outcomes, such as hours of operation or delivered units. It can indicate the maintenance and fix services that the manufacturer will offer. Other services have little less to do with the product itself and more with how the gained data can help the consumer in their business or personal life. The client may also be exempted of the responsibilities of owning the product, such as the hardship of maintenance or the possibility of losing the financial investment. 16

Lombardo, T., (2019), “Moving from Product to Product-as-a-Service.” https://www.eng ineering.com/IOT/ArticleID/18205/Moving-from-Product-to-Product-as-a-Service.aspx

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But these advantages usually take place with a premium subscription. Promoters of “the product as a service” notion say that it can better customer satisfaction, while stimulating a manufacturer’s revenue streams with recurring monthly revenue, which makes cash flow more substantial and predictable. The ongoing agreement to connect to services and the internet can also help manufacturers by forming a more “intimate” relationship, which often will be prolonged than if the product is bought directly. “The product as a service” has also been acknowledged as a potential revenue stream, as the need for maintenance extends throughout the life cycle of a product, generating revenue that can exceed the revenue from the sale of the product. The profit margin of the service is many times higher than that of product sales. Rolls-Royce and Pratt & Whitney were among the pioneers that implemented the product as a service, taxing per hour for charging energy to their jet engines. Rolls-Royce began providing this type of service in the 1960’s and has since been called “Power-by-the-Hour”, although the phrase is also utilized generically in the aerospace industry. Printers, for example, have long been rented out, with consumers paying for a service contract. Manufacturers such as HP, Xerox and Lexmark have recently expanded their service offers—even for some of their consumer printers. These printers are connected to WiFi internet, notifying when the ink cartridges are low and need to be replaced, being shipped immediately. There are suppliers of agricultural equipment, such as John Deere, who equip their equipment with sensors to collect remote data about soil and weather conditions, and who execute analyzes to help farmers better their crop yields. However, some of the equipment owners did not agree with the manufacturer’s strict control over after-sales services and advocated for legislation that gives them the “right to repair products” individually, and that allows them to work alone.17 As technology spreads its wings to newer horizons, industries have recently had a tendency to move their core offerings from products to services. In an age where time is becoming an increasingly scarce resource, people are looking for more efficiency to achieve the impossible in the short amount of time they have. In this respect, the exposure of the population to technological shortcuts has been very impatient, as now they are all at hand in the shortest time. As such, companies have had to adapt to the changing behavior of new consumers, giving rise to the “product as a service” model. It is the latest business model. Instead of making a single sale, manufacturers find ways to “service” their products. Servicing is about selling solutions and results to customers, rather than tangible products. 17

Rouse, M., (2018), „Product as a service. TechTarget.“ https://searcherp.techtarget.com/ definition/product-as-a-service

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Instead of just providing the means to meet the needs of the user, manufacturers now deliver the real value of that tangible object. Customer expectations for productivity are growing faster than ever. As aesthetics and functionality are no longer enough, the challenge is to provide effective and personalized solutions to the target audience. The Internet of Things refers to any object connected to the Internet, as well as other devices that use built-in sensors. These can range from smart home devices such as thermostats, voice assistants etc., smart cuffs, such as fitness trackers, smart watches etc., driverless vehicles, to smart cities. What demonstrates performance is their ability to collect and communicate usage data to other objects or systems they are affiliated with. Access to this data provides much greater insights into the use of the product, the purpose of its use, and especially the performance data. Informed as such, manufacturers can optimize and adapt their offer on a case-by-case basis, based on the data of their users. Therefore, the sensor and connectivity industry has presented a number of untapped opportunities to extract added value from commodities. A concrete example of these IoT-led services is the Total Care Rolls Royce Program in the manufacture of aircraft engines. In the late 1990s, the Total Care Program maximized efficiency outside the aircraft operations, and reduced the risk for an expensive purchase for the customer. In practice, Rolls Royce charges airlines in Power-bythe-Hour mode, while continuously monitoring engines. Customers then had the opportunity to enjoy flight privileges at hourly rates, using machines owned by Rolls Royce. To do this, Rolls Royce had many IoT sensors that collected data about the “health” values of the aircraft’s efficiency. Analyzing them allowed the manufacturer to proactively maintain the borrowed equipment, predicting possible failures, adjusting user performance and hoping to extend its life cycle. This IoTdriven service also maintained a stronger alignment in the thinking of customers and suppliers. Having previously earned from single sales and after-sales maintenance, it was in Rolls Royce’s best interest for the product to fail prematurely. However, by turning its products into permanent services, it was forced to sustain a valuable long-term experience in order for the customer to remain loyal to the company. This service focuses on lending aircraft for flight privileges, while suppliers strive to make their aircraft sustainable, reliable and profitable through predictive IoT maintenance. This leads to higher product quality and automatically a higher degree of sustainability. The secret recipes behind the companies offering “products as services” were not accidental, but planned to be beneficial for both parties, customers and manufacturers.18 18

Aubertin, C., (2019), „From Product to Product-as-a-Service.“ TheStartup. https://med ium.com/swlh/from-product-to-product-as-a-service-37baed471cd6

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In order for manufacturers to shape their entire business model, the profit must be significant. The advantages of switching from products to services are as follows: • Better customization—customer retention is significantly based on the service provided, manufacturers have incentives to optimize the customer experience. The rise of IoT allows them to analyze a lot of customers and their product usage behavior. Therefore, this will create newer and more personalized experiences, which should increase customer satisfaction. • Recurring revenue—this will replace the single revenue, with manufacturers earning recurring revenue over the life of the product. These revenues are divided into smaller amounts over longer periods of time. The service industry is still considered to be 75% more profitable than any other business unit. Rolls Royce has reported a 40% increase in service-based revenue in the last six years alone. • Long-term customer relationships—this model facilitates alignment of perception and long-term collaboration between customers and manufacturers. Suppliers also strive to avoid product failure, thus maximizing added value for both parties. About three-quarters of managers saw servitization as a means of establishing closer relationships with customers. As consumers pay continuously for the services they receive, there is a much stronger reason for manufacturers to have a closer relationship with end-users. They want to win the loyal customers, thus opening up new business opportunities. Although this seems to be only to the advantage of the manufacturer, the “product as a service” creates a win-win situation in which customers will benefit just as much. • Higher quality of the product/ service—with the maximum interest in gaining the loyalty of the public, manufacturers and suppliers offer longer lasting and better products. They are now exposing their customers to better service quality. Moreover, customers can only be more satisfied with the efforts of companies to customize their products through their data-driven analysis. • Perfect experiences—technology has already accustomed consumers to instant gratification, no doubt becoming more capricious. Everything is extremely affordable, efficient and low cost. In order to stay afloat, manufacturers are constantly pressured to make these experiences effortless and worthy. Apart from its ingenious idea of sharing rides, Uber’s advantage is the experience that customers do not have to take out their wallet to pay for transportation, which makes it seem like a free service, payment is automatically made online through the application.

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• Cost efficiency and predictability—on-demand services are usually much more cost-effective. There are no additional costs associated with owning an asset, as payment models allow you to pay strictly for what is consumed. As such, Philips charged Schiphol Airport strictly for the lighting consumed by the bulbs, just as Uber passengers will be charged the appropriate amounts during their ride. Servicing translates into a holistic shift: from product manufacturers to service providers, from tangible objects to smart devices, from single purchases to demand-based plans, and so on. Increasing their expectations along with the evolution of technology, customers now want their purchases to be worth their time and money. Businesses then use their models to minimize customer effort, while revealing added value at a profitable cost. In our age of digital transformation, businesses are offering better, personalized, and longer-lasting deals to regain their competitive advantage.19

2.2.2

The Degree of Sustainability of the “Product as a Service”

There has been a growing interest and concern for corporate governance in terms of sustainability. The organisations’ activities have a strong influence on the environment and should therefore be responsible for a wide audience, not just for its shareholders. Large companies recognize the need to readjust to a new social atmosphere of community responsibility. The tendencies of the companies regarding the financial results have diminished, not only the instruments of the shareholders that also exist within the company and implicitly they have responsibilities towards the company, resulting in a change towards a greater responsibility of the companies regarding all participants. This concern refers to the effects of the actions of an organization on the external environment, and is the recognition of the fact that not only their owners have concerns about the actions of that organization. There are a variety of stakeholders who are concerned about these actions and are influenced by them. Stakeholders are not only alarmed with the company’s activities, but also with a measure of influence on the scope of these activities. This impact is so considerable and it could be argued that the influence and power of these stakeholders depends on the quasiownership of the organization. There is a necessary social agreement between an 19

Aubertin, C., (2019), „From Product to Product-as-a-Service.“ TheStartup. https://med ium.com/swlh/from-product-to-product-as-a-service-37baed471cd6

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organization and its stakeholders. The importance of this contract is the concern for the future which has become evident through the term sustainability. The term sustainability has become ubiquitous in both the discussion of globalization and the discussion of corporate performance. Sustainability is a controversial topic and there are a lot of definitions about it. In general, sustainability is alarmed by the consequences of the current actions among the options we have in the future. If all resources are currently in use, subsequently they will no longer be available, and this is a concern in terms of the quantity of finite resources. Extractive raw materials, such as oil, coal and iron, are quantitatively finite and, once used, are no longer available for the future. At some point in the future, alternatives will be needed to fulfill the current functions of these resources. An immediate concern is the increased cost of acquiring the remaining resources as they are consumed and therefore the operating costs of the organizations will increase. Stead (2004) considers that corporations play a huge role in environmental sustainability solutions. First of all, organizations are the main drivers of economic growth. Second, they have technological knowledge, financial resources and institutional capacity to implement solutions. Third, the environmental sustainability examination at the organizational level of analysis is appropriate for the scale of the existing problems and needs further examination. But organizations are just an aspect of sustainability. Consumers and governments need to be prepared and willing to participate. Empathy and identification with the inter-relationships and interdependencies between all beings on Earth is the key to success and the natural way of being, identifying with life itself as a central goal. In adopting this way of being, it is beneficial that the future impact of corporations on the environment is positive and, if not, positive, neutral. This principle is available locally, nationally, internationally, globally and is required to be adopted by all corporations in a given network—manufacturers, suppliers, traders, distributors and all stakeholders in order for it to operate at its optimum parameters. The current way of people’s life and the “quality of life” are clearly threatened, but despite these reminders, there are many business opportunities waiting to be taken over by organizations that want to be true leaders in identifying and managing new products, services, ideas and new values, cultures and consumer behaviors. Winners in the innovative business world will change and replace players who have rejected the changes needed to adapt to the new business model or natural way of being; a way that actually has the potential to raise people’s living standards instead of lowering them. More and more companies have subsumed the ethics and social responsibility of literature in terms of sustainability and environmental issues. Several authors have begun to discover and recognize the main significance of the environment in maintaining all human activities and,

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Conceptual Elements in the Sharing Economy

in particular, business as an important and separate field. Undoubtedly, the corporate agendas of the private sector now abound in sustainability and climate change priorities, projects and practices as organizations begin to recognize more openly their dependence on the Earth’s surface and atmosphere. Technology continues to shape the way we think and even the way we live. An important impact has been the shift from classic transportation to “service transportation” and how Uber has revolutionized mobility. People nowadays only care about getting from point A to point B, how this transport is done doesn’t matter as much. Car manufacturers have somehow become providers of mobility, and again, the focus is shifting to the outcome itself: reaching point B. The “mobility-as-a-service” model has given rise to a new economy: the sharing economy. Instead of addressing professionals, the Uber phenomenon allows anyone to be a supplier and a customer. On the one hand, owners of cars can benefit from the online platform by serving the passengers. On the other hand, the increased willingness to travel safely anywhere makes mobility effortless. This phenomenon raises the question of whether owning a car is still useful. Young generations are no longer attracted to owning a car, although it may seem cheaper, more convenient and more necessary to buy a car without taking into account maintenance costs, depreciation, how much money is lost every time the car is parked in the garage. On-demand mobility services are more sustainable, forcing companies to produce higher quality products for longer-term use. The pay-to-go model has now been labeled as affordable, flexible and convenient. Uber has introduced the ability to get anywhere, anytime. These advanced technologies offer a lot of flexibility in the range of differentiation opportunities. From IoT technologies to Uber, anything can become a service. Another noteworthy example is Philips’ initiative to serve LED lamps with its “lightingas-a-service” offer, commonly used on large properties. As effective as they are, these lamps remain significantly more expensive. As such, Amsterdam Schiphol Airport has been using this service since 2015. It constantly pays for the energy consumed to light up the airport, at no additional cost. The supplier, Philips, owns the lamps and is responsible for their maintenance.20 In the Brundtland Report, sustainability is defined as the ability to continue a predefined behavior for an unlimited period of time. Environmental sustainability is the power to keep the amounts of renewable resources in balance and the depletion of non-renewable resources so that they can be used indefinitely. Economic sustainability is the ability to set a definite level of economic output for 20

Aubertin, C., (2019), „From Product to Product-as-a-Service.“ TheStartup. https://med ium.com/swlh/from-product-to-product-as-a-service-37baed471cd6

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an unlimited period of time. Social sustainability is the ability of a social system to function at a defined level of social welfare for an unlimited period of time. Sustainable development is “progress that meets the needs of present generations, without undermining the ability of future generations to meet their own.”21 Kotler (2012) defines social responsibility as “meeting the current needs of consumers and businesses, while maintaining and developing the ability of future generations to meet their own needs.” This attitude is part of spirituality, by caring for others. More and more companies have included separate corporate social responsibility departments by involving employees in programs and projects related to volunteering and humanitarian causes for disadvantaged communities. Viewing a group as a component of a larger economic and social system means that these actions must be taken seriously, not just for the value and costs already created, but also for the future of the business. Such concerns are relevant at the macro level of society as a whole or at the state level as a nation, but are equally important at the micro level of a business. At this level, sustainability measures would take into account the rate at which resources are consumed by suppliers relative to the rate at which they can be regenerated. Unsustainable actions can be readjusted either by improving sustainable operations or by planning for less resource consumption in the future. In practice, groups and organizations are largely inclined to choose sustainability by increasing productivity in the way resources are used. An example might be the energy efficiency programs. As the human impact on nature has increased, so has the attempt to minimize the damage done.

2.2.3

Consumer Perception of the “Product as a Service”

Property rights allow for the formation of a special relationship between a person and a possession, which is often the norm in the contemporary Western societies. These rights confer freedom, responsibility and control, which allows for clear boundaries between oneself and others. Materialism is a permanent characteristic that represents the values of an individual—that is, materialism is never absent, but rather, present in the form of a high or low materialism that characterizes individuals. Conversely, possessions and/ or consumer experiences, private or public/ shared, may have symbolic or social value to certain individuals. A non-materialistic individual may perceive 21

Brundland Commission, (1987), „Our Common Future: Report of the World Commission on Environment and Development“, Oxford University Press.

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Conceptual Elements in the Sharing Economy

symbolic or social value in situations such as holidays, birthdays where gifts are offered, or special contexts of interest. Therefore, symbolic or social value can also be based on intangible meanings, as can be seen today in ethical, responsible and sustainable consumption. However, a materialistic individual may be determined to look for those symbolic or social characteristics of possessions and/ or consumer experiences that reflect those materialistic values. From a marketing and retail perspective, consumers’ spending patterns often correlate with their personal values. In the recent years, consumers have increased their spending, especially on luxury goods, to suit their lifestyle and socio-economic needs, which suggests greater absorption and importance of materialistic values. This consumer trend is also reflected in academia, where there is a growing interest in publishing research on consumer and consumer behaviour. Materialism is a complex construct that has been defined in many ways. Belk (1985) defined materialism as a manifestation of personality traits in the form of acquisition and possessiveness. He argued that materialism, as a concept that reflects the importance that consumers attach to goods and the central role that these goods play, especially as sources of satisfaction or dissatisfaction in life. Other academics, have relied on this reason to develop their own interpretations of materialism, such as considering materialism as personal values that sum up happiness, success, and centrality. At present, there are many doubts about the acceptance by consumers of systems that direct them from buying goods to leasing or just using them by providing support networks and infrastructure to meet the needs of consumers, while impose a lower impact on the environment. Consumer decisions can be defined based on the desired attributes of the product, the attributes of use, the way individuals use the product, the sociodemographics of the consumer, social influence and external pressure over time. The digital age is a social force that has created new opportunities, challenges and behaviors in business. It is undeniable that the internet is a powerful channel for information and sales. Companies can collect complete and diverse data on consumers, prospects, markets and competition. The symbiosis between a product and a service creates a sustainable business environment for all parties involved. Although the exchange of products or services between people is an old process, since the beginning of mankind, the reason for the emergence of a sharing model has been detected in the Western countries, due to the declining incomes of the middle class. This has led to lower consumption. People are beginning to realize the cost of ownership

2.2 The Product as a Service Concept

47

and sub-optimal use of cars, real estate and more. They no longer need the actual products, but their benefits. Among the first uses for collaborative consumption were durable goods, such as cars and apartments. The phenomenon of sharing differs significantly from the classic trading prototypes. Because it involves interactions between strangers and goes beyond a geographically defined community. Technological innovations have simplified the market entry process for suppliers, facilitated consumer search lists, and kept overall total transaction costs low. Temporary access to goods becomes more important than owning those goods. Such business models become attractive opportunities for innovation in a wide range of areas.22 BusinessDictionary defines consumer perception as “the marketing concept that encompasses a customer’s impression, awareness, or consciousness of a company or its offers.”23 The customer collects and interprets information to make a meaningful image of a product or service. This is called customer perception. When a user sees ads, promotions, other customer reviews, social media feedback etc., related to a product or service, the customer develops an impression about it. The whole process of customer perception begins when a consumer sees or receives information about a particular product or service. This process continues until the consumer begins to build an opinion about it. For Belk (2010), the collaborative consumption, possession or holding of goods is common, without a separate term to distinguish the people involved. The product as a service belongs to “transactions that can be mediated in the market, but in which the transfer of ownership does not take place” (Belk, 2010). Notable examples include Zipcar, Uber and AirBnB. Clearly, this type of consumption does not involve the transfer of ownership. However, offers are based on goods that are not shared by members of a group or community, but by consumers simply gaining access to products, such as a car. Consumers extract various types of value from products and services. This brings many benefits to consumers, as they may have access to various goods that they would not normally be able to afford if they were to buy them. Consumers usually choose the product-as-a-service if they perceive the offer as a substitute for ownership. However, the specific costs that are associated with 22

Onete, C., B., Ples, ea, D., Budz, S., (2018), „Sharing Economy: Challenges and Opportunities in Tourism“. Amfiteatru Economic, 20(Nr. Special 12), pp. 998–1015. 23 BusinessDictionary. „Customer perception“. http://www.businessdictionary.com/defini tion/customer-perception.html

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Conceptual Elements in the Sharing Economy

sharing reduce the consumer’s intention to use this type of product. These costs consist of transaction costs and emotional costs related to a perceived storage risk. If the transaction costs are high in terms of search costs, the consumer’s intention to purchase decreases. For example, augmented reality applications, which help consumers find the next shared nearby offer available, can reduce search costs. In the context of cars, automatic body height adjustment and attention to the individual needs after check-in can reduce technical costs. Consumer perception with regards to the “product-as-a-service” refers to the way individuals analyze and make decisions about how to allocate resources, such as money, time, emotional involvement, etc., in order to purchase. Buying behavior plays a key role because it includes reasons to buy or not, customer preferences, buying intentions, buying habits, attitudes, image brands. The intention of consumers to transcend their need for co-ownership to the strict need of consumption is directly related to the consumer perception formed over time as a result of the added information, the multitude of offers and the changing expectations. As the world and perceptions change, marketers may be able to educate consumers on how to evaluate consumption.

2.2.4

Realities and Trends in this Field

Globalization has ushered in an information or conceptual era, which now emphasizes knowledge and experience, making services more important. Moreover, new competitive structures now require more creativity and innovation, especially for mature industries. Products and services have been combined to provide added value, although not necessarily in a way that emphasizes sustainability. In theory, the contribution of the product-as-service to sustainability lies in disconnecting value from material consumption. The concept aims to replace personal property and excessive consumption of materials with alternative use options, offering a mix of tangible products and intangible services, which are more focused on the final desire of the consumer. The product-as-a-service is distinguished by direct and long-term contact with clients, the progress of collaborative networks increased with diverse stakeholders in the supply chain, and low capital intensity. Product-as-a-service design implications may include features such as durability, flexibility, modularity and ease of use. Industries around the world face social challenges, environmental concerns and economic improvement as they focus on increasing their competitive advantage. A product service system is a set of products and services that meets customer requirements while using product service practices. In the manufacturing industry,

2.2 The Product as a Service Concept

49

there is a shift from product-oriented to service-oriented, with “integrated solutions”, “service transition” and “servitization” being an integrated response for consumers with a set of products, services and networks of the interested parties. Also a support infrastructure to meet the needs of customers who have a lower impact on the environment than those of traditional businesses. Environmental impacts of industries include waste generation, water pollution, gas emissions and consumption of natural resources. Consequently, firms need to implement sustainability, especially when planning and designing a product service. An integrative solution offers the advantage of creating added value, because the integration of services improves customer satisfaction and the competitiveness of the supplier market. Product-as-a-service trends would be innovations of services that have the potential to significantly develope resource productivity. Provided in both final and intermediate markets, such innovations are frequently defined as product service systems and comprise examples such as vehicle distribution and sharing, and document handling services. Since the product as a service is commercially appealing, it can generate important environmental benefits. The product as a service is a system of products, services, networks of actors and support infrastructure that is developed to be competitive, to satisfy customers and to be greener than traditional business models. According to Business Insider, the percentage of private cars should fall by 80% by 2030. It has proven to be more satisfactory and profitable, the “anythingas-a-service” model, which could only be the future of production. The present times are leading to innovation, as the boundaries between products and services are blurring, being combined to achieve greater results. At the same time, savings in which collaboration is no longer just a “concern”, but also a way to capitalize on assets, being accepted and encouraged. Finally, cloud technologies are beginning to shape mindsets around trendy and future technologies.24 Innovation has long been thought of as a manufacturer-centered process, based on the assumption that profit-driven incentives are the main drivers of innovation. A manufacturer or a company invests in innovation activities, expecting to generate profits from sales. It is natural that the same manufacturer takes the lead in disseminating its innovations in different market segments, where consumers adopt these innovations. However, this model of manufacturer innovation has been increasingly questioned due to research results showing that users are also a major source of innovation when innovating for use, rather than for sale. User 24

Aubertin, C., (2019), „From Product to Product-as-a-Service.“ TheStartup. https://med ium.com/swlh/from-product-to-product-as-a-service-37baed471cd6

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Conceptual Elements in the Sharing Economy

innovation signifies an activity carried out by users who spend their time in a discretionary and unpaid way, developing innovative solutions to meet their personal needs. These users are also willing to share or offer their innovation as a “free good” that others can use, usually in the form of a set of instructions specifying how to reproduce the unique solution. The term sustainability-oriented innovation refers to solutions that provide “a social structure that can be maintained profitably and indefinitely, without damaging the systems on which it depends” (Newton, 2003). Many sustainability-oriented innovation initiatives are currently aimed at achieving the 17 Sustainable Development Goals (SDGs) set out in the United Nations 2030 Agenda Action Plan (United Nations, 2015). However, in order to achieve these goals, it is not enough to rely solely on producers, but a radical rethinking of who innovates and for what purpose, as well as how the practice of innovation is supported by policy-making. The role of the user in sustainable innovation activities is often defined as passive or even completely neglected. Top-down production innovations often fail to break unsustainable consumption patterns because the provided alternatives are too far from what consumers actually need in order to change their behavior. User innovations can help evolve the production process, as their solutions are built directly on issues related to their daily practices and needs. The collaborative advantage can be defined as the reward of strong cooperation, which is based on strategic alliances that internalize the resources and capabilities of partners, thus improving competitiveness. The attributes that affect the receptivity and production of the products-as-services are strategy, orientation, corporate competence and organizational structure. In designing and developing products-as-services, firms focus on identifying sustainable products/ services replacements that meet consumer needs. However, a firm may not have the resources and capabilities to provide a product as a service, and may therefore need to work with other firms to improve the initial offer. In order to achieve optimal collaboration, efficient communication/ information systems, a creative and innovative organizational culture, a flexible organizational structure and longterm relationships are needed. However, some barriers to long-term relationships with stakeholders may exist due to the fear of sharing sensitive information, conflicts of interest and reduced control of decision-making. Organizational culture adaptably and flexibly facilitates innovative outcomes, as the organization has already internalized the value of change. The perceived importance of sustainability produces more sustainable performance. Consequently, the organization and its collaborators have a collaborative advantage in sharing and perceiving the importance of sustainability. The product-as-a-service is an alternative for achieving sustainability in emerging economies.

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The transition of the socio-technical system is a trend in the field that systematically integrates the interaction of technology with society. The transition requires a radical conversion, rather than a partial improvement, into an innovative system in order to solve the problems that have arisen within the existing system. The transition of the socio-technical system consists in the simultaneous configuration of technology and society, starting from the observation that technology and society are an integrated structural system that cannot exist separately from each other. Thus, society and technology are, in fact, complementary and compatible, which means that the whole system by which technology is supplied and used in society is perceived as an analyzable unit.

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The Influence of Social Media on the Quality of Services

The existing literature indicates that it is often difficult for consumers to evaluate a service because of its intangible features. Services differ from products, because services can only be evaluated after the purchase and consumption due to its experience attributes. Consumers may seek information about services due to uncertainty about the potential quality of the service and the difficulty in evaluating it. This trend varies depending on the perceived difficulty of the risk and the evaluation of the services. In addition, the decision to use a service is often based on information gathered from service providers and their consumers in the decision-making process. Taken together, the influence of reviews written by service providers and consumers is not negligible in consumer decisions. In this context, social media becomes a valuable source because it contains detailed information about various aspects of the service and quickly disseminates information to a wide range of recipients. Consequently, consumers tend to use social media to find out about unknown brands. In such cases, the information found on social media has a strong influence on consumers’ perceptions of the quality of services and their intention to consume. In general, consumers evaluate a service in terms of perceived quality. Posts on social media that consist of positive consumer reviews, such as posts on personal pages or by virtual friends, will always have a stronger positive effect on perceptions regarding the quality of services than posts on social media that consist of provider reviews. Thus, social media has a major impact on the quality of services.

© The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2023 S. Budz, Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy, Sustainable Management, Wertschöpfung und Effizienz, https://doi.org/10.1007/978-3-658-42328-5_3

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3.1

3 The Influence of Social Media on the Quality of Services

Definitions and Perspectives for Social Media

Social media has fundamentally changed consumption processes. Its distribution systems will be the future of emerging brands, noting that this changing digital environment is influencing the entire delivery system. They said that the technology and penetration of social networks will continue to drive business applications into new dimensions of innovation. The characteristics of the company, the market and the range of options that a service offers will influence the opportunities for international expansion for all economic entities. Social media technologies are computer-mediated communication technologies that are commonly used to connect people as well as to produce and share user-generated content. In general, social technologies are called social networks, microblogging sites, wikis, forums and blogs. Social media can be defined as a set of applications on the Internet, including posts with content generated by Internet users, which can be described as media impressions formed from their experiences after easy sharing with other users and archiving them on social channels. Social media is a tool that allows users to place and perceive information of different types and shapes. So that it can be used as a marketing tool, it needs constant updating. It is a tool that must be used to acquire the most limited resource, namely the attention of the public, which is the key to achieving the ultimate goals of the business. Social media is constantly changing. This applies to both the content and the technology base and creates a need for companies to continuously monitor the usage trends of the platforms. Social media gives companies a chance to collect information, monitor user feedback, engage audiences in a dialogue about products, services, or other topics.

3.1.1

The Evolution of Social Media

The Internet has become a ubiquitous part of people’s lives, and the development of social media from Web 1.0 to Web 3.0 has transformed the way users access information, communicate, connect, and interact with other users, sharing and searching for specific information. Social media refers to a set of online tools that are intentionally built and dedicated to social interactions and which support communications through web technologies, such as social networks, such as Facebook, LinkedIn, Google etc., blogs, microblogs such as Twitter, or social sharing services like YouTube, Flickr,

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Instagram, Pinterest, text messaging, discussion forums, collaborative editing tools like Wikis, and virtual worlds like Second Life. Interestingly, social media includes open platforms that offer flexibility because they allow many actors to engage on the site and leave at any time, because the benefit of social networking is creating contacts and keeping in touch with remote users. In addition, no one expected such a magnitude and impact of social media in such a profound way. Prior to the Facebook explosion, blogs were considered true social networks, empowering ordinary people to use and express any recent topic, issue, or trend for a wide audience. Also, in the period of 2005– 2006, Myspace was ranked as the most visited by Google (Ellison, 2007). In 2010 there were over 500 million active users on Facebook, 70% being from outside the United States. Facebook has now become the largest social networking site in the world, while Twitter has attracted 73,5 million unique users and spread over 20 billion messages sent to the platform since its appearance in 2006. Moreover, in the Asia-Pacific region, 50% of all social media users browsed social networks in February 2010, reaching 240,3 million visitors (Ellison, 2007). This highlights the global and perennial nature of this phenomenon. In 2012, the Nielson Report showed that at least 27 billion minutes a day are spent on Facebook. The numbers reported have multiplied since then, indicating that some online social networks will be maintained in the long run, as people always want to interact and connect with others. Kaplan and Haenlein (2010) suggest that social media is a group of Internet applications that allow users to interact with other similar users in order to exchange content generated between them. These tools differ in functionality and features for their purposes, but have a common scope of enabling users to communicate, interact, edit and share social media content, as well as people’s appreciations, dislikes and activities. Social media is based on user-generated content, either end users or the general public, as opposed to traditional media that contains professionally generated content. While the main purpose of using social media is to facilitate social interactions, many social platforms are used to search for information, social involvement in terms of belonging and search for identity, by joining a group and building and maintaining relationships. For example, Facebook is used to build a community with a wide range of users, both for personal and general use, while LinkedIn supports the connection with the business community and entrepreneurs to build relationships with potential employers and to promote professional profiles.

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Similarly, social media gives users the opportunity to introduce themselves to others by building a user profile and allowing other users to interact with them through the exchange of text, images, photos and videos, and by connecting them to other members of the site in order to increase the value of applications that rely solely on user-generated content. Moreover, social networks facilitate collaboration and interaction as more users engage with them, it offers the opportunity to reach more people, to share information, opinions, experiences, perspectives and ideas. Previous research has shown that the sharing of digital photos on social networking sites is increasing among online users. This is because this activity fulfills functional purposes for feedback, public approval, attention and recognition through comments and conversations of photos shared between users. Moreover, online users post photos because this is considered to be a fun and enjoyable activity. By its very nature, posting and sharing photos on social networks has become one of the most essential and widely used activities. Photo sharing also allows users to share their feelings, thoughts, emotions, immediate feedback, or create a discussion centered on a topic of interest. In the globalized world, especially in Europe, geographical distance is less important for the economy, trade and other parts of life, while the interests of citizens and entrepreneurs depend on and are linked to global trends. In addition to the communication and perspective on how companies and states organize production, trade and capital investments, the creation of new services and products, and the corresponding marketing activities take place. The new economy creates conditions for such companies in which organizational logistics is organized on the basis of a network pattern that incorporates new technologies, thus facilitating control, coordination and communication. This is further developed by rising the speed of the internet and the number of users that can lead to the participation of the majority of the world’s population in any kind of social networks by 2025. Entrepreneurs pay even more attention to the role of social networks, in order to gain as much economic goods as possible. The latest trends in internet marketing and business communication indicate that the impact of social media continues to grow. Some parts of the community are actively communicating through this tool, while others are trying to adapt, and all are interested in organizing their social media communication in the most effective way. Over the last decade, the methods of communication on the Internet have suddenly changed, and interactivity is becoming more important for consumers, especially in terms of their activities, such as searching for information or details

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about various companies, products, services, purchasing online or involvement in social networks, online communities etc., which continue to grow. This interactive technology has allowed blogs and other social media forums to grow rapidly. Content sharing, personal comments, and sharing privacy have emerged as distinct elements of social networks. However, the tools and strategies of communication with customers have changed significantly with the occurence of the phenomenon known as social media, also called consumer media. Besides the benefits of social media, there is a risk of sharing sensitive information with the wrong people, and this risk increases as the network extends far beyond the circle of friends. Companies that promote themselves online need to officially control and manage these social media tools, otherwise untrue information can be spread quickly. The expansion of social media has led to the need to use new, larger information storage spaces. The analysis of big data or very large data sets has become more than just a term, now it’s a move. Several companies are building comprehensive and long-term databases. Although traditional database techniques are, in principle, scalable and useful for many things, they cannot combine basic things, database content, relationships and important trends. In addition, the emergence of social media and online sources shows that useful data can come from anywhere, inside or outside the company. Due to the availability of all this data, there is a growing push for data-driven decision making. Finally, trade studies indicate that the efficient and timely use of knowledge gained from data is a competitive advantage, and that the ineffective use of such knowledge is a disadvantage. Companies that do not exceed their data resources will be lost in the long run. In fact, those who find new uses for their or other data will be the biggest winners. Another reason why big data analytics will have a lasting impact is that a robust infrastructure is being built. Visual analysis supports complex exploration, discovery, and reasoning about data and data-driven issues. Statistics, data extraction, machine learning, signal processing and other in-depth analysis methods are closely integrated with interactive visualizations.

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Below are exposed values per country regarding the frequency of use of social networks and for the usage of the Internet for personal use, for the period of 2013–2019 (Table 3.1): Table 3.1 Participating in social networks (creating a user profile, posting messages or other contributions on Facebook, Twitter etc.)—% Countries

2013

2014

2015

2016

2017

2018

2019

Bulgaria

37,00

40,00

42,00

Germany

42,00

42,00

57,00

45,00

50,00

51,00

53,00

50,00

51,00

53,00

Greece

36,00

41,00

53,00

44,00

47,00

50,00

53,00

57,00

Spain

46,00

France

38,00

51,00

51,00

54,00

57,00

58,00

59,00

39,00

38,00

40,00

43,00

42,00

Croatia

38,00

40,00

42,00

45,00

50,00

47,00

54,00

58,00

Italy

32,00

36,00

38,00

42,00

43,00

46,00

42,00

Hungary

56,00

60,00

61,00

66,00

65,00

65,00

69,00

Austria

37,00

44,00

45,00

49,00

51,00

53,00

56,00

Romania

33,00

36,00

44,00

44,00

52,00

61,00

60,00

Slovenia

38,00

42,00

37,00

38,00

45,00

49,00

52,00

Source: Eurostat

According to the values in the table above, there is a growing trend towards participation in the activities provided by social networks for all the countries mentioned except Germany. Hungary and Romania ranked first in 2019, and France and Italy last. Developing countries like Romania are much more affected by technological impacts (Table 3.2).

3.1 Definitions and Perspectives for Social Media

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Table 3.2 Using the Internet: Finding information about goods and services—% Countries

2013

2014

2015

2016

2017

2018

2019

Bulgaria

35,00

41,00

35,00

38,00

39,00

43,00

38,00

Germany

77,00

79,00

80,00

82,00

83,00

86,00

86,00

Greece

50,00

52,00

54,00

57,00

57,00

65,00

67,00

Spain

48,00

66,00

55,00

67,00

63,00

72,00

73,00

France

68,00

69,00

69,00

65,00

67,00

70,00

62,00

Croatia

46,00

44,00

57,00

66,00

59,00

66,00

74,00

Italy

37,00

35,00

37,00

35,00

38,00

40,00

40,00

Hungary

58,00

66,00

61,00

70,00

65,00

69,00

69,00

Austria

67,00

69,00

62,00

70,00

63,00

61,00

62,00

Romania

26,00

36,00

26,00

35,00

31,00

41,00

33,00

Slovenia

55,00

62,00

61,00

65,00

69,00

69,00

70,00

Source: Eurostat

According to the table above, the trends are cyclical, with Germany and Croatia ranking first in 2019. A difference can be seen between this table and table 2.1 in terms of values. Most developed countries are much more open to online shopping than the rest. The Internet currently transmits 100 terabits per second, consumes 10% of all electricity worldwide, and is growing constantly.

3.1.2

The Relationship between Sustainability and Social Media

The rapid evolution of social media shows that this field is a key framework for innovative practices. Due to the advent of cloud computing and Big Data, the society is moving towards a more sustainable era, where everything can be interconnected and measured, generating greater efficiency in the use of resources. In the recent years, social media has impacted all areas and industries by facilitating activities and communications of all kinds, reducing or even removing barriers of distance and time. Social media has generated new savings, new sustainable business models, sustainable production, waste reduction, cost reduction,

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efficient use of goods or services, innovation, collaborative consumption, knowledge and improvement. Due to its nature, social media can be implemented in any activity, through which the development of certain practices is pursued. There is a whole stream of consumers and companies around the world that are becoming more and more sustainable. Social media facilitates this, as it offers the possibility of durable and sustainable business models, as well as a smarter and more conscious consumption towards the environment. The sustainable business model is the changed conventional business model, with certain features and purposes added to it, and which either integrates principles, concepts or objectives aimed at sustainability, or incorporates sustainability into its value creation. Social media and sustainability play an increasingly important role in the way businesses run and talk about themselves. Together, they have helped push companies toward new levels of transparency, paved the way for greater involvement, forced organizations to rethink their role in society, and led to the alignment of individuals, businesses, and communities around a common goal. The increased degree of transparency has led to the production and provision of sustainable and quality products and services. For many companies, a key issue at the intersection of strategy, change and culture is sustainability—meeting current environmental and social needs, without jeopardizing the ability of the next generations to meet the same needs. The level of commitment towards sustainability communicated both in the sustainability reports of a company and in its activity in terms of social media, can provide important information about the values that underlie the culture of the company. Many companies are increasingly using forms of social media, such as blogs or social networks, Facebook and Twitter, to communicate their efforts with regards to sustainability. They have become active users of social media in communicating their initiatives for transformation towards sustainability. Social media facilitates the promotion of new collaborative business models, because only through online platforms can collaboration be more effective. These models facilitate sustainability by reducing the number of used goods and thus reducing pollution, oil consumption etc., by reducing the development of infrastructure and the production of adjacent products and services etc. However, companies differ in time and how they implement these types of sustainable practices, as well as how they relate to the commitment to sustainability and management values. Through social media, society has an impact on companies and corporations, by creating communities or even movements that promote sustainability, forcing companies to adopt healthier practices.

3.1 Definitions and Perspectives for Social Media

3.1.3

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Other Social Media Benefits

Social media has revolutionized the use of the Internet as a tool to promote and sell products and services. It opens up the possibility of a less expensive and more efficient online marketing and offers new approaches for direct contact with potential customers, inspiring in the development of business strategy, and in communication. Every day, millions of users post their articles, photos, and videos using the services provided by YouTube, Flickr, Wordpress etc., and share them with others. The term social media is superior to social networks and includes various materials that people use for online communication and collaboration and to enhance social interaction. Ellison, Steinfield and Lampe (2007) pointed out that there are four factors that influence social network users in their use, namely, maintaining offline contact, meeting new people, searching for information, and engaging in fun activities on the site. People use social media to meet new people, to maintain existing relationships, to follow social events and other pleasurable activities. Meanwhile, recent consultancy reports have highlighted the predominant factors that encourage the use of social media. Reports have found that 90% of social media users engage in social networking only to maintain relationships, connect with friends and family. In general, the community is one of the most crucial social structures in the analysis of social networks, people from the same community communicate more regularly, while individuals from different communities interact rare. This perfectly represents the social attributes that are associated with the users who connect on social networks. Studies confirm that communication between users and their friends through social media is defined by the strength of the connections between them. Social networks capitalize on the power to change patterns of human communication and interaction and to build intense interactions that influence users’ lives, despite the fact that they are experienced only through the online context. An essential advantage of social media is that it allows users to control their social networks and create connections that they have not been able to make before, maintaining and creating relationships. Some academics have argued that mobile technology is an important communication medium that supports social connection. Mobile phones can be used in many ways by accessing social networks. Currently, there is a sharp increase in the number of people using mobile devices to use social media. Social networks are among the top five activities of mobile phone users because communication with people at a distance is faster.

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The integration of social media in the contemporary society offers emerging opportunities for describing the current culture. Images are shared online with unprecedented cultural frequency and density. These images reveal personal values, lifestyles, uses and perceptions of the landscape. Images shared via social media have great potential to understand how the connections between characteristics and values are made in terms of space. Social media provides a clear opportunity to expand by collecting passive, non-reactive data.

3.1.4

The Impact of Digitization

The digital age is a social force that has created new opportunities, challenges and behaviors in business. There is no denying that the Internet is a powerful channel for information and sales. Companies can collect complete and diverse data about consumers, prospects, outlets and competition. “Nowadays, connectivity, abundance of information, global supply chains, the growth of cloud computing and the emergence of Big Data have led society into the new digital age. These digital technologies fundamentally reform the traditional business strategy, as modular, distributed, inter-functional and global business processes, which allow the development of work across the boundaries of time, distance and function” (Chi & Li, 1016). The digital age is changing social and economic activities, with digital business models changing the way things are handled. In the past, companies have always been challenged to adapt to changing requirements, but digitalization has shortened the available time for this drastic process. Adjustments are becoming more necessary and happen much faster. A recent study shows that almost 50% of companies believe that competitors that emerged during the digital age are able to establish themselves in the market, especially due to the good management of new and more beneficial customer relationships. In addition, researchers argue that there should be a fusion between IT and business strategy, as “business infrastructure has become digital, with multiple interconnections between products, processes and services” (Bharadwaj, El Sawy, Pavlou & Venkatraman, 2013). With the continuous transformation of digital technologies, digitization is a smart business and value creation process in the use of information as well as communication technologies such as Big Data, Cloud, computer computing, the Internet of Things and the social software. As a result, digitization means not only the provision of information, but also the representation of value creation processes in electronic forms.

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Along with the digitalization, a large number of new communication networks have emerged between companies and customers, used for the purpose of building a brand or for acquiring new customers. Online customer feedback, combined with advertising efforts, is a cheap and effective opportunity to retain or build a customer base. Moreover, digital business models or processes offer the opportunity to intensify services for consumers. Customer service is an important part of a company’s success. Innovative digital business models or processes make it easy to individualize by providing customized products or services. The importance of services has increased due to digitization, making it necessary to use new technologies in order to provide more customer-specific services for companies to remain competitive. Products and services are increasingly closely linked, making it possible to provide customers with a more personalized product or service than ever before. Thus, customized products, along with a higher standardization of them, are part of a company’s supply chain. In addition, dynamic pricing is highly encouraged through digital business models and processes. This affects both online services and goods sold online. While stationary trade can change prices weekly or monthly, the prices of goods and services sold on the Internet can change daily or even hourly. Higher product attractiveness, a better approach and customer support, personalized products and aggregated dynamic pricing lead to individualization, having a positive influence on potential digital business models. The implementation of digital technologies can improve the efficiency of companies, as the processes become more agile, which leads to better competitiveness. In general, the more innovative companies operate, the more able they are to implement new products and processes that offer the chance to promote product offers and advertising. Every two years, the amount of data produced in the world doubles (Fraunhofer INT, 2014). In addition to volume, speed, variation, utility, complexity and completeness of data are becoming increasingly important (Fraunhofer INT, 2014). The generated data can be a competitive advantage, even more so if it is analyzed with new methods of analysis. The degree of automation grows along with the increasing of digitization. Programmable commads via devices and machines are creating many possibilities and consequences. Automation and standardization bring new challenges for both manufacturing and administration. Moreover, the concepts of sharing are expanded and accelerated by digitization. New digital collaborative consumption business models and processes have emerged. Digitization is changing the way the concept of ownership is understood, thus contributing to the emergence of online platforms for sharing underutilized goods.

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The “new digital age” we face today has just begun, and digitalization is bringing the greatest social and economic change since the industrial revolution. Although digitization could change the human work process through new technologies, digital transformation creates a huge amount of unprecedented new jobs. Thus, digitalisation is a boost for new business models, with innovative products and services that contribute to employment and development, which means that it will continue to be extremely important for both science and practice in the future.

3.1.5

The Future of Social Media

The next revolution in the computer age will go beyond the realm of the classic desktop. The Internet of Things—IoT, covers a wide range of technologies and provides a variety of “things” or objects, which are physically and/ or virtually interconnected, being able to communicate with each other to provide a new class of applications and services. Virtual reality plays a key role in both services and social media, providing a different user experience. VR or virtual reality technology is an environment designed to share media content in a manner that is as immersive as possible. Lately, VR technology developers have utilized motion monitoring to construct portable controls that enable the users to interact with virtual reality objects (Vive, 2017). This feature builds opportunities to establish new consumer experiences. As an outcome, technology companies such as Facebook and HTC are now enhancing high-performance VR technologies for the entire experienced industry through their Oculus Rift and HTC Vive glasses initiatives. “VR technology is designed through the three-dimensional computergenerated environment, which can be explored and interacted to some degree” (Virtual Reality Society, 2017). Illusion is designed by activating several senses, including sight, feeling and hearing. The traditional paths of presenting the media are as well designed to submerge the users, but these technologies do not incline to build an eternal illusion of another reality. Virtual reality is built by showing visual data on the screens of the glasses, with headphones, which entirely hide the user’s vision. The headset fascinates the user with virtual reality image and sound. VR headsets are equipped with gyroscope technology that traces the movement of the head in order to design an illusion of looking around in the virtual reality environment. High-quality headphones utilize motion and touch controls to enable for greater interaction with VR (Oculus, 2016; Vive, 2017).

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Nowadays, Facebook and HTC are investing intensely in the expansion of their advanced headphones, Oculus Rift and HTC Vive. Whereas the gaming industry has shown the biggest interest in VR technology, technology itself creates many new opportunities for novelty and innovation in other industries as well, such as engineering, healthcare, marketing and others. IKEA has set in motion an application that permits customers to design and experiment with VR kitchens (IKEA, 2017), and some car manfacturers provide VR features that enable customers to “get in” a car and personalize their car models as part of the purchasing process (BMW, 2017). In the specific domain of marketing, some early academic contributions explored how VR can be implemented to reach and engage consumers in new ways. VR provides a set of generic properties that make it appealing for marketing purposes, such as the opportunity to design more liveliness than twodimensional videos, particularly since technology can imitate and stimulate more empathy through an individualized experience. In general, VR allows for a wider experience as more senses are stimulated. In this regard, technology offers new opportunities to analyze consumer behaviour and to provide a more catchy consumer experience. Other studies have looked into the relevance of VR for tourism and how it can positively influence the images of travel destinations, as well as potential future practicability in other fields such as fashion. It is clear that VR has enormous potential and can transmute not just marketing and user experience, but also the way firms organize themselves internally. Regarding social media, virtual reality can lead to interaction on another level by remote users, or by companies present on social media, it can even facilitate virtual face-to-face meetings. Through virtual reality and social media, virtual reality can be connected directly to devices, thus creating unique experiences for social media users. In the future, absolutely all devices will be interconnected, whether they are home appliances or cars, with the possibility of being controlled from a mobile application or via VR devices.

3.2

Social Media Platforms as Support for the Sharing Economy

In the second decade of the 21st century, the development of information and communication technologies (ICT) has led to the creation of strong web communities that cooperate with each other, share digital products and information.

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The sharing economy creates new variants of economic and social relations previously explored. The classic concept of sharing has altruistic roots and does not require reciprocity. The sharing economy can be described as a collaborative digital economy or as a person-to-person or peer-to-peer production system, in which web platforms facilitate the connection between suppliers and buyers in a partially mediated reciprocal framework. Platforms such as eBay and Airbnb advertise sellers’ offers, arrange payment, and facilitate delivery or service delivery details. Such business relationships are based on exchanges and involve “pseudosharing”, which increases the importance of reciprocity in such interactions. Reciprocity is seen as a pervasive phenomenon in business models using interactive platforms. Online platforms create repeated opportunities for user interactions, including finding and providing information, personalizing offers, completing transactions, feedback about sellers and consumers, and posting reviews and recommendations. Many online platforms are bidirectional, with suppliers and buyers evaluating each other, leading consumers to become content creators. Many of these can be exaggerated or biased. In some cases, individuals alternate between roles, both as suppliers and consumers, which may make them aware of the reciprocal nature of two-way reviews. Review assessments include emotional aspects of social motivation and altruism, as well as an element of reciprocity. Similarly, reciprocal distribution of service exchange networks provides both emotional and material support to consumers in times of important personal transitions. Social networks, such as Facebook and Twitter, are an integral part of the sharing economy. They provide interactive platforms for creating and distributing content in individualized, self-created networks that facilitate the distribution of behaviours. Consequently, they provide a rich context for exploring the nature of peer-to-peer interactions and reciprocity. For sites like Twitter and Facebook, reciprocal behavior includes sharing emotional support, information and knowledge. Social networks shape and reflect people’s reputation. Members use social networks to determine who they can trust and who they can’t trust. Social network users deduce the reputation of others from the online activities they have, including how many friends or followers they have. Reciprocity can exist at all levels, even between peer-to-peer and social media platforms. All major companies have accounts on most social media platforms, such as Facebook, Twitter and Instagram. They refer to their own platforms through social networks, where they promote their business, while also promoting social platforms. Also, on peer-to-peer platforms, referrals are made through icons on the social networking accounts of the respective companies. This makes

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individuals who are not connected to social media much less informed than active users in online communities. Social media provides significant support for peer-to-peer platforms, being validated and vice versa, ie providing mutual support.

3.2.1

Websites

According to Computer Hope (2020), a website is a central location of web pages that are linked and can be accessed from the main page of the website using a browser, such as Internet Explorer, Edge, Safari, Firefox or Google Chrome. The first website was created at CERN by Tim Berners-Lee, and launched on August 6th, 1991. In the present, there are currently between 1,3 and 1,8 billion websites.1 Many of these sites are unused or not visited by people, as they exist. Websites can be of many kinds, such as archive websites, blogs (weblogs), business or corporate websites, community sites, content or informational sites, dating sites, e-commerce websites, news sites, search engines etc. The public’s interest in novelty and creativity is never waning, but growing. The ever-changing structure of market demand facilitates a shift from product-based to value-based competition, and it is suggested that creativity and innovation can serve as important sources by adding other benefits to the overall consumer experience. Recent research reveals the value of creativity for both traditional hardware and more complex information technology (IT) products and services. Not only does creativity play a key role in user satisfaction, but it also shapes one’s intention to buy a product or service. Website creativity is defined as “the subjective judgment of a website that presents novelty, causing satisfaction and pleasure, being compatible with user preferences” (Zeng & Salvendy, 2008). Website evaluation is the act of determining a correct and comprehensive set of user requirements, ensuring that a website provides useful content that meets user expectations and sets usage goals. In general, previous studies regarding website evaluation fall into two broad categories: quantitative and qualitative. Quantitative studies usually generate performance indexes or scores to capture the overall quality of a website. Faba-Perez, Guerrero-Bote and de Moya-Anegon (2005) introduced a technique that compares web page measurements, such as text elements and link formatting. Yeung and Lu (2003) conducted a longitudinal study of the functional characteristics of Hong Kong commercial sites based on 1

Computer Hope, (2020), “Website”, https://www.computerhope.com/jargon/w/website. htm

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the selected quantitative attributes of the site and found that the websites were only improved after 2,5 years. In the qualitative studies, the researchers evaluated the quality of the website without generating indexes or scores. The combination of brand, human-computer interaction and usability could improve the evaluation of the site. With better website design, vendors can expect to improve their order conversion rate. A website is the image of the creator or company. A well-developed website interacts with consumers and provides recommendations, offers management mechanisms that help consumers when something goes wrong, and provides a variety of payment mechanisms that mimic the live experience. Some websites allow consumers to interact or even communicate with suppliers during the purchase process. A company’s website may suffer from organic traffic limitations and may be able to attract only a limited number of visitors. The Alibaba site is one of the largest peer-to-peer platforms in the world, offering an efficient network for the internationalization of companies. Maintenance and setup costs for standalone websites are high. The emergence of peer-to-peer online platforms has provided companies with substantial benefits, such as regular online traffic, and reciprocity in terms of promotion and communication. Platform websites are revolutionary because they can provide functions for users such as matching, promoting, exchanging information and communication. The more advantages a website has, the more competitive it is. A key concept for these sites is represented by the spatial, temporal and digital scales. Companies like Airbnb are able to improve their space level and be “anywhere” through the peer-to-peer platform, which can be accessed by anyone globally.

3.2.2

Blogs and Microblogs

Information and communication technology has a great impact on the informational process of online users, changing people’s perceptions. Of all the technologies, the Internet is the most influential medium for its global popularity and use. It removes geographical barriers between users, allowing interaction between them and other stakeholders. In general, people like to communicate and share information, knowledge, ideas etc. All individuals are looking for ways to recommend something to someone else for personal or altruistic reasons. Among these ways, blogs can be

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considered as one of the most important ways to show, share information, because it gives people the opportunity to express themselves and to be themselves. Weblogs, also known as blogs, are websites that have been around for many years. The number of those administering them is growing rapidly. According to the online statistics portal Tehnorati, there are over 332,800,000 blogs to this date, and over 1,6 million blog entries updated daily. The Register, a British news site, reported that a new blog is created, on average, every 5,8 seconds, and more than three blogs are updated per second. There has been a gradual increase in awareness that blogs are a community and a social network. In some cases, blogs are used as online journals and also increasingly as viable educational resources. Most studies report that blogs are a tool for reflective learning, helping students to develop their insight and critical thinking skills. Blogs are websites where people report recent events or topics in their own interest. They are technically similar to common websites, being the core of the proposed model and a clear example of communication tools. Blogs are interactive, given that the amount of information is the most important determinant of the interaction, being more precisely, the common feature of the dynamics of blogs. Blogs allow both individuals and organizations to engage in mediated communication, resulting over time in various exchanges between bloggers and readers. Blog content is displayed in reverse chronological order. They may report personal issues, or public conversations on a given topic. New posts are placed at the top of the page, making changes easily to identify. In the beginning, blogs were lists of links to other interesting materials on the web, but they have evolved to include more and more forms of multimedia content, including combinations of links, text, photos, videos, and other web materials. An important aspect of blogs is that the format and tools used to produce them are more defining than the content. The combination of different media genres, where not only traditional web 1.0 applications and tools, but also older media, such as film, television, radio etc., mixed in a single interface, being the most important defining elements of the blog. Most blogs have adopted a change in the presentation of information, from text-based to interactive visual and auditory materials, as well as the various features offered by sites that transcend different categories of web, including discussion forums, chats, text, videos, images, news, opinions, experiences etc. Blogging practices are on the rise, especially in the social sciences. Little attention has been paid to understanding the different types of weblogs and how they are used by ordinary people for purposes related to relationships, health, nutrition

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etc. Most of the literature is editorial, written from the perspective of bloggers specialized in these fields. For the past 15 years, technology-based systems have supported the idea of creating a smarter, more interactive study environment. Many researchers have found that engaging in conversations with other stakeholders via the Internet, and using authentic content, benefits communities, enabling users to gain indepth knowledge in a variety of areas of interest. Given these proven benefits, the development of an innovative information tool that allows people to access and distribute information more effectively is of great help to these communities. Blogs can also be used for e-learning purposes. The number of teachers who use blogs as a means to create and enhance the study and knowledge environment is growing, research on this field is divergent in its advantages. Various studies have shown that blogs have both a positive and a negative impact on the way students study. The positive impact would be that blogs can provide additional information on topics of interest to students, increasing their motivation for study, research and deepening, creating a student-centered environment, allowing them to build their own knowledge through independent creation and saving of a journal. Students can also ask different questions to other users of the blog, justify various arguments, find out different points of view and look for other external sources to deepen their knowledge in the field. Other benefits of the study blogs are that they can archive user contributions and publications, allowing students to manage study materials, provide access to information, build a path to a prior understanding, and create new connections between ideas. In addition, the information is electronic, which allows students to access it at any time. And the negative impact is that blogs may also lack consensus on the effectiveness of the study because they do not contain detailed teaching models. The blog is a great source of information that covers real-world events and scenarios. SproutSocial (2020) says that microblogs contain small content materials designed for quick interactions with a specific audience. Microblogging is a combination of instant messaging and content production. Through a microblog, short messages can be shared with an online audience to increase their involvement. Microblogging has changed people’s lives, work, and way of information. Every day, people are getting more and more curious about the news and how public opinion is evolving. With the rapid development of communication technologies and the popularity of smartphones, more and more people are starting to use the mobile Internet. Microblogging platforms have hundreds of millions of data streams every day. Data can cover all aspects of human life and contain abundant amounts of valuable information. Top topics in microblogging usually

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refer to some sudden public events and important published information that can cause resonance and intense public discussions. Social networks like Twitter, Instagram, Facebook and Pinterest are popular microblogging platforms. Microblogging makes it easy to communicate with your audience. Compared to the blog where text pages are posted, the microblog allows for quick, conversational connections with customers. Short microblogging messages appear in a variety of content formats, including audios, videos, images and text. The trend towards microblogging began with the emergence of social networks to provide faster ways for companies to interact with customers. Through microblogging, customers are informed about the broader content of a company’s website. Most brands are already using microblogging platforms to post content. As more and more users plan to develop long-term relationships with companies, short, frequent posts on social media platforms are key factors. In addition, microblogging appeals to the mobile online browsing community. Examples of micro-blogging platforms are: • Twitter—one of the most popular microblogging channels in the world. Through the social network Twitter, it is faster and more convenient to share short posts, GIFs, links to articles, videos and other materials of interest. • Pinterest—the companies which are present on Pinterest provide links to products, articles and other useful information for the public. Descriptions allow quick connections with users. • Instagram—is a visual form of microblogging. Instagram allows companies to share with users stories and materials, such as pictures or “snapshots,” and videos. • Facebook—is one of the most popular social networking platforms. Facebook is an effective microblogging channel. Providers distribute text, live videos, and other materials in order to connect with customers. • Tumblr—is another very popular microblogging platform, where users can tag specific materials in order to attract the attention of the targeted audiences. Most companies already use microblogging without realizing it. The strategy of using microblogging is a critical part of making connections with modern audiences. The benefits of a microblog include frequent posts, because consistency is the key in content marketing, and microblogging allows companies to deliver small content faster, leading to more conversations with customers. Microblogging reduces the time it takes to create content, which will save time for companies that strive to create large content on a regular basis. Microblogs

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maintain customer relationships during post breaks on normal blogs, and allow real-time distribution of information in a fast-paced environment. A quick tweet informs the public about a sale, news, or other crucial updates. 52,2% of the worldwide site traffic was generated from mobile devices in 2018.2 As online users continue to use mobile phones as their immediate source of information, microblogging is essential. It is difficult for consumers to interact with large mobile posts. However, microblogs provide instant access to updates and news. A microblog strengthens brand relationships in the mobile world. Many microblogging platforms offer opportunities for two-way interactions. Microblogging channels like Twitter make it easy to interact with comments, retweets, likes and more. Used correctly, a microblog facilitates better involvement than a traditional post.

3.2.3

Vlogs and Podcasts

Blogging and vlogging are essentially considered individual technologies in which a primary user communicates to a group using RSS feed technology— Really Simple Syndication (McHaney, 2012). Video blogs or vlogs contain different types of videos featuring products, product reviews, recipes, tips, or Q&A clips. These videos are based on the ordinary life of vloggers and are filmed using simple, portable cameras. This format tends to add realism to the content, thus generating more interest and attracting larger audiences, some vloggers gathering tens of millions of subscribers. Therefore, vlogs are considered a powerful marketing channel for companies, which allows the presentation of brands or products in a positive light and target certain consumer segments. Companies often offer free products or services, gift cards or money to vloggers, and in return, vloggers provide positive and interesting content about the products or services offered by those companies. In these situations, vloggers are considered promoters, enjoying public recognition and using this recognition in the name of a product, service or brand, by appearing publicly with that good, service or brand in a vlog post. Previous studies have shown that published content with information, ratings, and experiences related to products or brands influences audience attitudes, credibility, and behavior. Thus, it is not surprising that vlogs have become an important channel of information about products and services and an integral part of the consumer purchasing decision-making process. 2

SproutSocial, (2020), “Microblogging”, https://sproutsocial.com/glossary/microblog/

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Promoters with greater credibility and persuasion lead to an audience with more positive attitudes towards the promoted products, services and brand, and to an increase in buying intentions. The vlog audience analyzes the degree to which the vlogger likes and appreciates the approved product or service, which dictates the public’s willingness to accept the information as credible or not, thus becoming more likely to accept the message. According to Khan (2017), audience participation is the degree to which they engage in various activities in a vlog, such as likes, distributions, comments, subscriptions, and responses to other comments. Thus, participation is understood as an active involvement, while viewing and reading the content is considered a passive involvement. Passive involvement is seen as a consumption of content, while active participation includes interaction with content and other users, as well as content production. When the public actively participates, this translates into a greater influence of the perceptions, affects, and behavior of the audience, which are transmitted through means of social identification and social determination. These means of socializing and communicating within a vlog community deepen the attachment and identification of people with the vlog audience, the vlogger, and the community. In addition, public participation in the vlogger message and its approval determines the acceptance of the message by the public. More active participation allows the audience to further process the message and directions of the vlogger, thus contributing to the evaluation of the characteristics, the quality of the argument and the compatibility with the product or service. Therefore, the more individuals spend their time and interact with the vlog, vlogger, and other users, the more they are able to assess the credibility of the vlogger’s argument. Obtaining active public participation is one of the major challenges that companies are facing, therefore it’s more easier to collaborate with vloggers in order to promote their products and services. Podcasting is an important Web 2.0 technology, a method of publishing audio or audio/ video files on the Internet, that allows users to subscribe and to receive new files automatically via a RSS feed. Podcasting has grown in popularity over the years. Podcasts are similar to the traditional large-scale content of shows or talk shows and documentaries, with the only difference being that listeners can access them when it’s convenient for them, without being limited by a time period. Many podcast listeners upload podcasts via computers, smartphones, or tablets using a variety of platforms, including iTunes, Spotify, and Stitcher or directly from the podcast’s website. Podcasts are divided into episodes and are usually dedicated to subjects on various relevant topics, and most last less than an hour, making

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them easily to listen to during the day. With thousands of podcasts available, listeners can choose according to their tastes from a wide range of topics, such as entrepreneurship, finance, sales, leadership, management etc., and depending on the host’s personality and the interview styles, such as business conversations, news format and free discussion. According to a Pew Research Center survey, podcast awareness has doubled since 2006. Podcasting is often used as a study or marketing tool to disseminate organizational knowledge, such as training materials and policies, and for connecting with the organization’s customers, employees, and other stakeholders. Similar to broadcasting, podcasting can instantly reach millions of listeners. This makes podcasting a form of social media with potential benefits in all areas. Despite its growing popularity and usefulness as an information tool in any field, current research regarding the use of podcasting focuses primarily on educational contexts. The use of podcasting is different because of the various features of the users. Users in the educational environment, mainly students, expect to have different perceived values and beliefs about podcasting as a learning mechanism compared to users in organizations, ie employees. Users have different attitudes towards using podcasting depending on the purpose and motivation of use. By automatically transferring digital files to portable devices such as iPods, MP3 players, and mobile phones, podcasting provides an easy and inexpensive way for users to access information anytime, anywhere. Due to its ability to increase ease, flexibility and accessibility of information and knowledge, podcasting has gained an increasing popularity in assisting information and study activities. In addition, most podcasts are free, which explains their extraordinary evolution over the last decade. While the expansion of podcasts creates a spectacular variety of content, it is difficult even for older users to sort and identify the best podcasts.

3.2.4

Social and Sharing Platforms

Nearly 3 billion people worldwide use social media platforms (Statista, 2020). Social platforms are networks that provide users with “space” for virtual web pages in which they can create a profile, establish a network of social contacts, and create new social connections. Social capital has moved online through social media platforms. The expansion of the use of social media has led to changes in the management of social networks. Social media users can have benefits and risks when

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they choose to manage their social relationships online. Benefits may include expanding contact networks. Putnam (2001) defined social capital as the value of social networks because of the reciprocity, trust, and sense of connection and belonging that people feel in the network, and suggests that extended networks of contacts contribute to more social capital. Social media, especially applications such as social platforms, have played key roles in contemporary collective actions. Their increasing availability has transformed the resources, processes, perceptions and results of the collective actions. This fundamental change in the very nature of the collective organization, beyond the formal limits of society, requires a renewed effort to question and understand the organization in its new facets. On the one hand, social platforms cause unprecedented opportunities to impact masses of people towards different behaviours or actions, decrease participation costs and stimulate new repertoires of information and actions that go beyond offline communities. On the other hand, questions remain about the real impact of any technology-based influence, the ethical implications of the promoted ideologies, and the high likelihood of unintended negative consequences and new forms of domination and harassment. In order to stay in the market and be competitive, companies were forced to present themselves in the online environment as well. It has brought them many benefits because they have entered an unlimited market, with great opportunities to expand their business and increase their income. Social platforms have allowed them to collect information and opinions directly and indirectly from consumers in order to improve their production processes, services, products and customer relationships. Unlike other methods of gathering opinions from consumers and companies, social media users post spontaneously what they want, when they want, avoiding biased posts in expressing their opinion. Social and sharing platforms allow individuals and companies to come and act together, even without necessarily developing a shared identity. Such common actions include sharing personal complaints and feelings online, involving “proximity” users, and selecting the group of actors who will see any message shared by individuals. Not all actors engaged in the digital environment are human users. Increasingly, bots and other autonomous agents are playing a significant role in online communication. Although the earliest research regarding the digital environment focused only on human users, companies are beginning to understand the importance of considering other types of actors. Like human actors, bots engage as individual actors, or as part of a larger network of human actors and/ or bots. Future innovations are likely to expand the understanding of the bot-man

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relationship, making it increasingly difficult to identify where the man ends and where the bot begins—both in and out of social media contexts. Social media plays a central role in the current business. Increasing dependence on microblogging applications such as Twitter, social networks such as Facebook and video sharing platforms such as YouTube has contributed to the emergence of new forms of business aimed more at collaboration and promotion. Compared to the traditional media, digital technologies have greater advantages in terms of emancipation, which allow the provision of any information despite the barriers of distance, space and time. Research has identified other aspects of online platforms, which contribute to the emergence of new forms of organization, including interactive means of access, the ability of individuals to organically assume interdependent roles, of the advantages for socialization, and business. Increasingly, the online environment is deploying across multiple platforms and/ or using multiple social media applications. These multiple, complementary and concomitant channels make the whole dynamic of new digital activities more and more complex. The exchange of information is crucial to maintaining this system. Just as previous generations of innovations such as radio and television have changed the dissemination and reception of information, so have digital technologies. Online platforms change the way information is distributed, especially if it is distributed by bots for marketing or other purposes. With the advancement of information technology nowadays, various social media tools, such as Facebook, Instagram, YouTube, WhatsApp and LinkedIn, are becoming more and more popular among Internet users. These tools allow people to contribute with content, as well as to communicate, interact and exchange views and ideas. Below were extracted data from EUROSTAT regarding the use of social networks by both individuals and companies in 2013 and 2019 (Chart 3.1).

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Chart 3.1 Companies that use social networks—%. (Source: EUROSTAT)

According to the chart above, upward trends can be seen in all selected countries. The developed countries have seen the largest increases due to the advanced infrastructure and the high standard of living. In Romania, there was a growth of 15% in 2019, compared to 2013 due to the increased demand for social networks (see chart 2.2) and the increasing competition in the online environment (Chart 3.2). According to the upward trends in the chart above, it can be seen that more and more people use social media, in 2019 the values increased by more than half compared to 2013. Due to the degree of interactivity on social platforms and the feeling of belongingness, people are increasingly attracted to using these networks. Social media platforms such as YouTube, Instagram, Twitter and Facebook give users an unprecedented ability to maintain and communicate effectively with networks of contacts. Individuals use many social platforms to maintain their relationships, while influencing their quality in terms of relational closeness and social presence. The social rewards obtained on social networks act as reinforcers, bringing people back to these sites repeatedly and for considerable periods of time. For example, studies have found a positive relationship between dependent use of social networks and the need to belong to a group or the need for admiration.

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Chart 3.2 Individuals who use social networks—%. (Source: EUROSTAT)

The available social rewards vary in today’s digitalized society, and people may have different preferences. These social rewards include: (1) admiration, which describes someone’s motivation to be flattered and liked by others, (2) negative social potential, which describes someone’s motivation to be cruel, insensitive, and using others for personal gain, (3) passivity, which describes someone’s motivation to give control to others and allow them to make decisions for them, (4) prosocial interactions, which describe one’s motivation to have a good, reciprocal relationship with others, (5) sexual relationships, which describe one’s motivation to have sexual interactions with others, and (6) sociability, which describes one’s motivation to engage in group interactions. With this global social reward framework, researchers can investigate the motivations for using social networks because they meet those needs. For example, key aspects of using social networks include: managing impressions, providing feedback and social support through comments, and interacting with the user

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network in a social network group through posts. Consequently, these behaviors would be reinforced by the following categories of social rewards, namely admiration, prosocial interactions and sociability. Therefore, these categories of rewards determine the dependent use of different social platforms. I. Facebook Facebook is one of the biggest social media companies listed on the NASDAQ— National Association of Securities Dealers Automated Quotations, and is one of the most downloaded social applications from the Apple Store and Google Play Store, suggesting that most people have constant access to Facebook via smartphones (Priori Data, 2019). Facebook was launched in 2004 by Harvard student Mark Zuckerberg, and in 2007, it had over 21 million registered members, generating over 1,6 billion page views every day (Ellison et al., 2007). Facebook’s popularity is still very high because it is one of the most visited sites in the world. According to Alexa.com, Facebook is the 2nd most visited website after Google (Alexa, 2013). Compared to other social networks, Facebook is a leader in social networking sites. The website is constantly enriching its services to improve and renew its members. In addition, such services as messaging, notifications, activities, and games are other important features for Facebook users. Facebook’s popularity is based on open, public, two-way conversations that prove to be both beneficial and ineffective. Despite the potential initial impact of Facebook, studies about this platform and social media are not comprehensive. Due to the limitation of measurement methods and ever-changing figures, there is a distinct lack of empirical research in this area. Existing research is related to the use of Facebook and its behavioral impact. The social networking site Facebook was created to connect people via the Internet. The website was designed with the assumption that more social connections are useful. Because such site designers have made adding friends as easy as possible. Adding a friend to Facebook simply consists of searching for the name on the platform and clicking on the “add friend” button. The ease of searching for and adding new contacts has contributed to a fast expansion regarding the number of Facebook users. Facebook has been and is one of the most popular tools among individuals and various organizations, and has enjoyed tremendous success since its emergence. Facebook is a free and valuable marketing tool for interacting with users, as well as receiving feedback and comments from them. The widespread use of the global Facebook platform has made it a new and important advertising platform for businesses to place their ads to reach their

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potential customers. This is because Facebook allows companies to target a specific niche and promote their product or service through effective advertising. The growth of advertising on Facebook is probably an indication that it is becoming an important source of business presentation, and companies see advertising on Facebook as a useful strategy for attracting customers. Most of the traffic in terms of online shopping comes from Facebook, then WhatsApp and Twitter. Facebook is the platform with the highest traffic share. Companies present online use Facebook as a source of traffic or advertising channel. Regarding paid advertising on Facebook—Facebook Ads, measuring the performance of advertising is possible and extremely important, because online ads are often used. The significant difference from common web pages is that Facebook users express their preferences, hobbies and likes. All this information is very valuable for marketers to target their marketing campaigns to certain groups of people. Marketers have control over their daily budget for advertising campaigns, which is the maximum amount that can be spent on the campaign per day. If your daily budget is spent, your ad will stop running until the next day of a current campaign (Facebook, 2017). Facebook has extensive advertising targeting options that can improve a company’s online advertising performance and effectiveness because ads are shown to users who are most likely interested in the promoted topic, thanks to information shared on Facebook user profiles. With precise targeting, companies can reach a target group of potential customers in line with their advertising goals. Multiple targeting filters can be set in an ad (Facebook, 2017). The benefit of advertising provided by Facebook is in the opportunity for consumers to participate, achieve, personalize and provide feedback. It is necessary for successful companies to use this advantage in the advertising provided to successfully engage their customers in active participation, during and after the acquisition, and that the basis of this commitment is either to improve the brand image or equity. Users agree that their willingness to buy from a particular company has increased as a result of many “appreciations” and “distributions” for the company’s products or services, which have suggested that it is well-known. Because many consumers have embraced Facebook as a modern way of advertising, and because most Facebook members are young adults, they tend to be interested in discovering unique styles by following the information posted on a brand’s page and the recommendations and activities of friends and acquaintances. In order to survive in today’s highly competitive market, companies need to be informed about consumer awareness of the brand and develop updated

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advertising strategies accordingly. The way consumers perceive marketing communication is related to the relevance of an advertisement and the ability to accept communication for marketing purposes. II. Instagram Instagram, founded in 2010 by Kevin Systrom and Mike Krieger, is an online social networking platform that allows its users to easily capture and share a variety of “moments” or “snapshots” through photos or videos (Instagram, 2020). Previous studies have addressed the popularity of Instagram in the recent years. The mobile app through which photos or stories and videos are posted and distributed has gained over 150 million users and produced over 1,2 billion likes per day. In addition, Instagram allows users to send real-time images to the system, and the app is currently one of the most popular photo-sharing networks. It also allows users to edit images and share them on other social networks, such as Facebook and Twitter. Moreover, Instagram’s popularity is due to the hashtags and symbols used to describe photos and videos to interact with users individually before posting them. Similarly, an advantageous feature of Instagram is to allow content posted on the app to have a longer shelf life compared to other online social networks. The app gives users the ability to like, comment, follow, and tag content on a timeline, thus improving photo-sharing communication through social interaction. Instagram is currently the most used social media app by teens. Instagram personal posts and temporary visuals or stories are visible to the user’s followers if the user has a private profile, that is, for Instagram users who have subscribed to user profile updates, or by anyone, if the profile is set to public. Followers can comment and share any content posted by the user. Two indicators provide information about the user’s status in the Instagram community: (1) the number of followers the user reaches, that is, the number of virtual friends, and (2) the number of other users on Instagram that the user subscribed to, that is, the number of profiles or people followed on Instagram. Although both indicators are expected to reflect individual differences in the overall size of the user’s social network, the number of followers provides a specific indication of the level of popularity among other Instagram users. Very popular Instagram users also called “influencers” usually have a large number of followers, thus indicating a higher popularity. The daily use of the Instagram platform is related to the time spent on the smartphone. Daily use of Instagram has been positively associated with the number of followers on Instagram, the number of profiles followed, and the dependent use of social media due to various stimuli.

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Image-based social networking sites like Instagram have gained popularity in the recent years. Instagram has seen the fastest growth, recently reaching 1 billion active users (Statista, 2018). Since its inception, Instagram has allowed users to take photos, apply filters, and share photos with their followers, and engage in various activities on the platform. Over time, new formats such as “Instagram Stories” and live videos have been incorporated to enhance the user experience. This has contributed to a higher rate of user involvement, and to more interactions regarding posts. Moreover, Instagram has changed the way many companies operate. Instagram ensures the success of companies by accumulating a large number of followers and interactions, which lead to higher engagement rates and higher revenues. By its nature, Instagram is suitable for brands in visually displaying their products or services using pleasing and engaging content. In this regard, several formats and tools have been implemented on Instagram to encourage the creativity of posts such as filters and stories. As a result, content uploaded to Instagram is perceived as more creative than content uploaded to other social networks. Stimulus-organism-response or S-O-R has its origins in the theory of stimulus response developed by Donovan and Rossiter (1982). Stimuli have been defined as the factors that determine an individual’s response processes. Online stimuli are considered to be visual and auditory cues presented to the user. Previous research on social networks has successfully applied this framework to analyze customer responses, taking as a stimulus brand publications on social networks. Social networks, such as Instagram, are the right channels for brands to communicate their new products or services to potential customers. In this sense, the content published by a brand on a social network can increase the interest of potential customers in the brand and can encourage them to learn more about its activities, resulting in a strengthening of the links between the brand and potential customers. Instagram allows brands to post visual content such as pictures, stories, and short videos, which can be enhanced using multiple tools provided by the platform, such as image filters. Thus, brands can visually disseminate information about their products or services to potential customers. Social networks are especially important for fashion companies, tourism, services etc. due to the key role of visual aspects in promoting these areas, which leads to a higher rate of involvement. Visual posts published by a brand on Instagram activate users’ stimuli, causing subsequent organic responses and reactions. III. LinkedIn LinkedIn is the leading professional social networking platform, with over 450 million users speaking over 24 languages (LinkedIn, 2020).

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One of the strongest motivation of people using social networks is selfpresentation. In order to present themselves, social network users post explicit data about themselves, such as their life events and interests. However, academics suggest that default data transmitted through user profiles may be as important as explicit information. Default data may include aspects of users’ electronic visibility, such as the size of their social networks, such as the number of friends, and online activity, such as the number of posts, photos, and uploaded articles. Default data may include visual cues, such as background colors or photographs. In general, it has been found that implicit indications affect perceived competence, professionalism and service quality. One of the most important default data sources is the profile picture chosen by the user to be presented. These photos contain elements that give implicit guidance for managing non-verbal impressions. For example, emotional expressiveness can be conveyed through facial expressions, professionalism through the formality of the outfit, or through the prestige status of accompanying objects. These cues help the user to form impressions of the other user online, just as they do in face-to-face meetings. This is important because it has been found that profile attributes on professional social networks influence professional outcomes, such as employment recommendations. There has been very little research regarding LinkedIn profile photos, known as LinkedIn portraits. In the absence of scientific recommendations, users can substantiate their portraits following unverified advice offered on popular websites. Compared to Facebook, the most popular general social network, LinkedIn is intended primarily for professional networking, job search, and recruitment. Over the years, there has been an increase on LinkedIn to recruit users using recruitment tools, as well as tools for marketing, professional networking and public relations. On LinkedIn, the main goal is to find job opportunities and create professional connections with users and potential customers. LinkedIn provides another possible way to signal status through the type of LinkedIn account a user is using. Unlike most social networks, such as Facebook, which offers a single level of service, LinkedIn offers premium subscriptions that cost between 300 $ and 1200 $ per year, as well as the basic account (LinkedIn, 2020). These account subscriptions represent 20% of the company’s revenue, and provide users with advanced features, such as wider access to other users, and more advanced search options (LinkedIn, 2020).

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IV. Twitter Founded in 2006 in San Francisco, California, Twitter is an open social networking platform for microblogging, with 126 million daily active users in 2019. Twitter allows users to update their account status with short posts or exposures called tweets, which can be up to 280 characters long, with attached links, images or videos. The hashtag is similar to a title, being essential for connecting tweets, it includes the “#” symbol followed by a short description of the subject of the post, or a word or group of words already recognized. Anyone can search for posts on Twitter by typing a hashtag, and all tweets containing that hashtag are displayed. Users can see people using hashtags and connect with each other, creating online communities. In 2018, Twitter reached over 336 million active users (Twitter, 2020). Among social platforms, Twitter is one of the most popular and dynamic microblogging service, generating 500 million text messages per day, called “tweets”, by active users. The informal and colloquial nature of tweets, together with the ease and instant access to the platform make its use widespread, giving rise to a huge volume of data generated quickly. Twitter favors the exchange of information between users, either individuals or companies. The use of social media as a tool for engaging customers in informal ways is one of the reasons why providers are active on these applications to open new engagement networks with their customers. Focusing on microblogging, Twitter is the social networking platform that is most often used for consumer updates. Sharing information in a timely manner is especially important for companies present on Twitter because the social networking platform does not reach all current and potential customers. This is because there are other more popular platforms like Twitter, which is a potential disadvantage. Twitter can increase other social channels so that entrepreneurs can use Twitter to post a link to their blog and automatically send their Twitter messages to the Facebook page. Therefore, information distributed by word-of-mouth— WOM, is preferred by Twitter. Companies have realized the power of social media, so through WOM, information, such as reviews and recommendations about products or services, is spread from person to person, affecting both service providers and brands. Mainly, the use of a Twitter account by a company is very important. Companies that have a Twitter account monitor their account information in terms of the number of tweets and the number of followers. It is widely demonstrated that companies that want to expand their business have

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a Twitter account because the online environment is not subject to any limits. However, the enthusiasm for social media and its power to improve customer relations are not shared equally among all players. A considerable part of the industry has a rather reserved position towards social media. The downside of any Twitter discussion is the seemingly ephemeral nature of tweets. Unless the posts are deleted, the tweets remain available to anyone who wants to find them. However, finding and reading individual tweets or scrolling through a discussion at a later date does not capture the conversation or understanding of opinions. V. Pinterest The Pinterest social platform, founded by Ben Silbermann, Paul Sciarra and Evan Sharp, was launched in 2010, and since February 2012 has over 10,4 million active users and 17,8 million unique visitors. In an article in the Huffington Post, Pinterest was named the third most popular social network after Facebook and Twitter. In December 2011, 58% of Pinterest users were women, and most aged between 25 and 44 years (Experian Marketing Services, 2012). The Pinterest platform provides businesses with virtual space to share information, images about products and services, and user feedback, in an effort to stimulate consumer interest and drive traffic to their own sites. A recent trend in social media platforms that has gained widespread interest from consumers and providers is image sharing social networks, such as Pinterest. Companies communicate with consumers through images, stimulating their senses, thus being more open to purchasing the provided products or services. According to Ellison et al. (2007), image-sharing social networks share the same basic meaning, but instead of focusing on text posts on their social network, users share images or pictorials, illustrated information. Pinterest allows users to engage with friends and their social network, share images and product information, and build relationships with other users or companies. Once registered as a member, users can download software that installs a “pin it” or “fix” button directly into the Internet browser toolbar. Users can create “albums” that are similar to inspirational boards or dashboards or illustrated moods and “pin-look” images found while browsing the Internet. Panels or boards can be organized into themes, such as style or home projects, and users can create as many panels or albums as they want. For example, a user can find a specific dress or blouse that reflects their individual style and “fixes” it on one of the panels created. Once an image is “fixed” on the selected panel, users can tag or provide a title to the image, which is then shared with their social network on the site. Their social network or “followers”, analogous to the term “friends” on

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other social networks, can comment or “re-fix” the image in their panels. Each “fixed” image on the Internet is directly linked to the website from which it was originally found, giving companies the opportunity to drive traffic to their sites. Pinterest is known for attracting consumers on a large scale and for providing suppliers with a powerful marketing tool. In one study, Gilbert, Bakhshi, Chang and Terveen (2013) found that 80% of women use Pinterest, and only 20% of men use it. Women use Pinterest to a certain extent more than men, due to the stereotypical topics they find interesting on this platform. The Pinterest platform has also been called a “web form of albums and collages,” full of images featuring brands, clothing, food and recipes, destinations and art. Relationships between users on Pinterest are asymmetric. In other words, an individual can follow the activity of another user without his consent and there is no need for reciprocity. Pinterest users enjoy the platform for its organizing functions, allowing them to view their interests in one place. These asymmetrical relationships and organizing functions make Pinterest more unique compared to other social platforms. Unlike other social networks, social interaction doesn’t seem to be as important to Pinterest users. The basic behavior of pinning images by pressing the “pin” button in personal albums or panels is motivated by inspiration, organization, future guidance, and discovering personal tastes rather than exchanging personal information with others. Pinterest users do not interact with each other, but with themselves. Therefore, the motivations for using Pinterest seem to revolve more around personal satisfaction than social engagement or self-presentation. Li, Snodgrass and Kerne (2014) reached similar conclusions about the role of social interaction of using Pinterest. They thought that comments on Pinterest were rare, and social actions usually went unnoticed on the platform. While users perceive Facebook as a conversation-friendly social network, they see Pinterest as a “solitary space for brainstorming”. Because Pinterest is more likely to be used for individual user satisfaction, it can be considered a more personal and less social platform than others. By assembling images on a dashboard or album, Pinterest users can find, develop, and polish personal taste, as it can be associated with a person’s mood and values. People with low self-monitoring may prefer Pinterest over other platforms. VI. Snapchat Snapchat, launched in 2011, is a social networking platform created by Evan Spiegel, Bobby Murphy and Reggie Brown, former students at Stanford University. Snapchat was later developed by Snap Inc. It has quickly become one of the

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most well-known social platforms for teenagers and young people aged between 13 and 34 years, who use the platform several times a day. The user base of the application has grown from 46,2 million users in 2015 to 77,1 million in 2018, and to 89,2 million in 2021 (Statista, 2018). App users can post videos and pictures on “MyStory”, which can be viewed by all friends in the app. Unlike other social media platforms with extensive profiling options, Snapchat’s unique feature is that text messages, pictures or videos, known as “Snaps”, disappear after a few seconds. Snapchat works as an interpersonal platform that allows users to designate the length of time the recipient can view a Snapchat message. Because time is short and the message disappears after a set time, Snapchat is an ephemeral original social network. Although it is possible for the recipient to take a screenshot, the sender will be notified anyway, which protects the sender, allowing him to see what is actually stored. This unique feature sets Snapchat apart from other forms of computerized communication. Snapchat users have a lot of options when determining what they would like to post and for how long. For example, the user can post either a photo or a video, if he chooses the video, he has the option to edit the time, the filter and to incorporate different stickers and emoticons. As mentioned earlier, when measuring perceptions of persistence, users perceive Snapchat as having the lowest persistence of messages across all communication networks. Snapchat features, such as snap messaging and microvlogging, contribute to its overwhelming popularity. Recently, Snapchat has been examined in interpersonal and intercultural contexts, such as uses, gratuities, and communication. From an interpersonal point of view, the Snapchat platform can be used to deepen relationships and share activities in an ephemeral way. Snapchat’s ephemerality sets it apart from other forms of computer-mediated communication, and is more suited to other ephemeral modes of communication, such as face-to-face and synchronous video or voice calls. Snapchat enhanced communication between users when the snapstreak feature was created. This means exchanging pictures or videos without text communication. Snapchat allows a more intimate and personal communication, compared to other social platforms. It has been found that pupils and students use Snapchat more intensely, for reasons such as entertainment, convenience and attraction regarding this platform. However, other research has shown that individuals are motivated to use social media to earn social rewards. The snapstreak feature provides mutual social interactions, which increase the time spent on the Snapchat platform. The use of communication platforms has proven to be good for relational closeness, which suggests that using Snapchat to maintain relationships

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could generate more social presence. According to qualitative surveys of active Snapchat users, participants argued that Snapchat is perceived as more intimate compared to other social platforms and creates strong relationships and positive social experiences through users who share mundane, everyday moments with their friends or partners. Snapchat is useful for sharing everyday moments, primarily with other users in the sender’s close social circle. Close friends routinely use Snapchat to share regular content and routine events through the platform’s photo, video, or messaging features. More specifically, Snapchat is commonly used to restore and update close friendships between users or by sharing spontaneous moments in their lives. As such, the app facilitates positive moods and is “more enjoyable” than other communication platforms, positioning Snapchat as a facilitator of close and stable relationships. Snapchat users have frequently reported sending snapshots of everyday life to close relationship partners, while more meaningful moments in life may be more appropriate for other communication channels, such as Facebook or Instagram. In part, Snapchat facilitates close relationships through private and discreet communication channels, which minimizes the risk of communication being intercepted when a message is sent to a trusted partner. Social media users are more likely to present themselves in a more authentic way on Snapchat than on other platforms thanks to the applications on the site. VII. Youtube YouTube, created by three former PayPal employees in February 2005 and owned by Google in the late 2006, is a video sharing site. YouTube currently accounts for 60% of the videos watched online (Omnicore, 2019). The popular features of the platform provide more opportunities for social interaction, such as commenting on published videos and providing feedback on user comments. Moreover, Facebook has become a major way for users to share YouTube videos. As of 2012, statistics show that 40% of YouTube views take place on Facebook, while the distribution of videos among Facebook users resulted in a total of 58,6 million views in January 2011. The platform offers video sharing and streaming services and maintains significant popularity, with an estimated 2 billion monthly users worldwide, 30 million daily active users, and 500 hours of uploaded videos every minute. (Omnicore, 2019). On YouTube, both users and businesses can upload, view, and share videos. Online video streaming platforms such as YouTube offer users the ability to share content and view videos posted by others without being responsible for

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or owning them, even if the videos are intentionally downloaded and stored. A significant proportion of about 80% of European internet users watch online video content, a figure that is expected to increase (Omnicore, 2019). It is well established that YouTube has become the third most visited website in the world. Purcell (2013) reported that young adults between the ages of 18 and 34 are frequent users of YouTube, watching, posting, and sharing videos on YouTube every minute of the day. YouTube features allow users to upload and enjoy videos as well as comment and share them on other social networks. Video sharing has become one of the most popular online social media activities, with YouTube being recognized as the largest video sharing site in the world. Research also indicates that video sharing is popular due to its integration into various social media applications. In many cases, understanding online activities on social networks involves exploring the unique features of video sharing sites. The video sharing experience has enhanced social interaction between users through easy-to-use communication tools, such as the ability to share videos on social media platforms such as Facebook, Twitter, and Google, where sharing is used with features such as comments, appreciations or retweets. Afrasiabi Rad and Benyoucef (2012) investigated the idea that the promotion and popularity of videos on YouTube is based on two types of connections: friends and followers. Accordingly, the video sharing platform “YouTube” enhances online interaction between users, as it allows them to exchange knowledge and express ideas through video interactions. This promotes the perception that video-based communication is favored, building a new phenomenon for online communication. Liikkanen and Salovaara (2015) have shown that YouTube is able to attract millions of views due to the dynamic attention of the global audience. Users are more focused on sharing video content on online social networks. A particular interest in social media analysis research confirms that video sharing highlights patterns of online communication between users as part of the community and the structure of social networks. While the platform offers popular sources of material in several thematic areas, it has also attracted criticism, especially focused on content regulations. Child protection mechanisms and their apparent failures have been highlighted in reports containing up to 100.000 predatory accounts that leave indecent comments on videos. In addition, reports of indecent content and videos depicting minor characters in inappropriate situations, designed to trick younger viewers into viewing, have been reported. In November 2017, YouTube reported removing nearly 50.000 of videos documenting extremist content, however, has been criticized for an apparent slowdown in action. In addition, concerns have been

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raised about hosting videos showing anti-Semitic culture and gangs (BBC News, 2018).

3.2.5

Mobile Applications

Adoption of mobile devices is continuing at an unprecedented pace around the world, so it has become common for a person to own multiple mobile devices. As a result, the use of mobile applications has increased dramatically. Whether on the subway or at home, many people bury their heads in the “sand” of mobile screens. Mobile devices allow users to immerse themselves in a mediated world, which psychologically takes them away from the physical world. Moments of temporary mental escapades include interactions with distant friends, as if these interactions were face-to-face. This is done through social media, mobile video games, and viewing videos through mobile apps. Mobile technology developments are changing the dynamics of customersupplier relationships. Mobile applications have entered the business world mainly as a marketing tool, as they change the patterns of interaction between customers and companies. Consumers can access information about products or services and make purchases through mobile applications while away from their computer or laptop. In turn, these patterns of access and use have led to profound changes in consumer behaviour. The accessibility and growing features of mobile devices and mobile applications have allowed companies to collect huge amounts of user data. In particular, cookies and GPS, along with consumer transaction data, allow companies to track user preferences and provide accurate location-based forecasts and recommendations. When processed efficiently and innovatively, the provision of consumer data provides real-time actionable information to improve operations, facilitate innovation, optimize resource allocation, reduce costs, and improve decision-making. Recent Big Data analytics capabilities and tools further emphasize the potential benefits that companies can gain from accessing large amounts of consumer data. Surprisingly, as a central feature of today’s mobile applications, notifications now play an even more crucial role in proactively informing users about updates, upcoming events, and mobile system updates. Mobile notifications are usually delivered when data is sent, either from games, location-based services or communication-related applications. As the experiences of mobile phone users are increasingly enriched by various custom applications, they have inevitably come with greater security risks. Mobile applications have enabled new and rich features, but they also pose security risks

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to users, as mobile devices contain sensitive and personal data that applications can access and thus represent a potential security issue. It is crucial to identify mechanisms that can increase users’ awareness of mobile security and help them make informed decisions about managing the security of mobile applications. It is extremely worrying that malicious applications, which access or share more data than is necessary for the functionality or purpose of the application without the express knowledge of the mobile device owner, are frequently detected in official application repositories by both Apple and Google. Mobile applications are now used to automate many functions that help individuals, communities, businesses, and governments to be more productive, and to achieve their various personal and organizational goals. The increasing use of mobile applications has led manufacturers to develop more attractive and personalized applications for diverse customers. The growing demand for mobile applications has increased the demand for open mobile content with dynamic content and better navigation. This sharp rise in mobile usage has led most public and private businesses to switch from desktop to mobile-based services. Mobile application development is a challenging field for developers because the features of mobile phones continue to change with each new release. Mobile applications have different features that make them distinct from conventional software development, and therefore need a separate approach to development. Mobile applications and conventional applications share some identical features, but are completely different from each other. I. WhatsApp WhatsApp, launched in 2009, is the most important and used mobile instant messaging application. The application has over 2 billion users globally (Statista, 2020), and over 31 billion messages per day, of which 325 million are photos. In 2014, WhatsApp was purchased by Facebook for 19 billion $. WhatsApp accounts are created based on mobile phone numbers. WhatsApp allows its users to provide personal information and create their own digital profile. In this case, users are asked to include an image, a nickname and a status, using 139 characters in which users are encouraged to self-describe themselves online. WhatsApp provides its users with various forms of communication, namely user-to-user communications, transmitted messages and group chats. When communicating, users can exchange simple text messages as well as multimedia files, which contain images, audio and video, contact cards, and location information. Each user is associated with a profile, a set of information that includes WhatsApp name, status and avatar, a graphic file, usually an image. Each user’s profile

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is stored on a central system, from which it is downloaded by other WhatsApp users who include that user in their contacts. It is generally believed that conversations on WhatsApp share elements derived from both written and spoken varieties of the language, which is why digital conversations are considered “oral written texts”. This is why digital discourse is defined by its “hybrid” character, as most of its features seem to originate from the process of transferring oral conversation to written form and vice versa. Precisely the combination of verbal and visual and even acoustic achievements makes WhatsApp a very rich multimodal communication environment. This is why it is common to find that different elements are naturally intertwined in most messages exchanged by users. One of the most important multimodal features that WhatsApp has is that of emoticons, a set of emoticons—smileys, which can be incorporated into fragments of digital speech created by users. The WhatsApp application was also created for the desktop, opened only based on the QR code in the mobile application. The desktop version does not allow audio or video calls. There is also a separate app, WhatsApp Business, which provides tools for automating, sorting, and responding quickly to messages. It provides end-to-end encryption, which guarantees the appropriate level of confidentiality necessary for the exchange of information. WhatsApp Business is a completely independent tool. Its task is to manage various aspects of the business account, so that customers can get in touch with suppliers through Whatsapp chat. Companies enter their company data on the business profile in the application, such as field of activity, physical address, email address etc. Once they are contacted by potential customers, they will be able to reply instantly or via automated personalized messages. WhatsApp Business is an indispensable tool for companies that want to interact with their customers. WhatsApp Business can work in parallel with WhatsApp for individuals on the same device without interacting with each other. II. Viber The Viber mobile application, launched in 2010 by Rakuten Viber, is a calling and messaging application that connects users regardless of space and time. Viber is translated into over 40 languages and used in over 193 countries. The mobile application has registered over 1 billion users worldwide (Viber, 2020) who communicate with each other through high quality audio and video calls and messaging. All Viber calls and chats are protected by built-in encryption,

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so users can be sure that conversations are always secure.3 Viber accounts are created based on ones mobile phone number. Viber messages and calls are free. The application offers its users the possibility of various forms of communication, namely from user to user, transmitted messages and group chats. When communicating, users can exchange simple text messages as well as multimedia files, which contain images, audio and video, contact cards and location information. Viber allows its users to provide personal information and create their own digital profile. In this case, users are asked to include an image, a nickname and a status. There is also the desktop version of the application. Unlike WhatsApp, Viber allows transfer of audio and video calls from the mobile to the desktop. The Viber application offers more options compared to WhatsApp, such as secret messaging—“Secret Chat”, which self-destructs after read by the recipients, Viber-to-phone—“Viber out”, getting a local phone number from anywhere in the world. A very useful option in the Viber application is “My Notes”, which can be used to create lists of activities, reminders or just notes, which are synchronized and encrypted. The app also offers the option of custom stickers, which contains many editing functions. As for the business side, Viber for business offers solutions for companies, mainly due to the fact that chat functions are excellent tools for customer satisfaction. The application can be used to promote the company with Viber Public Account. Currently, Viber does not support other applications for this feature, because they have launched a new product called “Communities”. The public account offers a variety of options when it comes to business, as users can find and connect with providers instantly. It also allows users to share content with companies and create chat groups. In addition, the public account offers the ability to “follow” chat groups. Viber allows companies to have guests, followers and subscribers, and can be used on multiple devices, not just mobile phones. Viber Business-to-Consumer messaging offers a great opportunity to create a permanent connection with customers. It is an excellent tool for customer support and has great coverage. Researchers say that customers find it more convenient to send messages through apps like Viber than to call a support phone number. Viber can be used to market products and services and to interact with customers because it adds a personal touch to the communication. Viber public chat allows one to create strong interactions and real-time connections.

3

Viber, (2020), “About Viber”. https://www.viber.com/en/about/

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III. Telegram Telegram, launched in 2013 by Telegram FZ LLC and Telegram Messenger Inc., is a very popular messaging platform. According to Statista (2020), there are currently over 400 million active users each month, with the app providing secure one-on-one communication services, for large groups of users, as well as selfdestructing chats. The Telegram account is created based on ones mobile phone number. The application offers its users the possibility of various forms of communication, namely from user to user, transmitted messages and group chats. When communicating, users can exchange simple text messages as well as multimedia files, which contain images, audio and video, contact cards, and location information. Telegram also allows voice calls. Telegram Messenger is a feature-rich application that gives users access to all the features of the Telegram platform, such as: • Telegram user account—each user is identified by a unique Telegram identification code—TID, an integer value chosen by Telegram, which is associated with a phone number. Additionally, each user can optionally set a Telegram username and a profile picture, the username allows other users to find it through Telegram’s search functionality. The TID uniquely identifies the user within the Telegram system, while the phone number can be used instead to link the user’s virtual identity to the real one. The profile picture may provide additional information about the user’s identity or location. • Contacts in the Telegram application—each user is associated with a list of contacts, ie other Telegram users with whom it is possible to communicate. Telegram Messenger stores the TID, phone number, and profile picture of each contact. • Messaging—Telegram offers its users the ability to communicate one-on-one, through chats, channels, and groups, where users can exchange both text and non-text messages. Telegram Messenger manages user-exchanged messages in dialogs, each corresponding to a specific chat, group, or network. The application offers the possibility to use a secret chat, a form of chat in which the messages are encrypted during the conversation and self-destruct after a period of time defined by the user. • Voice calls—Telegram offers its users free voice calls, which, like secret chats, are based on user-to-user and end-to-end encryption channels.

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Telegram groups work just like groups in any other messaging application. The key difference is that Telegram groups can have up to 200.000 members. Managing such a group may seem impossible, but Telegram offers granular controls to make it easier. Telegram networks have the same features as groups, except that only administrators can send messages. They also have no limits regarding the number of users that facilitate the dissemination of information. Users subscribe to networks by searching the app or using network links listed on the website and elsewhere. Networks with more than 1.000 subscribers display the analysis of posts and networks. For users interested in cryptocurrencies or the financial industry, Telegram Passport is a platform that stores identification documents so that they can be used at financial institutions that require customer recognition procedures. Telegram stores end-to-end encrypted cloud data, and financial institutions can access data from a central location. When it comes to business, there are no obvious ways to create business accounts on Telegram. However, there are two ways to use Telegram for business, namely, creating groups and networks. For a business Telegram account, you can use Telegram Bot for free, for social services, gaming, productivity and ecommerce, and support. There are features in the app designed to get customers to receive or send messages to or from brands. Chat links and QR codes can be sent to existing customers by companies to stay in touch. When a user accesses a chat link or scans a QR code, they will be directed to the chat. QR codes are another option for directing traffic to companies’ Telegram business accounts.

3.3

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It is noteworthy that the loss of confidence in one segment of the economy after the financial crisis of 2008–2009 led to the establishment of many businesses in another segment based even more on trust. In this trust-based segment, consumers and suppliers who share goods or knowledge are at the center of the interaction. The most disruptive business ideas of the sharing economy are peer-to-peer business models, as they are associated with different features that enable them to enter a market and manage businesses in a manner that is distinguished from traditional firms or even business-to-consumer models. Markets in the sharing economy are expanding around an online platform-based business that competes with other such traditional businesses and firms. Person-to-person business models or peer-to-peer platforms in the sharing economy are esentially virtual networks that connect individual customers and individual suppliers.

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The market framework can take different forms when firms in the field of the sharing economy are involved. Because they generally operate on a large scale, there are usually various regional markets. The number of suppliers can vary from a few to a very large number, and the number of consumers is large, so that the markets are usually either an oligopoly or a perfect competition, the former being much more common. Companies in the field of the sharing economy turn everything into a service. Therefore, business models in this area mediate the interaction between consumers and suppliers regarding all kinds of goods, such as: • • • • •

Durable consumer goods, such as cars, bicycles or apartments; Unsustainable consumer goods, such as food in general; Capital goods, such as machinery or factory buildings; Intangible assets, primarily knowledge; Services such as babysitting, cleaning or other.

The main peer-to-peer platforms are the following:

3.3.1

Airbnb Business Model

Airbnb was founded in 2008 in San Francisco, California, and is a provider of hosting services and a pioneer of the sharing economy. It has developed in over 220 countries and regions, it lists over 7 million properties globally, has a total international number of users of over 150 million, and a nmber of hosts over 650.000 worldwide (iPropertyManagement, 2020). The company describes itself as a reliable community marketplace for people to list, discover and book unique accommodations around the world and exemplifies a peer-to-peer marketplace in the sharing economy. According to iPropertyManagement (2020), the countries with the most listings are the USA, France, Italy, Spain and the United Kingdom. Potential hosts list their available rooms, apartments or spaces on the Airbnb platform, set their own price per night, per week or per month, and offer accommodation to guests. Airbnb earns revenue from both guests and hosts for this service. Guests pay a 9–12% service charge for each booking they make, depending on the length of their stay, and the hosts pay a 3% service charge to cover the costs of processing payments. There are a variety of places and spaces on the platform, with significant differences in rental options, depending on culture and nationality. Each host

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has a photo posted, a personal statement, their own listings, customer reviews of properties, and Airbnb certified contact information. Similarly, each listing includes photos of accommodations, availability, price, brief description, capacity, check-in and check-out times, and cleaning fees.4 The Airbnb business model currently operates with minimal regulatory controls in most locations. Both hosts and guests have incentives to use signaling mechanisms to build trust and maximize the likelihood of a successful booking. To reinforce this behavior, Airbnb has built an online reputation system that allows and encourages participants to rate and review each completed stay. Guests use star ratings to assess the characteristics of their stay, such as cleanliness, space and communication. Hosts are also encouraged to post public reviews for each stay on the platform. The new review process makes it easier to provide feedback to customers, providing more valuable information. Hosts receive this feedback via email after guests have left a review. Airbnb accommodation gives guests a sense of ‘home’, building a sense of belonging. Airbnb’s philosophy is to help guests feel at home and connected with the locals. As a result, the host is encouraged to “treat guests as friends or family”, “share favourite places with guests” and “teach them something local and unforgettable”, as no one knows the place and neighbourhood better than the host (Airbnb, 2015a). Indeed, the desire for social belonging is a fundamental human need. To attract clients, Airbnb highlights a broad range of “atypical places to stay” in its marketing communication, such as “The Artist’s Mirror House,” “The Shell House on a Mexican Island,” and “Charming Castles.” (Airbnb, 2015b). People have a fundamental need to distinguish themselves from others, and Airbnb’s idiosyncratic deals offer guests special accommodation experiences, different from traditional hotel stays. Indeed, as individual uniqueness is highly valued in general, consumers tend to signal their uniqueness through distinctive consumer choices. Airbnb offers the opportunity to meet the need for uniqueness. To summarize, the core of the Airbnb concept is the “belonging” and “uniqueness” provided to the guest experience. In 2018, Airbnb launched the Airbnb Plus program, which selects only spaces that have a rating of at least 4,8 and a 95% acceptance rate for booking rates in the last 12 months. Through this program, only the entire

4

Press Association, (2018), “What is Airbnb? 12 questions answered on the world’s fastestgrowing holiday website.” http://home.bt.com/lifestyle/travel/travel-advice/what-is-airbnb11363981595930

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dwellings that meet these criteria or the private bedrooms with included toilet are made available.5

3.3.2

Uber Business Model

Uber was founded in 2009 in San Francisco, California, and is a transportation provider and a pioneer of the sharing economy. In 2015, Uber built what may be the largest transportation network in several locations around the world. It has literally changed the way the world travels. Unlike other carriers, Uber has an incredibly simple infrastructure. It does not own vehicles, does not hire drivers and does not pay for vehicle maintenance. Instead, its network is based on person-to-person coordination between drivers and passengers, facilitated by sophisticated software and an intelligent reputation system. According to Iqbal (2020), Uber is active in over 65 countries and over 600 cities globally, with over 75 million passengers, and over 3,9 million international drivers. Uber prices are significantly lower than taxi prices, however, prices depend on supply and demand, and this flexibility could lead to very high prices in some peak periods. The service can be ordered through a mobile app available for the most popular smartphone operating systems, such as iOS, Android and Windows Mobile. After downloading and registering on the app, potential passengers can check the location of the nearest available Uber cars. They can see drivers’ ratings and reviews and decide which car they would like to order. Before accepting a ride, the driver can check the profile of the potential passenger and confirm the order. After the trip, payments are made through the mobile app, meaning there is no cash transaction unless requested. Finally, both the passenger and the driver can recommend each other online to generate additional ratings and reviews. The Uber system is considered innovative and is a major factor behind its success in many cities. Uber drivers are independent contractors who use their own cars and drive whenever they want. As this activity is largely outside of tax regulations, there have been several protests against Uber’s operation around the world. Protesting taxi drivers indicate unfair competition between unregulated Uber and regulated and licensed taxi services. This has led some cities to regulate the operation of Uber. 5

iPropertyManagement, (2020), “Airbnb Statistics” https://ipropertymanagement.com/res earch/airbnb-statistics

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Despite its remarkable early success, Uber is an extremely polarizing company. Its business model is extremely disruptive, and while disruptive innovation can be a good thing, it is also true that disruptive companies tend to destabilize things. This is certainly true for Uber, which has created one of the key tensions in this case. Uber’s innovative business model avoids many of the laws that govern its industry, and while it will take some time for the regulatory system to keep up, Uber is unwilling to wait. Uber is a two-part market, drivers—supply, and passengers—demand. All the different types of travel offered by Uber are a way to provide more options to add supply and demand. For Uber, key performance indicators include “average passenger travel time” for passengers, and “average gross hourly income” for drivers. As Uber’s networking and execution effect optimizes its use in the marketplace, driver revenues increase, while the average cost to passengers continues to decline. Uber does all this while collecting data for each trip. Uber has grown the most in urban areas. However, this improvement with regards to the accessibility of car transportation in urban communities raises concerns about increased traffic congestion, competition with more sustainable mobility options and other consequences for the environment and society for the inhabitants, workers and visitors of the cities. Up to this date, transportation services remain largely an urban phenomenon, with little evidence to indicate whether these companies will be able to expand their availability of services to rural areas, where residents are more dependent on private vehicles and traditional taxi services. In Romania, Uber is active in Bucharest, Brasov, Cluj, Iasi and Timisoara.6 In addition to car transportation, Uber offers the possibility to rent scooters or bicycles through the mobile application. They appear on the map when available for booking. Before booking a ride, a QR code must be scanned on the handlebars in order to unlock the scooter or bicycle. Payment is made by card directly from the application.7 Uber Eats was firstly launched in 2014 in the U.S.A. In Romania was launched in 2018, and it is an application for food delivery, separate from the Uber application. It uses the same technology based on a mobile app that allows users to order food or travel around the city delivering food. According to Statista (2020), the number of users in the delivery segment based on peer-to-peer platforms is 6

Uber Technologies Inc., (2020), “Find Uber in cities around the world”. https://www.uber. com/global/en/cities/ 7 Uber, (2020), “Îti oferim si alte optiuni în afar˘ a de mas, ini”. https://www.uber.com/ro/ro/ , , , ride/how-it-works/scooters-and-jump-bikes/

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expected to increase to 96,9 million by 2024. There is no minimum order on Uber Eats in terms of price, and orders can be booked in advance for a predetermined date.8

3.3.3

Bolt Business Model

Bolt is a franchise transportation company headquartered in Tallinn, Estonia. The company’s services range from passenger transport to food delivery. Bolt provides fast and affordable transportation services, as well as electric scooter rentals to millions of people. Since 2019, Bolt has been operating in over 150 cities, from 35 countries in Europe, Africa, Asia and North America (Smith, 2020). The company has over 30 million customers globally, and over 1 million drivers use the platform to provide transportation services (Smith, 2020). Bolt, formerly Taxify, was founded in 2013 by Markus Villig, a 19-year-old high school student with the vision of aggregating all Riga and Tallinn taxis into a single platform. “With 5.000 euros from his parents, he provided customer support outside of regular business hours, he hired a developer to support him in launching the business, and then changed his name to mTakso” (Smith, 2020). The car service was launched in 2013, and in 2014 was expanded abroad. In 2017, Taxify started its services in London, buying a local taxi company licensed to operate, but was imposed by Transport for London to close its services. The company has registered for a new license with the intention to reopen services in London. After coming back to London, Taxify started its services in Paris and Lisbon. In 2018, the company announced the appearance of electric scooters, launching them in Paris under the new Bolt brand. The firm also exposed that it wants to release scooters in several other European and Australian cities, where the app already existed. In 2019, Bolt was relaunched in London with over 20.000 registered drivers on the platform. Bolt Food was launched first in Tallinn, with plans to develop to more cities from Europe and Africa by the end of 2019 (Bolt, 2020). Bolt provides an app that allows people to request transportation services from their smartphones. The application is available for Android, iOS and Windows Phones. Passengers must choose a payment method such as cash, credit card or pre-travel check-in. The customer requests the transport service and confirms the departure location. Once the driver accepts the trip, the customer will be 8

Uber Blog, (2018), “Bucures, ti, acum ît, i pot, i comanda mâncarea preferat˘a cu Uber Eats!” https://www.uber.com/ro/blog/uber-eats/

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able to see the driver’s name and car details. At the end of the ride, both the driver and the passenger can evaluate each other. Bolt supports the importance of customer safety. All drivers are subject to criminal control and personal training. Drivers must also be at least 21 years old and have a driving license for at least 3 years. Bolt has a zero tolerance policy against alcohol and drug use. In Nigeria, Bolt has included an emergency button for drivers who send real-time alerts to the Lagos State Emergency Response Agency. In London, an in-app emergency button connects passengers and drivers to emergency services.9 In September 2019, Bolt made public its “Green Plan”, an initiative to minimize pollution due to the transportation industry and the company. The objectives of the Green Plan encompass offsetting Bolt’s contribution and share to the European transport sector’s CO2 emissions by at least 5 million tonnes by 2025 and taking into account and adding more environmentally friendly ways to travel so that passengers have a choice. In March 2020, Bolt ranked third in the FT1000— The Fastest Growing Companies in Europe published by the Financial Times. Prior to announcing a strategic partnership with Didi Chuxing, Taxify raised more than 2 million e in investment capital from investors from Estonia and Finland. In August 2017, Didi Chuxing invested an undisclosed amount that is believed to be an “eight-digit amount in US dollars” (Smith, 2020). In January 2020, the European Investment Bank signed a 50 million e loan with Bolt. Funding, supported by the European Fund for Strategic Investments, is to stimulate the development of Bolt products in areas where technology can improve the safety, reliability and sustainability of its services. This included investment in existing services, such as the application for food transport and delivery, as well as the development of new products (Bolt, 2020).

3.3.4

Zipcar Business Model

Zipcar was founded in 2000 by Antje Danielson and Robin Chase. In 2013, Avis Budget Group acquired Zipcar for approximately 500 million $ in cash, making Zipcar its subsidiary. Zipcar is an American car rental company that provides its members with a mobile application for booking cars (Zipcar, 2020). In 2016, Zipcar announced that it has over 1 million members in 500 cities from 9 countries, who can book vehicles at any time through the Zipcar mobile app. Zipcar is available for Android and iPhone. Through the app, in less than 9

Bolt, (2020), “Bolt”. https://business.bolt.eu/welcome?utm_source=website&utm_med ium=footer&utm_campaign=bolt-business

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30 minutes, members can see the availability of a car, also locate and book a Zipcar vehicle, unlock its doors and even use the vehicle’s horn. Zipcar members can have automatic access to cars using an access card that also contains a wireless chip that unlocks the doors, car keys, and power card that are already inside. Zipcar charges a one-time application fee, an annual fee and a booking fee, and travel is charged per minute, hour and week. Fuel, parking, insurance and maintenance are included in the price. A member can book and use a Zipcar in any city where the company is present (Zipcar, 2020). Zipcar vehicles report their positions to a control center using automotive technology. In the U.S., each reservation entitles members to travel up to 290 km in 24 hours, depending on the country. After this time, between 0,45 $—0,55 $ per km is charged for more than 200 km. A higher fee is charged for premium vehicles and van rentals. Since its launch, Zipcar has signed 10.000 contracts with small, medium and large businesses, as companies increasingly adopt the on-demand car rental model Zipcar as a cost-saving alternative to employee travel. Zipcar also works with more than 600 colleges and universities in North America (Zipcar, 2020). The company offers over 50 brands and models of vehicles. Each vehicle has a home location, ie a reserved parking space located on a street, road or neighborhood car park in the member’s area, to which the car must be returned at the end of the booking period. Zipcar currently has a fleet of over 12.000 vehicles. The brands and models of Zipcar available vehicles vary by location, e.g. available online or in the Zipcar smartphone app. Most vehicles will have Zipcar logo stickers. Each vehicle has a “name” that helps the passenger identify it. Zipcar offers vehicles of various categories, such as economy, electric, hybrid, large, luxury vehicles, such as those from Audi, BMW, Mercedes-Benz and other luxury manufacturers, SUVs, trucks and vans. A Zipcar vehicle will not be unlocked for a passenger until the time of booking (Zipcar, 2020). Each vehicle records the hours of use and tachometer, loaded on a wireless central computer. The location of vehicles is not tracked during a booking for privacy reasons, but can be traced. All cars are equipped with a “kill” function that allows the company to prevent the car from starting in case of theft (Zipcar, 2020). Zipcar’s mission is to facilitate a simple and responsible urban life. Zipcar supports environmental sustainability, helps members save time and money in their daily transportation, decongests urban space through strategies that take

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into account campus, urban, residential, commercial needs, provides new jobs for talented, passionate people who thrive on change the world for the better.10

3.3.5

Other Business Models

Other business models based on peer-to-peer platforms are presented below: I. I’Velo Urban business model With the widespread use of smartphones, bicycle-sharing has become an important way to travel to many cities around the world. Bicycle distribution refers to a form of public transportation with self-service that ensures their short-term use. The flourishing of mobile communication technologies has facilitated the popularity of smart bike sharing. Individuals can conveniently download a mobile app to their smartphones, complete the registration process, locate and unlock the nearest smart bike by scanning a barcode. This new type of travel system has been recognized as a convenient mode of transportation worldwide. In Romania, the intelligent way of sharing and riding bicycles has also developed rapidly. Intelligent bicycle sharing often earns government support because it can help reduce environmental pollution and promote sustainable development. I’Velo Urban was launched in 2016, in Bucharest, Romania, and is a bikesharing platform that aims to ensure better mobility in the city, with automated stations located in the most important areas. Through the mobile application, the automated stations in the vicinity of the user and the number of available bicycles can be detected. They can be used on a 30-minute subscription basis. A user can rent a bicycle several times a day, requiring a break of approximately 30 minutes between uses. After use, it is necessary to return it to one of the nearby automated stations in the I’Velo Urban system, stations mentioned in the mobile application.11 This bike-sharing concept is unique in Bucharest due to self-service based on a subscription. It has some limitations in terms of cycling time, from this point of view it can be considered rigid because it limits users.

10

Zipcar, (2020), “Zipcar”, https://www.zipcar.com/about I’Velo, (2016), “S-a lansat I’Velo Urban, proiectul pilot de stat, ii automatizate de bikesharing din Bucures, ti”, https://ivelo.ro/s-a-lansat-ivelo-urban/

11

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II. eBay business model eBay, one of the most innovative organizations in the world, is an online auction and shopping site. eBay was founded in 1995 in San Jose, California, based on the idea of Pierre Omidyar. There are currently millions of articles available on the site, grouped into 34 main “categories,” which are listed, bought, and sold daily. In order to buy or sell something on eBay, you must first register the user on the site. To find an article, you can use the option “Search” or browse by category. The site provides simple and advanced search options. The simple option does not apply a search filter. The advanced search option allows you to automatically refine your search. eBay uses the same criteria used by search engines to personalize searches, such as Altavista or Google, using keywords. After the automatic filter has allowed the first results to be obtained, it is necessary to use the manual filter to refine the search. In this way, the user will examine each item and remove unnecessary items that the automatic filter could not remove. The item description button will provide all the information needed to determine if a particular product is desirable. One or more photos almost always complete the description of the item, giving more clues about the quality and condition of it. Another feature of the search is the option to add a list of product interests at the time of registration. The system will notify the potential buyer, automatically by e-mail, whenever an item becomes available that suits ones interests. This option is very helpful because it frees the user from daily searches and avoids losing bids for items of interest. Items can be put up for sale through two options, namely auction and direct purchase. Auction listings run for 1, 3, 5, 7 or 10 days. During this time, eBay members can submit bids or purchase the item using the “Buy now” button, if available. It is recommended that the buyers decide the maximum amount they want to pay for an item before bidding. This restricts the buyers’ tendency to overestimate the value of certain goods. Items listed with the “Buy now” symbol can be purchased at the fixed price provided by the seller, without auction or waiting time. eBay, one of the most successful electronic markets, has become synonymous with online auctions, growing rapidly, both in terms of sales volume and usage rates. In 2008, the value of sold items was 59,6 billion $ (eBay, 2020). Originally intended as a consumer-to-consumer market, more and more companies are using the eBay platform to sell their items, becoming a business-to-consumer platform.

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Thus, bidders are usually final consumers, which is also demonstrated by a clear preponderance of the bidders’ members private accounts. Due to the high potential of the market, a growing number of service providers, especially in tourism, have started to sell their services through the eBay platform. Obviously, for a growing number of hotel businesses, eBay has become an additional valuable distribution channel.12 III. Craigslist business model Craigslist, a website for classified ads and discussion forums, is the 9th most popular site in the United States (Alexa, 2015). Founded in 1995 in the San Francisco Bay Area, it was incorporated as a for-profit private company in 1999 (Craigslist Corporate History, 2008). The website provides a simple and searchable platform for people to post items for sale, as well as jobs, housing and services. Craigslist quickly attracted users and launched listings for eight other cities in 2000, including Los Angeles, San Diego, and Sacramento. By 2009, Craigslist had hundreds of listings worldwide (Craigslist Expansion, 2015). Today, it has over 55 million monthly visitors, and is active in over 70 countries globally (Business Strategy Hub, 2020). The largest section of Craigslist is dedicated to the selling items. Sales posts are generally free. Craigslist earns revenue by charging users for certain types of posts. For example, it charges employers up to 25–75 $ to advertise jobs in some cities. However, individuals and businesses can post items for sale on Craigslist at no cost, except for car dealers who have to pay 5 $ to post cars and trucks (Craigslist Posting Fees, 2015). Craigslist was the first platform to promote the reuse of goods. Since 1990, Craigslist has substantially reduced the transaction costs associated with buying, selling, and disposing of used items such as furniture, electronics, and appliances. This website has reduced transaction costs in local markets for second-hand goods, making it easier for users to post items they would like to sell and search for items they would like to buy. While people’s decisions to dispose of used goods depend on both selfish and altruistic preferences, Craigslist increases the urge for people to sell second-hand items rather than throw them away. In 2014, 54% of the users in the United States reported using “merchandise websites, such as Craigslist,” and 11% reported using such sites once a week or on a weekly basis, several times (Center for a New American Dream, 2014). Craigslist has increased the use of financial resources.

12

eBay, 2020. “eBay”, https://www.ebayinc.com/company/

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The Craigslist business model is based on the P2P (peer-to-peer) or A2P (agency-to-peer) or A2A (agent-to-agent) model. Airbnb works on a similar model. This means that any user or visitor on the platform can see ads in any of the areas where the company operates. Interactions between customers and the community help create potential networks that increase traffic flow to the Craigslist site. This is rooted in wordof-mouth or referrals, and creates new potential revenue streams and a addition to the Craigslist database that can be used for promotional purposes. Significant exposure to active communities, accounts, and users helps create potential new registrations, account activation conversions, and growing popularity and use of Craigslist. Craigslist allows one to place a single ad in any geographic location in the world for a few days or a week, often at no charge. In 2015, over 80 million classified ads were published via Craigslist each month. These statistics indicated that the ads were aimed at a very large audience.13 IV. Lendingclub business model LendingClub, launched in 2006 by Renaud Laplanche, is a peer-to-peer lending platform based in San Francisco, California. It was the first peer-to-peer lender to register its offers as securities with the Securities and Exchange Commission and offered loans in a secondary market. LendingClub is the largest peer-to-peer lending platform in the world. The company claims that loans were over 15.98 billion $ through its platform as of December 31, 2015 (LendAcademy, 2020). LendingClub allows borrowers to benefit from unsecured personal loans of between 1.000 $ and 40.000 $ (LendAcademy, 2020). The standard loan period is three years. Investors can search and browse loan listings on the LendingClub website and select the loans in which they wish to invest based on the information provided about the borrower, the loan amount and the purpose of the loan. Investors make money from interest. LendingClub earns money by charging debtors with a home tax and taxing investors with a service tax. In 2011 and 2012, the company was named one of the AlwaysOn Global 250 (LendAcademy, 2020). LendingClub is the winner of the World Pioneer Technology Award at the World Economic Forum 2012 (LendAcademy, 2020). Forbes recognized it as one of the most promising companies in America in 2011 and 2012 (LendAcademy, 2020).

13

Business Strategy Hub, (2020), „Introduction to Craigslist, Inc”. https://bstrategyhub.com/ how-does-craiglist-make-money/

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LendingClub’s peer-to-peer loans are a very simple process. It starts with the borrower applying for a loan based on a certain criteria. The loan application is then added to the LendingClub online platform. Investors can browse the loan applications on the platform and build a loan portfolio. The minimum investment an investor can make is only 25 $ for each loan. Each portion of a loan is called a note, and skilled investors build a portfolio of notes to reduce their risk among many borrowers. The credit club will perform a certain level of verification on each loan applicant. As this verification process takes place, investors can finance portions of the loans. If the applicant passes the verification, the loan is approved, being issued by the investors. If the loan applicant fails to pass the verification, the loan will not be issued. It will be deleted from the platform and all invested money will be returned to the respective investors. A loan application can be seen on the platform for up to 14 days. Most loans are financed in less than 14 days, and once financed, they will be deleted from the platform. Borrowers will receive the money in just a few business days after the financing is completed, and then start repaying the loan on a monthly basis.14

3.4

Advantages of Peer-to-peer Platforms as Business Models

There is an urgent need to reduce total resource consumption. Peer-to-peer platforms have been introduced as a high-level strategy to steer society in a way that no longer compromises the planetary ecosystem, while creating new jobs and social cohesion. In the literature, online business models are considered as concepts that promote the principles of economic transformation that will direct society towards ecological, social and economic sustainability. Sharing products or services through peer-to-peer platforms is increasingly seen as an amplifier of collaborative consumption, and automatically of sustainability. The practice of sharing products or services not only represents the principle of reuse, but also facilitates resource efficiency. In practice, however, there is a wide variety of sharing practices and business models, and the economic, social, and environmental effects of peer-to-peer platforms are widely beneficial. From the sharing economy perspective, these peer-to-peer platforms are evolving, being an economic and social opportunity.

14

LendAcademy, (2020), “Lending club review for new investors”, https://www.lendac ademy.com/lending-club-review/

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Peer-to-peer platforms as business models bring extensive benefits to society. First, by renting products or services at a low price, consumers are given access to a higher standard of living without having to buy the products or services. Second, people can enjoy greater flexibility and freedom, but are immune from embedded financial, emotional, and social obligations if they were the owners of the products or services. Third, owners of products or services can profit from the efficient use of their goods by connecting with foreigners who want such products or services through peer-to-peer platforms. Fourth, society and the environment can benefit from reduced resource consumption, low pollution and less waste. Peer-to-peer platforms as business models can actively participate with solutions to the challenges of sustainable development that arise in densely populated societies, especially in developing countries. Therewith, they can attenuate the environmental problems resulted by fast development, while utilizing inactive resources and minimizing the consumption of resources for customers. Their global use is a course of internal and external adaptation of organizational legitimacy in the context of internationalization, which helps to explain how the ecosystem gains organizational legitimacy and maintains it through social integration.

3.4.1

Collaborative Consumption

As a more generally accepted term for the sharing economy, collaborative consumption can be defined more or less along the same lines as the set of resource circulation systems, which allow consumers to “obtain” and “provide”, temporarily or permanently, valuable resources or services through direct interaction with other consumers or through a mediator. The sharing economy or collaborative consumption is a new type of economic model that has developed rapidly, being a disruptive innovation, covering many underutilized resources such as cars, music, finance and accommodation. Many platforms based on the business model of the sharing economy, exemplified by Uber and Airbnb, have a market share in their field. There is a stark contrast between collaborative consumption and conventional consumption, which involves passive consumers who cannot be granted or offered the ability to provide resources or services. In contrast to this limiting mentality, but one that has been perpetuated for decades before the rise of the Internet, collaborative consumption involved not only “consumers” but also “users” who not only “obtain” but also “provide” resources for others. Their ability to change roles from “suppliers” to “recipients” and from “recipients” to “suppliers” in a

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given context could be the most important underlying factor for this major social and economic change. The evolved consumer, also called “prosumer” (Ritzer, 2014), embraces an innovative mentality. Future generations are already born with this mentality due to technological factors. The advanced technological tools that are at hand offer a significant potential for collaborative consumption in the coming years. That being said, the trust factor remains a key component of the collaborative consumer systems. Whether it is a partner or the platform itself, all actors in the collaborative consumption should consider establishing mechanisms that provide trust. Hawlitschek, Teubner and Weinhardt (2016) say that trust is the currency of transactions in the sharing economy. With the peer-to-peer model, the collaborative consumption has the additional value chain. In this case, suppliers temporarily share their resources with consumers, either for free or in exchange for a financial or non-financial exchange. The digital platform acts as an intermediary between suppliers and consumers. Digital platforms that have led to the emergence of the collaborative consumption, such as Airbnb or Uber, are especially successful when the process becomes more efficient through technology. The processes of knowledge management are becoming increasingly dependent on the search, data collection, processing, evaluation, information and concepts that are outside the organization. Service users disseminate information regarding consumer satisfaction or dissatisfaction communicated by word of mouth, and their behavior and preferences are coordinated based on the information received from other consumers, service providers, the media etc.15 Collaborative consumption has facilitated the adoption of better practices by stakeholders about transparency, quality and sustainability. Collaborative consumption is the least criticized because it is confusing. It is more than obvious that humanity is facing a profound socio-economic change, with a multitude of triggers and cultural impacts. Humanity is actually witnessing the twilight of capitalism, determined precisely by this conjunction of innovations on the Internet and the sharing economy. He even claims that the evolution of web 2.0 technologies and social media has led to a “zero marginal cost”, which makes the capitalist concentration obsolete. But a potential replacement for an existing system is still a distant goal.

15

Onete, C., B., Ples, ea, D., Budz, S., (2018), “Sharing Economy: Challenges and Opportunities in Tourism”. Amfiteatru Economic, 20(Nr. Special 12), pp. 998–1015.

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Transparency, Quality and Sustainability

Technology is the main driver of peer-to-peer platforms, the information and reviews available on these platforms are important factors for trust, transparency and quality. For these platforms, the most common way to gain trust is a rating system in which consumers and suppliers evaluate each other after each transaction. In turn, potential consumers can check the ratings of different suppliers before making a transaction. This reduces information asymmetries by increasing the transparency of platforms. The risk of manipulation decreases as the number of transactions involving the same supplier increases. High-quality interactive engagement between consumers and service providers can reduce consumer perceived uncertainty and generate trust in service providers. In addition, feedback from consumers is important for evaluating service quality, as it allows service providers to understand how their customers will evaluate services. Also, participating in various online activities can influence consumers’ perception of the quality level of their products or services. Previous research has shown that perceived quality has a significant influence on consumer demand and on the intention to repurchase. Thus, both platforms and service providers are forced to provide quality. From a business point of view, in recent years, the legislation has been implemented with the aim of reducing waste and adopting recycling, as well as eliminating harmful materials and substances from products. However, companies differ in time and how they implement these types of practices in terms of sustainability, as well as how they engage in sustainable practices. The solutions for achieving sustainability in business are mainly found in the planning methods, impact-based processes and policies. Given the diversity of different forms of peer-to-peer platforms and the controversial assessments of the contribution of these practices, the question arises as to what the providers of these practices actually do, and how they structure their business models according to the ecological, social and economic objectives and principles of the sharing economy. By discovering the goals and ambitions of suppliers, one can find the potential of certain practices. The impact of sharing practices regarding the environment crucially depends on the type of the product or service shared, and an overview of the products and services offered by the consumer market is essential. Despite the wide range of business initiatives that adopt recent sharing practices, the existing literature focuses largely on the accommodation and mobility sectors, the most important examples being Airbnb and Uber. However, many researchers argue about why people contribute to sustainability, either as consumers or as suppliers of goods and services. Kathan, Matzler and Veider (2016)

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state that “sharing can be sustainable if green consumption is important to consumers”. If the sharing economy pursues this path of corporate co-option, it is unlikely to lead to a transition to sustainability. “At the same time, almost nothing is known about the goals and self-perceptions of people who offer or engage in these practices. Sustainability in emerging economies is usually focused on green practices that reduce energy and waste consumption. Peer-to-peer platforms do not provide goods or services on behalf of their own brand, but make accessible the existing goods and services of others, which offers them a greater degree of sustainability. Multiple use of goods determine consumers to actively participate in sustainability, although many don’t have a clue. In the field of the sharing economy, peer-to-peer platforms benefit from the formation of lasting relationships between stakeholders and better mutual knowledge, increasing communication, social life and the appetite for knowledge. Due to the increased degree of interaction that these platforms facilitate, there is greater transparency on the part of all parties involved, thus generating more sustainable and higher quality products and services.

3.4.3

Attracting Customers/ Users through Social Media

Regular use of social media and social networks has made them indispensable sources of information and content and thus attractive platforms for companies carrying out promotional activities. Companies are increasingly turning to social media, as it connects the target audience with their own brand, while facilitating direct communication. Firms are increasingly recognizing social media as a strategic resource for advertising their brands and products or services, and for building strong relationships with users. This has attracted the attention of researchers and practitioners interested in brand issues and social media platforms. As web-based technologies allow direct audience access, social media can be seen as the key intermediary between providers and consumers. The target audience of social media has no limits because the information available online can be accessed by anyone on the planet. Through stimulating and inspiring content, including opinions that arouse consumers’ interest and match their needs and desires, companies can reach out to them through social media. Given the degree of dependence sometimes generated by social media, companies have access to a wide audience, as global online activity is very intense.

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Social networks are an opportunity to spread brand information through eWOM. As an integral part of a company’s promotional mix, social media facilitates eWOM or electronic word-of-mouth branding through a variety of interactive practices and mechanisms, such as online brand communities, marketing influencers, blogging, microblogging and company-sponsored discussion forums. These practices allow companies to engage in collaborative processes of exchanging information about products or services with potential customers for promotion. The intensity of the relationship between individuals and the source can predict the likelihood that a message will impact their attitudes and behaviours. In the case of branded communities, the more consumers use social media for information, social connection and entertainment, the stronger their participation in brand communities on social media platforms, which generates brand trust and loyalty. In general, studies that apply the theory of dependence on social media show that the stronger the connection of consumers with social media, the more likely they are to be involved in purchasing activities, messages distributed affecting their behaviour. Consumers develop attitudinal and behavioural patterns as a result of interactions and knowledge accumulation from providers through social media. This interaction is a key aspect of the communication process to connect with the interlocutors, and may ultimately lead to greater involvement with the content of the messages. Moreover, in the field of consumption, when the message comes from a reference group, the individual uses the brand associated with that message as a contribution to the formation of self-concept, establishing a connection with it. Social media can be seen as a broker that mediates information from providers and then automatically spreads it to a very large number of users around the world. Social media can bring both benefits to a company’s reputation and losses due to the wide access to various online communities, with the perception of consumers and communities playing an important role.

3.4.4

Social Media—the Best Online Tool for Promotion and Marketing

Social media is ubiquitous and must be managed like all other forms of media in which companies engage to achieve their goals. However, social media is fundamentally different from any other type of traditional or online promotion, due to the structure of social networks and the egalitarian nature.

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Depending on the business areas, social media marketing goals may include, but are not limited to, generating revenue and improving customer relationships. Whether the marketing goals are to build long-term brand awareness or to stimulate immediate acquisition, online businesses seem to have a limited understanding of what social media is or how to use it effectively. Social media assists online interpersonal interactions and contributions regarding purchasing and sharing experiences about products and services. Companies can successfully engage in conversations with consumers through social networks to build strong long-term relationships, and to ultimately lead them to become indirect brand ambassadors. Through social networks, consumers engage in activities that, regardless of their intentions, can increase or decrease a company’s profitability and can influence its reputation. The impact of social media with regards to the buying behavior can be greater than that of direct advertising by the company. A multitude of ad-hoc tactics of online and social media marketing have emerged in companies, and the selection of promotional tools and networks has proven to be a critical issue for marketing strategies. Previous research has suggested that consumers perceive advertisements differently, depending on gender, impacting consumers’ perceptions and attitudes on social networks. Regarding the decision to make a purchase, a user of social networks may think that the interactions with “friends” are trustworthy, but can independently evaluate the provider’s website or the displayed advertising content. Valos, Ewing and Powell (2010) proposed that Internet users perceive and process advertisements as attractive if they contain an answer or solution to individual needs. Another study finds that the effectiveness of social media marketing is strongly influenced by the quality of messages or content. Social media is the best tool for promotion and marketing because it can capture a wide audience. However, there are growing criticisms from users about social media information practices and misuse and abuse of users’ personal information for business interests. Social media users sometimes display reactive, unfavorable responses to advertising because it is highly personalized content that jeopardizes privacy. In response to users’ aversion to advertising on social media companies and academics have studied why seemingly personalized and relevant ads are avoided. The major reasons are skepticism, irrelevance, negative previous experience and intrusion. One of the most important factors of social media is that it gives consumers the opportunity to interact with each other, generating a greater degree of transparency regarding the authenticity of advertising and suppliers. At the same time, it facilitates the long-term maintenance of the relationship between consumers

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and suppliers, thus becoming the main promoter of companies. Social media has naturally become an integral part of corporate promotion practices, as information can be disseminated effortlessly or intentionally through active social media users.

3.4.5

Social Media—intermediary of eWOM Communication

Although the term social media is difficult to define, it is considered an internetbased application that transmits consumer-generated content Applications refer to internet-related consumer activities, such as “posting”, “tagging”, or “blogging”. Consumer-generated content is considered “a mixture of facts and opinions, impressions and feelings, well-founded and unfounded advice, experiences and even rumors”. Online content is created, disseminated and used by consumers and aims to educate each other about products, brands, services and various interests. According to Bughin (2007), consumers’ main motivations for posting content on social networks have been a thirst for fame, a drive for fun, and a desire to share experiences with friends. The use of social networks has changed the way information is searched, with consumers using social media in the search for information about the desired products or services for the purchasing decision-making process. Users are targeted to social media as a result of the search activity, with social media playing an important role in influencing consumers’ behavior regarding the search for information. Marketing organizations use social media as part of their business strategy. Word-of-mouth marketing (WOM) is a viable alternative to traditional marketing communication tools and an attractive strategy for practitioners. WOM affects most consumer purchasing decisions and has virtually no cost, but delivery is faster than traditional marketing communication tools. Social media has allowed marketers to exploit WOM marketing strategies. The impact of WOM on social media has been significantly amplified in the marketplace, as a consumer can easily communicate with hundreds or thousands of other consumers about the used products or services. In addition, companies can communicate with their customers, and vice versa through social networks. WOM recommendations through social media influence the purchasing decisions of new customers. In short, social media is a driving force or a main vehicle for WOM marketing strategies. Social media has changed the paradigm of brand creation. Traditionally, the company information was available internally and the company controlled the dissemination of information. However, today, the

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available information about the company can be exploited by consumers through social networks, either by posting comments, opinions, or by sharing information. These actions result in an enormous amount of consumer-generated content that is easily formed on the Internet through social networks. A brand can be created or adapted from consumer-generated content using social media. With consumer-generated content, companies can provide a better product or service to customers and get information from consumers about product or service innovation. In addition, consumers can share company information or content with other consumers, which is a more effective way to advertise the company’s products and services than through traditional advertising. Marketers have recognized the benefit of using consumer-generated content because it helps support customers and/ or improve their image/ branding strategies. eWOM is made through online platforms, which are intermediaries for social collaboration and online recommendations, being the most important source of information about products and services. Several studies agree that the impact of eWOM on consumer decisions cannot be sufficiently highlighted. Especially for intangible products and services, the oral transmission of information plays a significant role. It has been shown empirically that the opinions in customer reviews have a considerable impact on the financial performance of the analyzed companies. Although the importance of eWOM is indisputable, there are still issues that need to be considered when analyzing the implementation and use of eWOM on the various available platforms. There are forces in the social media world that are trying to manipulate eWOM for various reasons and with different goals. Manipulation of generated user content through false reviews is analyzed by numerous studies in the fields of computer science, media and business administration. The credibility of online recommendations differs depending on the platform and many other issues.

3.4.6

E-commerce and the Trends towards Virtual Markets

E-commerce changes the way organizations perform their tasks, interact with customers and carry out their activities, in general. E-commerce is not just about buying and selling products or services by electronic means, but involves all other activities to support the sales process. Undoubtedly, e-commerce is changing the business process and the organizational structure to support the new process. Among the multitude of applications based on technology and telecommunications in the modern age, the emergence of e-commerce has the greatest impact on organizations and consumers.

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To take advantage of e-commerce, in the late 1990’s, many companies expanded their business to reach new customers and/ or offer new opportunities to existing customers. Innovations in digital and web technologies include e-commerce as a new dimension of business, as Internet technologies affect hundreds of millions of people. At the beginning of the 21st century, there has been a growth in online service offers in all areas. Consumers have been offered the opportunity to search for themselves online and to compare offers from various service providers. The Internet, considered the new sales channel, has a high growth potential for companies that have to offer goods or services. The new business dynamics through the “virtual” market have changed the world, shortening the time and distance of commercial transactions between suppliers and consumers. Global information generated via the Internet reduces geographical, social and political boundaries, while expanding and diversifying global markets. The opening of new markets is a priority for the rapid development of the use of new services and the assimilation of technological innovations. Online shopping is considered more risky than offline shopping, due to some missing elements, such as the actual interaction with the product. Users who have already had experience with online shopping will be more willing to repeat them because of the trust that has been built. Others do not want to trade online mainly because of concerns about security and privacy. In the recent years, online shopping has seen a huge increase due to the emergence of peer-to-peer platforms and market trends towards services. E-commerce giants like Amazon, Flipkart and Snapdeal have collected and explored customer data. The success of e-commerce companies now depends largely on how efficiently they capture, store and use data. E-commerce businesses can accurately predict customers’ future needs and create personalized services for them. E-commerce helps companies reduce costs, improve delivery efficiency and meet the diversification and quality needs of customers. Recently, both e-commerce and new technologies have changed consumers’ perceptions of the geographical accessibility of service providers, thus expanding their coverage of market areas. With many intangible products, such as online games, softwares, education, music, and videos, geographical distance no longer serves as a barrier to transactions. Moreover, successful transactions are also made for certain tangible products in markets with a wide geographical area. Through technology applications, e-commerce can also facilitate transactions involving products, turning them into services. However, in many other cases, overcoming distance barriers and extending the scope of the geographical market in

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e-commerce depends to a large extent on the characteristics of the products/ services and the market strategies of the individual firms. That is why, in the recent years, some companies have focused mainly on selling products and services through the online environment close to consumers. Although most of the original e-commerce took place on B2C platforms, B2B is now a much larger part of the global e-commerce landscape. It is believed that B2B will continue to grow and will be the main means of doing business in the near future, being much more dynamic, more efficient and therefore more often adopted by companies.

3.5

Negative Aspects Regarding Social Media

The term “social media” is often used as an umbrella concept that does not take into account differences between users. Each social platform has been designed and adapted for different purposes and target groups. In most cases, in addition to the products or services of any kind available on social media, these platforms were created to influence users for different purposes, observable results in today’s society. Given this aspect, it is obvious that social media has a dual aspect. It has brought both benefits and disadvantages to many users. This is largely due to the fact that their perceptions can be easily influenced if they have a low level of experience or are emotionally impacted. It has been found that social networking platforms influence the moods and decisions of users in their daily lives, shaping both their personality and their lives. For companies, the engagement of consumers with brands on social media is increasingly considered because of its potential to influence their behaviour and status. Triggering brand-related content interactions is often a critical element of a smuggler’s strategy and performance. Due to the two-way nature of social media, not only consumers can be influenced by the negative aspects of social media, but also the reputation of a company can be affected. Users’ perception of the company playes a key role, but it could also be easily influenced by other users, either individuals or other competitors. In order to understand these issues, it was necessary to examine in more detail the behaviors and emotions of online users.

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Behavioural Dependence of Social Media

Addiction is a state of constant involvement in a substance or behaviour that rewards the user, despite its debilitating consequences (American Psychiatric Association, 2013). Substance abuse or addiction involves drug or alcohol use, while behavioral addictions are related to repetitive behavior. However, researchers have recognized significant similarities between chemical dependencies and excessive behaviors (Grant, Potenza, Weinstein & Gorelick, 2010). Internet addiction is a problematic behavior, which is defined as an impulse control disorder. In the case of social media, addiction can be of two types, namely, the information overload generated by the dependence on browsing on social media, and the dependence on cyber relationships, or to form online relationships (Young, 1998). Internet addiction is a term that includes various behaviors manifested on or generated by online platforms. Consequently, dependence of social media can be considered as a subtype of dependence with regards to the internet. This involves symptoms similar to internet addiction, which are consequences associated with the use of social media, such as the concern to use social media very frequently, excessive involvement, and loss of control over use. However, dependence of social media is different in manifestation, as it does not involve the use of other Internet applications (Griffiths, Kuss & Demetrovics, 2014). Social media addiction is defined as an “excessive concern about social media, caused by an uncontrollable motivation to connect or use it, devoting so much time and effort that it affects other important areas of life” (Griffiths, 2005). Social media addiction is a general term, which allows excessive use of all social media applications such as Facebook, Twitter, Instagram, Whatsapp, YouTube etc. Of all the social networks, Facebook has gained the most popularity and accumulated the largest number of users in the world. Globally, there are over 2,27 billion monthly active users and 1,15 billion daily active users (Statista, 2019). India currently has the largest number of Facebook users in the world, with over 300 million users and is expected to reach 444,2 million users by 2023 (Statista, 2019). The frequency using Facebook is over three times a day due to its interactive nature (Statista, 2019). On average, a Facebook user spends about 60 minutes a day on the platform, and logs in 2–5 times a day (Balakrishnan & Shamim, 2013). Other studies show that 13% of Norwegian university students, 9% of German students, 41,8% of high school students in Thailand, 38% of university

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students in Jordan, 47% of students in Malaysia (Jafarkarimi, Sim, Saadatdoost & Hee, 2016) are Facebook addicted. Other research shows that 7% of Bangladeshi students and 33% of Indian students are at risk of Facebook addiction (Shettar, Karkal, Kakunje, Mendonsa & Chandran, 2017). In general, young people, students, pupils, the elderly people with low incomes and low educational levels are the populations at risk for the dependent use of social media. The inclination to develop dependence of social media depends on the active frequency of use, duration of use, exhaustiveness of use and access to heterogeneous devices. Motivation is a process that guides goal-oriented behaviours (Hogan & Briggs, 1986). A number of motivations initiate the use of social media, such as maintaining personal connections, relationships with family and friends, passing time, entertainment, and building relationships. The main motivation for using social media seems to be to build a self-identity in the realm of social networks.

3.5.2

Emotional Dependence of Social Media

Self-presentation is an attempt of presenting in a pertinent way to invoke the desired impression, which influences the results in life (Hogan & Briggs, 1986). Social media features inspire people to present themselves in many ways. The need to present oneself in an attractive way in order to impress others and to stimulate self-esteem through the appreciation of others perpetuates the utilization of social media. The exposure of existing amplified activities satisfies the need for popularity which, in turn, results the use of social media. The self functions as a social network in its relational form, so that people inadvertently compare their abilities and attitudes with others who play a role in shaping their self-image. Social networks are platforms where users present and compare their personal information and activities. Regular use of social networks allows users to compare their lives with others, therefore invoking insecurity and negative emotions. It was found that the factors associated with the use of social networks are also associated with their dependence of them. Extraversion, neurosis, low awareness is related to dependence of social networks. Conscientiousness, extraversion, neurosis and loneliness have strongly predicted dependence of social networks. Mediated personality by perceived social support is related to dependence of social networks (Zafar, Lodhi & Shakir, 2018).

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Narcissism is an excessive concern for oneself and a lack of empathy or ignorance of the emotions of others. The functions of social platforms make it possible to promote oneself, present oneself in a better light and create a positive or even idealistic lifestyle. High levels of narcissism and low levels of self-esteem have predicted the use of social networks in a dependent way. Narcissistic people tend to self-objectify and spend more time on social media editing photos. Loneliness is an involuntary state of social isolation or the feeling of being alone (Russell, 2009). Single individuals tend to use online social communication as a means of escaping negative moods. Loneliness is associated with the use of social networks. When an individual tries to reduce the frequency of social media use, they face a series of negative emotions that can even lead to self-doubt. Users in collectivist cultures use social networks less often than those in individualistic cultures. People in collectivist cultures tend to adhere to traditional cultural values, such as caring for family and friends. These cultural values shape the use of social networks. Thus, for these individuals, the online environment is a tool for maintaining existing relationships and expanding social ties, but not at the cost of the real world. These cultural values can eliminate excessive behaviors such as dependence on social networks. In collectivist cultures, parents influence and monitor their children’s activities. This safeguard can eliminate excessive and dependent use of social networks by children. People in collectivist cultures are less likely to have more devices connected to the internet, because less connectivity acts as a protection factor.

3.5.3

Reputation and Confidentiality

Just like people who use social media frequently, companies can become addicted to it if the only generated revenue is through it. Therefore, a company’s reputation is a key factor in maintaining its market position. Social media can contribute to a company’s reputation and lack of consumer confidence. The reputation of a company, product or service is essential to optimize revenue. The reputation of service providers on online platforms can be adversely affected by the biased behaviour of consumers or competitors. Customer reviews are determinants of the reputation of suppliers, and such reviews can be manipulated. Privacy issues are another important aspect. Previous studies have empirically investigated privacy concerns regarding online platforms. C2C (consumer-toconsumer) platforms, such as Airbnb, face unprecedented privacy issues. Provider

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privacy concerns will adversely affect their intention to share information about personal resources. For consumers, perceived privacy risks negatively affect their desire to book accommodation (Xu & Schrier, 2019). Security is the guiding principle of harmless electronic transactions, which facilitates the process of buying and selling via the Internet in accordance with established protocols to provide security not just to the client but also to the service provider. While companies could capitalize consumer data to stay one step ahead of the market, privacy concerns are the biggest stumbling block to monetizing this data. Concerns present critical challenges for ethical business practices. Specifically, consumers are concerned about how their personal data will be processed, stored, shared and used. Other negative aspects may be the vulnerabilities of technologies that lead to potential data leaks, hacking and data theft. All of these concerns can prevent consumers from using companies’ online platforms. Therefore, companies should implement strategies to reduce privacy issues.

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Study of the Relationship between the Consumer—Social Media—Sharing Economy

Customer retention and continued use of social media pose significant challenges for the sharing economy service providers. Given these challenges, response strategies need to be developed to deal with new situations, in order to maximize the potential of social media-based interaction and minimize possible negative repercussions. Many sectors of the emerging economies such as the sharing economy face the fact that existing business practices are not enough. These markets require a better understanding of local particularities, and consumer behaviours. Recent studies have focused on the communication content generated by social media, with an emphasis on the role of Web 2.0 (Rosa, Bocci & Dryjanska, 2019). These two-way technologies enable new forms of communication, providing new opportunities for interaction about products and services, and the dissemination of information on the Internet. They allow suppliers to influence consumers’ perceptions of products and services, by collecting information about them, and stimulating their loyalty. Social media allows users to create and share content, creating a more interactive form of communication, it generates many benefits for both consumers and providers. Today, social media is the link between the economy in general, suppliers, and consumers, and all parties involved because almost all activities are carried out online. In terms of the sharing economy, there is a close relationship between consumers, social media and the sharing economy because this socioeconomic system includes two-way peer-to-peer platforms, somehow mimicking social networks, even bringing a plus by providing products and services. Social and peer-to-peer platforms also refer to each other for marketing purposes and to expand their customer networks. © The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2023 S. Budz, Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy, Sustainable Management, Wertschöpfung und Effizienz, https://doi.org/10.1007/978-3-658-42328-5_4

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The New Consumer in the Contemporary Economy

People have always been social beings, sharing the need for interaction and belonging, being part of one or more groups, exchanging information, desires, perceptions, opinions, interests etc. This is due to the accumulation of emotions that individuals have, such as admiration, amusement, anxiety, boredom, confusion, calm, disgust, envy, interest, joy, nostalgia, romance, satisfaction, sympathy, triumph and so on. With the help of the internet and its dynamic tools, people have the chance to interact more easily and freely, as well as to find and contact other people from anywhere in the world who have the same interests to express and share their beliefs. The abundance of information has facilitated increasing intelligence and self-esteem among consumers about their desires and needs. Consumers have become more focused on quality, sustainability, pricing, sentiment and transparency. They are much more honest and trustworthy. The role of the new consumer influences each stage of service delivery. Therefore, alternatives have emerged to address these desires and views with the help of technology. New business models provide platforms where people can interact and share opinions and emotions. Consumers are looking for the best to improve their lifestyle and be happy. In order to maintain and gain trust, suppliers are required to increase the quality of the offered products and services, also to remain focused on both sustainability and reciprocity.1

4.1.1

Theoretical Landmarks in Defining the Concept of Consumer

According to the Cambridge Dictionary, the consumer is a person who buys goods or services for their own use.2 Consumers are individuals or companies that purchase products or services, they are people or other economic entities that use a good or a service. Consumers are the end users of the supply chain of goods and services. In fact, sometimes the consumer may not be the buyer (Onete, Budz & Starosta, 2018). 1

Onete, C., B., Budz, S., Starosta, K., D., (2018), “The possibility to influence the perception of quality through social media”, BASIQ 2018 International Conference Proceedings, pp. 585–593 2 Cambridge Dictionary, (2020), “Consumer”, https://dictionary.cambridge.org/dictionary/ english/consumer

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Products or services convey different meanings to different people, and consumers form different attachments to them. Consumer-product/ service relationships develop separately depending on the individuals and situations. The meaning that products or services convey may ultimately depend more on the nature of the customers than on the nature of the products. Moreover, the quality of the interaction between sellers and consumers is a strong factor in influencing consumer loyalty and perception of value. The interaction between a motivated consumer and the behavior of a seller has an impact on the emotions and behaviour of the consumer. The purchasing behaviour is the way individuals choose and purchase products. The behaviour of consumers in shopping malls has long been studied, Rousseau and Venter (2014) said that the environment in stores and the level of satisfaction are closely related to shopping behaviours. The authors stated that leisure and entertainment tend to extend the time spent by individuals in shopping malls, influencing their behaviours. The components identified as having a positive impact on consumers are sports, vacations, hobbies and nature. Lifestyle studies have been conducted with consumer behaviours. Some authors have focused on the indirect effects of the consumers’ personal values regarding buying behaviours. Chang and Liu (2009) defined purchase intent as a plan for consumers to repurchase from a specific brand or request a previously used service. Considerable progress has been made in the field of information technology in the recent years. The Internet has changed values and lifestyles, the way individuals relate socially, read news, listen to music, and book movie tickets etc., through online networks. However, one study shows that online and offline shoppers retain different values and lifestyles that influence their behaviours and intentions. Various studies have highlighted the importance of online networks for establishing customer relationships and analyzed the differences in online and offline behaviours. Distributors see the Internet as an opportunity because of its potential for growth and expansion. However, the management of online networks does not necessarily have to be reproduced in the form of an offline network, because the online shopping process differs from the offline one, and consumer behaviours also differ depending on the used channel. Online networks are more accessible and make it easier to compare products and prices, while offline channels allow shoppers to physically examine a product and make personal contact with a salesperson. In other words, companies should be interested in examining the behavioural characteristics of both networks in order to better adapt their strategies.

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The New Conscious Consumer

What consumers need are not products, but satisfying experiences. Modern consumers are more demanding, more sophisticated and populate an interactive market. They have a value-oriented philosophy, which focuses on defining, creating and delivering the value they want to buy from a supplier, recognizing the reciprocity of the benefits of both parties, establishing a symbiotic relationship. Managing the new relationship between suppliers and consumers requires an alternative approach to the command and control practices of the productionbased era. Consumers seek value because they have “the power to see and understand things, imaginative penetration, practical knowledge and awareness.” One service provider can begin the process of connecting with consumers in a way that will result a lasting competitive advantage. This competitive advantage is based on building and maintaining relationships that have significant longterm implications and therefore affect the company’s strategic and marketing planning.3 Consumers are considered the key factors in planning and implementing corporate strategies and marketing activities aimed at increasing sustainability. Sustainability concerns extend considerably beyond green consumption. They refer to equitable procurement of products and services and access to products through sharing platforms. The different facets of the concerns regarding sustainable consumption are interconnected and affect consumers’ buying behaviour differently. Researchers should provide a comprehensive approach to sustainability and a comprehensive report of many facets of conscious consumers. Sustainable consumption or conscious consumption can be defined as “consumption that simultaneously optimizes the environmental, societal and economic consequences of the acquisition, use and disposition to meet the needs of current and future generations” (Leonidou et al. 2013). Leonidou et al. (2013) introduced the concept of awareness for sustainable consumption, being defined as a state of concern about “consumption in a way that improves the environmental, social and economic aspects of the quality of life” (Leonidou et al. 2013). Because consumer empowerment comes substantially from the knowledge they gain from the Internet and other sources, the level of skill will depend on their ability to discern useful information for evaluating products and services in order to meet their time-consuming needs and desires with minimum effort and energy. Consumers are well aware of their involvement with digital technology, 3

Onete, C., B., Ples, ea, D., Budz, S., 2018. Sharing Economy: Challenges and Opportunities in Tourism. Amfiteatru Economic, 20(Nr. Special 12), pp. 998-1015

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especially social networking. Consumer interactions between and beyond their national, ethnic and geographical boundaries give them greater decision-making and choices. The freedom to interact, to approach, to support, to oppose and to criticize through social media gives consumers a proactive voice. It can be said that conscious postmodern consumers living in an age of digital culture are more adept of a number of elements, such as sustainability and quality. Digitization has conducted to the transformation and evolution of the traditional consumer into a new consumer, which is defined on the basis of several particular characteristics: selectivity, convenience, internet skills etc. Emotional intelligence is influenced by the use of new devices with Internet access, due to a large number of existing stimuli. Conscious consumers take into account the long-term effects of their choices, which is why they can be called responsible, sustainable or even spiritual consumers.

4.1.3

Consumer Perception of Sustainability and Spirituality

At present, society is increasingly focused on sustainability and responsibility. Concerns about the effects on the environment and on future generations has increased the number of research and projects related to responsible or conscious consumption. More and more companies are becoming more responsible for the effects of their products and services (Budz & Starosta, 2018). Consumers are also more attentive to what they are buying, but are still misinformed about the quality and durability of purchases or just ignore these issues due to the lack of education or awareness (Onete et al. 2018). Responsible consumers are, first and foremost, citizens for whom human rights, animal rights, welfare and the environment are important. Such citizens will always consider the effects of their choices on the environment and other beings before consuming various products (Onete et al. 2018). When choosing which products to consume or buy, they take into consideration more than their personal fulfillment following the use of the product or service and do not compare with other similar ones in terms of technical superiority—for technological products, taste—for food products or appearance—for fashion or decorative objects etc. (Onete et al. 2018). In addition to the above and value for money, conscious consumers will always be concerned about how the product or service will affect the environment and other beings through manufacturing effects, along with the company’s reputation (Onete et al. 2018). For example, between clothing produced by a company known to have an environmentally harmful production

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process and clothing manufactured by a company known for its environmentally friendly production processes, conscious consumers will always select the organic product of the clothing company. Responsible consumers are more aware of themselves and the outside world. Thus, they have a higher degree of sensitivity. This sensitivity has arisen due to several aspects, such as the development of empathic abilities, and the large amount of information available to them (Golowko, Marquardt, Budz & FoersterMetz, 2019). Instant access to knowledge and interactive communication through social platforms has facilitated the evolution of communities, implicitly of society as a whole. The beliefs and perceptions of many cultures have therefore merged, adapting, sharing and accepting different beliefs as one (Onete, Ple¸sea & Budz, 2018). The term “spirituality” is frequently associated with the term awareness and consciousness and is used more often today. Spiritual individuals are responsible human beings who generally consider their own actions. Therefore, it can be assumed that responsible, conscious consumers could be more or less spiritual individuals. In any case, it can influence large companies to reorient their production towards sustainable products and services. Consumers perceive spirituality as a factor that can significantly improve their lifestyle, and respectively, society. They understand that spirituality is closely linked to all that exists. Spirituality is a trigger for sustainability due to the awareness of spiritual individuals that everything is interconnected. Progress, quality, innovation, intelligence, self-protection, and the preservation of things have resulted from spirituality. It is the secret towards a healthy society, it is the engine of sustainability. The German author, sociologist and founder of Denken der Zukunft—Thinking about the future, Bernhard von Mutius, said that “people need a second enlightenment” and must learn to think and feel in new ways. Many consumers find that the practices identified with spirituality are similar to those for improving emotional and mental well-being, due to the connection between spirituality and inner balance. They overlap and influence each other, being an aspect of well-being. Gillett (2008) points out that spirituality refers to the search, feeling and existence of a meaningful connection with everything in the Universe, which can lead to positive emotions such as gratitude, joy, thankfulness, amazement, peace and acceptance. Carlson and Leonard (2013) said that humans have always had a tendency toward spirituality, within themselves, for nature, either consciously or unconsciously, and this can be seen as it is increasing in consumer behaviour.

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The Perception of the Conscious Consumer with Regards to the Sharing Economy

The sharing economy is a developing economic model that emphasizes the right to use and not own or possess. In the recent years, it has profoundly affected the way consumers behave and the way companies operate. The economic crisis in the period of 2008–2009 created wide income gaps for most people, who in turn recourse to the opportunities for self-employment provided by digital platforms in the domain of the sharing economy. The sharing economy model is growing and has new followers every day. This model examines the differentiation of services and the increase of competitiveness. Companies need to be more competitive in terms of growth and market visibility. This condition offers the differentiation of services and promotes competitiveness, creating attractive advantages for customers. The novelty and innovation of the concept makes it hard for some customers to agree on a single name or notion for such an overwhelming and vast phenomenon. Although they utilize peer-to-peer services from the sharing economy, most clients and individuals have never heard of this socio-economic system, th sharing economy. They are aware only of the notion of collaborative consumption. Their perception of the services offered through peer-to-peer platforms is that they are more durable, sustainable than the traditional ones from where they use a variety of shared goods. Another consumer viewpoint about collaborative consumption, which is part of the sharing economy, is that they may have access to different goods that they would not normally have had if they had to purchase them due to their income level. Also, peer-to-peer platforms offer them the opportunity to benefit from a higher level of quality and authenticity due to the degree of transparency on the platforms, the reviews posted and the diversity of the existing goods. The sharing economy gives many benefits to consumers. Some consumers argued that platforms that facilitate collaborative consumption also allowed them to experience the role of service providers, which benefited them with additional revenue. Conscious or responsible consumers will always choose responsible consumption, which can be more or less achieved in collaboration, because their perception of the sharing economy is that it facilitates all parties involved, including the environment.

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Elements of Analysis with Regards to the Consumer Behaviour

When consumers perceive the performance of a product as higher than expected, there is a positive reaction from them; otherwise, the reaction is negative. A consumer goes through a series of stages in the purchasing process. Preventive features are those related to the activities that consumers undertake before making a purchase, such as gathering information about the desired products or services. In the sales phase, activities related to the selection of products or services are carried out, such as comparing similar products or services. Post-sales features are those related to after-sales services, such as problem solving, product maintenance, consumer experiences, and other supplier-consumer maintenance activities. Kraft and Martin (2001) define positive feedback as a compliment that takes the form of an acknowledgment or expression of gratitude, and negative feedback as a complaint. Compliments are consumer-inspired communications and opportunities for companies to gain consumer loyalty and repeated purchases. Kraft and Martin (2001) state that both compliments and complaints provide ideal opportunities for sellers to reach out to their customers to improve their offers. There are clear priorities in making decisions about the choice of suppliers, because without clear objectives this is impossible. The concept of the level of quality of a service comes from the sciences of marketing and is the evaluation of a product or service based on the comparison between expectations and practical perceptions. Previous studies have indicated the importance of the quality of a service in improving consumers’ intentions to share their positive experience. In today’s online environment, available information about certain products or services can easily influence consumer perception and behaviour. Forming impressions of a supplier based on information available online generates a positive or negative perception of quality, influencing trust and future purchasing decisions. However, very little is known about what kind of reviews on social networks generate more positive perceptions, which influence the choice to choose a particular provider. Most research emphasizes the effectiveness of consumer-generated content in a variety of areas. Consumers often depend on the opinions of other consumers, affecting their behaviour and confidence. This can happen because consumers tend to rely on the opinions of others when they do not have enough knowledge or when they perceive the decision as extremely risky. In these cases,

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consumer-generated information is often transmitted “orally” and is perceived as an indicator of quality. Cox, Burgess, Sellitto and Buultjens (2009) found that when making purchasing decisions, consumers frequently look for information generated by other users, such as comments and reviews about their desired products and services. Cox et al. (2009) indicated that consumers perceive consumer-oriented information as less commercial than information from other sources. Therefore, when evaluating a service based on experience attributes, individuals will perceive consumers as more credible than providers and will show greater trust and more favorable perceptions towards them. Extensive research has shown that, in general, information posted by users or brands that have a high degree of popularity significantly affects consumer ratings and behaviours. This implies that a social page with many appreciations can generate a positive perception towards the respective provider. Consumer behaviour can also be influenced by the credibility of the information source. What is certain is that a high level of quality can lead to loyalty towards a supplier. Managing consumer relationships involves participating in consumer satisfaction/ dissatisfaction, improving the quality of a service, consumer loyalty, and addressing consumer feedback. Brady and Robertson (2001) believe that quality is a precedent for satisfaction, and argue that a positive perception of quality can lead to favorable behaviour.

4.2

Analysis of the Relationship between the Consumer and Service Provider

Given the competitive landscape and the strategic opportunity that exists in the field of customer service, firms are challenged to discover the most efficient way to improve the quality of customer service, so as not only to improve operational efficiency, but also to provide a value that distinguishes in the market. The literature supports the idea that supplier relationships with consumers play an increasingly strategic role in the service industries. Thus, the field of customer relationships has shifted from an operational tool to a strategic one in terms of relationship management. The concept of consumer satisfaction is one of the main themes of business practices, as it links the purchasing and consumption process with the post-purchase phenomenon and is essential for long-term business success.

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Providing high quality services to consumers has become essential for service providers because it can increase their sales and profitability. Therefore, customer service plays a strategic role in the market value chain of many organizations. Consumer loyalty as a marketing concept and practice has received increasing attention because it is associated with customer satisfaction and profitability. In general, loyalty is defined as a commitment to one’s preferred product or service. Loyalty involves a deep commitment to a brand. Loyalty has been and is one of the elements that facilitate the relationship between consumers and service providers.

4.2.1

Communication and eWOM

Interactions with peers are fundamental human acts that flow from the satisfaction of psycho-physiological and sociological needs. Communication efficiency is determined both by understanding the message and by getting the desired response from the receiver as a response to the message. In a global marketplace of high dynamic and fierce competition, companies are trying to find the most effective way to be heard so that customers understand the benefits that can be gained from consuming or using the products or services. Consequently, communication for marketing purposes has become a fundamental aspect of companies, a business vision and a key factor in successful marketing communication. The importance of communication has grown dramatically in the recent decades, being an indispensable factor for the success of a company. The Internet is a revolutionary technological transformation in the history of human communication, with simultaneous real-time connectivity between an unprecedented number of participants. It is the fastest broadcasting technology in history. In just a few short years, the Internet has intensely transformed the behaviour of social, cultural, educational, health, government, economic, and communication activities. What is more significant is that the transcendental impact is coming. To inform customers about their products or services, providers use various communication tools, such as social media. Online information sometimes allows consumers to better assess the quality of products or services in order to avoid incompatible products or services. As social media allows for a more global approach and facilitates two-way conversations, marketers are increasingly taking advantage of the use of social media by consumers to promote their business. Today, social media is a great

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opportunity for communication, as the interactive and social features of these sites have helped drive companies to new levels of openness and transparency. Online platforms allow socializing through virtual communities between people who know each other or not. Communication between consumers affects their cognitive, emotional and behavioral attitudes. Through socialization, consumers learn skills, knowledge and attitudes related to the consumer market. Lyon and Montgomery (2013) argue that the emergence of social networks has changed the way companies communicate about their products and services. Lee, Dolen and Kolk (2013) suggest that social media helps to create awareness of the consumers’ wishes and needs, as internet users are free to share their views with regards to certain products or services without the consent of their suppliers. In addition, Du and Vieira (2012) suggest the use of social media platforms to communicate because these platforms help reduce public skepticism about various companies, and about the level of quality of the products and services provided by them. Social media provides an opportunity for companies to engage in conversations with consumers or stakeholders about what they offer. However, limited research has been done about the factors that influence consumer involvement in communication with suppliers. Social media provides consumers with a communication channel to share their opinions, desires, needs and experiences. Consumers’ attitudes towards social media providers may refer to their decision to engage in communication with them. Social media also facilitates the eWOM process, as information provided by other consumers is perceived as more reliable and credible. Consumers also have the ability to disseminate ideas and information. Thus, consumer-to-consumer communication can have an impact on the interaction with service providers. The concept of eWOM or electronic word-of-mouth is defined as “any positive or negative statement made by potential customers, real or former, about a product, service or company, made available to a large group of people and institutions via the Internet” (Hennig-Thurau, Gwinner, Walsh & Gremler, 2004). eWOM is a new form of word-of-mouth communication—WOM, which refers to the online exchange of information between consumers. Consumer behaviour towards a brand, posting comments and writing reviews is a form of communication in today’s digital society. Hollebeek, Glynn and Brodie (2014) define social media involvement as “a brand-related cognitive, emotional, and behavioral activity of the consumer during the consumer-brand interactions”. Today, communication is an important factor because it underpins interpersonal and business relationships. Social media has revolutionized eWOM because it has provided the opportunity for communication to take place without being

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limited by space and time. Many customers now rely on social media to provide feedback about the products and services they have used and to communicate their needs and concerns.

4.2.2

Transparency, Trust and Ethics

Transparency, trust and ethics are key elements in building and strengthening the relationships between service providers and consumers. Today’s digital environment supports a huge number of interactions between suppliers and consumers, being an important marketing channel. To be ethically attributable, the marketing activities of service providers must be honest and authentic in their relationship with consumers. The credibility of a supplier is a key factor for a consumer to perceive a high level of transparency. A general definition of transparency refers to “the extent to which an entity discloses information about its own decision-making process, procedures, operation, and performance” (Grimmelikhuijsen & Meijer, 2012). Transparency may involve disclosing a company’s business activities, such as corporate social reports or information about decision-making processes or operational issues. Although rigorous conceptualizations are still lacking, the concept of transparency has clear positive connotations. Transparency also involves feedback from consumers, in the form of clear, accurate and relevant responses, which indicate to service providers clear opinions and views about the perceived quality of services. Reciprocity with regards to transparency helps participants align their perceptions and strengthen their relationships. The integrity of suppliers includes their credibility, fulfillment of promise and trust, perceived by consumers. Research in the field of business ethics describes transparency as an organizational goal. Ethics is derived from the Greek word “ethos”, which means the fundamental orientation of a person towards life. It can be explained as a theory of morality that seeks to establish moral judgments (Paswan, 2015). Business ethics is of paramount importance. If a supplier wants to be seen as trustworthy, he must apply the elements of this concept, or even this concept itself. Thus, a service provider is obliged to fulfill its responsibilities towards stakeholders and especially towards consumers. Transparent and ethical behavior builds mutual trust and contributes to sustainable development, taking into account the expectations of stakeholders.

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Quality

Consumers globally are becoming increasingly aware of the importance of high quality products and services in improving their lifestyle. One study found that 73% of young consumers are willing to buy premium products or services at higher prices for their own well-being (Nielsen, 2015). The huge increase in demand for quality products and services reflects the growing expectations of consumers towards the responsibility of service providers. These expectations have stimulated suppliers to place more emphasis on quality and sustainability. When faced with various options, consumers have different perceptions of quality. In addition to consumer preferences for different quality levels, there are other relevant factors that suppliers should take into account when making their own offers. These factors include cost structures at each quality level, competition concerns, and so on. Services in general tend to be performance-oriented, thus making precise specifications for better quality more difficult to implement and measure. The quality of services has been shown to result in significant benefits, such as increased profitability, lower costs, and increased market share for suppliers. Providers assign considerable importance to high service quality, as evidenced by firms that use the quality of their services to strategically position themselves in the marketplace. As mentioned earlier in this paper, the quality of services affects the purchasing intentions of consumers. Zeithaml et al. (1996) report a strong influence of high service quality on customer behavioural intentions, which was measured as a customer’s willingness to stay with the current provider. Today, service providers need to provide an unprecedented level of one-on-one service to consumers, which requires many associated “soft skills”. Service providers are taking on an increased strategic role in business, ensuring a critical link in the value chain that connects them to customers.

4.2.4

Loyalty and Recommendations

Companies are increasingly looking for ways to engage consumers through social media. Social media provides an opportunity for service providers to strengthen their brand and connect with consumers. Vendors encourage customers to distribute brand content in order to build their loyalty. Thereby, one of the challenges for service providers is to create appropriate social media content strategies to lead their audience to engage in online interactions.

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However, providers have lots of options in terms of the content they include in their social media posts. Service providers are better known by their brand name than by their products. A stronger brand name helps the target audience reduce the perceived risks associated with services that arise due to the intangibility and heterogeneity of services. Brand names have a significant impact on consumer decision-making, as names can portray several functional and emotional traits, such as quality, value, credibility, identity in the minds of consumers. Consumers often affiliate with brands that have a high affinity with their identities or with the identities they would like to project in the eyes of others. Customers often use social networking sites to share branded content with other users in order to manage their own impressions. Social media provides a unique environment in which consumers not only have the opportunity to share their experiences and information about services and service providers with other consumers, but they can interact directly with companies. Thus, consumers create value independently, because value creation is influenced by the interactions with other consumers. For service providers, such brand interactions with customers are useful because they can help the brand. Thus, service providers need to create appropriate content strategies that encourage consumers to distribute and recommend content. Mentioning the name of the provider in the content is an important factor to consider when creating posts on social networking sites. Vendor names could activate consistent features and concepts of brand identity, thus influencing consumer behaviours. Because brands are seen as an extension of self and personality, they tend to provide psychological value to customers by showing their motivations for their personality and identity. Consumers use brands to signal who they are to others. The affinities to certain products, services, destinations etc. are no exception to such behaviours, where consumers feel a strong familiarity and joy, being determined to share these feelings with others through social media.

4.3

The Effects of Social Media on the Consumer

Social media has been identified as websites created for the purpose of exchanging different information and opinions and to allow for spontaneous discussions. This kind of fluid discussion diminishes the ability of service providers and technology to control the nature of public discourse and consumer perception. Cultural differences impact the use of social networks. Abbas and Mesch (2015) found a positive association between collectivism and the desire to use

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social networks. In collectivist cultures, individuals invest more time caring for family, friends, and the community. These social motives are gratified when they engage in social networking. Therefore, members of collective cultures perceive social networks as a means of facilitating to maintain existing relationships and to expand other social ties. When individuals consider themselves interdependent, not independent, they tend to focus on improving social relationships. These individuals receive bonuses after using social networks to strengthen their relationships. Consumer exposure to brand information as well as consumer participation in social networks is done voluntarily, which leads to increased efficiency of social media marketing. Although digital communication has many advantages, it can negatively affect emotional intelligence. Excessive time spent on social networking pages is an indicator to highlight that some users do not control their emotions in the real world and externalize themselves in the virtual environment. Moreover, the excessive use of virtual socializing and posting suggests depersonalization.

4.3.1

Factors that are Influencing the Conscious Consumer

According to the Cambridge Dictionary, consumerism is defined as the state of an advanced industrial society in which a lot of goods are bought and sold.4 It also means protecting the interests and rights of consumers. According to the Business Dictionary, a consumer is the buyer of a good or service.5 Digital consumers are immersed in an exciting vortex of innovative applications, products and business models. The value perceived by consumers is the foundation and the essential construction in all relational exchange activities and is a critical influencing factor for repeated buying actions in contexts related to online shopping. Thus, it is crucial to identify the factors that affect consumers’ perception of value. Taking into account the moral side of the digital business environment, the question arises whether technological development increases the level of consumer manipulation. In particular, the question arises whether one benefits from the fact that in a virtual environment, people can be easily influenced by true or 4

Cambridge Dictionary, (2020), “Consumer”. https://dictionary.cambridge.org/dictionary/ english/consumer 5 BusinessDictionary. “Customer perception”. http://www.businessdictionary.com/defini tion/customer-perception.html

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false opinions and testimonials, created for marketing purposes, to increase sales of products and services. Consumers who shop online tend to read forums or even comments previously left by people who ordered and tested the products or services posted on a site. Thanks to the freedom of information and easy access to the Internet, as well as the continuous flow of information, modern consumers are learning to be selective in their choices. Thanks to the Internet, its use has expanded and shows a clear increased trend of the share of service users on social media. There are companies that seek profit by creating an image of responsibility as a marketing element. On the other hand, there are companies that put moral principles in e-business. It is known that emotion is a conscious state of arousal, generated by the satisfaction or dissatisfaction of human needs. A successful advertisement is created to affect all the consumer’s senses: hearing, sight, smell, touch, taste. Manipulation takes place on several levels, for example, relational, normative, emotional, visual, olfactory etc. Advertisements are primarily aimed at emotional manipulation, whereby the effect is as expected and the message conveyed is understood accordingly. The more targeted the audience is, the more the ad achieves its purpose. Also, a stable relationship between the sender and receiver creates a greater emotional experience. The purpose of an advertisement is primarily to implement the information and desire to buy in the unconscious mind of consumers. Even if they are short-term memorized, they are broadcast repeatedly. Memory is the maintenance or activation of a network of interconnected neurons. Whenever an image or word is exposed to the human brain, a part of this mental network is activated, generating a certain thought, feeling, word or image. Through advertising, marketers highlight the qualities and strengths of a product or service. For years, consumers have been influenced by buying choices. Thus, each company tried to create a better image, in some situations, even distorted. The current market for services is extremely competitive, and service providers are working not only to attract new customers, but also to keep the existing ones. However, as the cost of acquiring new customers is significantly higher than the cost of retaining the existing ones, encouraging customers to continue to use a particular service is a key task in achieving sustainable competitive advantages that help ensure long-term prosperity of these firms. Researchers have emphasized the importance of the quality of services in procurement and customer retention (Ifie, Simintiras, Dwivedi & Mavridou, 2018). When consumers consider the quality of a particular service to be high, they will be less likely to have strong motivations to look for alternatives. Some researchers

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highlight the importance of adapting different features related to the quality of services to their needs and expectations in the context of online services and point out that consumers’ assessment of this could significantly influence their decisions regarding the continued use of those services. Satisfaction, which is formed on the basis of past experience by interacting with a particular online provider or service provider, is a necessary but insufficient criterion to ensure that consumers intend to repurchase from the same provider or continue to use the same service. Consequently, in order to discourage the changing behavior of service consumers, other forces need to be found to help create strong links between consumers and services.

4.3.2

Consumer Reaction towards Online Content

With the popularity of the Internet, online user reviews are becoming a powerful source of information in the consumer market. Online consumer reviews are posts that include personal opinions about the products or services that consumers use. These products, services, or retailer reviews are searched for or found by other consumers interested in those products or services. Online reviews tend to contain both objective and subjective information. Objective information corresponds to the description of the products or services offered by the company. Subjective descriptions provide more information about product use or service consumption, and can often be based on experiential knowledge. Consumer feedback is considered more reliable than company-sponsored advertising. Consumers can learn how the product is used and how it works through experiences written by others. Reviews are a combination of other consumers’ experiences, they may provide information about determining the quality of products or services. The popularity of a product, generated by a large number of positive reviews posted by previous consumers, can encourage potential customers to make a purchase decision. Similarly, negative reviews provide quality information not only to consumers but also to manufacturers or suppliers. As far as consumers are concerned, negative reviews help reduce the risk associated with uncertainty so that they can make a more informed purchasing decision. Park and Lee (2009) found that the effects of negative online consumer reviews were more influential on purchasing decisions than those of positive reviews. In addition, the effects of online consumer reviews were stronger for websites with a better reputation than those with a lower reputation, indicating that the positive reputation of the website or provider contributes to credibility in the context of

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online reviews. Moreover, the empirical study by Sen and Lerman (2007) revealed that the influence of the consumer online reviews of products or services varied by product or service category. Desire for human needs motivates behaviour that meets these needs.

4.3.3

Consumer Reaction with Regards to Online Promotion and Marketing

Social media has become the most popular communication tool for both service providers and consumers. Service providers see social media as a marketing channel to increase the use of services among current and potential customers. According to Chaykowski (2015), more than 50 million companies use Facebook. Among these efforts, the most popular uses of social networks are the pages marked by service providers where they post marketing campaigns and updates about their offers. Social media transforms marketing approaches, enabling companies to understand consumer behaviour and preferences, to predict demand and to interact with customers. Social platforms can create a community of consumers in order to discuss and share ideas about certain brands, products or services. Social media allows companies to develop new methods and techniques for communicating with customers and suppliers. Unlike traditional media, providers can use social media to design marketing messages to communicate simultaneously to millions of consumers. Social media can serve as an useful tool to help companies maintain a positive image and survive market turmoil. Consumers often share personal experiences and feedback about service providers on social media pages. Consumer involvement focuses on their interactive experiences. These interactive consumer experiences are the result of the emergence of the computermediated marketing environment due to the advancement of technology and the rapid expansion of the Internet. Research is needed about the use of technology for rapid market adaptation, which can provide valuable knowledge for practitioners. However, the advancement of technology and the adoption of the internet have given rise to various innovative and unexplored platforms, which have made engaging practices complicated. As a result, understanding how consumers engage in the marketing activities of organizations in an online context is crucial. The concept of consumer engagement is gaining popularity in order to capture their attention. Consumer engagement refers to the involvement of consumers in

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“interactive and co-creative experiences” to participate in a company’s activities. Consumer engagement is the degree of intensity of a person’s participation in the connection with the offers or organizational activities of a company, initiated by either the customer or the organization. Consumers go beyond the level of awareness of suppliers, the level at which they could interact with them online or offline. The concept of consumer reaction is often theorized as behavioural intentions that later turn into real behaviour. Consumer feedback expresses and predicts consumers’ intention to trust or not the information provided by various companies online. Consumers can accept that information as real, later changing their intentions based on other online stimuli. Factors that influence consumer reaction include risks, marketing and advertising, social issues, price and quality issues. Age and income must also be taken into account. The concept of evaluating products or services and benefits has different names depending on the field of research. Consumers react to the nature and price of a product or service, as well as its quality level or the quality of information provided by companies. In general, the quality of the information should be in concordance with the quality of the product or service for better trust. The evaluation of the product or service is based on an estimate of the benefits obtained after use, or the perceived benefits before purchase. Consumers’ emotional response to marketing stimuli may be related to the hedonic aspect, satisfaction or the degree of entertainment. This will affect the reactions of consumers according to the emotions they feel that can range from negative emotions such as frustration, anger, anxiety, fear, sadness, disappointment, disgust, guilt, shame, contempt, envy, jealousy, to positive emotions such as joy, pride, hope, love, and fun. Today, consumers are bombarded with a variety of messages every day for marketing purposes. Their reaction to this aspect differs depending on their personality and tastes. If they resonate with the company, brand, product or service, the reaction to online promotion can be positive, directing consumers to purchase. Consumers tend to respond to different stimuli, depending on their expectations. In some cases, these expectations are based on past experiences and provide consumers with a basis for assessing current stimulus intensities. The more consumers are attached to a brand, the more positive they will be about a company’s online promotion.

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Peer-to-peer Platforms, Tools of Influencing the Consumer’s Perception of Quality

Social media sites offer consumers the opportunity to communicate, as well as access to information about various products and services. Innovations for quality improvement can have a positive or negative impact on service ecosystems. Digital information and service delivery involve the use of online resources and platforms. Marketing communications are essential for launching, accepting and adopting innovations in the service ecosystems. Although business-to-consumer (B2C) communications play a key role, marketers are going beyond B2C information flows and dyadic relationships to digital marketing platforms that allow consumers to create and share information with each other, thus co-creating value. Service experiences have advanced from “one-toone” communication and engagement processes to “many-to-many” processes. The transition from B2C to C2C has impacted consumers’ perceptions of services and purchases. In order to remain competitive in the markets, value co-creation has recently emerged as a major force for enterprises. Prahalad and Ramaswamy (2004) refer to the co-creation of value as a holistic management strategy or initiative that brings together different parties to produce appreciated results. The approach of co-creating value is capitalized by companies not only to gain a competitive advantage, but also a corporate reputation and brand value. According to the dominant logic of services, consumers are at the forefront of co-creating value with companies. Moreover, the dominant logic of services states that services and not goods are the unit of exchange and that the reciprocal actions of consumers and service providers result in value creation. This understanding has led companies to give consumers a more active role and, conversely, companies are increasingly involving consumer processes in the development of their services and products. Vargo, Maglio and Akaka (2008) state that the creation of value is, in principle, a process based on the joint efforts of companies, consumers and other stakeholders, so that dependence and reciprocity are crucial for defining interdependent roles, which, consequently, they are related to the production and service of value creation. To ensure the efficient delivery of personalized services, consumers need to learn how to use, maintain, repair and adapt their offers to their own usage situations, unique needs and behaviours. A vision aligned with the understanding of the nature of the sharing economy is the value created primarily in networks. Consequently, peer-to-peer platforms are based on the principle of consumer involvement and participation.

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Peer-to-peer platforms exist because of the social support they receive through consumers and the relationships they develop. In other words, peer-to-peer platforms will cease to exist only if there are no longer participants. Because consumers of peer-to-peer platforms are proactive, they can participate in service conceptualization, testing, design, and marketing of products or services. Indeed, as so many consumers search for, and provide information through these platforms, it can be inferred that brand value is facilitated by online consumer trends and behaviours and that this value can be created by leveraging support available through these platforms. Subsequently, support through peer-to-peer platforms, developing good customer relations and creating value can be major challenges for service providers. Taking into account the above, peer-to-peer platforms can influence consumers’ perception of quality, as the fact that there is an almost constant interaction before purchase and in the consumption process, resulting in a higher level of consumer confidence, influencing their perceptions of quality. The degree of transparency of peer-to-peer platforms, the number of reviews and ratings also influence consumers’ perceptions of quality.

4.3.5

Consumer Reaction in Relation to Other Consumers in Terms of Transparency and Quality on Online Platforms

Online platforms attract millions of users, many of them integrating them into their daily lives and business practices. Moreover, online platforms allow users to connect with other consumers, and add them to networks of friends, which facilitates communication. Online social networks bring change in consumer behaviour. The determined change also applies in the decision-making process regarding various acquisitions. One of the main problems with the relationship between platforms and their users is the lack of transparency in the rules and practices of online platforms. According to a survey conducted by Hausemer, Rzepecka, Dragulin, Vitiello, Rabuel, Nunu and Diaz (2017), 60% of consumers are unaware or unsure of their rights and responsibilities in platform transactions. About 40% of consumers who also provide services say they do not know or are unsure of their rights and responsibilities, and about 30% think they know more or less (Hausemer et al. 2017). At the same time, about 85% of consumers consider it important or very important that online platforms offer a high degree of transparency regarding

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intermediated services (Hausemer et al. 2017). Providers grant a similar importance to the degree of transparency regarding the services mediated by online platforms. A greater degree of transparency is also needed in pricing practices. Search results on many online platforms do not provide the full price, with fees on the platform ranging from 10% to 25%, which are often added only at the booking stage or at the time of purchase (Hausemer et al. 2017). Confidence-building tools for ensuring the quality of goods and services and the reliability of suppliers are found in rating and reputation systems based on reviews and ratings on online platforms. Users of online platforms do not systematically use reviews and rating systems and do not always trust them. In addition, most platforms do not seem to systematically monitor whether reviews or ratings are generated by real users or not. Moreover, many platforms do not offer these basic services to build trust. The value of the perceived quality by the consumer is defined as the utility derived from the expected performance of a product or service. Previous research suggests that consumers’ perceptions of the value of a product or service contribute to their overall well-being and may have a positive impact on their level of motivation and behaviour toward purchasing it. The perception of quality can be created without having a real experience with a product, service or company. In the context of online shopping where the product is like a service, ie not physically available and cannot be felt or touched by the customer, the perception of the value of quality can be generated by interactivity, usability, reliability, security and content quality of the online platform. Researchers said that the perceived value of the quality of the product or service in an online transaction can affect the consumer’s attitude toward a company or platform and, in particular, the desire to buy, which can lead to improved psychological well-being of the consumer. The higher the transparency of the information displayed on the online platform about the intermediated products or services, the more positive the consumers’ reactions will be regarding the online providers and platforms. Consumers tend to follow other consumers when it comes to the online environment because they seem to be more credible sources, especially if they have already tested those products or services. Dissatisfied consumers express their opinions online more often than the satisfied ones. Thus, taking into account the opinion of other consumers, and the information about the online platforms, they can decide about the quality of a product or service displayed on the platform, the degree of its transparency regarding the information provided and the degree of concordance between them. If they coincide, it results in a higher degree of trust and satisfaction with suppliers and the online platform.

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Research Regarding the Connection between Social Media—Sharing Economy—Quality

There is a deep interconnection between social media, the sharing economy and quality. Through social networks, fast online shopping and the sharing economy with its collaborative consumption have emerged and expanded, facilitating communication, sharing and relationships between users and suppliers. The firms that have contributed to the expansion of this economic model have increased the quality of their products and services, making them more sustainable. New jobs or methods of collaboration have also emerged.

5.1

Quantitative Research Regarding the Implications of Peer-to-peer Platforms towards the Consumer

The present research aims to identify and examine the relationship between social media and the quality of services in the context of the sharing economy. The level of influence of peer-to-peer platforms on the consumer perception has a very important role in today’s online environment, impacting decision-makers considering purchasing and perception. The transparency of peer-to-peer platforms provides a higher degree of trust due to information available from several sources.

Supplementary Information The online version contains supplementary material available at https://doi.org/10.1007/978-3-658-42328-5_5.

© The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2023 S. Budz, Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy, Sustainable Management, Wertschöpfung und Effizienz, https://doi.org/10.1007/978-3-658-42328-5_5

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5.1.1

Research Motivation, Purpose, Objectives

This research has an interdisciplinary approach to the economic and psychological effects of the consumer, the manner in which the consumer’s perception of the level of quality of services can be changed through social media. Social media has fundamentally changed consumer processes as the decisionmaking cycle is now moving towards online service agreements in all areas. Smart distribution systems for social networks are the future of emerging brands, noting that this changing digital environment is influencing the entire service delivery system. Technology and new penetration of channels will drive business applications into the new dimensions of product and service innovation, and that economies are now on the verge of entering new dimensions and will require a cultural effect through innovation. The characteristics of the company, the market and the range of choices that a service offers will influence the opportunities for international expansion of the entity. Technology-based systems and e-business networking solutions create an easier way to enter new markets, giving service providers and other businesses more reasons to expand into international markets through technology. The market orientation is based on the whole company, and the service sector is considered the most important contributor to the global economy. Social media platforms provide powerful virtual meeting places for consumers to interact not only with brands, but also with other consumers, to engage in collaborative processes. Social media has huge potential for brands to build a lasting connection with consumers, by encouraging a sense of belonging, through interpersonal interactions and through dialogue. This leads to the merging of unique communication skills with consumers’ feelings of belonging or “social relationships”, which can be essential for both involvement and brand-consumer relationships. Based on the theory presented above, the paper aims to identify both the degree of the influence of social media on the quality of services and the relationship between the demand for peer-to-peer platforms, economic growth and information and communication technology, using the simple linear regression model, for panel data, similar to that presented by Baltagi (2005) and Greene (2008). Also dependent variables were chosen, such as gender, age, education, income and professional status, and independent variables such as the frequency of online purchases, the degree of influence of foreign recommendations on online shopping platforms, quality-price preferences, use of services provided on peer-to-peer platforms, openness towards purchasing services on peer-topeer platforms, familiarity with the term product-as-a-service, openness towards

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buying a product-as-a-service, sustainable behaviour, preferences regarding informational tools, the frequency of searching online reviews, the transparency degree of peer-to-peer platforms. This study was divided as follows: dependent variables and independent variables were prepared, four hypotheses were made that can be refuted or confirmed based on the management of scientific research methods, and the survey methodology was used, ie questionnaire and interview. The objectives of the research are presented as follows: General objective: The study regarding the influence of social media on the quality of services in the sharing economy Objective 1: Objective 2: Objective 3:

Delimit the consumer’s perception of quality. Interpretation of the degree of transparency and trust of peer-topeer platforms. Observation of consumer behaviour regarding procurement, sustainability and social platforms.

In order to realize the 4 hypotheses, the method of empiricism was indispensable, ie the study of the theory, and the schematization of the elements useful for the delimitation of the research field. Hypothesis 1: Hypothesis 2: Hypothesis 3: Hypothesis 4:

The more influential the consumer’s perception of quality in the online environment, the more their behaviour will change. The degree of transparency of online platforms influences the level of consumer confidence. The higher the consumer’s awareness, the more one tends towards more sustainable products and services. Differences in gender, age, education, income and professional status have different impact on Internet use.

This subchapter is conducted in accordance with scientific knowledge. Knowledge theory or methodology provides answers to questions about the origin and importance of scientific knowledge. Epistemology or methodology is strongly related to the existential side of metaphysics, more precisely to phenomena, processes, things, facts, properties of human existence. Through the methodological framework, using the theoretical foundations, principles and methods, value is given to scientific knowledge. Legendre (1993) states that epistemology is a thorough research of knowledge regarding the proposed theory, principles, theory of knowledge, methodology, conclusions and validation features. It should be

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noted that the inductive method of scientific knowledge or epistemology has been applied to the development of this research. Epistemology is based on two methods: inductive and deductive. The inductive method includes the examination of a logical judgment, ie from particular to general, or from effect to cause. A theory is verified on the basis of a particular situation. The deductive method involves proving assumptions starting from a generalized theoretical framework to something particular.1 Considering the effects caused by the influence of social media on the quality of services, an attempt was made to investigate the interdependence between peer-to-peer platforms and the quality of services. This relationship was made using empirical research, based on the analysis of the surrounding reality.2 In order to better outline the research methodology, it was started with a working model that describes all the distinct steps in conducting a scientific research. As indicated above, the work problematic was realized in a first stage. This was addressed by an incipient question that verifies the SMART criteria of a goal: Specific, Measurable, Affordable, Realistic and Time.3 At this stage, the main goal is the question regarding the research issue: The study of the influence of social media on the quality of services. In the first phase, the information was made with the intention of recognizing the independent variables. The analyzed sources are distinct regarding the area of the research topic, based on the studies from the specialized fields published in electronic or printed format. Much of the literature in the specialized fields is provided in electronic format, from international databases, such as: ProQuest, EBSCOhost, Thomson Reuters, ScienceDirect or Jstor. The interpretation of statistical data published by EUROSTAT and the National Institute of Statistics was also taken into account. The delimitation of the research space of the influence of social media on the quality of services is summarized to: users of social platforms, peer-to-peer platforms and consumers. The keywords were selected to reflect the independent variables presented above, preceded by the setting of the dependent variables. The operationalization of the independent variables was carried out by completing the questionnaire and other separate questions to provide indicators for each in particular. In this 1

Niculescu, M., (2015), „L’épistémologie et la méthodologie de la recherche en sciences économiques et sociales“. L’École d’été organiseé par l’Institut de la Francophonie pour l’Administration et la Gestion, Sofia, Bulgaria. 2 Sandor, ¸ S., D., (2011), „Metode s¸i tehnici în s¸tiin¸tele sociale“. Cluj: Suport de curs, Universitatea Babe¸s-Bolyai. http://www.apubb.ro/wp-content/uploads/2011/02/Suport-MTCS-Ro. pdf 3 Bartle, P., (2011), „SMART“, Caracteristicile obiectivelor bine definite. Colectivul pentru Capacitatea Comunit˘a¸tii. http://cec.vcn.bc.ca/mpfc/modules/pd-smaru.htm

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context, operationalization means the approximation of each variable by specific indicators and indices. Working hypotheses were developed simultaneously. The research methods selected were those of the survey type, ie questionnaire and interview. The interpretation of the results is presented quantitatively and qualitatively. The conclusions, limitations and future directions of this research are written at the end.

5.1.2

Research Methodology

The research aims to identify both the degree of influence of social media on the quality of services and the relationship between the demand for peer-to-peer platforms, economic growth and information and communication technology, using the simple linear regression model for panel data, similar to that presented by Baltagi (2005) and Greene (2008). Due to the lack of available data about peerto-peer platforms on the websites of the statistical bases, the structures of tourist accommodation such as private dwellings (apartments and rooms for rent) were taken into account, as the accommodation available on the peer-to-peer platform Airbnb can fit into the mentioned structures. I. Dynamic and structural analysis of the demand for accommodation in private housing structures on peer-to-peer platforms This subchapter includes the dynamic and structural analysis of the demand for accommodation in private housing structures on peer-to-peer platforms. The tourist reception structure or “accommodation unit represents any natural or legal person offering accommodation services” (Chart 5.1).4 The total number of overnight stays for holiday and business trips in the structures of tourist accommodation such as private homes—apartments and rooms for rent of Romanian residents stood at 5779,8 thousand in 2010 and 5245,0 in 2011, then followed a downward trend in the period of 2012–2016 from 7602,9 thousand to 4795,9 thousand, reaching 5442,6 thousand in 2017 (Chart 5.2).

4

Internal document of the Hello Romania travel agency. General terms and conditions

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8000 6000 4000

thousand

2000 0 2010 2011 2012 2013 2014 2015 2016 2017 Total trips Holiday trips Business trips

Chart 5.1 Evolution of overnight stays for holiday and business trips in private rented dwellings of Romanian residents, in the period of 2010–2017. (Source: INS)

100% 80% 60% 40% 20% 0%

External Holidays Business Holidays Business Holidays Business Holidays Business Holidays Business Holidays Business Holidays Business Holidays Business

Internal

2010 2011 2012 2013 2014 2015 2016 2017 Chart 5.2 The structure of overnight stays for holiday and business trips in private dwellings—apartments and rooms for rent type accommodation structures of Romanian residents, depending on the type of the trip, in the period of 2010–2017. (Source: Own calculations based on INS data)

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151

Average 20132015

2016

2017

It should be specified that, in the period of 2010–2017, in the structures of tourist accommodation of private dwellings type, the average number of overnight stays associated to holiday travel was 5032,6 thousand, of which 95,0% were made in Romania, and 5,0% were made abroad. On the other hand, the average number of overnight stays related to business trips amounted to 603,7 thousand— 77,6% had to consider external locations (Chart 5.3).

Business Holidays Business

4 overnights and over

Holidays

1-3 overnights

Business Holidays 0

50

100

Chart 5.3 The structure of trips for holidays and business in private dwellings—apartments and rooms for rent type accomodation structures of the residents of Romania, according to the duration of the trip—percentages. (Source: EUROSTAT)

In 2017, the most trips for holidays and business recorded in the structures of tourist reception of private homes—apartments and rooms for rent type of Romanian residents were those of 4 overnights and respectively over, 58.8% and 94,3% (Chart 5.4). The number of non-resident tourists who remained in private homes—apartments and rooms for rent in the year of 2017 was 36,9 thousand, raised by 28,6 thousand compared to the average for the period of 2010–2016 (Chart 5.5).

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thousand

thousand 18

45 35

13

25 8

15 3

5 -5

2010

2011

2012

2013

2014

2015

2016

2017

-2

Non-resident tourists

mii

Chart 5.4 Evolution of non-resident tourists accommodated in private accommodation structures—apartments and rooms for rent, in the period of 2010–2017. (Source: Own calculations based on INS data)

9 8 7 6 5 4 3 2 1 0

Chart 5.5 Number of non-resident tourists staying in private accommodation structures— apartments and rooms for rent, depending on the country of residence, in 2017. (Source: INS)

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153

In 2017, most non-resident tourists staying in private accommodation—apartments and rooms for rent, came from Hungary (3,4 thousand), France (2,9 thousand), Germany and Poland (2,8 thousand), Spain (2,7 thousand), the United Kingdom (2,6 thousand) and Italy (2,5 thousand). II. Determinant factors of tourist demand in private housing type accommodation structures In this subchapter were presented the determining factors of tourist demand in accommodation structures such as private homes (Table 5.1). The total expenses paid in Romania by non-resident tourists accommodated in private accommodation structures—apartments and rooms for rent, registered in the period of 2010–2017, an average annual growth rate of 54,9% (52,1% in real terms), the starting base being 1274,6 thousand lei. This dynamic was mainly determined by the increase of expenses for accommodation by 63,3% (60,3% in real terms), for transportation by 50,5% (47,7% in real terms) and for cultural, sports and leisure activities by 49,5% (46,7% in real terms) (Chart 5.6). In 2017, at the level of tourist reception structures with accommodation functions such as private dwellings, there is a relatively low synchronization between GDP/ capita and expenses/ non-resident tourist paid in Romania (Chart 5.7). The share of individuals who used the internet for travel services and/ or travel accommodation from the total number of individuals, gradually decreased from 16% in 2010 to 10% in 2014, fluctuating over the next 3 years around the 12% level (Chart 5.8). At the same time, the share of individuals who booked or purchased online travel and/ or accommodation arrangements from the total number of persons who used e-commerce, for personal use, in the last 12 months was maintained in the period of 2010–2017 in a range of 17–35%. III. The link between tourism demand on peer-to-peer platforms, economic growth and the informational society This subchapter includes the econometric model—the used data and the estimation of the model. Next, the relationship between the tourism demand, economic growth, and the information and communication technology will be examined, using the simple linear regression model for panel data, similar to that presented by Baltagi (2005) and Greene (2008). 13 European Union countries were selected: Austria, Bulgaria, the Czech Republic, Denmark, France, Germany, Hungary, Italy, the Netherlands, Poland, Spain, Sweden and the United Kingdom.

2010

356.9

Restaurants, bars, cafes and other similar services

17.4

Other expenses

Source: INS

35.2

230.9

Cultural, sports, leisure activities

Buying products for personal use

9.3

352.2

Product rental

272.8

Accommodation

1,274.6

Transportation

Total

2011

59.7

50.8

175.1

7.3

319.3

340.1

251.6

1,204.0

2012

3,906.1

111.1

550.6

16.0

1,141.1

1,293.5

840.9

7,893.1

2013

5,536.8

221.0

651.6

3.3

1,293.1

1,764.4

1,693.7

11,169.7

2014

4,352.6

201.6

387.1

34.1

1,324.1

2,009.6

2,073.5

10,410.1

2015

6,384.7

420.1

1,103.7

28.2

1,982.5

3,403.9

3,464.2

16,992.6

2016

4,011.6

667.2

1,433.2

25.2

3,265.6

3,827.6

4,264.3

17,680.8

2017

4,153.8

587.2

1,916.1

8.9

4,978.3

10,894.7

4,769.7

27,308.7

5

Table 5.1 Evolution of expenses paid in Romania by non-resident tourists accommodated in private accommodation structures—apartments and rooms for rent, depending on the type of expenses, in the period of 2010–2017. (thousand lei)

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EUR

155

EUR

50000

750

40000

600

30000

450

20000

300

10000

150

0

0

GDP/ capita

Expenses/ non-resident tourist (sc.dr)

Chart 5.6 Gross domestic product and expenses paid in Romania by non-resident tourists staying in private accommodation structures—apartments and room for rent, in 2017, regional comparisons. (Source: EUROSTAT)

Chart 5.7 Proportion of people who used the internet to use travel-related services and/ or to ensure accommodation while traveling during the period of 2010–2017. (Source: EUROSTAT)

% of total people

20% 15% 10% 5% 0%

2010 2011 2012 2013 2014 2015 2016 2017

The data series were taken from the website of the Statistical Office of the European Union—EUROSTAT and from the statistical publication Tourist expenses of non-residents, published by the National Institute of Statistics. The variables considered are the following:

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% of all persons who have ordered goods or services online for personal use in the last 12 months 40% 35% 30% 25% 20% 15% 10% 5% 0% 2010 2011 2012 2013 2014 2015 2016 2017 Chart 5.8 Share of persons who booked/ purchased travel arrangements and/ or accommodation online, in the period of 2010–2017. (Source: EUROSTAT (online data code: isoc_ec_ ibuy))

– Number of non-resident tourists, depending on the country of residence, accommodated in private accommodation structures—apartments and rooms for rent (NT); – Gross domestic product—average prices of 2010, EUR/ inhabitant (GDP/ capita); – Number of people who used the internet to use travel-related accommodation services and/ or to ensure travel accommodation (PICC). The data series have an annual frequency and cover the period of 2010–2017. All series were expressed in natural logarithms. Variables were tested for unitary roots identification using Levin, Lin and Chu (LLC) tests (Levin, Lin & Chu, 2002), Im, Pesaran and Shin W-stat (IPS) (Im, Pesaran & Shin, 2003), ADF—Fischer chi-square (ADF) (Dickey & Fuller, 1979) and PP—Fischer chi-square (PP) (Phillips & Perron, 1988) (Table 5.2).

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Table 5.2 Stationarity tests LLC Level

NT GDP/capita PICC

Difference

IPS

3,72597

4,89592

11,8335

4,75334

–2,04660**

0,07209

27,1393

54,1556*

–3,50150*

53,4784*

–2,05256**

47,0336*

29,2990

–4,77044*

55,8346*

104,811*

–9,59944*

GDP/capita

–30,2064*

PICC

8,69600

PP

2,48415

–17,2824*

NT

ADF

–0,24560

9,14479

108,544*

*,

** the null hypothesis of the existence of the unitary root is rejected at 1% and 5%, respectively.

The results of the stationarity tests indicate that NT, GDP/ capita and PICC are integrated in order I –I (1). The 3 variables were stationary by calculating the first order differences. The next step was to apply the Hausman test (Hausman, 1978) in order to determine which model is more suitable: the one with fixed effects or the one with random effects. As the probability obtained was less than 0,01, it was concluded that the first model is the most appropriate (Enache, Budz, Sîrbu & Zgur˘a, 2020) (Table 5.3). Table 5.3 Hausman test results Variables

Fixed

Random

Var(Diff.)

Prob.

GDP/capita

8,827502

14,653994

10,480047

0,0719

PICC

0,481756

0,401043

0,000279

0,0000

Chi2 (2)

= 26,937;

Prob>chi2

= 0,0000

The results of the model estimation are presented in table 4.4 (Table 5.4).

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Table 5.4 Panel model with fixed effects Variables

Coefficients

Std. Error

t-Statistic

P-value

GDP/capita PICC C R-squared F-statistic Prob(F-statistic) Durbin-Watson (stat)

16,47983 0,525509 0,402764 0,546603 4,098948 0,000006 2,155839

8,247824 0,103917 0,143607

2,804627 5,056992 2,804627

0,0066 0,0000 0,0066

Following the Panel model, it can be seen that the 1% increase in GDP/ capita leads to a 16,5% increase of NT and that a 1% increase in PICC leads to a 0,5% increase of NT.

5.1.3

The Survey and Detailed Analysis of the Questionnaire Responses

The survey is the most widely used research method, as it has many advantages such as short data collection time. The survey consists of three stages, namely: the introductory letter, the application instructions and the survey itself. The introductory letter includes information about the purpose and significance of the research. Before providing the questionnaire to the respondents, the confidentiality of their answers is guaranteed. Clarifications are provided regarding the form of the answer. As regards to the indications for application, they may be included in or separately from the introductory letter and may be referred to as “indications”. This sequence represents the requirements of the research, and communicates that there are no right or wrong answers. The answers differ only in the degree of sincerity they embody, excluding the dishonest answers. The survey itself includes all the questions coded as items, with numbers from 1 to 25. The structure of the survey was as follows: 3 questions with a nominal scale, 21 questions with an ordinal scale and 1 open-ended question. The survey was conducted by random sampling on 550 people, of whom 336 responded. The survey was self-administered, with a qualitative and quantitative purpose, and the respondents participated voluntarily.

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I. Sample size and structure The following calculation formulas were used to calculate the sample size: – Cohran W.G.’s formula; – Taro-Yamane’s formula; – The formula of Mure¸san P. Cohran’s formula: n=

t2 ∗ p ∗ q , 2

(5.1)

where n—the volume of the representative sample; t—coefficient of the significance test; p—incidence of the phenomenon; —maximum permissible error.5 Taro-Yamane’s calculation formula exemplifies the way in which the size of a representative sample is determined without taking into account the phenomenon—p in consideration, which represents the non-percentage share of the sample structure characterized by a certain attribute: n=

N , 1 + N ∗ 2

(5.2)

where n—the volume of the representative sample; N—statistical totality; —maximum permissible error.6 In order to determine the representative sample, the calculation formula of Mure¸san was used, which is based on the formulas of Cohran and Taro-Yamane. Therfore, Mure¸san’s formula is based on the non-percentage weight of observation of the units of the sample that has the characteristic researched from Cohran’s formula and the statistical set from Taro-Yamane’s formula:

5 6

Cochran, W.,G., (1963), „Sampling Techniques“, New York: John Wiley and Sons. Yamane,T., (1967), „Statistics: An Introductory Analysis.“ New York: Harper and Row.

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n=

t 2 ∗ p(1 − p) ∗ N , t 2 ∗ p(1 − p) + 2 ∗ N

(5.3)

where n—the volume of the representative sample; t—coefficient of significance test; p—incidence of the phenomenon; N—statistical totality; —the maximum allowed error; 1-p—the incidence of the phenomenon.7 In the present research, the probability of a 95% guarantee of the survey results was taken into cosideration, for which t = 1,95, and a margin of error of ± 5%. The value recorded for p is 0,7. N represents the resident population of Romania of 19.414.458 inhabitants, according to the National Institute of Statistics of Romania.8 Taking into account this information, a sample size of 319 respondents was obtained by applying Mure¸san’s formula: n=

1,952 ∗ 0,7(1 − 0,7) ∗ 19414458 15502930 = = 319 1,952 ∗ 0,7(1 − 0,7) + 0,052 ∗ 19414458 48537

(5.4)

To be representative, the sample must have 319 respondents. As mentioned above, the questionnaire was randomly distributed to 550 people, of whom 336 responded. The questionnaire was developed using Google Forms, which allows Google users to create and interpret opinion polls. Once the questionnaire was created, the link to access was distributed to virtual friends on social networks such as Facebook and LinkedIn, on WhatsApp, Signal, Telegram and e-mail groups. The number of people targeted to complete the questionnaire was 550. As mentioned, the letter of introduction and instructions for completion were included in the questionnaire. The self-administered questionnaire had both a qualitative and a quantitative purpose. Participants responded voluntarily. The sample is significant because it takes into account Mure¸san’s formula for n calculated at 319. The number of respondents was of 336 people (Chart 5.9).

7 Mure¸san, P., (1989), Handbook of mathematical methods in health analysis. Bucharest: Medical Publishing House 8 INSSE, (2020), „Popula¸tia rezident˘ a la 1 Ianuarie pe grupe de vârst˘a s¸i vârste, sexe s¸i medii de reziden¸ta˘ , macroregiuni, regiuni de dezvoltare s¸i jude¸te.“ http://statistici.insse.ro:8077/ tempo-online/#/pages/tables/insse-table

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70.0

Chart 5.9 Distribution of the sample by gender (%). (Source: Author)

60.0

62.0

50.0 40.0 38.0

30.0 20.0 10.0 0.0

Feminine

Masculine

Interpreting the structure of the research sample by gender, the respondents are distributed as follows: 62% belong to the female gender, 38% belong to the male gender, which indicates that both percentages are relatively close to 50%, being more female respondents. In numerical form there were 208 responses from females and 128 responses from males (Chart 5.10). Chart 5.10 Distribution of respondents by age groups (%). (Source: Author)

50 40.9

43.2

40 30 15.9

20 10 0 0 Under 18 years

18-25 years 26-35 years

Over 36 years

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Interpreting the distribution of the sample by age groups, the highest percentage, of 43,2%, or 145 respondents is given by the category of persons over 36 years of age, followed by persons aged between 26–35 years, with a percentage of 40,9% or 137 respondents, followed by people aged 18–25, with 15,9% or 54 respondents. There were no respondents under the age of 18. The distribution of the respondents from the age groups sample did not respect an unitary structure of the Romanian population. All age groups were considered for the studied attributes except the first category—age under 18, because there were no respondents (Chart 5.11). Chart 5.11 Distribution of the group according to the area of residence (%). (Source: Author)

100

90.9

80 60 40 20

9.1

0 Urban area

Rural area

Analyzing the sample according to the area of residence, the highest percentage is given by the urban area, with 90,9%, or the numerical value of 305, the rural area having a percentage of only 9,1% or the numerical value of 31. This is due to the migration from the rural to urban areas because of the diversity of possibilities. Also, another reason could be the technological development and the dependence that people have on the urban environment (Chart 5.12).

5.1 Quantitative Research Regarding the Implications … Chart 5.12 Professional status of the sample (%). (Source: Author)

80 70 60 50 40 30 20 10 0

163

68.2

9.1 2.3

13.6

6.8 0

Analyzing the sample according to the professional status, it can be seen that the highest percentage, namely 68,2%, or the numerical value of 229 people, belongs to employees, followed by entrepreneurs, with 13,6% or 46 respondents, followed by freelancers, with 9,1% or 30 respondents, followed by retirees, with 6,8% or 23 respondents, and at the end are the pupils/ students, with 2,3% or 8 respondents. The percentage of the unemployed is 0%, which indicates that technology offers people the opportunity to find alternatives, representing a positive aspect for the economy (Chart 5.13).

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70 59.1

60 50 40

29.5

30

20 10

9.1 2.3

0 Primary educaon

Secondary educaon

Higher educaon

Postgraduate educaon

Chart 5.13 The level of education of the respondents (%). (Source: Author)

Interpreting the sample according to the level of studies, the highest percentage is held by the category with higher education, 59,1% or the numerical value of 199, followed by the category with postgraduate studies, 29,5% or the numerical value of 98, followed by the category with secondary education, 9,1% or the numerical value of 31, and at the end by the category of primary education, 2,3% or the numerical value of 8. This distribution shows that the population has emancipated itself due to the rapid access to information, infrastructure and the evolution of the society. People are more open and aware of their own education (Chart 5.14).

5.1 Quantitative Research Regarding the Implications … Chart 5.14 Monthly average revenue (%). (Source: Author)

165

60 56.8

50 40 30

29.5

20 10

13.7

0 Under 2500 RON

2500-7000 RON Over 7000 RON

Interpreting the sample according to the category of the monthly average income, it can be noticed that the main percentage is held by people with an income between 2500–7000 RON, with 56,8% or the numerical value of 191, followed by that of people with incomes over 7000 RON, with 29,5% or the numerical value of 99, and followed at the end by those with incomes below 2500 RON, with 13,7% or the numerical value of 46. According to the chart, it can be seen that the standard of living is probably stimulated by the number of foreign corporations in Romania, if we take into account the number of employees and entrepreneurs in the previous chart. II. Sample characteristics The general positive aspect of social media is that it is the most popular form of socializing and information gathering because there are no geographical barriers. One of the negative aspects of social media can be the dependence towards social platforms (Chart 5.15).

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Chart 5.15 Frequency of use of social platforms (%). (Source: Author)

100 90

90.5

80 70 60 50 40 30 20 10

4.9

2.3

2.3

Weekly

Monthly

Never

0 Daily

According to the chart above, 90,5% of the respondents utilize social platforms daily. This may be due to the current technological and informational levels, being more convenient to maintain relationships with several people simultaneously through social platforms, than in real life. Social media users often engage in intense social interactions on social networks, posting updates of their daily lives and commenting on updates posted by other members. Online sharing contributes to feelings of belonging and social support. Moreover, the positive comments and appreciations of friends from the uploaded posts increase their own feelings of popularity, an important reason why they are sometimes addicted to using these platforms. Increasing technology-mediated assistance in providing better communication services has made life easier, but as a by-product, behavioural addictions such as internet addiction and social media addiction have become prevalent. In the 21st century, the use of social networking sites belongs to the daily lives of many people (Pew Research Center, 2018). Excessive use of social networks creates a conflict in the intrapersonal and interpersonal relationships, which can hinder the user’s well-being. The impact of using online platforms regarding well-being is controversial. The use of social media in the short term seems to improve well-being by increasing happiness and life satisfaction, and in the longer term, the use of it affects mental health and decreases well-being. Addiction to social networks is associated with depression, anxiety symptoms, narcissism and decreased well-being.

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167

Narcissistic people are characterized by an enlarged self-perspective, a sense of entitlement and grandeur, as well as a great need for attention and admiration from others. Social platforms offer them various functions for self-presentation in superficial social interactions, where they get positive feedback to satisfy their need for popularity. However, positive experiences gained on social media can encourage the development of a strong emotional connection with social networks. This relationship is linked to a problematic need to stay connected online, to upload updates and to check the activities of other users, even when this behaviour disrupts compliance with home and work obligations, contributing to interpersonal difficulties and affecting social relationships. This seems to be of particular importance for the overall protection of users’ well-being in terms of the negative side effects reported prior to dependence on social networks, in particular their contribution to symptoms of insomnia, depression and anxiety (Chart 5.16). Chart 5.16 Most commonly devices used for internet access (%). (Source: Author)

100

91

80 60 40 20 2.3

6.7

0 Mobile phone

Tablet

Laptop/ PC

As can be seen in the table above, the majority of respondents, 91%, use their mobile phone to access the Internet, followed by those who use their laptop/ PC, with a percentage of 6,7% and then those using the tablet, with a percentage of 2,3%. This may be due to the fact that mobile phones are handy, easy to use and can be carried anywhere. All applications can be downloaded to mobile phones, with users having all the tools they need to fulfill their daily needs, activities and desires, making everyone’s lifestyle easier.

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With the innovation of information and communication technologies, in addition to the positive aspects generated by them, there have also been negative aspects such as excessive or maladaptive use of Internet technologies, especially mobile phones. Problematic use of mobile phones refers to their compulsive use, which generally has negative consequences in various aspects of life. Problematic use of mobile phones can lead to a number of health problems, such as anxiety, depression and sleep disorders, increasing social problems. Problematic use of mobile phones can also be interpreted as addictive or compulsive, resulting in maladaptive relationships with mobile devices with potential negative consequences. These negative aspects can be accentuated by social networks more or less, as mentioned above, which can be easily accessed from mobile phones. It can be seen that the daily use of social platforms or the internet and mobile phones was not analyzed according to the chosen dependent variables because the percentages were close to 100% (Chart 5.17). According to the first chart, it can be seen that 29,17% of the total women and 10,42% of the total men make weekly online purchases. Followed by monthly purchases that hold a percentage of 22,92% of the total women and 18,75% of the total men. In the end, occasional or rarer purchases are made by 10,42% of the total women and 8,33% of the total men. It can be seen that more women prefer online shopping. For men, most prefer monthly purchases. According to the second chart, the percentages of monthly purchases are equal between respondents aged between 26–35 years and those over 36 years, ie 18,75%. People over the age of 36 have a 15,58% stake in weekly online shopping. People of all ages tend to shop online on a weekly basis. According to the third chart, people with higher education have the highest percentage of weekly online purchases, of 25%, followed by the people with higher education who buy on a monthly basis with 20,83%, followed by people with post-graduate education, who hold 16,67% of weekly online purchases and 14,58% of monthly purchases. At the end are those with the secondary education who have the highest percentage of occasional purchases, 4,17% and equal percentages of 2,08% for weekly and monthly purchases, followed by those with primary education, with a percentage of 2,08% of occasional purchases. This may be due to the lack of skills associated to the use of technological devices and information softwares, and as well because of their low incomes. According to the fourth chart, it can be seen that those with a monthly income between 2500–7000 RON have the highest values regarding the weekly online purchases, with 27,08%, and those with monthly purchases, with 20,83%, followed by those with monthly income of over 7000 RON. In terms of weekly

5.1 Quantitative Research Regarding the Implications …

Gender

Age

35.00 30.00

29.17

25.00

22.92 18.75

20.00 15.00

10.42 8.33

10.00

169

Feminine

10.42

Masculine

5.00 0.00

20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00

18.75

18.75 14.58 10.42 8.33 6.25 4.17

18-25 years 26-35 years Over 36 years

0.00

Studies 30.00 25.00

25.00 20.83

20.00

Secondary educaon 16.67

15.00

Postgraduate educaon

14.58

12.50

Primary educaon

10.00

Higher educaon 5.00 2.08 0.00 Monthly

0.00

4.17 2.08 0.00 Occasionally

2.08 0.00 Weekly

Income

Professional status 35.00

30.00 27.08

25.00 20.00

18.75 12.50

10.00

10.42

5.00

6.25 2.08

Employee

25.00

20.83

15.00

0.00

33.33

30.00 2500-7000 RON Over 7000 RON

2.08 0.00

Under 2500 RON

20.00

Entrepreneur

20.83

15.00

Pupil/ Student

10.00

10.42

5.00

4.17

0.00

0.00

4.17 2.08

6.25

Freelancer

0.00 Pensioner (Rered)

Chart 5.17 Frequency of online purchases by gender, age, education, income and professional status (%). (Source: Author)

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purchases, 18,75%, and monthly, 12,50%. On the last positions, are those who buy occasionally, with a monthly income below 2500 RON, with a percentage of 10,42%, then those with a monthly income between 2500–7000 RON, with 6,25%, and with an income over 7000 RON, with a percentage of 2,08%, and with a monthly income below 2500 RON in the case of monthly purchases, with 2,08%. It can be seen that the majority percentage is held by those with incomes between 2500–7000 RON due to the fact that they have a more pronounced mentality of the consumer. Another reason may be that the number of respondents with a monthly income of over 7000 RON was lower than that of those with a monthly income between 2500–7000 RON. According to the fifth chart, it can be seen that the highest percentage in terms of weekly online purchases is held by employees (33,33%), followed by employees that prefer monthly purchases (20,83%) and occasional purchases (10,42%), followed by freelancers with monthly purchases (8,33%), followed by entrepreneurs with weekly purchases (6,25%), followed by freelancers with weekly purchases (4,17%), followed by pupils/ students with occasional purchases (2,08%) and retirees who hold an equal percentage in all positions (2,08%). Employees hold the highest percentages in all positions. This may be due to a lack of knowledge about online marketing and time issues because they spend most of their time at work being more exposed. Employees can also purchase food on a weekly basis because they are at work and it is more convenient for them. Another reason may be that a larger number of respondents with employee status answered the questionnaire. Looking at the big picture, you can see that the tables are consistent and that the most frequent online purchases are made by women aged between 26–35 years, with higher education, with a monthly income between 2500–7000 RON, having the professional status of employees. With the betterment of the social and economic status of Romanian women, the scale of the consumer market of Romanian women is constantly expanding. These consumers, mostly young and middle-aged women, have become the main driving force behind online shopping, as can be seen in the charts above. Compared to men, women have a stronger intention to buy in the cyber context. Other studies have shown that women are more likely than men to engage in compulsive shopping. National culture can be a key element that can affect consumer behaviour in different areas (Chart 5.18).

5.1 Quantitative Research Regarding the Implications …

Gender 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

171

Age 25.00

41.67

22.92 20.00

20.83

22.92

18.75 16.67

15.00

Feminine

18-25 years

12.50

Masculine

26-35 years

10.00

Over 36 years

12.50 5.00

4.17

Yes

0.00 N/A

2.08 0.00 N/A

0.00 No

Yes

2.08 No

Studies 35.00 30.00

29.17

27.08

25.00

Secondary educaon

20.00

18.75

Postgraduate educaon

15.00

Primary educaon

10.42

2.08

10.00 5.00

2.08

4.17 2.08

0.00

0.00 N/A

Yes

0.00 No

Professional status

Income 40.00

35.00 30.00

35.00

29.17

25.00 20.00

6.25

Yes

0.00 N/A

Entrepreneur

Over 7000 RON

20.00

14.58

Under 2500 RON

10.00

10.42

6.25

5.00

6.25 2.08 0.00 Yes

4.17

0.00

30.00

2500-7000 RON

10.00

25.00

25.00 Pupil/ Student

15.00

0.00 No

Employee

35.42

20.83 18.75

15.00

5.00

Higher educaon

4.17

4.17

6.25 4.17

0.00 N/A

No

2.08

Freelancer Pensioner (Rered)

Source: Author

Chart 5.18 Decisions regarding online shopping following recommendations from foreigners based on gender, age, education, income and professional status (%). (Source: Author)

According to the charts above, it can be seen that in terms of gender, the largest share of online purchases made following the online recommendations of foreigners is held by women with 41,67%, followed by those who did not make purchases online based on the recommendations of foreigners with equal

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percentages for both genders, of 20,83%. At the end are the men who bought online following the recommendations of foreigners on online platforms with a percentage of 12,5%. 4,17% of the respondents did not opt for yes or no. It can be seen that women are once again at the forefront of online shopping because they are more emotional and empathetic, sometimes wanting to balance and compensate through shopping. In terms of age, an equal percentage of 22,92% can be found between people who have made online purchases over the age of 36 years and people who have not made online purchases between the ages of 26–35 years, followed by people who made online purchases (18,75%), aged between 26–35 years, and people who did not make online purchases (16,67%), aged over 36 years, and then followed by people who have made online shopping (12,50%), aged between 18–25 years, and by people of the same age who have not made online shopping (2,08%), following the recommendations of some foreigners. 2,08% of the categories aged between 26–35 years and over 36 years chose not to answer. It can be seen that a higher percentage of people of all ages have made online purchases following the online recommendations of some foreigners due to the fact that they are also people with whose stories, problems, solutions or recommendations resonated more or less. Regarding studies, it is observed that the highest and relatively equal values are held by those with higher education, with 29,17% for those who bought online following the recommendations of foreigners, and 27,08% for those who did not, followed by those with postgraduate studies who made online purchases after the recommendations of foreigners, with a percentage of 18,75%, and the ones who did not make, 10,42%, followed by the equal precentage of 4,17% for those with secondary education who made and did not make online purchases following the recommendations of foreigners. 2,08% of those with primary education made online purchases following the recommendations of foreigners, and 2,08% of those with higher and postgraduate education chose not to respond. It can be observed that even in the case of studies, the higher percentage is inclined towards the respondents who trusted the online recommendations of foreigners, which signifies that people are transforming and have a greater openness towards online interactions regarding purchases. It can be observed that the lack of restriction of those with higher and postgraduate studies is higher than the others, but this may be due to the higher number of responses from those with university studies. Those with incomes between 2500–7000 RON have the highest values regarding the making and non-making of online purchases following the online recommendations of foreigners, namely, 29,17%, and 20,83%, respectively, being followed by those with incomes of over 7000 RON, with 18,75% for those who

5.1 Quantitative Research Regarding the Implications …

173

performed, and respectively, 14,58% for those who did not perform, being followed by those with incomes below 2500 RON who have an equal percentage of 6,25%. 4,17% of those with incomes between 2500–7000 RON chose not to answer. It can be seen that employees who bought online following the online recommendations of foreigners occupy the largest precentage of 35,42%, followed by employees, but who did not buy online following the online recommendations of foreigners with a percentage of 25%, followed by entrepreneurs who made purchases, with a percentage of 10,42%, followed by freelancers who have an equal percentage of 6,25% on both sides and entrepreneurs and retirees who did not buy online following the online recommendations of foreigners, with an equal percentage of 4,17%. Also, 4,17% of employees chose not to answer. It can be seen that the charts correspond to each other, the largest precentage being held by women who bought online following the online recommendations of foreigners over the age of 36 years, with higher education, with incomes between 2500–7000 RON, and professional status of employees, and women who did not buy online following the online recommendations of foreigners, aged between 26–35 years, with higher education, with income between 2500–7000 RON, and professional status of employees. After being exposed to online recommendations, consumers respond based on their own perceptions. Some consumers suggest that other consumers provide more relevant information about products or services compared to suppliers, and thus improve the quality of decisions. The more relevant and personalized the information about products or services, based on the experiences of those who recommend them, the more likely it is that other consumers will find them attractive (Chart 5.19).

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Age

Gender 60.00 50.00 40.00 30.00 20.00 10.00 0.00

35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

52.08 25.00 8.33

4.17

2.08

Feminine Masculine

33.33 29.17 10.42 6.25 0.00

0.00

14.58 4.17 2.08

18-25 years

26-35 years Over 36 years

Studies 60.00 50.00

47.92

40.00

Secondary educaon Postgraduate educaon

30.00

20.00 10.00 0.00

Primary educaon

22.92 8.33 6.25 2.08 0.00 High quality

Higher educaon 4.17 2.08 0.00 Price

4.17 2.08 Quality-price rao

Income

Professional status 60.00

50.00

56.25

45.83

45.00

50.00

40.00

Employee

35.00

40.00

30.00 25.00 20.83

20.00 15.00 10.00 5.00 0.00

10.42 6.25 0.00

2500-7000 RON

30.00

Over 7000 RON

20.00

10.42 2.08

Under 2500 RON

Entrepreneur

Pupil/ Student 6.25

10.00 0.00

4.17 2.08

4.17

2.08 2.08

0.00

0.00

12.50 6.25 2.08 0.00

Freelancer Pensioner (Rered)

Chart 5.19 Choices regarding quality and price in the purchasing process according to gender, age, education, income and professional status (%). (Source: Author)

5.1 Quantitative Research Regarding the Implications …

175

According to the first chart related to gender, it can be observed that the highest percentage, of 52,08%, is held by women who consider the quality-price ratio at the time of a purchase, followed by the men who consider the qualityprice ratio at the time of purchase, with a percentage of 25%, followed by women and men who choose high quality, with an equal percentage of 8,33% and at the end by men and women who choose the price, with a percentage of 4,17% and 2,08%. Most respondents prefer to consider value for money because the product or service is more sustainable. According to the chart related to age, it can be seen that the highest shares are for the quality-price ratio, held by those aged between 26–35 years (33,33%), aged over 36 years (29,17%), and those aged between 18–25 years (14,58%). They are followed by those who opt for high quality, over the age of 36 years (10,42%), and those aged between 25–36 years (6,25%). At the end there are those who choose the price, aged between 25–36 years (4,17%), and those over 36 years (2,08%). Most respondents opt for good value for money when shopping online. According to the chart with the studies category, it can be seen that the highest percentages are also held by the quality-price ratio, in the first place being those with higher education, with a percentage of 47,92%, being followed by those with postgraduate studies, with a percentage of 22,92%. On the following positions are those who choose high quality, occupying a percentage of 8,33% those with postgraduate studies, being followed by those with higher education, with a percentage of 6,25%. Then, those who choose the price, with a percentage of 4,17% of those with higher education, and 2,08% of those with secondary education. The quality-price ratio is also chosen by those with secondary education, with a percentage of 4,17%, and by those with primary education, with a percentage of 2,08%. It can also be seen in this graphic that the quality-price ratio is the most preferred. According to the chart related to the income, it can be seen that the qualityprice ratio is the option that has the highest weights, 45,83% for those with incomes between 2500–7000 RON, 20,83% for those with incomes over 7000 RON, and 10,42% for those with incomes below 2500 RON. These are followed by the precentages regarding the high quality, 10,42% for those with incomes over RON 7000, 6,25% for those with incomes between 2500–7000 RON. Then being followed by equal values for the price, with 2,08% for those with incomes between 2500–7000 RON and those with incomes over 7000 RON. It is noted that the value for money is the most important for most respondents, regardless of their income level.

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Corresponding to the chart related to the professional status, the highest percentage is of employees who prefer the value for money, with 56,25%, followed by entrepreneurs and freelancers who prefer the same thing, with 12,50% and 6,25% respectively. On the next levels are those who prefer high quality, employees with a percentage of 6,25%, being followed by freelancers, with a percentage of 4,17%. In the end, it is the employees and freelancers who prefer the price, with an equal percentage of 2,8%. Also, in the case of this chart, there are more people who choose the quality-price ratio. As in all cases, it can be seen that the graphs correspond to each other, the highest percentage is of women who prefer the value for money, aged between 26–35 years, with higher education, with incomes between 2500–7000 RON, and professional status of employees (Chart 5.20).

Age

Gender 60.00

60.00

54.17

40.00 20.00

14.58 8.33

0.00 Yes

39.58

40.00

Feminine 22.92

Masculine

18-25 ani

22.92

20.00

18.75 4.17 0.00

14.58

0.00

No

Yes

26-35 ani Peste 36 ani

No

Studies 60.00

Secondary educaon 43.75 29.17

40.00 20.00

14.58

2.08

0.00 Yes

No

Postgraduate educaon

6.25 2.08 0.00

Income

Primary educaon Higher educaon

Professional status

50.00

60.00 43.75

40.00

2500-7000 RON

30.00

27.08

Over 7000 RON

20.00 10.42 6.25

10.00 6.25

Under 2500 RON

40.00

Yes

No

Entrepreneur

30.00

20.00 10.00 0.00

0.00

Employee

54.17

50.00

12.50 8.33 2.08 0.00 Yes

10.42 6.25 4.17 2.08 0.00 No

Pupil/ Student Freelancer

Chart 5.20 Use of peer-to-peer services (Airbnb, Uber, eBay etc.) by gender, age, education, income and professional status (%). (Source: Author)

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According to the first graph, it can be seen that 54,17% of women used peerto-peer platforms, followed by men who used these platforms with a percentage of 22,92%, then followed by men who did not use the peer-to-peer platforms, with a percentage of 14,58%, followed by women who did not use these platforms with a percentage of 8,33%. If Uber was taken as an example in this context, the lower number of men who used these services may be due to the fact that there are more male drivers that own a private car. Also, as we have seen in previous charts, women are much more receptive to online shopping. According to the second graph, at top in the use of peer-to-peer platforms are those aged between 26–35 years, with a percentage of 39,58%, followed by those over 36 years, with a percentage of 22,92%, followed by those aged between 18–25 years, with a percentage of 14,58%. Regarding those who did not use the peer-to-peer platforms until the time of the questionnaire, there are those over the age of 36 years, with a percentage of 18,75%, followed by those aged between 26–35 years, with a percentage of 4,17%. These trends may exemplify the fact that most people over the age of 36 years already own certain goods or can afford to consume more expensive services. If Airbnb was taken as an example in this chart, it is much more likely that younger people will use these services in the short term. According to the third chart, the most significant trend regarding the use of peer-to-peer platforms is held by those with higher education, with a percentage of 43,75%, followed by those with postgraduate studies, with a percentage of 29,17%. In the third place are those with higher education who did not use services from peer-to-peer platforms, with a percentage of 14,58%, followed by those with secondary education, with a percentage of 6,25%, followed by those with postgraduate studies, with a percentage of 2,08%. Those who have used these platforms before are those with secondary and primary education, with an equal percentage of 2,08%. From this graph it can be observed that those with a university degree have a greater openness to try intermediate services in a more durable, sustainable and innovative way. According to the fourth graph, it can be seen that those with incomes between 2500–7000 RON hold the first place in the use of peer-to-peer platforms, with a percentage of 43,75%, followed by those with incomes over 7000 RON, with a percentage of 27,08%. As for those who did not use the peer-to-peer platforms, in the first place are those with incomes between 2500–7000 RON, followed by those with incomes over 7000 RON and under 2500 RON who have a equal percentage of 6,25%. Also, a percentage of 6,25% of those with incomes below 2500 RON used these platforms. This graph shows that it is more convenient for middle-income people to use these platforms because quality and price go hand

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in hand. If we take Airbnb and Uber as examples again, we can see that Airbnb can be for all budgets, especially for people with middle incomes. As for Uber, it is more convenient for this category to use the platform than if it were to buy a car. According to the fifth graph, it can be seen that employees are in the first place in terms of the use of peer-to-peer platforms, with a percentage of 54,17%, entrepreneurs and freelancers are second, with a percentage of 12,50% and respectively, 8,33%. Pupils and students are third, having a percentage of 2,08%. On the other side, the first place is occupied by the employees who did not utilize the peer-to-peer platforms, having a percentage of 10,42%, the second place is occupied by retirees, having a percentage of 6,25%, and the third place is occupied by freelancers and entrepreneurs, having a percentage of 6,25% and respectively, 2,08%. It can be observed that retirees have not utilized peer-to-peer platforms directly, probably because they are not informed about the benefits of these platforms or the lack of knowledge in the use of technological devices. It can also be seen that most of the employees have used these platforms for various purposes, including business, making them more convenient. As an overview, women aged between 25–36 years, with higher education and incomes between 2500–7000 RON, having professional status of employees were the most persistent users of these platforms. This may be due to the fact that women are much more attracted to online shopping for various reasons and are more likely not to have their own cars. Peer-to-peer platforms have created a new phenomenon, namely consumer-toconsumer transactions which lead to alternative products or services other than traditional ones. The effectiveness of the content generated by users of these platforms, such as online reviews and performance of suppliers, provides a greater degree of trust to other users or potential users, having a significant influence on consumers’ purchasing decisions and behaviours (Chart 5.21).

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Age

Gender 60.00

40.00

56.25

50.00

35.42 33.33

30.00

40.00

18-25 years

30.00

Feminine

27.08

20.00 10.00

8.33

10.00

4.17

0.00 Yes

N/A

26-35 years

14.58

Masculine

20.00 2.08

0.00 Yes

No

Over 36 years

8.33 4.17 0.00 N/A

4.17 0.00 No

Studies 60.00 50.00

47.92

40.00

Secondary educaon

30.00

Postgraduate educaon

29.17

Primary educaon

20.00

Higher educaon

10.00

4.17

8.33 4.17 0.00

2.08

0.00 Yes

2.08 2.08 0.00

N/A

No

Income

Professional status 60.00

50.00 45.00

54.17

43.75

50.00

40.00

Employee

35.00 30.00

2500-7000 RON

29.17

25.00

20.00 15.00 10.42

10.00

40.00

Over 7000 RON

30.00

Under 2500 RON

20.00

Entrepreneur Pupil/ Student Freelancer 12.50 10.42

10.00

8.33

5.00 2.08

0.00 Yes

N/A

2.08 0.00 No

0.00 Yes

Pensioner (Rered)

8.33

4.17 2.08

2.08 0.00

2.08 0.00 N/A

No

Chart 5.21 Openness regarding future purchases from peer-to-peer platforms by gender, age, education, income and professional status (%). (Source: Author)

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Regarding the graphs related to the openness towards the future acquisitions from the peer-to-peer platforms, it can be seen that in the first place are the women with a percentage of 56,25%, followed by men, with a percentage of 27,08%. Both women and men who are not open recorded an equal percentage of 2,08%. Those who did not opt for one of the options are 8,33% men and 4,17% women, which may represent the fact that men have a higher degree of possessiveness with regards to goods, especially when it comes to cars. In terms of age, the highest percentage of people open to new purchases from peer-to-peer platforms is held by the people aged between 26–35 years, with 35,42%, followed by those over 36 years, with 33,33%, being an insignificant difference of 2,09% between them, followed by the people aged between 18–25 years, with a percentage of 14,58%. People who are not open are only among those aged between 26–35 years, with a percentage of 4,17%. Undecided people or those who have not used these platforms in the past are the ones over the age of 36 years, with a percentage of 8,33%, followed by those aged between 26–35 years, with a percentage of 4,17%, almost half compared to the older ones. It can be seen, however, that most people of all ages are open to future purchases from peer-to-peer platforms. In terms of education, as usual, people with higher education and postgraduate education are more open to future acquisitions from peer-to-peer platforms, with precentages of 47,92% and 29,17%, followed by people with secondary and primary education, with percentages of 4.17% and 2.08%. People who are not open to future acquisitions are those with higher and postgraduate studies who hold an equal percentage of 2,08%. Regarding the persons who did not opt for any answer are those with higher education, with a percentage of 8,33%, and those with secondary education, with a percentage of 4,17%. According to this chart, it can be seen that people with a university degree are more open than others, because they are used to being more informed than those with fewer years of study. There is also a possibility that these people may have learned about these platforms in their studies. Regarding the monthly income chart, it can be seen that those who are open to future purchases from peer-to-peer platforms are those with revenues between 2500–7000 RON who hold a percentage of 43,75%, followed by those with incomes over 7000 RON, with a percentage of 29,17%, followed by those with incomes below 2500 RON, with a percentage of 10,42%. The people who have chosen not to be open for future purchases are the people who have incomes between 2500–7000 RON and over 7000 RON with an equal percentage of 2,08%. The people who did not opt for any answer were those with incomes between 2500–7000 RON, having a percentage of 8,33%, and those with incomes

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over 7000 RON, and below 2500 RON with an equal percentage of 2,08%. From this chart you can see that those with incomes between 2500–7000 RON and over 7000 RON are more open about future online purchases from peer-to-peer platforms because they are more relaxed and flexible in terms of money. Also, those with incomes between 2500–7000 RON are more compatible with the services mediated by peer-to-peer platforms from a financial and qualitative point of view. According to the chart related to the professional status, it can be seen that employees have the highest percentage of openness to future purchases from peer-to-peer platforms, with 54,17%, followed by entrepreneurs with 12,50%, freelancers with 10,42%, by retirees, with 4,17% and by pupils or students with 2,08%. People who have chosen not to be open for future purchases from peer-topeer platforms are part of the employees and freelancers with equal percentages of 2,08%. The people who did not opt for any answer were 8,33% of employees, followed by an equal percentage of 2,8% of entrepreneurs and retirees. According to this chart, it can be noticed that the whole number of employees have the most openness towards future acquisitions from peer-to-peer platforms for the reason that they already consume these services and are greatly satisfied with them. As an overview, it can be observed that all women aged between 26–35 years, with higher education, with a monthly income between 2500–7000 RON, and with professional status of employees are more open about future acquisitions from peer-to-peer platforms, which indicates that they have been satisfied in the past with the products and services consumed from these platforms. This demonstrates how reliable and sustainable are these peer-to-peer platforms (Chart 5.22).

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Gen

Age

40.00

25.00 31.25

30.00

22.92

20.00

18-25 years 26-35 years

10.42

10.00

Masculine

12.50

18.75

15.00

Feminine

10.00

22.92 20.83

20.00

29.17

5.00 2.08

0.00

Yes

N/A

Over 36 years

4.17

2.08 0.00

0.00

No

Yes

N/A

No

Studies 35.00 30.00

29.17

25.00

25.00

Secondary educaon

20.83

20.00

Postgraduate educaon

15.00

Primary educaon 10.42

10.00

Higher educaon

6.25

5.00 2.08

0.00

4.17

0.00

Yes

0.00

N/A

No

Income

Professional status

35.00

40.00 35.42

35.00

30.00

29.17

Employee

25.00

30.00

25.00

20.00 16.67 15.00

14.58

25.00

Entrepreneur

Over 7000 RON

20.00

Pupil/ Student

Under 2500 RON

10.00 8.33 5.00

27.08

2500-7000 RON

15.00

Freelancer 10.42

10.00

2.08

2.08 0.00

0.00 Yes

N/A

No

2.08 0.00

0.00 Yes

Pensioner (Rered)

6.25 4.17

6.25

5.00

2.08 0.00

0.00 N/A

No

Chart 5.22 Openness for future purchases of people who did not yet purchase from peerto-peer platforms by gender, age, education, income and professional status (%). (Source: Author)

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According to the charts above, it can be seen that the values do not fully correspond to those in fig. 4.20—use of peer-to-peer services, but these will be taken into account because the percentages are significant, indicating that those who have already used peer-to-peer platforms have answered this question. According to the gender chart, 31,25% of women and 22,92% of men are open to using peer-to-peer platforms. On the other side are 2,08% of women and 2,08% of men. 29,17% of women and 12,50% of men have already used these platforms. According to the graph related to age, it can be seen that 22,92% of people aged between 26–35 years are open to use these platforms, followed by people over 36 years, with a percentage of 20,38%, and by people aged between 18–25 years, with a percentage of 10,42%. People who are not open to these platforms are part of the categories aged between 26–35 years and over 36 years, with an equal percentage of 2,08%. People who have already used these platforms are those aged between 26–35 years, and those over the age of 36 years with an equal percentage of 18,75%, and those aged between 18–25 years with a 4,17%. It is noted that there is openness towards these platforms by people of all mentioned ages. According to the study graph, openness is by those with all levels of education, especially by those with higher education, with 29,17%, and by those with postgraduate studies, with 20,83%, those with secondary and primary education with an equal percentage of 2,08%. Only 4,17% of higher education respondents are not open to these peer-to-peer platforms. People who have already used these platforms are those with higher education, with 25%, postgraduate studies, with 10,42%, and secondary education, with 6,25%. Regarding the monthly income, 29,17% of the respondents with incomes between 2500–7000 RON are open towards the purchase from peer-to-peer platforms, followed by those with incomes over 7000 RON, with a percentage of 16,67%, and those with incomes below 2500 RON, with a percentage of 8,33%. On the opposite side are those who are not open for such purchases represented by those with incomes over 7000 RON and below 2500 RON, with an equal percentage of 2,08%. Those who have already purchased products or services from peer-to-peer platforms are 25% of people with incomes between 2500– 7000 RON, followed by 14,58% of the people with incomes over 7000 RON and 2,08% from the persons with incomes below 2500 RON. The most open people are those with the same income level as those in the previous charts. According to the professional status, it can be seen that employees occupy the first place in terms of openness towards these platforms, with a percentage of 35,42%, followed by entrepreneurs with 10,42%, followed by freelancers

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with 6,5% and pupils or students with 2,08%. On the opposite side were 2,08% of employees and 2,08% of freelancers because they probably prefer traditional services. Respondents who have already purchased products or services through these platforms were 27,08% of employees, 6,25% of retirees, 4,17% of entrepreneurs and freelancers, the latter holding an equal percentage. As an overview, it is observed that women, aged between 26–35 years, with higher education, with incomes between 2500–7000 RON and professional status as employees are open to purchases from peer-to-peer platforms, although they have no previous experience with them. Cultural, social and personal factors have different effects on consumer behaviour. First, culture shapes people’s desires, and therefore cultural variables become crucial to understanding consumer behaviour in different cultures. Second, reference groups, such as family, role, and social status, are the most influential triggers that are classified as social factors. Third, consumer behaviour is also generated by personal factors that include age and life cycle stage, occupation and economic circumstances, personality and self-concept, lifestyle and values. Among these factors, the most influential is culture. Given the globalization and the fact that human interaction with global and local communities exists in a new formula, evolving with the advent of digital technology, their purchasing model, product use and experience in general have undergone major changes. Considering that women in general, especially the younger ones, have a more sensitive personality, denotes that they are the most influenced by the culture of consumerism promoted in Romania in the last decade. Also, the evolution of the field regarding consumer behaviour has been influenced by various disciplines such as psychology and anthropology (Chart 5.23).

5.1 Quantitative Research Regarding the Implications …

Gender

185

Age

60.00

40.00 54.17

37.50

35.00

50.00

30.00

40.00

25.00

31.25

30.00 20.00

Feminine

20.00

Masculine

15.00

26-35 years Over 36 years 10.42

10.00

8.33 6.25

10.00

18-25 years

6.25

5.00

4.17

0.00

0.00 Yes

No

Yes

No

Studies 50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

45.83

Secondary educaon 29.17

Postgraduate educaon Primary educaon 12.50

8.33

Higher educaon

2.08 0.00

2.08 Yes

No

Income

Professional status 60.00

50.00 45.83

45.00

52.08

50.00

40.00 35.00 30.00

29.17

25.00 20.00 15.00 8.33

10.42

10.00

4.17 2.08

5.00

0.00 Yes

No

Employee

2500-7000 RON

40.00

Entrepreneur

Over 7000 RON

30.00

Pupil/ Student

Under 2500 RON

20.00

Freelancer 14.58 10.42 6.25 2.08

10.00 0.00 Yes

12.50 2.08

Pensioner (Rered)

0.00 No

Chart 5.23 Opting for purchasing of sustainable products/ services based on gender, age, education, income and professional status (%). (Source: Author)

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According to the values in the charts above, it can be seen that both women and men take into account the degree of sustainability of products or services when purchasing, with a percentage of 54,17% and 31,25%, respectively. Those who do not take sustainability into account have lower percentages, such as 8,33% of women and 6,25% of men. This indicates that people are increasingly concerned about sustainability and quality in their choices. 37,50% of those aged between 26–35 years and over 36 years, and 10,42% of those aged between 18–25 years, choose more sustainable products or services at the time of purchase. 6,25% of those aged between 26–35 year, and an equal percentage of 4,17% of those aged between 18–25 years and over 36 years, do not opt for sustainable products or services. The latter do not believe in the existence of sustainable products or services or do not care what effects they have on themselves, other beings or the environment. Sustainable products or services are preferred for purchase by 45,83% of those with higher education, by 29,17% of those with postgraduate studies, by 8,33% of those with secondary education, and by 2,08% of those with primary education. On the opposite side are 12,50% of those with higher education and 2,08% with postgraduate studies. Given the level of education, there are individuals who do not take into account the effects of their choices. This indicates that there are other factors more determinant than studies that can influence individuals, such as home education, one’s own ingrained experiences and beliefs, or the degree of selfishness and lack of self-love and care of others. The good news is that most respondents take sustainability into account, and at some point they can influence others, for example. Those with monthly incomes between 2500–7000 RON and over 7000 RON have the highest percentages, of 45,83%, and 29,17%, respectively, regarding the sustainable choices when purchasing products or services, being followed by those with incomes below 2500 RON, with a percentage of 10,42%. On the opposite side are those who do not take into account their effects at the time of purchase, namely, 8,33% of those with incomes between 2500–7000 RON, 4,17% of those with incomes over 7000 RON, and 2,08% of those with incomes below 2500 RON. Analyzing this graph, it is likely that some of the respondents’ answers are unrealistic for fear of being judged. Considering both the level of income and the prices of sustainable products or services, it can be deduced that it would be more difficult for an individual with an income below 2500 RON to purchase only organic, sustainable products and services, although one may want to. The only viable way would be to be self-sufficient and to be able to buy fewer sustainable products or services. With regards to people who do not take into account the effects of their own purchases, they may include smokers

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187

or people with various addictions who cannot refrain from various products or services, although they would like to make more sustainable choices in general. Among the many people who take sustainability into account when purchasing products or services are 52,08% of employees, 14,58% of entrepreneurs, 10,42% of freelancers, 6,25% of retirees and 2,08% of pupils or students, which results that individuals want to improve their lifestyle and tend towards more sustainable and quality products and services. The level of information has also spread among consumers, who are more aware and willing to put themselves first, and to love themselves, choosing products and services that are beneficial to themselves and others, including the environment in which they live in. At the opposite pole, there are 12,50% of employees and 2,08% of freelancers. Large companies have an important role to play in educating consumers and providing them with more sustainable products and services. Companies that provide more sustainable products and services are building a more beneficial image and reputation in front of consumers and society. As an overview, it can be seen that women aged between 26–35 years, and over 36 years, with higher education, with incomes between 2500–7000 RON, and professional status of employees consider the degree of sustainability of products or services at the time of purchase (Chart 5.24). According to the gender chart, it can be seen that the highest values are in the category of 75%, with a percentage of 39,85% for women, and 18,75% for men, followed by those who are considered responsible consumers 100%, with precentages of 12,50% for men and 10,42% for women, followed by those who consider themselves conscious consumers 50%, 10,42% for women, and 4,17% for men, who are followed by 2,08% of less responsible women (25%), and 2,08% of men who consider themselves totally irresponsible about consumption. It can be seen that women consider themselves more responsible as consumers compared to men who have a more negative or realistic opinion about it.

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Gender

Age

45.00

35.00

40.00

39.58

30.00

29.17

35.00 25.00

30.00

22.92 20.00

25.00 20.00

18.75

Masculine

10.42 8.33

10.00

12.50 10.42

10.42

10.00

0.00

26-35 years

15.00

Over 36 years

15.00

5.00

18-25 years

Feminine

8.33 5.00

4.17 2.08 2.08 0.00 0.00 0% 25% 50% 75% 100%

0.00

6.25 4.17 4.17 2.08 2.08 2.08 0.00 0.00 0% 25% 50% 75% 100%

Studies 35.00

33.33

30.00 25.00 Secondary educaon 20.00 16.67

15.00 12.50

Higher educaon

6.25

5.00 2.08 0.00

2.08 0.00

0.00 0%

25%

2.08 0.00

2.08

50%

75%

Income

0.00 100%

Professional status

30.00

35.00

25.00

16.67

15.00

10.42 10.42

10.00

6.25 2.08 2.08

0.00 0.00

2500-7000 RON Over 7000 RON

25.00

Entrepreneur

20.00 16.67

15.00

Pupil/ Student

12.50 Under 2500 RON

10.00 5.00

2.08

Employee

31.25

30.00

25.00 22.92

20.00

0.00

Primary educaon

10.42

10.00

5.00

Postgraduate educaon 12.50

0.00 0.00

10.42 8.33 6.25 4.17 2.08 2.08 2.08 2.08 2.08 0.00 0.00 0.00 0.00 0% 25% 50% 75% 100%

Freelancer Pensioner (Rered)

Chart 5.24 Considerations with regards to being or not being a conscious consumer by gender, age, education, income and professional status (%). (Source: Author)

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189

According to the graph related to age, it is found that respondents over the age of 36 years have the highest percentage for the category 75%, namely 29,17%, followed by those aged between 26–35 years for the same category, with a percentage of 22,92%. The next places are occupied by those who opted for the category of 100%, namely 10,42% of people aged between 26–35 years, 8,3% of people over 36 years. They were followed by 8,33% of people aged between 26–35 years, less confident because they opted for the category 50%. The following positions are for people aged between 18–25 years, who opt for the category 75% with a percentage of 6,25%, and for the category 100%, with a percentage of 4,17%. Also, 4,17% of people over the age of 36 years opted for the category 50%. 2,08% of people aged between 18–25 years opted for the category 25%, and 2,8% of people aged between 26–35 years opted for 0%. Following the analysis of this graph, it can be seen that older people are more oriented towards responsible consumption, although most age groups have opted for conscious consumption, the category 75%. According to the chart representing studies, 33,33% of those with higher education, 16,67% of those with postgraduate studies, 6,25% of those with secondary education and 2,08% of those with primary education opted for the category 75%. 12,50% of those with postgraduate studies, and 10,42% of those with higher education opted for the category 100%. 12,50% of those with higher education, and 2,88% of those with secondary education opted for the category 50%. 2,08% of those with postgraduate studies opted for the category 25%, and 2,08% of those with higher education chose the category 0%. It can be seen that those who consider themselves the most responsible consumers are those with university degrees because they have a higher degree of self-confidence and are more informed in some respects. According to the monthly income chart, it can be seen that 25% of the persons with incomes between 2500–7000 RON, 22,92% of the persons with incomes over 7000 RON, and 10,42% of the persons with incomes below 2500 RON opted for the category 75% in terms of their belief in responsible consumption. 16,67% of the persons with incomes between 2500–7000 RON, and 6,25% of the persons with incomes over 7000 RON, chose the category 100%. 10,42% of the persons with incomes between 2500–7000 RON, and 2,08% of the persons with incomes over 7000 RON, and below 2500 RON opted for the category 50%. 2,08% of the persons with incomes over 7000 RON chose the category 25%, and 2,08% of the persons with incomes between 2500–7000 RON, opted for the category 0%. According to the chart, more and more people want to be responsible and aware consumers.

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Regarding the professional status, 31,25% percentage of the number of employees, 10,42% percentage of the number of entrepreneurs, 8,33% percentage of the number of freelancers, 6,25% percentage of the number of retirees, and 2,08% percentage of the number of pupils or students chose the category 75% in terms of their own belief in conscious and responsible consumption. 16,67% of respondents with professional status as employees, 4,17% of entrepreneurs, 2,08% of frelancers opted for the category 100%—conscious consumers. 12,50% of employees and 2,8% of freelancers chose the category 50%—responsible consumers. 2,08% of employees chose the category 25%, and 2,08% of employees also opted for the category 0%—responsible consumers. As an overview, it can be seen that women over the age of 36 years, with higher education, with a monthly income between 2500–7000 RON, and with professional status of employees are considered to be approximately 75% responsible consumers, which denotes a greater openness of Romanians towards quality and sustainable products and services. It is almost impossible in today’s society for consumers to be 100% responsible and price conscious towards the effects of their choices and actions because the current system does not allow it. It can be noticed slight differences with regards to the responses between the graphs above and those in the chart. 4.23. This may occure due to the fact that people in general, when it comes to themselves, and not an external factor, such as a product or service, tend to have a better or even distorted view, often showing what they want to be, not what they really are (Chart 5.25). According to the graphs above, the degree of responsibility or awareness that the respondents consider to have regarding the outside world can be ascertained in more detail. According to the gender chart, 33,33% of women and 16,67% of men consider themselves often responsible for the effects of their choices on the environment and other beings. 14,58% of women and 12,50% of men consider themselves to be always responsible for the effects of their choices on the outside world. 16,67% of women and 6,25% of men consider themselves to be rarely responsible for the effects of their choices on the environment and other beings.

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191

Gender 35.00

Age 30.00

33.33

30.00

25.00

25.00

20.00

20.00 16.67

15.00 10.00

14.58 12.50

16.67

Feminine

15.00

Masculine

10.00

6.25

5.00

5.00

0.00

27.08 18.75

18-25 years

16.67

26-35 years

10.42 6.25

6.25 4.17

4.17

Over 36 years

0.00 Oen

Always

Rare

Oen

Always

Rare

Studies 35.00

33.33

30.00 25.00

Secondary educaon

20.00 15.00

2.08

0.00

0.00 Oen

Primary educaon

12.50 8.33 4.17 2.08

10.00 5.00

4.17

0.00 Rare

Income

Professional status 35.00 30.00

29.17

Employee

2500-7000 RON

20.00 16.67

Pupil/ Student 15.00

12.50

6.25

Entrepreneur 20.83

20.00

Over 7000 RON

14.58 Under 2500 RON

10.00 5.00

31.25

25.00

25.00

15.00

Higher educaon

2.08

Always

35.00 30.00

Postgraduate educaon

16.67

14.58

8.33 6.25

6.25

5.00

8.33 6.25 2.08

0.00

0.00 Oen

Always

Rare

12.50

Freelancer

6.25 4.17

Pensioner (Rered)

10.00

0.00 Oen

2.08 0.00 0.00 Always Rare

Chart 5.25 Respondents’ degree of responsibility/ awareness of the effects of their choices on the environment and other beings by gender, age, education, income and professional status (%). (Source: Author)

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Regarding age, consider themselves to be often responsible for the effects of their choices on the outside world, 27,08% of people aged between 26–35 years, 18,75% of people over 36 years, and 4,17% of people aged between 18– 25 years. Respondents in the age category who consider themselves to be always responsible are 16,67% of people over the age of 36 years, 6,25% of people aged between 26–35 years, and 6,25% of people aged age between 18–25 years. The ones who think about themselves to be rarely responsible are 10,42% percentage of people aged between 26–35 years, and 6,25% percentage of people over the age of 36 years and aged between 18–25 year. It can be seen that older people have a higher degree of awareness of their effects on the environment and other beings. That is why more and more people are turning to vegetarianism and veganism, and giving up the purchase of natural leather products. Regarding studies, it is observed that those who often take into account the effects of their own choices on the environment and other beings, are 33,33% of those with higher education, 14,58% of those with postgraduate studies, and 2,08% of those with secondary education. 12,50% of those with postgraduate studies, 8,33% of those with higher education, 4,17% of those with secondary education, and 2,08% of those with primary education always take into account their effects. Those who rarely consider their effects are 16.67% of those with higher education, 4.17% of those with postgraduate studies, 2,08% of those with secondary education. It seems that those with a university degree take into account more often the effects of their own choices on the external environment and other beings because they could be informed in the educational institutions during their studies. Also, the percentage of respondents with secondary and primary education was lower than those with university education. Regarding the monthly income, it can be seen that those who often take into account the effects of their choices on the environment and other beings, are 29,17% of those with incomes between 2500–7000 RON, 14,58% of those with incomes over 7000 RON, and 6,25% of those with incomes below 2500 RON. Those who always take into account their effects are 12,50% of those with incomes above 7000 RON, 8,33% of those with incomes between 2500– 7000 RON, and 6,25% of those with incomes below 2500 RON. Those who do not take so much into account their effects on others are 16,67% of those with incomes between 2500–7000 RON, and 6,25% of those with incomes over 7000 RON. It is worth noting that those with higher incomes are much more flexible in their choices. Those with higher incomes will always opt for higher quality or more sustainable services and products, which will often not endanger the environment and other beings so much.

5.1 Quantitative Research Regarding the Implications …

193

From the point of view of the professional status, it can be seen that employees have the highest percentages for all categories because among them were the most respondents, namely 31,25% for those who often take into account their own effects, 20,83% for those who rarely take into account their own effects, and 12,50% for those who always consider the effects of their own choices on the environment. As for entrepreneurs, 6,25% represented the highest percentage given by the ones who always and often consider the effects of their own choices, followed by those who rarely take into account their effects with a percentage of 2,08%. 8,33% of freelancers often consider the effects of their choices on the outside world and other beings, followed by the ones who always consider with a value of 4,17%. Also, 4,17% percentage of retirees consider frequently the external effects of their choices upon the environment, followed by the ones who often consider, having a percentage of 2,08%. 2,08% of pupils or students also consider the effects of their own choices on the environment and other beings. According to the graphs above, it can be seen that women aged between 26–35 years and over 36 years, with university degrees, with a monthly income between 2500–7000 RON, and professional status as employees take into account the effects of their own choices on the environment and other beings, because in general women have a more sensitive and motherly side, although they can be found in the other extreme. Analyzing the graphs, it can be seen that individuals generally tend towards more compassion and understanding, are aware that everything is part of the whole and behave more and more sustainable. There is also the second category who are indifferent to the effects of their own choices showing selfishness and superficiality. Also, a large number of people who consider themselves responsible are still using products and services that harm or endanger the environment and other beings without being aware of them (Chart 5.26).

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Gender

Age

80.00

50.00

Feminine

40.00 31.25

Masculine

20.00 0.00

Yes

41.67

40.00

62.50

60.00

37.50 18-25 years

30.00

26-35 years

20.00

6.25

10.00

0.00

0.00

14.58

Over 36 years

6.25 0.00 Yes

No

No

Studies 60.00 50.00 40.00 30.00 20.00 10.00 0.00

52.08 Secondary educaon Postgraduate educaon

31.25

Primary educaon 8.33 2.08

Higher educaon

6.25 0.00

Yes

No

Income

Professional status

60.00

70.00

50.00

60.42

60.00

50.00

Employee

50.00 40.00 2500-7000 RON

Entrepreneur 40.00

31.25

30.00

Over 7000 RON

Pupil/ Student 30.00

Under 2500 RON

20.00

Freelancer 20.00

12.50

10.42

10.00 4.17 2.08 0.00

0.00 Yes

Pensioner (Rered)

14.58

10.00

No

6.25

4.17 2.08 0.00

2.08

0.00 Yes

No

Chart 5.26 Respondents’ perception regarding the maintenance of a faulty system by the world’s population through the purchase of ineffective, unsustainable products and services according to gender, age, education, income and professional status (%). (Source: Author)

5.1 Quantitative Research Regarding the Implications …

195

According to the gender chart, it can be seen that the majority of respondents who consider that the world population maintains a faulty system by purchasing unsustainable products or services are 62,50% of women and 31,25% of men. The exception is 6,25% of men, who believe that supply companies should reorient themselves towards the production and supply of more sustainable products and services. According to the age graph, it can be seen that 41,67% of people over the age of 36 years, 37,50% of people aged between 26–35 years, and 14,58% of people aged between 18–25 years, consider that a defective system is maintained by the purchase of unsustainable products or services by the world’s population. At the opposite pole are people aged between 26–35 years, with a percentage of 6,25% who believe that increased demand for more sustainable products and services would not affect current production and services. According to the study chart, 52,08% of those with higher education, 31,25% of those with postgraduate education, 8,33% of those with secondary education and 2,08% of those with primary education believe that the world’s population maintains an unfriendly system when it comes to purchasing products and services. 6,25% of those with higher education consider the opposite. According to the monthly income chart, 50% of the respondents with incomes between 2500–7000 RON, 31,25% of the respondents with incomes over 7000 RON, 12,50% of the respondents with incomes below 2500 RON consider that we live in an unsustainable system maintained by humans. 4,17% of those with incomes between 2500–7000 RON, and 2,08% of those with incomes over 7000 RON consider that a defective system is not maintained by the purchase of unsustainable products or services by the world’s population. As stated by the graph related to the professional status, 60,42% percentage of employees, 14,58% percentage of entrepreneurs, 10,42% percentage of freelancers, 6,25% percentage of retired respondents and 2,08% percentage of pupils or students believe that the world’s population maintains a faulty system by purchasing unsustainable and harmful products or services. On the other hand, 4,17% of employees and 2,08% of freelancers believe that the demand has no influence. Analyzing the graphs, it can be deduced that women over the age of 36 years, with higher education, with a monthly income between 2500–7000 RON and employee status consider that the world’s population maintains a defective system by purchasing unsustainable and harmful products or services. This indicates that most people are informed and aware of the current system and society. A small percentage of respondents believe that companies should refocus on their own towards more sustainable products and services for the population, even if they

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are now more profit-oriented. They also believe that these companies should be forced by state institutions (Chart 5.27).

Gen

Age

60.00

35.00 52.08

50.00

33.33

30.00 25.00

40.00 30.00

15.00

Masculine

20.00

0.00

Yes

14.58

10.42

10.00

10.42 8.33

10.00

18-25 years

20.00

Feminine

29.17

8.33

26-35 years Over 36 years

5.00 0.00

0.00

No

Yes

No

Studies 50.00 43.75 40.00

Secondary educaon 30.00

29.17

Postgraduate educaon

20.00

Primary educaon 14.58

10.00

2.08

6.25 2.08

0.00

Higher educaon

2.08 0.00

Yes

No

Professional status

Income 60.00

50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

Employee

43.75

50.00

27.08

10.42

Yes

10.42 6.25 2.08 No

50.00

2500-7000 RON

40.00

Entrepreneur

Over 7000 RON

30.00

Pupil/ Student

Under 2500 RON

20.00

14.58

10.00

8.33 6.25 2.08

0.00 Yes

14.58 4.17 0.00

Freelancer Pensioner (Rered)

No

Chart 5.27 Respondents’ perception regarding the reorientation of organizations towards producing and selling sustainable products and services if the demand would increase, according to the gender, age, education, income and professional status (%). (Source: Author)

5.1 Quantitative Research Regarding the Implications …

197

Analyzing the graphs above, 52,08% of women and 29,17% of men believe that manufacturing and selling organizations would be redirected to more sustainable products and services if the demand for such products and services would increase, 10,42% of women and 8,33% of men think not. 33,33% of the respondents aged between 26–35 years, aged over 36 years and 14,58% of respondents aged between 18–25 years, believe that producers and sellers would be redirected towards more sustainable products and services if the demand was increased, at the opposite pole are 10,42% of the respondents aged between 26–35 years and 8,33% of the respondents over 36 years. 43,75% of respondents with higher education, 29,17% of respondents with postgraduate education, 6,25% of respondents with secondary education and 2,08% of respondents with primary education believe that organizations would reorient their production because they would not face competition and would lose their market position. 14,58% of respondents with higher education and 2,08% of respondents with postgraduate and secondary education believe that organizations would not refocus on more sustainable products and services because they are far too focused on profit. 43,75% of the respondents with incomes between 2500–7000 RON, 27,8% of the respondents with incomes over 7000 RON and 10,42% of the respondents with incomes below 2500 RON, consider that the producing and selling organizations would reorient to making more sustainable products and services if the demand was higher as they would be forced to maintain their market position. 10,42% of the respondents with incomes between 2500–7000 RON, 6,25% of the respondents with incomes over 7000 RON and 2,08% of the respondents with incomes below 2500 RON, consider the opposite. 50% of employees, 14,58% of entrepreneurs, 8,33% of freelancers, 6,25% of retirees and 2,08% of pupils or students believe that producer and supplier organizations would be redirected to sustainable products and services, 14,58% of employees and 4,17% of freelancers consider not. As an overview, it can be seen that women, aged between 26–35 years and over 36 years, with higher education, with a monthly income between 2500–7000 RON, and professional status of employees, consider that producer and seller organizations would reorient to make more sustainable products and services if the demand for them was increased, although most respondents believe that large companies and corporations are involved in online social responsibility programs to use this as a growth indicator for their own business. Corporate social responsibility can be a tool for companies to strengthen their reputation as well as their profits. The fact that they promote themselves as producers or suppliers of sustainable products or services is not always true, as

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Age

Gender 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00

25.00 22.92 20.00 16.67

15.00 10.00

10.42 8.33

10.42 8.33

5.00

4.17

0.00

0.00

Feminine Masculine

2.08

18.75 12.50 10.42

10.42

18-25 years

6.25 4.17 4.17 4.17

26-35 years

8.33 6.25 2.08 0.00

Over 36 years

0.00

Studies 30.00 25.00

25.00 Secondary education

20.00

16.67 14.58

15.00 10.00 6.25 4.17 2.08

5.00 0.00

Often

Higher education 0.00 Very often

2.08 0.00 Rare

2.08 0.00 Always

Income

2.08 0.00 Rare

Professional status 30.00

18.75

18.00

18.75

25.00

16.00 14.00 12.50

12.00

8.00

8.33

6.00

6.25

4.00

4.17

12.50

2500-7000 RON

6.25

Over 7000 RON

Under 2500 RON

16.67 15.00

Employee Entrepreneur

14.58 Pupil/ Student

10.00 8.33

5.00

2.08 2.08 2.08 2.08 0.00

25.00

20.00

10.00

0.00

Primary education

8.33

20.00

2.00

Postgraduate education

8.33

0.00

6.25 4.17 4.17 2.08 2.08 2.08 2.08 2.08 0.00 0.00 0.00 0.00

Freelancer Pensioner (Retired)

Chart 5.28 Frequency of review search before making online purchases according to gender, age, education, income and professional status (%). (Source: Author)

5.1 Quantitative Research Regarding the Implications …

199

certain aspects of production or even of products and services themselves are far from sustainable. But if the demand was to grow steadily towards more sustainable products and services, these companies would be forced to change in order to stay in the market, leaving only the truly sustainable ones (Chart 5.28). According to the analysis of the charts, it can be seen that most respondents are interested in reviews before making online purchases. According to the gender chart, 22,92% of women and 10,42% of men always look for reviews before making online purchases. 16,67% of women and men are looking for reviews very often, 10,42% of women and 8,33% of men are looking for reviews often, 8,33% of women and 2,08% of men are rarely looking for reviews and 4,17% of women look for reviews very rarely. In terms of age, those who opted for the category that is always looking for reviews are 18,75% of the respondents aged between 26–35 years, 10,42% of respondents over 36 years, and 4,17% of the respondents aged between 18–25 years. Those who have chosen the category very often are 12,50% of those aged between 26–35 years and over 36 years, and 8,33% of those aged between 18–25 years. 10,42% percentage of the respondents over the age of 36 years, 6,25% percentage of the respondents aged between 26–35 years and 2,08% percentage of the respondents aged between 18–25 years were the ones who opted for the category often when it comes to searching for online reviews. Respondents who chose the rare category are 6,25% of those aged between 26–35 years and 4,17% of those with the age over 36 years. The respondents who rarely opted for the online review search are 4,17% of those over the age of 36 years. According to the study chart, it can be seen that the highest percentages are held by those with higher and postgraduate studies for all categories. Respondents who are always looking for reviews are 16,67% of those with higher education, 14,58% of those with postgraduate studies, 2,08% of those with secondary education. Respondents who search for reviews very often are 25% of those with higher education, and 8,33% with postgraduate studies. Respondents who often look for reviews are 6,25% of those with higher and postgraduate education, 4,17% of those with secondary education and 2,08% of those with primary education. Respondents who rarely look for reviews are 8,33% of those with higher education and 2,08% of those with postgraduate studies. Respondents who rarely look for reviews are 2,08% of those with higher education and 2,08% of those with secondary education. According to the graph related to the monthly income, one can see a symmetry in terms of those with incomes over 7000 RON and those with incomes between 2500–7000 RON. Respondents who always look for online reviews before purchases are 18,75% of those with monthly incomes between 2500–7000 RON,

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12,50% of those with incomes over 7000 RON, and 2,8% of those with incomes under 2500 RON. Respondents who often search for online reviews before purchases are 18,75% of those with incomes between 2500–7000 RON, 12,50% of those with incomes over 7000 RON and 2,08% of those with incomes under 2500 RON. Respondents who often look for online reviews before purchases are 8,33% of those with incomes between 2500–7000 RON, 6,25% of those with incomes over 7000 RON, and 4,17% of those with incomes below 2500 RON. Respondents who rarely look for online reviews before purchases are 6,25% of those with incomes between 2500–7000 RON and 2,08% of those with incomes over 7000 RON, and below 2500 RON. Respondents who rarely look for online reviews before purchases are 2,08% of those with incomes over 7000 RON and below 2500 RON. According to the chart representing the professional status, respondents who always look for online reviews before purchases are 25% of employees, 4,17% of freelancers, and 2,08% of entrepreneurs and retirees. Respondents who often look for online reviews before purchases are 16,67% of employees, 8,33% of entrepreneurs, 4,17% of freelancers, 2,08% of retirees and pupils or students. Respondents who often look for online reviews before purchases are 14,58% of employees, 2,08% of entrepreneurs and retirees. 6,0% of employees and 2,08% of entrepreneurs and freelancers look rare for online reviews before making a purchase. Respondents who rarely look for online reviews before purchases are 2,08% of employees and freelancers. Looking at all the graphs, it can be seen that women, aged between 26–35 years, with higher education, with a monthly income between 2500–7000 RON, and with professional status as employees always look for reviews before making online purchases. The highest values are always and very often, which means that there is an increased desire to be informed about a product or service before making a purchase. Also, most of the reviews are written by other consumers, that increases the confidence of those who want to buy. The option to write reviews gives a greater degree of transparency for online platforms, allowing users to interact more easily with each other, and provides a positive image of the company that owns the platform (Chart 5.29).

5.1 Quantitative Research Regarding the Implications …

Gender 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

Age 41.67

20.83 4.17

8.33 6.25

201

10.42 4.17

Feminine Masculine

35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

31.25 22.92 8.33 6.25 2.08 0.00

6.25 0.00

6.25 2.08

8.33

18-25 years

26-35 years Over 36 years

Studies 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

37.50 Secondary educaon 20.83 6.25

6.25

6.25

2.08 0.00 Suppliers/ manufacturers

2.08 0.00 Forums

2.08 Friends/ acquaintances

Income 35.00 30.00

25.00 20.83 2500-7000 RON

15.00 10.42

10.00 5.00 0.00

6.25 2.08 0.00

2.08

4.17 0.00 Websites

Higher educaon

Professional status 33.33

20.00

Postgraduate educaon Primary educaon

8.33

8.33 8.33 4.17 2.08

Over 7000 RON Under 2500 RON

45.00 40.00 39.58 35.00 30.00 25.00 20.00 10.42 10.42 15.00 8.33 10.00 4.17 8.33 2.08 2.08 5.00 2.08 2.08 2.08 2.08 4.17 0.00 0.00 0.00 0.00 2.08

Employee Entrepreneur Pupil/ Student Freelancer Pensioner (Rered)

Chart 5.29 Preferences regarding the informational tools used to obtain information about the desired products/ services according to gender, age, education, income and professional status (%). (Source: Author)

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According to the graphs above, it can be noticed that the preferences with regards to the informational tools utilized to gain information about the preferred products/ services are linked to the websites directly. With regards to the chart representing the gender, it can be observed that the preferences for websites are by 41,67% of women and 20,83% of men. The forum preferences are by 4,17% of women and men. The openness to information provided by friends and acquaintances is chosen by 10,42% of women, and 4,17% of men. 8,33% of men and 6,25% of women trust the information given by suppliers or producers. According to the graph related to age, it can be seen that the preferences for websites are by 31,25% of those aged between 26–35 years, 22,92% of those over 36 years and 8,33% of those aged between 18–25 years. Forum preferences are by a percentage of 6,25% representing those over the age of 36, and 2,08% representing those aged between 26–35 years. The degree of openness to information offered by friends and acquaintances is chosen by 6,25% representing those over the age of 36 years and those aged between 18–25 years, and 2,08% of those aged between 26–35 years. Trust in the information given by suppliers or manufacturers is chosen by 8,33% of those aged between 26–35 years, and 6,25% of those over 36 years. According to the study chart, it can be seen that the preferences for websites are by 37,50% of those with higher education, 20,83% of those with postgraduate studies and 4,17% of those with secondary education. The forum preferences are by 6,25% of those with higher education and 2,08% of those with postgraduate education. The openness to the information provided by friends and acquaintances is chosen by 8,33% of those with higher education, and 2,08% of those with postgraduate, secondary and primary education. Confidence in the information provided by suppliers or producers is chosen by 6,25% of those with higher and postgraduate education and 2,08% of those with secondary education. According to the monthly income chart, it can be seen that the preferences for the websites are by 33,33% of those with monthly incomes between 2500–7000 RON, 20,83% of those with incomes over 7000 RON, and 8,33% of those with incomes below 2500 RON. Preferences for forums are by 6,25% of those with monthly incomes between 2500–7000 RON and 2,08% of those with incomes over 7000 RON. The openness to information provided by friends and acquaintances is chosen by 8,33% of those with incomes over 7000 RON, 4,17% of those with incomes between 2500–7000 RON and 2,08% of those with incomes under 2500 RON. The respondents who trust the information given by suppliers or producers are10,42% of those with incomes between 2500–7000 RON, and 2,08% of those with incomes over 7000 RON and under 2500 RON.

5.1 Quantitative Research Regarding the Implications …

203

According to the chart related to the professional status, it can be seen that the preferences for websites are by 39,58% of employees, 8,33% of entrepreneurs and freelancers, 4,17% of retirees, and 2,08% of pupils or students. The forum preferences are by 4,17% of employees, and 2,08% of entrepreneurs and freelancers. Openness to information provided by friends and acquaintances is chosen by 10,42% of employees, and 2,08% of entrepreneurs and retirees. 10,42% of employees and 2,08% of entrepreneurs and freelancers rely on information provided by suppliers or producers. As an overview, it can be seen that women aged between 26–35 years, with higher education, with monthly incomes between 2500–7000 RON, and with professional status as employees opt for websites as the main preferences regarding the informational tools used to obtain information about the desired products/ services. Websites can be dedicated exclusively to those products or services, containing a lot of information about them. There may also be comment or review sections that add additional information to the existing content on the sites by other users who already have experience with the products or services desired by the potential consumers (Chart 5.30). 80

60

60

50

40

61.4

43.2

40

20

20 2.3

0

2.3

4.5

0

27.3

9.1

0

0 Informaon on social media plaorms 0

25%

50%

75%

100%

Informaon on peer-to-peer plaorms 0

25%

50%

75%

100%

Chart 5.30 To what extent did the information on social media and peer-to-peer platforms coincide with the reality regarding quality (%). (Source: Author)

Comparing the two charts above, it can be seen that peer-to-peer platforms have higher percentages in terms of information accuracy and transparency of platforms because they provide sections with ratings and reviews of other consumers who have already used the products or services. Also, all negative comments from other consumers appear publicly, which prevents the information from being unrealistic. The people or suppliers who would be suitable for such negative actions being immediately removed from the platforms. With regards to social platforms, they too can have a significant degree of transparency if there is no possibility of creating false accounts of suppliers or other parties interested

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in misleading potential consumers about various products or services. Also, even though most accounts are real, some users may add false or untrue comments about certain products or services just because they are requested by providers or have other benefits. Others may simply comment to converse, never actually using those products or services. Many situations can be identified on social platforms, often twisted because anyone can comment, anytime, compared to specialized platforms that promote only certain products or services, only for a few niches (Chart 5.31). Chart 5.31 The degree of familiarity regarding the terms: sharing economy, collaborative consumption, product as a service (%). (Source: Author)

80 70 60 50 40 30 20 10 0

70.5 54.5

50 50

45.5 29.5

Sharing economy

Collaborave consumpon Yes

Product as a service

No

With regards to the chart above, it can be noticed that there are comparatively equal percentages except for the ones related to the collaborative consumption, which denotes that a meaningful number of people know about these terms. The product as a service is better known among respondents because many have already experienced its consumption in various fields.

5.2 Qualitative Research Regarding Social Media …

5.2

205

Qualitative Research Regarding Social Media and the Degree of Influence that Social Media has on the Quality of Services

The interview method was used for the qualitative research of the doctoral thesis. The qualitative study measures the psychological phenomena that cannot be operationalized. In this sense, in order to accurately estimate how social media influences the quality of services in the context of the sharing economy, it was appreciated as appropriate to use the qualitative research method of interview type, by forming a focus group.

5.2.1

Description of the Qualitative Method

The qualitative analysis was first put into practice in the 1930’s by Kurt Lewin in order to examine small groups. Robert Merton and Paul Lazarfeld are the founders of the qualitative method. They applied the focus group to study the characteristics of propaganda and the audience of radio programs during the Second World War. The qualitative method has been shown to be increasingly used to examine people’s behaviour and attitudes in the 1950’s. Since the 1970’s, it has been widely accepted by researchers as a qualitative method.9 The focus-group has become the basic tool for marketing studies, being defined as a qualitative research, group interview from which social information can be extracted, which cannot result from a quantitative analysis, as investigation. In this research, the focus group was applied to complete the quantitative research in order to eliminate possible errors and to resume the hypotheses at the end of the study. Therefore, the working hypotheses from a qualitative point of view are taken into account and additional directions of evolution of the research can be obtained through the opinions and attitudes of the interviewees. At the same time, the organizer of the focus group must know very well the concepts and notions of the current stage of knowledge for the present topic regarding the 7 questions, have a good skill in communicating and have knowledge about the dynamics of small groups.

9 Dinc˘ a, M., Mihalcea, A., 2010. Metodologia cercet˘arii s¸tiin¸tifice – Note de curs. Bucure¸sti: Ed. Renaissance.

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5.2.2

The Structure and Size of the Sample

The number of the group participants was 10 people. They use the internet daily for various purposes: to socialize, to find out about various topics of interest, to purchase products/ services etc. The recruitment of participants was carried out by selection, considering the relevant questions in the questionnaire with regards to the impact of social media on the user’s perception of the level of the quality of services from online peer-to-peer platforms. The selection started from the frequency and persistancy of the internet connectivity, being chosen 20 people who marked the parameter “daily”. Out of the 20 people, 10 people were selected following the answers from the questionnaire. The focus group participants range in age from 20 to 45 years. The interview was conducted by a moderator in a neutral environment, who previously exposed to the participants the organizational training. They were informed that they would answer seven open-ended questions about the influence of social media on the user perception of the quality of services from peer-topeer platforms. The definition of the investigated concepts were specified in the interview. The focus group was conducted in December 2019. The duration of the interview was 60 minutes. To accommodate the participants, the moderator considered it useful to start the interview with a brief introduction by each participant. For an increased degree of sincerity on the part of the participants, it was specified in the discussion that there are no right or wrong answers. The working tool used to record the conversations was a mobile phone, recordings which were later transcribed. The detailed analysis of the answers of the interview is presented below.

5.2.3

The Results of the Qualitative Analysis

Based on the seven questions addressed to the focus group, the connections between online recommendations, peer-to-peer platforms and the perception of the quality of services were identified. It also highlighted the level of consumer awareness of the degree of sustainability of the purchased products/ services. Question 1: What kind of products or services do you usually buy online? This question aimed to identify the degree of trust and acquisition process of users regarding online platforms. Most people responded that they would rather buy nonfood items, such as clothing, footwear, books, cosmetics, electronics, appliances,

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travel tickets, courses, season tickets and so on. Less than half of those surveyed said that they would buy anything online, including food. One person stated: “I do not trust to buy food online if it is not properly packaged and sealed. Even so, I prefer to go to a supermarket to see and touch that product.” Another person said: “I prefer to buy only online services, such as courses, subscriptions and travel tickets because anyway, they are intangible, and until I actually experience them, I have no way of knowing exactly how they really are.” Another answer was: “I am open to buy almost anything online, it is much more convenient and efficient for me in terms of time. If a product or service does not meet my expectations, it can be returned or in the case of a service, I perceive it as an experience. So far I did not encounter any problems with the purchased products or services before. When making any online purchase I follow many tutorials, reviews or other materials depending on the nature of the product or service, to make sure I make the right choice.” Question 2: What do you follow on social media platforms? Are there any influencing factors during the use of these platforms? This question about the influence of social media on the user’s perception and how it could change based on the content of the platforms was illustrative. Most of the answers were that people are looking for information about areas of interest, news, socializing, entertainment, music, other people, and that they are promoting their own business. One person has acknowledged that he is constantly following other people, and his self-esteem and self-confidence are influenced by other people’s positive posts. Another person stated that: “I feel an excessive attachment to social platforms, especially Facebook, I am addicted to Facebook. The first thing I do in the morning after I wake up is open Facebook and update myself on what my virtual friends have posted. Although I don’t even know most of them, their posts influence me both positively and negatively. Also, when I start scrolling, I spend many hours per day on social media platforms. I’m aware that I’m not doing well and I’m wasting my time, but I can’t help it because I feel a strong urge to connect.” Another interviewee replied that: “My only interests on social media platforms are to promote my own business, to connect with as many people as possible to find out their desires and needs, and to generate profit for my own business. I’ve never felt dependent of social media, but I haven’t tried to use it for long periods of time to see how I feel. Sometimes I also look for entertainment materials. I have my own sites where I find out about areas of interest because social media can be easily manipulated.”

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Another answer was: “I am looking for influential people who inspire me in my daily life, positive information related to personal development, socializing with friends, meeting new people. I usually like to explore, and social media offers this opportunity because there are no boundaries and limitations. I see it as a space with infinite possibilities. As for the dependence of various social platforms, I believe that there is self-control and depends of how we look at things, I choose to avoid negative posts and people.” Question 3: What do you take into consideration in the online environment in order to be sure of the quality of a product or service that you want to buy? The majority of respondents answered that in order to be sure of the quality of a product or service before their online purchases, they take into account the number of online reviews and recommendations, the brand/ company, past experiences with similar products or from the same company and the number of positive comments/ opinions about the product/ service. One person noted that: “To be sure of the quality of a product or service I am going to buy online, I always consider the number of online reviews or recommendations and the number of followers because the popularity of a product or service gives me greater assurance.” Another person replied that: “To be sure that a product or service is of high quality before purchase, I take into account the number of online and brand reviews. Branded, original products have a higher quality degree although they are more expensive. If the price is too low, I always question myself, even though some brands have significant discounts.” Another interviewee replied: “For me, the number of followers, the low price and the comments of the satisfied people who have already used the product are important. I believe that there are high quality products or services at low prices for those who know where to look, because the commercial add-ons of some online stores are much lower due to the low costs of administration.” Question 4: What determined you to purchase products or services from Airbnb, Uber, or other similar peer-to-peer platforms? This question sought to highlight the benefits of peer-to-peer platforms. Most respondents answered that the main determinant was the quality-price ratio, followed by the degree of transparency of these platforms and the degree of sustainability in general. One interviewee replied: “I prefer Uber to taxis because the platform allows me to see who the driver will be, and the feedback before I get in the car. The degree

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of transparency gives me a sense of security. If I find something suspicious, I can cancel the ride with just one click.” Another interviewee replied that: “For the first purchases, the recommendations of my relatives and friends determined me to use services mediated by these platforms. Then I bought them myself because I liked them due to their transparency degree, to the quality, the convenience, the low price, the need and the familiarity with the services provided through Airbnb.” Another person mentioned that: “Openness to everything new has led me to purchase services from peer-to-peer platforms. I have been using Uber since it was launched on the Romanian market, when very few people knew about it. What attracted me the most was the degree of transparency, the ratings and the posted comments. I’ve used other platforms, like eBay or Airbnb. Through Airbnb, it seemed extraordinary to me that I could get in touch with the locals of the respective destination, nothing is standardized. Everything I need can be found on my mobile phone app. I don’t necessarily consider the conditions, I prefer to discover the place and the people, but what generated my curiosity was the fact that Airbnb arranges accommodation services for all pockets and tastes.” Question 5: How do you define the quality of a product or service? By asking this question, the fact that people have different perceptions of quality was emphasized. Most people associate quality with the level of compliance of the product/ service. As well, with their own requirements and with all the characteristics that act to satisfy a personal need. Respondents also associate quality with product performance and long-term use. One person stated that: “I define quality as the general benefits of the product/ service, the degree of innovation and ease of use, the popularity of the product or service, the brand and the price. If a product or service has a lot of positive feedback, then it is definitely a good product or service that deserves more attention.” Another answer was that: “I define quality by my experience or that of others following the use/ consumption of that product or service. If it meets my needs and desires, and if it passes the test of endurance or time, it means high quality for me.” One person replied: “Quality means first and foremost the degree of sustainability of the product or service because it results in longer use. Quality also means the degree of excellence of the product or service, the technical characteristics of the product, with very few or no defects, the significant beneficial experiences of the service and the relationship with the manufacturer/ supplier created over time, which gives a greater degree of mutual trust and interest.”

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Question 6: What do you think are the advantages of benefiting only from the result of the product, without taking care of the product itself? This question was addressed to find out the group’s perception about the productas-a-service concept. Most respondents answered that the advantages of benefiting only from the results of a product without caring about the product itself are the increased degree of sustainability, reduced time, elimination of product maintenance and costs, increased level of quality and efficiency. One person replied: “I think the benefits would be the lower cost per use, because I can use the product for a limited time, only as much as I need, without occupying up space around the house and without additional maintenance costs. In essence, I think it’s a more practical look at buying a product.” Another person replied that: “I am a more comfortable person in general, so I think it is great to benefit only from the results of the product without taking care of the product itself, a care less. In addition to my convenience, I think other advantages for me would be the exemption of a few steps in the process of using the product which generates efficiency in terms of time, ease of consumption, meeting some needs regardless of the appearance of the product.” Another answer was: “The benefits are given by the lower cost, the degree of sustainability and long use, the lack of concern for maintenance, increased utility, time savings, ease and speed in obtaining the final result.” Other answers were, “I have no idea,” and “I don’t know.” Question 7: How do you contribute towards improving your lifestyle? Is your perception over quality affected? The aim of this question was to make the interviewees aware of the meaning of self-respect and the quality of the used products or services. Most respondents answered that personal development, self-knowledge, inspiring and healthy daily activities and information on various areas of interest contribute to improving one’s lifestyle. One of the interviewees stated that: “Continuous study and self-knowledge change people’s perceptions and indirectly contribute to improving their lifestyles. Currently, the informational environment is unlimited due to the Internet, which results mental expansion in the masses, which causes people to choose and offer high quality in their daily activities. I believe that most people have almost daily virtual experiences that affect their subconscious and shape their visions and perceptions of everyday life on anything.”

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Another person said: “Personal development increases expectations in general, especially in terms of quality. Once thinking and experiences expand due to information or other cause, they can no longer be limited. Pleople who were impacted being changed forever.” Another answer was: “I believe that spirituality contributes to the improvement of lifestyle, and naturally generates more sustainability and quality in general. The awareness of spiritual people tends to behaviours and actions that take into account self-love, the effects on all beings and the environment. I believe that spirituality is an important factor in sustainability and quality.”

5.3

Limitations and Future Directions of the Research

The Internet and the advances in information technology have transformed international business operations. The Internet not only offers benefits, such as improved cross-border coordination between large, international firms, but also offers significant benefits to small and medium-sized enterprises globally. The sharing economy is one of the most characteristic business ecosystems. The sharing economy and collaborative consumption are new concepts that coordinate the purchase and distribution of goods against taxes or other forms of compensation. Social media facilitates dialogue between individuals or groups of individuals. Companies can use social media to increase demand for their products or services and to increase communication with customers, employees or partners. The limitations of the research are given by the interdisciplinary nature of the topic. The “sharing economy” and the “quality of services” cannot be measured due to the lack of clear indicators that would allow a broader research about them. There are also no indicators linked to “peer-to-peer platforms” to facilitate an in-depth study of the collaborative consumption and the type of consumers who opt for it. Therefore, due to these limitations, further studies are needed to deepen the results of this research about the sharing economy. Regarding the conceptual limits, further studies are needed to define the notions of “product-as-a-service”, “collaborative consumption”, “sharing economy”, “quality of services”, in the digital context, and “sustainability”, in the context of quality. At a practical level, the nature of the variables and the answers in the questionnaire are limited because they were left to the evaluation level of the surveyed group. Future research directions should focus on studies about the perceived quality by the consumers of services from online platforms in the sharing economy, the

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levied degree of transparency of peer-to-peer platforms by their consumers, the emotional and behavioural impact that social media has. It impacts consumers in the sharing economy in terms of purchasing resolution, and consumers’ willingness to concentrate on purchasing sustainable and durable products or services. These studies are important and needed for a better understanding of the sharing economy and its future trends.

Conclusions

In the present research regarding the influence of social media on the quality of services in the sharing economy, all objectives have been achieved, namely, the relationship between the tourism demand, economic growth and information and communication technology was examined. The consumers’ perception of quality was delimited, the degree of transparency and trust of peer-to-peer platforms was interpreted, the consumer behaviour regarding procurement, sustainability and social platforms was analyzed. In the recent years, the demand for available services on the peer-to-peer platforms is growing. The field of tourism was taken into account because statistical data exists in order to perform an analysis. According to the analysis, the number of overnight stays for holiday and business trips in private rented housing of Romanian residents, in the period of 2010–2017, and available on peer-to-peer platforms, has increased. In private accommodation facilities, both the average number of overnight stays related to holiday travel and the average number of overnight stays relevant to business trips have increased. Most of the trips for holidays and business recorded in private dwellings—apartments and rooms, rent type of accommodation of the residents of Romania, were of 4 overnights. The number of non-resident tourists who have remained in private homes—apartments and rooms for rent has grown significantly in the last years. In Romania, in the period of 2010–2017, the total expenses paid by non-resident tourists accommodated in private accommodation structures—apartments and rooms for rent, registered an average annual growth rate of 54,9%. This dynamic was mainly determined by the increase of expenses for accommodation by 63,3%, for transportation by 50,5% and for cultural, sports and leisure activities by 49,5%. Based

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2023 S. Budz, Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy, Sustainable Management, Wertschöpfung und Effizienz, https://doi.org/10.1007/978-3-658-42328-5

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on these values, it can be assumed that the number of Airbnb accommodation units has also increased, and respectively, the use of peer-to-peer platforms. Furthermore, the relationship between the tourism demand, economic growth, and information and communication technology was found to be very important, as the number of overnight stays in private accommodations increased during the same period due to GDP/ capita and online shopping. As a result, technological development and the need for more sustainability is leading to an increase in demand for peer-to-peer platforms such as Airbnb, due to their degree of flexibility and transparency. Examining the answers from the questionnaire, it was found that the frequency of online purchases has increased regardless of gender, age, education, income and professional status. The most frequent online purchases were made by individuals aged between 26–35 years, with higher education, monthly incomes between 2500–7000 RON, having the status of employees (the majority). The number of women who made online purchases was higher than that of men. With the development of the social and economic status, the scale of the Romanian consumer market is constantly expanding. These consumers, mostly young and middle-aged people, have become the main driving force behind online shopping. Compared to men, women have a stronger intention to buy in the cyber context. Other studies have shown that women are more likely than men to engage in compulsive shopping. National culture can be a key element that can affect consumer behaviour in different areas. Regarding the decisions for online purchases following the recommendations of foreigners, the number of respondents who accepted such recommendations is the majority, regardless of gender, age, education, income and professional status. The majority of the answers were from those over the age of 36 years, with higher education, incomes between 2500–7000 RON, and professional status as employees, who most often purchased online following online recommendations. The number of women who resorted to such online transactions was higher than that of men After being exposed to online recommendations, consumers respond based on their own perceptions. Some consumers suggested that other consumers provide more relevant information about products or services compared to suppliers, and thus improve the quality of their decisions. The more relevant and personalized the information about products or services is, based on the experiences of those who recommend them, the more likely it is that other consumers will find them attractive. Respondents who used the services from peer-to-peer platforms, such as Airbnb, Uber, eBay etc. was dominant regardless of gender, age, studies, income

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and professional status. The majority of the responses were from those aged between 25–36 years, with higher education, with incomes between 2500–7000 RON, and professional status as employees who were the most frequent users of these platforms. The number of women using peer-to-peer services was higher than that of men. This may be due to the fact that women are more attracted to online shopping for various reasons and are more likely not to have their own cars, thus choosing Uber. Peer-to-peer platforms have created a new phenomenon, namely consumerto-consumer transactions, which led to alternative products or services different from the traditional ones. The effectiveness of the content generated by users of these platforms, such as online reviews and ratings of suppliers, provides a greater degree of trust to other users or potential users, with a significant influence on consumers’ purchasing decisions and behaviours. It was found that the openness of future purchases from peer-to-peer platforms is majority among respondents regardless of gender, age, education, income and professional status. The majority of responses were from those aged between 26–35 years, with higher education, and a monthly income between 2500–7000 RON, and professional status of employees who are open to future purchases from peer-to-peer platforms, which indicates that they have been satisfied in the past with the products and services consumed from these platforms. This demonstrates how reliable and sustainable peer-to-peer platforms are. The number of women opened to future purchases on these platforms was higher than that of men. The number of people who have not purchased from peer-to-peer platforms so far but are open to, is dominant regardless of gender, age, education, income and professional status. The majority of the answers came from women aged between 26–35 years, with higher education, with incomes between 2500–7000 RON and professional status of employees, being the most open to purchases from peer-to-peer platforms although they have no previous experience with them. Cultural, social and personal factors have different effects on consumer behaviour. First, culture shapes people’s desires, and therefore cultural variables become crucial to understanding consumer behaviour in different cultures. Second, reference groups, such as family, role, and social status, are the most influential triggers that are classified as social factors. Third, consumer behaviour is also generated by personal factors that include age and life cycle stage, occupation and economic circumstances, personality and self-concept, lifestyle and values. Among these factors, the most influential is culture. Given the globalization and the fact that human interaction with global and local communities exists in a new formula, evolving with the advent of digital technology, their purchasing model, product use and experience in general have

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undergone major changes. Taking into account the fact that women in general, especially the younger ones, have a more sensitive personality, it shows that they are the most influenced by the consumerism culture promoted in Romania in the last decade. The number of people who take into account the degree of sustainability of products/ services when purchasing is the majority regardless of gender, age, education, income and professional status. The most responses were among those aged between 26–35 years, and over 36 years, with higher education, with incomes between 2500–7000 RON, and professional status as employees who take into account sustainable products or services in the time of acquisition most often, especially female respondents. Consumer satisfaction refers to their feelings, either of pleasure or dissatisfaction, which result from a comparison between the functions of products or services and consumer expectations. Consumer satisfaction is linked to the quality of the products or services, and quality is linked to the degree of sustainability of products or services. Most respondents consider themselves to be conscious consumers regardless of gender, age, education, income and professional status. The majority of the answers came from those over the age of 36 years, with higher education, with monthly incomes between 2500–7000 RON, and with professional status as employees, who consider themselves to be approximately 75% responsible consumers, which denotes a greater openness of Romanians to quality and sustainable products and services. It is almost impossible in today’s society for consumers to be 100% responsible and aware of the effects of their choices and actions because the current system does not allow it. There were differences in the answers regarding the number of people who consider the degree of sustainability of products/ services when purchasing, and the number of respondents who consider themselves to be conscious consumers. This may be due to the reason that all individuals, when it comes to themselves, tend to have a better or even distorted view, often showing how they want to be, not how they really are. When asked about the degree of responsibility/ awareness of the respondents regarding the effects of their choices on the environment and other beings, most responded that they take these issues into account regardless of gender, age, education, income and professional status. As an overview, it was found that the majority of the answers came from those aged between 26–35 years and over 36 years, with university studies, with monthly incomes between 2500–7000 RON, and professional status as employees who consider the effects of their own choices on the environment and other beings, especially women. In general,

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women have a more sensitive and motherly side, although they can be found at the other extreme. Analyzing the answers of the questionnaire, it was concluded that individuals generally tend towards more compassion and understanding, are aware that everything is part of the whole and behave more and more sustainable. There is also the second category who are indifferent to the effects of their own choices showing selfishness and superficiality. Also, a large number of people who consider themselves responsible are still using products and services that harm or endanger the environment and other beings without being aware. Regardless of gender, age, education, income and professional status, most respondents believe that the world’s population supports a faulty system by buying ineffective, unsustainable or less sustainable products and services. By evaluating the answers, most of the respondents had the age over 36 years, attended higher education, and had monthly incomes between 2500–7000 RON. Their professional status was of employees, and they consider that the world’s population maintains a defective system by purchasing unsustainable and harmful products or services. This indicates that most people are informed and aware of the current system and society. A small percentage of respondents believe that companies should refocus on their own towards more sustainable products and services for the population, even if they are now more profit-oriented. They also believe that these companies should be forced by government institutions. The perception of the best part of the respondents with regards to the reorientation of manufacturers and selling organizations towards more sustainable and durable products and services if the demand for them rises, is positive regardless of age, education, gender, income and/ or professional status. The majority of the answers came from those aged between 26–35 years and over 36 years, with higher education, with monthly incomes between 2500–7000 RON, and professional status as employees who consider that the organizations would reorient to more sustainable products and services. Respondents believe that large companies and corporations are involved in online social responsibility programs to use this as an indicator of growth for their own businesses. Social responsibility can be a tool for companies to build their reputation as well as their profits. The fact that they promote themselves as manufacturers or suppliers of sustainable products or services is not always true, as certain aspects of production or even products and services themselves are far from sustainable. One solution would be the increased demand for more sustainable products and services, so that these companies would be forced to change in order to stay in the market, leaving only those that are truly sustainable. Regarding the frequency of searching for reviews before making online purchases, most respondents often engage in such activities regardless of gender,

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age, education, income and professional status. It was found that the highest percentages of people fell into the categories of those aged between 26–35 years, with higher education, with monthly incomes between 2500–7000 RON, and with professional status as employees who are always looking for reviews before making online purchases. The highest values were in the “always” and “very often” categories, which means an increased desire to be informed about a product or service before purchasing. Also, most of the reviews are written by other consumers, which increases the confidence of those who want to buy. The ability to write reviews provides greater transparency of online platforms, allows users to interact more easily with each other, and provides a positive image of the company that owns the platform. The preferences regarding the informational tools used to obtain information about the desired products/ services were for the websites regardless of gender, age, education, income and professional status. As an overview, it was found that the majority of the answers were for the categories of those aged between 26–35 years, with higher education, with monthly incomes between 2500–7000 RON, and with professional status of employees who opted for websites as the main preference regarding the informational tools used to obtain information about the desired products/ services. Websites can be dedicated exclusively to those products or services, containing a lot of information about them. There may also be comment or review sections that add additional information to the existing content on the site by other users who already have experienced with the products or services desired by interested consumers. Most respondents regardless of gender, age, education, income and professional status responded that most of the information on social media and peer-to-peer platforms concided with reality. It was found that the information on the peer-to-peer platforms coincided more with the reality in terms of data accuracy and the transparency of the platforms, as they provide sections with ratings and reviews of other consumers who have already used the products or services. Also, all negative comments from other consumers appear publicly, which prevents the information from being unrealistic, and the people or suppliers who would be eligible for such actions are immediately removed from the platforms. With regard to social platforms, they too can have a significant degree of transparency if there is no possibility of creating false accounts of suppliers or other parties interested in misleading potential consumers about various products or services. Also, even though most accounts are real, some users may add false or untrue comments about certain products or services just because they are requested by providers or have other benefits. Others may simply comment to converse, never actually using those products or services. Many situations can

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be identified on social platforms, often twisted because anyone can comment, anytime, compared to specialized platforms that promote only certain products or services, only for a few niches. Regarding the degree of familiarity of the respondents with the terms “sharing economy”, “collaborative consumption”, “product-as-a-service”, it was found that most of them know about these concepts. To summarize, it can be noticed that more and more people in Romania are focusing on quality and sustainability and are increasingly open to online purchases and experiences. They have evolved along with technology in terms of consumer perception and behaviour. Most online users are aware of new business models and what they entail, and what their benefits are. They are looking for the best value for money that matches their income and lifestyle. However, consumers or users of online platforms differ in terms of quality assessment, in that, while many prefer top quality to lower quality, consumers differ in their willingness and openness to pay for quality. All respondents appreciate and consider the quality, but differ in the degree of evaluation and perception, thus, in their willingness to give money for quality. Analyzing the answers to the questions in qualitative research, the first question, "What kind of products or services do you usually buy online?", found that most respondents prefer to buy non-food products online, such as clothing, footwear, books, cosmetics electronics, appliances, travel tickets, courses, season tickets etc. because they have a lack of trust if they do not have enough data about the suppliers or if the food is not packed properly. Less than half of those surveyed said that they buy anything online, including food. This question aimed to identify the degree of trust and acquisition process of users of online platforms The answers to the second question “What do you follow on social media platforms? Are there any influencing factors during the use of these platforms?”, were that people follow information about areas of interest, news, socializing, entertainment, music, other people, and that they promote their own business. Regarding the factors that influence the use of online platforms, the answers were that self-esteem and self-confidence are influenced by other people’s posts, and that social platforms are addictive due to the diversity of stimuli that affect behaviour. In most cases, for the third question, "What do you take into consideration in the online environment in order to be sure of the quality of a product or service thet you want to buy?", it was answered that the number of online recommendations and reviews, the number of positive opinions/ comments about the product/

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service, the number of friends/ followers, the brand/ company, and the past experiences with similar products bought from other companies or from the same company. For the fourth question, "What determined you to purchase products or services from Airbnb, Uber, or other similar peer-to-peer platforms?", the most answers were that the value for money is good, followed by the degree of transparency of these platforms and the level of sustainability in general. Also, the degree of flexibility of the platforms, the recommendations of relatives and friends, and openness to everything that is new. This question sought to highlight the benefits of peer-to-peer platforms. The answers for the fifth question, "How do you define the quality of a product or service?" were the degree of innovation and ease of use, the popularity of the product or service, the brand and the price. Interviewees associate quality with product performance and long-term use. They also take into account previous experience, sustainability, popularity and the providers of those products or services. By asking this question, it was wanted to emphasize that people have different perceptions of quality. The sixth question concerned the perception regarding the concept of the product-as-a-service, which was "What do you think are the advantages of benefiting only from the result of the product, without taking care of the product itself?" Most respondents answered that the benefits are increased sustainability, reduced time, elimination of product maintenance and costs, increased level of quality and efficiency, lower pay per use cost, convenience, use only for a limited time and ease of consumption. The answers to the last question, the seventh, “How do you contribute to improving your own lifestyle? Is your perception over affected?”, were personal development, self-knowledge, inspiring and healthy daily activities, and information about various areas of interest. Also, spirituality, because the degree of awareness of spiritual people direct to behaviours and actions that take into account self-love, the effects on all beings and the environment. Spirituality is an important factor in sustainability and quality. The aim of this question was to make the interviewees aware of the meaning of self-respect and the quality of the used products or services. The purpose of this qualitative study was to clarify and supplement the quantitative study and to provide additional information to understand consumer perceptions. According to the answers of the questions, it can be seen that most respondents are open to online shopping, and social platforms, even letting themselves being influenced by them, which means that service providers can also shape their behaviour.

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It’s about the acquisitions. Before making online purchases, most people look for reviews and recommendations from other known or unknown consumers to be sure of the quality of a product or service. They also replied that they chose to purchase from peer-to-peer platforms due to the good value for money, followed by the degree of transparency of these platforms and the level of sustainability. Most have defined the quality of a product or service as the level of compliance of the product/ service with their own requirements and all the characteristics, and believe that the advantages of the "product-as-a-service" are increased sustainability, reduced time, elimination of maintenance costs. They improve their lifestyle through personal development, self-knowledge, inspiring and healthy daily activities, information about various areas of interest, and spirituality. Over the last decade, there has been a strong change in online behaviour due to the appearance of new social media channels, including social networks, discussion forums, podcasts and more. This has had a significant effect on marketing and advertising. Specifically, in consumer markets, these new social channels have continued to raise additional revenue from advertising. Social media networks have become the main communication platforms through which companies engage in discussions with consumers, allowing new forms of participation, interactivity and even co-creation. The most popular social networking platforms are blogs. Blogs appeal to audiences and provide opportunities for companies to create new markets for their products. The psychology of online participation indicates that online activity is determined by individual differences, social group processes, and technological settings. Individual differences include the need for satisfaction and self-esteem, as well as personality traits and real time availability for online participation. The technological framework consists of technical design, which allows or discourages participation, along with the sense of confidentiality and security felt by online users. The most complex factors that shape participation are social group processes, and recent research has shown that the type of online environment and how others respond to online participation either encourages or discourages the actions of individuals. Other social factors include the degree of socialization of the individual and several situation-specific factors, such as other people’s responses, how others react to passive activities, becoming active, and the quality of responses. The Internet has made the exchange of resources easier and more satisfying, generating better competitiveness and fewer errors. The Internet has also created better data management, more automation and distribution concepts, as components of efficiency that have a positive influence on the potential of digital

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business models. Digital business models lead to easier decision-making processes in companies. Digital business models and processes open up new ways of cooperating in companies. Predominant business models consist of companies that produce goods or services that consumers purchase. Recently, this traditional way of doing business has been complemented by non-traditional business models that no longer focus on ownership but on the use of products. Business models in the sharing economy are usually constructed on an online platform to match the demand with the supply. The expansion in use of the internet and its wide possibilities enables access to online platforms in an easy and cheap manner. Regardless of the design of these non-traditional businesses, firms that activate in the sharing economy usually provide these platforms. These, in turn, attract demand, often on a very large scale, because they are accessible worldwide. Although the distributed good or service could be regional or local, rather than internationally accessible, a platform can satisfy several regional or even local markets. An example is the car sharing service. Cars and drivers, as well as the demand for services are local, as the platform matches local demand with supply in many different markets. Consequently, the scale of the operation is large. The key players in the sharing economy are consumers who continually co-create value with companies and other consumers. Co-creation of value refers to a process in which different parties produce together appreciated results. Unlike traditional online contexts, both companies and consumers can function as buyers and sellers through peer-to-peer platforms. Consumers share or rent goods instead of buying them. However, this is not a new phenomenon, as people have been borrowing books from libraries for hundreds of years, neighbours have helped each other informally for a longer period of time, and so on. There are countless examples of these types of activities that have been going on for a long time. However, the expansion of the Internet and the successive opportunities for entrepreneurship have given birth to a large number of new businesses and non-traditional business models including the so-called "sharing economy". For consumers, companies, suppliers and authorities etc., the activities of the sharing economy are, in many cases, still new, tangled and sometimes difficult to understand. Trust is the key to collaborative consumption, and can only be based on the fact that an individual supplier is not a business in the traditional sense of the term. Consumers are producers at the same time. However, suppliers in the sharing economy are working hard to gain their trust, as it is a necessary condition for doing business in this environment. The information generated by service providers is supposed to be credible and less idiosyncratic, meaning more

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objective and accurate. On the other hand, consumer-generated information is personally based on "more specific and personal knowledge", but often lacks basic details about origin and identity. Taking this into account, the level of confidence may differ depending on the perceptions and openness of each consumer. The sharing economy has rised and became well-known in response to the search for a more sustainable, durable and comprehensive business model that enabled for the management of individual resources in manners that circumvented traditional institutions. Technology is the primary driver of the sharing economy because it eases economic activities and makes them cheaper by minimizing transaction costs. They occur when customers and suppliers look for each other, discuss and negotiate the terms of the transaction and check whether the good or service keeps its promise. Prior to the birth of the sharing economy, transaction costs were quite high, thus, costly interaction between customers and suppliers often required a transaction. Many of these interactions did not take place at all because they were simply too expensive to be possible. The Internet, smart devices, smartphones and other new technologies overcame these problems, especially the costs of searching and information are often dramatically reduced compared to direct interaction. Consequently, the expansion of this model has been closely linked to the development of smart cities, where the sharing economy has a key role to play in efficient resource management, in optimizing productivity and in exploiting the local economy. In terms of supply, the sharing economy is likely to take a step towards circular business models, this action being carried out with caution, without being idealized. A positive attitude towards continuous improvement leads to the high quality level of consumer services. The level of involvement of service providers is considered a key factor for the continuous improvement of services, for innovation, and progress in achieving the objectives of service providers. The birth of the sharing economy occur simultaneously with the global financial crisis of 2008–2009, following a fast paced development so far. This resulted that the loss and lack of confidence in traditional firms during the financial crisis has been a significant factor in the feasibility of most business models that activate in the sphere of the sharing economy. Given the situation with COVID-19, which is taking place at the international level, it can be said that it is important for society to transform at all levels, becoming more sustainable. Just as in the years of 2008–2009, many people have had to adapt to the events, reorienting themselves from a professional point of view, now it is imperative to

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move to another level from a technological and professional point of view globally, therefore giving rise to new business models based on collaboration, ethics, sustainability, and leading to the reduction of entry barriers. In conclusion, the interconnections between social media, service providers, consumers, quality and collaborative consumption are very important for this informational and noteworthy era. Moreover, the relationship between the demand for peer-to-peer platforms, economic growth and information and communication technology are closely linked, one cannot work without the other. Following the present research, it was found that social media has an impact on the quality of services due to the degree of transparency and dynamic interactions in the online environment. The sharing economy platforms even facilitate these issues more than other platforms by making various mutual valuation tools available to benefit all parties involved in transactions.

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© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2023 S. Budz, Research Regarding the Influence of Social Media on the Quality of Services in the Sharing Economy, Sustainable Management, Wertschöpfung und Effizienz, https://doi.org/10.1007/978-3-658-42328-5

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